China Minsheng Banking Corp., Ltd. Class A · SSE:600016
China Minsheng Banking Corp., Ltd. Class A — H1 2013 Earnings Presentation
23 slides from China Minsheng Banking Corp., Ltd. Class A's earnings presentation, August 2013
Slide 1: China Minsheng Banking Corp., Ltd. 2013 Interim Results Announcement
China Minsheng Banking Corp., Ltd. 2013 Interim Results Announcement August 2013
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements that involve risks and uncertainties. These statements are generally indicated by the use of forward-looking terminology such as believe, expect, anticipate, estimate, plan, project, target, may, will or other similar words that expres
Slide 3: Agenda
Agenda 1 Business overview 2 Financial performance 3 Outlook 2
Slide 4: Business overview
Business overview In 1H2013, our business continued to achieve significant breakthroughs with continuously strengthening profitability Strategic 1 Further enhanced profitability and steady returns to shareholders positioning A bank for non-state The Group achieved net profit attributable to equity
Slide 5: Business overview
Business overview Profitability continued to improve, and cost-to-income ratio continued to decrease Net profit attributable to equity shareholders of Basic EPS /Diluted EPS the Bank (RMB million) (RMB/share) 25,000 22,945 1.0 19,053 20,000 0.81 0.78 0.8 15,000 0.69 0.69 10,000 0.6 5,000 0 0.4 1H201
Slide 6: Overview of major financial indicators
Overview of major financial indicators Key data from statement of Key data from statement of profit or loss financial position 30 Jun 31 Dec (RMB million, except EPS) 1H2013 1H2012 Growth (%) (RMB million) 2013 2012 Growth (%) Operating income 58,492 51,369 13.87 Total assets 3,410,093 3,212,001
Slide 7: Corporate banking — further enhanced NSOE Customer Base
Corporate banking — further enhanced NSOE Customer Base Targeting to become a distinctive and efficient bank, Minsheng focused on the implementation of NSOE strategies and promotion of the Financial Stewardship services, adopted intensive management under capital restraint, and continued to promote
Slide 8: Corporate banking — specialized SBU operations continued to strengthen
Corporate banking — specialized SBU operations continued to strengthen SBUs enhanced risk prevention, explored business opportunities in emerging markets, promoted the application of the Financial Stewardship service model and implemented NSOE strategies. All lines of business at SBUs achieved posit
Slide 9: Corporate banking — rapid growth of net non-interest income businesses
Corporate banking — rapid growth of net non-interest income businesses 2012 Best VC/PE Custodian Bank 2012 Best Custodian Services Bank 2012 Top 5 VC/PE Custodian Bank ——21st Century Business Herald —— Financial Money ——Zero2IPO Commercial bank investment banking operation Assets in custody (includi
Slide 10: Retail banking — focused on MSE finance to drive rapid growth of traditional finance
Retail banking — focused on MSE finance to drive rapid growth of traditional finance business In 1H2013, the Group accelerated the process restructuring of MSE business and promoted the new MSE business mode of centralized sales and marketing in all branches, achieving accelerated development in the
Slide 11: Retail banking — traditional finance business achieved significant growth
Retail banking — traditional finance business achieved significant growth Driven by SME finance business, balance of savings deposit as percentage of total deposits increased and became an important low-cost source of funding; retail customer base further solidified while customer mix further improv
Slide 12: Private banking — continue to establish a world-class full-service private bank
Private banking — continue to establish a world-class full-service private bank Top Ten Financial Product Best Private Bank with Best Private Banking Private Bank with Innovation Award Integrated Services Service Award Highest Brand Value —— The Banker —— 21st Century Business Herald —— The Asian Ba
Slide 13: Agenda
Agenda 1 Business overview 2 Financial performance 3 Outlook 12
Slide 14: Overview of key indicators
Overview of key indicators Key statement of profit or loss items (RMB million) 1H2012 1H2013 Growth (%) Net interest income 37,871 40,564 7.11 Net non-interest income 13,498 17,928 32.82 Of which: net fee and commission income 10,030 16,222 61.73 Operating income 51,369 58,492 13.87 Operating expens
Slide 15: Overview of key indicators
Overview of key indicators Key profitability indicators (%) 1H2012 1H2013 Change (ppts / RMB) 1 Cost-to-income ratio 30.61 28.57 (2.04) Basic earnings per share (RMB) 0.69 0.81 0.12 Return on average equity 13.64 13.18 (0.46) Key asset quality indicators (%) 31 Dec 2012 30 Jun 2013 Change (ppts) Imp
Slide 16: Continuously rising profitability
Continuously rising profitability Net profit attributable to equity shareholders of Return on equity attributable to equity the Bank shareholders of the Bank (annualized) (RMB million) 35.00% 30,000 25,000 22,945 19,053 30.00% 20,000 15,000 26.36% 25.67% 10,000 25.00% 5,000 0 1H2012 1H2013 20.00% Ba
Slide 17: Significantly higher proportion of net non-interest income and further improved income structure
Significantly higher proportion of net non-interest income and further improved income structure Growth of net non-interest income and as % of Growth of net fee and commission income and as operating income % of operating income (RMB million) (RMB million) As % of As % of operating operating 26.28%
Slide 18: Personal deposits maintain stable growth in scale and contribution to total deposits
Personal deposits maintain stable growth in scale and contribution to total deposits Deposit mix Rising personal deposits as percentage of total (RMB million) deposits 2,500,000 30% 2,174,975 5,098 1,926,194 2,000,000 22.66% 3,858 492,945 20.44% 393,774 20% 1,500,000 1,000,000 1,676,932 10% 1,528,56
Slide 19: Operating efficiency steadily improved with further lowered cost-to-income ratio
Operating efficiency steadily improved with further lowered cost-to-income ratio Operating income achieves steady growth Cost-to-income ratio1 (RMB million) 80,000 58,492 60,000 51,369 40,000 40% 20,000 0 30.61% 1H2012 1H2013 30% 28.57% Operating expenses as % of operating income (RMB million) 20% 5
Slide 20: Asset quality remains stable with enhanced risk management capability
Asset quality remains stable with enhanced risk management capability Impaired loans and impaired loan ratio Allowance to impaired loan ratio and allowance to total loan ratio (RMB million) 0.78% 2.49% 14,000 0.76% 0.8% 400% 2.39% 2.5% 12,000 11,554 350% 314.53% 320.41% 10,523 2.0% 0.6% 300% 10,000
Slide 21: Agenda
Agenda 1 Business overview 2 Financial performance 3 Outlook 20
Slide 22: 2H2013 Outlook
2H2013 Outlook In 2H2013, the Company will fully implement the Second Five-Year Development Outline of the Board by restructuring, planning for transformation, strengthening management and achieving upgrades, targeting at MSEs, freeing up two wings, further promoting the SBU reform and improving the
Slide 23: Q&A
Q&A 22
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