23 slides from China Minsheng Banking Corp., Ltd. Class A's earnings presentation, August 2011
Slide 1: China Minsheng Banking Corp., Ltd. 2011 Interim Results Announcement
Strictly Confidential China Minsheng Banking Corp., Ltd. 2011 Interim Results Announcement IFRS August 2011
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 Review 2 Financial performance 3 Outlook 2
Slide 4: Business overview
Business overview Steadily developed strategic businesses and progressed with structural adjustments, resulting in satisfactory operating results Operating objectives Ongoing optimization of income structure, significant 1 improvement in operating efficiency and continuing rise “Distinctive" bank in
Slide 5: Overview of key financials
Overview of key financials Key data from income statement Growth Key data from statement of 31 Dec 30 Jun Growth (RMB million, except per share data) 1H 2010 1H 2011 rate (%) financial position (RMB million) 2010 2011 rate (%) Operating income 26,081 38,801 48.77 Total assets 1,823,737 2,161,005
Slide 6: Corporate banking - target on non-state-owned enterprises and promote Financial Butler service mode
Corporate banking - target on non-state-owned enterprises and promote “Financial Butler” service mode, resulting in initial success from strategic transformation Continued to proactively optimize the business structure, customer structure and income structure, in light of a changing operating enviro
Slide 7: Steady growth in all SBU operations
Steady growth in all SBU operations All SBUs proactively navigated the complex and evolving operating environment by taking the initiative to implement structural adjustments, strengthen risk prevention mechanisms, explore emerging business opportunities and implement the “Financial Butler” service
Slide 8: Corporate banking – specialty business
Corporate banking – specialty business Trade Finance Top Business 2011 Best Bank of Trade Finance Innovation in China – Financial Times, UK ranked Net non-interest income from trade finance Volume of international dual factoring service (RMB million) (USD million) .0% th =75 1,785 1,800 G r ow 5,096
Slide 9: Retail banking – rapidly expanding scale with structural optimization
Retail banking – rapidly expanding scale with structural optimization Retail deposits Retail loans (ex. credit cards) (RMB million) (RMB million) =20.4% Growth h =15.8 % 277,115 Growt 300,000 400,000 230,251 302,639 300,000 261,453 200,000 200,000 100,000 100,000 0 0 31 Dec 2010 30 Jun 2011 31 Dec 2
Slide 10: Fully upgraded small and micro financial services and fast growing Shang Dai Tong
Fully upgraded small and micro financial services and fast growing “Shang Dai Tong” In 1H 2011, the Bank introduced version 2.0 of small and micro financial services. Small and micro financial services profitability continued to improve as the average interest rate of new loans increased by 1.7 pts
Slide 11: High-end customer base continued to grow and deliver increasing revenue contribution
High-end customer base continued to grow and deliver increasing revenue contribution Continued strategic focus on high-end customers and achieved a significant increase in the number of high net worth clients Number of private banking customers Private banking business AUM (customers) =24.7% (RMB bi
Slide 12: Treasury business – continued pursuit of greater size and strength
Treasury business – continued pursuit of greater size and strength Investments Underwriting of debt financing instruments (RMB million) (RMB million) 250,000 220,216 10.30% 30,000 26,113 200,000 181,419 10.20% 10.19% 150,000 10.10% 20,000 16,040 16,263 Including 100,000 10.00% 9,850 8,440 10,000 7,4
Slide 13: Agenda
Agenda 1 Business Review 2 Financial performance 3 Outlook 12
Slide 14: Income statement highlights
Income statement highlights (RMB million, except per share data) 1H 2010 1H 2011 Growth rate(%) Net interest income 21,165 29,545 39.59 Net non-interest income 4,916 9,256 88.28 Inc.: Net fee and commission income 4,509 7,919 75.63 Operating income 26,081 38,801 48.77 Operating expense 11,587 15,659
Slide 15: Statement of financial position highlights
Statement of financial position highlights (RMB million) 31 Dec 2010 30 Jun 2011 Growth rate (%) Gross loans and advances 1,057,571 1,142,274 8.01 Investment securities 181,419 220,216 21.39 Total assets 1,823,737 2,161,005 18.49 Customer deposits 1,416,939 1,536,586 8.44 Debt securities in issue 21
Slide 16: Profitability
Profitability ROAE1 PPOP/Average total equity1 .10 pts Up by 6 30% 1 .30 pts 25.38% 50% Up by 1 41.47% 19.28% 40% 20% 30.17% 30% 20% 10% 10% 0% 0% 1H 2010 1H 2011 1H 2010 1H 2011 Source: Interim reports Source: Interim reports ROAA1 PPOP/Average total assets1 ps Up by 24 b 6 bps 3% Up by 4 1.41% 2.2
Slide 17: Net interest income
Net interest income Significant year-on-year increase in net interest margin (NIM) for 1H 2011 Net interest income Net interest margin (RMB million) 9.6% th=3 ps 35,000 G row 4.00% Up by 8 b 29,545 28,000 3.00% 21,165 2.92% 3.00% 21,000 14,000 2.00% 7,000 0 1.00% 1H 2010 1H 2011 1H 2010 1H 2011 Sour
Slide 18: Non-interest income
Non-interest income Significant growth in net fee and commission income with higher contribution and further improved revenue composition Growth in net fee and commission income Net fee and commission income composition (RMB million) 10,000 100% .6% 4.5% 4.5% th =75 7,919 3.5% 3.1% 8,000 G row 6.2%
Slide 19: Operating efficiency
Operating efficiency Effectively controlled costs, further improved cost-to-income ratio, and continued to increase contribution per outlet /employee Operating expenses Cost-to-income ratio (ex. business tax)1 (RMB million) Down b y 5.75 20,000 =35.1% 50% pt s Growth 15,659 39.83% 15,000 40% 11,587
Slide 20: Scale and mix of deposits and loans
Scale and mix of deposits and loans Deposits Loans (RMB million) (RMB million) 8.4% =8.0% Gr owth= Growth 1,600,000 1,536,586 1,200,000 1,142,274 1,416,939 1,057,571 1,400,000 1,000,000 1,200,000 800,000 1,000,000 600,000 31 Dec 2010 30 Jun 2011 31 Dec 2010 30 Jun 2011 Source: Interim and annual rep
Slide 21: Asset Quality
Asset Quality Continued to optimize risk control system, perfect risk management policies and strengthen post-loan management; NPL ratio declined along with further improvement in NPL coverage, demonstrating prudent operations NPL loan balance and ratio Special-mentioned loan ratio (RMB million) Dow
Slide 22: Agenda
Agenda 1 Business Review 2 Financial performance 3 Outlook 21
Slide 23: Outlook for 2H2011
Outlook for 2H2011 Capitalize on market opportunities to achieve stable growth and structural improvement in business, and to attain full-year business targets In 2H 2011, the Bank will accelerate reform and innovation, exert more efforts to transform and upgrade the Bank and promote scientific deve