China Merchants Bank Co., Ltd. Class A · SSE:600036
China Merchants Bank Co., Ltd. Class A — H1 2018 Earnings Presentation
25 slides from China Merchants Bank Co., Ltd. Class A's earnings presentation, Aug 1, 2018
Slide 1: China Merchants Bank Co., Ltd. 2018 Interim Results Announcement
China Merchants Bank Co., Ltd. 2018 Interim Results Announcement
Slide 2: Forward-Looking Statement Disclaimer
Forward-Looking Statement Disclaimer This presentation and subsequent discussions may contain 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, proje
Slide 3: Overview, Operational Information, Outlook and Strategies
1 Overview 2 Operational Information 3 Outlook and Strategies 2
Slide 4: Quality, profitability and scale maintained balanced development
Quality, profitability and scale maintained balanced development Net profit attributable to shareholders of the Bank 14.00% 11.43% 44,756 （RMB million） 39,259 1H 2017 1H 2018 Net profit attributable to shareholders of the Bank YoY growth NPL balance and ratio Total assets Growth: 3.81% 61,121 60,459
Slide 5: Operating quality further improved
Operating quality further improved % of demand deposits % of retail deposits 62.84% 61.48% 50.08% 48.24% 2017 1H 2018 2017 1H 2018 Coverage ratio of NPLs Loan provision ratio Capital adequacy ratio (advanced approach) Up by 53.97 ppts 15.48% Up by 0.29 ppt 15.08% 316.08% 12.06% 11.61% 262.11% 4.22%
Slide 6: Core profitability continued to improve
Core profitability continued to improve Net interest margin Net non-interest income and net operating income Up by 11 bps Growth: 11.56% 126,103 2.54% Growth: 16.51% 113,032 2.43% （RMB million） 42,136 49,091 2017 1H 2018 Net non-interest income Net operating income 1H 2017 1H 2018 ROAA & ROAE 1.39%
Slide 7: Business scales grew steadily
Business scales grew steadily Daily average balance of interest-earning assets Total loans and advances Growth: 2.61% Growth: 8.77% 3,877.87 6,122.08 3,565.04 5,966.60 （RMB billion） （RMB billion） 2017 1H 2018 2017 1H 2018 Daily average balance of interest-bearing liabilities Total deposits from cust
Slide 8: Operational Information
1 Overview 2 Operational Information 3 Outlook and Strategies 7
Slide 9: Excellent business performance; Improving asset quality; Digital Bank transformation
Excellent business performance Improving asset quality Prompting Digital Bank transformation 8
Slide 10: Enhanced customer experience boosted customer stickiness
Enhanced customer experience boosted customer stickiness Unifying scenario, connecting services, and optimizing the end-to-end retail customer journey No. of retail customers No. of Sunflower-level No. of private banking customers AUM balance from retail customers and above customers Growth: 7.60% G
Slide 11: Retail loan structure further optimized
Retail loan structure further optimized Balance and % of retail loans 1,764.30 1,849.16 1,682.37 1,520.71 1,334.88 1,209.52 （RMB billion） 46.71% 47.83% 50.45% 51.43% 53.36% 51.40% 2015 1H 2016 2016 1H 2017 2017 1H 2018 Retail loan balance % of retail loans to total loans and advances Balance of resi
Slide 12: Strengthened advantage of retail business
Strengthened advantage of retail business Net operating income and % Net non-interest income and % of retail business of retail business 51.88% 55.03% 51.40% 53.11% 61,646 24,091 54,750 19,965 （RMB million） （RMB million） 1H 2017 1H 2018 1H 2017 1H 2018 Retail net operating income % of retail net ope
Slide 13: Increasing corporate customer base and deposits
Increasing corporate customer base and deposits No. of corporate customers No. of small enterprise No. of registered customers No. of cash management customers under "Qian Ying Zhan Yi" customers Growth: 9.20% Growth: 10.46% Growth: 1.45% Growth: 11.33% 1,718.0 1,606.9 1,573.3 1,454.7 22.0 22.3 1,55
Slide 14: Corporate loan structure adjusted continuously
Corporate loan structure adjusted continuously Loan mix by industry 7.47% 7.38% 6.17% 6.65% 6.73% 4.80% 1.22% 1.18% Manufacturing Wholesale Real estate Mining and retail 2017 1H 2018 Reducing exposure General loan balance of strategic Exposure weighted average probability of default for to industrie
Slide 15: Development of distinctive businesses driven by enhanced expertise
Development of distinctive businesses driven by enhanced expertise Value of lead bonds CMB International Cpital's market share Balance of WMPs Balance of assets underwriting in Hong Kong IPO underwriting (excl. structured deposits) under custody Growth: 41.89% Up by 1.45 ppts Down by 4.00% #2 in ind
Slide 16: Asset quality kept improving
Asset quality kept improving Ratio of NPLs to loans New NPL balance & NPL formation ratio overdue for more than 90 days 1.06% 0.92% 1.26 1.24 16,613 15,917 （RMB million） 2017 1H 2018 1H 2017 1H 2018 New NPL balance NPL formation ratio Retail and corporate NPL ratio, key indicators of asset quality &
Slide 17: Further enhancement of Fintech infrastructure
Further enhancement of Fintech infrastructure Cloud service Big data 36.80% Total No. of X86 servers installed up by 32.4 bn messages daily processed by big data platform % of cloud-based applications reached 26.38% API opening IT agility Opened 3 types of API 3,550 No. of new versions of applicatio
Slide 18: Retail banking operational model changed from card-based to APP-based
Retail banking operational model changed from card-based to APP-based MAU of CMB APP MAU of CMB Life APP Growth: 25.72% Growth: 11.48% MAU of APP (removing 32.92 30.46 duplication) 27.33 26.19 （million） （million） 53.82 mn 2017 1H 2018 2017 1H 2018 % of online customer acquisition for Sales value and
Slide 19: Intelligence-oriented upgrade of retail services
Intelligence-oriented upgrade of retail services Smart sales – smart marketing platform 1,500+ user portraits 2.6x increase of customer reach 14.38% successful marketing rate Smart customer service – customer service robot 70.70% of total customer service 99% customer satisfaction rate Smart risk co
Slide 20: Transform to Internet-based wholesale finance customer service
Transform to Internet-based wholesale finance customer service No. of corporate mobile No. of online corporate No. of upstream and downstream Financial institution customers banking customers banking customers customers in supply chain finance of "Zhao Ying Tong" Growth: 44.42% Growth: 11.28% Up by
Slide 21: Outlook and Strategies
1 Overview 2 Operational Information 3 Outlook and Strategies 20
Slide 22: Challenges
Challenges International: After two years of cyclical recovery of global economy, the pace of different countries started to differentiate – the gap of growth rate between US, Europe and Japan widened while the imbalance among emerging markets and developing countries has been growing. Some countri
Slide 23: Opportunities
Opportunities This year marks the 40th anniversary of China's reform and opening-up. Following a series of new measures taken in 1H2018, China will further reform and open to the world, generating more opportunities for the sustainable growth of China's economy. To prevent and resolve financial sy
Slide 24: Business strategy
Business strategy Confronted with the new challenges and opportunities, we will focus on the strategy of building "the best commercial bank in China with innovation-driven development, leading retail banking and distinguished features", adhere to the concept of maintaining a dynamic balance among “q
Slide 25: Q&A
Q&A