China Merchants Bank Co., Ltd. Class A · SSE:600036
China Merchants Bank Co., Ltd. Class A — H1 2017 Earnings Presentation
31 slides from China Merchants Bank Co., Ltd. Class A's earnings presentation, August 2017
Slide 1: 2017 Interim Results Announcement
China Merchants Bank Co., Ltd. 2017 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: Agenda
Agenda 1 Overview 2 Operational Information 3 Outlook and Strategies
Slide 4: Profitability, asset quality and scale maintained
Profitability, asset quality and scale maintained balanced development and led to satisfactory growth Net profit attributable to shareholders Profitability ratios of the Bank 1.29% 1.28% 39,259 19.11% 35,231 (RMB million) 19.07% 1H 2016 1H 2017 1H 2016 1H 2017 ROAE ROAA NPL ratio Total assets 6,199,
Slide 5: Asset and liability structure improved
Asset and liability structure improved Loans and advances and Interbank assets and Total deposits and % % in total assets % in total assets in total liabilities 4.69% 57.10% 3.5% 54.89% 3.37% 71.69% 68.64% 2.69% 3,539,938 1.73% (RMB million) (RMB million) (RMB million) 3,261,681 0.99% 278,699 4,142,
Slide 6: Asset quality improved significantly
Asset quality improved significantly Incremental NPL NPL formation ratio Ratio of NPLs to loans overdue for more than 90 days 30,677 2.24% 1.28 1.25 (RMB million) 16,613 1.06% 1H 2016 1H 2017 2016 1H 2017 2016 1H 2017 NPL Allowance coverage ratio Allowance-to-loan ratio Impairment losses on assets 2
Slide 7: Strategic transformation achieved remarkable effects I
Strategic transformation achieved remarkable effects I "Light" capital Capital adequacy ratio Capital adequacy ratio under the advanced approach under the weighted approach 14.36% 11.59% 11.37% 12.99% 12.08% 11.11% 9.63% 9.45% 2016 1H 2017 2016 1H 2017 资本充足率 Capital adequacy ratio Capital adequacy r
Slide 8: Strategic transformation achieved remarkable effects II
Strategic transformation achieved remarkable effects II "Light" liabilities Demand deposits and Balance of high-cost % in total deposits negotiated deposits (RMB trillion) 64% 63.59% (RMB million) 48,400 2.51 2.33 21,960 2016 1H 2017 2016 1H 2017 Demand deposits Demand deposits to total deposits "Li
Slide 9: Strategic transformation achieved remarkable effects III
Strategic transformation achieved remarkable effects III "Light" operations Transaction No. of CMB APP Transaction amount of CMB APP (RMB trillion) 8.13 452 (million) 332 5.29 1H 2016 1H 2017 1H 2016 1H 2017 No. of corporate online Transaction amount Cost-to-income ratio banking transactions of corp
Slide 10: Growing brand recognition
Growing brand recognition China Banking Association Fortune Institutional Investor Ranked first in overall development strength among commercial banks in Ranked 216th among Fortune Global 500 in 2017 Sector of Asian banks: China from the "Gyroscope" evaluation in 2016 Ranked 30th among Fortune China
Slide 11: Agenda
Agenda 1 Overview 2 Operational Information 3 Outlook and Strategies
Slide 12: Determined to promote strategic transformation and differentiated development model
Determined to promote strategic transformation and pushed forward a differentiated development model Continued leadership in retail finance Improving wholesale finance Turnaround in asset quality Deepening reform and transformation 11
Slide 13: Continued leadership in retail finance
Continued leadership in retail finance Competitive advantages of retail finance continued to strengthen % of retail demand Average cost deposits in retail deposits of retail deposits 0.96% 78.5% 0.79% 76.39% 2016 1H 2017 1H 2016 1H 2017 Net non-interest income % of net operating income of retail fin
Slide 14: Retail customer base of value expanded steadily
Retail customer base of value expanded steadily No. of retail customers No. of private banking customers 97,330 64.0 (Thousand) (Thousand) 59.6 91,060 2016 1H 2017 2016 1H 2017 No. of sunflower-level and above customers No. of active credit card users 41,110 (Thousand) (Thousand) 2,048.0 1,907.2 37,
Slide 15: Retail customer's loyalty improved
Retail customer’s loyalty improved Balance of deposits from AUM balance retail customers from retail customers 5.90 (RMB trillion) (RMB trillion) 1.27 5.53 1.19 2016 1H 2017 2016 1H 2017 AUM balance AUM balance from sunflower-level and from private banking customers above customers 1.79 4.82 (RMB tr
Slide 16: Retail loan structure became safer
Retail loan structure became safer Total retail loans % of retail loans in total loans Retail loan structure and advances 7.22% 7.74% 18.52% 17.60% 1.68 51.43% (RMB trillion) 50.45% 26.89% 27.11% 1.52 47.37% 47.55% 2016 1H 2017 2016 1H 2017 2016 1H 2017 Residential mortgage Credit cards Micro-financ
Slide 17: Wealth management business showed widened lead
Wealth management business showed widened lead Sales of personal % of sales of personal wealth management products wealth management products in sales of all wealth management products (RMB billion) 52.15% 3,956.0 3,896.4 51% 1H 2016 1H 2017 1H 2016 1H 2017 Sales of agency distribution Sales of agen
Slide 18: Credit card business maintained rapid growth
Credit card business maintained rapid growth Cumulative No. of credit card issued Credit card transaction 88.12 1.29 (RMB trillion) (Million) 80.31 1.05 2016 1H 2017 1H 2016 1H 2017 Balance of credit card loans Interest income from credit cards Non-interest income from credit cards 456,086 6,775 (RM
Slide 19: Improving wholesale finance
Improving wholesale finance Wholesale finance customer base was more focused No. of corporate No. of strategic customers Small enterprise customers and customers depositors under the Head Office under "Qian Ying Zhan Yi" 166 1,332.8 1,427.4 1,206.5 135 (Thousand) (Thousand) (Unit) 20.2 20.9 1,295.1
Slide 20: Corporate loan structure optimized increasingly
Corporate loan structure optimized increasingly Total corporate loans Loan structure by size of domestic enterprise borrowers 11.27% 11.90% 1.44 14.19% 12.85% 1.34 (RMB trillion) 74.54% 75.25% 2016 1H 2017 2016 1H 2017 Large-sized enterprise Medium-sized enterprise Small enterprise % of balance of l
Slide 21: Transaction banking achieved fast growth
Transaction banking achieved fast growth No. of customers using cash No. of corporate online Balance of supply chain management service banking customers finance 120,795 1,236.2 1,220.5 96,861 (Thousand) (Thousand) (RMB million) 1,110.2 1,095.7 2016 1H 2017 2016 1H 2017 2016 1H 2017 Investment banki
Slide 22: Asset management business developed in accordance with regulatory demand
Asset management business developed in accordance with regulatory demand Balance of wealth Balance of net-worth % of net-worth products to Leverage ratio of entrusted management business products balance of wealth management bond investment business 2.38 75.72% 124.87% 1.61 119.42% 1.58 (RMB trillio
Slide 23: Asset custody business achieved steady growth
Asset custody business achieved steady growth Balance of assets under custody No. of asset custody projects 17 10.63 (RMB trillion) (Thousand) 10.17 15.2 2016 1H 2017 2016 1H 2017 Discounted bill business continued to lead in the market Volume of directly discounted bills, discounted bills transferr
Slide 24: Turnaround in asset quality
Turnaround in asset quality NPL ratio Retail NPL ratio Corporate NPL ratio Credit card NPL ratio 1.87% 1.01% 3.3% 1.4% 3.05% 1.26% 1.71% 0.88% 2016 1H 2017 2016 1H 2017 2016 1H 2017 2016 1H 2017 Special-mention loan ratio Overdue loan ratio Credit cost Disposal of NPLs 66 2,730 2.09% 2.14% 2.27% 1,2
Slide 25: Deepening reform and transformation
Deepening reform and transformation Develop FinTech as a powerful engine for the later-stage transformation and build CMB into a FinTech bank Accelerate FinTech development with increased use of the Internet, big data and smart technologies through encouraging FinTech innovation, actively enhancing
Slide 26: Promoted the "mobile priority" strategy
Promoted the "mobile priority" strategy and achieved satisfactory results Aggregate placement amount No. of mobile check Volume of effective mobile of Machine Gene Investment transactions check transactions 6,745.9 4,500 332,464 (RMB million) (Thousand) (RMB million) 1,240.2 70,216 1H 2017 1H 2016 1
Slide 27: Agenda
Agenda 1 Overview 2 Operational Information 3 Outlook and Strategies
Slide 28: Challenges
Challenges International Domestic Despite positive momentum, uncertainties remain in Despite better-than-expected growth in 1H2017, the global economy due to lack of drivers of recovery China’s economy is still in a critical period of structural and deep-seated issues that remain unresolved. adj
Slide 29: Opportunities
Opportunities China’s economy has maintained steady performance and good momentum for growth with continued structural adjustment, better-than-expected key indicators, increased macroeconomic stability and positive economic developments. The National Financial Work Conference has set the goal fo
Slide 30: Business strategy
Business strategy Faced with challenges and opportunities under the new conditions, we will adhere to the business philosophy of maintaining balanced development of profitability, asset quality and scale, and strive to build a “Light-operation Bank” through the “One Body with Two Wings” strategy. We
Slide 31: Q&A
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