27 slides from China Minsheng Banking Corp., Ltd. Class A's earnings presentation, March 2011
Slide 1: China Minsheng Banking Corp., Ltd. 2010 Annual Results Announcement
Strictly confidential China Minsheng Banking Corp., Ltd. 2010 Annual Results Announcement March 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: Presentation team
Presentation team Hong Qi Director, President Mao Xiaofeng Vice President and Board Secretary 2
Slide 4: Agenda
Agenda 1 Business Review 2 Financial Performance 3 Outlook 3
Slide 5: Agenda
Agenda 1 Business Review 2 Financial Performance 3 Outlook 4
Slide 6: “Second take-off” strategy with focused initiatives
“Second take-off” strategy with focused initiatives Strategic objective — to become an internationally competitive and the best PRC commercial bank Clearly defined strategic positioning —a bank for private enterprises, small and micro-enterprises and high-end customers A bank for private To assist p
Slide 7: Business overview
Business overview In 2010, the businesses of our Group experienced stable and healthy development and helped us achieve good operating results 1 Revenue structure and profitability improved significantly NIS, NIM increased notably from last year Net fee and commission income increased rapidly an
Slide 8: Overview of key financials
Overview of key financials Key income statement data Key items of statement of (RMB million, except EPS) 2010 2009 Growth (%) financial position (RMB million) 31-Dec-2010 31-Dec-2009 Growth (%) Net interest income 45,873 32,240 42.3% Loans and advances 1,057,571 882,979 19.8% Net non-interest
Slide 9: Corporate banking business-increase in scale with continued restructuring
Corporate banking business-increase in scale with continued restructuring Actively coping with a changing business environment and continue to refine our business structure, customer base and income structure Corporate deposits and loans (general corporate loans)1 Outstanding loans to private enterp
Slide 10: Steady growth of SBU operations
Steady growth of SBU operations All SBUs actively coped with the complicated and changing external environment by taking initiatives to implement structural adjustments, strengthen risk prevention, explore emerging market opportunities and continue to transform our operational models. All businesses
Slide 11: Featured business
Featured business Trade finance business Best China Banking Industry Achievement Award: Best Best Trade Finance Award Best Trade Finance Bank CFO World Financial Times, UK Trade finance business -net non-interest income Volume of international dual factoring (RMB million) (USD million) 7.4% 2,000 th
Slide 12: Retail banking business—rapid expansion in size and structure optimization
Retail banking business—rapid expansion in size and structure optimization Retail deposits1 Retail loans (excluding credit card overdraft) 1 (RMB million) (RMB million) 5.3% r ate: 7 th rate: 18.9% grow t h 300,000 Deposits grow 300,000 Loan 261,453 230,251 193,726 200,000 200,000 149,130 100,000 10
Slide 13: Fast growth of “Shang Dai Tong” business
Fast growth of “Shang Dai Tong” business “Shang Dai Tong” loan business has boosted the rapid growth of our retail loans, bringing a substantial breakthrough in our small and micro-finance operations Outsta 2010 Outstanding Service Provider for SMEs 2010 Outsta 2010 Financial Service Award for Small
Slide 14: Expanding high-end customer base and growing credit card business
Expanding high-end customer base and growing credit card business Continued strategic focus on retail high-end customers and achieved a significant increase in the number of high-end customers Customers with personal financial assets over Contribution of deposits from customers with personal RMB500,
Slide 15: Agenda
Agenda 1 Business review 2 Financial performance 3 Outlook 14
Slide 16: Key income statement items
Key income statement items (RMB million, expect per share data) 2010FY 2009FY Growth rate（%） Net interest income 45,873 32,240 42.3% Non-interest income 8,794 9,797 (10.2%)1 of which: net fee and commission income 8,289 4,664 77.7% Operating income 54,667 42,037 30.0% Operating expenses (25,452) (20
Slide 17: Key financial position items
Key financial position items (RMB million) 31 Dec 2010 31 Dec 2009 Growth（%） Gross loans 1,057,571 882,979 19.8% Investments 181,419 156,956 15.6% Total assets 1,823,737 1,426,392 27.9% 31 Dec 2010 31 Dec 2009 Growth（%） Customer deposits 1,416,939 1,127,938 25.6% Debt securities in issue 21,496 23,0
Slide 18: Continued improvement in profitability
Continued improvement in profitability ROAE Return on shareholders’ equity1 ppts ts Up by 3.1 19% .2 pp 18% 16.9% Up by 1 18.3% 16% 18% 13.7% 17.1% 14% 17% 12% 16% 10% 2009 2010 2009 2010 Source: Annual report Source: Annual report Note:1 Net profit attributable to equity holders of the parent compa
Slide 19: Net interest income
Net interest income Significant improvement of net interest margin in 2010 Net interest income Net interest margin （RMB million） % 42.3 50,000 e : 45,873 3.5% h rat t 40,000 ow Gr ps 32,240 3.0% 35b 2.94% b y 30,000 Up 2.59% 20,000 2.5% 10,000 0 2.0% 2009 2010 2009 2010 Source: Annual report Source:
Slide 20: Non-interest income
Non-interest income Significant growth in net fee and commission income further optimized our income sources Growth in net fee and commission income Net fee and commission income composition （RMB million） （RMB million） .7% t e: 77 a 100% 10,000 w th r 8,289 229 403 Gro 135 335 8,000 299 924 6,000 4,
Slide 21: Operation efficiency
Operation efficiency Contribution per branch unit/employee has continuously increased and our operation efficiency has improved more rapidly Customer deposits per branch unit Cost-to-income ratio （RMB million） 50% : 7.0% Down Growth rate by 2 .57pp 3,000 ts 2,774 45% 43.47% 2,800 40.90% 2,593 2,600
Slide 22: Loans and deposits
Loans and deposits Total deposits Total loans （RMB million） （RMB million） 5.6% % rate: 2 te: 19.8 Growth Growth ra 1,416,939 1,200,000 1,057,571 1,500,000 1,127,938 1,000,000 882,979 1,200,000 800,000 900,000 600,000 600,000 400,000 300,000 200,000 0 0 31-Dec-2009 31-Dec-2010 31-Dec-2009 31-Dec-2010
Slide 23: Asset quality
Asset quality Comprehensive risk management has been fully implemented. The Bank reduced NPL and NPL ratio and enhanced provision coverage ratio NPL NPL ratio （RMB million） Decre Decreased b ased b y 0.15 ppts 10,000 y 0.8% 1.0% 0.84% 8,000 7,397 7,339 0.8% 0.69% 6,000 0.6% 4,000 0.4% 2,000 0.2% 0 0
Slide 24: Capital adequacy ratio
Capital adequacy ratio Capital adequacy ratio Core capital adequacy ratio 12.0% 10.83% 10.44% 10.0% 8.92% 8.07% 8.0% 9.0% 6.0% 6.0% 4.0% 3.0% 2.0% 0% 0% 31-Dec-2009 31-Dec-2010 31-Dec-2009 31-Dec-2010 Source: Annual report Source: Annual report General improvement for capital management Shareholders
Slide 25: Agenda
Agenda 1 Business review 2 Financial performance 3 Outlook 24
Slide 26: 2011 outlook
2011 outlook Well positioned for the market opportunities to realize our strategic goals of stable growth and business structure optimization As the first year of the 12th Five-Year Plan, 2011 will see changes in economic drivers, industrial structure, regional development and pattern of economic gr
Slide 27: Q&A
Q&A 26