China Merchants Bk Co H (CIHHF) Q2 2026 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome to the 2026 Interim Results Presentation. Today, I will cover three areas. Firstly, an overall introduction. And secondly, a detailed information. And thirdly, a business strategy for the next phase. In the first half of the year, the group implemented a strategy of building a value creation bank and adhered to the coordinated development of quality, profitability, and scale. Various operation indicators registered steady progress with positive momentum. This was primarily reflected in four aspects. First, steady progress in operating performance with distinctive strength and profitability. Net operating income, 178.135 billion, up by 4.83% year-on-year. Net profit attributable to shareholders of the bank, 76.45 billion, up by 2.02% year-on-year. RAA and RAE were 1.14 and 13.43% respectively, remaining at industry-leading levels. Net interest income. 112.02 billion, up by 5.6%, affected by LPR repricing, ineffective credit demand, and declining market interest rates. The net interest margin was 1.83%, down 0.5% year-on-year, representing a narrower decline. Net non-interest income reached 66.11 billion yen, up by 3.56% year-on-year. The percentage of net non-nutrient income was 37.11%, maintaining the leading position in the industry. Net fee and commission income reached 39.86 billion yen, up by 5.99% year-on-year, of which income from extensive growth management reached 24.7 billion yen, rising by 18.44% year-on-year, representing the best level in the past five years. The cost-to-income ratio was 29.7%, down 0.41% each point year-on-year. Second, we delivered balanced asset growth in both scale and quality, with continued improvements in funding costs. Amid ineffective credit bonds, we carried out a range of measures to strengthen asset origination and opt...