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China Merchants Bank

Merchants Bank's customer deposits rose 6.01% yoy to CNY 3,802,000 mil in 4Q2016

By Helgi Library - October 8, 2019

China Merchants Bank's customer deposits reached CNY 3,802,000 mil in 2016-12-31, up 5.14% compared to the previous year. Chine...

Merchants Bank's market capitalisation (end of period) rose 7.37% to USD 116,186 mil in 2Q2019

By Helgi Library - October 23, 2019

China Merchants Bank stock traded at JPY 1,645 per share at the end of second quarter of 2019 implying a market capitalization of US...

Merchants Bank's npls (as % of loans) fell 40.3% yoy to 1.23% in 2Q2019

By Helgi Library - October 8, 2019

China Merchants Bank's non-performing loans reached 1.23% of total loans at the end of 2019-06-30, down from 2.06% compared to th...

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income statement Unit May 2024 Jun 2019
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Merchants Bank's net profit rose 14.9% yoy to CNY 25,372 mil in 2Q2019

By Helgi Library - October 8, 2019

China Merchants Bank made a net profit of CNY 25,372 mil under revenues of CNY 70,329 mil in the second quarter of 2019, up 14.9% and 6.94% respectively when compared to the same period last year. Historically, the bank’s net profit reached an all time high of ...

Merchants Bank's share price (end of period) rose 36.1% yoy to HKD 36.0 in 2Q2019

By Helgi Library - October 8, 2019

China Merchants Bank stock traded at HKD 36.0 per share at the end of second quarter of 2019 implying a market capitalization of USD 116,186 mil. Over the last five years, the stock has appreciated by % implying an annual average growth of 0 %. In absolute terms, the...

Merchants Bank's corporate loans rose 17.0% yoy to CNY 2,084,500 mil in 2Q2019

By Helgi Library - October 8, 2019

China Merchants Bank's loans reached CNY 4,323,500 mil in the second quarter of 2019, up from CNY 4,125,800 mil when compared to the previous quarter and up from CNY 3,877,900 mil when compared to the same period of last year. Historically, the bankâ€...

Merchants Bank's net interest income rose 12.7% yoy to CNY 44,038 mil in 2Q2019

By Helgi Library - October 8, 2019

China Merchants Bank generated total banking revenues of CNY 70,329 mil in the second quarter of 2019, up 6.94% when compared to the same period of last year and 0.434% when compared to the previous quarter. Historically, the bank’s revenues containing of int...

Merchants Bank's price/earnings (P/E) rose 14.2% yoy to 11.9 in 2Q2019

By Helgi Library - October 8, 2019

China Merchants Bank stock traded at HKD 36.0 per share at the end second quarter of 2019 implying a market capitalization of USD 116,186 mil. Since the end of 2Q2014, the stock has appreciated by % implying an annual average growth of 0 %. In absolute terms, the val...

Merchants Bank's net interest margin rose 3.05% yoy to 2.52% in 2Q2019

By Helgi Library - October 8, 2019

China Merchants Bank's net interest margin amounted to 2.52% in the second quarter of 2019, down from 2.56% when compared to the previous quarter. Historically, the bank’s net interest margin reached an all time high of 2.79% in 1Q2015 and an all time low of...

Merchants Bank's capital adequacy ratio rose 0.066% yoy to 15.1% in 2Q2019

By Helgi Library - October 8, 2019

China Merchants Bank's capital adequacy ratio reached 15.1% at the end of second quarter of 2019, down from 15.9% when compared to the previous quarter. Historically, the bank’s capital ratio hit an all time high of 15.9% in 1Q2019 and an all time low of 12.3% in 3...

Merchants Bank's equity (as % of assets) rose 3.49% yoy to 7.98% in 2Q2019

By Helgi Library - October 8, 2019

China Merchants Bank's Equity reached 7.25% of total assets in the 2Q2019, up from 7.16% for the previous year. As a share of net customer loans, the ratio amounted to 13.9% at the end of the second quarter of 2019. ...

Merchants Bank's customer loan growth rose 29.3% yoy to 11.3% in 2Q2019

By Helgi Library - October 8, 2019

China Merchants Bank's customer loan growth reached 11.3% in 2019-06-30, up from 8.78% compared to the previous year. Historically, the bank’s loans growth reached an all time high of 16.7% in 2017-03-31 and an all time low of 7.42% in 2018-03-31. In the ...

Merchants Bank's retail loan growth rose 98.4% yoy to 19.7% in 2Q2019

By Helgi Library - October 8, 2019

China Merchants Bank's retail loans reached CNY 2,239,100 mil at the end of 2019-06-30, up 5.41% compared to the previous year. In the last decade, the average annual loan growth amounted to 0%. Overall, retail loans accounted for 54.3% of the bank's loan b...

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China Merchants Bank (CMB) is a China-based commercial bank. It was founded in 1987 and headquartered in Shenzhen, CMB has a leading retail franchise and offers diversified wholesale and retail finance services. The Bank was listed on the SSE in April 2002 and the HKEX in September 2006. At end of 2018, CMB’s total assets amounted to CNY 6.75 bil while loans and total deposits reached CNY 3.94 bil and CNY 4.43 bil respectively.

China Merchants Bank Logo

Finance

China Merchants Bank has been growing its revenues and asset by 16.1% and 15.7% a year on average in the last 10 years. Its loans and deposits have grown by 16.0% and 13.5% a year during that time and loans to deposits ratio reached 84.2% at the end of 2018. The company achieved an average return on equity of 19.9% in the last decade with net profit growing 14.3% a year on average. In terms of operating efficiency, its cost to income ratio reached 32.8% in 2018, compared to 38.8% average in the last decade.

Equity represented 8.06% of total assets or 14.5% of loans at the end of 2018. China Merchants Bank's non-performing loans were 1.95% of total loans while provisions covered some 249% of NPLs at the end of 2018.

Valuation

China Merchants Bank stock traded at HKD 25.2 per share at the end of 2018 resulting in a market capitalization of USD 81,168 mil. Over the previous five years, stock price rose by 140% or 19.1% a year on average. That’s compared to an average ROE of 16.8% the bank generated for its shareholders. This closing price put stock at a 12-month trailing price to earnings (PE) of 8.98x and price to book value (PBV) of 1.33x in 2018.

Risks

Macroeconomic slowdown, potential regulatory tightening and worsening asset quality as a result seem to be the main risks related to the Bank’s business and valuation a few quarters ahead. So far, the Bank seems to be doing fine with all the main ratios (NPL ration, cost of risk, or provision coverage showing the best results for a few years now).