China Merchants Bank (3968) investor relations material

Executive summary

• Net operating income rose 4.83% year-on-year to CNY/RMB 178.135 billion; net profit attributable to shareholders increased 2.02% to CNY/RMB 76.45 billion, with ROAA at 1.14% and ROAE at 13.43%, maintaining industry-leading levels.

• Total assets reached CNY/RMB 13.79 trillion, up 5.47%; total loans and advances rose 3.69% to CNY 7.45 trillion; total deposits exceeded CNY 10 trillion, up 3.32%.

• Asset quality remained stable with NPL ratio at 0.94% and allowance coverage ratio at 385.1%.

• Retail finance contributed 54.35% of net operating income; rapid client base expansion and significant growth in wealth management and international business.

• Maintained stable asset quality and robust risk compensation capacity, with industry-leading capital adequacy.

Financial highlights

• Net interest income grew 5.6% to CNY/RMB 112.02 billion; net non-interest income increased 3.56% to CNY/RMB 66.11 billion; cost-to-income ratio improved to 29.7%.

• Net fee and commission income rose 5.99% to CNY 39.86 billion; wealth management income up 18.44% to CNY 24.7 billion.

• Retail AUM exceeded CNY 18 trillion, up 7.96% from year-end 2025; half-year increase hit a record CNY 1.36 trillion.

• Corporate loans grew 9.27% to CNY/RMB 3.2 trillion; retail loans contracted 1.11% to CNY 3.61 trillion; green loans up 11.50%.

• Overseas subsidiaries' total assets rose 7.01%; CMB Wing Lung Bank net profit up 55.88%; international subsidiaries saw net profit growth over 100% YoY.

Outlook and guidance

• Management targets stable, steady progress, focusing on asset quality, balanced growth, and accelerating intelligent transformation.

• Loan growth expected to remain around 5% in the near term, with emphasis on quality over scale.

• NIM decline is narrowing; stabilization expected as repricing completes and competition moderates.

• Strategic focus on wealth management, technology finance, green finance, internationalization, and AI-driven transformation.

• Emphasis on risk-based approach and capturing structural opportunities for sustainable growth.