China Merchants Bank (3968) Q2 2026 earnings summary

Executive summary

• Net operating income rose 4.83% year-over-year to RMB178.135 billion, with net profit attributable to shareholders up 2.02% to RMB76.45 billion; ROAA at 1.14% and ROAE at 13.42–13.43%, maintaining industry-leading levels.

• Total assets increased 5.47% from year-end 2025 to RMB13.79 trillion; total loans and advances grew 2.69–3.69% to RMB7.45 trillion; total deposits exceeded RMB10 trillion, up 3.32%.

• Asset quality remained stable: non-performing loan (NPL) ratio held at 0.94%, allowance coverage ratio at 385.10%.

• Retail finance contributed 54.35% of net operating income; wholesale finance profit before tax surged 23.33% year-over-year.

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

Financial highlights

• Net interest income increased 5.60% year-over-year to RMB112.022 billion; net non-interest income up 3.56% to RMB66.113 billion; cost-to-income ratio improved to 29.70%.

• Net fee and commission income rose 5.99% to RMB39.86 billion; wealth management income up 18.44% to RMB24.7 billion.

• Retail AUM exceeded RMB18 trillion, up 7.96% from year-end 2025; half-year increase hit a record RMB1.36 trillion.

• Corporate loans grew 9.27% to RMB3.2 trillion; retail loans contracted 1.11% to RMB3.61 trillion.

• Overseas subsidiaries' total assets rose 7.01%; CMB Wing Lung Bank net profit up 55.88%.

Outlook and guidance

• Management expects credit demand and net interest margin to stabilize in the second half as economic fundamentals recover.

• Focus on high-quality asset origination, optimizing liability structure, and expanding core deposits.

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