China Minsheng Banking (600016) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was RMB 71.54 billion, down 6.17% year-over-year; net profit attributable to shareholders was RMB 23.78 billion, down 5.48% year-over-year.

• Net interest income decreased 5.36% year-over-year; non-interest income fell 8.22% year-over-year.

• Total assets at June 30, 2024, were RMB 7.67 trillion, down 1.62% from year-end 2023; loans grew 0.87% to RMB 4.38 trillion.

• Asset quality remained stable: NPL ratio at 1.48%, provision coverage at 149.69%.

• Interim cash dividend proposal: RMB 1.30 per 10 shares, pending shareholder approval.

Financial highlights

• Net interest margin for H1 2024 was 1.48%, down 10bps year-over-year.

• Cost-to-income ratio rose to 29.54% from 28.39% a year ago.

• Return on average assets (annualized) was 0.64%; return on average equity (annualized) was 7.88%.

• Basic and diluted EPS were RMB 0.46, down 6.52% year-over-year.

• Operating cash flow was RMB 108.63 billion.

Outlook and guidance

• Management expects continued pressure on net interest margin but sees stabilization as deposit competition eases.

• Focus remains on optimizing asset structure, supporting key sectors (green finance, manufacturing, SMEs), and digital transformation.

• The bank will continue to strengthen risk management and maintain stable asset quality.