China Merchants Bank (600036) Third Quarterly Report Review: Excellent Asset Quality and Strong Profitability

China Merchants Bank (600036) Third Quarterly Report Review: Excellent Asset Quality and Strong Profitability

Event: China Merchants Bank released three quarterly reports, and achieved operating income of 2077 in the first three quarters.

300 million, an increase of 10 in ten years.

36%; 772 net profit is gradually realized.

3.9 billion, an increase of 14 years.

63%.

Defective rate 1.

19%, a decrease of 4BP from the end of the previous quarter; provision coverage ratio was 409.

41%, an increase of 15 from the end of the previous quarter.

29 units.

The growth rate of net profit attributable to mothers increased compared with the previous two quarters, and the profitability was strong.

Net profit attributable to mother in the third quarter was 266.

27 ppm, an increase of 17 in ten years.

69%, the growth rate of net profit attributable to mothers continued to increase in the single quarter (the growth rates in the first and second quarters were 11 respectively.

32%, 14.

9%).

The growth rate of net profit is higher than the profit growth before provision, and provision has become a source of profit release.

Net interest margin fell month-on-month, but still maintained a high level.

Annualized net interest margin for the first three quarters2.

65%, which is 5bp lower than the net interest margin in the first half of the year and 2 in the third quarter.

57%, a decrease of 12bp from the second quarter.

The decline in loan interest rates and the rise in deposit costs have narrowed the narrowing of the net interest margin.

Thanks to the high proportion of retail business, China Merchants Bank’s net interest margin is still at a relatively high level among listed banks.

The growth rate of non-interest income increased, pushing the revenue growth rate higher than in the second quarter.

Net income from fees and commissions increased by 17 in the third quarter.

25%. It is estimated that due to the increase in net foreign exchange gains and losses, and gains from changes in fair value, non-interest income in the third quarter increased by 21% each year.

Driven by non-interest income, annual revenue growth in the third quarter (11.

85%) increased by 4 compared with the second quarter.

58 units.

The retail business has solid advantages and rapid revenue growth.

As of the end of the third quarter, CMB’s retail loans accounted for 55.

18%.

In the first three quarters, China Merchants Bank achieved 1,069 retail financial business revenue.

08 million yuan, an increase of 22 in ten years.

18%, accounting for 55 of total revenue.

03%, retail finance business is still the main driver of revenue growth.

The asset quality is excellent, and the provision coverage ratio continues to increase.

As of the end of September, CMB’s NPL ratio was 1.

19%, down 4BP from the end of the previous quarter.China Merchants Bank’s bad confirmation is strict, historical burden is small, and the non-performing rate has decreased for 11 consecutive quarters.

Credit impairment losses in the third quarter were 118.

7.2 billion, down 26.

96%, an annual decrease of 11.

28%.

However, thanks to the improvement of the denominator, the provision coverage ratio was 409 at the end of the third quarter.

41%, still up 15 from the end of the previous quarter.

29 units.

China Merchants Bank’s level of provision coverage has provided it with a 武汉夜网论坛 higher level of safety, and also left room for profit release in the future.

Investment suggestion: China Merchants Bank’s asset quality continues to improve, and the length of profit release space.

The retail business has a solid advantage, and its performance has continued to increase, with a “Buy” rating.

Risk reminder: Pay attention to the risks of the decline in asset quality caused by the decline of the macro economy.