China Merchants Bank

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

By Helgi Analytics - November 05, 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 net profit rose 0.523% to CNY 25,372 mil in 2Q2019

By Helgi Analytics - November 05, 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...

Merchants Bank's npls (as % of loans) fell 8.73% to 1.23% in 2Q2019

By Helgi Analytics - November 05, 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...

Profit Statement 2016 2017 2018
Net Interest Income CNY mil 134,595 144,852 160,384
Fee Income (As % Of Revenues) % 29.0 29.1 26.9
Other Income CNY mil 14,489 11,169 20,271
Total Revenues CNY mil 209,949 220,039 247,135
Staff Cost CNY mil 32,811 39,512 46,025
Operating Profit CNY mil 144,801 149,608 166,025
Provisions CNY mil 64,560 59,926 60,837
Net Profit CNY mil 62,081 70,150 80,560
Balance Sheet 2016 2017 2018
Interbank Loans CNY mil 581,963 407,178 512,797
Customer Loans CNY mil 3,151,600 3,414,600 3,749,900
Debt Securities CNY mil 1,455,600 1,589,300 1,680,100
Total Assets CNY mil 5,942,300 6,297,600 6,745,700
Shareholders' Equity CNY mil 403,362 483,392 543,605
Interbank Borrowing CNY mil 1,519,500 837,472 752,917
Customer Deposits CNY mil 3,802,000 4,085,300 4,454,300
Issued Debt Securities CNY mil 53,163 690,380 803,516
Ratios 2016 2017 2018
ROE % 16.2 15.8 15.7
ROA % 1.09 1.15 1.24
Costs (As % Of Assets) % 1.14 1.15 1.24
Costs (As % Of Income) % 31.0 32.0 32.8
Capital Adequacy Ratio % 13.3 15.5 15.7
Net Interest Margin % 2.36 2.37 2.46
Loans (As % Of Deposits) % 82.9 83.6 84.2
NPLs (As % Of Loans) % 1.90 2.14 1.95
Provisions (As % Of NPLs) % 178 197 249
Valuation 2016 2017 2018
Market Capitalisation (End Of Period) USD mil 56,457 93,652 81,168
Share Price (End Of Period) HKD 17.4 29.0 25.2
Price/Earnings (P/E) 7.87 12.5 8.98
Price/Book Value (P/BV) 1.21 1.82 1.33
Earnings Per Share (EPS) CNY 2.46 2.78 3.19
Book Value Per Share CNY 16.0 19.2 21.6

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summary Unit 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
income statement                                  
Net Interest Income CNY mil ... ... ...               88,398 98,932 117,223 137,586 134,595    
Total Revenues CNY mil                     113,778 133,049 166,388 202,166 209,949    
Operating Profit CNY mil                     65,428 78,905 105,307 134,205 144,801    
Net Profit CNY mil                     45,273 51,743 55,911 57,696 62,081    
balance sheet                                  
Interbank Loans CNY mil ... ... ...               210,385 466,952 469,065 529,617 581,963    
Customer Loans CNY mil                     1,863,300 2,148,300 2,448,800 2,739,400 3,151,600    
Debt Securities CNY mil ... ... ...               520,132 765,810 1,003,800 1,445,600 1,455,600    
Total Assets CNY mil                     3,408,100 4,016,400 4,731,800 5,475,000 5,942,300    
Shareholders' Equity CNY mil                     200,401 265,956 315,060 361,758 403,362    
Interbank Borrowing CNY mil ... ... ...               526,460 792,478 859,039 1,138,600 1,519,500    
Customer Deposits CNY mil                     2,532,400 2,775,300 3,325,700 3,586,400 3,802,000    
Issued Debt Securities CNY mil ... ... ...               77,111 68,936 104,864 236,759 53,163    
ratios                                  
ROE %                     24.8 22.2 19.2 17.0 16.2    
ROA %                     1.46 1.39 1.28 1.13 1.09    
Costs (As % Of Assets) %                     1.56 1.46 1.40 1.33 1.14    
Costs (As % Of Income) %                     42.5 40.7 36.7 33.6 31.0    
Capital Adequacy Ratio %                     11.4 11.1 12.4 12.6 13.3    
Net Interest Margin % ... ... ...               2.85 2.67 2.68 2.70 2.36    
Interest Income (As % Of Revenues) % ... ... ...               77.7 74.4 70.5 68.1 64.1    
Fee Income (As % Of Revenues) % ... ... ...               17.3 21.9 23.7 26.2 29.0    
Staff Cost (As % Of Total Cost) % ... ... ...               49.5 49.8 47.8 46.2 50.4    
Equity (As % Of Assets) %                     5.88 6.62 6.66 6.61 6.79    
Loans (As % Of Deposits) %                     73.6 77.4 73.6 76.4 82.9    
Loans (As % Assets) %                     54.7 53.5 51.8 50.0 53.0    
NPLs (As % Of Loans) %                     0.696 0.886 1.17 1.86 1.90    
Provisions (As % Of NPLs) % ... ... ...               310 251 222 161 178    
valuation                                  
Market Capitalisation (End Of Period) USD mil ... ... ...               38,543 34,185 53,960 56,957 56,457    
Number Of Shares (Average) mil ... ... ...               22,080 25,220 25,220 25,220 25,220    
Share Price (End Of Period) HKD ... ... ...               13.5 10.5 16.6 17.5 17.4    
Earnings Per Share (EPS) CNY ... ... ...               2.05 2.05 2.22 2.29 2.46    
Book Value Per Share CNY ... ... ...               9.08 10.5 12.5 14.3 16.0    
Price/Earnings (P/E) ... ... ...               8.21 6.56 9.35 9.14 7.87    
Price/Book Value (P/BV) ... ... ...               1.85 1.28 1.66 1.46 1.21    
Earnings Per Share Growth % ... ... ... ...             25.3 0.060 8.06 3.19 7.60    
Book Value Per Share Growth % ... ... ... ...             21.4 16.2 18.5 14.8 11.5    
income statement Unit 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
income statement                                  
Interest Income CNY mil ... ... ...               150,125 173,514 228,057 235,976 215,481    
Interest Cost CNY mil ... ... ...               61,727 74,582 110,834 98,390 80,886    
Net Interest Income CNY mil ... ... ...               88,398 98,932 117,223 137,586 134,595    
Net Fee Income CNY mil ... ... ...               19,739 29,184 39,494 53,009 60,865    
Other Income CNY mil ... ... ...               5,641 4,933 9,671 11,571 14,489    
Total Revenues CNY mil                     113,778 133,049 166,388 202,166 209,949    
Staff Cost CNY mil ... ... ...               23,932 26,990 29,179 31,394 32,811    
Depreciation CNY mil ... ... ...               2,924 3,295 3,535 4,084 4,287    
Other Cost CNY mil ... ... ...               21,494 23,859 28,367 32,483 28,050    
Operating Cost CNY mil                     48,350 54,144 61,081 67,961 65,148    
Operating Profit CNY mil                     65,428 78,905 105,307 134,205 144,801    
Provisions CNY mil                     5,583 10,218 31,681 59,266 64,560    
Extra and Other Cost CNY mil                     281 262 195 -140 1,278    
Pre-Tax Profit CNY mil                     59,564 68,425 73,431 75,079 78,963    
Tax CNY mil                     14,287 16,683 17,382 17,061 16,583    
Minorities CNY mil                     4.00 -1.00 138 322 299    
Net Profit CNY mil                     45,273 51,743 55,911 57,696 62,081    
growth rates                                  
Net Interest Income Growth % ... ... ... ...             15.8 11.9 18.5 17.4 -2.17    
Net Fee Income Growth % ... ... ... ...             29.0 47.8 35.3 34.2 14.8    
Total Revenue Growth % ...                   18.2 16.9 25.1 21.5 3.85    
Operating Cost Growth % ...                   18.2 12.0 12.8 11.3 -4.14    
Operating Profit Growth % ...                   18.1 20.6 33.5 27.4 7.90    
Pre-Tax Profit Growth % ...                   26.4 14.9 7.32 2.24 5.17    
Net Profit Growth % ...                   25.3 14.3 8.06 3.19 7.60    
market share                                  
Market Share in Revenues % ... ... ... ... ... ... ... ...     3.60 3.72 3.96 4.35 4.47   ...
Market Share in Net Profit % ... ... ... ... ...           3.00 ... ... ... ... ... ...
Market Share in Employees % ... ... ... ... ... ... ... ...   ... ... ... ... ... ... ... ...
balance sheet Unit 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
balance sheet                                  
Cash CNY mil ... ... ...               752,262 556,089 710,771 648,121 597,529    
Interbank Loans CNY mil ... ... ...               210,385 466,952 469,065 529,617 581,963    
Customer Loans CNY mil                     1,863,300 2,148,300 2,448,800 2,739,400 3,151,600    
Retail Loans CNY mil ... ... ...               686,784 800,249 971,327 1,226,700 1,540,600    
Mortgage Loans CNY mil ... ... ...               335,746 268,606 329,178 499,455 728,328    
Consumer Loans CNY mil ... ... ...               351,038 531,643 642,149 727,245 812,272    
Corporate Loans CNY mil ... ... ...               1,152,800 1,325,800 1,467,600 1,507,800 1,721,100    
Debt Securities CNY mil ... ... ...               520,132 765,810 1,003,800 1,445,600 1,455,600    
Fixed Assets CNY mil ... ... ...               32,841 37,148 40,690 45,384 56,936    
Total Assets CNY mil                     3,408,100 4,016,400 4,731,800 5,475,000 5,942,300    
Shareholders' Equity CNY mil                     200,401 265,956 315,060 361,758 403,362    
Of Which Minority Interest CNY mil ... ... ... ... ...           73.0 491 656 952 1,012    
Liabilities CNY mil                     3,207,700 3,750,440 4,416,740 5,113,240 5,538,940    
Interbank Borrowing CNY mil ... ... ...               526,460 792,478 859,039 1,138,600 1,519,500    
Customer Deposits CNY mil                     2,532,400 2,775,300 3,325,700 3,586,400 3,802,000    
Retail Deposits CNY mil ... ... ...               925,503 968,324 1,093,030 1,210,170 1,284,560    
Corporate Deposits CNY mil ... ... ...               1,606,940 1,806,950 2,211,410 2,361,530 2,517,490    
Sight Deposits CNY mil ... ... ...               1,322,500 1,411,600 1,618,500 2,002,500 2,392,800    
Term Deposits CNY mil ... ... ...               1,209,900 1,363,700 1,707,200 1,583,900 1,409,200    
Issued Debt Securities CNY mil ... ... ...               77,111 68,936 104,864 236,759 53,163    
Other Liabilities CNY mil ... ... ...               71,728 113,730 127,137 151,483 164,275    
asset quality                                  
Non-Performing Loans CNY mil ... ... ...               13,258 19,462 29,368 52,632 61,985    
Gross Loans CNY mil ... ... ...               1,904,500 2,197,100 2,513,900 2,824,300 3,261,700    
Total Provisions CNY mil ... ... ...               41,138 48,764 65,165 84,842 110,032    
growth rates                                  
Customer Loan Growth % ...                   16.1 15.3 14.0 11.9 15.0    
Retail Loan Growth % ... ... ... ...             20.2 16.5 21.4 26.3 25.6    
Mortgage Loan Growth % ... ... ... ...             3.74 -20.0 22.6 51.7 45.8    
Consumer Loan Growth % ... ... ... ...             41.8 51.4 20.8 13.3 11.7    
Corporate Loan Growth % ... ... ... ...             16.0 15.0 10.7 2.74 14.1    
Total Asset Growth % ...                   21.9 17.8 17.8 15.7 8.54    
Shareholders' Equity Growth % ...                   21.4 32.7 18.5 14.8 11.5    
Customer Deposit Growth % ...                   13.3 9.59 19.8 7.84 6.01    
Retail Deposit Growth % ... ... ... ...             15.2 4.63 12.9 10.7 6.15    
Corporate Deposit Growth % ... ... ... ...             13.4 12.4 22.4 6.79 6.60    
market share                                  
Market Share in Customer Loans % ...                   2.77 2.70 2.71 2.61 2.70   ...
Market Share in Total Assets % ...                   2.55 2.63 2.75 2.75 2.58   ...
Market Share in Customer Deposits % ...                   2.69 6.66 7.35 6.30 5.35   ...
Market Share in Retail Deposits % ... ... ... ... ... ...         2.32 2.16 2.25 2.30 ... ... ...
Market Share in Corporate Deposits % ... ... ... ... ... ...         4.91 5.00 5.85 5.49 ... ... ...
ratios Unit 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
ratios                                  
ROE %                     24.8 22.2 19.2 17.0 16.2    
ROA %                     1.46 1.39 1.28 1.13 1.09    
Costs (As % Of Assets) %                     1.56 1.46 1.40 1.33 1.14    
Costs (As % Of Income) %                     42.5 40.7 36.7 33.6 31.0    
Capital Adequacy Ratio %                     11.4 11.1 12.4 12.6 13.3    
Tier 1 Ratio %                     8.34 9.27 10.4 10.8 11.5    
Net Interest Margin % ... ... ...               2.85 2.67 2.68 2.70 2.36    
Interest Spread % ... ... ...               2.73 2.53 2.50 2.56 2.26    
Asset Yield % ... ... ...               4.84 4.67 5.21 4.62 3.77    
Cost Of Liabilities % ... ... ...               2.11 2.14 2.71 2.06 1.52    
Interest Income (As % Of Revenues) % ... ... ...               77.7 74.4 70.5 68.1 64.1    
Fee Income (As % Of Revenues) % ... ... ...               17.3 21.9 23.7 26.2 29.0    
Other Income (As % Of Revenues) % ... ... ...               4.96 3.71 5.81 5.72 6.90    
Cost Per Employee USD per month ... ... ... ...             5,326 5,374 5,281 5,409 5,774    
Cost Per Employee (Local Currency) CNY per month ... ... ... ...             33,609 33,038 32,374 34,337 38,805    
Staff Cost (As % Of Total Cost) % ... ... ...               49.5 49.8 47.8 46.2 50.4    
Equity (As % Of Assets) %                     5.88 6.62 6.66 6.61 6.79    
Loans (As % Of Deposits) %                     73.6 77.4 73.6 76.4 82.9    
Loans (As % Assets) %                     54.7 53.5 51.8 50.0 53.0    
NPLs (As % Of Loans) %                     0.696 0.886 1.17 1.86 1.90    
Provisions (As % Of NPLs) % ... ... ...               310 251 222 161 178    
Provisions (As % Of Loans) % ... ... ...               2.21 2.27 2.66 3.10 3.49    
Cost of Provisions (As % Of Loans) %                     0.322 0.509 1.38 2.28 2.19    
other data Unit 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
other data                                  
Branches ... ... ... ...   ... ... ... ... ... ... ... ... ... ... ... ...
Employees ... ... ... ...             59,340 68,078 75,109 76,192 70,461    
ATMs ... ... ... ...   ... ... ... ... ... ... ... ... ... ... ... ...
Sight (As % Of Customer Deposits) % ... ... ...               52.2 50.9 48.7 55.8 62.9    
On-balance Sheet Loans RMB mil ... ... ... ... ... ... ... ... ... ... ... 2,148,300 2,448,800 2,739,400 3,151,600    

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Merchants Bank's share price (end of period) rose 6.82% to HKD 36.0 in 2Q2019

By Helgi Analytics - November 05, 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 4.01% to CNY 2,084,500 mil in 2Q2019

By Helgi Analytics - November 05, 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 bank...

Merchants Bank's net interest income rose 1.54% to CNY 44,038 mil in 2Q2019

By Helgi Analytics - November 05, 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) fell 0.153% to 11.9 in 2Q2019

By Helgi Analytics - November 05, 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 fell 1.71% to 2.52% in 2Q2019

By Helgi Analytics - November 05, 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 fell 4.85% to 15.1% in 2Q2019

By Helgi Analytics - November 05, 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) fell 5.39% to 7.98% in 2Q2019

By Helgi Analytics - November 05, 2019

China Merchants Bank's Equity reached 7.98% of total assets in the 2Q2019, up from 7.71% 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 retail loan growth rose 21.5% to 19.7% in 2Q2019

By Helgi Analytics - November 05, 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...

Merchants Bank's customer loan growth rose 6.32% to 11.3% in 2Q2019

By Helgi Analytics - November 05, 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 net profit rose 14.8% to CNY 80,560 mil in 2018

By Helgi Analytics - November 05, 2019

China Merchants Bank made a net profit of CNY 80,560 mil under revenues of CNY 247,135 mil in 2018, up 14.8% and 12.3% respectively compared to the previous year. Historically, the bank’s net profit reached an all time high of CNY 80,560 mil in 2018 and an all time low o...

More News

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.

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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).