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China Merchants Bank (600036): Performance Express

Results Preview Results Express 1H19 profit year-on-year growth of 13.

1% China Merchants Bank announces 1H19 earnings report: 1H19 net profit attributable to mothers further increased by 13.

1%, 19Q2 single-quarter growth of 14.

9%; 1H19 revenue increased 9 in ten years.

7%, a single quarter increase of 7 in the second quarter of 19.

5%, the performance is in line with our expectations.

  Points to note A number of surprises are the significant improvement in the NPL indicator.

At the end of the second quarter of 19, China Merchants Bank’s non-performing ratio decreased significantly by 11bp to 1 from the previous quarter.

24%, 10 consecutive quarters of decline since 2016 (bad repeat at the end of 2016 1.


We expect bank bad debts to be written off and disposed of at the same time, while bad new generation will remain low, so the NPL indicator continues to improve.

  The single quarter revenue growth rate in the second quarter of 19 fluctuated slightly from the previous quarter, in line with the market and our expectations.

In general, the loose monetary policy from the capital market price to the credit market caused small fluctuations in interest margins. This is a common feature of the industry. The market has fully expected that the calculated net interest margin of our calculations fell 4bp to 2 from the previous quarter.


At the same time, the ten-year growth rate of non-interest income 佛山桑拿网 was 8 in 1Q19.

1% formaldehyde to -0.

3%, or the performance of the capital market in the second quarter is inferior to the first quarter, and details will be disclosed in the interim report.

  The scale growth speeded up slightly.

At the end of the second quarter of 19, total assets / loans / deposits increased by 10 year-on-year.

0% / 11.

5% / 10.

4%, the growth rate of 8 at the end of 1Q19.

7% / 11.

0% / 9.

A slight increase of 5%.

At the end of the second quarter of 19, total assets / loans / deposits increased by 6 compared with the earlier period.

6% / 9.

9% / 6.

8%, an increase of 5 from the end of the previous quarter.

9% / 4.

8% / 5.


  Estimates and recommendations Maintain earnings forecast with A / H target price of 45.

2 RMB (2.

0x 2019e P / B, 24% growth space) and 51.
3 Hong 厦门夜网 Kong dollars (2.

0x 2019e P / B, 30% increase in space).

China Merchants Bank A / H is currently trading at 1.

54x 2019e P / B. Considering the continuous improvement of asset quality and stable profit performance, it can support current estimates and maintain the A / H outperform industry rating.

  Risk macro fluctuations exceeded expectations and asset quality was below expectations.