On November 2, a financial frontline report stated that China Merchants Bank Co.,Ltd. (ASX: 600036) held its 2026 third-quarter results briefing today.
Regarding profit growth, Sun Zhihua, General Manager of the Financial Accounting Department, stated that the bank's net profit attributable to shareholders in the first three quarters achieved steady progress and showed a gradually improving trend. Pre-provision profit growth has outpaced revenue growth, reflecting continuous improvement in profitability; the growth rate of net profit attributable to shareholders being lower than revenue growth is mainly due to relatively adequate provisioning.
Sun Zhihua stated that provisioning was mainly driven by two factors. On one hand, credit asset growth, especially loan growth. In the first three quarters, loans increased by over 315.9 billion yuan compared to the beginning of the year, a year-on-year increase of 49.6 billion yuan. On the other hand, default risk in retail loans has risen somewhat, with the non-performing loan ratio and special mention ratio for personal loans and credit cards increasing compared to the previous year. Specifically, the corporate loan non-performing ratio decreased by 0.11 percentage points, the personal loan non-performing ratio increased by 0.09 percentage points, and the credit card non-performing ratio increased by 0.19 percentage points. However, since the first three quarters, marginal improvements in retail credit risk have been observed, with both the amount and ratio of non-performing mortgage loans declining, and both the overdue amount and ratio for credit cards also declining.
Overall, in the first three quarters, China Merchants Bank achieved steady profit growth, with return levels and asset quality continuing to lead, and indicators such as ROE, provision coverage ratio, and non-performing loan ratio performing well. Sun Zhihua pointed out that China Merchants Bank has always been committed to achieving high-quality profit growth and continuously creating higher returns for shareholders. This is reflected in several aspects: first, pursuing stable, balanced, and healthy revenue growth; second, continuously adhering to a prudent and稳健 risk culture, achieving profit growth that fully covers risks based on accurate asset classification and adequate risk provisioning; third, maintaining stable and relatively high shareholder returns.
Sun Zhihua stated that China Merchants Bank needs to balance the relationship between profit growth and quality, scale, and structure, continue to maintain its leading advantage in ROE and high dividends among peers, and achieve prudent, balanced, and steady growth in revenue and profit.
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