On November 2, a financial news update reported that China Merchants Bank Co.,Ltd. (CM BANK) held its Third Quarter 2026 Results Exchange Meeting today. Peng Jiawen, Vice President and concurrently Head of Finance, stated that China Merchants Bank has always placed great importance on shareholder returns, striving to maximize investor benefits while satisfying the requirements of sustained healthy business development and capital adequacy. This has been the bank's consistent policy.
Peng Jiawen emphasized that dividends and returns are only one aspect. China Merchants Bank has long adhered to comprehensive coordination and balance, primarily achieving equilibrium among three elements, referred to as the "Tri-Element Balance": profit growth rate, capital adequacy ratio, and shareholder returns. These three factors influence and constrain one another, and it is not possible to simply maximize all of them at once; an optimal balance must be sought. The foremost consideration is to ensure that capital meets regulatory requirements, especially since capital is the cornerstone of bank operations. Satisfying core regulatory requirements is currently the top priority.
Peng Jiawen stated that the future market environment still faces significant uncertainty, and regulatory requirements will also face some changes going forward. Therefore, the bank has never dared to be complacent or claim that its capital adequacy ratio is sufficient and that it can rest easy. He expressed hope that investors and shareholders could fully understand this.
Peng Jiawen pointed out that on this basis, China Merchants Bank strives to emphasize continuously improving high-quality returns. The use of the term "high-quality" embodies three layers of meaning. First, a listed company should still maintain a relatively high level of dividend yield and payout ratio. Second, shareholder returns and dividend levels should be stable and sustainable, avoiding large fluctuations up and down, and forming stable expectations for investor returns. Third, shareholder dividends should be supported by endogenous capital, rather than raising dividends to the point where capital becomes insufficient and then asking shareholders for more money. Achieving these three characteristics constitutes high-quality returns. This is also the principle that China Merchants Bank has consistently strived to follow and uphold.
Peng Jiawen stated that in the future, China Merchants Bank will continue to build on prudent operations and industry-leading returns, striving to maximize shareholder value and seeking to achieve a virtuous cycle.
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