China Merchant Bank's 1Q15 earnings jump 15.2% YoY to RMB17.2b

Robust interest partly drives solid bottom-line growth.

China Merchants Bank’s (CMB) 1Q15 earnings were up 15.2% YoY to RMB17.2b.

According to a research note from CCB International, further, PPOP growth of 30.3% was driven by improving NIM (up 14bp YoY to 2.9%).

It was driven by improving NIM on a rise in low-cost retail deposits, a decline in interbank funding costs, and robust fee income (49.2% YoY) from WMP and agency sales services.

Further, succumbing to intense NPL pressure, credit cost rose 68bp YoY and 42bp QoQ to 198bp in 1Q15. CMB’s NPL ratio was up 13bp QoQ in 1Q15 versus 28bp YoY in 2014.

Here's more from CCB International:

Interbank business resumes growth with conservative provisioning in place.

CMB reduced non-standard asset investments in 2H14 to comply with the PBoC’s Circular 127.

In 1Q15, investments in non-standard assets grew 33% QoQ to RMB485b or 10% of total assets.

However, CMB has adopted a conservative provisioning strategy for these assets.

As a precaution, CMB increased provisioning to the relatively high level of 1.47% in 1Q15, up 4bp QoQ.

Also Read

Bangkok Bank logs net profit of $1.05b for 9M 2024

Banks face value creation challenge despite record revenues

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit