CIHHF - China Merchants Bank Co. Ltd. (CIHKY) Q4 2023 Earnings Call Transcript

2024-03-27 06:42:09 ET

China Merchants Bank Co., Ltd. (CIHKY)

Q4 2023 Earnings Conference Call

March 26, 2024 09:30 PM ET

Company Participants

Xia Yangfang - CMB Securities Affair Representative

MIAO Jianmin - Chairman

Wang Liang - President and Chief Executive Officer

Zhu Jiangtao - Executive Vice President and Chief Risk Officer

Peng Jiawen - Executive Vice President and Chief Financial Officer

Conference Call Participants

Yan May - UBS

Shuaishuai Zhang - CICC

Katherine Lei - JPMorgan

Ran Xu - Morgan Stanley

Kunpeng Ma - China Securities

Wang Xianxuang - Guangfa Securities

Feifei Xiao - Citic Securities

Juan Shen - Huatai Securities

Gary Lam - HSBC

Presentation

Xia Yangfang

Dear Investors, analysts, friends from the media, good morning. CMB 2023 Annual Result Announcement will now begin. I am CMB Securities Affair Representative, Head of the Office of the Board of Director, Xia Yangfang. Today, our result announcement will be presented both on-site and online live streaming. On behalf of China Merchants Bank, I'd like to extend warm welcome to your participation and thank you for your long support and investment in CMB.

Now I would like to introduce our attendee. They are Chairman, Mr. MIAO Jianmin; President and CEO, Mr. Wang Liang; Executive Vice President and Chief Risk Officer, Mr. Zhu Jiangtao; Executive Vice President, CFO, Secretary of the Board of Director, Mr. Peng Jiawen. We also have online and offline participants, Mr. Li Menggang; and Mr. Tian Hongqi, Independent Director, and also relevant Department Heads from CMB.

There are two sessions of today's meeting. The first session will be given by Chairman MIAO and President Wang on the 2023 performance overview, taking around 30 minutes. The second session is the Q&A session takes around one hour and thirty minutes. The meeting will be concluded in 11:30 AM. The meeting will be provided with simultaneous interpretation from Chinese to English.

Now I will give the floor to Chairman MIAO and President Wang on CMB 2023 performance.

MIAO Jianmin

Dear Investors, analysts, friends from the media, good morning. Welcome to China Merchants Bank 2023 annual result announcement. Today's performance presentation will be including three parts. First, I will introduce the company's 2023 performance overview, and then President Wang will introduce the detailed operational information. And then I will briefly introduce our outlook and strategies to 2024.

In 2023, the Group has taken to build a value creation bank as our strategic goal, make a steady development with progress, strengthen and optimize capital-heavy business, optimize and enlarge capital-light business, enhanced work management, Fintech and risk management three capabilities and achieve the quality, profitability and scale dynamically balanced development reflected in the following six aspects.

Firstly, we actively and effectively respond to challenges in line with our operational performances. Phases with loan rate cuts, narrowing name fee cut, sluggish capital requirement and insufficient credit demand and complicated risk conditions and other unfavorable factors we take active measures to maintain a stable operational performance. Net operating income 333 – RMB9 billion, down by 1.64% year-on-year. Net profit attributable to banks shareholder RMB146.6 billion, year-on-year increase of 6.22%, ROAA was 1.39%, ROAE was 16.22%, representing year-on-year decrease of 0.03 percentage point, 0.84 percentage point, respectively.

We make strict control on cost influenced by the decreasing revenue, our cost-to-income ratio was 32.97%, a slight increase of 0.08 percentage point. Our net interest income was RMB214.6 billion, year-on-year decrease of 1.63%. Although we are influenced by the continuous narrowing interest rate spread and also the structural change of our low-end and deposit structure, our NIM was 2.15%, year-on-year decrease of 25 bps, but still maintain a good level. Influenced by the fluctuated capital market and the enhanced fee rate cut, our non-interest income decreased slightly, our non-interest net income was RMB124.4 billion, went down by 1.66% year-on-year....

For further details see: