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China Merchants Bank 2016 retail profit accounted for more than half of the formation of bad loans slowed down

As the earliest force of retail banking, whether it is retail business income, or profit contribution, China Merchants Bank retail business is still Swordsman.

China Merchants Bank March 24 disclosure of the 2016 annual report shows that since 2014, the bank net interest income three years average compound growth rate of 25%, retail tax profits accounted for more than half, reaching more than 53%.

At the same time, China Merchants Bank's asset quality in 2016 is still under pressure. Last year, its bad loan balance reached 61.1 billion yuan, concerned about the impairment loss of 66.1 billion yuan, but the formation of non-performing loans has begun to decline.

Retail profits accounted for half of the country

Annual report data show that as of the end of 2016, China Merchants Bank Group caliber total assets of 5.94 trillion yuan, an increase of 8.54%. Deposit and loan balance of 3.8 trillion yuan, respectively, 3.26 trillion yuan, respectively, an increase of 6.45%, 15.49%. To achieve operating income of 20.925 billion yuan, an increase of 3.75%, net profit of 62.081 billion yuan, an increase of 7.6%.

As a commercial bank "retail king", China Merchants Bank retail business is still Swordsman. In 2016, the bank's retail loans accounted for 50.45% of the loans, of which individual housing loan balance increased by 229 billion yuan, credit card overdraft balance grew 95.9 billion yuan, accounting for 47.37% of retail loans, 26.89%.

At the same time, China Merchants Bank's contribution to the retail business has also increased significantly. In 2016, its retail sales net income of 97.9 billion yuan, accounting for 49.43% of net operating income, an increase of 2.4 percentage points, an increase of 8.43%, pre-tax profits reached 44 billion yuan, an increase of 23.8% Pre-tax profits accounted for 53.62%, an increase of 4.07 percentage points year on year.

In addition, China Merchants Bank retail customers and the balance of daily assets also continued to expand. As of the end of 2016, China Merchants Bank retail sales of 91.06 million, an increase of 19.32%; management of retail customers total assets of 5.5 trillion yuan, an increase of 780.9 billion yuan, an increase of 16.44%; retail customer deposits amounted to 1.19 trillion yuan, An increase of 5.54%.

For the banking industry competing for consumer finance, as of the end of 2016, China Merchants Bank consumer loan balance (excluding mortgages) reached 64.1 billion yuan. The establishment of only two years of the consumption of financial companies, has covered more than 7 million customers, the cumulative loan of 57.1 billion yuan.

On the public business, as of the end of 2016, China Merchants Bank deposit balance of 2.45 trillion yuan, up 6.92% over the previous year, of which demand deposits accounted for 57.98%, up 7.87 percentage points over the previous year.

China Merchants Bank also made progress in financial technology. As of the end of 2016, China Merchants Bank Bank, handheld life two major years of active users were 25.78 million and 30.21 million. Launched in November last year, Capricorn Chile vote, as intelligent investment benchmark, as of the end of the year, the average purchase amount of 36,900 yuan. In 2016, China Merchants Bank also joined the R3 block chain alliance, "super book" and other international block chain organization.

Non-interest income three years compound growth rate of 25%

It is worth mentioning that, in 2016, China Merchants Bank non-interest net did not reach 67.8 billion yuan, an increase of 15.54%. Between 2014 and 2016, its non-interest net income compounded growth rate of 25%.

As the focus of the Bank of China investment restructuring, large capital management, trading banking business, have a better performance. Annual report data show that China Merchants Bank 2016 at the end of the total number of cash management customers reached 1.1020 million, an increase of 33.45% over the previous year.

At the same time, investment banking business competitiveness is also significantly improved to achieve M & A financing 80.995 billion yuan, structured financing 32.695 billion yuan, equity investment and financing 12.85 billion yuan, non-interest income increased by 35.82%; managed assets exceeded 10 trillion yuan, Reaching 10.17 trillion yuan.

While asset management, the middle of the business for the Merchants Bank contributed a major increase in profits. According to the annual report, in 2016, the bank's private bank customers Mai 5,500, an increase of 21.47%; sales of personal financial products 7.6 trillion yuan, open-end fund sales 495.5 billion yuan, insurance premium 152.5 billion yuan, Product sales reached 132.2 billion yuan.

Data show that in 2016, China Merchants Bank retail wealth management fees and commission income of 18.849 billion yuan, an increase of 8.61%, accounting for retail net fee and commission income of 58.98%; credit card non-interest business income of 11.319 billion yuan.

"Bad" production rate decreased

In the case of continued exposure of bad assets in the banking sector, China Merchants Bank's asset quality has declined, but there have been signs of stabilization.

Annual report data show that as of the end of 2016, China Merchants Bank non-performing loan balance reached 61.121 billion yuan, an increase of 13.711 billion yuan over the previous year; non-performing loan ratio of 1.87%, 0.19 percentage points higher than the previous year.

Overdue loans, as of the end of 2016, China Merchants Bank overdue loans 69.8 billion yuan, down 10.4 billion yuan, accounting for 2.14%, down 0.7 percentage points; concern loans accounted for 2.09%, down 0.52 percentage points; Impairment losses amounted to $ 66,159 million, an increase of 11.63%.

In 2016, the Bank handled a total of 50.573 billion yuan of non-performing loans. Among them, the income of 9.277 billion yuan, 28.613 billion yuan to write off bad loans, through the bad asset securitization approach to deal with 5.915 billion yuan, the transfer of 43.63 billion yuan discount, through restructuring, relocation, debt relief, other ways to dispose of non-performing assets Billion yuan.

However, China Merchants Bank has been slow to generate bad loans signs. Annual report disclosure, 2016 year, China Merchants Bank accumulated new loans outstanding balance of 62.9 billion yuan, down 16.7 billion yuan over the previous year, a decrease of 20.98%; non-performing loan generation rate of 2.24%, down 1.02 percentage points over the previous year.

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