- China Merchants Bank reported a net income of 74.93 billion yuan, falling short of the estimated 82.99 billion yuan.
- Net interest income reached 106.09 billion yuan, slightly below the expected 107.05 billion yuan.
- The non-performing loans ratio was reported at 0.93%, performing better than the estimated 0.95%.
- Return on net assets stood at 13.9%.
- The bank’s net fee and commission income totaled 37.60 billion yuan.
- A strong coverage ratio for non-performing loans was recorded at 410.9%, above the estimated 402.4%.
- The net interest margin is reported at 1.88%.
- The bank’s non-performing loans amounted to 66.37 billion yuan, which is lower than the estimated 68.45 billion yuan.
- The core tier 1 ratio was reported at 14%, lower than the expected 14.6%.
- The capital adequacy ratio came in at 18.6%, missing the estimate of 19.1%.
- Market sentiment shows 23 buy ratings, 1 hold, and 2 sell recommendations.
A look at China Merchants Bank A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have assessed China Merchants Bank A using their Smart Scores system, revealing a positive long-term outlook for the company. With a top score of 5 in both Value and Dividend categories, China Merchants Bank A is viewed favorably in terms of its value proposition and dividend payouts. Additionally, the company received a solid score of 4 for Growth, indicating promising potential for future expansion. However, it received a score of 3 for Resilience, suggesting moderate resilience to economic downturns, and a score of 2 for Momentum, which may indicate a slower pace of stock price acceleration.
China Merchants Bank Co., Ltd., a commercial bank with a wide range of financial services, operates both domestically and internationally. Offering services such as deposits, loans, wealth management, and investment banking, China Merchants Bank caters to a diverse clientele. With impressive scores in Value and Dividend categories, coupled with opportunities for growth, the company showcases a solid foundation for long-term success in the banking sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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