The following is a summary of the China Merchants Bank Co., Ltd. (CIHKY) Q4 2023 Earnings Call Transcript:
Financial Performance:
China Merchants Bank reported a net operating income of RMB9 billion, a decline of 1.64% year-on-year.
Net profit attributable to shareholders rose by 6.22%, totaling RMB146.6 billion.
Net interest income declined by 1.63% year-on-year, at RMB214.6 billion.
The total customer deposits increased by 8.22% compared to the previous year, reaching RMB8.16 trillion.
The bank's NPL ratio went up by 1.02% to 5.01%, while the special mentioned loan ratio decreased by 1.44% to 4.7%.
In 2023, corporate loan growth was 9%, retail loan growth was 8%, leading to an overall loan growth of 7-8%.
Business Progress:
The bank is strategizing to build a value bank, optimizing capital-heavy business and capital-light business, while enhancing work management and fintech capabilities.
The bank is focusing on enriching its digital finance strategies with AI at the core.
In 2024, China Merchants Bank's performance will be driven by strengths in wealth management, fintech, and risk management.
The bank has continued to strengthen its retail banking and is working towards developing other sectors to create new growth points.
Strategic focus is on managing risks associated with the real estate sector and maintaining the asset quality of the bank.
The bank aims to maintain stable growth and accelerate its investments in key regions like the Pearl River Delta, Bohai area, and high sea area.
Aiming to maintain the quality of its assets, the bank is leveraging AI to enhance its operational efficiency while transforming into a leading digital bank.
An organizational structure change with departments such as Inclusive Finance and Cross-border Finance has been put into place.
More details: CHINA MERCHANTS BK IR
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