- China Merchants Bank’s net income for the fiscal year surpassed estimates, reaching 146.60 billion yuan over the projected 143.74 billion yuan.
- The bank’s net interest income was slightly below estimates, at 214.67 billion yuan compared to the predicted 215.68 billion yuan.
- The non-performing loans ratio was slightly higher than estimated, at 0.95% instead of the expected 0.94%.
- A final dividend per share of 1.972 yuan was declared.
- Net fee and commission income were slightly below estimates, at 84.11 billion yuan compared to the projected 84.78 billion yuan.
- The coverage ratio for non-performing loans was slightly lower than estimated, at 437.7% instead of the expected 440.9%.
- The net interest margin was slightly higher than estimated, at 2.15% compared to the expected 2.14%.
- The bank’s earnings per share (EPS) amounted to 5.63 yuan.
- The amount of non-performing loans was almost on par with estimates, at 61.58 billion yuan compared to the predicted 61.57 billion yuan.
- The core tier 1 ratio was slightly lower than estimated, at 13.7% instead of the expected 13.9%.
- The Tier 1 ratio met the estimate at 16%.
- The capital adequacy ratio was slightly higher than estimated, at 17.9% as opposed to the projected 17.8%.
- Net income increased by 6.22%.
- The bank received 21 buy ratings, 3 hold ratings, and 1 sell rating.
China Merchants Bank A on Smartkarma
China Merchants Bank A, a leading Chinese bank, has recently received positive analyst coverage on Smartkarma, an independent investment research network. According to Travis Lundy, a top independent analyst on the platform, mainland Connect NORTHBOUND flows have shown decent net buying for the bank, as well as other state-owned enterprises (SOEs). Lundy also notes that the National Team, a group of government-backed investors, has been actively buying shares of China Merchants Bank A, contributing to the positive sentiment. However, there has been selling in Petrochina, another state-owned company, but Lundy believes this is due to the National Team buying. The overall trend for China Merchants Bank A on Smartkarma is bullish, with strong activity and buying from both domestic and foreign investors.
A look at China Merchants Bank A Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 4.0 |
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
China Merchants Bank A has a promising long-term outlook, with a strong overall score of 4 out of 5 on the Smartkarma Smart Scores. This indicates that the company is performing well across various factors that contribute to its success.
The bank’s high scores in Value and Dividend reflect its strong financial performance and ability to provide good returns to its shareholders. Its Growth score of 4 also points towards the company’s potential for expansion and development in the future. However, China Merchants Bank A may face some challenges in terms of Resilience, with a score of 2, which indicates a need for caution in managing potential risks. Nonetheless, the company’s Momentum score of 4 suggests that it is on a steady path towards growth and success.
Overall, China Merchants Bank A is a well-established commercial bank that offers a wide range of services both domestically and internationally. With its strong performance and potential for growth, it is a promising investment for the long-term. Investors can be confident in the company’s ability to provide good value and returns, while also keeping an eye on potential risks and staying on track towards continued success.
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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