China Merchants Bank Announces 1H 2020 Results: Revenue Up 7%
The market considers the financials weaker than expectations as the share price decreased.
On August 31 China Merchants Banks released its financial result for the first half of 2020. The company posted a 7.10% increase in net operating income and a small decrease of 1.63% on net income, to the tune of CNY 148.16 billion and CNY 49.79 billion, respectively. The net interest income ran up by 3.97% to CNY 90.87 billion. At the end of June, China Merchants Bank reported non-performing debt of CNY 55.33 billion, with a non-performing loan ratio of 1.14%.
The tier-1 capital adequacy ratio and the total capital adequacy ratio posted 11.99% and 14.90%, with drops of 0.70% and 0.64% respectively, compared to the figures at the end of 2019.
China Merchants Bank, founded in 1987, is the first Chinese commercial bank that entirely held by the legal corporate entities. It went public in 2002 on the Shanghai bourse under 600036 and started trading on the Hong Kong Exchange in 2006, with the ticker of 4614.
After the financial performance was released, the company’s stock went down around 2%, which might reflect a certain disappointment in the market.