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Merchants Bank

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									Merchants Bank
China Merchants Bank (600036) The assets and liabilities structure, in the case of
non-performance of a rate cut is superior, in the case of the performance of interest
rate superior than others.
--- Merchants Bank president Ma Weihua
Demand deposits, accounting for a higher retail business accounting for a larger loan
and note, this particular structure of assets and liabilities to China Merchants Bank
(600036) on particularly sensitive to interest rate differential response. In the central
bank cut interest rates several times after 2008, China Merchants Bank's
2009 Annual Report will naturally not good to see.
   China Merchants Bank yesterday announced the 2009 annual report, the bank net
profit was 18.235 billion yuan last year, down 13.48 percent, China Merchants Bank
announced last year this has become the performance of listed banks, the only
negative growth in net profit.
Although the CMB last year's results back, but yesterday's
performance at the meeting, China Merchants Bank chairman Qin Xiao, China
Merchants Bank Ma Weihua told, including this newspaper, including reporter, were
on this year's performance full of confidence, Ma Weihua said,
"China Merchants Bank's balance table structure, in the interest
rate situation, performance will be superior. "released the same day, a
quarterly newsletter Merchants Bank also showed that a quarter of China Merchants
Bank net profit of 59 billion yuan, up 40.21 percent.
Increase interest rates to be superior than others
Reporter: Last year, China Merchants Bank down performance, but there are still
many banks to achieve a performance increase, will the CMB, and where they are
different? It will change the future?
Ma Weihua: Our net profit last year fell by 13.5%, we think they are better than we
had expected. Mainly Merchants Bank's balance sheet structure differ from
other banks, in our debt structure more in demand deposits of proportion, with the
company last year with retail up 55% of demand deposits. But in the asset structure li,
the proportion of our retail loan structure more than 30%, the structure of assets and
liabilities that are not cut interest rates in the case of a smooth performance is
excellent, especially in the circumstances the increase Xi Bi others superior, because
of so, in the past five consecutive years of net profit growth of more than 50%.
But the second half of 08 5 cut, you noted that cut (the asymmetry), demand deposits
did not drop the basic interest rate, deposit rates dropped substantially and retail
lending rates (mainly mortgages) has been playing 7 Fold, this is our last
year's interest income decreased influence the main reason for the profit
decline.
However, last year's third quarter net interest margin to continue to
improve, but month by month for the better, I noticed from last year's Q3
to Q4, the net interest margin rose 20 basis points in the first quarter of this year (net
interest margin) is already 2.56%, this change on the CMB is a very good profit.
Reporter: China Merchants Bank forecast for annual earnings growth is what? Can
not return to the previous growth rate, which you have confidence? The first quarter
of this year's profit growth impetus came mainly from? Whether the future
interest rate differentials to improve sustainability?
Qin Xiao: the first quarter of 2010 and first quarter of 2009 compared to net profit
increased by 40%, while the 2009 first quarter was not the worst of times, in 2009
second quarter was the worst. Chain point of view, from the 2009 third quarter of
sequential growth, analysis of information there that you also may be broadly range
(forecast) and, of course, the end result also depends on the uncertainty of changes in
macroeconomic factors, overall I was quite optimistic of. The current profit structure
is mainly concerned with the net interest margin, the first quarter of this year is the net
interest yield 2.56 percent, in March is more than 2.56% of this is the first major
source of growth. Of course, other business and economic recovery after the launch
(and related), including some retail business and capital market hedging, and
prosperity are involved. Views on interest rate differentials we are cautiously
optimistic that will continue to rise slowly, it is not considering raising interest rates,
and if considered raising interest rates, the increase will be greater.
Improve the retail business on the profit contribution
Reporter: retail banking business as the important business of the CMB, the CMB in
this second transition, the retail business will play what role, probably will be divided
into how many phases? Milestones you expect What? How to use this platform to
good Wing Lung Bank Retail Banking This is a development?
Ma Weihua: Our 6 years ago, "the retail business is the development of
China Merchants Bank's top priority," the last few years we go
all out to accelerate the growth of retail business, in six or seven years ago,
China's retail business basic or blank, so In recent years we have taken
many measures to make the retail business is growing faster, especially in the last year,
the retail loan share for the first time that year than the year the share of wholesale
loans.
Our second aim is to improve efficiency in transition, but there are a prerequisite, our
retail business is not any change of strategic direction, will continue to support, but
will focus on improving Lingshou pairs of the contribution of the profits, improve
Lingshou products become abundant Xing, Shi channels more smooth, a very
important point of which is wealth management, the current needs of the community
is very strong, we have to make the retail wealth management business more
competitive.
Wing Lung Bank and we are separated from one sector, Hong Kong is a relatively
complete market structure, but we have an advantage in China Merchants Bank, the
mainland, many retail high-end customers are in Hong Kong have business needs, and
our many customers also want to to the mainland to conduct business, so we are
between the Wing Lung Bank and China Merchants Bank's retail business
has a huge space for development, including the Golden Sunflower, financial
management, including credit card, both sides have, in fact, have achieved initial
success in the past year, I would like to synergies in the future more and more broad,
in-depth to show it.
Reporter: Provision coverage really need so high?
Ma Weihua: Provision has been a problem we need to research, portfolio provisions
are calculated according to historical records, there is a fixed statistical model, special
provision is based on the case, as we do on the possible loss of the discount terms
(must out), the problem mainly in combination provision, in fact, the combination of
the first quarter provision for more than 250%, if you want to adjust, is to carefully
read the argument, and methodology must be consistent and also a one-time transfer,
not on an annual basis earnings and casual tone, this is not the policy of our bank.
Writer: Hu Jing Source: Southern Metropolis Daily】

								
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