China Merchants Bank (3968) Q1 2026 earnings summary

Executive summary

• Achieved stable growth in Q1 2026 with revenue of RMB 86.94 billion, up 3.81% year-over-year, and net profit attributable to shareholders of RMB 37.85 billion, up 1.52%.

• Total assets reached RMB 13.48 trillion, up 3.17% from year-end 2025; loans and advances grew 2.84%.

• Asset quality remained stable with a non-performing loan (NPL) ratio of 0.94%, unchanged from year-end.

• Allowance coverage ratio at 387.76%, allowance-to-loan ratio at 3.63%.

Financial highlights

• Net interest income was RMB 55.64 billion, up 4.99% year-over-year; net fee and commission income was RMB 20.66 billion, up 4.87%.

• Non-interest net income reached RMB 31.31 billion, up 1.87%.

• Cost-to-income ratio improved to 28.46%, down 0.19 percentage points year-over-year.

• Credit impairment losses increased 15.65% to RMB 14.85 billion.

• Operating cash flow was RMB 125.85 billion, up 32.44% year-over-year.

Outlook and guidance

• Will continue to focus on high-quality growth, risk management, and supporting real economy, especially in real estate and retail sectors.

• Plans to strengthen asset quality controls and maintain stable capital adequacy.

• Will closely monitor retail and credit card risks and maintain strict classification and disposal of non-performing assets.