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1、Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement,make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in relian
2、ce upon the whole or any part of the contents of this announcement.招 商 銀 行 股 份 有 限 公 司CHINA MERCHANTS BANK CO.,LTD.(H Share Stock Code:03968)FIRST QUARTERLY REPORT OF 2023The financial information set out in this quarterly report is unaudited and prepared in accordance with the International Financi
3、al Reporting Standards.This announcement is made by the Company pursuant to Rule 13.09 and Rule 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance(Chapter 571
4、,Laws of Hong Kong).1 Important NoticeChina Merchants BankFirst Quarterly Report of 2023(H Share)2The Board of Directors,the Board of Supervisors,Directors,Supervisors and senior management of the Company confirm that the contents in this report are true,accurate,and complete and have no false repre
5、sentations,misleading statements or material omissions,and they will individually and collectively accept legal responsibility for such contents.Miao Jianmin,Chairman of the Board of Directors of the Company,Wang Liang,President,Chief Executive Officer and Secretary of the Board of Directors,Peng Ji
6、awen,Executive Assistant President and Chief Financial Officer and Li Li,the person in charge of the Finance and Accounting Department,hereby make representations in respect of the truthfulness,accuracy and completeness of the financial statements in this report.The 16th meeting of the Twelfth Sessi
7、on of the Board of Directors and the 12th meeting of the Twelfth Session of the Board of Supervisors of the Company had reviewed and unanimously approved the first quarterly report of 2023 of the Company,respectively.All financial statements set out in this report are prepared in accordance with the
8、 International Financial Reporting Standards and are unaudited.The unaudited quarterly report prepared by the Company in accordance with the PRC Accounting Standards has been published on the website of Shanghai Stock Exchange.Unless otherwise stated,all monetary sums stated in this report are expre
9、ssed in RMB.In the event of any discrepancies in interpretation between the English and Chinese versions,the Chinese version shall prevail.“China Merchants Bank”,“the Company”and“the Bank”mentioned in this report refer to China Merchants Bank Co.,Ltd.;“the Group”refers to China Merchants Bank and it
10、s subsidiaries;“CMB Wing Lung Bank”refers to CMB Wing Lung Bank Limited;“CMB Financial Leasing”refers to CMB Financial Leasing Co.,Ltd.;“CMB International Capital”refers to CMB International Capital Holdings Corporation Limited;“CMB Wealth Management”refers to CMB Wealth Management Company Limited;“
11、China Merchants Fund”refers to China Merchants Fund Management Co.,Ltd.;“CIGNA&CMAM”refers to CIGNA&CMB Asset Management Company Limited;and“CMB Europe S.A.”refers to China Merchants Bank(Europe)Co.,Ltd.We have included in this report certain forward-looking statements with respect to the financial
12、position,operating results and business development of the Group.We use words such as“will”,“may”,“expect”,“try”,“strive”,“plan”,“anticipate”,“aim at”,and similar expressions in this report to indicate forward-looking statements.These statements are based on current plans,estimates and projections.A
13、lthough the Group believes that the expectations reflected in these forward-looking statements are reasonable,the Group gives no assurance that these expectations will turn into reality or prove to be correct.Therefore,they should not be deemed as the Groups commitments.Investors should not place un
14、due reliance on such statements and should pay attention to investment risks.You are cautioned that such forward-looking statements are related to future events or future financial position,business,or other performances of the Group,and are subject to a number of uncertainties which may cause subst
15、antial differences from those in the actual results.2 Major Financial Data3China Merchants BankFirst Quarterly Report of 2023(H Share)2.1 Major accounting data and financial indicators of the Group(in millions of RMB,unless otherwise stated)At the end of the reporting period 31 March 2023At the end
16、of last year 31 December 2022Increase/decrease at the end of the reporting period as compared to the end of last year(%)Total assets10,508,75210,138,9123.65Equity attributable to shareholders of the Bank981,087945,5033.76Net assets per share attributable to ordinary shareholders of the Bank(in RMB Y
17、uan)(1)34.1332.714.34 (in millions of RMB,unless otherwise stated)January to March 2023January to March 2022Increase/decrease as compared to the corresponding period of last year(%)Net operating income90,62591,999-1.49Net profit attributable to shareholders of the Bank38,83936,0227.82Basic earnings
18、per share attributable to ordinary shareholders of the Bank(in RMB Yuan)(1)1.541.437.69Diluted earnings per share attributable to ordinary shareholders of the Bank(in RMB Yuan)(1)1.541.437.69Annualised weighted average return on net assets attributable to ordinary shareholders of the Bank(%)(1)18.43
19、19.24Decrease of 0.81 percentage pointNet cash generated from operating activities(2)(12,618)5,551N/A Notes:(1)Such indicators are calculated in accordance with the Rules for the Compilation and Submission of Information Disclosure by Companies Offering Securities to the Public No.9Calculation and D
20、isclosure of Return on Net Assets and Earnings per Share.The Company issued non-cumulative preference shares in 2017 and perpetual bonds in 2020 and 2021,both of which are classified as other equity instruments.The Company did not distribute dividends on preferred shares or interests on perpetual bo
21、nds in the first quarter of 2023.Therefore,when calculating basic and diluted earnings per share attributable to ordinary shareholders of the Bank,return on average equity,net assets per share and other indicators,no dividend on preference shares or interest on perpetual bonds were involved to be de
22、ducted from“net profit attributable to shareholders of the Bank”,while preference shares and perpetual bonds were deducted from both the“average equity”and the“net assets”.(2)The decrease in the net cash generated from operating activities was mainly due to the year-on-year decrease in cash inflow o
23、f deposits from customers.2.2 Explanation on the differences between the financial statements prepared in accordance with the PRC Accounting Standards and the International Financial Reporting StandardsIn the financial statements prepared by the Group in accordance with the PRC Accounting Standards
24、and the International Financial Reporting Standards,there has been no difference in the net profit attributable to shareholders of the Bank for the reporting period ended 31 March 2023 and the equity attributable to shareholders of the Bank as at the end of the reporting period.3 Information on Shar
25、eholders4China Merchants BankFirst Quarterly Report of 2023(H Share)3.1 Information on the shareholders of ordinary sharesAs at the end of the reporting period,the holders of ordinary shares of the Company are in a total of 624,706,including 595,628 holders of A Shares and 29,078 holders of H Shares
26、.Neither the holders of A Shares nor the holders of H Shares are subject to restrictions on sales.As at the end of the reporting period,the top 10 ordinary shareholders and the top 10 ordinary shareholders whose shareholdings are not subject to restrictions on sales of the Company were as follows.No
27、.Name of shareholderType of shareholderShares held at the end of the period Percentage of the total share capitalType of sharesChanges as compared to the end of last year Shares subject to restrictions on sales Shares pledged,marked or frozen(share)(%)(share)(share)(share)1HKSCC Nominees Ltd.Offshor
28、e legal person4,553,855,04818.06H Shares not subject to restrictions on sales598,125Unknown2China Merchants Steam Navigation Co.,Ltd.State-owned legal person3,289,470,33713.04A Shares not subject to restrictions on sales3Hong Kong Securities Clearing Company LimitedOffshore legal person1,590,122,316
29、6.31A Shares not subject to restrictions on sales83,331,1304China Ocean Shipping Company LimitedState-owned legal person1,574,729,1116.24A Shares not subject to restrictions on sales5Shenzhen Yan Qing Investment and Development Company Ltd.State-owned legal person1,258,542,3494.99A Shares not subjec
30、t to restrictions on sales6China Merchants Financial Holdings Co.,Ltd.State-owned legal person1,147,377,4154.55A Shares not subject to restrictions on sales7Hexie Health Insurance Co.,Ltd.Traditional-Ordinary insurance productsDomestic legal person1,130,991,5374.48A Shares not subject to restriction
31、s on sales8Shenzhen Chu Yuan Investment and Development Company Ltd.State-owned legal person944,013,1713.74A Shares not subject to restrictions on sales9Dajia Life Insurance Co.,Ltd.Universal productsDomestic legal person776,574,7353.08A Shares not subject to restrictions on sales-28,333,10010COSCO
32、Shipping(Guangzhou)Co.,Ltd.State-owned legal person696,450,2142.76A Shares not subject to restrictions on sales Notes:(1)Shares held by HKSCC Nominees Ltd.are the total shares in the accounts of holders of H Shares of the Company trading on the transaction platform of HKSCC Nominees Ltd.Hong Kong Se
33、curities Clearing Company Ltd.is an institution designated by others to hold shares on behalf of them as a nominal holder,and the shares held by it are the A shares of China Merchants Bank acquired by investors through Shanghai-Hong Kong Stock Connect.(2)As at the end of the reporting period,of the
34、aforesaid top 10 shareholders,HKSCC Nominees Ltd.is a subsidiary of Hong Kong Securities Clearing Company Ltd.;China Merchants Steam Navigation Co.,Ltd.,Shenzhen Yan Qing Investment and Development Company Ltd.,China Merchants Financial Holdings Co.,Ltd.and Shenzhen Chu Yuan Investment and Developme
35、nt Company Ltd.are all subsidiaries of China Merchants Group Ltd.;China Ocean Shipping Company Limited and COSCO Shipping(Guangzhou)Co.,Ltd.are both subsidiaries of China COSCO Shipping Corporation Limited.The Company is not aware of any affiliated relationships or action in concert among other shar
36、eholders.(3)The above shareholders of A shares did not hold the shares of the Company through credit securities accounts,neither were there cases of proxy,trustee nor waiver of voting rights.5China Merchants BankFirst Quarterly Report of 2023(H Share)3.2 Information on the shareholders of preference
37、 sharesAs at the end of the reporting period,the Company had a total of 16 holders of preference shares,all of whom were holders of domestic preference shares.During the period from January to March 2023,the Company did not restore any voting right of the preference shares.As at the end of the repor
38、ting period,the Company had no holder of preference shares with voting right restored.As at the end of the reporting period,the shareholdings of the top 10 holders of domestic preference shares of the Company were as follows.No.Name of shareholderType of shareholderType of sharesShares held at the e
39、nd of the period Percentage of shareholding Changes as compared to the end of last year Shares subject to restrictions on sales Shares pledged,marked or frozen(share)(%)(share)(share)(share)1China Mobile Communications Group Co.,Ltd.State-owned legal personDomestic preference shares106,000,00038.552
40、CCB Capital “Qianyuan Private”(乾元私享),an open private banking RMB wealth management product (daily calculated)of China Construction Bank Anxin Private(安鑫私享)No.2 Special Asset Management Scheme of CCB CapitalOthersDomestic preference shares40,000,00014.553BOC Asset Bank of China Bank of China Limited,
41、Shenzhen BranchOthersDomestic preference shares25,000,0009.094China National Tobacco(Henan Province)CompanyState-owned legal personDomestic preference shares20,000,0007.27Ping An Property&Casualty Insurance Company of China,Ltd.Traditional Ordinary insurance productsOthersDomestic preference shares2
42、0,000,0007.276China National Tobacco(Anhui Province)CompanyState-owned legal personDomestic preference shares15,000,0005.45China National Tobacco(Sichuan Province)CompanyState-owned legal personDomestic preference shares15,000,0005.458Everbright Securities Asset Management China Everbright Bank Xiny
43、ou (鑫優)No.2 Collective Asset Management Scheme of Everbright Securities Asset ManagementOthersDomestic preference shares9,000,0003.279Everbright Securities Asset Management China Everbright Bank Xinyou(鑫優)Collective Asset Management Scheme of Everbright Securities Asset ManagementOthersDomestic pref
44、erence shares7,200,0002.6210Changjiang Pension Insurance Bank of China China Pacific Life Insurance Co.,Ltd.OthersDomestic preference shares5,000,0001.82China National Tobacco(Liaoning Province)CompanyState-owned legal personDomestic preference shares5,000,0001.82 6China Merchants BankFirst Quarterl
45、y Report of 2023(H Share)Notes:(1)The shareholdings of holders of domestic preference shares are listed by single account based on the information presented in the register of holders of preference shares maintained by the Company.(2)China National Tobacco(Henan Province)Company,China National Tobac
46、co(Anhui Province)Company,China National Tobacco(Sichuan Province)Company and China National Tobacco(Liaoning Province)Company are all subsidiaries of China National Tobacco Corporation.“Everbright Securities Asset Management China Everbright Bank Xinyou(鑫優)No.2 Collective Asset Management Scheme of
47、 Everbright Securities Asset Management”and“Everbright Securities Asset Management China Everbright Bank Xinyou(鑫優)Collective Asset Management Scheme of Everbright Securities Asset Management”are both managed by Everbright Securities Asset Management Co.Ltd.Save for the above,the Company is not awar
48、e of any affiliated relationship or action in concert among the above holders of preference shares or between the above holders of preference shares and the Companys top 10 holders of ordinary shares.(3)“Percentage of shareholdings”represents the percentage of the number of domestic preference share
49、s held by the holders of preference shares to the total number of domestic preference shares.4 Management Discussion and Analysis7China Merchants BankFirst Quarterly Report of 2023(H Share)4.1 Analysis of overall operationTaking“building a value creation bank”as its strategic objective and adhering
50、to the philosophy of achieving dynamically balanced development of“Quality,Efficiency and Scale”,CMB carried out various businesses in a sound manner during the reporting period,whereby the scale of assets and liabilities and net profit have grown steadily,and the asset quality has been generally st
51、able.From January to March 2023,the Group realised a net operating income of RMB90.625 billion,representing a year-on-year decrease of 1.49%;a net profit attributable to the shareholders of the Bank of RMB38.839 billion,representing a year-on-year increase of 7.82%;a net interest income of RMB55.409
52、 billion,representing a year-on-year increase of 1.74%;and a net non-interest income of RMB35.216 billion,representing a year-on-year decrease of 6.18%.The annualised return on average asset(ROAA)attributable to shareholders of the Bank and annualised return on average equity(ROAE)attributable to or
53、dinary shareholders of the Bank was 1.50%and 18.43%,respectively,representing a year-on-year decrease of 0.04 percentage point and a year-on-year decrease of 0.81 percentage point,respectively.As at the end of the reporting period,the Groups total assets amounted to RMB10,508.752 billion,representin
54、g an increase of 3.65%as compared with the end of the previous year.The total loans and advances to customers amounted to RMB6,335.975 billion,representing an increase of 4.70%as compared with the end of the previous year.Total liabilities amounted to RMB9,518.990 billion,representing an increase of
55、 3.64%as compared with the end of the previous year.Total deposits from customers amounted to RMB7,771.878 billion,representing an increase of 3.13%as compared with the end of the previous year(the amounts of deposits,loans and financial investments in the section headed“Management Discussion and An
56、alysis”of this report exclude interest receivable or payable).As at the end of the reporting period,the Groups non-performing loans amounted to RMB60.302 billion,representing an increase of RMB2.298 billion as compared with the end of the previous year.The non-performing loan ratio was 0.95%,down by
57、 0.01 percentage point as compared with the end of the previous year.The allowance coverage ratio was 448.32%,representing a decrease of 2.47 percentage points as compared with the end of the previous year.The allowance-to-loan ratio was 4.27%,representing a decrease of 0.05 percentage point as comp
58、ared with the end of the previous year.8China Merchants BankFirst Quarterly Report of 2023(H Share)4.2 Analysis of statement of profit or lossNet interest incomeFrom January to March 2023,the Groups net interest income amounted to RMB55.409 billion,representing a year-on-year increase of 1.74%and ac
59、counting for 61.14%of net operating income.From January to March 2023,the net interest spread and the net interest margin of the Group were 2.18%and 2.29%respectively,representing a respective year-on-year decrease of 21 and 22 basis points,and both down by 8 basis points as compared with the previo
60、us quarter.Affected by the repeated cuts of Loan Prime Rates(LPR)in 2022 and the downward movement of market interest rates,existing loans were repriced and the yield on new businesses declined,leading to a decrease in the yield on interest-earning assets.In addition,the rising costs for deposits fr
61、om customers have pushed up the costs of interest-bearing liabilities.However,the Group has been optimising the structure of interest-earning assets and interest-bearing liabilities,which has partially offset the impact arising from the narrowed interest spread to some extent.The GroupJanuary to Mar
62、ch 2023January to March 2022 (in millions of RMB,except for percentages)Average balanceInterest incomeAnnualised average yield(%)Average balanceInterest incomeAnnualised average yield(%)Interest-earning assetsLoans and advances to customers6,183,21567,2794.415,682,61265,6004.68Financial investments2
63、,421,33919,5293.271,872,11815,1583.28Balances with the central bank579,9222,3571.65566,8121,9761.41Balances and placements with banks and other financial institutions616,0654,1792.75683,2563,5522.11 9,800,541 Total9,800,54193,3443.868,804,79886,2863.97 (in millions of RMB,except for percentages)Aver
64、age balanceInterest expenseAnnualised average cost ratio(%)Average balanceInterest expenseAnnualised average cost ratio(%)Interest-bearing liabilitiesDeposits from customers7,735,11030,2881.596,595,67323,8101.46Deposits and placements from banks and other financial institutions975,1234,7311.971,000,
65、0054,0751.65Debt securities issued244,7071,8533.07422,4073,0292.91Borrowings from the central bank178,5869322.12131,8557682.36Lease liabilities12,9311314.1114,0751404.03 Total9,146,45737,9351.688,164,01531,8221.58 Net interest income55,40954,464Net interest spread2.182.39Net interest margin2.292.51
66、9China Merchants BankFirst Quarterly Report of 2023(H Share)Net non-interest incomeFrom January to March 2023,the Group recorded a net non-interest income of RMB35.216 billion,representing a year-on-year decrease of 6.18%and accounting for 38.86%of net operating income.The year-on-year decrease in n
67、et non-interest income was mainly due to the drop in risk appetite and weak investment willingness of customers,which resulted in a decrease in fee and commission income.Among the net non-interest income,net fee and commission income amounted to RMB25.079 billion,representing a year-on-year decrease
68、 of 12.60%;other net non-interest income amounted to RMB10.137 billion,representing a year-on-year increase of 14.67%,which was mainly due to the increase in investment income from bonds and funds.Among the Groups net fee and commission income,from the perspective of major items:Fee and commission i
69、ncome from wealth management amounted to RMB9.110 billion,representing a year-on-year1 decrease of 13.25%,due to the low investment sentiment of customers,of which,income from agency distribution of insurance policies amounted to RMB5.076 billion,income from agency distribution of funds amounted to
70、RMB1.524 billion,income from agency sales of wealth management products amounted to RMB1.351 billion2,income from agency distribution of trust schemes amounted to RMB862 million,income from securities brokerage amounted to RMB215 million.Fee and commission income from asset management amounted to RM
71、B3.335 billion3,representing a year-on-year increase of 2.65%,mainly attributable to the increase in management fee income from its subsidiary CMB International Capital.Commission income from custody businesses amounted to RMB1.444 billion,representing a year-on-year decrease of 11.57%,mainly due to
72、 the decrease in the assets under custody from equity funds and the wealth management products of banks.Income from bank card fees amounted to RMB5.249 billion,representing a year-on-year decrease of 6.15%.Income from settlement and clearing fees amounted to RMB3.829 billion,representing a year-on-y
73、ear decrease of 14.21%.1 Since the 2022 interim report,the Group has optimised the disclosure calibre of breakdown of fee and commission income,and adjusted the comparative data for the first quarter of 2022 with the same calibre.2 Income from agency sales of wealth management products is the income
74、 in relation to sale services from the sales of wealth management products of the Group.3 Fee and commission income from asset management mainly include the income from the issuance and management of various asset management products such as funds,wealth management and asset management plans of Chin
75、a Merchants Fund,CMB International Capital,CMB Wealth Management and CIGNA&CMAM,all being subsidiaries of the Company.10China Merchants BankFirst Quarterly Report of 2023(H Share)Operating expensesFrom January to March 2023,the Groups operating expenses amounted to RMB27.323 billion,representing a y
76、ear-on-year increase of 4.65%,among which staff costs amounted to RMB17.593 billion,increased by 2.92%as compared with the corresponding period of the previous year and other operating expenses amounted to RMB9.730 billion4,increased by 7.93%as compared with the corresponding period of the previous
77、year.The increase in operating expenses was mainly because the Group maintained input in Fintech development,continuously consolidated the technology foundation,maintained input in digital infrastructure construction and R&D personnel,and accelerated the pace of digital transformation.The Groups cos
78、t-to-income ratio was 27.59%,representing an increase of 1.49 percentage points as compared with the corresponding period of the previous year.Expected credit lossesFrom January to March 2023,the Groups expected credit losses amounted to RMB16.421 billion,representing a year-on-year decrease of 23.7
79、0%.Specifically,expected credit losses of loans and advances to customers amounted to RMB16.550 billion,representing a year-on-year increase of RMB5.490 billion,which was mainly due to the increase in allowances for loan losses as a result of the higher growth in loans in the first quarter as compar
80、ed with the same period of the previous year.The total expected credit losses of other types of businesses other than loans and advances to customers amounted to RMB-129 million,representing a year-on-year decrease of RMB10.592 billion.The reversal of the expected credit losses of other types of bus
81、inesses other than loans and advances to customers during the reporting period was mainly due to the decrease in the scale of amounts held under resale agreements as compared with the end of the previous year.4 Other operating expenses include depreciation,amortisation,leases,taxes and surcharges,al
82、lowances for insurance claims and other various administrative expenses.11China Merchants BankFirst Quarterly Report of 2023(H Share)4.3 Analysis of balance sheetAssetsAs at the end of the reporting period,total assets of the Group amounted to RMB10,508.752 billion5,representing an increase of 3.65%
83、as compared with the end of the previous year,which was mainly attributable to the stable increase in loans and advances to customers,financial investments,etc.driven by the Groups continued strengthening of the organisation of assets during the reporting period.As at the end of the reporting period
84、,the Groups total loans and advances to customers amounted to RMB6,335.975 billion,representing an increase of 4.70%as compared with the end of the previous year;total loans and advances to customers accounted for 60.29%of the total assets,representing an increase of 0.60 percentage point as compare
85、d with the end of the previous year.In particular,the retail loans of the Group amounted to RMB3,237.444 billion,representing an increase of RMB75.655 billion or 2.39%as compared with the end of the previous year,indicating a higher growth rate as compared with the corresponding period of the previo
86、us year,which was mainly due to the rising demands for personal operating loans and consumer loans with the recovery of consumer spending;the corporate loans of the Group amounted to RMB2,552.869 billion,representing an increase of RMB177.253 billion or 7.46%as compared to the end of the previous ye
87、ar,which was mainly driven by the increasing corporate financing demands with domestic economic recovery and the Groups continued strengthening of support for the real economy at the same time.As at the end of the reporting period,the balance of the Groups financial investments amounted to RMB2,941.
88、360 billion,representing an increase of 7.17%as compared with the end of the previous year.5 Pursuant to the relevant provisions in the“Interim Measures for the Administration of Gold Leasing Business”(Yin Ban Fa 2022 No.88)(黃金租借業務管理暫行辦法 (銀辦發2022 88 號)issued by the General Office of the Peoples Bank
89、 of China in July 2022,with respect to the gold leasing business of the Group with financial institutions since 2023,leasing of gold by the Group to other financial institutions was adjusted from“precious metals”to“placements with banks and other financial institutions”,and leasing of gold by the Gr
90、oup from other financial institutions was adjusted from”financial liabilities at fair value through profit or loss”to“placements from banks and other financial institutions”.The comparative data at the end of 2022 was adjusted to the same statistical calibre accordingly.12China Merchants BankFirst Q
91、uarterly Report of 2023(H Share)LiabilitiesAs at the end of the reporting period,total liabilities of the Group amounted to RMB9,518.990 billion,representing an increase of 3.64%as compared with the end of the previous year,which was mainly attributable to the increase in deposits from customers.As
92、at the end of the reporting period,the Groups total deposits from customers amounted to RMB7,771.878 billion,representing an increase of 3.13%as compared with the end of the previous year and accounting for 81.65%of total liabilities of the Group,and were the major funding source of the Group.Among
93、the demand deposits,corporate deposits accounted for 58.96%while retail deposits accounted for 41.04%.Among the time deposits,corporate deposits accounted for 58.39%while retail deposits accounted for 41.61%.From January to March 2023,among the daily average balance of deposits from customers of the
94、 Group,demand deposits accounted for 60.10%,down by 3.31 percentage points year-on-year,mainly due to customers increased investment in time deposit products as impacted by the volatile capital market and investment preferences of customers,which led to a decrease in the percentage of demand deposit
95、s.Owners equityAs at the end of the reporting period,the equity attributable to shareholders of the Bank of the Group was RMB981.087 billion,representing an increase of 3.76%as compared with the end of the previous year,among which retained earnings amounted to RMB531.592 billion,representing an inc
96、rease of 7.83%as compared with the end of the previous year;investment revaluation reserve amounted to RMB9.460 billion,representing a decrease of 19.93%as compared with the end of the previous year;exchange reserve was RMB1.145 billion,representing a decrease of RMB864 million as compared with the
97、end of the previous year.13China Merchants BankFirst Quarterly Report of 2023(H Share)4.4 Risk management and control for real estate sectorDuring the reporting period,the Group closely followed the national policies and regulatory requirements and persisted in the overall tactics of“clear positioni
98、ng,stabilising scale,improving access,focusing on regions,adjustment of structure and strict management”in the real estate sector.As at the end of the reporting period,the total balance of the businesses relating to real estate of which the Group assumed credit risks,such as actual and contingent cr
99、edit,proprietary bond investments,and proprietary investment of non-standardised assets amounted to RMB463.173 billion,representing a decrease of 0.03%as compared with the end of the previous year.The total balance of the businesses of which the Group did not assume credit risks,such as wealth manag
100、ement funds,entrusted loans,agency distribution of trust schemes under the active management by cooperative institutions,and debt financing instruments with the Group as the lead underwriter,amounted to RMB273.815 billion,representing a decrease of 8.84%as compared with the end of the previous year.
101、In addition,as at the end of the reporting period,the Companys real estate loan balance was RMB335.305 billion,representing an increase of RMB1.590 billion as compared with the end of the previous year,accounting for 5.61%of the Companys total loans and advances to customers,representing a decrease
102、of 0.22 percentage point as compared with the end of the previous year.As at the end of the reporting period,both the structure of customers and regional structure of the Companys real estate loans have remained sound,among which,the balance of loans with customers featuring high credit rating accou
103、nted for nearly 80%;in terms of regions where the projects were located,over 85%of real estate development loan balance was in the urban areas of first-tier and second-tier cities.As at the end of the reporting period,the Companys non-performing loan ratio of real estate loans was 4.55%,representing
104、 an increase of 0.56 percentage point as compared with the end of the previous year,mainly due to the further exposure of risks from certain high-debt real estate customers.In the future,the Group will continue to firmly implement the relevant national policies for the real estate sector,support the
105、 rigid housing demands and upgraders and offer more financial support to the housing rental market.Meanwhile,the Company will keep a close eye on the market developments,strengthen the forward-looking predictions on the risks of the real estate sector,reasonably distinguish risks associated with a p
106、roject subsidiary from risks associated with its group holding company,focus on selecting self-liquidating and commercially sustainable housing projects on top of strict review of cash flow and continued strengthening of post-investment and post-loan management,so as to keep the real estate financin
107、g in a stable and orderly position and support the stable and healthy development of the real estate market.14China Merchants BankFirst Quarterly Report of 2023(H Share)4.5 Analysis of loan qualityDuring the reporting period,the Group insisted on strict classification of assets to truly reflect the
108、asset quality.On the one hand,affected by the further exposure of risks from certain high-debt real estate customers,the balance of non-performing loans of the Group increased as compared with the end of the previous year.On the other hand,as the economic activities became stable and the foundation
109、has been consolidating,the balance and proportion of the special-mentioned loans and overdue loans of the Group decreased as compared with the end of the previous year.As at the end of the reporting period,the Groups non-performing loans amounted to RMB60.302 billion,representing an increase of RMB2
110、.298 billion as compared with the end of the previous year,and non-performing loan ratio was 0.95%,representing a decrease of 0.01 percentage point as compared with the end of the previous year;special-mentioned loans amounted to RMB70.748 billion,representing a decrease of RMB2.722 billion as compa
111、red with the end of the previous year,and the special-mentioned loan ratio was 1.12%,representing a decrease of 0.09 percentage point as compared with the end of the previous year;overdue loans amounted to RMB77.870 billion,representing a decrease of RMB415 million as compared with the end of the pr
112、evious year,and the overdue loan ratio was 1.23%,representing a decrease of 0.06 percentage point as compared with the end of the previous year.As at the end of the reporting period,the ratio of the Groups non-performing loans to the loans overdue for more than 90 days was 1.30,and the ratio of the
113、Companys non-performing loans to the loans overdue for more than 60 days was 1.13.15China Merchants BankFirst Quarterly Report of 2023(H Share)Distribution of the Companys loans and non-performing loans by industryThe Company31 March 202331 December 2022 (in millions of RMB,except for percentages)Ba
114、lance of loans and advancesPercentage of the total(%)Balance of non-performing loansNon-performing loan ratio(%)(1)Balance of loans and advancesPercentage of the total(%)Balance of non-performing loansNon-performing loan ratio(%)(1)Corporate loans2,264,70537.9228,2931.252,097,11436.6626,2051.25Trans
115、portation,storage and postal services431,0487.226280.15412,0647.204790.12Real estate335,3055.6115,2444.55333,7155.8313,3073.99Manufacturing508,7418.524,7420.93443,8527.764,7641.07Production and supply of electric power,heat,gas and water180,2103.023600.20167,5502.933930.23Leasing and commercial serv
116、ices154,4692.591,7031.10143,3762.511,7601.23Wholesale and retail191,8893.211,7070.89175,6153.071,7481.00Finance93,9031.57890.0975,6711.32890.12Construction114,3581.914530.40103,0671.804350.42Information transmission,software and IT service84,3681.412260.2780,2191.402220.28Water conservancy,environme
117、nt and public utility management57,9770.971560.2755,8380.98760.14Mining40,1290.676021.5038,6350.685211.35Others(2)72,3081.222,3833.3067,5121.182,4113.57Discounted bills523,2728.76513,8578.98Retail loans3,185,16453.3228,2770.893,109,73754.3628,0090.90 Total loans and advances to customers5,973,141100
118、.0056,5700.955,720,708100.0054,2140.95 Notes:(1)Represents the percentage of the non-performing loans in a certain category to the total loans of that category.(2)Consists primarily of scientific research and technical services industries,sanitation and social work industries,culture,sports and ente
119、rtainment industries and other industries.During the reporting period,affected by the further exposure of risks from certain high-debt real estate customers,the Companys non-performing loans and the non-performing loan ratio of the real estate industry all increased as compared with the end of the p
120、revious year.16China Merchants BankFirst Quarterly Report of 2023(H Share)Asset quality of the Companys loans and advances by product typeThe Company31 March 2023(in millions of RMB,except for percentages)Balance of loans and advancesBalance of non-performing loansNon-performing loan ratio(%)Balance
121、 of special-mentioned loansSpecial-mentioned loan ratio(%)Balance of overdue loansOverdue loan ratio(%)Corporate loans2,264,70528,2931.2521,2620.9430,1081.33Discounted bills523,2721030.02Retail loans3,185,16428,2770.8941,6771.3141,9401.32Micro-finance loans678,3534,2330.622,3220.344,4510.66Residenti
122、al mortgage loans1,365,0494,8990.3610,4910.776,1130.45Credit card loans881,93115,5141.7627,8863.1627,4423.11Consumer loans247,4232,4000.978770.352,6971.09Others(Note)12,4081,2319.921010.811,2379.97 Total loans and advances to customers5,973,14156,5700.9563,0421.0672,0481.21 The Company31 December 20
123、22(in millions of RMB,except for percentages)Balance of loans and advancesBalance of non-performing loansNon-performing loan ratio(%)Balance of special-mentioned loansSpecial-mentioned loan ratio(%)Balance of overdue loansOverdue loan ratio(%)Corporate loans2,097,11426,2051.2521,5151.0325,8521.23Dis
124、counted bills513,8578Retail loans3,109,73728,0090.9044,0971.4246,7311.50Micro-finance loans629,6284,0270.642,5150.404,5670.73Residential mortgage loans1,379,8124,8980.3510,4090.756,9560.50Credit card loans884,39415,6481.7730,2013.4131,4083.55Consumer loans202,2252,1911.088620.432,5441.26Others(Note)
125、13,6781,2459.101100.801,2569.18 Total loans and advances to customers5,720,70854,2140.9565,6201.1572,5831.27 Note:Others consist primarily of commercial housing loans,automobile loans,house decoration loans,education loans,internet joint consumer loans and other personal loans secured by monetary as
126、sets.17China Merchants BankFirst Quarterly Report of 2023(H Share)From January to March 2023,the domestic economy showed reviving growth as the policy for restoring and expanding consumption continued to gain momentum,and the quality of the Companys retail loan assets displayed a stable performance
127、with good momentum.As at the end of the reporting period,with regard to retail loans of the Company,the balance of non-performing loans amounted to RMB28.277 billion,representing an increase of RMB268 million as compared with the end of the previous year,and the non-performing loan ratio was 0.89%,d
128、own by 0.01 percentage point as compared with the end of the previous year;the balance of special-mentioned loans amounted to RMB41.677 billion,representing a decrease of RMB2.420 billion as compared with the end of the previous year,and the special-mentioned loan ratio was 1.31%,down by 0.11 percen
129、tage point as compared with the end of the previous year;and the balance of overdue loans amounted to RMB41.940 billion,representing a decrease of RMB4.791 billion as compared with the end of the previous year,and the overdue loan ratio was 1.32%,down by 0.18 percentage point as compared with the en
130、d of the previous year.During the reporting period,the amount of residential mortgage loans newly granted by the Company in the first-tier and second-tier cities accounted for 88.13%of the total amount of residential mortgage loans newly granted by the Company,and the balance of residential mortgage
131、 loans as at the end of the period in the first-tier and second-tier cities accounted for 86.59%of the balance of residential mortgage loans as at the end of the period of the Company,up by 0.09 percentage point as compared with the end of the previous year.The formation and disposal of non-performi
132、ng loans of the CompanyDuring the reporting period,the Company recorded newly formed non-performing loans of RMB16.023 billion,representing a year-on-year increase of RMB587 million,with a non-performing loans formation ratio(annualised)of 1.09%,down by 0.07 percentage point year-on-year.Among them,
133、the amount of newly formed non-performing corporate loans was RMB3.070 billion,representing a decrease of RMB2.163 billion year-on-year,which was mainly due to the slowdown in the formation of non-performing loans in the real estate industry;the amount of newly formed non-performing retail loans(exc
134、luding credit cards)was RMB2.467 billion,representing an increase of RMB1.032 billion year-on-year,and the amount of newly formed non-performing loans of credit cards was RMB10.486 billion,representing an increase of RMB1.718 billion year-on-year.The year-on-year increase in newly formed non-perform
135、ing retail loans was mainly due to the lagging impact of the relatively weak economic performance in late 2022,which was overall controllable.The Company continued to dispose of non-performing assets actively.During the reporting period,the Company disposed of non-performing loans amounting to RMB13
136、.663 billion,of which RMB4.458 billion was written off;RMB2.802 billion was recovered by collection;RMB6.096 billion was securitised;and RMB307 million was disposed of by repossession,transfer,upward migration after restructuring,remission and other means.18China Merchants BankFirst Quarterly Report
137、 of 2023(H Share)The allowances for loan losses of the CompanyThe Company continued to adopt a prudent and stable policy in respect of making allowances.In accordance with the Financial Instruments Standards,the Company made adequate allowances for credit risk losses by using the expected credit los
138、s model and the risk quantification parameters such as the probability of customer defaults and the loss given defaults,after taking into consideration the adjustments in macro perceptiveness,so as to continuously enhance the risk compensation capacity in key areas.As at the end of the reporting per
139、iod,the balance of allowances for impairment losses on loans of the Company amounted to RMB262.027 billion,representing an increase of RMB8.614 billion as compared with the end of the previous year.The allowance coverage ratio of the Company was 463.19%,representing a decrease of 4.24 percentage poi
140、nts as compared with the end of the previous year.The allowance-to-loan ratio of the Company was 4.39%,representing a decrease of 0.04 percentage point as compared with the end of the previous year.From January to March 2023,credit cost ratio(annualised)of the Company was 1.04%,up by 0.23 percentage
141、 point year-on-year,primarily due to the increase in allowance for loans because of the expanded scale of loans in the first quarter.Outlook of asset quality and countermeasuresAt current stage,against the backdrop of slowing international economic growth,high inflation and intensified volatility of
142、 financial market,the economic recovery in China is showing a positive trend.However,the foundation for recovery is not solid,and risks in some industries and regions still exist.The Company will closely follow the changes in the macro situation,continuously enhance the awareness of the industry,imp
143、rove credit policies and guide to form a reasonable customer structure.By implementing a list-based operation of“one branch,one policy”for asset business,the Company will spare no effort to promote the allocation of high-quality assets,rigorously prevent the risk of key areas,strengthen the monitori
144、ng and pre-warning of risks in key areas such as real estate,local government credit and group customers with large credit amount.The Company will formulate countermeasures on management and control,and will make efforts to dispose non-performing loans with various measures,implement a list-based ma
145、nagement for key projects and improve the quality and efficiency of collection and disposal.The Company will strengthen the management on special-mentioned loans and overdue loans,make adequate provisions to effectively prevent and mitigate potential risks,therefore maintaining the overall stability
146、 on asset quality.19China Merchants BankFirst Quarterly Report of 2023(H Share)4.6 Capital adequacy ratiosThe Group continued to optimise its business structure and enhance capital management.In accordance with various capital requirements of the China banking regulatory authorities as well as the s
147、upplementary capital and leverage ratio requirements under the“Ancillary Regulatory Provision for Systematically Important Banks(Trial)”(系統重要性銀行附加監管規定(試行),the capital adequacy ratio,Tier 1 capital adequacy ratio and core Tier 1 capital adequacy ratio of the Group and the Company should not be less t
148、han 11.25%,9.25%and 8.25%,respectively,and that the leverage ratio shall not be less than 4.375%.As of the end of the reporting period,the Group and the Company have been meeting the various capital and leverage ratio regulatory requirements.Capital adequacy ratios under the Advanced Measurement App
149、roachAs at the end of the reporting period,the core Tier 1 capital adequacy ratio,the Tier 1 capital adequacy ratio and the capital adequacy ratio of the Group under the Advanced Measurement Approach were 13.41%,15.34%and 17.39%,respectively.The decrease in capital adequacy ratios at all tiers under
150、 the Advanced Measurement Approach and the Weighted Approach was mainly due to the faster growth of risk-weighted assets as a result of the acceleration of asset grant in the first quarter of 2023.The Group(in millions of RMB,except for percentages)31 March 202331 December 2022Increase/decrease at t
151、he end of the reporting period as compared to the end of last year(%)The capital adequacy ratios under the Advanced Measurement Approach(1)Net core Tier 1 capital836,054799,3524.59Net Tier 1 capital956,500919,7983.99Net capital1,084,2901,037,9424.47Core Tier 1 capital adequacy ratio13.41%13.68%Decre
152、ase of 0.27 percentage pointTier 1 capital adequacy ratio15.34%15.75%Decrease of 0.41 percentage pointCapital adequacy ratio17.39%17.77%Decrease of 0.38 percentage point Information on leverage ratio(2)Balance of on-and off-balance sheet assets after adjustment12,013,88411,569,8423.84Leverage ratio7
153、.96%7.95%Increase of 0.01 percentage point 20China Merchants BankFirst Quarterly Report of 2023(H Share)Notes:(1)The“Advanced Measurement Approach”refers to the advanced measurement approach set out in the“Capital Rules for Commercial Banks(Provisional)”issued by the former CBRC on 7 June 2012(same
154、as below).In accordance with the requirements of the Advanced Measurement Approach,the scope of entities for calculating the capital adequacy ratio of the Group shall include China Merchants Bank and its subsidiaries.The scope of entities for calculating the capital adequacy ratio of the Company sha
155、ll include all the domestic and overseas branches and sub-branches of China Merchants Bank.As at the end of the reporting period,the Groups subsidiaries for calculating its capital adequacy ratio included CMB Wing Lung Bank,CMB International Capital,CMB Financial Leasing,CMB Wealth Management,China
156、Merchants Fund,CIGNA&CMAM and CMB Europe S.A.During the parallel run period when the Advanced Measurement Approach for capital measurement is implemented,a commercial bank shall use both the Advanced Measurement Approach and other approaches to calculate capital adequacy ratios,and comply with the c
157、apital floor requirements.The capital floor adjustment coefficients shall be 95%,90%and 80%respectively in the first year,the second year,and the third year(i.e.2017)and subsequent years during the parallel run period.(2)Since 2015,the leverage ratio shall be calculated based on the“Measures for Man
158、agement of the Leverage Ratio of Commercial Banks(Revised)”promulgated by the former CBRC on 12 February 2015.The leverage ratios of the Group were 7.95%,8.00%and 7.64%respectively as at the end of 2022,the end of the third quarter and the end of the second quarter of 2022.As at the end of the repor
159、ting period,the core Tier 1 capital adequacy ratio,the Tier 1 capital adequacy ratio and the capital adequacy ratio of the Company under the Advanced Measurement Approach were 12.98%,15.03%and 17.15%,respectively.The Companys risk-adjusted return on capital(RAROC,before tax)under the Advanced Measur
160、ement Approach was 29.62%,continuing to maintain at a high level.The Company(in millions of RMB,except for percentages)31 March 202331 December 2022Increase/decrease at the end of the reporting period as compared to the end of last year(%)The capital adequacy ratios under the Advanced Measurement Ap
161、proachNet core Tier 1 capital735,333701,0334.89Net Tier 1 capital851,687817,3874.20Net capital971,381927,8814.69Core Tier 1 capital adequacy ratio12.98%13.23%Decrease of 0.25 percentage pointTier 1 capital adequacy ratio15.03%15.42%Decrease of 0.39 percentage pointCapital adequacy ratio17.15%17.51%D
162、ecrease of 0.36 percentage point 21China Merchants BankFirst Quarterly Report of 2023(H Share)Capital adequacy ratios under the Weighted ApproachAs at the end of the reporting period,the core Tier 1 capital adequacy ratio,the Tier 1 capital adequacy ratio and the capital adequacy ratio of the Group
163、under the Weighted Approach were 11.36%,12.99%and 14.41%,respectively.The Group31 March 202331 December 2022Increase/decrease at the end of the reporting period as compared to the end of last year(%)The capital adequacy ratios under the Weighted Approach(Note)Core Tier 1 capital adequacy ratio11.36%
164、11.52%Decrease of 0.16 percentage pointTier 1 capital adequacy ratio12.99%13.25%Decrease of 0.26 percentage pointCapital adequacy ratio14.41%14.68%Decrease of 0.27 percentage point Note:The“Weighted Approach”refers to the Weighted Approach for credit risk,the Standardised Measurement Approach for ma
165、rket risk and the Basic Indicator Approach for operational risk in accordance with the relevant provisions of the“Capital Rules for Commercial Banks(Trial)”issued by the former CBRC on 7 June 2012(same as below).As at the end of the reporting period,the core Tier 1 capital adequacy ratio,the Tier 1
166、capital adequacy ratio and the capital adequacy ratio of the Company under the Weighted Approach were 10.85%,12.56%and 13.98%,respectively.The Company31 March 202331 December 2022Increase/decrease at the end of the reporting period as compared to the end of last year(%)The capital adequacy ratios un
167、der the Weighted ApproachCore Tier 1 capital adequacy ratio10.85%10.97%Decrease of 0.12 percentage pointTier 1 capital adequacy ratio12.56%12.79%Decrease of 0.23 percentage pointCapital adequacy ratio13.98%14.22%Decrease of 0.24 percentage point 22China Merchants BankFirst Quarterly Report of 2023(H
168、 Share)4.7 Other significant business metricsAs at the end of the reporting period,the Company had 187 million retail customers(including debit and credit card customers),representing an increase of 1.63%as compared with the end of the previous year.The balance of total assets under management(AUM)f
169、rom our retail customers amounted to RMB12,535.430 billion,representing an increase of RMB412.417 billion or 3.40%as compared with the end of the previous year.As at the end of the reporting period,the number of Sunflower-level and above customers of the Company(retail customers of the Company with
170、minimum total daily average assets of RMB500,000 per month)reached 4,329,600,representing an increase of 4.49%as compared with the end of the previous year.The balance of AUM from the Sunflower-level and above customers amounted to RMB10,189.471 billion,representing an increase of 3.27%as compared w
171、ith the end of the previous year.As at the end of the reporting period,the Company had 138,588 private banking customers(retail customers of the Company with minimum total daily average assets of RMB10 million per month),representing an increase of 2.81%as compared with the end of the previous year;
172、the balance of AUM from private banking customers amounted to RMB3,886.403 billion,representing an increase of 2.48%as compared with the end of the previous year;AUM per account amounted to RMB28.0429 million,representing a decrease of RMB90,900 as compared with the end of the previous year.As at th
173、e end of the reporting period,the total asset management business of CMB Wealth Management,China Merchants Fund,CMB International Capital and CIGNA&CMAM,all being subsidiaries of the Company,amounted to RMB4.28 trillion6,which was affected by the decrease of the balance of wealth management products
174、 under the management of CMB Wealth Management,representing a decrease of 2.95%as compared with the end of the previous year,among which the balance of wealth management products under management by CMB Wealth Management amounted to RMB2.46 trillion7,representing a decrease of 7.87%as compared with
175、the end of the previous year;the scale of asset management business of China Merchants Fund amounted to RMB1.50 trillion,representing an increase of 1.35%as compared with the end of the previous year;the scale of asset management business of CIGNA&CMAM amounted to RMB210.100 billion,representing an
176、increase of 27.54%as compared with the end of the previous year;the scale of asset management business of CMB International Capital amounted to RMB108.911 billion,representing an increase of 4.41%as compared with the end of the previous year.6 The total asset management business of China Merchants F
177、und and CMB International Capital include the data of their subsidiaries.7 The balance is the sum of customers principal of the wealth management products and the changes in net value of net-value products as at the end of the reporting period.5 Financial Statements 23China Merchants BankFirst Quart
178、erly Report of 2023(H Share)UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS(Expressed in millions of Renminbi unless otherwise stated)January to March 2023January to March 2022 Interest income93,34486,286Interest expense(37,935)(31,822)Net interest income55,40954,464Fee and commission income27,31
179、730,845Fee and commission expense(2,238)(2,150)Net fee and commission income25,07928,695 Other net income9,3448,256Operating income89,83291,415Operating expenses(27,323)(26,109)Operating profit before impairment losses62,50965,306Expected credit losses(16,421)(21,523)Share of profits of joint ventur
180、es529397Share of profits of associates264187 Profit before tax46,88144,367Income tax(7,655)(8,058)Net Profit39,22636,309 Attributable to:Shareholders of the Bank38,83936,022Non-controlling interests387287 Earnings per shareBasic and diluted earnings per share(RMB Yuan)1.541.43 24China Merchants Bank
181、First Quarterly Report of 2023(H Share)UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME(Expressed in millions of RMB unless otherwise stated)January to March 2023January to March 2022 Net profit for the period39,22636,309Other comprehensive income,net of taxItems tha
182、t will be reclassified subsequently to profit or loss:Share of other comprehensive income from equity-accounted investees that will be reclassified subsequently to profit or loss466(794)Fair value change on financial assets measured at fair value through other comprehensive income(1,473)(3,226)Net c
183、hanges in expected credit losses of financial assets measured at fair value through other comprehensive income(1,626)2,955 Cash flow hedge:net movement in hedging reserve(36)62 Exchange difference on translation of financial statements of foreign operations(935)(355)Items that may not be reclassifie
184、d subsequently to profit or loss:Fair value gain on equity instruments measured at fair value through other comprehensive income27750 Other comprehensive income for the period,net of tax(3,327)(1,308)Attributable to:Shareholders of the Bank(3,255)(1,273)Non-controlling interests(72)(35)Total compreh
185、ensive income for the period35,89935,001Attributable to:Shareholders of the Bank35,58434,749 Non-controlling interests315252 25China Merchants BankFirst Quarterly Report of 2023(H Share)UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION(Expressed in millions of Renminbi unless otherwise stated)I
186、tem31 March 202331 December 2022 AssetsCash12,17115,209Precious metals2,2332,329Balances with central bank585,469587,818Balances with banks and other financial institutions102,38591,346Placements with banks and other financial institutions265,788264,209Amounts held under resale agreements153,641276,
187、676Loans and advances to customers6,080,4495,807,154Financial investments at fair value through profit or loss520,659423,467Derivative financial assets12,67718,671Debt investments at amortised cost1,611,5271,555,457Debt investments at fair value through other comprehensive income821,288780,349Equity
188、 investments designated at fair value through other comprehensive income18,25513,416Interest in joint ventures14,73714,247Interest in associates10,0219,597Investment properties1,2551,268Property and equipment104,73699,919Right-of-use assets17,17517,553Intangible assets3,1523,402Goodwill9,9999,999Def
189、erred tax assets92,92590,848Other assets68,21055,978 Total assets10,508,75210,138,912 26China Merchants BankFirst Quarterly Report of 2023(H Share)UNAUDITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION(CONTINUED)(Expressed in millions of RMB unless otherwise stated)Item31 March 202331 December 2022
190、LiabilitiesBorrowing from central bank195,122129,745Deposits from banks and other financial institutions572,043645,674Placements from banks and other financial institutions245,488207,027Financial liabilities at fair value through profit or loss51,29449,144Derivative financial liabilities11,64118,636
191、Amounts sold under repurchase agreements128,654107,093Deposits from customers7,832,9127,590,579Salaries and welfare payable23,47623,866Tax payable23,11119,458Contract liabilities6,6216,679Lease liabilities12,70013,013Provisions22,30322,491Debt securities issued265,472223,821Deferred tax liabilities1
192、,4801,510Other liabilities126,673125,938 Total liabilities9,518,9909,184,674EquityShare capital25,22025,220Other equity instruments120,446120,446Including:Preference shares27,46827,468Perpetual bonds92,97892,978Capital reserve65,43565,435Investment revaluation reserve9,46011,815Hedging reserve115151
193、Surplus reserve94,98594,985Regulatory general reserve132,689132,471Retained profits487,760449,139Proposed profit appropriations43,83243,832Exchange reserve1,1452,009 Total equity attributable to shareholders of the Bank981,087945,503Non-controlling interest8,6758,735Including:Non-controlling interes
194、t5,9525,948Perpetual debt capital2,7232,787 Total equity989,762954,238Total liabilities and equity10,508,75210,138,912 27China Merchants BankFirst Quarterly Report of 2023(H Share)UNAUDITED CONSOLIDATED CASH FLOW STATEMENT(Expressed in millions of RMB unless otherwise stated)January to March 2023Jan
195、uary to March 2022 Operating activitiesProfit before tax46,88144,367Adjustments for:Impairment losses on loans and advances16,55011,060 Impairment losses on investments and others(129)10,463 Unwinding of discount on the allowances of loans and advances(53)(62)Depreciation of property and equipment a
196、nd investment properties2,4461,064 Depreciation of right-of-use assets1,0261,003 Amortisation of other assets290320 Net gain on investments in debt securities and equity instruments(2,460)(2,336)Interest income on investments(19,529)(15,158)Interest expense on issued debt securities1,8533,029 Share
197、of profits of associates(264)(187)Share of profits of joint ventures(529)(397)Net gains on disposal of property and equipment and other assets(82)(139)Interest expense on lease liabilities131140Changes in:Balances with central bank11,021(12,198)Loans and advances to customers(267,788)(186,503)Other
198、assets(53,704)(7,757)Deposits from customers236,136333,016Deposits and placements from banks and other financial institutions(13,512)(153,871)Balances and placements with banks and other financial institutions with original maturity over 3 months(26,497)(25,528)Borrowings from central bank65,2169,29
199、0Other liabilities(4,735)1,057Net cash generated from operating activities before income tax payment(7,732)10,673Income tax paid(4,886)(5,122)Net cash generated from operating activities(12,618)5,551 28China Merchants BankFirst Quarterly Report of 2023(H Share)UNAUDITED CONSOLIDATED CASH FLOW STATEM
200、ENT(CONTINUED)(Expressed in millions of RMB unless otherwise stated)January to March 2023January to March 2022 Investing activitiesPayment for the purchase of investments(449,172)(287,863)Proceeds from the disposal of investments340,191114,264Investment gains received from investments25,58419,014Pay
201、ment for the purchases of property and equipment and other assets(9,313)(9,013)Proceeds from the disposal of properties and equipment and other assets835208Net cash flows used in investing activities(91,875)(163,390)Financing activitiesProceeds from the issue of negotiable interbank certificates of
202、deposits49,32217,339Proceeds from the issue of certificates of deposits9,859742Proceeds from the issue of debt securities31,1275,343Proceeds from other financing activities5,3506,021Repayment of negotiable interbank certificates of deposits(22,210)(88,000)Repayment of certificates of deposit(8,124)(
203、2,465)Repayment of debt securities(19,189)(1,500)Repayment of lease liabilities(1,127)(1,190)Distribution paid on perpetual debt capital(90)(83)Interest paid on financing activities(974)(908)Repayments for other financing activities(65)Net cash generated from/(used in)financing activities43,944(64,7
204、66)Decrease in cash and cash equivalents(60,549)(222,605)Cash and cash equivalents as of 1 January567,198801,754Effects of foreign exchange rate changes on cash and cash equivalents(1,709)(726)Cash and cash equivalents as of 31 March504,940578,423 Cash flows from operating activities include:Interes
205、t received73,49670,670Interest paid29,79425,215 6 Information on Liquidity Coverage Ratio29China Merchants BankFirst Quarterly Report of 2023(H Share)The Group prepared and disclosed information on liquidity coverage ratio in accordance with the“Measures for the Disclosure of Information on Liquidit
206、y Coverage Ratio by Commercial Banks”.The basis used herein may differ from those adopted in Hong Kong or other regions.The average liquidity coverage ratio of the Group was 168.17%in the first quarter of 2023,representing an increase of 3.25 percentage points as compared with the previous quarter,w
207、hich basically remained stable.The Groups liquidity coverage ratio at the end of the first quarter of 2023 was 161.68%,which was in compliance with the regulatory requirements of China Banking and Insurance Regulatory Commission.The breakdown of the Groups average value of each item of liquidity cov
208、erage ratio in the first quarter of 2023 is set out below.(Unit:in millions of RMB,except for percentages)No.Unweighted amountWeighted amount Stock of high quality liquid assets1Total stock of high quality liquid assets/1,869,327Cash outflows2Retail and small business customers deposits,of which:3,3
209、87,790299,6003 Stable deposits783,59239,1804 Less stable deposits2,604,198260,4205Unsecured wholesale funding,of which:4,285,2181,401,1266 Operational deposits(excluding correspondent banks)2,721,004674,0907 Non-operational deposits(including all counterparties)1,553,852716,6748 Unsecured debt issua
210、nce10,36210,3629Secured funding/25,64210Additional requirements,of which:1,805,373332,07611 Cash outflows arising from derivative contracts and other transactions arising from related collateral requirements238,226238,22612 Cash outflows arising from secured debt instruments funding13 Undrawn commit
211、ted credit and liquidity facilities1,567,14793,85014Other contractual obligations to extend funds82,86082,86015Other contingent funding obligations4,313,18094,06716Total cash outflows/2,235,371Cash inflows17Secured lending(including reverse repo and securities borrowing)215,121214,60718Contractual i
212、nflows from fully performing loans1,067,768668,17919Other cash inflows249,049241,03720Total cash inflows1,531,9381,123,823 Adjusted value 21Total stock of high quality liquid assets1,869,32722Net cash outflows1,111,54823Liquidity coverage ratio168.17%30China Merchants BankFirst Quarterly Report of 2
213、023(H Share)Notes:(1)Data from the Bank was a simple arithmetic average of the 90-day value in the latest quarter and the month-end average in the latest quarter was used for subsidiaries in the above table.(2)The high quality liquid assets in the above table comprise cash,central bank reserve avail
214、able under pressure conditions,as well as the bonds in line with the definition of Tier 1 and Tier 2 assets set out by China Banking and Insurance Regulatory Commission on the“Measures for the Liquidity Risk Management of Commercial Banks”.The Board of Directors of China Merchants Bank Co.,Ltd.26 Ap
215、ril 2023As at the date of this announcement,the Executive Director of the Company is Wang Liang;the Non-executive Directors of the Company are Miao Jianmin,Hu Jianhua,Sun Yunfei,Zhou Song,Hong Xiaoyuan,Zhang Jian and Chen Dong;and the Independent Non-executive Directors of the Company are Wong See Hong,Li Menggang,Liu Qiao,Tian Hongqi,Li Chaoxian and Shi Yongdong.