China Merchants Bank : ·Interim Report 2019

H Share Stock Code : 03968

Offshore Preference Share Stock Code : 04614

2019 Interim Report

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China Merchants Bank	Important Notice
Interim Report 2019

Important Notice

1. The 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 representations, misleading statements or material omissions, and they will individually and collectively accept legal responsibility for such contents.
2. The 3rd meeting of the Eleventh Session of the Board of Directors of the Company was held at its Shekou Training Center on 23 August 2019. The meeting was presided by Li Jianhong, Chairman of the Board of Directors. 14 out of 15 eligible Directors attended the meeting in person. Leung Kam Chung, Antony (Independent Non-Executive Director) was unable to attend the meeting because of other business appointments, and entrusted Wong See Hong (Independent Non-Executive Director) to attend and exercise his voting right at the meeting. 7 Supervisors of the Company were present at the meeting. The convening of the meeting complied with the relevant provisions of the Company Law of the People's Republic of China and the Articles of Association of China Merchants Bank Co., Ltd..
3. The Company will not implement the profit appropriation nor will it transfer any capital reserve into share capital for the first half of 2019.
4. The Company's 2019 interim financial report is unaudited.
5. Unless otherwise stated, all monetary sums stated in this report are expressed in RMB.
6. Li Jianhong, Chairman of the Company, Tian Huiyu, President and Chief Executive Officer, Wang Liang, Executive Vice 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.
7. We have included in this report certain forward-looking statements with respect to the financial 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 to indicate forward-looking statements. These statements are based on current plans, estimates and projections. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we give no assurance that these expectations will turn into reality or prove to be correct. Therefore they should not be deemed as the Group's commitments. Investors should not place undue 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 substantial differences from those in the actual results.

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China Merchants Bank	Contents
Interim Report 2019

Contents

Definitions		3
Significant Risk Warning	3
I	Company Information	4
II	Summary of Accounting Data and Financial Indicators	7
III	Report of the Board of Directors	9
	3.1	Analysis of the Overall Operation	9
	3.2	Analysis of Income Statement	9
	3.3	Analysis of Balance Sheet	17
	3.4	Analysis of Loan Quality	22
	3.5	Analysis of Capital Adequacy Ratio	28
	3.6	Results of Operating Segments	34
	3.7	Other Financial Disclosures in accordance with the Regulatory Requirements	35
	3.8	Business Development Strategies	36
	3.9	Changes in the External Environment and Corresponding Measures	39
	3.10	Business Operation	48
	3.11	Risk Management	67
	3.12	Profit Appropriation	75
IV	Important Events	76
V	Changes in Shares and Information on Shareholders	81
VI	Directors, Supervisors, Senior Management, Employees, and Organisational Structure	92
VII	Corporate Governance	99
Financial Statements	101

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China Merchants Bank	Definitions
Interim Report 2019

Definitions

The Company, the Bank, CMB or China Merchants Bank: China Merchants Bank Co., Ltd.

The Group: China Merchants Bank Co., Ltd. and its subsidiaries

CBIRC: China Banking and Insurance Regulatory Commission

CSRC: China Securities Regulatory Commission

Hong Kong Stock Exchange or SEHK: The Stock Exchange of Hong Kong Limited

Hong Kong Listing Rules: The Rules Governing the Listing of Securities on the SEHK

CMB Wing Lung Bank: CMB Wing Lung Bank Limited

CMB Wing Lung Group: CMB Wing Lung Bank and its subsidiaries

CMB Financial Leasing or CMBFL: CMB Financial Leasing Co., Ltd.

CMB International Capital or CMBIC: CMB International Capital Holdings Corporation Limited

China Merchants Fund or CMFM: China Merchants Fund Management Co., Ltd.

CIGNA & CMB Life Insurance: CIGNA & CMB Life Insurance Co., Ltd.

CM Securities: China Merchants Securities Co., Ltd.

MUCFC: Merchants Union Consumer Finance Company Limited

Deloitte Touche Tohmatsu Certified Public Accountants LLP: Deloitte Touche Tohmatsu Certified Public Accountants LLP (Special General Partnership)

SFO: Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)

Model Code: Model Code for Securities Transactions by Directors of Listed Issuers of Hong Kong Stock Exchange

Significant Risk Warning

The Company has disclosed herein the major risks involved in its operations and the proposed risk management measures. Please refer to Chapter III for the details in relation to risk management.

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China Merchants Bank	I Company Information
Interim Report 2019

Company Information

1.1 Company Profile

1. Registered company name in Chinese: 招商銀行股份有限公司 (Abbreviated Name in Chinese: 招商銀行)
   Registered company name in English: China Merchants Bank Co., Ltd.
2. Legal representative: Li Jianhong
   Authorised representatives: Tian Huiyu, Liu Jianjun
   Secretary of the board of directors: Liu Jianjun
   Joint company secretaries: Liu Jianjun, Seng Sze Ka Mee Natalia (FCIS, FCS(PE), FHKIoD, FTIHK)
   Securities representative: Huo Jianjun
3. Registered and office address:
   7088 Shennan Boulevard, Futian District, Shenzhen, Guangdong Province, China
4. Mailing address:
   7088 Shennan Boulevard, Futian District, Shenzhen, Guangdong Province, China Postcode: 518040
   Tel: [phone]
   Fax: [phone]
   E-mail: [e-mail]
   Website: www.cmbchina.com
   Hotline for complaints on customer service: 95555-7
   Hotline for consumer rights protection: [phone]
5. Principal place of business in Hong Kong:
   31/F, Three Exchange Square, 8 Connaught Place, Central, Hong Kong
6. Share listing:
   A Shares: Shanghai Stock Exchange Abbreviated Name of A Shares: CMB Stock Code: 600036
   H Shares: SEHK
   Abbreviated Name of H Shares: CM BANK

Stock Code: 03968

Domestic preference shares: Shanghai Stock Exchange

Abbreviated Name of Shares: Zhao Yin You 1 (招銀優1)

Stock Code: 360028

Offshore preference shares: SEHK

Abbreviated Name of Shares: CMB 17USDPREF

Stock Code: 04614

1.1.7 Domestic auditor: Deloitte Touche Tohmatsu Certified Public Accountants LLP

Office Address: 30th Floor, Bund Center, 222 Yan'an Road East, Shanghai, China

International auditor: Deloitte Touche Tohmatsu

Office Address: 35th Floor, One Pacific Place, 88 Queensway, Hong Kong

1.1.8 Legal advisor as to PRC Law: Jun He Law Offices

Legal advisor as to Hong Kong Law: Herbert Smith Freehills

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