China Minsheng Banking : Q1 2020 Results Announcement

China Minsheng Banking Corp., Ltd.

Q1 2020 Results Announcement

April 2020

Disclaimer

This presentation contains forward-looking statements that involve risks and uncertainties. These statements are generally indicated by the use of forward-looking terminology such as believe, expect, anticipate, estimate, plan, project, target, may, will or other similar words that express an indication of actions or results of actions that may or are expected to occur in the future. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this presentation. These forward-looking statements are based on our own information and information from other sources we believe to be reliable. Our actual results may be materially less favorable than those expressed or implied by these forward-looking statements which could affect the share price.

1

Agenda

I

II

Business Overview

Financial Indicators

2

Increased profitability and improved operating results

Net profit attributable to equity shareholders of the Company

(RMB mn)

18,000		15,792	16,650
15,000
12,000
9,000
6,000
3,000
0
	Jan-Mar 2019	Jan-Mar 2020

Basic earnings per share

(RMB/share)

0.5

0.40.360.38

0.3

0.2

0.1

0.0

Jan-Mar 2019

Jan-Mar 2020

Source: Company's Q1 report, annual report

Note: Annualised

ROAA and weighted ROAE1

1.20%		1.05%	15.09%	0.99%	14.53%		16.00%
0.80%							12.00%
							8.00%
0.40%							4.00%
0.00%							0.00%
	Jan-Mar 2019	Jan-Mar 2020
		ROAA	Weighted ROAE

Net assets per share attributable to ordinary shareholders of the Company

(RMB/share)

12		10.26	10.68
10
8
6
4
2
0
	Dec 31 2019	Mar 31 2020

3

Steady growth of business scale and further optimised business structure

Total assets and total liabilities

(RMB mn)

8,000,000		6,681,841	6,151,012	6,961,952	6,413,312
6,000,000
4,000,000
2,000,000
0
	Dec 31 2019	Mar 31 2020
			Total assets	Total liabilities

Total loans and advances to customers

(RMB mn)

4,000,000		3,487,601	3,698,733
3,000,000
2,000,000
1,000,000
0
	Dec 31 2019	Mar 31 2020

Source: Company's Q1 report, annual report

Total deposits from customers

(RMB mn)

4,000,000		3,604,088	3,759,851
3,000,000
2,000,000
1,000,000
0
	Dec 31 2019	Mar 31 2020

Personal loans and advances

(RMB mn)

1,500,000		1,412,924	1,438,862
1,200,000
900,000
600,000
300,000
0
	Dec 31 2019	Mar 31 2020
% of total loans	40.51%	38.90%
and advances to

customers

4

Steady revenue growth with sound cost control

Operating income

(RMB mn)

60,000

49,333

43,859

40,000

22,409

21,837

20,000

26,924

22,022

0

Jan-Mar 2019	Jan-Mar 2020
Interest income	Non-interest income

Source: Company's Q1 report

Cost-to-income ratio

30%

21.29%

20%

18.90%

10%

0%

Jan-Mar 2019

Jan-Mar 2020

5

Stable asset quality and strong risk control capabilities

Core tier-one CAR and CAR

Core tier-one CAR up by 7bps

CAR down by 7bps

13.17%	13.10%
12%		8.89%	8.96%			12.00%
9%				10.00%
6%						8.00%
					6.00%
3%						4.00%
					2.00%
0%						0.00%
	Dec 31 2019	Mar 31 2020
		Core tier-one CAR			CAR

Allowance to NPLs

160%	155.50%	155.89%
120%
80%
40%
0%
Dec 31 2019	Mar 31 2020

Source: Company's Q1 report, annual report

NPL ratio

2.00%	1.56%	1.55%
1.60%

1.20%

0.80%

0.40%

0.00%

Dec 31 2019

Mar 31 2020

Allowance to total loans

3%		2.43%	2.42%
3%
2%
2%
1%
1%
0%
	Dec 31 2019	Mar 31 2020

6

Agenda

I

II

Business Overview

Financial Indicators

7

Overview of key financial indicators

Income statement highlights	Jan-Mar	Jan-Mar	Growth rate
(RMB mn, except per share data)	2020		2019		(%)
Operating income	49,333		43,859	↑	12.48
Of which: Net interest income				↑
26,924		22,022	22.26
Net non-interest income				↑
22,409		21,837	2.62
Total profit				↑
20,025		19,216	4.21
Net profit attributable to				↑
equity shareholders of the	16,650		15,792	5.43
Company
Basic earnings per share (RMB)	0.38		0.36	↑	5.56
	Jan-MarJan-Mar
Key profitability indicators	2020		2019	Change (ppt)
Weighted ROAE (annualized)	14.53		15.09	↓	(0.56)
ROAA (annualized)	0.99		1.05	↓	(0.06)
Net non-interest income to	45.42		49.79	↓	(4.37)
total operating income
Cost-to-income ratio	18.90		21.29	↓	(2.39)

Source: Company's Q1 report, annual report

	Balance sheet highlights	Mar 31	Dec 31	Growth rate
	(RMB mn)	2020	2019		(%)
	Total assets	6,961,952	6,681,841	↑	4.19
	Of which: Total loans and	3,698,733	3,487,601	↑	6.05
	advances to customers
	Total liabilities	6,413,312	6,151,012	↑	4.26
	Of which: Total deposits	3,759,851	3,604,088	↑	4.32
	from customers
	Total equity attributable to
	equity shareholders of the	537,380	518,845	↑	3.57
	Company
		Mar 31	Dec 31
	Asset quality indicators (%)	2020	2019	Change (ppt)
	NPL ratio	1.55	1.56	↓	(0.01)
	Allowance to NPLs ratio	155.89	155.50	↑	0.39
	Allowance to total loans ratio	2.42	2.43	↓	(0.01)
	Capital adequacy indicators (%)
	Core tier-1 CAR	8.96	8.89	↑	0.07
	Tier-1 CAR	10.30	10.28	↑	0.02
	CAR	13.10	13.17	↓	(0.07)

8

Thank you!

9