China Merchants Bank disclosed in its half-year report that it has realized operating revenue of Rmb28.75bn (+64.4% yoy), net profit attributable to shareholders of Rmb13.245bn (+116.4% yoy) and EPS of Rmb0.90.
Main reasons for fast-growing performance lie in several factors: 1) Scale expansion of rising interest capital and net interest profit enlargement; 2) Non-interest revenue; 3) Credit cost decline; and 4) Drop of real income tax rate.
Deposit and loan scales and interest margin rapidly increased. By the end of 1H2008, deposit and loan increased 10.93% and 10.32% respectively than that of beginning 2008. During 1H2008, net interest profit and interest margin of China Merchants Bank stayed 3.66% and 4.96% respectively, 55BP and 84BP higher than that of 2007.