Revenue distribution by industry:

• Retail Banking: approx. 40%
• Corporate Banking: approx. 35%
• Wealth Management: approx. 15%
• Other Financial Services: approx. 10%

TOP 3 markets and their percentage shares:

• China: approx. 85%
• Hong Kong: approx. 10%
• International (Rest of the World): approx. 5%

China Merchants Bank Co., Ltd. generates the majority of its revenue from the retail and corporate banking sectors. The Chinese market dominates with a share of about 85% of total revenue, followed by Hong Kong and international markets. This distribution reflects the bank's strong presence and focus on the domestic market while expanding its international activities.

Production sites: Mainly in China

China Merchants Bank Co., Ltd. is one of the largest commercial banks in China and mainly offers financial services. As it is a bank, it does not produce physical products in the traditional sense, but provides services such as lending, asset management, and other financial services.

The bank mainly operates its services within China, with a strong presence in all major cities. Additionally, it has international branches to serve its global customers.

Strategy for Future Growth: Diversification of services, digitalization, international expansion

China Merchants Bank Co., Ltd. is pursuing a strategy that focuses heavily on diversifying its services. This includes expanding its offerings in asset management and fintech services to meet the changing needs of customers.

Another focus is on digitalization. The bank is investing significantly in technology to enhance its digital platforms and optimize the customer experience. This is intended not only to increase efficiency but also to tap into new customer segments.

Furthermore, the bank is pursuing a strategy of international expansion, particularly in Asian markets. Through strategic partnerships and acquisitions, China Merchants Bank plans to strengthen its presence outside of China and capitalize on new growth opportunities.

Main imported raw materials/materials: Electronic components, IT infrastructure

Countries of origin: USA, Japan, South Korea, Germany

China Merchants Bank Co., Ltd. is primarily active in the financial sector and therefore does not import raw materials in the traditional sense like a manufacturing company. However, the bank heavily invests in IT infrastructure and digital technologies to enhance its services.

The required electronic components and IT infrastructure are mainly imported from technologically advanced countries such as the USA, Japan, South Korea, and Germany. These countries are leading in the production of high-tech components that are essential for digital transformation and the improvement of banking services.

The bank continuously invests in technological upgrades to remain competitive and enhance the efficiency of its services.

Market share in retail banking: 8.5% (2024, estimate)
Return on Equity (ROE): 15.8% (2023)
Cost-Income Ratio: 32.4% (2023)

China Merchants Bank Co., Ltd. (CMB) has a significant competitive advantage in the Chinese banking sector, especially in retail banking. With an estimated market share of 8.5% in 2024, CMB positions itself as one of the leading players in this segment.

The high Return on Equity of 15.8% in 2023 demonstrates the efficiency and profitability of the company compared to its competitors. A low Cost-Income Ratio of 32.4% highlights the operational efficiency of the bank, enabling it to effectively manage its cost structure while generating high revenues.

CMB also benefits from a strong brand perception and a well-diversified product portfolio, allowing the bank to flexibly respond to various market needs. Continuous investment in digital technologies and services further strengthens its competitive position by providing customers with a seamless and modern banking experience.

Institutional investor share: approx. 35% (estimated for 2025)
Insider purchases/sales: No significant transactions in the last year (estimated for 2025)

The institutional investor share in China Merchants Bank Co., Ltd. typically accounts for about one-third of the total share capital. This reflects the confidence of institutional investors in the stability and growth potential of the bank.

Regarding insider transactions, there were no significant purchases or sales in the last year, indicating a stable trust of the management in the company's future development. Such information is important as it can provide insights into the company's assessment by its executives.

Market share of China Merchants Bank: Estimated 8% (2025)

Top competitors and their market shares:

1. Industrial and Commercial Bank of China (ICBC): 15%
2. China Construction Bank: 13%
3. Agricultural Bank of China: 12%
4. Bank of China: 10%
5. China Merchants Bank: 8%
6. Bank of Communications: 6%
7. Postal Savings Bank of China: 5%
8. Industrial Bank Co., Ltd.: 4%
9. Shanghai Pudong Development Bank: 3%
10. China CITIC Bank: 3%

Moat of China Merchants Bank:

China Merchants Bank (CMB) has a significant moat characterized by its strong customer orientation and innovative digital banking services. CMB is known for its advanced technologies in online banking and mobile applications, giving them a competitive advantage in the digital transformation of the banking sector.

Compared to major competitors like ICBC or China Construction Bank, which excel in size and extensive networks, CMB has the advantage of being able to react more flexibly and innovatively to market changes. This allows them to maintain a strong market share, especially in the area of retail banking services.

However, CMB's moat is less defined by sheer size and capital strength compared to state-supported banks like ICBC or China Construction Bank, but more by innovation and customer service. This can be a significant advantage in a rapidly changing market environment, but established banks are also strongly positioned due to their resources and government support.

Revenue Growth: 8.2% (2024) Profit Growth: 10.5% (2024) Return on Equity: 14.8% (2024)

China Merchants Bank Co., Ltd. recorded a solid revenue growth of 8.2% in 2024, attributed to strong operational performance and effective expansion of its services. The profit growth of 10.5% indicates the company's ability to further increase its profitability, pointing to efficient cost control and successful implementation of growth strategies.

The return on equity of 14.8% is an indicator of the company's ability to generate high returns from invested capital. This suggests effective resource utilization and a strong competitive position in the banking sector.

Overall, China Merchants Bank demonstrates positive financial development, making it a potentially attractive investment. The strong financial performance and ability to grow in a challenging market environment support a long-term investment opportunity. However, investors should also consider macroeconomic factors and regulatory developments in China that could impact the banking industry.

Dividend yield: 3.5% (estimated for 2025)
Dividend history: Continuous payouts in the last 5 years

China Merchants Bank Co., Ltd. has regularly distributed dividends in recent years. The dividend yield is estimated to be around 3.5% for 2025, based on the payouts of recent years and current market conditions.

The bank has a solid dividend history and is considered reliable in its distribution policy. This is due to its stable financial performance and strong market position in China. Investors can therefore expect future dividend payments with a certain level of reliability, provided there are no significant economic or regulatory changes.