For the first half of the year, China Merchants Bank's corporate banking business profit surpassed its retail banking business for the first time, exceeding it by 2.815 billion yuan.
China Merchants Bank's wholesale finance business recorded a pre-tax profit of 45.703 billion yuan in the first half of the year, a year-on-year increase of 23.33%, surpassing its retail business for the first time by 2.815 billion yuan, which stood at 42.888 billion yuan. This marks the first time the wholesale segment's profit contribution has exceeded that of retail since the bank began disclosing segment profits in 2016. This shift reflects a diverging cycle in China's banking credit structure, characterized by expansion in corporate lending and contraction in retail lending. As of the end of June, China Merchants Bank's retail loan balance decreased by 1.08% compared to the end of last year. The wholesale finance business, through scale growth and reduced credit costs, compensated for the profit gap from the retail side, which was impacted by weakening demand and rising risks in mortgages, credit cards, and consumer loans.
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Source:华尔街见闻 · Source Link
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