China Merchants Bank Co., Ltd.

Welcome to the 2026 Interim Results Presentation. Today, I will cover three areas. Firstly, an overall introduction. And secondly, a detailed information. And thirdly, a business strategy for the next phase. In the first half of the year, the group implemented a strategy of building a value creation bank and adhered to the coordinated development of quality, profitability, and scale.

Various operation indicators registered steady progress with positive momentum. This was primarily reflected in four aspects. First, steady progress in operating performance with distinctive strength and profitability. Net operating income, 178.135 billion, up by 4.83% year-on-year. Net profit attributable to shareholders of the bank, 76.45 billion, up by 2.02% year-on-year. RAA and RAE were 1.14 and 13.43% respectively, remaining at industry-leading levels. Net interest income. 112.02 billion, up by 5.6%, affected by LPR repricing, ineffective credit demand, and declining market interest rates. The net interest margin was 1.83%, down 0.5% year-on-year, representing a narrower decline. Net non-interest income reached 66.11 billion yen, up by 3.56% year-on-year. The percentage of net non-nutrient income was 37.11%, maintaining the leading position in the industry. Net fee and commission income reached 39.86 billion yen, up by 5.99% year-on-year, of which income from extensive growth management reached 24.7 billion yen, rising by 18.44% year-on-year, representing the best level in the past five years. The cost-to-income ratio was 29.7%, down 0.41% each point year-on-year. Second, we delivered balanced asset growth in both scale and quality, with continued improvements in funding costs. Amid ineffective credit bonds, we carried out a range of measures to strengthen asset origination and optimize asset allocation. Our total assets amounted to $13.79 trillion, up by 5.47%. Total loans and advances to customers, $7.45 trillion, up by 2.69%, accounting for 54.07% of total assets remaining stable. Among them, general loans amounted to $7.19 trillion, up by 3.65%. We accelerated the turnover of bill assets with discounted bills amounting to 265.38 trillion, down 17.62%. Investment securities and financial assets amounted to 4.4 trillion, up by 6.07%, accounting for 31.95% of total assets, a level that the group considers appropriate We pursued steady liability growth while continuing to optimize deposit structure. With a consolidating advantage in low funding cost, total liabilities sold 0.43 trillion yen up by 5.45%, of which total deposits from customers exceeded 10 trillion yen up by 3.32%. Core deposit balance was 7.79 trillion yen up by 9.02%. compared with the previous year. It accounted for 82.06% of the average daily balance of total deposits, up by 1.37 percentage points as compared with last year. The average daily balance of demand deposits accounted for 49.6%, up by 0.2 percentage points compared with the previous year, remaining at an elevated level. Interbank deposits grew rapidly, serving as an effective supplement to the funding sources, of which demand deposits accounted for 94.54%. The annualized average cost of interest-bearing liabilities was 1.05%, down 30 bps year-on-year, of which the average cost rate of deposits from customers was 0.97%, down 29 bps year-on-year. Thirdly, we maintain stable asset quality and strong risk compensation capacity. The MPL balance was 70.25 billion yuan, up by 2.05 billion, and the MPL ratio was 0.94%, remaining at the same level. The annualized MPL formation ratio was 1.06%, up by 0.08 percentage points. The allowance coverage ratio was 385.1%, and the allowance to low-end ratio was 3.63%, reflecting a high level of risk compensation capacity. The annualized credit cost was 0.69%, representing a slight year-on-year increase of 0.02% each point. Fourthly, we strengthened capital management with industry-leading capital adequacy level Risk Places Asset under the Advanced Approach and the Weighted Approach increased by 5.16% and 5.23% respectively, which is generally in line with asset growth. The CET1 CAR, the Tier 1 CAR, and the CAR under the Advanced Approach were 14.07%, 16.59%, and 18.33% respectively, down 0.09% of 0.08 and 0.9 percentage points, respectively. As for weighted approach, the numbers were 11.84%, 13.96%, and 15.06%, respectively, down 0.08 percentage points, up by 0.6 percentage points, and up by 0.6 percentage points, respectively. This is a brief overview of our performance in the first half of 2026. We now turn to the company's operational information. In the first half, Amid new developments and challenges in the banking industry, the company proactively responded and seized opportunities. Taking extensive growth management to a new level, the transformation through the full initiative delivers notable progress that is strengthening the company's resilience and market competitiveness. This is mainly reflected in the following areas. First, we grew our client base rapidly while scaling up extensive growth management business. We remain customer centric. further deepened its segmentation and classification-based customer management and achieved growth in both size and quality of our client base. Retail customers totaled 231 million, up by 3.13%. Among them, Golden Sunflower and above customers reached 6.41 million, up by 8.02%. The number of private banking customers reached 216,000, up by 8.36%. Corporate customers reached 3.86 million, up by 6.56%, among which the number of newly acquired corporate customers was 347.9 thousand, and the additional customer, 78.5 thousand, up by 3.7%. The number of corporate customers for withholding transactions reached 1.53 million, representing A year-on-year increase of 14.97%. AUM from retail customers exceeded 18 trillion yen, up by 7.96% compared with year-end 2025. The half-year increase reached 1.36 trillion, hitting the record high. The average daily balance of corporate wealth management products was 632.61 billion yuan, up by 20.51% compared to 2025. Total asset management amounted to nearly 5 trillion yuan, representing a year-to-date increase of 5.29%. Balance of assets under custody, 23.58 trillion yuan, representing year-to-date increase of 8%, maintaining a leading position in the market. Secondly, we pursue differentiated development with more distinctive business strengths. First, we continue to consolidate our leading position in retail finance, and we maintain the main role of retail finance business with this net operating income accounting for 54.35% of the total. We continue to strengthen our professional service capabilities in wealth management, and the customers holding large-managed products, 66.17 million, up by 4.05%. Customers covered by three systems reached 12.58 million, up by 6.98%. In response to market trends and evolving customer demand, the growth structure of AOM of retail customers become more diversified. Agency distribution of non-money market mutual funds and trust products increased by 82% and 40.48% year-on-year respectively. The balance of retail wealth management products increased by 3.88% compared with prior year-end, and the balance of deposit from retail customers increased by 3.7%, facing rising risk and weakening demand to prioritize asset quality in retail loans. Resulting in a moderate contract spending scale, retail loans totaled 3.61 trillion, down 1.11% compared with prior year end. The percentage of retail loans to total loans and advances was 51.04%, down 1.88 percentage points compared with prior year end. Amid the industry's cyclical adjustment, The group appeared to a stable and no volatility operational strategy for its credit card business. Active credit card users totaled $74.4 billion, up by 0.46% compared with prior year end, and the transaction value was $1.91 trillion, down 5.43% year-on-year, while maintaining a leading position in the industry, and now market share further increased. Merchants Bk Co H Total corporate loans 3.2 trillion yen, up by 9.27%. Growth of loans in key areas, such as grain loans, manufacturing loans, and agriculture-related loans, are significantly outpacing the overall loan run.

The average daily balance of deposits from corporate customers, 5,230 billion yen, up by 6.1%.