China Merchants Bank Q3 profit jumps 7pc, bolstered by fee and commission income

China Merchants Bank announced on Friday its net profit for the third quarter rose compared to the same time a year ago, as the bank has aggressively expanded its fees and commissions revenue, even as lending profitability slowed.

Net profit rose 7 per cent to 15.5 billion yuan in the three months ended September, according to its filing. Total net profit for the nine months ending September was up 6.9 per cent, reaching 48.4 billion yuan. Net interest income for the period reached 100.7 billion yuan, while fees and commission income for the period totalled 49.2 billion yuan.

Non-performing loans climbed to 1.87 per cent as of September 30, compared to the 1.83 per cent at the end of June.

“Both our assets and liabilities grew moderately. The slower growth rate was mainly due to a slight decline in corporate deposits in the third quarter,” said Li Jianhong, chairman of China Merchants Bank said.

“There was a decrease in both net interest spread and net interest margin of the company,” Li added. He said the bank has “aggressively expanding” its wealth management and other business that led to growth in the bank’s non-interest revenues, a strategy he will continue.