--- title: "China Merchants Bank Releases First \"Performance Report\" of the Year: Q1 Revenue and Profit Both Rise, Agency Fund Income Surges" type: "News" locale: "en" url: "https://longbridge.com/en/news/284419909.md" description: "China Merchants Bank released its first-quarter report for 2026, with operating revenue increasing by 3.81% year-on-year and net profit attributable to shareholders rising by 1.52% year-on-year, achieving positive growth in both revenue and net profit. The wealth management business rebounded, with fee and commission income surging by 25.42%, and agency fund income skyrocketing by 55.11%. As of the end of Q1 2026, total assets reached RMB 13.48 trillion, total liabilities amounted to RMB 12.19 trillion, and total customer deposits stood at RMB 9.96 trillion. Net Interest Income was RMB 55.642 billion, up 4.99% year-on-year. While the net interest spread and Net Interest Margin declined, the rate of decline narrowed" datetime: "2026-04-28T15:59:47.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/284419909.md) - [en](https://longbridge.com/en/news/284419909.md) - [zh-HK](https://longbridge.com/zh-HK/news/284419909.md) --- # China Merchants Bank Releases First "Performance Report" of the Year: Q1 Revenue and Profit Both Rise, Agency Fund Income Surges On the evening of April 28, China Merchants Bank, known as the "King of Retail," disclosed its latest first-quarter report for 2026. The Q1 report showed that the company's operating revenue increased by 3.81% year-on-year, and net profit attributable to shareholders rose by 1.52% year-on-year. This not only continued the positive growth achieved throughout 2025 but also marked the first time since 2023 that both revenue and net profit achieved positive growth in the first quarter. Additionally, China Merchants Bank's wealth management business significantly rebounded during the quarter. Driven by the recovery of the capital markets, fee and commission income from wealth management surged by 25.42%, with agency fund income skyrocketing by 55.11%. Retail Assets Under Management (AUM) amounted to approximately RMB 17.86 trillion. The quarterly report indicates a clear trend of performance recovery for China Merchants Bank. ## **Overall Positive Growth at the Start** During the reporting period, China Merchants Bank achieved operating revenue of RMB 86.940 billion and net profit attributable to shareholders of the bank of RMB 37.852 billion, **marking the first time since 2023 that both revenue and net profit achieved positive growth in the first quarter.** As of the end of the first quarter of 2026, the bank's total assets reached RMB 13.48 trillion, an increase of 3.17% from the end of the previous year. Total liabilities amounted to RMB 12.19 trillion, up 3.43% from the end of the previous year. Among these, total customer deposits were RMB 9.96 trillion, showing steady performance. From January to March 2026, the average daily balance of demand deposits at China Merchants Bank increased by 0.11 percentage points compared to the previous year. **This was mainly due to the stabilization and improvement of corporate operations, coupled with the recovery of the capital markets boosting individual investment willingness**, which drove a rebound in the proportion of demand deposits. ## **Narrowing Decline in Net Interest Margin** The net interest margin, a key focus in bank quarterly reports, also showed signs of improvement. China Merchants Bank's Q1 report showed that the bank achieved Net Interest Income of RMB 55.642 billion during the period, a year-on-year increase of 4.99%. From January to March 2026, the group's net interest spread was 1.77%, and the Net Interest Margin was 1.83%, representing year-on-year decreases of 5 basis points and 8 basis points, respectively, and quarter-on-quarter decreases of 2 basis points and 3 basis points, respectively. There are already signs that the decline is narrowing and stabilizing. The quarterly report explained that affected by loan repricing, coupled with factors such as insufficient effective credit demand and a decrease in the proportion of retail loans, the yield on interest-earning assets declined, dragging down the Net Interest Margin. Fortunately, China Merchants Bank continued to promote high-quality liability growth, partially offsetting the impact of the decline in asset yields. ## **Surge in Agency Fund Income** Additionally, from January to March 2026, China Merchants Bank achieved non-interest net income of RMB 31.298 billion, a year-on-year increase of 1.77%. Among this, net fee and commission income was RMB 20.656 billion, up 4.87% year-on-year. The quarterly report showed that the latter was mainly driven by a 25.42% year-on-year increase in fee and commission income from wealth management. China Merchants Bank's wealth management fee and commission income primarily comes from businesses such as agency insurance, agency funds, and agency trusts. The Q1 report showed that during the quarter, the bank's **agency insurance income was RMB 2.131 billion, up 16.70% year-on-year**, mainly driven by increased insurance sales; **agency fund income was RMB 2.032 billion, up 55.11% year-on-year**, mainly influenced by the year-on-year increase in the retention scale and sales volume of equity funds; **income from agency trust plans was RMB 1.100 billion, up 42.67% year-on-year**, mainly due to the growth in the scale of distributed trusts; **agency securities trading income was RMB 540 million, up 28.27% year-on-year**, mainly influenced by the increased demand for securities trading by clients in the Hong Kong capital market. Custody business commission income was RMB 1.542 billion, up 19.81% year-on-year, mainly due to the growth in custody scale. As of the end of the reporting period, China Merchants Bank had 227 million retail customers (including debit and credit card holders), an increase of 1.34% from the end of the previous year; the balance of Assets Under Management (AUM) for retail customers was RMB 17.86 trillion, an increase of 4.52% from the end of the previous year. ## **Significant Increase in Corporate Loans** In terms of credit structure, China Merchants Bank, as a bank strong in retail banking, also showed significant structural performance in corporate loans during the first quarter, characterized by "corporate advance, retail stability." As of the end of the reporting period, the total amount of loans and advances at China Merchants Bank was RMB 7.46 trillion, an increase of 2.84% from the end of the previous year. Among these, retail loans were RMB 3.68 trillion, a slight decrease of 1.00% from the end of the previous year. This was mainly because resident consumption and housing purchase demands were still in a recovery phase. The company adhered to prudent principles, continuously strengthened its comprehensive service capabilities for retail customers, and promoted the stable operation of retail loans. Corporate loans amounted to RMB 3.44 trillion, an increase of RMB 224.423 billion from the end of the previous year, with a growth rate of 6.98%. This was mainly due to further strengthening the organization of corporate assets, effectively grasping customer financing needs, and continuously increasing support for the real economy. As of the end of the reporting period, the balance of financial investments was RMB 4.29 trillion, an increase of 4.70% from the end of the previous year. This was mainly due to the continuous optimization of major asset portfolio allocation and reasonable arrangement of financial investment scale, combining interest rate trends with asset and liability allocation needs. 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