Earnings call transcript: China Merchants Bank misses Q3 2026 estimates

China Merchants Bank reported Q3 2026 earnings that fell slightly short of analysts' expectations, with EPS at $1.59, missing the forecasted $1.62 by $0.03, and revenue of $86.63 billion, under the predicted $87.82 billion by $1.19 billion. Despite the modest miss, the bank highlighted steady business performance with improving revenue and profit growth, stable asset quality, and a robust capital base.

China Merchants Bank's net interest margin remained unchanged at 1.82%, while revenue and net profit attributable to shareholders grew by 5.37% and 2.38% year-over-year, respectively. The bank's wealth management segment contributed significantly to growth, with retail assets under management reaching CNY 18.71 trillion. Net operating income reached CNY 264.676 billion, and net profit attributable to shareholders increased to CNY 116.476 billion.

Investors reacted cautiously to the earnings release, driving the stock down 2.02% to $53.45 after trading at $54.55. Despite the slight shortfall, the bank's profitability, capital position, and asset quality continued to outperform many of its peers in China's banking sector, which has been grappling with margin pressure and weak loan demand.

The stock remains near the top of its 52-week range and is considered undervalued according to InvestingPro analysis.