China Merchants Bank Proposed______ Outline 20101104 stellaz.doc

China Merchants Bank：The Pursuit of Profitability (招商银行：从跑马圈地到精耕细作的华丽转身) Section I : Background Introduction July 2010, on the national CMB branch presidents meeting, the only topic is second transformation. Current success : Number 6 bank in China (big five aside) - data/charts to prove current success. The current success is driven by the first transformation Why do they raise the second transformation strategy? Raise the problem: does market share mean everything? Company Background - Keep the original Company Background part; only update financial statements Brief history Corporate governance Mission statement Fast expansion Section II : Chinese Banking Business and the New President Chinese banking business Chinese wholesale banking business Chinese retail banking business Definition of retail banking (SME loans, personal banking) Chinese SME loan market Personal banking (All-in-one card(debit card)/credit card) Evolution of Chinese banking market New President – take some of the paragraphs from the old case The situation before Ma becomes President The second attempt of credit card business Section III : Strategic Transformations The First Strategic Transformation (2004) - structural optimization and fast expansion CMB’s business mix thru 2002 to 2007 - The focus on retail banking business Strategy: optimizing business mix and Asset/Liability structure, focusing on the development of retail banking business, SME loan business and intermediary business. Strategy execution : fast growing market share, credit card center (2006) The Second Strategic Transformation (2008) - efficiency optimization New Goals：to improve loan pricing ability, to reduce capital consumption, to control operational cost, to increase value-adding customers and to minimize risks Background and rationale: higher rate of capital sufficiency, tighter capital constraints i.e. gov control over capital, intense competition卐ndeavor to eincrease profitability New attitude towards risky assets -