China Merchants Bank Co., Ltd.2008 Results Announcement

April 2009

1

Forward-Looking Statement DisclaimerThis presentation and subsequent discussions may contain forward-looking statements that

involve risks and uncertainties. These statements are generally indicated by the use of

forward-looking terminology such as believe, expect, anticipate, estimate, plan, project,

target, may, will or may be expressed to be results of actions that may or are expected to

occur in the future. You should not place undue reliance on these forward-looking

statements, which reflect our belief only as of the date of this presentation. These

forward-looking statements are based on our own information and on information from

other sources we believe to be reliable. They relate to future events or our future financial,

business or other performance and are subject to a number of uncertainties that may

cause our actual results to differ materially.

2

Agenda

1 Highlights

2 Major developments

3 Financial performance

4 Wing Lung updates

5 Outlook

3

2008 Review

PBOC benchmark rates

From tightening to stimulus♦ Chinese government adopted fiscal stimulus

measure and loosened monetary policies to boost economic growth

♦ Since September 2008, the People’s Bank of China has cut interest rate for five consecutive times. As a result, the 1yr benchmark lending rate and 1yr deposit interest rate have been reduced by 216bps and 189bps to 5.31% and 2.25%, respectively

♦ “Ten measures” aiming to promote domestic demand and support economic growth were promulgated by the State Council. Several government expenditure stimulus packages were also introduced to boost domestic demand

Monthly loan growth

Key equity indices Quarterly real GDP growth

20

40

60

80

100

120

1/08 4/08 8/08 12/08

(Reb

ased

to

100)

S&P 500 Hang Seng Index

Source: Bloomberg Source: CEIC

Source: PBOC Source: PBOC

The global financial crisis escalated in 2008; the slowdown of domestic economic growth led to a declining interest rate cycle

10.6% 10.1%9.0%

6.8%

-0.8%

0.7%2.5% 2.1%

1Q 2Q 3Q 4Q

China US

0.0%

2.0%

4.0%

6.0%

8.0%

6/07 9/07 12/07 3/08 6/08 9/08 12/08

1-year RMB benchmark deposit rate1-year RMB benchmark loan rate

896

382 334479

325 318 372 250 353110

732

1,595

1,043

1,920

(321)2

00

8/0

1

20

08

/02

20

08

/03

20

08

/04

20

08

/05

20

08

/06

20

08

/07

20

08

/08

20

08

/09

20

08

/10

20

08

/11

20

08

/12

20

09

/01

20

09

/02

20

09

/03

(RM

B b

n)

Monthly loan growth (all currency)

4

(RMB mn) Group Bank

Selected Balance Sheet data 2008 2007 % Growth 2008 2007 % Growth

Gross loans 874,362 673,167 29.9% 833,548 673,167 23.8%

Investments securities 310,446 243,634 27.4% 300,339 243,626 23.3%

Total assets 1,571,797 1,310,964 19.9% 1,499,372 1,311,076 14.4%

Customer deposits 1,250,648 943,534 32.5% 1,178,240 943,769 24.8%

Total equity attributable to shareholders 79,515 67,984 17.0% 87,437 67,877 28.8%

Group Bank2

Selected P&L data 2008 2007 % Growth 2008 2007 % Growth

Net interest income 46,885 33,902 38.3% 46,570 33,897 37.4%

Non-interest income(adjusted1) 8,770 7,184 22.1% 8,875 7,162 23.9%

Operating income(adjusted1) 55,655 41,086 35.5% 55,445 41,059 35.0%

Pre-provision operating profit 31,913 24,348 31.1% 32,300 24,337 32.7%

Pre-tax profit 26,759 21,043 27.2% 26,327 21,032 25.2%

Net profit attributable to shareholders 21,077 15,243 38.3% 20,412 15,232 34.0%

Financial highlights

Note:1 Adjusted for gain from investment in associates2 Except P&L data which are based on PRC GAAP, all financial data in this section are based on IFRS

Strong financial performance with net profit of RMB 21.08 billion, an increase of 38.3% compared to 2007

5

Financial highlightsNet interest margin expanded, profitability continued to grow

Group Bank2

Key ratios 2008 2007

Chnage(percentage

point) 2008 2007

Change(percentage

point)

Return on average equities 28.6% 24.8% 3.82 26.3% 24.8% 1.52

Return on average assets 1.46% 1.36% 0.10 1.45% 1.36% 0.10

Net interest margin 3.42% 3.11% 0.30 3.44% 3.11% 0.33

Net fee income as % of operating income (adjusted1) 13.9% 15.7% (1.76) 13.8% 15.7% (1.89)

Non-interest income ratio (adjusted1) 15.8% 17.5% (1.73) 16.0% 17.4% (1.44)

Cost to income ratio (excluding business tax) 36.5% 34.9% 1.61 35.8% 34.9% 0.89

Credit cost 0.48% 0.49% (0.01) 0.49% 0.49% 0.00

Non performing loan ratio 1.11% 1.54% (0.44) 1.14% 1.54% (0.40)

Special mentioned loan ratio 1.64% 2.13% (0.49) 1.65% 2.13% (0.48)

Coverage ratio 223.3% 180.4% 42.90 225.7% 180.4% 45.34

Loan to deposit ratio 69.9% 71.3% (1.43) 70.7% 71.3% (0.58)

Core capital adequacy ratio 6.56% 8.78% (2.22) 7.15% 8.71% (1.56)

Capital adequacy ratio 11.34% 10.40% 0.94 10.49% 10.29% 0.20

Effective tax rate 21.7% 27.6% (5.84) 22.5% 27.6% (5.11)Note:1 Adjusted for gain from investment in associates2 Except P&L data which are based on PRC GAAP, all financial data in this section are based on IFRS

6

Agenda

1 Highlights

2 Major developments

3

4

5

Financial performance

Wing Lung updates

Outlook

7

SME loans as % of total corporate loanswithin the Mainland(LH)

NPL of SME loans(RH)

26.0% 26.3%

34.6%

40.5%

2007 2008Retail loans as % of gross loans

Retail deposits as % of customer deposits

Business mix continued to improve, strategic change in business model started bearing fruit

SME loans remained stable despite tough operating environment

Non-interest income grew steadily

♦ Through innovation, the development of retail banking business accelerated

♦ Marketing strategies for credit card business were adjusted to focus on customer segmentation

♦ Implemented a customer strategy that equally emphasized SME and large accounts, with a preference to quality industries and the SME customers

♦ Improved risk based pricing capability which helped development of SME business

♦ Wealth management business substantially boosted through a focus on AUM and product offerings

♦ Actively developed fee-based businesses, particularly in new business areas such as cash management, corporate annuity and corporate cards

Contribution from retail banking increased

43.3%43.1%

2.68%

3.62%

2007 2008

Note:1 financial and operational data of the Bank is shown on this page

6,439

7,6457,162

8,875

2007 2008

(RM

B m

n)

Net fee and commissionsNon-interest income

8

129.9

97.3

6,3984,705

2007 2008

(RM

B bn

)

Total AUM of private banking business(LH)

Total number of private bank customers(RH)

40.2%

124.1%

208.5%

Bank card fees Insurance sales

agency fee

Trust servic fee

Growth in non-interest income businesses

659.3

471.0

393

291

2007 2008

(RM

B bn

) (in 000')

Sunflower customers' total AUM(LH)

Total number of Sumflowers customers(RH)

326,533

476,943

175,026219,342

2007 2008

(RM

B m

n)

Retail deposits Retail loans

Retail banking businessOutstanding performance of retail banking business

Increased recognition of Sunflower brand

Non-interest income growth (Non capital market related items)

Retail deposits/loans growth

Contribution from All-in-one card customer

Deposits growth: 46.1%

Loans growth: 25.3%

♦ PBOC data:

− RMB saving deposits balance ranked #6 among PRC peers, YoY growth ranked #5

− Retail loans balance ranked #5, YoYgrowth ranked #4

Rapid growth of private banking business

Note:1 financial and operational data of the Bank is shown on this page

43.5

49.1

7,649

5,955

2007 2008

(RM

B m

n)

(RM

B / card

)

Number of All-in-one cards issued(LH)Average deposit balance per card(RH)

9

2007 2008

(RM

B m

n)

Non-interest income from credit cards

Interest income from credit cards

41.8%

55.1%

44.9%

58.2%

2,603

4,129

1,047

1,123

2007 2008

(RM

B pe

r m

onth

)

Leadership in credit card market maintainedSteady growth in credit card business

Transaction volume per card in circulation

Credit card balanceNo. of credit card issued

Income from credit card business

Growth: 31.8%

Note:1 financial and operational data of the Bank is shown on this page

Growth: 58.6%

Growth: 7.3%

20.68

27.26

2007 2008

(in m

illio

n)

21.8% 23.4%

36.6% 37.3%

2007 2008

% of revolving accounts of card holders

% of interest-earning balances

10

Mid/long-term loans (mainland)

27.7% 31.9%

72.3% 68.1%

2007 2008

52,276

95,766

6.26%

4.30%

2007 2008

(RM

B m

n)

Discounted bills(LH) Yield of discounted bills(RH)

2007 2008

(RM

B m

n)

2,287

4,371

Steady growth in wholesale banking business

Growth of discounted bill business Corporate loan mix by maturity

Growth: 83.2%

Corporate banking non-interest income growth

Growth: 91.1%

Note:1 financial and operational data of the Bank is shown on this page

Improved the duration of corporate loan book, enhanced non-interest income and SME business

Breakthrough in corporate banking business

♦ The annual revenue from wealth management business reached RMB 345.5 bn, an increase of RMB 291.5 bn, representing 540% YoY growth

♦ Market leading position in offshore banking in terms of value and fee income

♦ Ranked 2nd among domestic banks in international factoring and 3rd in trade finance balance

♦ Ranked 4th in fixed income lead manager league table in terms of number of transactions

Product innovation

Brand building

Compliance management+ +

Short-term loans (mainland)

11

Breakthrough in international expansion

Local listingLocal listing &

Local listingLocal listing and

Local listingLocal listing &

“Customer following” strategy provides domestic customers with extended financial services

♦ Successful acquisition of 75-year-old Wing Lung Bank. It is the largest takeover deal in the banking sector for mainland banks and also one of the largest bank M&A in Hong Kong

♦ New York Branch was officially set up. It is the first Chinese bank branch approved since the Foreign Bank Supervision Enhancement Act was enacted in 1991

Overseas acquisition Establishment of overseas branch

Acquisition and Integration of Wing Lung Bank

♦ Expanded the Hong Kong and overseas business, adjusted operating strategy and provided customers with more comprehensive, better-quality and integrated financial service in both China and abroad– Customer base: A Chinese-founded bank with a long operating history in Hong Kong– Branch network: 37 branches in Hong Kong, 3 branches on Mainland China, 1 branch in Los Angeles and 1 in

Cayman Islands

♦ Hong Kong operation license: futures and securities brokerage, investment and wealth management, insurance business etc.

♦ Progress of integration: – Maintained operating continuity and stability of Wing Lung Bank; clearly defined future strategy– Outstanding results from the Rapid Win Plan– Launch of 20 business development projects and 21 key capability enhancement projects

Developed overseas business through both organic growth and M&A

12

Gradually entering into other financial service areas

Emerging financial services Business field to enter in the futurePreparation

Traditional commercial banking business

Lice

nse

bu

sin

ess

No

n-l

icen

se

bu

sin

ess

Small enterprise credit center

Retail business (including credit card)

International/Offshore business

Corporate business

Non-license investment banking business — financial

advisor etc.

CMB Financial Leasing (100% stake)

Licensed Hong Kong investment banking business — CMB International Capital Corporation

(100% stake)

Asset custody

China Merchants Fund(33.4% stake)

Annuity

Wealth management

Trust — plan to acquire 60.5% stake in Tibet Trust

Insurance — plan to acquire 50% stake in CIGNA & CMC

Licensed domestic investment banking business etc.

Futures clearing & settlement etc.

Asset-backed securities

Private banking business

Buy stake of regional commercial bank — Buy 10%

stake of Taizhou City Commercial Bank

13

Agenda

1

2 Major developments

3 Financial performance

4

5

Highlights

Wing Lung updates

Outlook

14

Group Bank2

(RMB mn except for EPS) 2008 2007 % Growth 2008 2007 % Growth

Net interest income 46,885 33,902 38.3% 46,570 33,897 37.4%

Net fee and commissions income 7,744 6,439 20.3% 7,645 6,439 18.7%

Non-interest income (adjusted1) 8,770 7,184 22.1% 8,875 7,162 23.9%

Operating income (adjusted1) 55,655 41,086 35.5% 55,445 41,059 35.0%

Operating expense (23,636) (16,738) 41.2% (23,145) (16,722) 38.4%

Pre-provision operating profit 31,913 24,348 31.1% 32,300 24,337 32.7%

Provisions (5,154) (3,305) 55.9% (5,973) (3,305) 80.7%

Profit before tax 26,759 21,043 27.2% 26,327 21,032 25.2%

Income tax (5,813) (5,800) 0.2% (5,915) (5,800) 2.0%

Net profit attributable to shareholders 21,077 15,243 38.3% 20,412 15,232 34.0%

EPS 1.43 1.04 37.5% 1.39 1.04 34.0%

Summary income statement

Note:1 Adjusted for gain from investment in associates2 Except P&L data which are based on PRC GAAP, all financial data in this section are based on IFRS

15

Group Bank

(RMB mn) 2008 2007 % Growth 2008 2007 % Growth

Gross loans 874,362 673,167 29.9% 833,548 673,167 23.8%

Allowances for loan impairment loss (21,608) (18,750) 15.2% (21,442) (18,750) 14.4%

Investments securities 310,446 243,634 27.4% 300,339 243,626 23.3%

Placement with other banks 186,466 239,564 (22.2%) 151,040 239,564 (37.0%)

Total assets 1,571,797 1,310,964 19.9% 1,499,372 1,311,076 14.4%

Interbank deposits 165,916 265,123 (37.4%) 165,020 265,123 (37.8%)

Customer deposits 1,250,648 943,534 32.5% 1,178,240 943,769 24.8%

Subiordinated debts 33,440 3,500 855.4% 33,440 3,500 855.4%

Other debts 4,996 9,992 (50.0%) 4,996 9,992 (50.0%)

Total liabilities 1,492,016 1,242,980 20.0% 1,411,935 1,243,199 13.6%

Total equity 79,515 67,984 17.0% 87,437 67,877 28.8%

Summary balance sheet

16

33,902

46,885

2007 2008

(RM

B m

n)

Rapid net interest income growth

Net interest income Net interest margin

Net interest income continued to grow while net interest margin further expanded

Growth

: 38.3

%

3.11%

3.42%

2007 2008

Note:1 Unless otherwise stated, data shown on this page is based on consolidated group financials

17

LoansInvestments securitiesBalances with central bankPlacements with banks and other financial institutionsTotal interest-earning assets

Significant increase in asset yields

Average interest-earning assets Average yields

Growth: 2

6.0%

Average yields of loans and advances (Bank)

Steady growth in interest-earning assets coupled with significant increase in asset yields

Note:1 Unless otherwise stated, data shown on this page is based on consolidated group financials

60.5%

61.7%

16.4%

18.2%

12.4%

10.1%

10.7%

10.0%

2007 2008

(RM

B m

n)

Placements with banks and other financial institutionsBalances with central bankInvestments securitiesLoans

1,089,612

1,372,657

6.76%

3.91%

1.67%

5.29%5.80%

6.80%

3.34%

3.92%

1.59% 1.67%

3.85%

3.34% 3.32%

4.73%

5.32%

2007 2008 Bank 2008 Group

6.17%6.85%

6.04%

7.05%

4.30%

6.26%5.80%

6.80%

2007 2008Corporate loans Retail loansDiscounted bills Loans and advances

18

78.1%

78.9%

19.9%

19.6%

2.0%

1.5%

2007 2008

(RM

B m

n)

Issued debts

Placement from banks and other financial institutions

Customer deposits

1,001,327

1,257,183

Funding cost

Average interest-bearing liabilities Average cost

Actively managing liabilities to control cost

Average cost for corporate and retail deposits (Bank)

Note:1 Debts included certificate of deposits, convertible bonds, financial bonds and subordinated debts2 Unless otherwise stated, data shown on this page is based on consolidated group financials

Growth: 2

5.6%

2.03%

4.09%

1.68%

2.03%1.93%1.94%

2.03%

4.16%

3.13%

2007 2008 Bank 2008 Group

Customer depositsPlacement from banks and other financial institutionsIssued debts

2.05%1.75%

1.99%

1.55%

2.03%

1.68%

2007 2008

Corporate deposits Retail depositsTotal customer deposits

19

7,258

8,776

2007 2008

(RM

B m

n)

696

1,895

2007 2008

(RM

B m

n)

Steady growth in fee and commission income

Trust service fee

Fee and commission income mixFee and commission income

Non-interest income

Note:1 Unless otherwise stated, data shown on this page is based on consolidated group financials

Growth: 20.9%

Growth: 22.1%

Growth: 172.3%

7,184

8,770

2007 2008

(RM

B m

n)

Growth in fee and commission income was driven by trust services fees, while agency service fees declined

Bank card fees

30.5%Agency

services fees

18.6%

Commissions

from credit

commitment

and loan

business

7.0%

Settlement and

clearance fees

11.2%

Trust services

fee

21.6%

Others

11.3%

20

180.4%

223.3%

2007 2008

OthersGoodwillInvestmentsDeposits and placements with banks and other financial institutionsLoans

3,703

152

(274)

861579

3,006

147

285

2007 2008

(RM

B m

n)

3,305

5,154

Credit cost and asset qualityImpairment loss for investments and good will increased. Credit cost declined slightly. Improving asset quality was evident through declining NPL ratio and increased NPL coverage

Credit costProvision for impairment losses composition0.49%

0.48%

2007 2008

Coverage ratioNPL balance and NPL ratio

Note:1 Unless otherwise stated, data shown on this page is based on consolidated group financials

10,394

9,677

1.11%

1.54%

2007 2008

(RM

B m

n)

NPL balance(LH) NPL ratio(RH)

21

19.7%20.1%

2007 2008

Improving operating efficiency

Cost to income ratio (excluding business tax) Income and cost per staff (Bank)

Income and cost per branch (Bank)Staff expenses as a % of operating income

34.9% 36.5%

2007 2008

Note:1 Unless otherwise stated, data shown on this page is based on consolidated group financials

Cost to income ratio slightly higher, while income per staff/branch continued to increase

1,417 1,502

577 627

2007 2008

(RM

B 00

0')

Operating income per employee Operating expenses per employee

70.982.3

28.8834.34

2007 2008

(RM

B m

n)

Operating income per branch Operating expenses per branch

22

Profitability

ROAA ROAA (pre-provision operating profits)

ROAE

Profitability continued to improve

Effective tax rate

1.36%

1.46%

2007 2008

2.17%

2.21%

2007 2008

24.8%28.6%

2007 2008

27.6%

21.7%

2007 2008

23

Capital adequacy ratiosGroup capital adequacy ratio Group core capital adequacy ratio Group RWA as % of total assets

10.40%11.34%

2007 2008

10.29% 10.49%

2007 2008

Bank capital adequacy ratio Bank core capital adequacy ratio Bank RWA as % of total assets

8.78%

6.56%

2007 2008

8.71%

7.15%

2007 2008

54.8%

58.4%

2007 2008

55.4%

58.6%

2007 2008

24

Agenda

1 Highlights

Major developments

3

4

5

Financial performance

Wing Lung updates

Outlook

2

25

(HKD bn)

Selected P&L data 2008 YoY % Growth Commentary

Net interest income 1.28 (14.4%)

Net fee and commission income 0.34 (31.3%)

Income from insurance businesses 0.44 2.0%

Operating expenses (1.05) 41.7%

Profit/loss after tax (0.82) n.m.

Selected Balance Sheet data 2008 YoY % Growth Commentary

Total loans 43.5 3.3% NPL ratio at 0.47%

Of which: Mortgage loans 9.6 (5.2%)

Syndicated loans 11.2 7.5%

Corporate loans 4.7 5.6%

Debt securities 10.9 (20.1%)

Of which: Foreign currency bonds 10.6 Over 72.5% of foreign currency bonds (including HKD) have credit ratings of A3 or above

Total assets 100.6 7.7%

Total deposits 83.2 17.0%

Net assets 10.4

Summary financials of Wing Lung Bank

26

Progress of Wing Lung integrations

Business/Customer

Risk management/operation

IT

♦ Corporate business — provide more comprehensive financial services to corporate customers with cross-border business between Hong Kong and Mainland

♦ Retail banking business — attempt to extend CMB’s strength in retail banking services to the Hong Kong operations

♦ Financial market and treasury business — co-operation has also begun in certain areas

♦ Reconstructed parts of the organizational structure; completed the centralization of risk and investment management; began streamlining credit process

♦ The framework for performance management has taken shape, with further details being refined and processed

♦ Ongoing feasibility study on the centralization of back office

♦ Began to draft a blueprint for IT development for the next 5 years

♦ Ongoing feasibility study on the implementation of account manager management system, the expansion of data storage and upgrade of enterprise network

♦ Began installations of the Z/OS 1.5 operating systems to the new Z Servers

♦ Made preliminary plans to stabilize IT team

Human resources/others

♦ Maintained the stability and continuity of the operation, as contained staff turnover

♦ Agreement on the principles of brand and culture integration

♦ Exploring cost synergies, significantly reduced cost through centralizing of the procurement of IT equipments

The integration with Wing Lung Bank is progressing smoothly, and has achieved good initial results

27

Progress of Wing Lung integration

2009 2012-20132010-2011

♦ Improve the mechanism of client referral, resources sharing and team collaboration; establish dedicated team for key accounts; ensure breakthrough in providing cross-border financial services

♦ Accelerate growth and return to profitability

♦ Complete the restructuring of outlets; successfully establish a comprehensive client service system and achieve leading operation capability; successfully complete the integration process

♦ Become the preferred bank in cross-border financial services

♦ Achieve leading position in peer group

♦ Complete the restructuring of more than half of the outlets; strengthen synergies in the corporate banking business through further to reactive collaboration; begin synergies in the retail banking business

♦ Significant increase in market share, achieve a growth rate higher than peers

Strategic goal and vision

♦ Become a commercial bank providing comprehensive services, both leading in Hong Kong local market and clear advantaging cross-border business between Hong Kong and China. Establish an internationally competitive platform that will support our international expansion in key overseas markets

Goals in next several years — “build solid foundations in one year; achieve notable results in three years; successful completion in five years”. We have also established a clear “Three Steps” plan, which will be implemented in an orderly manner to ensure the success of integration

28

Agenda

1 Summary

Major developments

3

4

5

Financial performance

Wing Lung updates

Outlook

2

29

OutlookIn 2009

Operational environment Responses

♦ Contraction of global economy and the risk of the slowdown in Chinese economy

♦ Risk management

♦ Insufficient effective demand

♦ Further effect of the spread compression

♦ Uncertainty in capital markets

♦ Intensified competition

♦ Continue the adjustment of business model

− Further develop the retail business

− Improve private banking service

− Maintain growth momentum of wholesale banking fee income business

− Expedite the development of SMB business

♦ Achieve the effective growth of lending business

♦ Improve asset liability management

♦ Further control cost

♦ Accelerate the implementation of comprehensive products management system

♦ Achieve success of Wing Lung integration. Gradually expand into other international markets and business areas

♦ Positive effects from fiscal stimulus package

♦ Loosening monetary policy

♦ Central and local governments encouraging investment in infrastructure, public facility, health care system

♦ Accelerating upgrade of certain industries such as machinery & equipment, boats and textiles

♦ Market demand including consumer demand will stabilize and rebound

Opportunities

Challenges

30

Q&A