■ 2Q21 net profit rose 23.5% yoy (1Q21: +15.2%) and is the best 2Q yoy
growth since 2011 (Fig 1).
■ 1H21 ROE was 18.1%, up 1.1% pts yoy. Its rising ROE profile contrasts with
many peers and we think this can expand its P/BV premium further.
■ Asset quality continued to improve. We are also encouraged by the jump in
credit card loan growth to 6% qoq (1Q21: +1%) or 22% yoy.
■ Reiterate Add rating and unchanged TP of HK$75.5. CMB remains our top
pick of the China banks.