ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. China Merchants Bank Co's annualizedNet Income for the quarter that ended in Mar. 2026 was $21,968 Mil.
China Merchants Bank Co's average Total Assets over the quarter that ended in Mar. 2026 was $1,906,168 Mil. Therefore, China Merchants Bank Co's annualized ROA % for the quarter that ended in Mar. 2026 was 1.15%.
The historical rank and industry rank for China Merchants Bank Co's ROA % or its related term are showing as below:
CIHKY'
s ROA % Range Over the Past 10 Years
Min: 1.09 Med: 1.26 Max: 1.42
Current: 1.17
During the past 13 years, China Merchants Bank Co's highest ROA % was 1.42%. The lowest was 1.09%. And the median was 1.26%.
CIHKY's ROA % is ranked better than 62.2% of 1529
companies
in the Banks industry
Industry Median: 0.98
vs CIHKY: 1.17
China Merchants Bank Co (OTCPK:CIHKY) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
China Merchants Bank Co ROA % Competitor Comparison
For the Banks - Regional subindustry, China Merchants Bank Co's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
China Merchants Bank Co ROA % vs Banks Industry
For the Banks industry and Financial Services sector, China Merchants Bank Co's ROA % distribution charts can be found below:
* The bar in red indicates where China Merchants Bank Co's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
China Merchants Bank Co (CIHKY) has a ROA % of 1.15% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on China Merchants Bank Co and its competitors. This is near median its historical median of 1.26. Over the past decade, China Merchants Bank Co's ROA % has ranged from 1.09 to 1.42. According to the industry distribution chart, China Merchants Bank Co ranks #578 out of 1529 companies in the Banks industry, placing it in the top 37.8%.
Is China Merchants Bank Co's ROA % too high?
China Merchants Bank Co's current ROA % of 1.15% is near median its 10-year median of 1.26. Over the past 10 years, this metric has ranged from a low of 1.09 to a high of 1.42. The Banks industry median ROA % is 0.98. China Merchants Bank Co's value of 1.15% is 17.3% above this industry median. Based on the distribution chart, China Merchants Bank Co ranks #578 out of 1529 companies in the Banks industry, which is above the industry midpoint. Overall, China Merchants Bank Co has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does China Merchants Bank Co's ROA % compare to competitors?
According to the Banks industry distribution chart, China Merchants Bank Co ranks #578 out of 1529 companies for ROA %. This puts China Merchants Bank Co in the upper half of its industry. The industry median ROA % is 0.98. China Merchants Bank Co's value of 1.15% is 17.3% above this benchmark. Historically, China Merchants Bank Co's own ROA % has ranged from 1.09 to 1.42 over the past decade. While the company's 10-year median is 1.26 vs. the industry median of 0.98, China Merchants Bank Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Banks company?
The median ROA % among Banks companies is 0.98, based on 1,529 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. China Merchants Bank Co's current ROA % of 1.15% is 17.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on China Merchants Bank Co and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. China Merchants Bank Co's current ROA % is 1.15%, which is near median its own 10-year median of 1.26. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is China Merchants Bank Co stock overvalued right now?
Based on GuruFocus' analysis, China Merchants Bank Co (CIHKY) is currently considered Fairly Valued. The stock's GF Value™ is $30.69, compared to a current price of $28.50 — trading 7.1% below its estimated fair value. The current ROA % is 1.15%, which is near median its 10-year median of 1.26 and 17.3% above the Banks industry median of 0.98. China Merchants Bank Co's overall GF Score™ is 69/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For China Merchants Bank Co (CIHKY), the current ROA % is 1.15% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is China Merchants Bank Co (CIHKY) Overvalued in 2026?
Based on GuruFocus' analysis, China Merchants Bank Co stock appears to be undervalued.
The current stock price of $28.50 is trading 7.1% below its estimated GF Value™ of $30.69.
GuruFocus considers China Merchants Bank Co to be Fairly Valued.
Key valuation signals for CIHKY:
ROA %: 1.15% (near median its 10-year median of 1.26)
GF Value™: $30.69 vs. price of $28.50 (7.1% below fair value)
Industry Position: 17.3% above the Banks median (#578 of 1529)
No single metric tells the full story. See the CIHKY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
China Merchants Bank was founded in 1987 and is headquartered in Shenzhen. The bank is China's seventh-largest listed bank by assets, with the largest distribution network among China's joint-stock banks. CMB's network has been expanding rapidly. Its outlets are located mainly in China's more developed areas, including the Pearl River and Yangtze River deltas. The firm has 18% and 82% of its shares listed on the Hong Kong and Shanghai exchanges, respectively. It has no foreign strategic investors. China Merchants Group is its largest shareholder, with a 30% stake. Retail banking, corporate banking, and wholesale banking accounted for 49%, 51%, and 0% of total profit before tax, respectively, and 40%, 58%, and 2% of total revenue in 2024.
69GF Score
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