China Construction Bank Corporation

Distinguished investors, analysts, media friends, ladies and gentlemen, good afternoon. Welcome all of you to China Construction Bank's 2026 Interim Results Announcement. I'd like to thank you sincerely for your continuous trust, interest and support to CCB. Today's results announcement has two venues in Beijing and Hong Kong, which are connected via video link. We are also broadcasting live online for our shareholders and the public. Joining us in Hong Kong today include Mr. Zhang Yi, President of CCB, Mr. Tang Shuo, Deputy President of CCB. Joining us in Beijing include Deputy President Mr. Ji Zhihong, Deputy President Ms. Han Jing, and Deputy President Mr. Lei Ni. We are also joined by our non-executive directors, representatives from independent directors, as well as the senior colleagues from the head office and also Hong Kong entities. My name is Li Zhenjiang, deputy president of CCB. The interim results of 2026 of CCB were officially released to the public earlier today. We will begin this afternoon with opening remarks from Mr. Zhang Yi, followed by open Q&A session. Now we will invite President Zhang. Distinguished investors, analysts, and the media fans, good afternoon. Welcome all of you to CCB2026 internal results announcement. First, I would like to thank you sincerely for your trust, interest and support to CCB over the time. Since this year, CCB sticks to Chairman Xi's spirit of developing China and also executed We also uphold the operation philosophy and risk management philosophy, so we emphasize on three abilities. Thank you very much. 30 trillion and also the liability side also increased healthily. The operation also improved. We have an operating income of $426 billion. Profit before provision is $328 billion, increased by 10.48% and 13% YOY, respectively. Net profit $171 billion, up 5.56%, increased by 1.88 percentage points by... Q1. NIM is 1.37%, ROA 0.74%, ROE 9.52%, capital adequacy ratio 19.42%, cost to income ratio 22.17% continue to be industry leading. The structure optimization Accelerates transformation momentum. The asset allocation is precise and efficient. The gross loans to customers is 29.34 trillion. Financial investments, 13.99 trillion, increasing by 5.65 and 8.8 or 8% respectively. The green and technology related loans continue to increase and the We have effective control of liability costs through expansion of low-cost settlement deposits, integration and optimization of the wealth management products and deposits, and various other management measures. The interest-bearing liability cost ratio is down by 30 basis points on worldwide basis. Earnings sources also stands at 310 billion, up 8.46%. We continue to seize opportunities of the wealth management market. Now, net interest income also stands at 115 billion, up 16.31%, increased by 1.36 percentage points YOY. The efficiency and quality of operation is also increased and strengthened We maintain very disciplined control of general expenses, enhance financial support in customer marketing and technology operation. Cost-income ratio fell by 1.55 percentage points. The risk management is robust and effective. The net NPR ratio is only 1.29%. Provision coverage ratio is 8.69%. We have a very sufficient ability against risk. We also continue to enhance the balanced short- and long-term capital objectives by providing capital replenishment. These performance results also laid a solid foundation for sharing our results with shareholders. We also emphasize our dividend. And we have accumulated the cash dividend at 52 billion for the first half. And we also suggest the cash dividend, interim cash dividend of 2.01 RMB per 10 shares, including tax. The total dividend is $52.582 billion. Dividend payout ratio increased from 30% to 31%. This will be reviewed by the shareholders' meeting. Now I want to report the development plan for the second half. First, we will strengthen support for the real economy while enhancing quality and efficiency of financial service. We emphasize on the five key priorities. Technology finance is also leading in the industry. We will build our management mechanism centering around five aspects. We have the five-prong technology finance framework. We will also continue to optimize the technology precision and we have realized the double-digit growth in technology lending. We also rely on various measures. We have also issued 87 trenches of technology loans, satisfying various demands for these technology industries at various stages. We also responded to the policy, regulated, and provide orderly equity financing services for emerging and future industries. In terms of green finance, we also have optimized the green financing channel. We have also green loan balance of 6.53 trillion up 8.95%. We underwrote 34 trenches of green non-financial bonds totaling 15 billion. We also issued green bonds overseas of 1 billion US dollars and offshore green renminbi bonds of 3 billion RMB then. We maintained MSCI AAA ESG rating. In terms of inclusive finance, we will also try to continue to optimize the support to small and micro enterprises. We serve 3.82 million customers of micro and small enterprises. In terms of pension finance, The corporate pension account increased by 33%. We also launched the wellness living platform covering various scenarios. We also enhanced the AUM, especially the pillar 2 AUM of the CCB. It increased by 10.7%, standing at $800 billion. In terms of the digital finance, we deployed AI across various scenarios covering marketing, customer service, investment advisory, operation, risk control, and corporate management, covering over 600 scenarios. We also enhanced the online platform development. We have personal customers of 592 million, and the CNY consumption value is also around 8 billion, and it also increased by 13% and 14.68%. We also emphasize on some key priorities, optimizing the smart economy, the new infrastructure, related financial services. We also refined the Shanjian Intelligent Manufacturing and Shanjian Strong Foundation initiatives by the end of June. We also increased the manufacturing sector loan at RMB4 trillion, up 17.95%. In terms of private enterprises, the loan reached 7.3%. 6 trillion, up 9.42%. We also actively supported major national regional development covering Beijing, Tianjin, Hebei region, Yangtze River, and GBA, etc. The She Rong socially related finance services also increased. We continue to enhance our support to the urban renewal initiatives. We also support the domestic demand expansion and consumption growth, actively implement the interest subsidy policies for the first half. We have issued 1.08 trillion of new loans to service sector. In some key areas, the new loans also exceeded 33 billion. The consumption spending eligible for personal consumer loan interest subsidy policies exceeded $130 billion. We also support residents' essential housing needs and diversified needs for better housing. Residential mortgage reached $5.92 trillion. Issuance for residential mortgage is over $300 billion, keeping industry leading position. We also deepen the integration of financial services for consumer spending scenarios. Surrounding on the home life and auto life, we continue to enrich our supply chain. The personal consumer loan balance reached 806 billion, up by 14.596%. Credit card loans is at 934 billion. And the livelihood-related consumption sectors also exceeded, loans also exceeded 1 trillion, covering elderly care, cultural, tourism, sports, healthcare and education. Facilities disbursed of more than 1.1 billion in government consumption subsidies. We also have a stronger support for high-level opening up, serving the free trade zone and free trade port. We also facilitate the cross-border quick loan and RMB scenarios. The international business loan balance reached 2 trillion, up 24.57%. We also provided cross-border quick loans to the small and medium foreign trade enterprises of $53 billion. The loan balance to Belt and Road countries and regions reached $73 billion. We also support development of Hainan Free Trade Port and Shanghai International Financial Center, support Hong Kong in consolidating its position as International Financial Center and actively promoted development of offshore renminbi Second, we also maintained a customer-centric approach with continuous enhancement of comprehensive service capability. We have further streamlined the four integration mechanisms, continued to advance the financial banking, the underwriting volume of non-financial enterprise debt financing instruments reached $268 billion, The M&A loan balance reached 287 billion. Equity investment business also advanced in an orderly manner. The corporate and retail banking business is also enhancing their synergy. The social security cards and the disbursement customers and the merchant transaction volume also continue to increase.

The AUM payroll disbursement cost increased by $663.7 billion. Net increase of Social Security cards exceeded $3 million. We have met the need of domestic to foreign currency and domestic to foreign currency integrated accounts increased by 144,200 customers and we have achieved a double-digit growth in international settlement customers and international settlement volume. Cross-border RMB settlement volume reached 4.25 trillion. In per group-wide integration efficiency, overseas commercial banking institutions recorded net profit of $9.5 billion of 21.87% year-on-year. In the first half, overseas branches have recorded net revenue of $9.5 billion and subsidiaries recorded net profit of $18.2 billion. of 21.87% and 28.95%. We have focused on three customer groups, government, enterprises, and personal customers. We have developed model projects for 12 key ecosystem clusters, including universities, hospitals, social security cards, etc. We have seen an additional 792,900 corporate customers and an increase of over 5 million personal customers. Our products are better in meeting customers' demands. We have seized the opportunity of diversified wealth management. We focused on customers' asset allocation needs. We offer investment advisory So we can help them manage their wealth long term. Wealth management scale exceeded 5.3 trillion RMB. Wealth management customers added 5.57 million. Private banking customers at AUM achieved double-digit growth. Security customers for the third party security custody services of trading settlement funds exceeded 100 million. Asset under custody reached 25.45 trillion. Thirdly, we strengthened risk and compliance management and further consolidated the foundation for sound development. We improved risk and internal control management system. We focused on the overall risk system problems so we can establish a proactive and Smart risk management system. We strengthened our policies so we can respond to the key businesses. We strengthened the penetrative risk management across overseas institutions and subsidiaries. We have strengthened the review of differentiated risks and we have conducted evaluation management for corporate customers and we have seen higher quality in new loans. We optimized the asset quality management and NPO disposal mechanisms and broadened market-based disposal channels. MPL is 1.29% down by 0.02 percentage points with key areas seeing controllable risks. We have adapted ourselves to the rapid change of technology and risk profile so we can establish a risk management platform. and we have developed AI agents for customer risk identification, instructor risk analysis and we strengthened the foundation for compliance management and we have improved the core systems including money laundering review and compliance review.

Looking forward