Bank of China Limited

Honorable investors, analysts, media fans, good afternoon. Welcome you and my big thanks to you for participating in 2026 BOC interim results release amid this rain. And my name is Liu Chenggao, EVP and the Board of Secretary of BOC. And today's release will be co-hosted by me and the BOC spokesperson, Madam Yu Ke. And this release is web broadcasted simultaneously. Welcome to us online. I want to introduce the leaders of BOC. Vice Chairman, President, and Chief Compliance Officer, Mr. Zhang Hui, EVP Cai Zhao, and EVP Wu Jian, EVP Huang Xueling, and we have our directors online. and the 2026 interim results of the bank have been announced externally and the PPTs can be downloaded from our website. Today, all the financial data are compiled according to RFIS. Now I want to give the floor to Mr. Zhang Hui to introduce you the interim results of the bank. Dear investors, analysts, media friends, good afternoon. welcome you to BOC 2026 interim results announcement it's a great pleasure to meet old and new friends 2026 is a meaningful year for BOC on the one hand as the first A plus H dual listed bank in China this year marks the 20th anniversary of our RPO after 20 years of continuous operation our bank with a history of more than 100 years, have achieved better corporate governance, globalized operation, and diversified business transformation. With asset scale grew by eight times and overseas institution coverage expanded from 27 countries to 64 countries. And we are coming from a bigger bank to a stronger bank. And this year, also marks the end of the 14th five-year plan and the beginning of the 15th five-year plan. In the past five years, BOC continuously improved its comprehensive strength opportunity revenue, net profit, and the name stabilized first among peers, and the net interest income contribution increased to 33%. S&R liability grew by more than 60%. and the globalization advantage has been further consolidated. Overseas, the profit contributions improved by 4.6 percentage points, NPL the lowest among peers, and the car ratio ranks as number eight among G6s. In the first half of the year, we have completed our operating targets with good quality enhancement. First, financial performance achieved steady growth in the first half operating revenue 357.1 billion profit before provision 230.4 billion an increase of 8.41% and 9.77% respectively net profit net profit achievable to shareholders of the bank grew by 4.67% and 5.10% respectively and the growth rate achieved QOQ growth since 2025. Name stabilized 1.27%. Net interest income grew by 10.20%. Cost income ratio decreased by 1.68%. Operating efficiency further enhanced. Ascendant liability continuously improves its quality. Total asset exceeded $48 trillion, an increase of 477% as compared to the end of last year. Low and bound and other high-yield assets improved by 1.32%. Domestic unbeknown grew by $1.2 trillion, a growth of 5.98%. Total liability reached $36.95 trillion, a growth of 5.11%. Overseas current deposits... also increased. Domestic RMB deposit interest rate reduced by 22.36 points. Liability cost is within control. Asset quality is stabilizing. NPL ratio 1.22% down 0.01 percentage points. Newly incurred NPL reduced. NPL balance also reduced. and provision coverage ratio 208.5% up 0.48 percentage point by the end of last year. Car ratio 18.31% and 8 business points higher than the previous quarter. And BOC sticks to the principle of creating value through prudent operations and generates shareholder trust through stable returns. Since IPO, BOC have a made payout a cash dividend of more than 1 trillion yuan, with payout ratio maintained at a high of 30%. To mark the 20th anniversary of our IPO, we suggest that the payout ratio to be increased to 31%, and we declare a cash dividend of 1.19 yuan per ton share. We saw in spring and reap in autumn hard work will be rewarded. At the end of March, in our annual result release, they will talk about our six orientations. In the first half of the year, our good performance demonstrated the correctness of our thoughts and the correctness of our six orientations. First, I want to introduce you to optimization. Our global competitiveness has been fully improved. Globalization is within the JEOC and also the strength of our operation in 100 years. In the first half of the year, we focused on three advantages of global operation, further polish our brand and create a pillar for our performance. Overseas net profit contribution maintained above 27%.

We continuously expand our global network.

Our global network covers 64 countries and regions. and number two in terms of institutions within the world. And in Hong Kong and Macau, we maintain a leadership position. In J20 countries, BRIC countries, and 10 Asian countries, and the 21 APEC economies, we all have institutional presence. BOC have provided high-quality globalized financial services which won market recognition. This year, we won clearing bank status for RMB in England, Sri Lanka, and Indonesia. And RMB Clearing Network covers 13 countries and regions. We underwrite a plan about $438 billion and assist overseas issuers to get RMB direct financing exceeding $110 billion Cross-border advantages are overwhelmingly leading the peers, and cross-border R&D business is skilled, ranked as number one in the world. We fully leverage our global service ecosystem and serve companies going global and investing into China. We iteratively upgrade our multi-layer, multi-dimensional global services, and we help the country contribute to the establishment of comprehensive service system by the country and we rely on our network in 64 countries and regions to provide cross border investment promotion endeavors of the government and we provide to 90% of the Fortune 500 companies in China, and we provide 7x24 multi-currency cash pool services. We provide across-the-clock services, and transfers and assessments can be done within seconds. We take the lead in establishing the first Chinese global custody bank, overseas and cross-border custody scale increased by 16.20%, 19.38% respectively. We upgrade DOC global salary payment and provide stock incentives for services to listed Chinese companies in overseas market. And we have global organizational strength. in the past 100 years we have accumulated capacities in corporate governance talent team compliance system and risk control capacity this is our most precious assets in the first half we further strengthen regional intensive and integrated development we further consolidate Hong Kong regional headquarters strengthen POC Europe regional headquarters and we have established a expatriate roister with more than 10,000 talents on the list. The international settlement for REX transactions, AML compliance, we have a large talent reserve. And also we further promoted overseas compliance management. Overseas compliance management momentum is stable. We further established a bank-specific risk management policy and we review this policy on a regular basis. We align risk appetite with our strategic goals and development capacity so as to elevate our risk control capability to a new level. Second, we expand into new businesses to serve the real economy. We focus on the financial priorities and we are a leading bank in tech finance and tech loan balance take up more than one third of our total corporate loan we in total served 200,000 tech companies we have a full chain presence across key technology sectors we provide services to 5,200 core AI companies and in total green finance balance grew by 13.32% green bond underwriting scale investment scale rank among the top in the industry and inclusive finance provided to micro and small enterprises grew in amount and customer number by 10.6%, 8.19% respectively. Individual pension contribution grew by 54% and elderly care industry loan balance grew by 50%. Digital finance empowerment enablement has been further further enhanced MAU of mobile banking increased by 6.86% cross border e-commerce transaction amounts grew by 24% year on year digital IMB consumption amounts are among the top in the market and also POE loan balance grew by 9% we also support domestic consumption market zone in the first half, $200 billion, and have to stabilize the relative market. In total, we provided individual consumption loan to 3 million customers. We also provided interest rate subsidy for installment payments. And we make a continuous movement to create value. We cope with opportunities and challenges in external environment, and we actively promote volume and price synergy, optimize domestic and overseas asset and liability structure, fully leverage our global presence and multi-currency businesses. NIM stabilized in the first half and we improved by two business points as compared to the first quarter. That's for RMB, and for foreign currency name, it improves by 13 basis funds contributing to group name stabilization. We continuously optimize our revenue structure and expanding to wealth management, payment settlements, transactions, custody, and other capitalized businesses. We expand the source of non-interest income to generate higher comprehensive returns. individual customer, wealth management, custody business, settlement of clearing fee income grew by 22%, 10%, 4% respectively. Nine interest income percentage was more than 13% among the top in the peers. We stick to capital intensive operation and we focus on the philosophy of saving capital and create value at the same time. We optimize our off-balance sheet and within-balance sheet asset structure, strengthen the fund management of capital, reduce and optimize the capital consumption of businesses, and expand capitalized businesses. Fourthly, we want to be stronger in many businesses to provide comprehensive services to our customers. The total number of corporate customers exceeded 9 million, a growth of 7.54%.