Bank Of China Ltd Ord

Honourable investors, analysts, honourable friends from the media, good afternoon. Welcome you to Bank of China 2021 results announcement. My name is Mei Feiqi, Board Secretary for Bank of China. Today's result announcement will be co-chaired by myself and the press conference, press spokesperson and general manager of the present office, Mr. Jia Tianbing. Because of the pandemic reason, we still have online result announcement. which is a regrettable. I hope that next time we can have an in-person meeting. First of all, please allow me to introduce you the leaders from Bank of China. They are Vice Chairman, President of BOC, Mr. Liu Jin, Executive Director, EVP, Mr. Wang Wei, Executive Director, EVP, Mr. Lin Jingzhen, EVP, Mr. Chen Huaiyu, EVP, Mr. Wang Zhiheng, CIO, Mr. Liu Jiantong, Besides, in accordance with the latest version of the governance code of Shanghai Stock Exchange, the representative of our independent directors, Mr. Wang Changyun, is attending this meeting online. We have two sessions in this result announcement. First, we will have Mr. Liu, president of the bank, to introduce the performance of the bank, and then we will have questions and answers. For a long period of time, my dear friends, investors and analysts have provided long-term attention, support and care to Bank of China. We are deeply impressed. And there are many investors and customers online. We are greatly encouraged by your interest. My sincere thanks to all of you, our dear friends. In recent times, there are many odd volatilities in the capital market. However, the banking board is relatively stable and makes a contribution to the stability of the capital market. We hope that through our solid result announcement, we can bring more confidence to the market. We have just announced our results for 2021, and the presentation can be downloaded on our website, or you can have access to the PBT through the web link now. And for the financial data provided today, except special notes, are all compiled according to RFIS reporting rules. Now we will invite President Mr. Liu Jin to introduce us 2021 result of Bank of China plan of the bank and our future prospects. Now the floor is given to Mr. Liu. Dear friends from the media, investors, analysts, good afternoon. I'm very happy to meet you online to introduce you Bank of China 2021 In the past one year, Bank of China conscientiously implemented Party Committee State Council's deployment and policies, and we worked together to achieve the full year's target, and we have made rather good business results. We have stable financial results with operating income exceeding $600 billion and up-tax profit and profit attributable to shareholders increased by 10.85%, 12.28% respectively. And our business scale increased steadily. Asset and liabilities increased by 9.51%, 9.59% respectively. Loans grow steadily. especially for long-term and mid-term loans, and deposit also increased. Overseas custodian business ranked as number one. Our ROA and ROE increased by 0.02, 0.67% respectively, and core tier one capital ratio increased by two basis points. And name was 1.75%, and fee income Contribution increased by 0.14% and NPL ratio 1.33%, a reduction of 0.13% as compared to 2020. Overdue loan amount and ratio both reduced. Provision cover ratio 187.05%, and commercial service, manufacturer, inclusive finance, asset quality maintain stable, and NPR resolution amount 147.5 billion RMB. Customer base further consolidated, effective Corporate customer increased by 11.7. FI and custodian businesses further increased. And individual customer amount rank as number one. as compared to peers and also internet banking, mobile phone banking customer increased by large margins and our brand image further increased with increased comprehensive strength and we have won many market recognitions by numerous awards that we have won. Bank of China have implemented our 14th five-year plan. In 2021, we have achieved growth in eight key areas. In last year's result announcement, I introduced you the eight focal points of Bank of China's development. Now, I will introduce these eight sectors one by one, and you can make reference to our PPT. First, IT finance. We set up product service system that cover the whole life cycle of IT company. We provide comprehensive financial support in the amount of 1.26 trillion. Our customer was 36,000 IT companies. And we are setting up a final fund in the amount of $30 billion with the support of the Ministry of Information and Technology. We also help small and medium-sized companies to be innovative. In green financing, we support green development and transformation of traditional companies. We issue the action plan and green finance planning. And in total, our green credit exceeds $1.4 We use the tools provided by PPOC and to support 270 green projects. Green bond underwriting exceeded $129.4 billion domestically, and green bond business skill and green innovation is market leading. In terms of inclusive finance, we promote SME finance and reduce the price and fight the pandemic together with the market entities. Inclusive loan incremental amount was 53.15% as compared to the previous year, and the average cost was only 3.96%. Digitalized inclusive financing are making progress. Online inclusive loans increased by more than $100 billion. We also set up a service for specialized small companies. We provide financing to 15,000 specialized small companies in cross-border finance. We further consolidate our advantage in international settlement, cross-border RMB, foreign exchange settlement, cross-border custodian. And international settlement amount reached 7.26 trillion U.S. dollar up 26 percent. And for southbound connect and northbound connect, the number of assigned customers took up more than sixty percent of the market total. For e-commerce companies, we provided them with RMB settlement, foreign exchange settlement services and other services. We also provided services to the four major exports of China to stabilize foreign investment in China, to stabilize the foreign trade. We take the initiative in LPR reform, and we use the software Sonia and Toner to ease the bond. We are the only organization that can do this. For consumer finance, we integrate personal loans with credit card with consumer finance. Domestic RMB consumer loan increased by 9.69% and credit card installment also increased. For wealth management, we further practice the national strategy of common prosperity. By the end of last year, total individual customer reached $495 million and total asset $11 trillion. income increased by 33 percent year-on-year we also fastened the development of asia pacific private banking platform to provide them with online and offline services combined provide them with financial and non-financial services private banking customer increased by 10.80% and asset increased by 16.75% to 2.16 trillion and domestic private banking financial asset increased by 23.63% so the number of customer and the amount of asset management both increase. And for supply chain financing, we make use of corporate loan, cash management, insurance, and other kinds of tools to provide core enterprise liquidity of $2.16 trillion. And we have a 1 plus 1 model customer in the amount of $11.6 trillion. and online supply chain financing call customer increased by 41% and online supply chain business amount increased by 63%. For rural financing, we are deeply involved in helping set up rural financial system and Farmer and agriculture related loan increased by sixty percent and inclusive agriculture related loan increased by forty six percent. We have a BOC Fullerton which is focused on rural finance to support agriculture and small companies and businesses. We are the largest rural banking group in China and also the asset increase by 25.50%, and NPR ratio was only 1.3%. We further strengthen one body, two wins strategy. Commercial banking is our one body, and the two wins are globalized operation and comprehensive operation. Last year, domestic institutions' profit contribution increased by 0.35%. We focus on key industries, Green finance strategic and emerging loans increased by 28.8% and 135% respectively. Our overseas institutions fight against the pandemic, maintain stability, and their contribution to the bank further increase. We further promote digitalization and focus on key points, and we set up IT Finance Plus plan, and we set up a steering group for financial digitalization to lead the work for digitalization of the bank. Total IT investment, $18.6 billion, an increase of 11.4%. We also increased the number of staff, and the staff number increased by 13.75%. Six of our size result got the rewards from PBOC. And we have made application to 4,569 patent. Among this, 194 are granted. We started the OASIS project, which is our enterprise architecture. And data governance project, have made initial achievements. Digital assets are playing a bigger role. IT enablements have yielded good results. We have issued a mobile banking app version 7.0 and we further improve intelligent global transaction banking platform and we also We focus on four strategic scenarios, which is cross-border education, silver hair, which is senior person, and sports. We further strengthen risk management, optimize our risk management system, and have process control over all the process. We further optimize our credit structure for liquidity risk and market risk. It is rather stable. internal control and operating risk management is further strengthened and we further improve compliance risk governance system and management procedures. For this year, we will work steadily to implement the decisions of the State Council and the Party Committee and try to build first-level, world-level bank and create more value to shareholders, society, and employee. will be deeply involved in the national economic development to support the real economy. We will further strengthen our advantage of one body and two wings, establish a new development pattern. Third, we will further achieve digitalization. Fourth, we will mitigate financial risk and establish a firm defense line. 2022 is a special year for Bank of China. In 2022, After serving the 2008 Beijing Olympic Games, we play our advantage of the most international bank in China again to sponsor the Winter Olympic Games of Beijing and Zhangjiakou, and we bring hope and warmth to the world in the midst of the winter of the pandemic, and we work together for a better future. we just completed our task of serving the Paralympic Games. To serve the two Olympic Games, both the winter and the summer Olympic Games, is an important witness of our service provided to the society. And we can help 300 million persons to be engaged in winter sports in China. After serving Winter Olympic Games, many Winter Olympic Games venues and equipment producers and winter sports lovers become Bank of China's customers. And we are bringing new vitality to northern part of China, so winter sports. And if you want to play winter sports, please use the Bank of China's financial services. And I hope that you can also get involved in winter sports to be one part of this 300 million person in winter sports. 2022 is a year for us to celebrate our 110 years anniversary, and we are also seeing the rapidly evolving world. We will stick to our original goal and try to make new achievements in a new economic and social condition. We will serve economic and social development and make new contribution to this end. Thank you. Now we come to the second part of the result announcement and we will allow question and answer. To allow more friends to ask a question, each of you can only ask one question and also please identify yourself before asking questions. Now please give us the first person who are asking the question. Now you can unmute yourself. You have the floor. Thank you. Thank you for giving me this opportunity to ask the question. My name is from Morgan Stanley. My question is about future prospects. Because if we look at the Central Economic Work Conference of the party, it is pointed out that the economy is facing triple pressure and at the same time, the government specifies the areas for increased lending. So I want to know from the management, what is the corporate lending demand and actual lending, and what is the expected scale, structure, and the pace of overall lending of the bank for the year, and what are the key industries and areas that you focus on? Thank you, Mr. Xu. Credit market is a question of common interest. You have asked a very professional question. Now the floor is given to Mr. Wang Zhihong, EVP responsible for corporate banking. Thank you for your question. Financial sector shoulder the mission of serving the economic social development and help people living a better life. Bank of China is continuously contributing its strength to serving national strategy and the real economy. By the end of February 2022, total corporate loan reached 7.4 trillion, an increase of 368 billion, 47.2 billion more year-on-year. The growth rate was 5.19%. We focus on key areas and key industries, By the end of February, corporate green loan increased by 8.6%. Strategic new emerging industry loan increased by 11.6%. Manufacturing loan increased by 6.9%. In terms of regional breakdown, we focus on key regions of the country. Jingjingji, Yangtze River Delta, Big Bay area loan accounted for more than 70%.

And in 2022, our bank will be focusing on the development trend and the priorities to keep a very reasonable growth of the corporate loans so as to intensify the lending for the real economies and continuing optimizing the credit structure for the corporate. To be specific, we will be focusing on the business opportunities on the infrastructure, transportation, hydro, construction and the municipal construction, as well as new types of infrastructure. And secondly, we will be focusing on some types of enterprises featuring the specialized refined features and innovative little giant, focusing our attention to the intelligence manufacturing, green manufacturing, high tech, and et cetera. And thirdly, we will be focusing on the green low carbon and fourthly we will be focusing on the credit of the inclusive types of finances so that we will be providing better services for the special agricultural produce and improve our capabilities in providing banking services for the agricultural businesses. So looking into the future first of all we will stabilize the scale of the credit And it is expected that the increase rate of our credit and loans will be no less than 10%. And secondly, we'll optimize the structure. And from an industry perspective, we'll be putting our focus to the micro and small businesses, high-tech, green development, and have a very stringent control on the two highs and one overcapacity. And from a region perspective will be focusing on the coordinated and balanced development of the East, Middle East, and the Northeast region. And from the arrangement of the personal loan, we would adopt the principle of not speculation, so under the prerequisite of satisfying the requirement of results, we would just satisfy the needs of reasonable residential requests and we would also need to have a balanced development of the personal lending and corporate lending. Just now you have also asked the question about the rhythm of the lending and in the future our bank will be focusing on the implementation of the monetary policies so that we can play a role of a stabilizer that should be shouldered by the state-owned big banks. And I would like to give the floor to the second speaker. Thank you so much. And just now, Mr. Liu has given us an introduction of your performance, and we have seen a double digit of the growth of the performance, and such momentum has been tapped. Some investors are quite concerned about whether the profit can be maintained first of all to be stable and also to keep a fast momentum of growth. Can you just give us an introduction of some core performance indicators and also give us a prediction of the outlook of 2022. Thank you Mr. Ma and also for your recognition of the performance of BOC and we are also quite proud of the performance last year and we would like to give the floor to President Liu and Mr. Ma is clearly my old friend even though we haven't seen each other offline but I do see you quite a lot online and I have read quite some of your articles online as well. Thank you for your recognition of the BOC for the 14th Five-Year Plan has started last year and the economic development as well as the pandemic control has been keeping ahead globally, which has created a very favorable operating environment for the banking business. And last year, BOC has been kept to the general tone of trying to make improvements amidst stability, as it is mentioned, that the operating performance has been maintained stable and has a upward trend and we have a very fast increase of the post tax profit and when it comes to the operating income we have a breakthrough of over 600 billion reaching 605.7 billion an increase of 6.71% and we have a enhanced the lending and we have also tried to provide more services to the development of the real economy and also tried to reduce the comprehensive financing cost. So we have adopted the strategy of the double optimization of the quantity and price so that we can control the increase of the debt cost and we have maintained a very stable name and also we have very good performance of the inclusive financing and the cost of the financing has also steadily decreased. And also let's look at the cost structure. We will be able to see that the interest-bearing cost is also maintained at a low level. Last year we have made tremendous efforts to controlled the general debt. It has been achieving some great results. And the second feature is that the income structure has been significantly improved. The group has realized $180.6 billion of the non-interest income, an increase of 19.01%, the commission and the fee income, marks 81.4%, an increase of 7.82%, and the non-interest income accounts for 3.08%, and to increase by 3.08% to 29.81%. So our bank has been implementing the state policy of the reduction of the fees and the taxation so that we will seize the opportunity of the capital market and enhance the product innovation and try to explore the online businesses and wealth management. Previously, Min Jingying, president, has been in control of the corporate business and starting from last year, he was transferred to the retail businesses because of his very rich experiences in the corporate side, he would be able to bring a lot of radiation effect to the prosperity of the retail businesses as well. So this is the second feature. And the third feature is that our operating efficiency has been improved. The ROA and ROE stood at 0.89% and 11.28% 0.2 and 0.67% respectively in an increase and the cost income ratio is 28.17% keeping at a very stable level so from last year's perspective, it is a rather satisfying result. Looking into this year, for this year, we still have ongoing raging pandemic. We have seen some rebound of the resurgence of the cases, and we haven't seen a very robust world economic recovery. There is high volatility in the international financial market. The development of China has been facing the three-layered pressure of the demand contraction, the supply shock, as well as the weaker anticipation. However, the long-term fundamentals hasn't been changed. financial stability meetings as well as the central economic meetings as you will be able to see that the fundamentals are kept stable we will have such optimism to the long-term development and in order to promote the stable development of the capital market and try to make sure that the economic operation can be maintained at a reasonable range the standing committee of the State Council and the financial meetings has deployed a series of very important measures. Personally, I believe all these important measures that has been taken are sort of like the spring brazes. They are bringing warmth for us and also boost our confidence, which has also provided a very favorable opportunity for the banking businesses to grow. So BOC will definitely implement the deployment of the CPC and the State Council and try to implement the requests of the financial committees. We will try to leverage the spring break of the policies and we would be able to maintain a reasonable growth of the newly added loans to provide better services for the prosperity and the revitalization of the real economies. So at the end of this quarter, we have been trying to make better results in this regard. We believe for the first quarter report, you will be able to see more satisfying results. Well, in order to boost the economic development, we should also try to improve our own resource allocation and try to have stable growth. of our own bank. Now I would like to give the floor to the next speaker. Thank you, the city management of BOC. I'm from Zhongtai Securities Research Institute. I want to ask one question about inclusive loan we have noticed that the BOC has enhanced the support to the medium and small enterprises and inclusive loan has been kept a fast growth momentum so I really want to know what is your strategy and market position in this regard and also can you look into into 2022 about your target of the inclusive loans and also what is the quality of the assets so thank you Mr. Dai, indeed, the inclusive loan is what we have been put our focuses on. Mr. Dai has also asked the questions about our market positions and the strategies and the logic of our operation. We would like to give the floor to Mr. Wang Wei. Thank you. As you have mentioned, indeed, BOC in the inclusive finance has been making continuous and relentless effort on the one hand. It is how we implemented the requests of the central government and the responsibility we have shouldered in supporting the economic development. On the other hand, we have also catered to the changing landscape of the new reforms with the further deepening of the supply side structural reform, which has generated the new business models and the new growth models, we have seen the prosperity of the micro and small businesses. According to the statistics, we have altogether 120 million micro and small businesses. Among the 120 million small businesses, a very large amount of them hasn't really satisfied their financing requests, so there is quite a room for us to further provide better services for these financing requests from the medium and small businesses. Well, on the other hand, the national policy has also provided a favorable policy environment for the inclusive financing, so trying to provide services for the micro and small businesses is the definite choice of our restructuring of the BOC. And the BOC has listed the inclusive financing into the eight priority areas of the BOC, which has markedly clarified the strategic position of the inclusive finance. We will take multiple measures to make sure that the financing for the medium and small businesses can achieve a quantity increase and a wider coverage and reduction of the prices which has achieved very marked results. First of all, we have achieved leapfrog types of development of inclusive finance, as introduced by President Liu, and our increase rate has reached 33.15 percent in 2021, number one in our peers of the four, and also The average interest rate stood at 3.96% and trying to give benefits to the medium and small businesses. And secondly, we have used the technology to empower the digital-inclusive financing. We have come out with a business model of the online and offline tool-wheel-driven businesses. And in 2021, we have developed they termed it as the online product breakthrough year with our online businesses reaching more than 100 billion and we have already increased the inclusive business from less than 2% in 2020 to 34%. And last year, we have more diversified product portfolio, and we have also tried to cater to the changing landscape in the market. And thirdly, we have more innovative featured products and services. We have the inclusive loan, among which we have eight different series of more than 50 types of products. And we have also rolled out the New Year benefit loan, as well as the MSE benefit loan types of product services. Centered around the technological innovation enterprises, we have signed the strategic cooperation agreement with the National intellectual property bureau and we have to set up a such intellectual property financing innovative lab and we have also tried to perfect our service system for the specialized refined featured and innovative enterprises providing more than 130 billion credit for over 15 000 such enterprises and firstly we have fully played our comprehensive strength to satisfy the diversified financing needs. So we have reached such a principle that we are not only providing the commercial banking services but also for the village-based banks, consumer financing, public interest financing. So such a diversified whole coverage financial services has been provided. Looking into 2022, and taking full into consideration of the current economic situation and the regulatory requirement, the newly added inclusive loan will be amounting $300 billion, nearly the same increase comparable with last year, and centered around the online product enhancement requirement for this year, our online new added to will achieve more than 50 percent and also when it comes to the asset quality for recent years we have realized the double deduction for both inclusive loan MPL and MPL ratio double reduction however till now the MPL ratio cannot truly reflect the asset qualities of the inclusive loan. There are several reasons. First of all, such loans are actually newly extended for the last three years, and also such an extension of the repayment of the principal and the interest are still further extending, so such a risk might be further delayed but our overall judgment is that the quality of the inclusive financing is controllable and if compared with the average loan quality it is even higher and it is within a range of what policy really allows so we hope that we can take a proactive risk mitigation approach and pay great attention to the concern and the predictions of the credit risks from the customers and also from the approval of the credit and the post loan management, we would be able to make sure a high quality development of the inclusive finance. Thank you so much. Thank you, Mr. Wang.

We would like to... We will have the next question. Please unmute yourself and ask your question. Yes, thanks to the management for this opportunity. I'm from JP Morgan. I'm the analyst Li Yuli. I have a question about private wealth management. As we all know, wealth management is very important to many domestic commercial banks. The capital market also gives high valuations to the business. In recent years, BOC already has made a lot of efforts and has made a lot of progress in terms of wealth management and the wealth management related financial services so I would like to know what do you think the future opportunities and the growth points are and also given your good advantages in terms of high-end wealth and private banking businesses so what's your plan thank you in fact two days ago we celebrated the 15th anniversary of BOC private banking 15 years ago I also began to work for this area, so I'm also responsible for our private banking business, but still I want to give the floor to our Vice President Lin Jingzhen to answer the question. Yes, thank you the friend from JPMorgan Chase about your interest in our wealth management and services business. As our President has said in his presentation, In the year 2021, the BOC wealth management made new progress, especially for the growth of the lead and the high-end clients. It was the highest in the past three years. BOC is already a famous name in this regard. Then for the future trends, we are optimistic and positive. At the national level, the 14th five-year plan has achieved clarify the common prosperity long-term goal, therefore providing strategic support to the development of our wealth management business. At the market level, there are opportunities from the implementation of the new asset regulations, continuous improvements of regulatory policies and continuous reforms of the capital markets. They will help shape even a better, more benign competitive landscape and bring about more opportunities for wealth management at a client level. Our people definitely will have increasing disposable income and will have changed the wealth structure. They will have more diversified demand for assets allocation that's creating a lot of business opportunities for us. Then for BOC, the wealth management is one of the eight priority segments as identified by our strategic plan. During the 14th five-year plan, BOC will continue to grow our wealth management business in terms of the size, client base, and the share of revenues. We will continue to make a new progress and ensure that the strategic targets are well attained. Dear colleagues, in the next step, we will, together with our government, implement the common prosperity strategy. We will also achieve the transition of the wealth management business model. so that wealth management actually becomes an important toolkit for us to expand the client base, to increase deposits, and to improve our profitability. It will become further our core competency. Specifically, we have five priorities in terms of wealth management development. First, the priority of a better product selection. We should have the buyer's thinking because BOC has a lot of advantages. For example, we can provide group-wide and market-wide wealth financing platform, and our product selection, monitoring, evaluation, and dynamic adjustment mechanism will be more professionalized, standardized, and systemized. So our wealth management product pool is more competitive. The second priority is about asset allocation. We should shift from the single product focus to asset allocation mentality so as to sell more portfolio products, including FOF and the entrusted portfolio products. We will also provide better, smart and intelligent products. diagnosis and asset allocation services so the risks will be more diversified and yet income will be increased, returns will be increased for our clients. The third priority is about whole life cycle company for the clients. We will shift from the transaction mindset to the whole process life cycle Company in service mentality. So we will provide services before, during and after the sales. So we continue to provide a long term income for the clients. We therefore will also expand to the client base to achieve win-win. The fourth priority is about team building. Our team in the area of wealth management will be more professionalized. Our wealth managers, private bankers, and investment advisors will provide differentiated services. They will also benefit from more digital toolkits. The fifth priority is about group-wide development. scope and the services. Our private banking is very important and it also benefits from BOC advantages as a globalised bank. We are the bank for the entrepreneurs and we will also further develop the family trust business, complete the family wealth management ecosystem and help clients better inherit and ensure the continuity of the legitimate wealth. The Asia-Pacific private banking platform building will be accelerated and we will also further strengthen the synergy among and between the private banking plus investment banking plus commercial banking so that we provide more comprehensive services to high net worth clients. We will also further complete the charity platform so that the BOC will work together with the private banking clients to fulfill our social responsibility for the benefit of a common prosperity. Thank you, Vice President Lin. Now the next question. You can unmute yourself for the next question. Yes, many thanks to the management for this opportunity. I'm from Bo Shi Fund, the management company. financial industry analyst Liao Chenyu. I have a question about asset quality. Last year, the domestic economy continued to recover. In the past two years, BOC also has withstood a lot of tests from home and abroad, especially from the COVID pandemic. So can you give us highlights and also stress points about the BOC asset quality, especially what's your forecast of this year Which industries and which geographic regions do you think we should pay special attention to in terms of asset quality and asset quality changes? Can you give us the forecast of the asset quality trends in 2022? Yes, thank you for your question. You have asked a series of questions related to risks. I give the floor to our chief risk officer, Liu Jiantong. Thank you, Mr. Yao, for your question and also for your attention to the BOC developments. Last year, BOC proactively responded to changes at home and abroad, and we had better early recognition and early disposal of the risks. And therefore, we have achieved more disposal of the MPLs in advance. Last year, we achieved disposal of MPLs of about 100 billion yuan in advance. Second, about existing MPLs, we have expanded the channels of disposal. We have increased the pace of the resolution of big MPL clients. Last year, we disposed of more than 100 billion yuan of MPLs. Third, we made a steady progress of optimizing credit structure for strategic emerging industries, the manufacturing and the green finance. They got a greater share of our credits. In fact, last year, our asset quality-related indicators were good and turned out for the better. In terms of the NPLs overdue and the NPL disposal, in fact, we were doing better than many of our peers. At the end of last year, Our NPL balance went up, but the NPL ratio went down. The overdue balance and overdue ratio doubled down. The NPL balance was 208 billion yuan, up by 1.5 billion yuan. NPL ratio 1.33% down by 0.13 percentage points. Overdue rate went down by 0.19 percentage points. The CSIS differential was negative between overdue and MPLs. Then for the priority, the key industries and the sectors, they are very important to us. For some temporary and regional or localized risks, we pay special attention to them. For example, some real estate developers might have cash flow problems And in those less developed regions, some local governments have more debt maturities within a short period of time. Some manufacturers and traditional energy companies have difficulties in transition upgrading and green transition. But at the same time, we have noticed that the financial market has more volatilities, which might give rise to risks. Since last year, the prices of commodities have continued to increase. Now they still are high, not favorable to low-end manufacturers, construction industry, wholesalers, and retailers. Some businesses might have the probability of default. And also recently, the Russian-Ukraine conflict, U.S. dollar appreciation, have enabled some commodity prices to reach the unprecedented high levels, therefore bringing more shocks to the financial markets. We will monitor the implications of these risks to our client cash flow situation and to the client's resolvency so we can further dispose of the possible risks We will do the following. First, the overall risk management and strengthening of the governance structure. Second, some more bottom line mentality that we will increase our pre-warning monitoring and emergency response capabilities. Third, digital transition, more smart and intelligent risk management, the big data AI and knowledge graph will be helpful and enabling so that we can better identify the risk profiling of the key product lines and the target clients. Fourth, the monitoring over some key areas and their concentration levels. For example, the big clients, especially those that might be affected by the volatility of the financial markets. Fifthly, we will continue to dispose of MPLs, especially improving the quality of the disposals Expanding the channels, giving full play to securitization and tapping into the value of already written off assets. We will also better manage the overseas assets quality. They will adopt more industry portfolio management especially. They will control. the limits or the business sizes with those industries that they are more affected by the pandemic or that are in more risky countries. We will continue to proactively prevent and dispose of systematic risks. We believe that we can do it. We will not let down our shareholders. Thank you. Mr. Liu, we will have the next question. The next question Please unmute yourself. Yes, I'm very happy about this opportunity. I'm from the city of Lyon, securities company France. So I have a question about BOC overseas business. Last year, the pandemic was very volatile, but still the global economy had a strong sense of recovery. This year, I believe the global economy will maintain that recovery momentum. BOC is the most globalized Chinese bank. Last year, I think you did a good job in terms of responding to the uncertain external environment. So my question is, what is your strategy for overseas business development in the new year, in the next step? Will you have more ambitious targets and financial goals for Overseas business for 2022. Yes, thank you, Mr. Fan. Yes, we are a very globalized bank and overseas business is also our competitiveness. Now let me give the floor to VP Chen Huaiyu. He will answer the question. Many thanks to Mr. Fan for the question. Yes, for 2021, the pandemic was volatile. Sorry, his microphone is off. Sorry, his microphone is off. Roughly, the idea is that last year, BOC managed the pandemic implications. We ensured business continuity and employee security. And also the 14th five-year plan had a good starting point, laying down foundation for overseas business developments in the year 2022. This year, the global economy will continue to recover, thus providing favorable external environments for our overseas business. But the global recovery might be diverging with still unevenness and uncertainties. Advanced economies might have changes of their monetary policy. the interest increases actually are favorable to BOC, but still there are spillover risks from the advanced countries' monetary policies. For emerging economies, their financial risks go up, but BOC has only a small proportion of assets and revenues from emerging economies. This year, we will continue to give priority to stability we will continue to improve the quality and efficiency of the overseas business, especially for the global green sustainable transition for RCEP implementation. China's further foreign trade with other countries, especially the neighboring countries, and in terms of the conglomerate syndicate loans and debt and bonds underwriting. These are our traditional competitiveness and we will maintain the one body, two wins strategy. We will provide more comprehensive services to both domestic and international clients so that we can support the country's double circulation strategy and high-level openness strategy. In terms of the overseas branch layout, they already are in 62 countries and regions. In the future, we will improve the quality of the overseas branches. We will also have more regional integration. The Asia-Pacific synergy mechanism will cover all RCEP economies. We will also promote the region integration. regionalized management over Europe, Africa, the Middle East. We will build the IPU regional headquarters. We will further improve the synergy service capability and the management capability within those regions. And we will continue to monitor the pandemic situation, the local economic development situation, and external geopolitical tensions so as to ensure security of our business and the personnel. We will also further and more fine-tune the overseas risk management and response to the changes of the external environment and more heightened and tougher regulatory requirements from abroad. In terms of business plan, budgeting and asset allocation, we will give full play to our strength in the Asia-Pacific region. We will further develop business in advanced countries. We will provide high-quality services to Belt and Road, and we will stabilise business in the other emerging economies. BOC is more than 100 years old, and we are the GCP. We will continue to give full play to our global service capabilities so as to support the national strategy. Thank you. Ladies and gentlemen, dear colleagues, so much for the online questions from investors and analysts. According to regulatory... requirements. We also have got questions from the small and the medium investors. Some of their questions are collected and already are addressed by the answers previously. But still, there are two questions. I want to ask these two questions on behalf of the medium and the small investors. One is about capital and dividends. At the ad hoc shareholder assembly, It adopted BOC latest capital plan. They would like to know more about this and also they want to know the dividend payout policy. So I give the floor to President Liu Jing.

I want to thank the shareholders for your interest in Bank of China's dividend policy. In the result announcement I gave just now, I have a brief view about our capital adequacy ratio of Bank of China in 2021. In recent announced 14th five-year capital management plan, we set several targets. Our core tier one capital adequacy ratio, tier one capital adequacy ratio, total equity ratio should be no less than 10%, 11%, and a 13% increase of 1% as compared to the previous planning period. To ensure the chief of the above-mentioned goal, we have made several arrangements. In terms of our management practice, capital management requires three work. First, increase capital internally. Second, save capital charge. Third, strengthen emergent capital management. In increasing capital, as you may know, The first effort needed to be made is to increase core T1 capital adequacy ratio. We stick to the regular track of value creation and try to create capital internally. While creating value for the customer, we can also increase our own capital by increasing profit. We optimize economic value added and other indicators. so as to contribute more to our customer. And in the performance appraisal system, we also use the EVA. In this way, we can strengthen capital management, optimize the business structure, and promote that capital transformation. Internal generated capital is the most important channel for increase the capital for bigger commercial bank. therefore we have to expand our business skill and maintain fast profitability growth otherwise capital replenishment will be empty talk our future development will be constrained for core tier 1 capital this will be supplemented by internal capital generation and we also use other tools innovative tools to replenish other capital. We will communicate with our external regulators and make use of capital tools. We will learn from international peers, progress steadily with TLAG bond issuance, and manage existing capital tools, optimize capital structure. We are issuing perpetual bond and other capital replenishment tools. This is our daily work. That's about how to increase our capital. The next aspect is about the safe capital charge. In our daily operation, we are deepening the use of advanced risk management method and optimize the capital assessment and optimize our models, identify major risk, measure, monitor those risks and also try to expand the use of internal rating method. In this way we can save capital charge. The other aspect of capital management is to improve our stress testing scheme and establish and improve emergency capital management plan. There are many market changes and internal changes which will bring big impact to our capital levels. While solving the real economy, while increasing our lending at a fast speed, this will have a pressure on our capital levels. To be frank, We have a strong motivation and aspiration to increase our lending. Such motivation and aspiration comes from our responsibility to serve the real economy and to play the role of a big bank. And also it comes from our business development needs and our need to increase the profit. Scale increase comes from capital increase. Therefore, we will set up and improve our capital emergency management plan. When external environment deteriorate, when the business environment change, when we want to increase the capital lending, we will optimize asset structure and control asset growth speed so as to maintain adequacy of our capital. That's several points about the capital management. Different banks have different capital adequacy ratios. Bank of China among bigger banks is enjoying very good capital adequacy ratios and we have prepared emergency plans already and capital replenishment and management. Please rest assured about our capital levels. About our dividend payment policy, it is normal for investors to pay special attention to our dividend payment policy. Looking at the 14th five-year plan goals and the capital plan goals, in considering shareholders' requests, the needs of business development, regulatory requirements, and other factors, we will decide a rational annual dividend payout policy, which remains unchanged with the previous policy. Our big shareholder set up the dividend payout ratio of 30%, which remained unchanged for many years. Without special conditions, we will not change that. Please be confident about our consistent policy under this payout ratio. In 2021, Share price, average price, 2.81 yuan. And dividend per share, 0.2 to 15. So payout ratio increased by 0.8% as compared to last year. Peer's information is not available yet. However, if we look at 2020's figure, Bank of China's share price is not the highest. In 2020, because of the impact of a pandemic and other factors, our average price was only 3.41 per share. However, dividend payout ratio 5.78%. So it means that 30% of dividend ratio, such a share price to dividend ratio, although 5.78% is not very high, but under the current complex situation, such a 5.78% of dividend ratio dividend to share price ratio is a rather stable income for you and also for individuals buying BOC share is a rather good choice. If you look at wealth management tools or fund placement tools, If you do your own choices of your portfolio, if you can arrive at 5.78% of return, it is rather handsome return. So we will maintain our dividend payout policy, maintain this relatively high dividend to share price ratio. Thank you. Thank you, Mr. Liu. On behalf of small shareholders, I want to thank President Liu. Just now, President Liu talk about our capital adequacy ratio, which will satisfy the regulatory requirements. This is an assuring worth for the small and medium-sized shareholders. And Mr. Liu also used specific figures to show us the share price to – the dividend to share price ratio, which is a good reward to small shareholders. The second question is about digital RMB. The investors said when they look at the Winter Olympic Games, they experience Bank of China's digital R&B service. They hope to know more about Bank of China's digital R&B services and the future plan. I would like to give the floor to Mr. Wang Wei, the VP of the bank. Thank you for your interest in digital RMB. This is a hot topic. According to PBO says release the pilot plan of 10 plus 1. Winter Olympic Games pilot is the one among 10 plus 1 pilot in Winter Olympic Games and the Paralympic Games. Bank of China is the only bank who has sponsored winter and summer Olympic Games. We become the payment receiving and settlement bank for digital RMB. We make a good preparation for this work and provide soft wallet, hard wallet to digital RMB service. Especially for foreign foreigners coming to China for Winter Olympic Games, we launched hard wallet called ice chip and snow ring. And we also provided to the public cozy account entry hard wallet. We also provide automatic exchange machine and other products. to promote digital RMB. All of this shows that digital RMB, the latest result of our IT financing, became the dominant payment method during the Winter Olympic Games. Good achievements have been made through digital RMB pilot. The achievement can be reflected on two parts. First, the product and the system is rather stable. The Winter Olympic Games have participants, including sportsmen, volunteers, audience. During the pilot period, there is no problem with the product or with the system. So we have no error, no failure, no customer complaints with digital RMB. Digital RMB app hard wallet have won market recognition. Second, digital RMB is proven to be convenient and it is much welcomed by the public. Digital RMB is the legal tender issued by the country. It's easy to have access to digital RMB. We can have a non-contact payment with digital RMB. It can protect your personal privacy and can protect you from the virus. So it is much welcomed by the sportsmen and audience. In other pilot regions, digital RMB provided by Bank of China The total amount increased exponentially, and we also established many scenarios for using digital RMB. In future, we will make use of our experience learned during the Winter Olympic Games, promote products and play the spirit of Winter Olympic Games, further promote hard wallet, Internet of Things, and push ahead with pilot work for digital RMB. further optimize data-to-RMB systems and service levels. integrate digital R&B into consumer finance, inclusive finance, green finance, and other strategic scenarios, further improve digital R&B ecological system, and use digital R&B to cover online platforms, education, schools, bank-to-bank cooperation, shopping, transportation, e-government, and other areas, and satisfy people's needs for food, housing, travel, tourism, shopping, and recreation by digital RMB. We hope that digital RMB will be the preferred choice and Bank of China will be the preferred bank for digital RMB. So for online friends, if you don't have a digital wallet yet, please go to Bank of China for digital wallet. Dear friends, Because of time limit, that's the end of the session for questions from investors and analysts. If you have further questions, you can contact our investor relations team and we will have your questions answered. And now we will have questions from media friends. Please keep online. Now the floor is given to Mr. Jia Tianbing, spokesperson of Bank of China and also general manager of our present office. The floor is given to Mr. Jia. Thank you, Madam Board Director, Board Secretary Mr. Mei, dear media friends, investors, analysts, I now start the media question and answer session. I believe that the media friends have come up with many questions before you come here. Because of time limit, I hope that every media friend can only ask one question. Now we will start the question process. The floor is given to the first media friend. I'm from Sensei TV, finance channel. My first question is about the 110 years anniversary recently celebrated by BOC. After 110 years, Bank of China has become a global big banking group with a solid strength and a good foundation. And standing on a new starting point, How Bank of China can seize the new situation and serve your new endeavors in new areas? Thank you for your question. The good inheritance of historical legacy is to be innovative about the future. Bank of China have produced 14th Five-Year Plan. for answering your question. And now the floor is given to Mr. Liu Jin. Thank you for your question. Thank you for bringing us back to the ceremony when we celebrate our 110 years anniversary. Bank of China is the only bank in China which has been operating for 110 years on a consecutive basis. Bank of China has just held our ceremony, which is very simple. And all people who have worked for Bank of China, including old employees and new employees, feel proud of ourselves, feel excited about our own bank. After this ceremony, the management, the board, and general managers, deputy general managers of all departments, are reflecting on the same question as you have asked just now. Standing on the new starting point, how can we seize new opportunities and make new achievements? As you may know, last year, in line with the 14th Five-Year Plan of the country and the 2035 Long-Term Vision of the country, we printed and published the group's 14th Five-Year Plan identified the development orientation for the next five years. Such developmental goals can help us to seize new opportunities and make new achievements. To be specific, we hope that we can follow the One Body to Win strategic development pattern position our group well in economic development of the country, in helping the dual circulation of the country, and we should give full play to our comparative advantage, play a bigger role in contributing to the country. One body to win by that, I want to further clarify this strategy. One body means we will focus on development of commercial bank because we have the largest share of overseas banking asset among all domestic banks. Domestic asset and overseas asset and the profit accounted for the largest share as compared to other banks. Asset overseas was 24% of the total profit 20 percent of the total.

However, 75 percent of the asset and 80 percent of the profit are still generated domestically. As you know that we are among one of the SOE state banks and representing the financial strength and also play a pivotal role in the national economic development. Currently, when we have seen some headwinds of the globalization, while the pandemic has given us unprecedented shock, while we are facing the triple pressures domestically when it comes to the economic development. As one of the largest banks in China, BOC should implement whatever required from the central government. We should provide a better service for the society, and we would be able to carry out the missions of being integrated to the world and provide better services for the society and also provide better service for the real economy. Well, during this process, we can also fulfill our high-quality development per se. So this is first and foremost our own strategic position. We are one of the largest scale of the state commercial banks. So in such a big landscape, we are having a pivotal role. Since having such a pivotal role, responsibility and a contribution should be made. Two wins, and one win is internationalization. The other one is the comprehensive development. I would like to focus more on our understanding of the internationalization and globalization, which is one win. as I have mentioned, we have just finished the commemoration of the 110 years of the anniversary of BOC. For all these 110 years, we have pursued the goal of internationalization and globalization. Not long ago, we have given the whole society an introduction and during the advocacy process we've made it clear that BOC, starting from the inception, it is an international and global bank. Two days ago, I let some of the customers to visit the BOC museum located in Xijiang And we've seen the first note issued by BOC. And on the front, it is 中国银行 in Chinese. And at the back, it is Bank of China. As you know, note is a representation of sovereignty. Usually, the official language would be marked. However, even at that time, English Bank of China was printed at the bank of the note. This is a snapshot of the internationalization of BOC. Well, when introducing the BOC, we would divide it into 1912 to 1949, and from 1949 to 1979, and from 1979 till now, several stages. And before the liberation and before the founding of PRC 1929 we have set up the London office which is our first office and in 1930 the Tokyo branch and then in the 1939 we have set up in the New York office and also we have the New Zealand and also in 1912 after we set ourselves up we also set up the first overseas representative office in Hong Kong in 1917 So after the founding of PRC in 1979, we set up the first overseas branch in Luxembourg, which is the first after liberation. So these are the institutions set up during the history and also after the liberation and during the processes of opening up and reform, BOC has played a pivotal role for the opening and reform in terms of the trade services as well as foreign exchange services. I have several points to share with you. After the founding of PRC in 1949, BOC has extensively extended its foreign exchanges and becoming a bridge of bridging the gap of the domestic market with overseas market. We have set up with more than 2,000 branches and overseas banks setting up such business relationships with more than 120 countries. And for the first 20 years of the opening up and reform, we have supported more than 85 percent of the aerospace company and more than 80 percent of the shipping company, and also more than 70 percent of the textile industry, and also provided the support for the nuclear power plant, it becomes the main source of funding for the opening up and reform. And in 1994, we have also become the bank for the Hong Kong currency and Macau currency bond insurance, so playing a very important role in this regard. And also we have provided the support for the infrastructure, railway, subway, airports, shipping, foreign trade, we have provided a large amount of the loan which has played a pivotal role in supporting the prosperity and the stability of Hong Kong and Macau. I don't really want to further illustrate all these stories because many of the media friends are the new audience, perhaps it is a chance for you to know more about the stories of BOC. But of course, some other journalists might have already heard these stories for multiple times. The reason that I want to have such repetition is not for the purpose of the sake of repetition, but under such a complex and sophisticated external environment, BOC as an international bank at the very inception should be able to play a bigger role in such a changing global landscape. How can we play a better role? First of all, we need to maintain our front-runner position in the international business. As I have illustrated in the results released in all the 13 cross-border businesses, we are ranking number one among our peers. For example, international settlement, cross-border RMB, as well as cross-border capital, cross-border bond issuance, and also the cross-border green bond mechanism. BOC has been ranking number one among our peers. of all the cross-border businesses for example if we can look into the hot topic of the green financing BOC when it comes to internationalization has been making some constructive explorations the green bond underwriting overseas amounting to 23.4% in the Bloomberg ranking. We are ranking number one among the Chinese banks. Well, at the same time, in England, U.S., America, we have participated in the USG-related Green Bank and also in the Bloomberg Global Bank. grain finance and sustainable bank. We are also ranking number one among the Chinese banks. Other than these business indicators, globally we have widely participated into the PRB and we have become the TCFD supporting organizations. We have also participated into the pilot working group of the PRB Financial Product Sustainability. We have also participated into many of the Asian related institutions and also we are the member and co-chair of the GIB, and we have awarded the best practice in the Belt and Road Green Finance. So these are several achievements that we've got in terms of the achievement we have in internationalization and globalization. So in the international and cross-border business, I would also like to reiterate with our colleagues that we should be able to safely stand as the frontrunner among our peers. This is our mandate and our responsibility in this new era. And secondly, we should have a better play of our strength of internationalization, fully leverage our overseas branches and our talent pools overseas. We have a representative office of branches in 62 countries. We have a staff size of 15,000 overseas. well at the same time we also have a very long history operating overseas so currently when the china financing industry are embracing a high quality opening up and under the backdrop of an improvement of the internationalization we should fully leverage these strengths in the product innovation service innovation technological innovation we should make further explorations so that we would be able to achieve the results as expected from the society so under this new era your question is actually targeted on Looking into the future, how can we better play the role of the BOC? So I hope that I have already addressed your questions. Thank you, President Liu, who has an introduction of the history in a retrospective manner and also stressed the responsibility of BOC. We would like to invite the next speaker. Thank you, the senior management. I'm from China Daily. My question is that for – we have just concluded the Beijing Winter Olympic and Paralympic Games, which lasted for nearly two months. BOC is the only banking cooperative partner has – being highly acknowledged by providing such high-quality financial services. Can you please give an introduction of the features and the strengths of the BOC? And also, how can you further continue the dividend of the Winter Olympic Games? Actually, these are the questions that we are very happy to answer and address. Indeed, BOC has tailor-made the financial service packages for the Olympic Games. Now we would like to give the floor to the evp bunch of home to answer your question thank you the journalist uh... from china daily and also for your acknowledgement of our financial services uh... actually president you has already given your introduction of the services providing for the winter olympic games to better serve uh... the olympic and winter olympic games uh... our mandate and we have been prioritizing our tasks and we have regarded it as the priority among all the priorities. We have fully implemented the deployment of the central government at the State Council. We have provided financial services which is featured by zero infection, zero incidents, zero errors, zero complaints. And I believe this speaks volume of the efforts that we've made. And the BOC gave a full play of the service advantage, which featuring internationalization and a professional service. We have provided 28 foreign currency cash services, foreign language consulting service, and 24-7 airline autobank services, which has achieved acknowledgement from the Olympic Committee, Mr. Bacher, and also Mr. Sama Lenchi as well. And just now we have also talked about the digital currency in the Winter Olympic Games. We believe the results of the digital transformation also reflected that we have showcased the sports scenario to support the consumer growth so as to support the winter sports. That is why President Liu has mentioned if you want to engage in the winter sports, then BOC is the right bank for you to engage. And we have altogether extended a credit of over $60 billion for the Winter Olympic-related projects. So we have signed up ,, who have got three medals and one silver. a wonderful performance. There are many service items in the Winter Olympic Games. Because of the time limit, I wouldn't have further illustration. For the continuing dividend that we can further yield, it has already ended, but such a spirit for the Winter Olympic Games is still continuing. We believe that the success of the Winter Olympic Games will be a buttress and support for the future prosperity of the winter sports and fully leveraging the image that we have set up during the Winter Olympic Games. We would be fully implementing the concept of President Xi in advocating ourselves into building a very strong country in winter sports. We have also embraced the new winter sports plans and the BOC will just tailor-made itself into a bank providing better services for the winter and also sports-related projects. We will expand our loan of more than $200 billion to fully support the comprehensive development and the green development of the sports, providing services for winter sports and for other athletic sports, and being able to provide better services for the digital transformation of the sports scenario, while at the same time trying to inject more capital into the sports businesses, we would also be able to realize our own development in the due course. Thank you very much. Thank you, Mr. Chen, and empowering the development of the winter sports and the sports industry as a whole is a very long-lasting goal of the BOC. We would like to give the floor to the next journalist. Thank you. From First Finance, the green transformation has already become the future growth driver for the economic and society growth globally, which has also given us tremendous development opportunities. Would you please give us an introduction of the green financing business in BOC, and how are you going to have a differentiated strategic position? And we believe that it is one part of our eight priority areas, and the green finance would be one priority area into our 14th five-year plan so that we would be able to achieve a very high-quality development of the green finance. Thank you very much from the journalist of the First Finance. BOC has been attaching great importance of the green low-carbon transformation, and it has already been listed as one of the eight priority areas in the 14th five-year plan based on the principle of one body and two wings. We would give a full play of our strength of internationalization and comprehensiveness so they would be able to mutually reinforcing and 2021 had witnessed a comprehensive leap forward development of green finance for BOC from corporate structure and policy systematic approach. We have an overarching top design. The chairman of the board has been playing a leading role in the green financing leading group. We also have the green financing committees. So in all levels and across all teams, we have set up the green financing teams so as we would be able to mutually put forward the development of the green finance and among all the banks we have set up the BOC 14th five-year green financing plan and coming out with the action plans of the carbon neutral and the carbon peak. We have come out with all the targets for the 2021 to 2025 in terms of carbon emissions.

During the 14th five-year plan, we will provide no less than one trillion yuan of the support to green industries with the year-on-year increase. Domestic commercial banking plays a very important role. At the end of last year, our green finance balance was more than 1.4 trillion yuan, increasing by 57%, the highest among the industry. In terms of the green bonds investments and underwriting, we are number one among commercial banking and also in terms of the Domestic green bond issuance, we are also number one. And we have issued the first publicly placed transition bonds among global financial organizations. We also are the first to issue the green bonds featuring biodiversity and the first recoupling bonds featuring sustainability. I also want to point out that this year, according to the four elements of TCFD and the six principles of PRB, we provide and disclose information. That's to say, we provide information disclosure according to the international standards. If you read our annual reports, you will get more information. And also in terms of comprehensive services, Our bank provides a green fund, green wealth management, green leasing, green insurance, green equity investments, and other comprehensive products and services. In addition, at the group level, in the past three years, we have accounted the BOC's own carbon footprint, covering more than 11,000 BOC branches and institutes in 62 countries and regions as well as in the Chinese mainland in the future. With the good top-down design, we will continue to do a good job in terms of green finance development along the principle of one body and two wings. We will continue to improve the top-down design. We will give more policy support to green finance, and we will also provide more incentives so as to increase innovation. And the second, better synergy and collaboration. BOC has advantages in terms of global operations, international collaborations, and comprehensive services. We also benefit from the synergies between and among domestic commercial banking, overseas branches, and affiliated companies. Third, risk management. our bank's own risk management. For the sake of national economic development, we will also promote the adjustment to the industry structure of credit authorisation so as to prevent the risks from transition. Fourthly, BOC will also do a better job in terms of managing our own carbon footprints. BOC is fully supportive of the double goals of the carbon neutrality and carbon peaking, and we will try to achieve the synergistic development between the economic environment and the social effect. Thank you. If you go to our website, you will also get more information and the full report. Now, let's have the next question. Yes, the next question, please unmute yourself. I'm from Sina.com. My name is Pan Xiaochu. I'm very happy about this opportunity. My question is about cross-border wealth management connect, which was kicked off from last year by the central bank. The market is very interested as it will bring new opportunities for domestic banks for wealth management. Cross-border business is BOC. competitiveness. So I would like to know your progress, your development strategies, and also your forecast of the BOC personal cross-border financial services. Thank you, Qiao Chu. You are right. BOC is the most globalised company the bank of the country. And we, of course, will continue to play a very important role in terms of double circulation and in terms of cross-border financial services, in terms of a higher level opening up of the country. EVP Lin Jingzhen will answer the question. Yes, thank you. As you have pointed out, cross-border financial service is the BOC's conventional competitiveness. As a veteran at the BOC, I'm proud to answer your question. Then for the Cross-Border Wealth Management Connect, it's an important pilot project under the framework for the personal account, capital account opening up as compared with the existing mechanisms such as Hong Kong and Shanghai Connect, Shenzhen and Hong Kong Connect. The Cross-Border Wealth Management Connect actually has the banks as the most important sales channels for the cross-border wealth management market. It's very important. It's mainly oriented towards the residents in the Greater Bay Area, and since its commencement for the Cross-Border Wealth Management Connect, it has made a lot of progress And BOC has maintained our competitiveness. According to the latest regulatory data, by the end of February this year, BOC had 14,700 clients for the North World Connect and the South World Connect programs, accounting for 60% of the market share. The two-way fund transfer continues to grow. Then for the cross-border wealth management connect business strategy, it's the following. BOC has our branches, our very professional colleagues in the Greater Bay Area. We have comprehensive services. We have synergies between domestic and overseas branches. and also between the domestic commercial banking with the wealth management and fund management of the securities company. And therefore, we will continue to push forward the business procedure optimization and the client experience improvement. We will make more progress in terms of the wealth management product selection and investor services. BOC will monitor the latest regulatory policies and requirements to maintain our competitiveness. We have more than 100 years of experience and competitiveness in terms of cross-border, cross-disciplinary and cross-industry service capabilities. We will provide comprehensiveness in terms of settlement, bank accounts, consumption payments, investments, and the real estate purchases, et cetera, for the personal clients. That is also a contribution to the prosperity of the Great Bay Area. In the next step, we will promote the digital transition of the cross-border business, including the cross-border Go APP, the personal banking app. the personal online banking, mobile banking, cross-border special column, the small, mini program, et cetera, mainly targeted at clients who are overseas students, tourists, expatriates, or non-permanent residents. In this way, we provide comprehensive financial and non-financial services to cross-border clients. And the second, to take advantage of the new the country will continue to open up and there will be more trade and investment facilitation and freedom policies. BOC has a one-body, two-winds strategy. BOC also has a good collaboration between domestic and overseas business. In that way, we will take advantages of the new business opportunities from personal trading and capital account reform. we will provide more services in terms of the settlements for cross-border procurements and the trade cross-border e-commerce, foreign-related equity transfer, etc. Dear colleagues, the international political and economic situation is complicated. The pandemic is due, not vanished yet, but the country's financial sector will continue to open up and there will be more international corporations, cross-border consumption will pick up. So we are very confident in the prospects of the cross-border financial services. BOC will continue to maintain our competitiveness and will continue to be the market leader. Thank you. Yes, he has pointed out that the cross-border financial service is our conventional competitiveness. It will be more comprehensive, including the cross-border wealth management connects. The next question. Yes. Many thanks to the management for the opportunity. I'm Chen Yao from the Phoenix.com. My question is, at the end of last year, China's regulator issued management measures for G6 TLAC, which already were effective from last year. BOC is a G-SIP, so I would like to know your progress in terms of attaining or complying with TLAC. Especially, I would like to know your plans for the necessary capital replenishment. Thank you, Chen Yao, for your question. You are right, BOC is the first G-SIP Chinese bank. We are the G-SIP. We are also the first Chinese bank to get that title. So your question is a very professional one. I give the floor to EVP Chen Huaiyu. Many thanks for your question. Yes, according to the regulatory requirements, that's T-LAC management measures from January the 1st, 2025, BOC's external TLAC risk-weighted ratio should not be lower than 16%. From January 1st of 2028, it should not be lower than 18%. And during the 14th five-year plan, our capital adequacy is reasonable. And to comply with the TLAC, the pressure is controllable. It will not affect our credit provision capability. We are doing more research upon TLAC. We are communicating with regulators. We are preparing for the TLAC-related non-capital debt instruments issuing so that we can be fully compliant with the TLAC. For the interest of the time, it's almost 7 o'clock, so we can allow for the last question. Yes, we will have the last question. Please unmute yourself. Many thanks to the management for this opportunity. From the Financial Daily, we can see that the government has issued the 14th five-year plan for digital economic development. The regulators also have issued the guidelines. I want to know BOC progress in terms of the digital transition. especially your investments and the outcome in terms of fintechs and what are the priorities for the next step? Thank you. The question is important, I think, to all financial organizations. For fintech, I will give the floor to President Liu Jin. He will answer. Thank you. In fact, it has been deliberated so often. Originally, I thought my colleague was going to answer your question, but somehow the chairperson has asked me to answer. I feel very honored. For digital economic developments or digital transition, I think it's our consensus, consensus of the whole society. The digital economy has opened up a New markets for BOC, it also has revitalized our own development momentum. In recent years, BOC has always attached the strategic importance to digital transition with a lot of progress, laying down the foundation for the future developments. From last year's press conference, to my presentation at the beginning of today's press conference, I made the introduction about the OASIS, the Enterprise Architecture Project, which is very important, which is the guarantee of a BOC digital transition. Digital transition is a systematic program, and therefore, the top leadership at the BOC assumes the responsibilities. It means also a transition from the old era to the new era. And so therefore, the organization and the institution and the policy mechanisms are very important. We are now implementing the BOC reform program for technology management institutions. The BOC headquarters has already established the leading group for financial digital transition. That's the leading group, but who is to do the job specifically? DOC now is going to establish a new department. The department's name will be Scenario Ecosystem and Innovation Department to be responsible for the products and innovation scenarios and the ecosystem building. And therefore, it will have a close contact with the technology department so as to translate the client demands and the market opportunities into real products. In that way, there will be more synergy between business and fintechs. Our teams will also be more responsive and more effective and efficient in responding to client demands with good technologies. We will also optimize incentives. We will also strengthen our IT team. These measures, I think, ensure the future success of our digital transition. Second, for the online client service capability, it continues to make progress. Just now I said that for personal banking services, last year the version 7.0 personal banking Mobile banking was already released. It has four scenarios. That's finance plus scenario, technology plus caring, intelligence plus professionalism, globalization plus full scope of services. For our mobile banking, it has monthly active clients of 71 million, the most important client service platforms. Also, we have accelerated the online procedures for the corporate business, including the IGBT, and for the SME loans, cross-border money remittances, supply chain financing, and other complicated corporate business procedures. They are now all digitalized, pushing the sales. For example, last year, the SME online business finance already had achieved a balance of more than 100 billion yuan and the new version of the corporate client online banking was 5.5 million. So, dear colleagues, as the OASIS project makes new progress and as our data governance is further Enhanced, we will further promote the online operations, data management and intelligence operations of the different business and product lines and also our enterprise level digital service capability. will be strengthened, featuring digital marketing, dynamic real-time pricing, open banking and intelligent risk control. The State Council not long ago had a meeting about the digital transition for the banks and we are studying the decisions. Given the BOC's own demands, given our own requirements for digital transition, BOC already has made our strategies and also made our plans for digital banking. Maybe for the corporate online banking version you are not very familiar but our mobile banking personal services I think you are familiar. I myself am a client of the mobile phone based banking services by four banks, including BOC. Of course, I'm president of the BOC. Of course, I'm proud of my bank. But I also have been a client to the other big banks. I have done a lot of comparisons in terms of interface friendliness, in terms of the foot functions, in terms of data security, in terms of convenience for users. I think our BOC mobile phone banking platform is really very good. It's a good choice for you.

Not only youngsters here but also your parents, your elderly friends at home can also use mobile phone banking of Bank of China. So if you are above the age of you can choose an automatic function. That is, you can choose the senior version and you can have access to bigger characters and even voice functions. And the products shown on your app is different from the products for people under the age of 50. So we have two versions, one for elderly person, and you can have a test run of our mobile banking app when you come back home. So digital transformation is an inevitable trend of commercial banking development. completion of our oasis project digital level of the bank will follow the pace of the time and satisfy corporate and individual class needs i want to thank mr thank you for your answering to the final question do you have any other add-ons to your previous answers or previous questions if no and that's We talk about the first question, that is the 110 years anniversary of the bank. The final question is about the Bank of China's digital transformation. So we want to seek new progress on the basis of our history. We have a history of 110 years. which is a very long history, which means that we have accumulated good experiences. Just now, Mr. Liu has proudly promoted Bank of China's mobile app to you as a client of Bank of China. After 110 years, we are still new and we are still still making innovations and enable us to provide more services through mobile banking and other IT. I want to thank media friends, investors, analysts for participating in this result release. I want to thank all the friends who are online to watch this results release. If you want to know more details about our results, please get logged onto our website They are detailed presentation of our data and you can have access to our annual reports online. And if you have further questions, please contact us at any time. Mr. Youjin have one more word. I forgot that Mr. Jiaqianbing will do the summary. Before his final summary, I want to insert a few sentences. I want to offer special thanks to journalists, analysts and media friends to share your evening with us. In this results release, Bank of China's business operation market influence and our brand cannot develop well without your support. The city management board members and all the people present here from Bank of China will learn from best market practice, be innovative in providing better product and services. In this way, Bank of China's comprehensive strengths and the market image can be enhanced to live up to your expectation. As mentioned by Mr. Jia Tianping just now, after this press release, we will also arrange some online roadshows, only online, no in-person because of the pandemic. And we will share with you more development story about BOC and new feelings and new learnings of BOC. So our roadshow, it seems that our past roadshow don't lift our share price. This is a long-term phenomenon. However, I suggest strongly all the analysts and the investors to not only look at the share price but also look at the dividend, not only look at capital market growth but also look at our stability, not only look at BOC's stress as a market-based commercial bank but also look at the advantage of a socialist country. So for Bank of China's share, please be brave to buy it. And we expect your big orders. And we expect a stable capital market and a stable growth market economy. And there is rain outside. And last year's results released happened on March 30th, which have a full raining day. Spring rain is very precious. What's more precious is the confidence and support from investors and analysts. Now it is raining again. Tomorrow it will not rain, although we move ahead one day. It is still raining, such a small rain. Let us feel your trust and support to Bank of China. We expect the spring rain can bring health, good mood and also wealth to all of you. I want to thank Mr. Liu Jin for your summary. about not only, but also. And we would like to thank you for your support to Bank of China. Thank you for your attention. That's all for today's