Bank Of China Unsp/Adr

Dear friends from the media, good afternoon. Welcome to Bank of China 2021 Interim Announcement. My name is Mei-Fei Qi, Board Secretary of BOC. Today, I myself and the spokesperson of Bank of China and the General Manager of President Office will co-host this meeting. First of all, I would like to introduce the leaders to you. They are Vice Chairman of BOC, President Liu Jin, Executive Director, EVP, Mr. Wang Wei, Executive Director, EVP, Mr. Lin Jingzhen, EVP, Mr. Zheng Guoyu, EVP, Mr. Chen Huaiyu, EVP, Mr. Wang Zhiheng, Chief Information Officer, Mr. Liu Qiuvan, and Chief Risk Officer, Mr. Liu Jiantong. Because of the pandemic control concerns, this interim announcement is convened. While video conference, we would first give the floor to Mr. Liu, President of the Bank, to introduce you 2021 interim results of the Bank. Then we will have question and answers. For a long period of time, dear friends from the media, Investors and analysts have paid continuous attention and support to the bank. We are deeply impressed by your support. And we have many investors and customers looking at our press conference online. Thank you for your efforts and thank you for your attention to BOC. Now I want to give the floor to Mr. Liu, President of the Bank, to introduce you about the interim results of the bank and the key work's progress and also our plan for the future. Thank you, Mr. Mei. Dear investors, analysts, friends from the media, good afternoon. Since the pandemic started, we have convened our result announcement in such a video conference way for many times. We previously hoped to have on-site press release However, many things changed our plan. Because of the pandemic situation, we can only convey our press release in such an online way. In March, we have made announcement about annual results. I have introduced to all of you that we are at the starting year of the 14th Five-Year Plan, and the Bank of China started a new phase of development and we have started a new journey to establish a global level, first level modernized banking group. Half a year have elapsed. I'm very confident to introduce you the interim result of Bank of China. We have made a steady progress on many fronts. And we have enjoyed high quality growth. First of all, the data we released today shows that we have a steady growth of fiscal results. Realized operating revenue, 302.9 billion, year-on-year increase of 5.53%, after-tax profit and profit attributable to shareholders increased by 9.96% and 11.79% respectively. Operating efficiency increased continuously. ROE increased 0.87 percentage point. reached 11.97%. Cost income ratio was 24.06%, a reduction of 2.67 percentage points. Ascent and liability scale increased steadily. Total asset exceeded 26 trillion, an increase of 7.85%. Loan amount grew by 8.44%, and also The amount of loan to total asset reached 57.18%, an increase of 0.43 percentage point. Domestic R&B loan enjoyed faster growth. Long-term and mid-term loans percentage increased. Total liability increased by 8.31%, and domestic and foreign forex deposit increased, and we have made record deposit growth. And risk control efficiency have increased. Non-performing loans, special measure loan amount and ratio enjoyed a double reduction. And the provision coverage ratio increased 6.42 percentage point to 184.26%. And we have generated capital internally, and we have supplemented our capital externally. Capital adequacy ratio increased. And also... Bank of China's market influence further increased. We have won many rewards, and also the external credit rating of Bank of China remain among the highest within Chinese banks. We also achieved good result in other aspects. First, we have support real economy. Domestic RMB loan increased by 863.2 billion, record high. Investment in local government bond, 246.4 billion, and our market share increase. Inclusive loans grow by 35.8 percent, and we have achieved to increase to control requirements of the regulator. Strategic new emerging industry, green financing also increased. We have increased our lending to manufacturing – advanced manufacturing. Long-term and mid-term manufacturing loan increased by 18.4 percent, and we also got deeply involved in reform and opening up. International settlement growth by 44 – 45.24 percent and ranked as number one in the market. Cross-border RMB clearing amount increased by 35.4 percent, number one among the world, and we also have a customer to issue bond, and we participate in the Belt and Road Project. We facilitate the development of offshore RMB bond market. Second, we focus on one-body, two-wind strategy. In the past half a year, our domestic commercial banks are developing in a good manner, while domestic and foreign foreign currency deposit increased. Well, one body, this is our cornerstone, and this is further consolidated. And for overseas deposit and the lending, they increased by 13.86%, 11.95% year-on-year. And we further enhance intensive management. We have one policy for each bank in overseas regions. and we further optimize our service networks and online channels. We further enhance our management of integrated operations. We have set up an integrated operation coordination office in seven branches to enhance customer referral and resources sharing. Secondly, we focus on development of key projects and key businesses. Personal banking contribution and the market competitiveness increased. The number of effective individual customer reached 321 million accounts, and also customer financial assets exceeded 11 trillion. While domestic individual account operating revenue, non-interest income contribution reached 48.78 percent, 56.8 percent. 82 percent, respectively, and the number of medium to high-end customers increased by a fast manner, while consumer finance further increased digitalization and other scenarios. Credit card installments grew by a good margin, and corporate accounts also enjoyed enhanced marketing and service capabilities, and the number of corporate accounts increased by 19.89 percent, and the total financial corporate asset increased by 6.58 percent year-on-year. And also, deposit from government agencies increased, pension further developed. We also updated our inclusive financing. We also promoted digital financing. Fourthly, we further promoted digitalization of the bank. We focused on two projects. One is enterprise-level architecture establishment. One is data governance. We focused on five capabilities, that is, enhancing customer experience, sharing product services, and optimize business process, enhance risk control, and enabling our staff at various levels. We are making progress in scenario development and technology enablement. In July, we have issued the seventh version of mobile banking, and we further provide special services like more scenarios in life, wealth management, and Winter Olympic Games. Fifthly, we further enhance risk management. We further strengthen our comprehensive risk management system. also achieve digitalization in risk management. In the first half, we followed the 14th five-year plan of the country and of the bank. We developed eight major finance projects, optimized the credit structure, and strengthened our credit approval management. We focused on risk-control in key areas, optimized our NPL, resolution and asset quality continuously consolidated. And for various risk indicators, we have satisfied the regulatory requirements by continuously improvement of liquidity risk, warning systems, and stress testing. Since the beginning of last year, we began to focus on top design and grassroots suggestions We have started the combining of 14th Five-Year Plan, and we pay attention to our alignment with the national strategy. After several rounds of discussion and revision, this plan have been printed out to guiding the group. We will further use our 14th Five-Year Plan as the blueprint to guide the development of commercial bank and guide our globalization and also integration. to turn ourselves into a global first-level modern banking group with activity, agility, and making breakthrough in key areas. In the next steps, we will make breakthrough in the following areas. One is promoting one body to win and develop. Second is to follow the rules of economic social development and make economic transition and promote eight major financial area. Thirdly, promoting digitalization. Fourthly, is to coordinate development and security, focus on risk management. Fifthly, we will seek growth among transition and among changes, and we will build a better culture. Bank of China will make steady ahead and try to implement the 14th Five-Year Plan and try to connect the world and creating benefits for the society, turn ourselves into a first-level modern bank. and to make our contribution to the rejuvenation of Chinese nation. Thank you, Mr. Liu, for your speech. Now we have question and answer. We first give the floor to investors and analysts. Every one of you can only ask one question. Please identify yourself before asking questions.

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