Industrial and Commercial Bank of China Limited

Dear investors, analysts, and friends from the media, good afternoon and welcome to ICBC's 2026 interim results announcement. I am Dong Jianjun. Our interim results have been released. We'd like to thank global shareholders for your recognition and support for our investment value. We've attached great importance to IR, media relations, and market capitalization management. We've been maintaining open, candid and efficient communication with global investment research institutions and the media. For 20 years since our listing, we've always worked together with our investors. Here I'd like to express our sincere thanks to all shareholders and friends from the media for your long-term support. Today's announcement is held both on-site in Beijing and through a global webcast. We are also pleased to have some investors, analysts, and media friends here with us in person. First, let me introduce the members of our senior management and the directors attending today's announcement. President Liu Jun, SEVP Mr. Wang Jingwu, Zhang Weiwu, Yao Mingde, Zhang Shouchuan, and Zhao Guide, Board Secretary Mr. Tian Fenglin, and our directors. Mr. Dong Yang, Ms. Zhong Nantao, and Liu Fang, Ms. Walter Horn, and Mr. Chen Guanjin and Li Weiping. Now I'd like to invite our Board Secretary, Mr. Tian Fenglin, to present our interim results. Investors, analysts, and friends from the media, good afternoon. Welcome to ICB 52026 Interim Results Announcement. Thank you for the continued interest and support. Let me walk you through the highlights of our operations for half one. This year, guided by party building and driving our five transformations, we've had a strong start to the first half of the five-year plan. The traits of being large, stable, excellent, and strong are shining through the foundation for high-quality development and high-level security. More solid are value creation, market competitiveness, market influence, and risk management capabilities keep improving, resulting in a high-quality maybe-your-answer sheet that shows clear upward momentum for steady progress in business with by the end of June. Our total assets were 57 trillion yuan per half month. Operating revenue was 446 billion, up 9% YOY. Fee income had 69 billion, up 3.3%. And net profit reached 176 billion, up 4.54%. Our NIM was at 1.29%, up one bit from last year. NPR ratio was 1.29%. down two bips from the end of last year, showing improvements in asset quality. Capital adequacy ratio was 18.57%, provision coverage ratio 217.58%, keeping our risk-buffering capacity solid. On the balance sheet side, loans reached nearly 32 trillion. Investments hit 18.63 trillion, up 1.73 trillion, or 10.2%. Deposits were 39 trillion, up 1.86 trillion, or 5%, to give investors an even better sense of reward, and backed by the strong results, we raised our interim cash dividend payout ratio to 31% for 2026, after corporate governance procedures will pay out 1.511 yuan per 10 shares, tax-inclusive, totaling about 50% Thank you for your attention. are constantly improving our forward-looking early warning and bottom-line controls, building out a comprehensive risk management system. Our enterprise-level smart risk control platform is now fully live. Views, measurements, early warning, and decision-making, the four centers are established. Our NTI ratio was 1.29. The loan provision ratio was 2.8%. Provision coverage ratio was 217.58%, up 3.98 percentage points. Thank you very much. Almost $4 trillion in pension finance. Total assets under management hit $6.52 trillion, up 10.29% in digital finance. Loans through core digital economy industries reached $1.26 trillion, up almost 20%. We wrote out our RMB CFS. We were also approved by jointly serve as the RMB clearing bank in Africa with Standard Bank of South Africa. Bending our RMB Clearing Network to 19 African countries where the Standard Bank Group operates. In half, one cross-border RMB business volume hit 5.5 trillion. In Digital and Intelligent Momentum, we are fast-tracking the building of AI ICBC and creating a 1 plus 1 plus 3 system. The first one is enhancing ICBC Zhiyong Tech Foundation, rolling out the pilot AI Plus initiative. so that ICBC stays in the top tier of domestic free tech development. The second one is building up the ICBC data vault space, forming an enterprise-level data application ecosystem, supporting our business. The three refers to building three small smart platforms, forming an ICBC AI agent matrix for corporate clients, retail clients, and our employees. While giving our 400,000 employees a new tool to boost the economy, the exclusive AI agent for personal relationship managers delivered over 22 million service interactions on comprehensive services where a centurion client needs to provide a CFF. The incremental growth in loan and bond investment top $3 trillion. We are deepening the ICBC tech finance equity service brand and pushing under AIC equity pilot business. Our costly scale hit $33.7 trillion, ranking first in the industry of securities investment, insurance assets, pensions, and QD products. We have provided treasury services to 17,000 core Enterprises. Overseas institutions have total assets of $511 billion USD and pre-tax profit of $3 billion up 15% YOY. The net profit was $12.9 billion up 65%. On the ecological system, we are making solid strides in fundamental GBC Plus projects to drive Thank you for your attention. Through our 10,000 miles 20 marketing campaign, the three ends of GDC are driving traffic to each other and mutually empowering one another, building a great internal circulation fund. We are organically integrating ESG and sustainable development into our operations. Looking ahead, ICBC will step up as a leading bank, as main force serving the real economy, the blast for financial stability, the trailblazer for operational excellence, and the benchmark Mark for strengthening core responsibilities. We will keep our strategic focus step of execution. We will make sure we get the 55-year plan off to a great start to ensure a sustainable value return for domestic and overseas shareholders. To give you more opportunity to raise questions, we suggest each question for one guest and please identify yourself before raising questions. Now for the first question, the lady on the left in the first row. Thank you very much. I'm Shen Jun from Huatai Securities. Congratulations. ICBC achieved impressive results. My question is, could you highlight the highlights for half one and for the full year, what is your outlook for revenue and net profits? We have seen that since this year. The banking has entered into deposit repricing trend. Could you share with us the change? And what is your outlook for NIM trajectory? Thank you. Thank you for your question. Regarding the half-wine results, the board and management rate them as proactive and progressive. This is not only because we further consolidated our operational foundation in a complex environment, but also because our strategic transformation is continuously turning potential into momentum. Here, I'd like to expand on board Secretary Tian Feng's overview. First, this progress benefits from the full recovery of our value engine. In half one, the group achieved operating revenue of RMB 446 billion, up 9.1 YOY. Approaching double-digit growth on such a high base is not easy. While deposit repricing helps, it is fundamentally the result of synchronized revenue boosting measures across the entire chain. Structurally, NII, non-interest income, and net fee income all rebounded. All four segments, domestic, overseas, subsidiaries, and head office, and retail, corporate, institutions, and markets achieved positive revenue growth. Behind the strong restart of this value engine is our consistent principle of shared responsibility of business lines and regional blocks. We anchor the business orientation of both lines and blocks on value creation. We build a strong link between process and results. We earn the trust of the market, shareholders, and employees. Second, our proactive approach demonstrates confidence and discipline in risk management. From the data in half one, we marked RMB 8, 1.9 billion of resources for NPL write-offs, representing the strongest efforts in recent years. As a result, NPL ratio was reduced to 1.29%. Provision coverage ratio increased by nearly 4 percentage points. Our attitude is that we do not seek short-term gains We focus on addressing existing risks. We do not pursue absolute targets alone. We aim for sound and stable fundamentals. We do not seek zero risk. We pursue a rational class balance between returns and risk-cost finance. Ultimacy reflects real economic changes, and the real economy will inevitably be reflected in banks' financial statements. with an asset base of 57 trillion. Our approach to balancing development and security is fundamentally not about speculative bets. It's about comprehensive allocation. The ultimate reference framework for asset allocation is a national balance sheet. This means ICBC has embedded the stabilizing foundation of the Chinese economy into the core of our asset allocation framework, allowing us to capture the long-term growth opportunities. are rising from China's development. Third, this progress is rooted in the conversion of growth drivers through reform and transformation. If half-growth rely more on scale, future development must rely on deepening reform to reshape the growth equation. Through the steady rising contribution of non-interest income overseas and subsidiary revenue in recent years, a clear trajectory has emerged. ICBC is accelerating its shift away from the single growth curve of traditional credit seeking new drivers in the vast blue oceans of comprehensive international and digital intelligence operations. Diversified operation converts licensing advantages into capabilities to serve the real economy. We have made the, for example, we support charging stations, energy storage, and computing power procurement while financing plus easing We convert network advantages into financial infrastructure that serves RMB internationalization and facilitates the dual-curve circulation. We broke the deadlock with a direct RMB conversion through a syndicated loan, cutting the client's comprehensive financing costs from over 20% to 5.7%. Relying on the group self-built clearing system, we achieved second-level instant cross-border RMB clearing. We have seen the changes. In 1980s or 90s, if internationalization means the flow of other currencies, now the internationalization means the efforts around RMB and the going global of RMB. ICBC is providing financial escorts for enterprises going global. Digital Intelligent Operation converts technological variables into core constants that reshape productivity. The fully self-controlled ICBC Zhiyong large model platform has not only taken root in over 600 scenarios, but also spilled over to industry partners, helping SMEs harness AI at a lower threshold from the point of self-empowerment to the point of eco-empowerment. This is the underlying code for our digital intelligence drive to convert old and new growth drivers. These facets are not just really funnels to ICBC's transformations, but also mark true growth matrix on our financial statements. New tracks are continuing converting to revenue inflows, hedging against the headwinds of narrowing interest rates, margin, and building new pillars for ICBC's future development. Regarding margin, The data shows a trend of marginal stabilization with deposits repricing being the most crucial supporting factor. This is a common value factor for the banking industry and large banks with their fundamentals of scale, channels, and customer base can more smoothly achieve synergy among volume, price, and risk. Of course, as the maturity volume of existing time deposits decreases and the interest rate spread between old and new products narrows, The supporting effect of the repricing dividend on NIM will gradually weaken. Therefore, we will continue to deepen the proactive fueling management of assets and liabilities. By optimizing the structure and tapping the potential for liability cost reduction, we will strive to consolidate margin stabilizing and trend. We are confident the full year in continuously forging long-term value that transcends cycles for our shareholders and investors. Thank you.

All right, I will take the second question. Sir, on the row two, in the middle, thank you for the opportunity. I'm with Everbright Securities. My question is about asset quality. What is the overall asset quality in the first half of the year? Can you elaborate on the situation of the asset quality, especially on the retail, banking, and inclusive finance? Risk control measures have you taken regarding that? And can you also elaborate us on your risk control transformation? And there is any new measures taken for the enterprise level intelligent risk control platform? SEVP, Mr. Wang will take your question. Thank you for your question. In the first half of this year, although the international environment remains complex, With many uncertainties, China's economy has demonstrated strong resilience and vitality. Against the macroeconomic backdrop of new driving force and optimizing structure, ICBC has deeply implemented the spirit of the Central Economic Work Conference, adhered to the main working line of preventing risks, strengthening compliance, and promoting high-quality development. anchored the goal of becoming first class and persisted in seeking progress while maintaining stability and improving quality and efficiency. We align with the national strategy to lay out total asset, optimize the credit structure, and advance various types of asset quality control. The core indicators study improved with the NPL ratio at 1.29%, at the end of H1 this year, a decrease of 2 BP from the beginning of the year, further consolidating the foundation of high-quality development. And in the corporate sector, the asset quality continues to improve. At the end of H1, the NTL ratio of corporate loans was 1.2%, dropping another 9 BP on the base of the 21 BP decrease in the previous year. We continue to focus on serving A national modern industrial system. We conduct in-depth research on industrial planning and supporting policies and fully support development of advanced manufacturing. We have an investment and financing policy system for the manufacturing industry covering seven major sectors and 22 key areas. Layout technological innovation industrial change such as AI and connected with many projects of the 15 five-year plan, such as six networks. The credit structure is deeply integrated into the national strategy for coordinating regional development. And we have this structure of large, medium, small, macro, and individual has been further improved. And for the retail and inclusive finance segments, judging from the current situation, there is still pressure on the asset quality control. which is a common problem faced by the banking industry as a whole. From the perspective of internal management, we implement the stabilizing growth, expanding domestic demand and preventing risks philosophy and adopted a series of measures such as institutional mechanism optimization and full process risk control. and at the institutional and mechanism level, we optimized the organizational structure and assessment constraints. Continue to train high quality talents adapted to the transformation development. Comprehensively strengthened promotions from customer acquisition to risk control implemented intensive post-landing Management and advanced the construction of integrated collection system for retail and inclusive finance. The front, middle and the back office, head office and branches and the various business segments have jointly formed a synergy for control. And the foundation for high quality developments At the through process risk control level, we continue to strengthen the three passes and seven color pole risk control system. In the access phase, we optimize product risk control design, connect innovative services with high value business scenarios, improve the access management and evaluation mechanism for partner institutions, deepen application of large models and perfect multi-dimensional credit strategies. By improving The accuracy of risk identification and response efficiency, we make every effort to screen and block risk at the entrance. In a duration management phase, we strengthen the iterative optimization of risk monitoring models, investigate potential risk-hidden dangers through virus methods such as negative behavior identification, and the cross verification of key indicators improve the quality and efficiency of front-end risk screening and reduce existing risk exposure. At the same time, we continue to deepen the classification management of retail and inclusive finance credit assets and move the risk resolution gateway forward by setting differentiated risk control strategies. In the risk disposal phase, we accelerate Thank you for your attention. The asset quality of retail inclusive finance loans is expected to remain within a reasonable range. And for the intelligence risk control transformation, we continue to iterate and upgrade our platform and constantly improve the integrity, synergy, and the systematicity of risk management. After the platform successfully transitioned from focusing on construction to paying equal attention to construction and application in client-side, in the H1 of this year, we continue to improve platform functions. Different applications of AI technologies strengthen coverage of retail business scenarios and empower asset quality monitoring and risk prevention and control. First, we upgrade the risk control toolbox. Strengthen the asset quality monitoring of retail businesses such as inclusive finance, personal loans and cards, enhance cross-line, cross-default warnings, improve risk screening efficiency, optimize risk control strategy deployment. And second, deepening the application of AI technology we put into production the risk control AI agent, providing digital and intelligent services such as risk knowledge Q&A, Intelligent Customer Health Checks and Risk Control Data Analysis for the First Lines of Defense, Risk Officers, Risk Managers, Reducing the Workload at the Front Line, and Third, Strengthening Full Scenario Coverage. Currently, the enterprise-level intelligent risk control platform has been promoted and applied in all domestic branches. Some Sub-Degrees and oversee institutions covering 323 business scenarios such as fund trading, product access, channel touchpoint and risk resolution and encompassing various business processes such as product access, credit granting, lending and collections. It has achieved practical risk control results in multiple aspects such as risk prevention and control. Thank you for your question.

The third question, the lady on the right in the first row. I'm from Phoenix team. How did ICBC's international business performing have won recently? PBOC has been stepping up after RMB. Liquidity Support and Expanding Offshore SS Supply and ICBC's Overseas Clearing Network has also been expanding. Could you share what measures ICBC has taken to help drive internationalization of RMB and what results you have achieved? Thank you. ICBC has been aligning our internationalization with the country's opening up strategy. We are balancing growth with security and doing our part to support the domestic international circulation. This shows in three areas. First, our international business has been growing steadily. By the end of June, our overseas network reached 69 countries and regions with branches in 32 Belt and Road countries. covering six continents and major global financial hubs. By the end of June, our total overseas assets topped 500 billion USD up 11% YOY and 4% in the year beginning. Pre-tax profit made up around 10% of the group's total. The contribution to the group is steady growing up and asset quality remains stable. Second, global service capabilities keep getting better. We are steadily boosting our ability to provide global integrated, coordinated services We are giving business our CFS. We've rolled out signature products like ICBC speed remittance, ICBC e-instance transfer. All this helps companies speed up their settlement and fix the financing pinpoints when expanding overseas. Using our clean resettlement payments and custody services along with new platforms like QR codes and third-party payments, we are constantly improving experience of the customers. The total credit balance for foreign trade companies grew by 12%. The international settlement handled by our domestic branches jumped 41% YOY. The FX hedging ratio for our corporate clients climbed to 36%, ranking first among the big five. Our global paid direct overseas service now covers 42 countries. Our cross-border and offshore custody assets broke the 3 trillion yuan mark. Third, we've continued to deepen our international cooperation platform. We've performed our role as the Chinese chair of the BRICS Business Council for certain incorporation. We've also kept expanding and upgrading the China-Europe Business Union, which covers 136 countries across 20 countries, including 51 Fortune Global 500 firms. Through BRBR, we are supporting the high-quality development of the Belt and Road Initiative. Our members and observers have grown to 216 institutions covering 79 countries and regions. Like the CIIE, the Canton Fair, the China Fair, we leverage major international expos. We are helping build the export China brand. About RMB internationalization, this has always been a strategic priority for our international business. Since this year, we've been pushing hard on three main fronts. First, we keep broadening the use cases of cross-border RMB. We launched the campaigns, rolled out comprehensive cross-border RMB financial solutions, including 10 major services, Focusing on new quality productive forces, digital trade and Chinese companies going global. For key clients, groups like SOEs, commodity traders, multinationals, and SOE, we have tailored services plans. We have one, our group handles 55.5 trillion yuan in cross-border IMB. The cross-border IMB settlement jumped by 299 billion. A 34 increase ranking first among big four. For central SOEs, the settlement volume grew by 34% and for cell commodities, it surged by 70%. Second, we keep improving the cross-border IMB payments and clearing network. We're building up our clearing infrastructure, upgrading our service capabilities, strengthening the role our IMB clearing bank play in nurturing offshore IMB market. We already have IMB clearing banks in 12 countries. In June, we were approved to serve as a joint RMB clearing bank for Africa, meaning our clearing network now stretches into 19 African countries where Standard Bank operates. Our clearing capacity keeps growing year by year. In half one, a clearing volume handled by us rose by 16% YOY.