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   Investment Highlights
 Our Strategic Goals | Our Advantages | Our Achievements 

Our Advantages

High rewards backed by leading profit level
▶ In 2016, Industrial and Commercial Bank of China Limited ("ICBC") realized a net profit of RMB279,106 million (USD40,234 million equivalent), increasing 0.5% year on year, ranked as the most profitable bank in the global banking sector for eight consecutive years.
▶ Return on weighted average equity and return on average total assets were 15.24% and 1.20% respectively, performing at a higher level within the global banking sector.
▶ Cost-to-income ratio was 27.40%, continuing to maintain its leading position among ICBC’s global peers.
▶ Equity value continued to increase with net asset value per share rising to RMB5.29 (USD0.76 equivalent), up 10.2% from the end of 2015.
▶ ICBC has remained as the company with the highest dividend distribution amount listed in A share market since 2007. In 2016, its cash dividend distribution for ordinary shares is expected to reach around RMB83,506 million (USD12,038 million equivalent) with pre-tax dividends of RMB2.343 (USD0.338 equivalent) per ten shares. ICBC has created a total of RMB730 billion (USD105 billion equivalent) in cash dividends from 2006 to 2016 for its shareholders, with an averaged percentage of cash dividends of 40.5%. Calculated with the share price at the end of 2016, the dividend yield for H shares and A shares were 5.6% and 5.3% respectively, which are well above the time deposit rate during the same period.

Rejuvenation brought by innovative development
▶ ICBC set up “seven innovation labs” including internet-based finance, big data and artificial intelligence, cloud computing, block chain and biological identification, established the corporate-level data application system across the board, and optimized the IT architecture from a high starting point, striving to build more open, flexible and powerful technological systems.
▶ It continued to deepen the big data and informatization strategy and further developed e-ICBC Internet-based finance through different products, scenarios and channels. As at the end of 2016, the open online banking platform ICBC Mobile had 253 million customers, including 66.05 million active mobile terminal users, representing an increase of 64.2%. The e-commerce platform ICBC Mall reached an annual transaction volume of RMB1.27 trillion (USD183 billion equivalent). The instant messaging platform ICBC Link had 66.49 million customers, 12.4 times that at the beginning of the year. Internet financing increased by RMB 105.7 billion (USD15.2 billion equivalent) to RMB629.3 billion (USD90.7 billion equivalent), making ICBC the largest internet financing bank in China.
▶ ICBC renovated its outlets to be more intelligent and lighter at a faster speed, formed an online-offline integrated service system, and raised its service capability through technological and service model innovations. In addition, ICBC built the O2O ecosystem with outlets as the core, to continually enhance channel exclusive service ability targeting at different customer segments.

Transformation realized via diversified operation
▶ ICBC is the largest retail bank in China. Domestic mega retail sector contributed RMB196.1 billion (USD28.3 billion equivalent) to the operating income, contributing 39.66% of the domestic institutions’ revenue. Financial assets of individual customers broke the mark of RMB12 trillion (USD1,730 billion equivalent), maintaining a leading position in the market. ICBC issued 120 million credit cards, making it the largest credit card issuer.
▶ Mega asset management and mega investment banking saw their driving forces becoming stronger, with business size and level of income leading in the market. Income growth rate of asset custody, asset management and pension businesses exceeded or came close to 10%. M&A financial advisory service took a leading position in the Asia Pacific region. ICBC ranked first in the size of bond underwriting in the Chinese market for ten consecutive years.
▶ Income structure of ICBC improved continuously. Net fee and commission income was RMB145.0 billion (USD20.9 billion equivalent), accounting for 22.6% of operating income, an increase of 1.15 percentage points.
▶ Overseas institutions and domestic comprehensive subsidiaries generated RMB21.13 billion (USD3.05 billion equivalent) of net profit, accounting for 7.6% of the Group’s net profit, an increase of 0.7 percentage points.

Worldwide reputation gained in the pursuit of excellence
ICBC took the 1st place among the Top 500 Banking Brands of Brand Finance, becoming the most valuable bank brand in the world. It was ranked the 1st place among the Top 1000 World Banks by The Banker, ranked 1st place in the Global 2000 listed by Forbes, and topped the sub-list of commercial banks of the Global 500 in Fortune for the fourth consecutive year.
▶ ICBC regards service as the foundation to seek further development and has made efforts to establish its reputation as a “bank to the satisfaction of customers” while providing excellent financial services to 5.784 million corporate customers and 530 million personal customers around the globe.
▶ ICBC strikes the balance between economic benefits and social benefits, and actively performs its social responsibilities. In 2016, ICBC has continued to be included in all the indices of the Hang Seng Corporate Sustainability Index Series, and won various awards, including “Best Social Responsibility Financial Institution Award”, “Most Respectable Enterprise” and “2016 Excellent Corporate Citizen of China”.

Note:
Currency conversion was calculated using USD1 = RMB6.937, being the exchange rate prevailing at the end of 2016.