Our Advantages

In the first half of 2022,facing the increasingly complex,severe and uncertain external environment,the Bank followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,implemented in depth the important requirements for effective COVID-19 prevention,economic stability,and safe development,and earnestly carried out the decisions and plans made by the Communist Party of China(“CPC"or the“Party")Central Committee and the State Council.The Bank made stability its top priority and pursued progress while ensuring stability.It followed the 48-character guideline and applied the working method of Three Compares.Three Reviews and Three Improves.It grounded its work in the new stage of development,applied the new development philosophy,served and integrated into the new pattern of development,and promoted high-quality development with high-quality remediation of problems identified in the disciplinary inspection by the CPC Central Committee.The Bank delivered interim results which were not only better than expected,but also better than that of the corresponding period in the past year.

Key operational indicators maintained stable while gaining sound momentum.The"strong"foundation was effectively strengthened.The Group's capital adequacy ratio was 18.31%,at the forefront among major banks around the globe; allowance to NPLs was 207.03%, indicating sound risk resilience;NPL ratio stood at 1.41%.down 0.01 percentage points from the end of last year.The "excellent"quality and efficiency was retained.While the Bank made more profit concessions to the real economy,return on average total assets and return on weighted average equity maintained at a relatively good level;NIM stayed in a reasonable range.The advantages of being "large" were effectively consolidated.Operating income,profit before provision and net profit all maintained a leading position among peers.

The Bank fulfilled its responsibilities as a large bank to serve the real economy.With a focus on its main responsibilities and principal businesses,the Bank put emphasis on key areas,gave play to the dual functions of increasing volume and structural adjustment of investment and financing,and assisted in maintaining stable macroeconomic performance with optimized financial supply.In the first half of the year,domestic RMB loans increased by RMB1.61 trillion,a record-high growth, ranking first in the market,and the increment was higher than that in the corresponding period of last year month by month.The Bank increased support to key fields and weak areas of the real economy.The growth rates in loans to manufacturing,sci-tech innovation,inclusive finance,the private sector,green fields and agriculture-related fields were notably higher than the average growth rate of all loans.The growth rates in credit loans to healthcare,transportation and logistics took the lead,which made positive contributions to containing the pandemic and maintaining stable economic growth.Among those loans,loans to manufacturing increased by RMB628.1 billion,3.5 times of the increment of the corresponding period of the previous year,and the balances of medium to long-term loans and credit loans to manufacturing both exceeded RMBI trillion for the first time.The aggregate volume and increment of loans to strategic emerging industries ranked first before the Bank's peers.The Bank issued a carbon neutrality green finance bond.first among domestic commercial banks.The balance of green credits recorded RMB3,499.9 billion.The number of inclusive loan accounts increased by 123 thousand from the beginning of the year,and the balance increased by 27.4%from the beginning of the year,achieving growth in both volume and amount.The Bank implemented "Chunrong Action"in depth and provided targeted support to foreign trade and foreign investment enterprises.Meanwhile,the Bank took solid steps to help enterprises overcome their difficulties.It deferred principal and interest repayments on loans for eligible customers,especially micro and small enterprises and self-employed individuals,effectively supporting the endeavor to keep the operations of market entities stable,ensure employment,and meet basic living needs.

Pragmatic results were achieved in enterprise-wide risk management.The Bank pursued development and safety in a coordinated manner,gave priority to active forestalling and diffusion of financial risks,and strengthened the Five-pronged Risk Management Approach,namely the overall risk management of domestic and overseas institutions,on-and off-balance sheet business,commercial banking and investment banking and other services,online and offline business,and Head Office and subordinate institutions.It checked and sorted latent risks item by item and focused on making risk management more holistic,targeted and effective.The Bank continued to make breakthroughs in asset quality.As a result,key indicators of asset quality maintained stable with sound momentum,the amount of recoveries from written-off loans set a record,and NPL ratio and overdue loan rate maintained stable.The Bank established the joint control and prevention mechanism for market risk in five fields,namely,currency,foreign exchange,bond,stock and commodity and responded to fluctuations in the global financial market timely and effectively.Market risk was thus kept generally under control.Meanwhile,the Bank steadily promoted the Year for Value Improvement internal control&compliance campaign and continued to deepen internal control and case prevention governance.It also maintained strict measures for epidemic control and production safety,to fully ensure the safety of personnel and operations.

The drive of reform and innovation was effectively unleashed.The Bank refined the strategic plan for the development of the Group,formulated and implemented the plan for deepening comprehensive reform,and put forth effort to solve deep-seated problems through reform.The strategic layout of "leveraging our strengths,tackling areas of weaknesses and solidifying the foundation"was further deepened,and key strategies related to personal banking,foreign exchange business,key regions and urban-rural collaborative development produced remarkable results.The "GBC+"projects were implemented in depth,and the momentum for high-quality development was further strengthened.At the end of June,the balance of deposits in local and foreign currencies (including interbank deposits)exceeded RMB30 trillion,and its increment exceeded RMB3 trillion for the first time.Those deposits provided a stable source of funds for serving the real economy.The total number of corporate customers surpassed 10 million,and the number of global cash management customers exceeded 10,000.The Bank earnestly performed its duties as the Chair organization of BRICS Business Council Chinese Chapter and promoted the implementation of various pragmatic cooperation results among the industry and commerce sectors in the five BRICS countries.In addition,the Bank launched the new digital brand“D-ICBC”,and it maintained the first place in the industry in terms of IT regulatory rating.