Bank of Communications : RESULTS ANNOUNCEMENT FOR THIRD QUARTER 2019

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Bank of Communications Co., Ltd.

(A joint stock company incorporated in the People's Republic of China with limited liability)

(Stock Code: 03328, 4605 (Preference Share))

RESULTS ANNOUNCEMENT FOR THIRD QUARTER 2019

The board of directors (the "Board") of Bank of Communications Co., Ltd. (the "Bank") is pleased to announce the unaudited consolidated financial information (the "Third Quarter Results") of the Bank and its subsidiaries (the "Group") for the nine months ended 30 September 2019 (the "Reporting Period"), which has been prepared in accordance with the International Accounting Standard ("IAS") 34 Interim Financial Reporting issued by the International Accounting Standards Board. The Board and the Audit Committee of the Board have reviewed and confirmed the Third Quarter Results. This announcement is made pursuant to Part XIV A of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

1. CORPORATE INFORMATION

	Stock name	Stock code	Stock exchange
A Share	Bank of Communications 601328	Shanghai Stock Exchange
H Share	BANKCOMM	03328	The Stock Exchange of
			Hong Kong Limited
Domestic Preference Shares BOCOM PREF1	360021	Shanghai Stock Exchange
Overseas Preference Shares BOCOM 15USDPREF	4605	The Stock Exchange of
			Hong Kong Limited
Secretary of the Board/Company Secretary
Name	Gu Sheng
Contact address	188, Yin Cheng Zhong Lu, China (Shanghai) Pilot Free Trade Zone,
	Shanghai, P.R. China
Tel	86 (21) 58766688
E-mail	[e-mail]

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1. FINANCIAL HIGHLIGHTS
   The Group implemented the International Financial Reporting Standard 16 ("IFRS 16"): Leases from 1 January 2019. Under the transitional provisions of IFRS 16, the Group did not restate comparative figures. Any adjustments to the carrying amounts at the date of transition were recognized in the opening retained earnings and other related items in the financial statements. For the related impact, please refer to the 2019 Interim Report which was published on the HKEx News website of The Stock Exchange of Hong Kong Limited (the "Hong Kong Stock Exchange").
   As at 30 September 2019 (the "end of the Reporting Period"), the key financial data and financial indicators of the third quarter prepared by the Group in accordance with IFRSs are as follows:

	(in millions of RMB unless otherwise stated)
	30 September	31 December	Increase/
Key financial data	2019	2018	decrease (%)
Total assets	9,932,879	9,531,171	4.21
Loans and advances to customers 1	5,206,687	4,854,228	7.26
Total liabilities	9,150,055	8,825,863	3.67
Due to customers 1	5,968,808	5,724,489	4.27
Shareholders' equity (attributable to
shareholders of the Bank)	775,337	698,405	11.02
Net assets per share (attributable to
shareholders of the Bank, in RMB yuan) 2	9.10	8.60	5.81
	January to	January to
	September	September	Increase/
Key financial data	2019	2018	decrease (%)
Profit before tax	68,986	66,527	3.70
Net profit (attributable to shareholders
of the Bank)	60,147	57,304	4.96
Basic and diluted earnings per share
(attributable to shareholders of the Bank,
in RMB yuan) 3	0.77	0.74	4.05
	January to	January to	Difference
	September	September	(percentage
Key financial indicators (%)	2019	2018	point)
Return on average assets (annualized)	0.83	0.83	-
Return on average shareholders' equity
(annualized) 3	11.80	11.96	(0.16)

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Notes:

1. According to Notice on Revising and Issuing the Format of Financial Statements of Financial Enterprises for 2018 (Cai Kuai [2018] No.36) issued by Ministry of Finance of the People's Republic of China ("Ministry of Finance"), the interest of financial instruments calculated on the basis of the effective interest rate method should be included in the carrying amounts of corresponding financial instruments and reflected in the related items on the balance sheet. The items of "interest receivables" and "interest payables" should not be presented separately. For analysis purpose, "loans and advances to customers" here does not include interest receivables of the related loans and advances. "Due to customers" does not include interest payables of related deposits.
2. Refers to shareholder's equity attributable to shareholders of the Bank after the deduction of other equity instruments divided by the total issued ordinary shares as at the end of the Reporting Period.
3. Excluding the impact of other equity instruments.

III. SHAREHOLDERS' INFORMATION

1. Numbers of Ordinary Shareholders and Shareholdings of Top 10 Ordinary Shareholders as at the end of the Reporting Period

Total Number of Ordinary Shareholders	The Bank has a total of 358,617 ordinary
			shareholders, including 324,254 holders holding
			A shares and 34,363 holders holding H shares.
Shareholdings of Top 10 Ordinary Shareholders
	Number of shares
	held as at the end			Shares pledged or frozen
Name of shareholders	of the Reporting	Percentage	Status of	Number of	Class of	Nature of
(full name)	Period (share)		(%)	shares	shares	shares	shareholders
The Ministry of Finance of the	15,148,693,829		20.40	Nil	-	A Share	The State
People's Republic of China	4,553,999,999		6.13	Nil	-	H Share
HKSCC Nominees Limited 3	14,966,923,204		20.15	Unknown	-	H Share	Foreign legal
							person
The HongKong and Shanghai	13,886,417,698		18.70	Nil	-	H Share	Foreign legal
Banking Corporation Limited 4							person
The National Council for Social	1,134,886,185		1.53	Nil	-	A Share	The State
Security Fund 5	1,405,555,555		1.89	Nil	-	H Share
China Securities Finance	2,222,588,791		2.99	Nil	-	A Share	State-owned
Corporation Limited							legal person
Capital Airport Holding Company	1,246,591,087		1.68	Nil	-	A Share	State-owned
							legal person
Shanghai Haiyan Investment	808,145,417		1.09	Nil	-	A Share	State-owned
Management Co., Ltd. 6							legal person
Wutongshu Investment Platform	794,557,920		1.07	Nil	-	A Share	State-owned
Co., Ltd.							legal person
Yunnan Hehe (Group) Co., Ltd. 6	745,305,404		1.00	Nil	-	A Share	State-owned
							legal person
CITIC Securities Co., Ltd. - Social	742,627,266		1.00	Nil	-	A Share	Others
Security Fund Share Flexible
Portfolio 6
Details of preference shareholders with restored voting	During the Reporting Period, there was no restoration of voting rights for
right and shareholdings		preference shares.

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Notes:

1. All ordinary shares issued by the Bank are not subject to any sales restrictions.
2. The relevant data and information is extracted from the Bank's register of members at the Registrar and Transfer Office.
3. The aggregate number of shares held by HKSCC Nominees Limited, represents the total number of H shares of the Bank held by all institutional and individual investors who maintained an account with it as at the end of the Reporting Period.
4. According to the Bank's register of members, the Hong Kong and Shanghai Banking Corporation Limited ("HSBC") held 13,886,417,698 H shares of the Bank as at the end of the Reporting Period. According to the disclosure forms of interests filed with the Hong Kong Stock Exchange by HSBC Holdings plc, HSBC beneficially held 14,135,636,613 H shares of the Bank as at the end of the Reporting Period, representing 19.03% of the Bank's total ordinary shares issued. HSBC beneficially held 249,218,915 more H shares than shown on the Bank's register of members. The discrepancy is due to a purchase of H shares by HSBC from the secondary market in 2007 and a bonus share issued by the Bank. Those extra shares have been registered under HKSCC Nominees Limited.
5. According to the Bank's register of members, the National Council for Social Security Fund ("SSF") held 1,134,886,185 A shares and 1,405,555,555 H shares of the Bank as at the end of the Reporting Period. In May 2019, SSF transferred 742,627,266 A shares (representing 1% of total share capital) to the designated account of decrease of shares, "CITIC Securities Co., Ltd. - Social Security Fund Share Flexible Portfolio". According to the information provided by SSF to the Bank, as at the end of the Reporting Period, other than the above shareholdings, SSF held additional 7,650,170,777 H shares of the Bank, of which 7,027,777,777 H shares were registered under HKSCC Nominees Limited and 622,393,000 H shares were indirectly held by certain asset managers (including Hong Kong Stock Connect). As at the end of the Reporting Period, SSF held a total of 10,933,239,783 A shares and H shares of the Bank, representing 14.72% of the Bank's total ordinary shares issued.
6. Shanghai Haiyan Investment Management Co., Ltd. and Yunnan Hehe (Group) Co., Ltd. are parties acting in concert as defined under Provisional Measures on Shareholdings Administration of Commercial Banks. CITIC Securities Co., Ltd. - Social Security Fund Share Flexible Portfolio is the designated account for decrease of shares of SSF. The Bank is not aware of the existence of any related relationship among the above shareholders, or whether they are parties acting in concert as defined in Provisional Measures on Shareholdings Administration of Commercial Banks.

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1. Number of Preference Shareholders and Shareholdings of Top 10 Preference Shareholders as at the end of the Reporting Period

Total number of overseas preference shareholders				1
Shareholdings of Top 10 Overseas Preference Shareholders
	Number of shares
	held as at the end			Shares pledged or frozen
	of the Reporting	Percentage	Class of	Status of	Number of	Nature of
Name of shareholder (full name)	Period (share)	(%)	shares	shares	shares	shareholder
DB Nominees (Hong Kong) Limited	122,500,000	100.00	Overseas	Unknown	-	Foreign legal
			preference			person
			shares

Notes:

1. All overseas preference shares issued by the Bank are not subject to any sales restrictions.
2. Shareholdings of overseas preference shareholders are summarized according to the Bank's register of members of overseas preference shareholders.
3. DB Nominees (Hong Kong) Limited, as a trustee, held 122,500,000 overseas preference shares, accounting for 100% of the Bank's total overseas preference shares, on behalf of all assignees in clearing systems of Euroclear and Clearstream as at the end of the Reporting Period.
4. "Percentage" refers to the percentage of the number of overseas preference shares held by overseas preference shareholders to the total number of overseas preference shares.
5. The Bank is not aware of any existence of related relationship among the overseas preference shareholders and top 10 ordinary shareholders, or whether they are parties acting in concert.

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Total number of domestic preference shareholders				41
Shareholdings of Top 10 Domestic Preference Shareholders
	Number of shares
	held as at the end			Shares pledged or frozen
	of the Reporting	Percentage	Class of	Status of	Number of	Nature of
Name of shareholder (full name)	Period (share)	(%)	shares	shares	shares	shareholders
China Mobile Communications	100,000,000	22.22	Domestic	Nil	-	State-owned
Corporation			preference			legal person
			shares
AXA SPDB Investment Managers -	20,000,000	4.44	Domestic	Nil	-	Others
SPDB - Shanghai Pudong			preference
Development Bank Shanghai Branch			shares
CCB Trust Co., Ltd. - "Qian Yuan -	20,000,000	4.44	Domestic	Nil	-	Others
Ri Xin Yue Yi" open-ended wealth			preference
management unit fund trust			shares
Truvalue Asset Management - CMB -	20,000,000	4.44	Domestic	Nil	-	Others
China Merchants Bank Co., Ltd.			preference
			shares
Bosera Funds - ICBC - Bosera -	20,000,000	4.44	Domestic	Nil	-	Others
ICBC - Flexible allocation No. 5			preference
Specific Multi-customer Asset			shares
Management Plan
Wisdom Asset Management - Ping An	20,000,000	4.44	Domestic	Nil	-	Others
Bank - Ping An Bank Co., Ltd.			preference
			shares
China Ping An Life Insurance Co.,	18,000,000	4.00	Domestic	Nil	-	Others
Ltd. - Self-owned capital			preference
			shares
China CITIC Bank Corporation	18,000,000	4.00	Domestic	Nil	-	Others
Limited - HuiYing Series of CITIC			preference
Banking Service			shares
China National Tobacco Corporation-	15,000,000	3.33	Domestic	Nil	-	State-owned
Henan Company			preference			legal person
			shares
China Life Property & Casualty	15,000,000	3.33	Domestic	Nil	-	Others
Insurance Company Limited -			preference
Traditional - General Insurance			shares
Product

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Notes:

1. All domestic preference shares issued by the Bank are not subject to any sales restrictions.
2. Shareholdings of domestic preference shareholders are summarized according to the Bank's register of members of domestic preference shareholders.
3. "Percentage" refers to the percentage of the number of domestic preference shares held by domestic preference shareholders to the total number of domestic preference shares.
4. The Bank is not aware of any existence of related relationship among the top 10 domestic preference shareholders and any related relationship between the above shareholders and top 10 ordinary shareholders, or whether they are parties acting in concert.

IV. MANAGEMENT DISCUSSION AND ANALYSIS

1. Business Review
   During the third quarter of 2019, the Group fully implemented the "186" Strategic Landscape together with high-quality development. Under the guidance of the new connotation of the strategy, the Group achieved steady development with good momentum in different businesses. As at the end of the Reporting Period, the total assets of the Group increased by 4.21% over the end of the previous year to RMB9,932.879 billion; the total liabilities increased by 3.67% over the end of the previous year to RMB9,150.055 billion; shareholders' equity (attributable to shareholders of the Bank) increased by 11.02% over the end of the previous year to RMB775.337 billion. During the Reporting Period, the net operating income increased by 11.63% on a year-on-year basis to RMB176.513 billion; the net profit (attributable to shareholders of the Bank) increased by 4.96% on a year-on-year basis to RMB60.147 billion; the annualized return on average assets (ROAA) was 0.83%, which maintained at same level on a year-on-year basis; the annualized return on average shareholders' equity (ROAE) was 11.80% with a decrease of 0.16 percentage point on a year-on-year basis.
2. Financial Statement Analysis
   1. Analysis on Key Income Statement Items
   1.1 Net interest income
   During the Reporting Period, the net interest income of the Group increased by RMB11.152 billion or 11.72% on a year-on-year basis to RMB106.327 billion, which accounted for 60.24% of the net operating income, representing a year-on-year increase of 0.05 percentage point.
   During the Reporting Period, the net interest margin of the Group increased by 10 basis points on a year-on-year basis to 1.57%.

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1. Net fee and commission income
   During the Reporting Period, the net fee and commission income of the Group increased by RMB3.065 billion or 9.76% on a year-on-year basis to RMB34.458 billion, which accounted for 19.52% of the net operating income, representing a year-on-year decrease of 0.33 percentage point.
2. Operating costs
   During the Reporting Period, the Group's operating costs increased by RMB3.047 billion or 6.41% on a year-on-year basis to RMB50.613 billion. The Group's cost-to-income ratio was 30.15%, representing a year-on-year decrease of 1.34 percentage points.
3. Credit impairment losses
   During the Reporting Period, the Group's credit impairment losses increased by RMB6.876 billion or 22.87% on a year-on-year basis to RMB36.945 billion.

2. Analysis on Key Balance Sheet Items

1. Loans and advances to customers
   As at the end of the Reporting Period, the Group's total loans and advances to customers were RMB5,206.687 billion, representing an increase of RMB352.459 billion or 7.26% over the end of the previous year, of which the balance of corporate loans increased by RMB283.617 billion or 8.81% over the end of the previous year to RMB3,502.218 billion; the balance of individual loans increased by RMB68.842 billion or 4.21% over the end of the previous year to RMB1,704.469 billion.
2. Due to customers
   As at the end of the Reporting Period, the Group's balance of due to customers increased by RMB244.319 billion or 4.27% over the end of the previous year to RMB5,968.808 billion, of which the proportion of due to corporate customers accounted for 67.49%, representing a decrease of 1.41 percentage points over the end of the previous year. The proportion of due to individual customers was 32.48%, representing an increase of 1.45 percentage points over the end of the previous year. The proportion of demand deposits decreased by 0.84 percentage point over the end of the previous year to 41.72%, while the proportion of fixed deposits increased by 0.88 percentage point over the end of the previous year to 58.25%.

- 8 -

1. 1. Investment securities
      As at the end of the Reporting Period, the Group's net balance of investment securities increased by RMB179.183 billion or 6.35% over the end of the previous year to RMB3,001.092 billion.
   2. Asset quality
      As at the end of the Reporting Period, the Group's balance of non-performing loans increased by RMB4.180 billion over the end of the previous year to RMB76.692 billion; the non-performing loans ratio decreased by 0.02 percentage point over the end of the previous year to 1.47%. The provision coverage of impaired loans increased by 1.09 percentage point over the end of the previous year to 174.22%. The provision ratio decreased by 0.02 percentage point over the end of the previous year to 2.57%.
2. Capital Adequacy Ratio
   The Group calculated the capital adequacy ratio pursuant to the Administrative Measures for the Capital of Commercial Banks (Trial Implementation) issued by the CBIRC and the relevant requirements. Since the adoption of the Advanced Approach of Capital Management upon the first approval from the CBIRC in 2014, the Bank steadily implemented and applied it in accordance with the regulatory requirements. Upon the approval of the CBIRC in 2018, the Bank ended the Advanced Approach of Capital Management parallel period and expanded the application scope.
   As at the end of the Reporting Period, the Group's capital adequacy ratio, Tier 1 capital adequacy ratio and core Tire 1 capital adequacy ratio were 14.87%, 12.72% and 11.07%, respectively, which all met the regulatory requirements.

(in millions of RMB unless otherwise stated)

Calculated pursuant to the Administrative Measures for the Capital of Commercial

Banks (Trial Implementation) issued by the CBIRC notes

Items	The Group	The Bank
Net core Tier 1 capital	671,818	590,208
Net Tier 1 capital	771,897	690,078
Net capital	902,761	817,200
Core Tier 1 capital adequacy ratio (%)	11.07	10.59
Tier 1 capital adequacy ratio (%)	12.72	12.38
Capital adequacy ratio (%)	14.87	14.67

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Notes:

1. 1. Pursuant to the Administrative Measures for the Capital of Commercial Banks (Trial Implementation), the above calculation excluded China BoCom Insurance Co., Ltd. and BoCommLife Insurance Company Limited.
   2. According to the implementation scope of the Advanced Measurement Approach of Capital Management approved by the CBIRC, the credit risk which met the regulatory requirements was assessed by the internal rating-based approach, the market risk by the internal model approach, the operational risk by the standardized approach. The credit risk not covered by the internal rating-based approach was assessed by the weighted approach. The market risk not covered by the internal rating-based approach was assessed by the standardized approach. The operational risk not covered by the standardized approach was assessed by the basic-indicator approach.
2. Leverage Ratio
   The Group calculated the leverage ratio pursuant to the Administrative Measures for the Leverage Ratio of Commercial Banks (Revised) issued by the CBIRC. As at the end of the Reporting Period, the Group's leverage ratio was 7.24%, which met the regulatory requirements.

(in millions of RMB unless otherwise stated)

Calculated pursuant to Administrative Measures for the Leverage Ratio of Commercial

Banks (Revised) issued by the CBIRC

	30 September	30 June	31 March	31 December
Items	2019	2019	2019	2018
Net Tier 1 capital	771,897	713,196	715,124	694,832
Balance of adjusted on-and
off-balance sheet assets	10,655,770	10,594,418	10,490,765	10,242,926
Leverage ratio (%)	7.24	6.73	6.82	6.78

1. Liquidity Coverage Ratio
   The liquidity coverage ratio is the ratio of qualified high-quality liquid assets to net cash outflows in the following 30 days. The aim is to ensure that commercial banks have sufficient qualified high-quality liquid assets to meet the liquidity needs of at least 30 days in the future by settling these assets under the liquidity stress scenarios subject to regulatory requirements. The Group's qualified high-quality liquid assets mainly include cash, reserves that can be withdrawn from the central bank under stress scenarios and bonds falling within the definition of primary and secondary assets in the Administrative Measures for Liquidity Risk Management of Commercial Banks. According to the Administrative Measures for Liquidity Risk Management of Commercial Banks, commercial banks with an asset scale not less than RMB200.0 billion should always meet the minimum regulatory standards with a liquidity coverage ratio not less than 100%.

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The daily average liquidity coverage ratio of the Group in the third quarter of 2019 was 125.27% (the daily average within the quarter is the simple arithmetic average of daily data of the quarter, the number of daily data on which the average is based is 92), which decreased by 0.35 percentage point over the previous quarter mainly due to the increase of net cash outflows. The details of liquidity coverage ratio and the average of specific items thereof in the third quarter are listed as follows:

			(in millions of RMB unless otherwise stated)
				Total	Total
				unweighted	weighted
Serial number	value	value
High-quality Liquid Assets
1	Total high-quality liquid assets (HQLA)		1,743,292
Cash Outflows
2	Retail deposits and deposits from small business
		customers, of which:	1,580,052	148,610
3		Stable deposits	185,164	9,121
4		Less stable deposits	1,394,888	139,489
5	Unsecured wholesale funding, of which:	4,008,987	1,771,488
6	Operational deposits (excluding agency business)	2,263,038	564,450
7	Non-operational deposits (all counterparties)	1,741,141	1,202,230
8		Unsecured debt	4,808	4,808
9	Secured wholesale funding		24,281
10	Additional requirements, of which:	1,358,961	569,071
11	Outflows related to derivative exposures and
			other collateral requirements	537,150	521,482
12	Outflows related to loss of funding on
			debt products	90	90
13	Credit and liquidity facilities	821,721	47,499
14	Other contractual funding obligations	36,524	36,524
15	Other contingent funding obligations	1,123,115	38,678
16	Total cash outflows		2,588,652
Cash Inflows
17	Secured lending (including reverse repos and
		securities borrowing)	73,307	73,300
18	Inflows from fully performing exposures	837,209	577,067
19	Other cash inflows	570,419	544,702
20	Total cash inflows	1,480,935	1,195,069
				Total adjusted value
21	Total HQLA		1,743,292
22	Total net cash outflows		1,393,583
23	Liquidity coverage ratio (%)		125.27

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1. FINANCIAL STATEMENTS

Unaudited Interim Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income

	(All amounts expressed in millions of RMB unless otherwise stated)
		Three months ended	Nine months ended
		30 September	30 September
		2019		2018	2019	2018
Interest income	92,839	89,392	274,701	259,938
Interest expense	(56,574)	(54,875)	(168,374)	(164,763)
Net interest income	36,265		34,517	106,327	95,175
Fee and commission income	12,375	11,134	37,445	33,880
Fee and commission expense	(1,039)	(923)	(2,987)	(2,487)
Net fee and commission income	11,336		10,211	34,458	31,393
Net gains arising from trading activities	4,493	6,013	12,782	14,286
Net gains arising from financial
	investments	664	13	992	30
Net gains/(losses) on derecognition of
financial assets measured at
	amortised cost	16		(132)	103	(115)
Share of profits of associates and joint
	venture	59	27	351	167
Insurance business income	1,273	1,411	9,584	5,533
Other operating income	4,109	3,897	12,019	11,538
Credit impairment losses	(15,401)	(13,406)	(36,945)	(30,069)
Impairment losses on other assets	-	(23)	(6)	(26)
Insurance business expense	(1,489)	(1,339)	(9,367)	(5,062)
Other operating expenses	(21,282)	(22,264)	(61,209)	(56,438)
Profit before tax	20,027		19,057	68,986	66,527
Income tax	(2,449)	(2,378)	(8,260)	(8,854)
Net profit for the period	17,578		16,679	60,726	57,673

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(All amounts expressed in millions of RMB unless otherwise stated)

Three months ended	Nine months ended
30 September		30 September
2019	2018	2019	2018

Other comprehensive income,
	net of tax
Items that may be reclassified
subsequently to profit or loss:
Loans and advances to customers at
	FVOCI
	Amount recognized directly in equity	238	(56)	(431)	126
	Amount removed to profit or loss	(98)	-	(330)	-
Debt instruments at FVOCI
	Amount recognized directly in equity	522	674	2,263	1,950
	Amount removed to profit or loss	(471)	(49)	(652)	(45)

Effective portion of gains or losses

• on hedging instruments in a cash flow
• hedge
• Changes in fair value recorded

	in equity	(80)	273	30	367
Changes in fair value reclassified
	from equity to profit or loss	90	(254)	(81)	(313)
Others	1	15	17	10
Translation difference on foreign
	operations	1,413	1,929	1,554	2,273
Subtotal	1,615		2,532	2,370	4,368

Items that will not be reclassified

• subsequently to profit or loss: Net gains on equity investments

	designated at FVOCI	(90)	(134)	9	27
Actuarial losses on pension benefits	(15)	(1)	(12)	(16)
Change in fair value attributable to
changes in the credit risk of financial
liabilities designated at FVPL	4		(46)	78	(40)
Subtotal	(101)	(181)	75	(29)
Other comprehensive income for
	the period	1,514		2,351	2,445	4,339

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	Three months ended	Nine months ended
	30 September	30 September
	2019		2018	2019	2018
Total comprehensive income for
the period	19,092	19,030	63,171	62,012
Net profit attributable to:
Shareholders of the Bank	17,398		16,533	60,147	57,304
Non-controlling interests	180	146	579	369
	17,578		16,679	60,726	57,673
Total comprehensive income
attributable to:
Shareholders of the Bank	18,853		18,805	62,504	61,518
Non-controlling interests	239	225	667	494
	19,092		19,030	63,171	62,012

Basic and diluted earnings per

• share for profit attributable to the
• shareholders of the Bank (in RMB

yuan)	0.23	0.23	0.77	0.74

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Unaudited Interim Condensed Consolidated Statement of Financial Position

	(All amounts expressed in millions of RMB unless otherwise stated)
		As at	As at
		30 September	31 December
		2019		2018
ASSETS	781,601
Cash and balances with central banks	840,171
Due from and placements with banks and other financial	752,261
	institutions	848,067
Financial investments at FVPL	417,667		376,386
Derivative financial assets	33,274	30,730
Loans and advances to customers	5,087,054	4,742,372
Financial investments at amortised cost	1,967,847	2,000,505
Financial investments at FVOCI	615,578	445,018
Investments in associates and joint ventures	4,457	3,653
Property and equipment	169,001	153,286
Deferred income tax assets	25,268	21,975
Other assets	78,871	69,008
Total assets	9,932,879		9,531,171
LIABILITIES
Due to and placements from banks and other financial	2,022,897
	institutions		2,162,293
Financial liabilities at FVPL	27,955	23,109
Derivative financial liabilities	41,603	28,105
Due to customers	6,048,860	5,793,324
Certificates of deposits issued	512,631	366,753
Current tax liabilities	7,935	2,279
Deferred income tax liabilities	766	598
Debt securities issued	335,430	317,688
Other liabilities	151,978	131,714
Total liabilities	9,150,055		8,825,863
EQUITY
74,263
Share capital		74,263
Other equity instruments	99,870	59,876
	Preference shares	59,876	59,876
	Perpetual bonds	39,994	-
Capital surplus	113,663	113,663
Other reserves	326,877	321,442
Retained earnings	160,664	129,161
Equity attributable to shareholders of the bank	775,337		698,405
Non-controlling interests	7,487	6,903
Total equity	782,824	705,308
Total equity and liabilities	9,932,879		9,531,171

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Unaudited Interim Condensed Consolidated Statement of Cash Flows

(All amounts expressed in millions of RMB unless otherwise stated)

	Nine months ended
	30 September
	2019		2018
Cash flows from operating activities:	68,986
Net profit before tax:	66,527
Adjustments for:	36,945
Credit impairment losses	30,069
Impairment losses on other assets	6	26
Provision for insurance contracts reserve	7,172	(198)
Depreciation and amortisation	10,675	7,562
Provision for/(reversal of) outstanding litigation and unsettled	84
obligation	63
Net profit on the disposal of fixed and foreclosed assets	(141)	(19)
Interest income from financial investments	(65,931)	(63,360)
Unwind of discount on allowances during the period	(1,075)	(1,353)
Fair value losses/(gains)	1,287	(7,624)
Share of profits of associates and joint ventures	(351)	(167)
Net gains arising from financial investments	(992)	(30)
Interest expense on debt securities issued	8,655	8,387
Operating cash flows before movements in operating assets
65,320
and liabilities		39,883
Net decrease in mandatory reserve deposits	42,559		62,974
Net decrease in due from and placements with banks and other	103,169
financial institutions	53,742
Net increase in financial investments at FVPL	(21,680)	(37,413)
Net increase in loans and advances to customers	(381,364)	(312,784)
Net (increase)/decrease in other assets	(5,206)	20,142
Net decrease in due to and placements from banks and other	(122,424)
financial institutions	(12,408)
Net decrease in financial liabilities at FVPL	(3,506)	(4,850)
Net increase in due to customers and certificates of deposit	393,236
issued	303,630
Net increase in other liabilities	123	24,068
Net increase in value-added tax and surcharges payable	497	608
Income tax paid	(6,858)	(11,304)
Net cash flows from operating activities	63,866		126,288

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(All amounts expressed in millions of RMB unless otherwise stated)

		Nine months ended
		30 September
		2019			2018
Cash flows from investing activities:
Purchase of financial investments	(592,312)	(766,393)
Disposal or redemption of financial investments	441,962		576,344
Dividends received	421		234
Interest received from financial investments	68,146		62,814
Acquisition of intangible assets and other assets	(823)	(320)
Disposal of intangible assets and other assets	61		123
Purchase and construction of property and equipment	(25,041)	(22,313)
Disposal of property and equipment	1,797		898
Net cash used in investing activities	(105,789)	(148,613)
Cash flows from financing activities:
Cash received from issuing other equity instruments	39,994			-
Cash received on debt securities issued	35,510		25,902
Cash payments for distribution of dividends, profits or interest
expenses	(31,423)	(24,149)
Capital contribution by non-controlling interests	-	1,125
Repayment of principals of debt securities issued	(10,408)	(14,895)
Dividends paid to non-controlling interests	(57)	(65)
Others	(1,989)	-
Net cash flows from financing activities	31,627			(12,082)
Effect of exchange rate changes on cash and cash
equivalents	2,966			2,811
Net decrease in cash and cash equivalents	(7,330)	(31,596)
Cash and cash equivalents at the beginning of the period	243,492			228,919
Cash and cash equivalents at the end of the period	236,162			197,323
Net cash flows from operating activities include:
Interest received	212,387			192,265
Interest paid	(165,561)	(144,454)

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VI. PUBLICATION OF THE THIRD QUARTER REPORT

The results announcement will be simultaneously published on the website of the Hong Kong Stock Exchange at www.hkexnews.hk, as well as the website of the Bank at www.bankcomm.com for the reference of shareholders. The third quarter report 2019 prepared in accordance with China Accounting Standard for Business Enterprises will be available on the website of the Shanghai Stock Exchange at www.sse.com.cn and the website of the Bank.

By order of the Board

Bank of Communications Co., Ltd.

Ren Deqi

Vice Chairman of the Board

Shanghai, the PRC

25 October 2019

The Directors of the Bank as at the date of this announcement are Mr. Ren Deqi, Mr. Hou Weidong, Mr. Wang Taiyin*, Mr. Song Guobin*, Mr. He Zhaobin*, Mr. Chan Siu Chung*, Mr. Song Hongjun*, Mr. Chen Junkui*, Mr. Liu Haoyang*, Ms. Li Jian#, Mr. Liu Li#, Mr. Jason Yeung Chi Wai#, Mr. Raymond Woo Chin Wan# and Mr. Cai Haoyi#.

* Non-executive Directors

• Independent Non-executive Directors

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