China Merchants Bank : 2021 ANNUAL RESULTS ANNOUNCEMENT

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.

招 商 銀 行 股 份 有 限 公 司

CHINA MERCHANTS BANK CO., LTD.

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

(H Share Stock Code: 03968)

(Preference Share Stock Code: 04614)

2021 ANNUAL RESULTS ANNOUNCEMENT

The Board of Directors (the "Board") of China Merchants Bank Co., Ltd. (the "Company") hereby announces the audited results of the Company and its subsidiaries for the year ended 31 December 2021. This announcement, containing the full text of the 2021 Annual Report of the Company, complies with the relevant requirements of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to information to accompany preliminary announcement of annual results. Printed version of the Company's 2021 Annual Report will be delivered to the H-Share Holders of the Company and available for viewing on the websites of The Stock Exchange of Hong Kong Limited (www.hkex.com.hk) and of the Company (www.cmbchina.com) in April 2022.

Publication of Results Announcement

Both the Chinese and English versions of this results announcement are available on the websites of the Company (www.cmbchina.com) and The Stock Exchange of Hong Kong Limited (www.hkex.com.hk). In the event of any discrepancies in interpretations between the English version and Chinese version, the Chinese version shall prevail.

The Company has also prepared the annual report in Chinese in accordance with the PRC Generally Accepted Accounting Principles, which is available on the websites of the Company (www.cmbchina.com) and Shanghai Stock Exchange (www.sse.com.cn).

By Order of the Board

China Merchants Bank Co., Ltd.

Miao Jianmin

Chairman

18 March 2022

As at the date of this announcement, the executive directors of the Company are Tian Huiyu and Wang Liang; the non-executive directors of the Company are Miao Jianmin, Fu Gangfeng, Zhou Song, Hong Xiaoyuan, Zhang Jian, Su Min, Wang Daxiong and Luo Sheng; and the independent non-executive directors of the Company are Wong See Hong, Li Menggang, Liu Qiao, Tian Hongqi, Li Chaoxian and Shi Yongdong.

China Merchants Bank	Contents	1
Annual Report 2021

Contents

2 Definitions

1. Significant Risk Warning
2. Important Notice
3. Chairman's Statement

1. President's Statement

1. Chapter I Company Information

1. Chapter II Summary of Accounting Data and Financial Indicators

1. Chapter III Management Discussion and Analysis
   22 3.1 Analysis of Overall Operation
   22 3.2 Analysis of Income Statement
   29 3.3 Analysis of Balance Sheet
   34 3.4 Analysis of Loan Quality
   40 3.5 Analysis of Capital Adequacy
   43 3.6 Results of Operating Segments
   43 3.7 Other Financial Disclosures under the Regulatory Requirements
   44 3.8 Implementation of Business Development Strategies
   47 3.9 Key Business Concerns in Operation
   59 3.10 Business Operation
   81 3.11 Risk Management
   88 3.12 Outlook and Coping Tactics

1. Chapter IV Environmental, Social and Governance（ESG）

1. Chapter V Corporate Governance

1. Chapter VI Important Events

1. Chapter VII Changes in Shares and Information on Shareholders

1. Chapter VIII Financial Statements

2 China Merchants Bank Definitions / Significant Risk Warning Annual Report 2021

Definitions

The Company, the Bank, CMB or China Merchants Bank: China Merchants Bank Co., Ltd.

The Group:

China Merchants Bank and its subsidiaries

CBIRC:

China Banking and Insurance Regulatory Commission

CSRC:

China Securities Regulatory Commission

Hong Kong Stock Exchange or SEHK:

The Stock Exchange of Hong Kong Limited

Hong Kong Listing Rules:

The Rules Governing the Listing of Securities on the SEHK CMB Wing Lung Bank:

CMB Wing Lung Bank Limited

CMB Wing Lung Group:

CMB Wing Lung Bank and its subsidiaries

CMB Financial Leasing or CMBFL:

CMB Financial Leasing Co., Ltd.

CMB International Capital or CMBIC:

CMB International Capital Holdings Corporation Limited

CMB Wealth Management:

CMB Wealth Management Company Limited China Merchants Fund or CMFM:

China Merchants Fund Management Co., Ltd.

CIGNA & CMAM:

CIGNA & CMB Asset Management Company Limited

CMB Europe S.A.:

China Merchants Bank (Europe) Co., Ltd. (招商銀行(歐洲) 有限公司)

CIGNA & CMB Life Insurance:

CIGNA & CMB Life Insurance Co., Ltd.

MUCFC:

Merchants Union Consumer Finance Company Limited

China Merchants T-Bank:

China Merchants T-Bank Co., Ltd. (under preparation)

CMB YunChuang:

CMB YunChuang Information Technology Co., Ltd. with 100% equity interest held by the Company indirectly

CMB Network Technology:

China Merchants Bank Network Technology (Shenzhen) Co., Ltd. with 100% equity interest held by the Company indirectly

Deloitte Touche Tohmatsu Certified Public Accountants LLP:

Deloitte Touche Tohmatsu Certified Public Accountants LLP (Special General Partnership)

SFO:

Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)

Model Code:

Model Code for Securities Transactions by Directors of Listed Issuers of Hong Kong Stock Exchange

Significant Risk Warning

The Company has disclosed herein the major risks involved in its operations and the proposed risk management measures. Please refer to Chapter III for the details in relation to risk management.

China Merchants Bank	Important Notice	3
Annual Report 2021

Important Notice

1. The Board of Directors, the Board of Supervisors, Directors, Supervisors and senior management of the Company confirm that the contents in this annual report are true, accurate, and complete and have no false representations, misleading statements or material omissions, and they will severally and jointly accept legal responsibility for such contents.
2. The 37th meeting of the Eleventh Session of the Board of Directors of the Company was convened on 18 March 2022 by way of video conference. The meeting was presided by Miao Jianmin, Chairman of the Board of Directors. 16 out of 16 eligible Directors attended the meeting in person. 9 Supervisors of the Company were present at the meeting. The convening of the meeting complied with the relevant provisions of the Company Law of the People's Republic of China and the Articles of Association of China Merchants Bank Co., Ltd.
3. Deloitte Touche Tohmatsu Certified Public Accountants LLP and Deloitte Touche Tohmatsu (both being auditors of the Company) have separately reviewed the 2021 annual financial report prepared in accordance with the PRC Generally Accepted Accounting Principles and International Accounting Standards, and have separately issued standard auditing reports with unqualified opinions.
4. Unless otherwise stated, all monetary sums stated in this report are expressed in RMB.
5. Miao Jianmin, Chairman of the Company, Tian Huiyu, President and Chief Executive Officer, Wang Liang, First Executive Vice President, Chief Financial Officer and Secretary of the Board of Directors, and Li Li, the person in charge of the Finance and Accounting Department, hereby make representations in respect of the truthfulness, accuracy and completeness of the financial statements in this report.
6. The profit appropriation plan: it was proposed that 10% of the audited net profit of the Company for 2021 of RMB109.794 billion, equivalent to RMB10.979 billion, would be allocated to the statutory surplus reserve, while 1.5% of the amount of the increased balance of the Company's assets that bearing risks and losses at the end of the period, equivalent to RMB11.874 billion, would be appropriated to the general reserve. Based on the total share capital of A Shares and H Shares on the record date for implementation of the profit appropriation, the Company will declare a cash dividend of RMB1.522 (tax included) for every share to all shareholders of the Company whose names appear on the register, payable in Renminbi for holders of A Shares and in Hong Kong Dollars for holders of H Shares. The actual profit appropriations amount in HKD would be calculated based on the average benchmark rate for RMB to HKD published by the People's Bank of China for the previous week (including the day of the shareholders' general meeting) before the date of the shareholders' general meeting. The retained profits will be carried forward to the next year. In 2021, the Company did not transfer any capital reserve into share capital. The above profit appropriation plan is subject to consideration and approval at the 2021 Annual General Meeting of the Company.
7. We have included in this report certain forward-looking statements with respect to the financial position, operating results and business development of the Group. We use words such as "will", "may", "expect", "try", "strive", "plan", "anticipate", "aim at", and similar expressions to indicate forward-looking statements. These statements are based on current plans, estimates and projections. Although we believe that the expectations reflected in these forward-looking statements are reasonable, we give no assurance that these expectations will turn into reality or prove to be correct. Therefore they should not be deemed as the Group's commitments. Investors should not place undue reliance on such statements and should pay attention to investment risks. You are cautioned that such forward-looking statements are related to future events or future financial position, business, or other performances of the Group, and are subject to a number of uncertainties which may cause substantial differences from those in the actual results.

4 China Merchants Bank Chairman's Statement

Annual Report 2021

Chairman's Statement

2021 is a milestone year in which the Communist Party of China celebrated its centenary, and China achieved its first centennial goal and geared into a new journey towards its second centennial goal. This year, China Merchants Bank thoroughly practiced quality development and achieved outstanding operating results. The Group realised net operating income for the year amounting to RMB331.4 billion, a year-on-year increase of 14.17%, and net profit attributable to shareholders of the Bank amounting to RMB119.9 billion, a year-on-year increase of 23.20%. With continued improvement of asset quality and constant reinforcement of ability to withstand risks, the Group recorded the non-performing loan ratio of 0.91% and the allowance coverage ratio of 483.87%. The cost-to-income ratio saw a "inflection point" for the first time since 2016. The operation efficiency improved significantly. The return on average equity (ROAE) and the return on average assets (ROAA) of the Group reached 16.96% and 1.36%, respectively, representing a year-on-year increase of

1.23 percentage points and 0.13 percentage point, respectively. In 2021, China Merchants Bank was selected as the "Best Bank in China" by Euromoney for the third consecutive year, which marked the first "3 Consecutive Championships" in its awarding history.

"Business fortunes are closely bound up with national destiny." China Merchants Bank's healthy development and outstanding achievements epitomised vigorous development in China since the reform and opening up, a portrayal of reform and innovation of financial industry in the country, and the culmination of continuous efforts of the generations of CMBers by upholding their original aspiration, sticking to the "Two Consistent Principles", and adhering to the concepts of marketisation, differentiation, innovative development and prudent risk management. We are grateful to the contemporary age and live up to its expectation. Standing at the historical intersection of the "two centennial goals", and riding the tide of the times, we pay tribute to history and march toward the future.

"Transformation will lead to flexibility, and thus lead to long-term success." Only by continuously advancing transformation and reform can we therefore maintain our long-term market competitiveness and achieve a long-lasting foundation. The "Malik Curve" named after the European management scientist Fredmund Malik explains that enterprises gain new development space through transformation and reform, which not only fits our development process, but also brings us profound enlightenment. The first is that enterprises will gradually become mediocre or even disappear if the transformation and reform is not carried out in a timely manner; the second is to firmly make key strategic decisions during the strategic window; the third is that making key strategic decisions requires a strong sense of crisis and strategic insight; the fourth is that long-term and firm strategy execution is required. In 2021, on the basis of summarising the achievements and experience of the "13th Five-Year Plan" and in consideration of the operating environment in the new development stage of the nation, we formulated the "14th Five-Year" strategic plan, which highlighted the strategic vision of "building the best value creation bank with innovation-driven development, leading model and distinguished features", put forward the China Merchants Bank

3.0 model of "extensive wealth management, digital operation and openness and integration", focused on the three capacity building of "wealth management, Fintech and risk management", and thus making key strategic decisions at the strategic transition window and realising the "Malik Curve" of China Merchants Bank in the new era.

"One who stands on tiptoes can't stand firm, and one who strides can't walk far." We adhere to the general tune of making steady progress, and do not make progress blindly and do not rush for quick but short-term success. In 2021, we took a solid step towards the strategic vision of the "14th Five-Year Plan" and achieved a breakthrough in the "3.0 model", assuming a good start. We adhere to the principle of "customer-centric" and focus on both assets and liabilities of the customer's balance sheet to promote the cyclic value chain of extensive wealth management. As of the end of 2021, the retail customer base exceeded 170 million, and total assets under management (AUM) from retail customers exceeded 10 trillion with an increment of more than RMB1 trillion again. The scale of assets under custody increased to nearly RMB20 trillion with the scale of assets under management exceeding RMB4 trillion1. We are highly open to the outside world and highly integrated internally. We vigorously promoted the construction of an open wealth management platform, built an ecosystem of wealth management, attracted 87 asset management institutions, and introduced high- quality products from the wealth management subsidiaries of 8 peer banks. We insisted on investing in Fintech, and continued to promote host cloud and application cloud, and our technical capabilities are among the best in the domestic financial industry in terms of natural language processing, knowledge graph and human-computer dialogue. We relied on technological capabilities to enhance service efficiency, leveraged on corporate digital services to achieve the rapid growth of corporate customer base, so as to highlight the characteristics and enhance the competitiveness of corporate business. At the end of 2021 and the beginning of 2022, the digital RMB was successfully launched, and CMB officially became a digital RMB operating agency recognised by the central bank.

1The scale of assets under management includes the total of asset management businesses of CMB Wealth Management, China Merchants Fund, CMB International Capital and CIGNA & CMAM as of the end of the reporting period.