China Minsheng Banking : Capital composition of 2020

CHINA MINSHENG BANKING CORP., LTD.

Capital Composition of 2020

APPENDIX I: CAPITAL COMPOSITION

		Unit: million (in RMB), %	(Data of the Group)
Core Tier 1 capital (CET1 capital):		Amount
1	Paid-in capital			43,782
2	Retained revenue
2a	Surplus reserve			48,479
2b	General reserve			86,599
2c	Retained earnings			225,247
3	Accumulated other comprehensive income and public reserve
3a	Capital reserve			57,419
3b	Others			-1,849
4	Amount as attributable to CET1 capital during the transition
	period (only applicable to non-shareholding company and
	mark "0" for the banks which are joint stock companies)
5	Valid portion of minority interests		7,283
6	CET1 capital before regulatory adjustments		466,960
CET1 capital: regulatory adjustments
7	Prudential valuation adjustments
8	Goodwill (net of deferred tax liabilities)		193
9	Other intangible assets	(excluding land use rights) (net of	1,456
	deferred tax liabilities)
10	Net deferred tax assets	due to operation losses subject	to	53
	future profits
11	Cash-flow hedge reserves of the projects not measured at fair
	value
12	Shortfall of provisions for loan impairment
13	Gain on sale related to assets securitisation
14	Unrealized gains and losses arising from the change in the
	fair value of debts due to the change in credit exposure
15	Defined-benefit pension fund net assets (net of deferred tax
	liability)
16	Ordinary shares held directly or indirectly by the Bank
17	Reciprocal cross-holdings in CET1 capital instruments
18	Deductible amount from insignificant minority capital
	investments in CET1 capital instruments issued by financial
	sector entities that are outside the scope of regulatory
	consolidation
19	Deductible amount from significant minority capital
	investments in CET1 capital instruments issued by financial
	sector entities that are	outside the scope of regulatory

	consolidation
20	Mortgage servicing rights
21	Deductible amount from other net deferred tax assets subject	3,337
	to future profits of the Bank
22	Deductible amount of non-deducted part of
	significant minority capital investments in CET1 capital
	instruments issued by financial sector entities that are outside
	the scope of regulatory consolidation and other net deferred
	tax assets subject to future profits of the Bank in excess of
	15% of
	CET1 capital
23	Of which: deductible amount from significant minority
	interests in financial institutions
24	Of which: deductible amount from mortgage servicing rights
25	Of which: deductible amount from other net deferred tax
	assets subject to future profits of the Bank
26a	Investment on CET1 capital by financial sector entities that
	are under control but not subject to consolidation
26b	Insufficiency in CET1 capital by financial sector entities that
	are under control but not subject to consolidation
26c	Total amount of other deductible items of CET1 capital
27	Non-deducted gap deductible from additional Tier 1 and Tier
	2 capital
28	Total regulatory adjustments to CET1 capital	5,039
29	CET1 capital	461,921

Additional tier 1 capital (AT1 capital):
30	Qualifying AT1 capital instruments plus related premium	69,860
31	Of which: classified as equity	69,860
32	Of which: classified as liabilities
33	Capital instruments subject to phase out from AT1 capital
	after transitional period
34	Valid portion of minority interests	971
35	Of which: instruments subject to phase out from AT1 capital
	after transitional period
36	AT1 capital before regulatory adjustments	70,831
AT1 capital: regulatory adjustments
37	AT1 capital instruments held directly or indirectly by the
	Bank
38	Reciprocal cross-holdings in AT1 capital instruments
39	Deductible amount from insignificant minority capital
	investments in AT1 capital instruments issued by financial
	sector entities that are outside the scope of regulatory
	consolidation
40	Significant minority capital investments in AT1 capital
	instruments issued by financial sector entities that are outside	404
	the scope of regulatory consolidation

41a	Investments in AT1 capital instruments issued by financial
	sector entities that are under control but not subject to
	consolidation
41b	Insufficiency in AT1 capital by financial sector entities that
	are under control but not subject to consolidation
41c	Other deduction in AT1 capital
42	Non-deducted gap deductible from tier2 capital
43	Total regulatory adjustments to AT1 capital	404
44	AT1 capital	70,427
45	Tier 1 capital (CET1 capital + AT1 capital)	532,348
Tier 2 capital:
46	Qualifying Tier 2 capital instruments plus related premium	143,947
47	Capital instruments subject to phase out from Tier 2 capital	3,996
	after transitional period
48	Valid portion of minority interests	1,943
49	Of which: instruments subject to phase out after transitional
	period
50	Surplus provisions for loan impairment included in Tier 2	29,234
	capital
51	Tier 2 capital before regulatory adjustments	175,124
Tier 2 capital: regulatory adjustments
52	Tier 2 capital held directly or indirectly by the Bank
53	Reciprocal cross-holdings in Tier 2 capital instruments
54	Deductible amount from insignificant minority capital
	investments in Tier 2 capital instruments issued by financial
	sector entities that are outside the scope of regulatory
	consolidation
55	Significant minority capital investments in Tier 2 capital
	instruments issued by financial sector entities that are outside
	the scope of regulatory consolidation
56a	Investments in Tier 2 capital instruments issued by financial
	sector entities that are under control but not subject to
	consolidation
56b	Insufficiency in Tier 2 capital by financial sector entities that
	are under control but not subject to consolidation
56c	Other deduction in Tier 2 capital
57	Total regulatory adjustments to Tier 2 capital	-
58	Tier 2 capital	175,124
59	Total capital (Tier 1 capital + Tier 2 capital)	707,472
60	Total risk-weighted assets	5,425,856
Capital ratios and buffers
61	National CET1 capital adequacy ratio	8.51%
62	National Tier 1 capital adequacy ratio	9.81%

63	National capital adequacy ratio	13.04%
64	Institution specific buffer requirement
65	Of which: capital conservation buffer requirement	135,646
66	Of which: countercyclical buffer requirement	-
67	Of which: G-SIB buffer requirement
68	CET1 capital available to meet buffers (as a percentage of	3.51%
	risk weighted assets)
National minima
69	National CET1 capital adequacy ratio	5%
70	National Tier 1 capital adequacy ratio	6%
71	National capital adequacy ratio	8%
Amounts below the thresholds for deduction
72	Insignificant minority capital investments in CET1 capital
	instruments, AT1 capital instruments and Tier 2 capital	8,164
	instruments issued by financial sector entities that are outside
	the scope of regulatory consolidation
73	Significant minority capital investments in CET1 capital
	instruments, AT1 capital instruments and Tier 2 capital	2,693
	instruments issued by financial sector entities that are outside
	the scope of regulatory consolidation
74	Mortgage servicing rights (net of deferred tax liability)
75	Other net deferred tax assets subject to future profits of the	46,526
	Bank (net of deferred tax liability)
Applicable caps on the inclusion of provisions for loan
impairment in Tier 2 capital
76	Actual provisions for loan impairment subject to standardised	101,906
	approach
77	Cap for inclusion of surplus provisions for loan impairment in	62,377
	Tier 2 under standardised approach
78	Actual surplus provisions for loan impairment subject to
	internal ratings-based approach
79	Cap for inclusion of surplus provisions for loan impairment in
	Tier 2 under internal ratings-based approach
Capital instruments subject to phase-out arrangements
80	Amount attributable to CET1 capital subject to transitional
	period arrangement
81	Amount excluded from CET1 capital due to transitional
	period arrangement
82	Amount attributable to AT1 capital subject to transitional
	period arrangement
83	Amount excluded from AT1 capital due to transitional period
	arrangement
84	Amount attributable to Tier 2 capital subject to transitional	3,996
	period arrangement
85	Amount excluded from Tier 2 capital due to transitional
	period arrangement

APPENDIX II: DESCRIPTION OF RELATED ITEMS

Unit: million (in RMB)

		Balance sheet
		under regulatory	Note
		scope of
		consolidation
Goodwill		193	a
Intangible assets		4,938	b
Deferred income tax liabilities		117
Of which: deferred tax liabilities related	to		c
goodwill
Of which: deferred tax liabilities related to other		d
intangible assets ( excluding land use rights)
Paid-in capital		43,782
Of which: valid portion of CET1 capital		43,782	e
Of which: valid portion of AT1 capital			f