Industrial and Commercial Bank of China : Third Quarterly Report of 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.

Stock Code: 1398

USD Preference Shares Stock Code: 4603

EUR Preference Shares Stock Code: 4604

RMB Preference Shares Stock Code: 84602

INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED

THIRD QUARTERLY REPORT OF 2019

The Board of Directors of Industrial and Commercial Bank of China Limited ("the Bank") announces the results of the Bank and its subsidiaries ("the Group") for the third quarter ended 30 September 2019. This report is made in accordance with Part XIVA 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. IMPORTANT NOTICE

1. The Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior Management members of Industrial and Commercial Bank of China Limited undertake that the information in this report contains no false record, misleading statement or material omission; and assume individual and joint and several liability for the authenticity, accuracy and completeness of the information in this report.
2. The Third Quarterly Report of 2019 has been considered and approved at the meeting of the Board of Directors of the Bank held on 25 October 2019. There were 14 directors eligible for attending the meeting, of whom 13 directors attended the meeting in person and 1 director attended the meeting by proxy, namely, Mr. Hu Hao appointed Mr. Gu Shu, Vice Chairman of the Board of Directors, to attend the meeting and exercise the voting right on his behalf.
3. These quarterly financial statements have not been audited.
4. Mr. Chen Siqing, Legal Representative of the Bank, Mr. Gu Shu, President in charge of finance of the Bank, and Mr. Zhang Wenwu, General Manager of the Finance and Accounting Department of the Bank, hereby warrant and guarantee that the financial statements contained in this quarterly report are authentic, accurate and complete.

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2. CORPORATE INFORMATION

2.1 Basic information

					Stock exchange on
	Stock name		Stock code	which shares are listed
A share	工商銀行		601398	Shanghai Stock Exchange
H share	ICBC		1398	The Stock Exchange of
					Hong Kong Limited
Offshore preference	ICBC USDPREF1		4603	The Stock Exchange of
shares	ICBC EURPREF1		4604	Hong Kong Limited
	ICBC CNHPREF1-R		84602
Domestic preference	工行優 1		360011	Shanghai Stock Exchange
shares	工行優 2		360036
Board Secretary and Company Secretary
Name			Guan Xueqing
Address			No. 55 Fuxingmennei Avenue, Xicheng District,
			Beijing, China (Postal code: 100140)
Telephone			86-10-66108608
Facsimile			86-10-66107571
E-mail			[e-mail]

2.2 Major accounting data and financial indicators

2.2.1 Major accounting data and financial indicators prepared based on International Financial Reporting Standards ("IFRSs")

(In RMB millions, unless otherwise specified)

			Changes as
			compared to the end
	30 September 2019	31 December 2018	of last year (%)
Total assets	30,426,381	27,699,540	9.84
Total loans and advances to customers	16,660,486	15,419,905	8.05
Allowance for impairment losses on loans(1)	474,985	413,177	14.96
Investment	7,454,996	6,754,692	10.37
Total liabilities	27,755,753	25,354,657	9.47
Due to customers	23,368,159	21,408,934	9.15
Due to banks and other financial institutions	2,148,953	1,814,495	18.43
Equity attributable to equity holders of	2,654,896	2,330,001	13.94
the parent company
Net asset value per share (RMB yuan)	6.79	6.30	7.78

Note: (1) Calculated by adding allowance for impairment losses on loans and advances to customers measured at amortised cost with allowance for impairment losses on loans and advances to customers measured at fair value through other comprehensive income.

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		Changes as		Changes as
	Three months	compared to the	Nine months	compared to the
	ended	three months ended	ended	nine months ended
	30 September	30 September	30 September	30 September
	2019	2018 (%)	2019	2018 (%)
Operating income	190,481	6.67	584,684	8.30
Net profit	83,998	5.71	252,688	5.23
Net profit attributable to equity holders	83,781	5.80	251,712	5.04
of the parent company
Net cash flows from operating activities	N/A	N/A	1,375,207	55.76
Basic earnings per share (RMB yuan)	0.24	9.09	0.71	5.97
Diluted earnings per share (RMB yuan)	0.24	9.09	0.71	5.97
Return on weighted average equity	14.12	A decrease of	14.30	A decrease of
(%, annualised)		0.70 percentage points		0.85 percentage points

2.2.2 Differences between the financial statements prepared under Generally Accepted Accounting Principles of the People's Republic of China ("PRC GAAP") and Those under IFRSs

In respect of the financial statements of the Group prepared under PRC GAAP and those under IFRSs, net profit attributable to equity holders of the parent company for the reporting period ended 30 September 2019 and equity attributable to equity holders of the parent company as at the end of the reporting period have no differences.

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2.3 Number of shareholders and particulars of shareholding

As at the end of the reporting period, the Bank had a total of 565,553 ordinary shareholders, including 121,124 holders of H shares and 444,429 holders of A shares.

PARTICULARS OF SHAREHOLDING OF THE TOP 10 ORDINARY SHAREHOLDERS OF THE BANK

						Unit: Share
					Number of	Changes of
					pledged or	shares during
		Class of	Shareholding	Total number of	locked-up	the reporting
Name of shareholder	Nature of shareholder	shares	percentage (%)	shares held	shares	period
Central Huijin Investment Ltd.	State-owned	A shares	34.71	123,717,852,951	None	-
Ministry of Finance of the People's	State-owned	A shares	34.60	123,316,451,864	None	-
Republic of China(4)
HKSCC Nominees Limited/	Foreign legal person	H shares	24.17	86,150,241,795	Unknown	-1,422,539
Hong Kong Securities Clearing
	A shares	0.28	1,005,437,145	None	132,286,907
Company Limited(5)
Ping An Life Insurance Company	Other entities	A shares	1.03	3,687,330,676	None	-
of China, Ltd. - Traditional -
Ordinary insurance products
China Securities Finance Co., Ltd.	State-owned legal person	A shares	0.68	2,416,131,564	None	-
Wutongshu Investment Platform Co., Ltd.	State-owned legal person	A shares	0.40	1,420,781,042	None	-
Central Huijin Asset Management	State-owned legal person	A shares	0.28	1,013,921,700	None	-
Co., Ltd.
China Life Insurance Company Limited	Other entities	A shares	0.11	396,269,527	None	-349,445,630
- Traditional - Ordinary insurance
products - 005L - CT001 Hu
China Life Insurance Company Limited	Other entities	A shares	0.09	323,479,098	None	-677,366,154
- Dividends Distribution
- Dividends Distribution to Individuals
- 005L - FH002 Hu
Taiping Life Insurance Co., Ltd.	Other entities	A shares	0.07	236,724,154	None	236,724,154
- Traditional - Ordinary insurance
products - 022L - CT001 Hu

Notes: (1) The above data are based on the Bank's register of shareholders as at 30 September 2019.

1. The Bank had no shares subject to restrictions on sales.
2. Central Huijin Asset Management Co., Ltd. is a wholly-owned subsidiary of Central Huijin Investment Ltd. (hereinafter referred to as "Huijin"). Both "China Life Insurance Company Limited - Traditional - Ordinary insurance products - 005L - CT001 Hu" and "China Life Insurance Company Limited - Dividends Distribution - Dividends Distribution to Individuals - 005L - FH002 Hu" are managed by China Life Insurance Company Limited. Save as disclosed above, the Bank is not aware of any connected relations or concert party action among the afore-mentioned shareholders.
3. The Bank received a notice from the Ministry of Finance of the People's Republic of China (hereinafter referred to as "MOF") on 25 September 2019 that MOF decided to transfer 10% of the equity held to the National Council for Social Security Fund, and the number of shares involved in the transfer was 12,331,645,186 shares (about 3.46% of the Bank's total share capital). As at 30 September 2019, the relevant regulatory approval and other procedures had not been completed yet. After the transfer, MOF will have a shareholding percentage of 31.14%.
4. HKSCC Nominees Limited held 86,150,241,795 H shares and Hong Kong Securities Clearing Company Limited held 1,005,437,145 A shares.

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2.4 Interests and short positions held by substantial shareholders and other persons

Substantial Shareholders and Persons Having Notifiable Interests or Short Positions Pursuant to Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance of Hong Kong

As at 30 September 2019, the Bank received notices from the following persons about their interests or short positions held in the Bank's ordinary shares and underlying shares, which were recorded in the register pursuant to Section 336 of the Securities and Futures Ordinance of Hong Kong as follows:

HOLDERS OF A SHARES

			Number of			Percentage of
Name of substantial			A shares held	Nature of	Percentage of A	total ordinary
shareholder	Capacity	(share)	interests	shares(3) (%)	shares(3) (%)
Ministry of Finance of	Beneficial	118,006,174,032	Long position	43.77	33.11
the People's		owner
Republic of China(1)
Central Huijin	Beneficial	123,717,852,951	Long position	45.89	34.71
Investment Ltd.(2)		owner
	Interest of	1,013,921,700	Long position	0.38	0.28
		controlled
		corporations
	Total	124,731,774,651		46.26	35.00

Notes: (1) According to the register of shareholders of the Bank as at 30 September 2019, MOF held 123,316,451,864 shares in the Bank.

1. According to the register of shareholders of the Bank as at 30 September 2019, Huijin held 123,717,852,951 shares in the Bank, while Central Huijin Asset Management Co., Ltd., a subsidiary of Huijin, held 1,013,921,700 shares in the Bank.
2. Due to rounding, percentages presented herein are for reference only.

HOLDERS OF H SHARES

				Number of			Percentage of
Name of substantial			H shares held	Nature of	Percentage of H	total ordinary
shareholder	Capacity	(share)	interests	shares(2) (%)	shares(2) (%)
Ping An Asset	Investment	12,168,809,000	Long position	14.02	3.41
	Management		manager
	Co., Ltd.(1)
National Council for	Beneficial	8,663,703,234	Long position	9.98	2.43
	Social Security Fund		owner
Temasek Holdings	Interest of	7,317,475,731	Long position	8.43	2.05
	(Private) Limited		controlled
			corporations
Citigroup Inc.	Interest of	168,422,811	Long position	0.19	0.05
			controlled
			corporations
		Approved	4,269,976,445	Long position	4.92	1.20
			lending agent
		Total	4,438,399,256		5.11	1.25
		Interest of	39,156,970	Short position	0.05	0.01
			controlled
			corporations

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Notes: (1) As confirmed by Ping An Asset Management Co., Ltd., such shares were held by Ping An Asset Management Co., Ltd. on behalf of certain customers (including but not limited to Ping An Life Insurance Company of China, Ltd.) in its capacity as investment manager and the interests in such shares were disclosed based on the latest disclosure of interests form filed by Ping An Asset Management Co., Ltd. for the period ended 30 September 2019 (the date of relevant event being 12 June 2019). Both Ping An Life Insurance Company of China, Ltd. and Ping An Asset Management Co., Ltd. are subsidiaries of Ping An Insurance (Group) Company of China, Ltd. As Ping An Asset Management Co., Ltd. is in a position to fully exercise the voting rights in respect of such shares on behalf of customers and independently exercise the rights of investment and business management in its capacity as investment manager, and is completely independent from Ping An Insurance (Group) Company of China, Ltd., Ping An Insurance (Group) Company of China, Ltd. is exempted from aggregating the interests in such shares as a holding company under the aggregation exemption and disclosing the holding of the same in accordance with the Securities and Futures Ordinance of Hong Kong.

1. Due to rounding, percentages presented herein are for reference only.

2.5 Number of preference shareholders and particulars of shareholding

As at the end of the reporting period, the Bank had two offshore preference shareholders (or proxies), 26 domestic preference shareholders of "工行優 1" and 32 domestic preference shareholders of "工行優 2". During the reporting period, the Bank did not restore any voting right of the preference shares.

PARTICULARS OF SHAREHOLDING OF THE TOP 10 OFFSHORE PREFERENCE SHAREHOLDERS (OR PROXIES)

									Unit: Share
					Increase/
					decrease			Number of	Number of
					during the	Shares held	Shareholding	shares subject	pledged or
		Nature of			reporting	at the end of	percentage	to restrictions	locked-up
Name of shareholder	shareholder	Class of shares	period	the period	(%)	on sales	shares
Cede & Co.	Foreign legal	USD offshore	-	147,000,000	47.9	-	Unknown
		person		preference
				shares
The Bank of New York	Foreign legal	RMB offshore	-	120,000,000	39.1	-	Unknown
	Depository (Nominees)	person		preference
	Limited			shares
			EUR offshore	-	40,000,000	13.0	-	Unknown
				preference
				shares

Notes: (1) The above data are based on the Bank's register of offshore preference shareholders as at 30 September 2019.

1. As the issuance of the offshore preference shares above was private offering, the register of preference shareholders presented the information on proxies of placees.
2. The Bank is not aware of any connected relations or concert party action among the afore-mentioned preference shareholders and among the afore-mentioned preference shareholders and the top 10 ordinary shareholders.
3. "Shareholding percentage" refers to the percentage of offshore preference shares held by preference shareholders in total number of offshore preference shares.

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PARTICULARS OF SHAREHOLDING OF THE TOP 10 DOMESTIC PREFERENCE SHAREHOLDERS OF "工行優 1"

										Unit: Share
						Increase/
						decrease			Number of	Number of
						during the	Shares held	Shareholding	shares subject	pledged or
		Nature of			reporting	at the end of	percentage	to restrictions	locked-up
Name of shareholder	shareholder	Class of shares	period	the period	(%)	on sales	shares
China Mobile	State-owned	Domestic	-	200,000,000	44.4	-	None
	Communications		legal person		preference
	Group Co., Ltd.				shares
China National Tobacco	Other entities	Domestic	-	50,000,000	11.1	-	None
	Corporation				preference
					shares
China Life Insurance	State-owned	Domestic	-	35,000,000	7.8	-	None
	Company Limited		legal person		preference
					shares
Ping An Life Insurance	Domestic non-	Domestic	-	30,000,000	6.7	-	None
Company of China, Ltd.		state-owned		preference
			legal person		shares
CCB Trust Co., Ltd.	State-owned	Domestic	-	15,000,000	3.3	-	None
			legal person		preference
					shares
BOCOM Schroders Asset	Domestic non-	Domestic	-	15,000,000	3.3	-	None
	Management Co., Ltd.		state-owned		preference
			legal person		shares
China Resources	State-owned	Domestic	-	15,000,000	3.3	-	None
SZITIC Trust Co., Ltd.		legal person		preference
					shares
BOC International	Domestic non-	Domestic	-	15,000,000	3.3	-	None
	(China) Co., Ltd.		state-owned		preference
			legal person		shares
China National Tobacco	Other entities	Domestic	-	10,000,000	2.2	-	None
	Corporation Shandong				preference
	Branch				shares
China National Tobacco	Other entities	Domestic	-	10,000,000	2.2	-	None
	Corporation Heilongjiang				preference
	Branch				shares
Ping An Property &	Domestic non-	Domestic	-	10,000,000	2.2	-	None
	Casualty Insurance		state-owned		preference
Company of China Ltd.		legal person		shares

Notes: (1) The above data are based on the Bank's register of domestic preference shareholders of "工行優 1" as at 30 September 2019.

1. China National Tobacco Corporation Shandong Branch and China National Tobacco Corporation Heilongjiang Branch are both wholly-owned subsidiaries of China National Tobacco Corporation. Both "China Life Insurance Company Limited - Traditional - Ordinary insurance products - 005L - CT001 Hu" and "China Life Insurance Company Limited - Dividends Distribution - Dividends Distribution to Individuals
   - 005L - FH002 Hu" are managed by China Life Insurance Company Limited. The "Ping An Life Insurance Company of China, Ltd. - Traditional - Ordinary insurance products" is managed by Ping An Life Insurance Company of China, Ltd. Ping An Life Insurance Company of China, Ltd. and Ping An Property & Casualty Insurance Company of China Ltd. have connected relations. Save as disclosed above, the Bank is not aware of any connected relations or concert party action among the afore-mentioned preference shareholders and among the afore-mentioned preference shareholders and top 10 ordinary shareholders.
2. "Shareholding percentage" refers to the percentage of domestic preference shares of "工行優 1" held by preference shareholders in total number (450 million shares) of domestic preference shares of "工行優 1".

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PARTICULARS OF SHAREHOLDING OF THE TOP 10 DOMESTIC PREFERENCE SHAREHOLDERS OF "工行優 2"

										Unit: Share
						Increase/
						decrease			Number of	Number of
						during the	Shares held	Shareholding	shares subject	pledged or
		Nature of			reporting	at the end of	percentage	to restrictions	locked-up
Name of shareholder	shareholder	Class of shares	period	the period	(%)	on sales	shares
Bosera Asset	State-owned	Domestic	150,000,000	150,000,000	21.4	-	None
	Management Co.,		legal person		preference
	Limited				shares
China Life Insurance	State-owned	Domestic	120,000,000	120,000,000	17.1	-	None
	Company Limited		legal person		preference
					shares
China Mobile	State-owned	Domestic	100,000,000	100,000,000	14.3	-	None
	Communications		legal person		preference
	Group Co., Ltd.				shares
Shaanxi International	State-owned	Domestic	70,000,000	70,000,000	10.0	-	None
	Trust Co., Ltd.		legal person		preference
					shares
CCB Trust Co., Ltd.	State-owned	Domestic	70,000,000	70,000,000	10.0	-	None
			legal person		preference
					shares
China National Tobacco	Other entities	Domestic	50,000,000	50,000,000	7.1	-	None
	Corporation				preference
					shares
Shanghai Tobacco	Other entities	Domestic	30,000,000	30,000,000	4.3	-	None
	Group Co., Ltd.				preference
					shares
Bank of Beijing Co., Ltd.	Domestic non-	Domestic	20,000,000	20,000,000	2.9	-	None
			state-owned		preference
			legal person		shares
BOCOM Schroders Asset	Domestic non-	Domestic	15,000,000	15,000,000	2.1	-	None
	Management Co., Ltd.		state-owned		preference
			legal person		shares
Ping An Property &	Domestic non-	Domestic	15,000,000	15,000,000	2.1	-	None
	Casualty Insurance		state-owned		preference
Company of China Ltd.		legal person		shares

Notes: (1) The above data are based on the Bank's register of domestic preference shareholders of "工行優 2" as at 30 September 2019.

1. Shanghai Tobacco Group Co., Ltd., China National Tobacco Corporation Shandong Branch and China National Tobacco Corporation Heilongjiang Branch are all wholly-owned subsidiaries of China National Tobacco Corporation. Both "China Life Insurance Company Limited - Traditional - Ordinary insurance products - 005L - CT001 Hu" and "China Life Insurance Company Limited - Dividends Distribution - Dividends Distribution to Individuals - 005L - FH002 Hu" are managed by China Life Insurance Company Limited. The "Ping An Life Insurance Company of China, Ltd. - Traditional - Ordinary insurance products" is managed by Ping An Life Insurance Company of China, Ltd. Ping An Life Insurance Company of China, Ltd. and Ping An Property & Casualty Insurance Company of China Ltd. have connected relations. Save as disclosed above, the Bank is not aware of any connected relations or concert party action among the afore- mentioned preference shareholders and among the afore-mentioned preference shareholders and top 10 ordinary shareholders.
2. "Shareholding percentage" refers to the percentage of domestic preference shares of "工行優 2" held by preference shareholders in total number (700 million shares) of domestic preference shares of "工行優 2".

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3. BRIEF ANALYSIS ON OVERALL OPERATING ACTIVITIES IN THE THIRD QUARTER

(The financial data herein are presented in RMB unless otherwise indicated.)

Set out below are the highlights of the operating results of the Group for the reporting period:

Net profit amounted to RMB252,688 million, representing an increase of 5.23% compared with the same period of last year. Annualised return on average total assets was 1.16%. Annualised return on weighted average equity was 14.30%.

Operating income amounted to RMB584,684 million, representing an increase of 8.30% compared with the same period of last year. Net interest income was RMB453,146 million, representing an increase of 6.97% compared with the same period of last year. Annualised net interest margin stood at 2.26%. Non-interest income reported RMB131,538 million, representing an increase of 13.15% compared with the same period of last year, of which net fee and commission income was RMB124,635 million, representing an increase of 9.58% compared with the same period of last year. Operating expenses (excluding taxes and surcharges) were RMB130,019 million, representing an increase of 6.11% compared with the same period of last year. Cost-to-income ratio was 22.24%.

As at the end of the reporting period, total assets amounted to RMB30,426,381 million, representing an increase of RMB2,726,841 million or 9.84% over the end of the previous year. Total loans and advances to customers (excluding accrued interest) amounted to RMB16,660,486 million, representing an increase of RMB1,240,581 million or 8.05% over the end of last year, of which RMB loans of domestic branches grew by RMB1,152,644 million or 8.48%. In terms of the structure, corporate loans were RMB10,040,360 million, personal loans were RMB6,231,251 million and discounted bills were RMB388,875 million. Investments reached RMB7,454,996 million, representing an increase of RMB700,304 million or 10.37% over the end of last year.

Total liabilities amounted to RMB27,755,753 million, representing an increase of RMB2,401,096 million or 9.47% over the end of the previous year. Due to customers amounted to RMB23,368,159 million, representing an increase of RMB1,959,225 million or 9.15% over the end of the previous year. In terms of the structure, time deposits were RMB11,964,405 million, demand deposits were RMB10,943,680 million, other deposits were RMB225,851 million and accrued interest was RMB234,223 million.

Shareholders' equity amounted to RMB2,670,628 million, representing an increase of RMB325,745 million or 13.89% over the end of last year.

According to the five-category classification of loans, the balance of non-performing loans ("NPLs") amounted to RMB239,785 million, representing an increase of RMB4,701 million over the end of the previous year. The NPL ratio was 1.44%, representing a decrease of 0.08 percentage points over the end of the previous year. The allowance to NPL ratio stood at 198.09%, representing an increase of 22.33 percentage points over the end of the previous year.

The core tier 1 capital adequacy ratio was 12.93%, the tier 1 capital adequacy ratio was 14.16% and the capital adequacy ratio was 16.65%1, all meeting regulatory requirements.

1 Calculated in accordance with the Regulation Governing Capital of Commercial Banks (Provisional).

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4. SIGNIFICANT EVENTS

4.1 Significant changes in major financial data and financial indicators and the reasons thereof

	√ Applicable	Not applicable
				In RMB millions, except for percentages
		30 September	31 December	Increase/
Item	2019	2018	Decrease (%)	Main reasons for change
Derivative financial	117,828	71,335	65.18	As affected by factors such
	assets				as increasing market price
					fluctuation, changes in the
					valuation of derivative contracts
					increased, resulting in the large
					increase in both derivative
					financial assets and liabilities
Reverse repurchase	1,116,924	734,049	52.16	The lending from reverse
	agreements				repurchase agreements
					increased
Other assets	565,639	380,404	48.69	Precious metals leased and
					clearing amount of receivables
					increased
Derivative financial	140,156	73,573	90.50	As affected by factors such
	liabilities				as increasing market price
					fluctuation, changes in the
					valuation of derivative contracts
					increased, resulting in the large
					increase in both derivative
					financial assets and liabilities
Repurchase agreements	270,975	514,801	(47.36)	The balance of deposits from bond
					pledge decreased
Deferred income tax	2,145	1,217	76.25	The increase in fair value of
	liabilities				financial instruments measured
					at fair value through profit or
					loss resulted in the increase in
					deferred income tax liabilities
					recognised accordingly
Other equity instruments	236,018	86,051	174.28	Due to the issuance of preference
					shares and perpetual bonds

In RMB millions, except for percentages

		Nine months	Nine months
		ended	ended
		30 September	30 September	Increase/
Item	2019	2018	Decrease (%)	Main reasons for change
Net trading income	8,157	4,869	67.53	Income from derivative financial
					instruments increased
Net loss on financial	(5,174)	(1,382)	274.38	The increase in the size of
	investments				structured deposits resulted
					in the increase in payments to
					customers
Net profit attributable	976	493	97.97	Net profit of non-wholly-owned
	to non-controlling				subsidiaries increased
	interests

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4.2 Progress of significant events and analysis of their effects and solutions

√ Applicable

Not applicable

1. Issuance of Undated Additional Tier 1 Capital Bonds
   As approved by the China Banking and Insurance Regulatory Commission and the People's Bank of China, the Bank made a public issuance of RMB80.0 billion undated additional tier 1 capital bonds in China's national inter-bank bond market in July 2019. Please refer to the announcements published by the Bank on the "HKEXnews" website of Hong Kong Exchanges and Clearing Limited (hereinafter referred to as "HKEX") and website of Shanghai Stock Exchange for details.
2. Issuance of Preference Shares
   As approved by the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission, the Bank made a non-public issuance of RMB70.0 billion domestic preference shares in September 2019. With the approval of the Shanghai Stock Exchange, the domestic preference shares were listed on the integrated trading platform of the Shanghai Stock Exchange for transfer as of 16 October 2019. Please refer to the announcements published by the Bank on the "HKEXnews" website of HKEX and website of Shanghai Stock Exchange for details.
3. Progress of the Redemption of Offshore Preference Shares
   In 2014, the Bank issued USD2.94 billion USD Preference Shares and RMB12.0 billion RMB Preference Shares in the offshore market. On 29 August 2019, the Board of Directors of the Bank considered and approved the Proposal on Exercising the Redemption Right of the Offshore Preference Shares. The Bank proposes to exercise the redemption right of all of the aforesaid offshore preference shares on 10 December 2019, under the condition that the approval from the China Banking and Insurance Regulatory Commission is obtained. In October 2019, the Bank received a reply letter from the China Banking and Insurance Regulatory Commission, pursuant to which, no objections were raised to the Bank's redeeming USD2.94 billion USD Preference Shares and RMB12.0 billion RMB Preference Shares. Please refer to the announcements published by the Bank on the "HKEXnews" website of HKEX and website of Shanghai Stock Exchange for details.

4.3 Implementation of cash dividend policy during the reporting period

√ Applicable

Not applicable

Upon the approval at the Annual General Meeting for the Year 2018 held on 20 June 2019, the Bank has distributed cash dividends of about RMB89,315 million, or RMB2.506 per ten shares (pre-tax), for the period from 1 January 2018 to 31 December 2018 to the ordinary shareholders whose names appeared on the register of shareholders upon the close of market on 2 July 2019.

11

During the reporting period, the Bank did not distribute any dividend on the preference shares. The Bank considered and approved the implementation of dividend distribution for preference shares at the meeting of the Board of Directors convened on 25 October 2019, and decided to distribute total dividends of RMB2,025 million for domestic preference shares on 25 November 2019 at a dividend rate of 4.5% (pre-tax, and tax payable arising from dividend income gained by domestic preference shareholders shall be borne by them in accordance with relevant laws and regulations); and to distribute total dividends equivalent to about RMB2,512 million (estimated based on the exchange rate at the end of September, and the actual sum will depend on the exchange rate on the day of announcement) for offshore preference shares on 10 December 2019 at a dividend rate of 6% (post-tax, i.e., actual dividend rate received by offshore preference shareholders).

4.4 Unfulfilled commitments during the reporting period

Applicable

√ Not applicable

4.5 Warnings and explanations on estimated loss or significant changes as compared to the same period of last year in net accumulated profit from the beginning of the year to the end of the next reporting period

Applicable

√ Not applicable

5. APPENDICES

1. Financial statements prepared based on IFRSs are attached in Appendix I to this report
2. Capital adequacy ratios disclosed as per the Regulation Governing Capital of Commercial Banks (Provisional), leverage ratio disclosed as per the Administrative Measures for Leverage Ratio of Commercial Banks (Revised) and liquidity coverage ratio disclosed as per the Administrative Measures for the Information Disclosure of Liquidity Coverage Ratio of Commercial Banks are attached in Appendix II to this report

12

6. RELEASE OF QUARTERLY REPORT

The  report  will  be  published  simultaneously  on  the  "HKEXnews"  website  of  HKEX (www.hkexnews.hk) and the website of the Bank (www.icbc-ltd.com). The quarterly report prepared in accordance with PRC GAAP will also be published simultaneously on the website of the Shanghai Stock Exchange (www.sse.com.cn) and the website of the Bank (www.icbc-ltd.com).

This report is prepared in both Chinese and English. In case of any discrepancy between the two versions, the Chinese version shall prevail.

By Order of

The Board of Directors of

Industrial and Commercial Bank of China Limited

Beijing, China

25 October 2019

As at the date of this announcement, the Board of Directors comprises Mr. CHEN Siqing, Mr. GU Shu and Mr. HU Hao as executive directors, Mr. YE Donghai, Mr. ZHENG Fuqing, Ms. MEI Yingchun, Mr. DONG Shi and Mr. LU Yongzhen as non-executive directors, Mr. Anthony Francis NEOH, Mr. YANG Siu Shun, Ms. Sheila Colleen BAIR, Mr. SHEN Si, Mr. Nout WELLINK and Mr. Fred Zuliu HU as independent non-executive directors.

13

Appendix I

Industrial and Commercial Bank of China Limited

Consolidated Statement of Profit or Loss - Based on IFRS

For the nine months ended 30 September 2019

(In RMB millions, unless otherwise stated)

	Three months	Nine months	Three months	Nine months
	ended	ended	ended	ended
	30 September	30 September	30 September	30 September
	2019		2019	2018	2018
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Interest income	266,983	775,140	243,243	700,050
Interest expense	(113,138)	(321,994)	(97,229)	(276,420)
NET INTEREST INCOME	153,845		453,146	146,014	423,630
Fee and commission income	40,358		135,606	38,227	125,930
Fee and commission expense	(4,224)	(10,971)	(3,748)	(12,191)
NET FEE AND COMMISSION INCOME	36,134		124,635	34,479	113,739
Net trading income	2,284		8,157	1,825	4,869
Net loss on financial investments	(1,750)	(5,174)	(3,311)	(1,382)
Other operating (expense)/income, net	(32)	3,920		(429)	(976)
OPERATING INCOME	190,481		584,684	178,578	539,880
Operating expenses	(48,466)	(135,620)	(46,508)	(128,466)
Impairment losses on assets	(38,576)	(137,756)	(33,475)	(116,933)
OPERATING PROFIT	103,439		311,308	98,595	294,481
Share of profits of associates and joint ventures	506		1,846	712	2,042
PROFIT BEFORE TAXATION	103,945		313,154	99,307	296,523
Income tax expense	(19,947)	(60,466)	(19,844)	(56,403)
PROFIT FOR THE PERIOD	83,998		252,688	79,463	240,120

14

Industrial and Commercial Bank of China Limited

Consolidated Statement of Profit or Loss - Based on IFRS (continued) For the nine months ended 30 September 2019

(In RMB millions, unless otherwise stated)

	Three months	Nine months	Three months	Nine months
	ended	ended	ended	ended
	30 September	30 September	30 September	30 September
	2019		2019	2018	2018
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Attributable to:
Equity holders of the parent company	83,781		251,712	79,185	239,627
Non-controlling interests	217	976	278	493
Profit for the period	83,998		252,688	79,463	240,120
EARNINGS PER SHARE
- Basic (RMB yuan)	0.24		0.71		0.22		0.67
- Diluted (RMB yuan)	0.24		0.71		0.22		0.67

Chen Siqing	Gu Shu	Zhang Wenwu
Chairman	President	General Manager of the Finance
		and Accounting Department

15

Industrial and Commercial Bank of China Limited

Consolidated Statement of Profit or Loss and Other Comprehensive Income - Based on IFRS For the nine months ended 30 September 2019

(In RMB millions, unless otherwise stated)

	Three months	Nine months	Three months	Nine months
	ended	ended	ended	ended
	30 September	30 September	30 September	30 September
	2019		2019	2018	2018
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Profit for the period	83,998	252,688	79,463	240,120
Other comprehensive income (after tax, net):

• Items that will not be reclassified to profit or loss:
• Changes in fair value of equity instruments

		designated as at fair value through
			other comprehensive income	(915)	(132)	1,066	1,395
	Other comprehensive income recognised
			under equity method	-	5	-	6
		Others	1	1	(3)	(6)

• Items that may be reclassified subsequently
• to profit or loss:
• Changes in fair value of debt instruments

		measured at fair value through
			other comprehensive income	3,413		7,407	2,501	14,445
	Credit losses of debt instruments measured
		at fair value through other
			comprehensive income	227	186	138	(1,296)
	Reserve from cash flow hedging instruments	119		(524)	(258)	(298)
	Other comprehensive income recognised
			under equity method	262		(94)	(69)	326
	Foreign currency translation differences	5,714		6,725	6,687	4,328
		Others	(871)	(880)	(723)	(953)
Subtotal of other comprehensive income
	for the period	7,950		12,694	9,339	17,947
Total comprehensive income for the period	91,948		265,382	88,802	258,067
Total comprehensive income attributable to:
	Equity holders of the parent company	91,554		264,243	88,368	257,451
	Non-controlling interests	394		1,139	434	616

Chen Siqing	Gu Shu	Zhang Wenwu
Chairman	President	General Manager of the Finance
		and Accounting Department

16

Industrial and Commercial Bank of China Limited

Consolidated Statement of Financial Position - Based on IFRS 30 September 2019

(In RMB millions, unless otherwise stated)

				30 September	31 December
				2019		2018
				(Unaudited)	(Audited)
ASSETS
Cash and balances with central banks	3,386,317		3,372,576
Due from banks and other financial institutions	1,172,341	962,449
Derivative financial assets	117,828	71,335
Reverse repurchase agreements	1,116,924	734,049
Loans and advances to customers	16,234,535	15,046,132
Financial investments	7,454,996	6,754,692
- Financial investments measured at fair value
			through profit or loss	946,711	805,347
- Financial investments measured at fair value
			through other comprehensive income	1,512,792	1,430,163
- Financial investments measured at amortised cost	4,995,493	4,519,182
Investments in associates and joint ventures	29,821	29,124
Property and equipment	289,345	290,404
Deferred income tax assets	58,635	58,375
Other assets	565,639	380,404
TOTAL ASSETS	30,426,381		27,699,540

17

Industrial and Commercial Bank of China Limited

Consolidated Statement of Financial Position - Based on IFRS (continued) 30 September 2019

(In RMB millions, unless otherwise stated)

		30 September	31 December
		2019		2018
		(Unaudited)	(Audited)
LIABILITIES
Due to central banks	552		481
Financial liabilities designated as at fair value through
	profit or loss	111,967		87,400
Derivative financial liabilities	140,156		73,573
Due to banks and other financial institutions	2,148,953		1,814,495
Repurchase agreements	270,975	514,801
Certificates of deposit	355,953	341,354
Due to customers	23,368,159	21,408,934
Income tax payable	74,780	84,741
Deferred income tax liabilities	2,145	1,217
Debt securities issued	749,661	617,842
Other liabilities	532,452	409,819
TOTAL LIABILITIES	27,755,753		25,354,657
EQUITY
Equity attributable to equity holders of the parent company
	Share capital	356,407		356,407
	Other equity instruments	236,018		86,051
	Reserves	694,224		680,877
	Retained profits	1,368,247		1,206,666
		2,654,896		2,330,001
Non-controlling interests	15,732		14,882
TOTAL EQUITY	2,670,628		2,344,883
TOTAL EQUITY AND LIABILITIES	30,426,381		27,699,540

Chen Siqing	Gu Shu	Zhang Wenwu
Chairman	President	General Manager of the Finance
		and Accounting Department

18

Industrial and Commercial Bank of China Limited

Consolidated Cash Flow Statement - Based on IFRS

For the nine months ended 30 September 2019

(In RMB millions, unless otherwise stated)

		Nine months	Nine months
		ended	ended
		30 September	30 September
		2019	2018
		(Unaudited)	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation	313,154	296,524
Adjustments for:
Share of profits of associates and joint ventures	(1,846)	(2,042)
	Depreciation	14,227	9,376
	Amortisation	2,342	4,474
Amortisation of financial investments	(2,439)	(115)
Impairment losses on assets	137,756	116,933
Unrealised loss on foreign exchange	14,421	24,637
Interest expense on debt securities issued	21,393	17,213
Accreted interest on impaired loans	(1,757)	(2,019)
Net loss on disposal of financial investments	5,676	1,577
Net trading gain on equity investments	(1,850)	(455)
Net (gain)/loss on changes in fair value	(10,970)	5,727
Net gain on disposal and overage of property and equipment
	and other assets (other than repossessed assets)	(933)	(1,361)
	Dividend income	(502)	(195)
		488,672		470,274

19

Industrial and Commercial Bank of China Limited

Consolidated Cash Flow Statement - Based on IFRS (continued)

For the nine months ended 30 September 2019

(In RMB millions, unless otherwise stated)

		Nine months	Nine months
		ended	ended
		30 September	30 September
		2019	2018
		(Unaudited)	(Unaudited)
Net decrease/(increase) in operating assets:
Due from central banks	112,115	127,341
Due from banks and other financial institutions	174,636	(171,499)
Financial investments measured at fair value through
	profit or loss	(119,965)	(285,657)
Reverse repurchase agreements	37,115	185,600
Loans and advances to customers	(1,246,351)	(879,358)
Other assets	(172,909)	(98,279)
		(1,215,359)	(1,121,852)
Net increase/(decrease) in operating liabilities:
Financial liabilities designated as at fair value through
	profit or loss	20,690		3,309
Due to central banks	70		(19)
Due to banks and other financial institutions	308,317		284,165
Repurchase agreements	(243,744)	(481,855)
Certificates of deposit	2,041	41,845
Due to customers	1,892,284	1,675,361
Other liabilities	194,526	77,048
		2,174,184		1,599,854
Net cash flows from operating activities before tax	1,447,497		948,276
Income tax paid	(72,290)	(65,374)
Net cash flows from operating activities	1,375,207		882,902

20

Industrial and Commercial Bank of China Limited

Consolidated Cash Flow Statement - Based on IFRS (continued)

For the nine months ended 30 September 2019

(In RMB millions, unless otherwise stated)

	Nine months	Nine months
	ended	ended
	30 September	30 September
	2019		2018
	(Unaudited)	(Unaudited)
CASH FLOWS FROM INVESTING ACTIVITIES	(30,944)
Purchases of property and equipment and other assets	(37,761)
Proceeds from disposal of property and equipment and other	1,793
assets (other than repossessed assets)		1,385
Purchases of financial investments	(1,894,434)	(1,644,217)
Proceeds from sale and redemption of financial investments	1,277,473		1,162,575
Investments in associates and joint ventures	(820)	(1,660)
Dividends received	2,044		1,698
Net cash flows from investing activities	(644,888)	(517,980)
CASH FLOWS FROM FINANCING ACTIVITIES
150,000
Proceeds from issuance of other equity instruments		-
Capital injection by non-controlling shareholders	57		76
Proceeds from issuance of debt securities	930,202		802,249
Interest paid on debt securities	(15,147)	(13,197)
Repayment of debt securities	(806,665)	(739,451)
Acquisition of non-controlling interests	(11)	-
Dividends paid on ordinary shares	(89,315)	(85,823)
Dividends paid to non-controlling shareholders	(338)	(327)
Net cash flows from financing activities	168,783		(36,473)
NET INCREASE IN CASH AND CASH EQUIVALENTS	899,102		328,449
Cash and cash equivalents at beginning of the period	1,509,524		1,520,330
Effect of exchange rate changes on cash and cash equivalents	30,277		35,744
CASH AND CASH EQUIVALENTS AT END OF
THE PERIOD	2,438,903		1,884,523
NET CASH FLOWS FROM OPERATING ACTIVITIES
INCLUDE:	800,472
Interest received		717,986
Interest paid	(293,796)	(265,605)

Chen Siqing	Gu Shu	Zhang Wenwu
Chairman	President	General Manager of the Finance
		and Accounting Department

21

Appendix II Capital Adequacy Ratio, Leverage Ratio and Liquidity Coverage Ratio

1. Capital Adequacy Ratio

In RMB millions, except for percentages

	30 September 2019	31 December 2018
		Parent		Parent
Item	Group	Company	Group	Company
Net core tier 1 capital	2,406,627	2,170,451	2,232,033	2,040,396
Net tier 1 capital	2,636,734	2,381,687	2,312,143	2,102,348
Net capital base	3,099,440	2,831,689	2,644,885	2,419,120
Core tier 1 capital adequacy ratio	12.93%	12.84%	12.98%	13.23%
Tier 1 capital adequacy ratio	14.16%	14.09%	13.45%	13.63%
Capital adequacy ratio	16.65%	16.76%	15.39%	15.68%

II. Leverage Ratio

In RMB millions, except for percentages

	30 September	30 June	31 March	31 December
Item	2019	2019	2019	2018
Net tier 1 capital	2,636,734	2,395,570	2,395,508	2,312,143
Balance of adjusted on- and off-balance
sheet assets	32,402,109	32,093,349	31,442,163	29,679,878
Leverage ratio	8.14%	7.46%	7.62%	7.79%

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III. Quantitative Information Disclosure of Liquidity Coverage Ratio

In RMB millions, except for percentages

No.				Third quarter 2019
				Total	Total
				un-weighted	weighted
				value	value
HIGH-QUALITY LIQUID ASSETS
1	Total high-quality liquid assets (HQLA)		4,986,360
CASH OUTFLOWS
2	Retail deposits and deposits from small business
		customers, of which:	10,990,820	1,095,045
3			Stable deposits	62,122	2,175
4			Less stable deposits	10,928,698	1,092,870
5	Unsecured wholesale funding, of which:	12,880,037	4,290,560
6		Operational deposits (excluding those generated
			from correspondent banking activities)	7,331,602	1,779,172
7		Non-operational deposits (all counterparties)	5,461,268	2,424,221
8			Unsecured debt	87,167	87,167
9	Secured funding		18,291
10	Additional requirements, of which:	3,424,206	1,217,514
11		Outflows related to derivative exposures and other
			collateral requirements	1,028,791	1,028,786
12		Outflows related to loss of funding on
			debt products	-	-
13		Credit and liquidity facilities	2,395,415	188,728
14	Other contractual funding obligations	57,535	57,008
15	Other contingent funding obligations	3,589,331	116,291
16	TOTAL CASH OUTFLOWS		6,794,709
CASH INFLOWS
17	Secured lending (including reverse repos and
		securities borrowing)	1,018,439	539,828
18	Inflows from fully performing exposures	1,508,784	1,111,680
19	Other cash inflows	1,033,318	1,026,455
20	TOTAL CASH INFLOWS	3,560,541	2,677,963
					Total
					adjusted
					value
21	TOTAL HQLA		4,986,360
22	TOTAL NET CASH OUTFLOWS		4,116,746
23	LIQUIDITY COVERAGE RATIO (%)		121.18%

Note: Data of the above table are all the simple arithmetic means of the 92 natural days' figures of the recent quarter.

23