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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