INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED

Industrial and Commercial Bank of China Limited

1398

CNE1000003G1

Banks

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Industrial and Commercial Bank of China : 2020 Capital Adequacy Ratio Report

April 23, 2021 at 06:30 am EDT

Stock Code: 1398

EUR Preference Shares Stock Code: 4604

USD Preference Shares Stock Code: 4620

2020

Capital Adequacy Ratio Report

CONTENTS

Introduction

Scope of Calculation of Capital Adequacy Ratio Capital and Capital Adequacy Ratio

Implementation of Advanced Capital
- Management Approaches
Capital Adequacy Ratio
Capital Composition
Risk-WeightedAssets
Internal Capital Adequacy Assessment
Capital Planning and Management Plan for
- Capital Adequacy Ratios

Enterprise Risk Management

Credit Risk

Credit Risk Management
Credit Risk Exposure
Internal Ratings-based Approach
Weighted Approach
Credit Risk Mitigation
Loan Quality and Allowance for Impairment Losses on Loans
Counterparty Credit Risk
Asset Securitization

Market Risk

Market Risk Management
Market Risk Measurement

2	Interest Rate Risk in the Banking Book	29
3	- Management of Interest Rate Risk in the
5	Banking Book	29

	- Banking Book Interest Rate Sensitivity Analysis	30
5	Operational Risk	31
5	- Operational Risk Management	31
5	- Legal Risk	32
8	- Anti-Money Laundering	33
8	- Operational Risk Measurement	33
	Liquidity Risk	34
8	- Liquidity Risk Management	34

10	- Liquidity Risk Analysis	35

11	Other Risks	36

11	- Equity Risk in the Banking Book	36

13	- Reputational Risk	36

13	- Country Risk	37

16	Remuneration	38

17	Appendixes	40

19	- Capital Composition	40
- Balance Sheet at the Group's Level	46
20
- Explanations for Detailed Items	48
21
- Main Features of Eligible Capital Instruments
27
at the End of 2020	50

27	Definitions	60

27

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

Introduction

Company Profile

Industrial and Commercial Bank of China was established on 1 January 1984. On 28 October 2005, the Bank was wholly restructured to a joint-stock limited company. On 27 October 2006, the Bank was successfully listed on both Shanghai Stock Exchange and The Stock Exchange of Hong Kong Limited.

Through its continuous endeavor and stable development, the Bank has developed into the leading bank in the world, possessing an excellent customer base, a diversified business structure, strong innovation capabilities and market competitiveness. The Bank regards service as the very foundation to seek further development and adheres to creating value through services while providing a comprehensive range of financial products and services to over 8.60 million corporate customers and 680 million personal customers. The Bank has been consciously integrating the social responsibilities with its development strategy and operation and management activities, and gaining wide recognition in the aspects of supporting pandemic containment, promoting inclusive finance, backing poverty alleviation and rural revitalization, developing green finance and participating in public welfare undertakings.

The Bank always keeps in mind its underlying mission of serving the real economy with its principal business, and along with the real economy it prospers, suffers and grows. Taking a risk-based approach and never overstepping the bottom line, it constantly enhances its capability of controlling and mitigating risks. Besides, the Bank remains steadfast in understanding and following the business rules of commercial banks to strive to be a century-old bank. It also stays committed to seeking progress with innovation while maintaining stability, continuously enhances the key development strategies, actively develops the FinTech and accelerates the digital transformation. The Bank unswervingly delivers specialized services, and pioneers a specialized business model, thus making it "a craftsman in large banking".

The Bank was ranked the 1st place among the Top 1000 World Banks by The Banker, the 1st place in the Global 2000 by Forbes, and the 1st place in the list of commercial banks of the Global 500 in Fortune for the eighth consecutive year, and took the 1st place among the Top 500 Banking Brands of Brand Finance for the fifth consecutive year.

Disclosure Basis

This report is prepared and disclosed in accordance with the Capital Regulation and related regulations.

Disclosure Statement

The report contains forward-looking statements on the Bank's financial positions, business performance and development. The statements are made based on existing plans, estimates and forecasts, and bear upon future external events or the Group's future finance, business or performance in other aspects, and may involve future plans which do not constitute substantive commitment to investors. Hence, investors and persons concerned shall be fully aware of the risks and understand the difference between plans, estimates and commitments.

Scope of Calculation of Capital Adequacy Ratio

Investees' Consolidation Treatment under Capital Adequacy Ratio Calculation

The Bank calculated capital adequacy ratios at all tiers in accordance with the Capital Regulation. The scope of calculation of consolidated capital adequacy ratio includes the Bank and financial institutions in which the Bank directly or indirectly invested in accordance with the Capital Regulation.

TREATMENT OF DIFFERENT TYPES OF INVESTEES FOR THE CALCULATION OF CONSOLIDATED CAPITAL ADEQUACY RATIO

		Treatment for the calculation of consolidated capital
S/N	Type of investee	adequacy ratio

1	Financial institutions with majority voting	Included in the calculation of consolidated capital adequacy ratio
	rights or controlling interest (excluding
	insurance companies)

2 Insurance companies with majority voting rights or controlling interest

Excluded from the calculation of consolidated capital adequacy ratio, deducted corresponding capital investment from capital at all tiers; deducted the corresponding capital shortfall, if any

3 Significant minority investments in capital instruments issued by financial institutions

Excluded from the calculation of consolidated capital adequacy ratio, deducted the part of core tier 1 capital investments exceeding 10% of the Bank's core tier 1 capital and deducted all of additional tier 1 and tier 2 capital investments from corresponding tiers of capital. The part failing to reach the deduction threshold shall be calculated as risk-weighted assets

4 Non-significant minority investments in capital instruments issued by financial institutions

Excluded from the calculation of consolidated capital adequacy ratio and deducted the part of total investments exceeding 10% of the Bank's core tier 1 capital from corresponding tiers of regulatory capital. The part failing to reach the deduction threshold shall be calculated as risk-weighted assets

5 Minority investments in the equity of commercial entities

Excluded from the calculation of consolidated capital adequacy ratio and calculated as risk-weighted assets

At the end of 2020, the difference between the scope of the calculation of consolidated capital adequacy ratio and the scope of financial reporting consolidation is ICBC-AXA. Pursuant to the Capital Regulation, ICBC-AXA was excluded from the calculation of consolidated capital adequacy ratio.

Capital Adequacy Ratio Report 2020

Scope of Calculation of Capital Adequacy Ratio

Major Investees Included in and Deducted from the Calculation of Consolidated Capital Adequacy Ratio

TOP 10 INVESTEES INCLUDED IN THE CALCULATION OF CONSOLIDATED CAPITAL ADEQUACY RATIO

In RMB millions, except for percentages

			Shareholding
		Balance of	percentage
S/N	Name of investee	investment	(%)	Place of incorporation	Principal activity

1	ICBC (Asia)	47,621	100.00	Hong Kong, China	Commercial banking

2	ICBC Wealth	16,000	100.00	Beijing, China	Wealth management
	Management

3	ICBC Investment	12,000	100.00	Nanjing, China	Financial assets
					investment

4	ICBC Leasing	11,000	100.00	Tianjin, China	Leasing

5	ICBC (Macau)	10,316	89.33	Macau, China	Commercial banking

6	ICBC (Argentina)	5,782	100.00	Buenos Aires, Argentina	Commercial banking

7	ICBC Standard Bank	5,348	60.00	London, UK	Commercial banking

8	ICBC (Thai)	4,898	97.86	Bangkok, Thailand	Commercial banking

9	ICBC International	4,066	100.00	Hong Kong, China	Investment banking

10	ICBC (Europe)	3,294	100.00	Luxembourg	Commercial banking

INVESTEES DEDUCTED FROM THE CALCULATION OF CONSOLIDATED CAPITAL ADEQUACY RATIO
				In RMB millions, except for percentages

			Shareholding
		Balance of	percentage
S/N	Name of investee	investment	(%)	Place of incorporation	Principal activity

1	ICBC-AXA	7,980	60.00	Shanghai, China	Insurance

Capital Deficiencies and Restrictions on Capital Transfer

As at the end of 2020, there is no capital deficiency in the financial institutions in which the majority or controlling interests is held by the Bank as measured in accordance with local regulatory requirements. During the reporting period, there is no material restriction on the fund transfer within the Group.

Capital and Capital Adequacy Ratio

Implementation of Advanced Capital Management Approaches

According to the scope of implementing the advanced capital management approaches as approved by the regulatory authorities, the foundation internal ratings-based (IRB) approach was adopted for corporate credit risk, the IRB approach for retail credit risk, the internal model approach (IMA) for market risk, and the standardized approach for operational risk meeting regulatory requirements. The weighted approach was adopted for credit risk uncovered by the IRB approach and the standardized approach for market risk uncovered by the IMA.

Capital Adequacy Ratio

RESULTS OF CAPITAL ADEQUACY RATIO CALCULATION OF THE GROUP AND PARENT COMPANY

In RMB millions, except for percentages

	At 31 December 2020	At 31 December 2019

		Parent		Parent
Item	Group	Company	Group	Company
Net core tier 1 capital	2,653,002	2,404,030		2,457,274	2,222,316
Net tier 1 capital	2,872,792	2,605,594		2,657,523	2,403,000
Net capital base	3,396,186	3,114,878		3,121,479	2,852,663
Core tier 1 capital adequacy ratio (%)	13.18	13.14		13.20	13.29
Tier 1 capital adequacy ratio (%)	14.28	14.24		14.27	14.37
Capital adequacy ratio (%)	16.88	17.02		16.77	17.06

Capital Composition

As at the end of 2020, the core tier 1 capital adequacy ratio, tier 1 capital adequacy ratio and capital adequacy ratio calculated by the Bank in accordance with the Capital Regulation stood at 13.18%, 14.28% and 16.88%, respectively, complying with regulatory requirements.

Capital Adequacy Ratio Report 2020

Capital and Capital Adequacy Ratio

CAPITAL ADEQUACY RATIO OF THE GROUP CALCULATED IN ACCORDANCE WITH THE CAPITAL REGULATION

In RMB millions, except for percentages

		At 31 December	At 31 December
Item	2020	2019
Core tier 1 capital	2,669,055	2,472,774
	Paid-in capital	356,407	356,407
Valid portion of capital reserve	148,534	149,067
	Surplus reserve	322,692	292,149
	General reserve	339,486	304,876
	Retained profits	1,508,562	1,367,180
Valid portion of minority interests	3,552	4,178
	Others	(10,178)	(1,083)
Core tier 1 capital deductions	16,053	15,500
	Goodwill	8,107	9,038
Other intangible assets other than land use rights	4,582	2,933
Cash flow hedge reserves that relate to the hedging of items that	(4,616)	(4,451)
	are not fair valued on the balance sheet
Investments in core tier 1 capital instruments issued by financial	7,980	7,980
	institutions that are under control but not subject to consolidation
Net core tier 1 capital	2,653,002	2,457,274
Additional tier 1 capital	219,790	200,249
Additional tier 1 capital instruments and related premium	219,143	199,456
Valid portion of minority interests	647	793
Net tier 1 capital	2,872,792	2,657,523
Tier 2 capital	523,394	463,956
Valid portion of tier 2 capital instruments and related premium	351,568	272,680
Surplus provision for loan impairment	170,712	189,569
Valid portion of minority interests	1,114	1,707
Net capital base	3,396,186	3,121,479
Risk-weighted assets(1)	20,124,139	18,616,886
Core tier 1 capital adequacy ratio (%)	13.18	13.20
Tier 1 capital adequacy ratio (%)	14.28	14.27
Capital adequacy ratio (%)	16.88	16.77

Note: (1) Refers to risk-weighted assets after capital floor and adjustments.

For information disclosed in accordance with the Notice on Enhancing Disclosure Requirements for Composition of Capital, Appendix 2 to the Notice on Issuing Regulatory Documents on Capital Regulation for Commercial Banks, please refer to the Appendixes of this report, including Capital Composition, Balance Sheet at the Group's level (financial consolidation and regulatory consolidation), Illustrated Balance Sheet, Mapped Components of Balance Sheet to Capital Item as well as Main Features of Eligible Capital Instruments.

Capital and Capital Adequacy Ratio

CAPS IN THE CAPITAL CALCULATION

		In RMB millions

	At 31 December	At 31 December
Item	2020	2019

Valid caps of surplus provision for loan impairment to tier 2 capital

Parts covered by internal ratings-based approach

			Provision for loan impairment	507,096	460,851

			Expected loss	241,738	227,853

			Surplus provision for loan impairment	265,358	232,998

			Valid cap of surplus provision for loan impairment in tier 2	73,678	66,488
			capital irrespective of adjustment during the parallel period

			Valid portion of surplus provisions for loan impairment in	89,232	115,158
			tier 2 capital higher than 150% of allowance to
			non-performing loans ("NPL") giving consideration to
			adjustment during the parallel period

			Valid cap of surplus provisions for loan impairment in	162,910	181,646
			tier 2 capital giving consideration to adjustment during the
			parallel period

			Valid portion of surplus provision for loan impairment in	162,910	181,646
			tier 2 capital during the parallel period

		Parts uncovered by internal ratings-based approach

			Provision for loan impairment	23,204	17,647

			Minimum requirement on provision for loan impairment	15,402	9,724

			Surplus provision for loan impairment	7,802	7,923

			Valid caps of surplus provision for loan impairment in tier 2 capital	78,098	75,006

			Valid portion of surplus provision for loan impairment in tier 2 capital	7,802	7,923

II.	Deduction cap for items applicable to thresholds deduction

		Non-significant minority investments in capital instruments	138,247	84,515

issued by financial institutions that are not subject
to consolidation

		Relevant cap	265,300	245,727

		Deductible portion	-	-

Significant minority investments in core tier 1 capital instruments	32,452	37,654

issued by financial institutions that are not subject to
consolidation

		Relevant cap	265,300	245,727

		Deductible portion	-	-

Deferred tax assets arising from temporary differences	65,719	60,846

		Relevant cap	265,300	245,727

		Deductible portion	-	-

Significant minority investments in core tier 1 capital	98,171	98,500

instruments issued by financial institutions that are not
subject to consolidation and deferred tax assets arising
from temporary differences

Relevant cap	397,950	368,590

Deductible portion	-	-

Capital Adequacy Ratio Report 2020

Capital and Capital Adequacy Ratio

For changes in share capital of the Bank during the reporting period, please refer to "Details of Changes in Share Capital and Shareholding of Substantial Shareholders" in the 2020 Annual Report. For material capital investment activities of the Bank during the reporting period, please refer to "Significant Events" in the 2020 Annual Report.

Risk-Weighted Assets

		In RMB millions

	At 31 December	At 31 December
Item	2020	2019
Credit risk-weighted assets	18,535,324	17,089,815
Parts covered by internal ratings-based approach	12,279,663	11,081,413
Parts uncovered by internal ratings-based approach	6,255,661	6,008,402
Market risk-weighted assets	174,784	178,718
Parts covered by internal model approach	94,238	102,412
Parts uncovered by internal model approach	80,546	76,306
Operational risk-weighted assets	1,414,031	1,348,353
Total	20,124,139	18,616,886

Internal Capital Adequacy Assessment

The Bank's internal capital adequacy assessment comprises the risk identification, risk assessment, capital adequacy forecast and enterprise risk stress testing. The risk identification is to make a judgment on all the major risks the Bank is exposed to. The risk assessment system provides an assessment on all major risks of the Bank and conducts a comprehensive analysis on the risk profile and management status of various major risks to compute the target capital adequacy ratio of the Bank. The capital adequacy forecast is to forecast changes in risk-weighted assets and capital, taking into account the Bank's business planning and financial planning so as to further predict the capital adequacy levels in the following years. The enterprise risk stress testing is to set stress scenarios reflecting business operation, asset-liability portfolio and risk features of the Bank under the premise of analysis on future macroeconomic trends to work out changes in indicators such as capital adequacy ratios of the Bank under the stress scenarios.

Capital Planning and Management Plan for Capital Adequacy Ratios

The Board of Directors and the Shareholders' General Meeting of the Bank reviewed and approved the 2018-2020 Capital Planning of ICBC in response to the new economic and financial trends and regulatory requirements. Comprehensively taking into account domestic and overseas regulatory requirements and the needs for sustainable development and shareholder return, the Planning defined the capital management objectives and specific measures to be undertaken. During the planning period, the Bank will endeavor to ensure that capital adequacy ratios at all tiers comply with regulatory rules of China and regulatory requirements on capital surcharges of Global Systemically Important Banks. The Bank will also endeavor to maintain a safety margin and buffer, so as to support its strategic development. On the basis of keeping capital adequacy ratio at a reasonable level, the Bank will attach great importance to the balance between capital adequacy and return on capital, and maintain stable capital adequacy ratio. Moreover, the Bank will continue to strengthen capital replenishment and coordinated management on capital use, further improve capital management mechanism and constantly deepen the reform on economic capital management to increase capital use efficiency. The Bank's capital adequacy ratios at all tiers had reached the regulatory standard during the reporting period and will continue to fulfill the regulatory requirements. In 2020, the Board of Directors and the Shareholders' General Meeting of the Bank reviewed and approved the 2021-2023 Capital Planning of ICBC, which will be implemented from 2021.

On the basis of capital replenishment by retained profits, the Bank proactively expanded the channels for external capital replenishment and continuously promoted the innovation of capital instruments, to reinforce the capital strength, optimize capital structure and control the cost of capital rationally.

Capital and Capital Adequacy Ratio

The Bank made a non-public issuance of 145 million USD-denominatednon-cumulative perpetual offshore preference shares in September 2020, raising a total amount of USD2.9 billion. Subject to applicable laws and the approval of regulatory authorities, all proceeds from the issuance, after deduction of commissions and issuance expenses, will be used to replenish additional tier 1 capital of the Bank.

The Bank received a reply from CBIRC in September 2020, pursuant to which, approval was granted to the Bank to issue undated additional tier 1 capital bonds in foreign currency of an amount no more than RMB40.0 billion equivalent in the offshore market, which will be counted as the additional tier 1 capital of the Bank in accordance with relevant regulatory requirements.

The Proposal on the Issuance of Undated Additional Tier 1 Capital Bonds was reviewed and approved at the Second Extraordinary General Meeting of 2020 of the Bank, pursuant to which, the Bank planned to issue undated additional tier 1 capital bonds with the total amount up to RMB100.0 billion in the domestic market, which will be used to replenish the Bank's additional tier 1 capital. The issuance plan of undated additional tier 1 capital bonds is still subject to the approval of relevant regulatory authorities.

The Bank publicly issued two tranches of tier 2 capital bonds, worth RMB60.0 billion and RMB40.0 billion, in September and November 2020 successively in China's national inter-bank bond market, raising a total amount of RMB100.0 billion. The Bank issued a tier 2 capital bond of RMB30.0 billion in China's national inter-bank bond market in January 2021. All proceeds will be used to replenish the Bank's tier 2 capital in accordance with the applicable laws as approved by relevant regulatory authorities.

Capital Adequacy Ratio Report 2020

Enterprise Risk Management

Enterprise risk management is a process to effectively identify, assess, measure, monitor, control or mitigate and report risks in order to ensure the realization of the Group's operating and strategic objectives by setting up effective and balanced risk governance structure, fostering robust and prudent risk culture, formulating unified risk management strategies and risk appetite, and implementing the risk limit and risk management policies. The principles of enterprise risk management of the Bank include full coverage, matching, independence, perspectiveness and effectiveness, etc.

The Bank's organizational structure of risk management comprises the Board of Directors and its special committees, the Board of Supervisors, the Senior Management and its special committees, the risk management departments, the internal audit departments, etc. The risk management organizational structure is illustrated below:

Board of Directors

Board of Supervisors

the Board of Directors Board of Supervisors

Senior Executive

Vice Presidents

Business departments

Banking	Banking	Banking	BankCard	Market
Department	Department	Department	Department
Corporate	Personal	Institutional	Department	Global

President

Chief Risk Officer

Enterprise risk, market risk,

country risk

Credit risk

Liquidity risk, interest rate risk in the banking book

Operational risk, compliance risk

Reputational risk

Strategic risk

IT risk

Legal risk

Risk Management Committee	US Risk Committee	Audit Committee of
of the Board of Directors	the Board of	Directors

		Asset & Liability
		Management Committee
		Risk Management	Credit Risk
		Committee		Management Committee
Risk Management		Market Risk
Department		Management Committee

Credit and Investment		Operational Risk
Management Department
				Management Committee
Asset & Liability	Internal Audit Bureau

Management Department
Internal Control &
Compliance Department

Executive Office

Office of Steering Group for Deepening Reform

Financial Technology

Department

Legal Affairs Department

At the level of and the

At the level of Head Office

Board of directors of subsidiaries

Management of Branches	Senior management of subsidiaries

		Internal Audit Sub-bureau

Business departments of	Risk management departments and internal control &
branches and subsidiaries	compliance departments of branches and subsidiaries

At the level of branches and subsidiaries

First line of defense Second line of defense

Primary reporting line

Secondary reporting line

Third line of defense

Risks not mentioned above have been incorporated into the enterprise risk management system.

In 2020, the Bank's overall objective was to "build an enterprise risk management framework that matches a world-class and modern financial enterprise with global competitiveness". It focused on the "management of personnel, assets, defense lines and bottom lines", continuously improved the top-level design of risk management, and enhanced enterprise risk management based on the path of "active prevention, smart control and comprehensive management". The Bank revised and ameliorated the enterprise risk management system, performed risk management responsibilities, transmitted risk management culture, and achieved full coverage of institutions, businesses and personnel with risk management measures. Besides, it optimized the risk appetite and risk limit management system, improved risk emergency management capabilities and consolidated the foundation of the Group's consolidated risk management, to promote the intelligent construction of risk control system, and deepen the application of new technologies such as big data and artificial intelligence.

Credit Risk

Credit risk is the risk where loss is caused to the banking business when the borrower or counterparty fails to meet its contractual obligations. The Bank's credit risks mainly originate from loans, treasury operations (including due from banks, placements with banks, reverse repurchase agreements, corporate bonds and financial bonds investment), receivables and off-balance sheet credit business (including guarantees, commitments and financial derivatives trading).

Credit Risk Management

The Bank strictly adheres to regulatory requirements regarding credit risk management, diligently fulfills established strategies and objectives under the leadership of the Board of Directors and the Senior Management, and implements an independent, centralized and vertical credit risk management mode. The Board of Directors assumes the ultimate responsibility for the effectiveness of credit risk management. The Senior Management is responsible for executing the strategies, overall policy and system regarding credit risk management approved by the Board of Directors. The Credit Risk Management Committee of the Senior Management is the reviewing and decision-making organ of the Bank in respect of credit risk management, is responsible for reviewing material and important affairs of credit risk management, and performs its duty in accordance with the Charters of the Credit Risk Management Committee. The credit and investment management departments at different levels undertake the responsibility of coordinating credit risk management at respective levels, and the business departments implement credit risk management policies and standards for their respective business areas in accordance with their functions.

The Bank's credit risk management has the following characteristics: (1) Unified risk appetite. Unified credit risk appetite is implemented for the Bank's credit risk exposures; (2) Entire-process management. The credit risk management covers the entire process including customer investigation, credit rating, loan evaluation, loan review and approval, loan payment and post-lending monitoring; (3) System management. It continues to enhance the building of credit information system, and improve the tools to manage and control credit risk; (4) Strict management over credits. Strict qualification management is enforced on the business institutions and the credit practitioners. The Bank supervises and inspects its credits to promote compliant and robust operation; (5) The specialized institution is set up to conduct unified risk monitoring over credit risk businesses; and (6) The specialized institution is established to effectively coordinate management and directly participate in the collection and disposal of non-performing assets ("NPAs") in a timely manner or guide branches to do so.

According to the regulatory requirement on loan risk classification, the Bank implemented five-category classification management in relation to loan quality and classified loans into five categories: pass, special mention, substandard, doubtful and loss, based on the possibility of collecting the principal and interest of loans. In order to implement sophisticated management of credit asset quality and improve risk management, the Bank implemented the twelve-category internal classification system for corporate loans. The Bank applied five-category classification management to personal credit assets and ascertained the category of the loans based on the number of months in default, expected loss ratio, credit rating, collateral and other quantitative and qualitative factors.

Credit Risk Management of Corporate Loans

The Bank continued to strengthen the building of the credit policy system. A joint prevention and control mechanism was established to support key business development and risk management, with the coordinated participation by front-, middle- and back-office departments, and an intelligent credit risk management and control model consisting of "Three Gates" and "Seven-color Pools"1 was built, to highlight the strengthening of credit risk management and control. New credit approval regulations were implemented in an all-around manner, to optimize the review and approval system, and improve credit risk mitigation measures. Besides, the working capital loan management rules were optimized and integrated, the management

1 The intelligent credit risk management solutions of "Three Gates" and "Seven-color Pools" are the systematic summary of the Bank's management and control ideas on credit risk. "Three Gates" refer to asset selection at the entrance end, asset management at the threshold end and asset disposal at the exit end. "Seven-color Pools" cover seven color pools with risk rating from low to high, which are driven by intelligent risk control and can strengthen holistic coordination of the credit risk management and realize differential and precise risk management by pool, area and segment.

Capital Adequacy Ratio Report 2020

Credit Risk

of risk control process was strengthened, and the transformation of supporting systems was completed. The Bank also formulated the loan management measures for supporting technological enhancements of manufacturing enterprises, so as to provide positive support for the financing needs of these enterprises for technological upgrading and transformation and for the construction of high-quality projects.

The Bank strengthened the strategic guidance on credit policies. It actively provided support for the infrastructure projects under construction such as highways, railways, airports, urban rail transit and municipal public facilities as well as the construction of major projects for tackling areas of weaknesses. It highlighted the support for high-quality customers and projects in the emerging manufacturing fields such as new generation information technology and high-end equipment, to continuously intensify the differentiated policy management of the traditional manufacturing industry. Besides, active support was also given to the financing demand for consumption upgrade in the service industry. Through organic connection between industrial and regional policies, the Bank revised and improved the credit policies for key regions such as the Yangtze River Delta, the Guangdong-HongKong-Macau Greater Bay Area, the Beijing-Tianjin-Hebei region, Central China, and the Chengdu-Chongqing economic circle. Priority was given to supporting key investment and financing projects along the Belt and Road, upgrading core technologies, stabilizing the global industrial chain, and promoting the dual-cycle related business needs at home and abroad.

The Bank strengthened the risk management in the real estate industry. It paid close attention to the risk changes in the real estate markets of different regions, focused on supporting ordinary commercial housing projects aimed to satisfy rigid demands that are in line with regulatory policies, proactively and prudently promote financing for commercial rental housing projects, and provided financial support for the building of government-subsidized housing projects in compliance with laws and regulations. In addition, it continued to implement quota management for commercial real estate investment and financing, for the purpose of reasonably controlling the total amount of investment and financing for such projects.

The Bank enhanced the risk management of inclusive loans. In adherence to the whole-process risk prevention and control of inclusive loans, the Bank followed the development direction of "digital inclusiveness", and created an inclusive loan risk management system featuring "data-driven, intelligent warning, dynamic management, and continuous operation". It optimized customer selection and model access, to strictly control customer access. The duration management model in combination with on-site inspection and off-site monitoring was constantly prompted, with the performance of on-site inspection responsibilities, to continuously enrich off-site monitoring data sources, optimize monitoring models, and improve the accuracy and coverage of off-site monitoring. Moreover, the Bank kept monitoring the use of loans related to epidemic prevention, strictly implemented bail-in policy arrangements such as deferred principal and interest repayment, and reinforced the tracking and monitoring of loans with deferred debt service.

Credit Risk Management of Personal Loans

For the purpose of proactively responding to the risks caused by the pandemic, the Bank made every effort to provide credit support and service guarantee for personal customers during the outbreak of the pandemic, and strengthened the mitigation of credit risk for customers whose repayment capability was severely affected by the pandemic. An intelligent implementation plan for credit risk management and control of personal loans was prepared, to strictly manage customer access, and strengthen differentiated risk warning and refined management of NPAs. Furthermore, the personal loan risk monitoring model was optimized to improve monitoring and warning capabilities, the case prevention management was properly conducted to enhance the tracking and remediation of risk events, and close attention was paid to the tracking and governance of key risk points.

Credit Risk Management of Credit Card Business

The Bank consolidated the credit management system for credit card business by improving related regulations and processes including the joint prevention and control mechanism for review and approval process and the authenticity review rules; and it established a scenario-based "1+N" credit management mechanism, to realize functions such as credit view, real-time credit granting, and real-time digital card issuance. The Bank innovated the limit management mode and built a customer-based financing limit management and control system was built. In addition, the Bank established and improved a multi-dimensional risk monitoring system, and developed a credit default risk management and control system for existing customers, to enhance differentiated risk management and control.

Credit Risk

Credit Risk Management of Treasury Operations

In terms of investment business, the Bank strengthened pre-investment screening and analysis, paid close attention to the redemption risk of bonds due within the year, strengthened the monitoring of exiting bonds in key risk industries, and reinforced duration management. With respect to money market business, the Bank tightened up the pre-review and regular risk assessment of counterparty access, strengthened the systematic management and control of important risk management processes such as authorization, credit extension, counterparty access, collateral, transaction price and concentration, and improved ex post duration management, with appropriate potential risk analysis and investigation. As for derivative business, the Bank actively promoted the negotiation and signing of ISDA, NAFMII and other legal agreements, strictly managed and controlled the credit line of derivative counterparties through the Global Financial Market Transaction platform, and maintained regular monitoring of client margins and credit line.

Credit Risk Exposure

					In RMB millions

	At 31 December 2020	At 31 December 2019

		Parts uncovered		Parts uncovered
	Parts covered by	by internal	Parts covered by	by internal
	internal ratings-	ratings-based	internal ratings-	ratings-based
Item	based approach	approach	based approach	approach
Corporate	10,942,603	1,400,916	9,905,090	1,437,024
Sovereign	-	7,019,844	-	5,998,583
Financial institution	-	3,472,859	-	3,727,940
Retail	6,984,921	507,002	6,252,608	484,400
Equity	-	176,993	-	161,426
Asset securitization	-	97,887	-	97,663
Others	-	5,359,568	-	5,034,184
Total risk exposure	17,927,524	18,035,069	16,157,698	16,941,220

Internal Ratings-based Approach

Governance Structure of Internal Rating System

The Board of Directors assumes the ultimate responsibility for the internal rating system of the Bank, supervises and ensures formulation and implementation by the Senior Management of necessary internal rating policies and procedures, and approves major policies, rules and implementation plans regarding the internal rating system. The Senior Management is responsible for implementation of IRB system across the Bank. The Risk Management Department of the Head Office is responsible for design, development, implementation, monitoring and promotion of the IRB management. The Credit Approval Department of the Head Office is responsible for management of corporate customer rating of the Bank. Relevant departments of the Head Office including the Credit and Investment Management Department, the Personal Banking Department, the Bank Card Department, the Asset & Liability Management Department and the Finance & Accounting Department are responsible for application of the internal rating results. The Internal Audit Bureau is responsible for internal audit of the internal rating system. Risk management departments of the branches are responsible for monitoring, application, analysis and reporting of the internal rating system. Relevant customer management departments of the branches are responsible for investigation, implementation and rating application regarding the internal rating system.

Capital Adequacy Ratio Report 2020

Credit Risk

Non-retail Business

The Bank adopts the foundation IRB approach to measure non-retail credit risk satisfying regulatory requirements with rating models established based on quantitative technologies as well as experts' judgmental experience. The models assess debt-paying ability and willingness of customers based on financial indicators, competitiveness, management quality and operation status of the customers from quantitative and qualitative aspects. Customer's rating is determined by rating score and their probability of default (PD) is mapped via the master scale uniformly set.

The Bank measures risk parameters of the internal rating models in strict accordance with relevant regulatory requirements. Under the non-retail credit risk foundation IRB approach, obligor PD is determined by referring to past 10 years or more defaults of corporate customers of the Bank as well as the long-term default tendency of different asset portfolios. The internal rating parameters, maintained according to the rules regarding management of internal rating parameters of the Bank, are monitored and validated on a regular basis.

MEASUREMENT RESULTS OF NON-RETAIL CREDIT RISK UNDER FOUNDATION IRB APPROACH

In RMB millions, except for percentages

		At 31 December 2020

		Weighted	Weighted	Risk-	Average risk
	Exposure at	average PD	average LGD	weighted	weight
PD level	default	(%)	(%)	assets	(%)
Level 1	1,232,593	0.09	44.77	356,363	28.91
Level 2	1,544,923	0.21	42.09	707,669	45.81
Level 3	2,155,413	0.65	43.06	1,574,946	73.07
Level 4	2,716,833	1.63	42.84	2,601,332	95.75
Level 5	1,771,130	2.57	42.70	1,847,214	104.30
Level 6	611,791	3.72	42.34	683,964	111.80
Level 7	331,289	5.28	41.86	415,447	125.40
Level 8	103,425	7.20	41.24	143,729	138.97
Level 9	108,298	9.60	40.76	166,971	154.18
Level 10	49,953	18.00	41.79	100,137	200.46
Level 11	94,723	56.00	42.72	171,688	181.25
Level 12	222,232	100.00	43.80	36,481	16.42
Total	10,942,603	-	-	8,805,941	80.47

					Credit Risk

		At 31 December 2019
		Weighted	Weighted	Risk-	Average
	Exposure at	average PD	average LGD	weighted	risk weight
PD level	default	(%)	(%)	assets	(%)
Level 1	1,149,672	0.09	44.85	329,997	28.70

Level 2	1,330,325	0.21	41.77	592,970	44.57

Level 3	1,926,387	0.65	43.31	1,430,541	74.26

Level 4	2,531,365	1.63	42.94	2,467,274	97.47

Level 5	1,525,028	2.57	42.44	1,569,509	102.92

Level 6	607,498	3.72	42.19	680,813	112.07

Level 7	265,605	5.28	41.68	333,085	125.41

Level 8	119,075	7.20	41.38	172,230	144.64

Level 9	101,558	9.60	42.01	164,425	161.90

Level 10	49,294	18.00	41.82	96,161	195.08

Level 11	104,928	56.00	42.51	193,303	184.22

Level 12	194,355	100.00	44.00	21,472	11.05

Total	9,905,090	-	-	8,051,780	81.29

Retail Business

The Bank adopts IRB approach to measure retail credit risk pursuant to regulatory requirements, establishes the internal grading models covering entire life cycle of all types of retail products and asset pool classification and risk parameter measurement models covering all risk exposures of retail credit assets by utilizing the historical data accumulated in a long term with the help of modeling methods and expert management experience, and realizes quantitative management of retail credit risk models.

The Bank conducts comprehensive analysis of loan repayment ability and willingness of customers by using modern mathematical statistics technologies to mine, analyze and extract data of customers, assets, debts and transactions, and develops the credit score model system including application score, behavior score and collection score models and realizing the coverage of entire life cycle of retail business.

According to relevant IRB approach requirements, the Bank has put in place asset pool classification procedures and technologies suited for the actual retail business, developed the asset pool classification system applied to measurement of all risk parameters and accordingly realized measurement of risk parameters for retail credit assets like probability of default (PD), loss given default (LGD) and exposure at default, etc.

Capital Adequacy Ratio Report 2020

Credit Risk

MEASUREMENT RESULTS OF RETAIL CREDIT RISK UNDER IRB APPROACH

In RMB millions, except for percentages

			At 31 December 2020
			Weighted	Weighted	Risk-	Average
		Exposure at	average PD	average LGD	weighted	risk weight
Type of risk exposure	default	(%)	(%)	assets	(%)
Residential mortgages	5,637,631	1.22	27.87	1,136,677	20.16
Qualifying revolving	709,742	2.85	42.65	124,405	17.53
retail exposure
Other retail exposures	637,548	4.32	47.53	361,786	56.75
Total	6,984,921	-	-	1,622,868	23.23

			At 31 December 2019
			Weighted	Weighted	Risk-	Average
		Exposure at	average PD	average LGD	weighted	risk weight
Type of risk exposure	default	(%)	(%)	assets	(%)
Residential mortgages	5,090,032	1.20	27.17	1,025,226	20.14

Qualifying revolving	689,431	3.95	42.76	139,772	20.27
retail exposure

Other retail exposures	473,145	5.99	47.59	275,218	58.17

Total	6,252,608	-	-	1,440,216	23.03

Application of Internal Rating Results

The internal rating results of the Bank are widely used throughout the whole credit risk management process including the credit risk strategy and credit policy formulation, customer access, credit approval, loan pricing, post-lending management, capital measurement, risk limit management, allowance management and performance assessment. While complying with the regulatory requirements, the Bank also takes into account the internal rating results as an important base for decision- making over credit risk management and credit business.

Weighted Approach

The Bank adopts weighted approach to measure credit risk exposures uncovered by the IRB approach.

					Credit Risk
RISK EXPOSURE UNCOVERED BY IRB APPROACH BY WEIGHT
					In RMB millions

	At 31 December 2020	At 31 December 2019

		Unmitigated		Unmitigated
Risk weight	Risk exposure	risk exposure	Risk exposure	risk exposure
0%	6,072,406	6,071,002	5,546,742	5,544,641
2%	237,156	55,756	365,057	19,111
20%	4,744,264	4,698,028	4,053,912	3,961,892
25%	2,022,522	1,917,209	2,160,000	1,765,233
50%	165,739	164,245	137,065	132,505
75%	767,592	765,825	662,334	661,318
100%	3,652,796	3,038,413	3,725,953	3,337,843
150%	39,124	25,735	11,147	11,147
250%	119,989	119,867	113,752	113,618
400%	139,686	139,686	110,617	110,617
1250%	73,795	73,795	54,641	54,641
Total	18,035,069	17,069,561	16,941,220	15,712,566

Note: The weights adopted in the weighted approach-based measurement of credit risk by the Bank were in strict compliance with the relevant provisions of the Capital Regulation.

RISK EXPOSURE OF CAPITAL INSTRUMENTS ISSUED BY OTHER COMMERCIAL BANKS HELD BY THE BANK, EQUITY INVESTMENT IN COMMERCIAL ENTITIES AND REAL ESTATE FOR NON-SELF USE

		In RMB millions

	At 31 December	At 31 December
Item	2020	2019
Ordinary shares issued by other commercial banks	29,258	30,011
Long-term subordinated bonds issued by other commercial banks	94,140	48,116
Preference shares issued by other commercial banks	217	2,265
Equity investment in commercial entities	134,417	111,544
Total	258,032	191,936

Credit Risk Mitigation

The Bank generally transfers or lowers credit risk through collateral and guarantees. The credit risk mitigation instruments effectively cover credit risk exposure of borrowers. The Bank reviews its risk mitigation instruments in handling the credit business to ensure their credit risk mitigation capability.

The Bank monitors the market value of collateral and pledges and the solvency of a guarantor regularly or irregularly if special circumstances warrant. Collateral mainly includes real estate, land and the right of construction land use, and the management right of contracted land, and pledges mainly include document of title and marketable securities, etc. Collateral and pledges valuation procedures are divided into basic procedures and direct identification procedures.

Capital Adequacy Ratio Report 2020

Credit Risk

Basic procedures include investigation, review and examination, and approval; direct identification procedures include investigation and approval. For initial value appraisal of collateral, the Bank shall consider the characteristics of different types of collateral and employ proper appraisal methods to determine collateral value in consideration of market price, difficulty degree of liquidation and existence of flaws and other factors affecting the asset disposal price, thereby reasonably identifying the amount of collateral that can be guaranteed. Revaluation cycle of collateral and pledges is determined according to regulatory requirements, changes of market and other risk factors, and revaluation shall be completed before the revaluation cycle expires. The Bank shall reassess the collateral and pledge value irregularly upon discovering conditions which may possibly result in an impairment of the collateral and pledge or obvious adverse changes happening to the customer.

The Bank analyzes concentration risk of mitigation regularly or according to changes in internal and external environment, and takes appropriate countermeasures. Through the Bank's efforts in adjusting credit structure, the Bank continues to improve the structure of collateral and pledges.

COVERAGE OF ELIGIBLE RISK MITIGATION INSTRUMENTS COVERED BY IRB APPROACH

										In RMB millions

			At 31 December 2020				At 31 December 2019
		Eligible	Other				Eligible	Other
		financial	eligible				financial	eligible
Type of risk exposure	pledge	collateral	Guarantee	Total	pledge	collateral	Guarantee	Total
Non-retail business
Corporate loans	295,294	982,488	827,620	2,105,402	250,828	955,872	723,482	1,930,182
Subtotal	295,294	982,488	827,620	2,105,402	250,828	955,872	723,482	1,930,182
Retail business
Residential mortgages	-	5,637,631	-	5,637,631	-	5,090,032	-	5,090,032
Other retail exposures	7,670	515,244	4,413	527,327		7,003	374,507	5,206	386,716
Subtotal	7,670	6,152,875	4,413	6,164,958		7,003	5,464,539	5,206	5,476,748
Total	302,964	7,135,363	832,033	8,270,360		257,831	6,420,411	728,688	7,406,930
COVERAGE OF ELIGIBLE RISK MITIGATION INSTRUMENTS UNCOVERED BY IRB APPROACH
										In RMB millions

			At 31 December 2020				At 31 December 2019
			Mortgage					Mortgage
			& pledge					& pledge
		Netting	and				Netting	and
Type of risk exposure	settlement	guarantee	Others	Total	settlement	guarantee	Others	Total
On-balance sheet	-	384,272	-	384,272	-	399,969	-	399,969
credit risk
Off-balance sheet	-	54,796	-	54,796	-	44,584	-	44,584
credit risk
Counterparty credit risk	11,523	-	514,917	526,440	5,881	-	778,220	784,101
Total	11,523	439,068	514,917	965,508	5,881	444,553	778,220	1,228,654

							Credit Risk
Loan Quality and Allowance for Impairment Losses on Loans
DISTRIBUTION OF LOANS BY FIVE-CATEGORY CLASSIFICATION
						In RMB millions, except for percentages

		At 31 December 2020	At 31 December 2019

			Percentage		Percentage
Item	Amount	(%)		Amount	(%)
Pass	17,918,430	96.21		16,066,266	95.86
Special mention	411,900	2.21		454,866	2.71
NPLs	293,978	1.58		240,187	1.43
	Substandard	114,438	0.61		97,864	0.58
	Doubtful	149,926	0.81		113,965	0.68
	Loss	29,614	0.16		28,358	0.17
Total	18,624,308	100.00		16,761,319	100.00
OVERDUE LOANS
						In RMB millions, except for percentages

		At 31 December 2020	At 31 December 2019

			% of total		% of total
Overdue periods	Amount	loans	Amount	loans
Less than 3 months	98,963	0.54		83,084	0.50
3 months to 1 year	74,820	0.40		89,625	0.53
1 to 3 years	72,467	0.39		66,848	0.40
Over 3 years	21,257	0.11		28,659	0.17
Total	267,507	1.44		268,216	1.60

Note: Loans and advances to customers are deemed overdue when either the principal or interest is overdue. For loans and advances to customers repayable by installments, the total amount of loans is deemed overdue if part of the installments is overdue.

MOVEMENTS OF ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS

											In RMB millions

			Movements of allowance for impairment losses on loans	Movements of allowance for impairment losses on loans
			and advances to customers measured at amortised cost	and advances to customers measured at FVOCI
Item		Stage 1	Stage 2	Stage 3	Total		Stage 1	Stage 2	Stage 3	Total
Balance at 1 January 2020	215,316	78,494	184,688	478,498		227	-	5	232
Transfer:
	to stage 1	24,002	(22,507)	(1,495)	-	-	-	-	-
	to stage 2	(6,913)	9,311	(2,398)	-	-	-	-	-
	to stage 3	(4,838)	(53,754)	58,592	-	-	-	-	-
Charge/(reverse)	(2,984)	78,244	95,941	171,201		(16)	-	645	629
Write-offs and transfer out	-	(7)	(120,317)	(120,324)	-	-	-	-
Recoveries of loans and advances	-	-	4,977	4,977		-	-	-	-
	previously written off
Other movements	(880)	(630)	(2,542)	(4,052)	(0)	-	-	(0)
Balance at 31 December 2020	223,703	89,151	217,446	530,300		211	-	650	861

Capital Adequacy Ratio Report 2020

Credit Risk

For provisioning method of allowance for impairment losses on loans, please refer to the Significant Accounting Policies and Estimates in the Notes to the Financial Statements of the 2020 Annual Report.

Counterparty Credit Risk

Counterparty credit risk is the risk that economic loss is caused when the counterparty fails to perform its contractual obligations. The Bank is exposed to counterparty credit risk mainly as a result of over-the-counter (OTC) derivatives trading and securities financing trading.

The counterparty shall meet relevant requirements on customer access standards before conducting derivatives trading with the Bank. The Bank assesses credit status, risk management level and capital strength of the counterparty, approves and regularly reviews special credit extension for derivatives trading. Before trading, the Bank will first enquire whether the credit limit of the counterparty is adequate.

For OTC derivatives financial trading, the Bank concludes the Credit Support Appendix (CSA) under the ISDA master agreement with certain counterparty in accordance with the requirements of both sides' regulatory authorities. Where the counterparty's credit rating is downgraded, it shall be set based on the agreement provisions as to whether the downgraded party has to provide extra collateral to its counterparty. In case that there is no relevant expression in the agreement, such downgrading will not affect both sides' collateral swap; and if there is relevant expression in the agreement, the quantity of collateral will be adjusted as per the agreement. For institutions that have not signed the CSA agreement, the signing strategy will be adjusted in a timely manner in accordance with changes in compliance requirements of domestic and overseas regulatory authorities.

COUNTERPARTY CREDIT RISK EXPOSURE OF DERIVATIVES TRADING

									In RMB millions

					At 31 December	At 31 December
Item					2020		2019
Risk exposure at default of parts covered by netting settlement				122,362		82,123
Risk exposure at default of parts uncovered by netting settlement				103,253		100,488
Total of counterparty credit risk exposure of derivatives trading
	before mitigation					225,615		182,611
Counterparty credit risk mitigation					-		-
Total of counterparty credit risk exposure of derivatives trading				225,615		182,611
NOMINAL PRINCIPAL OF CREDIT DERIVATIVES
									In RMB millions

			At 31 December 2020	At 31 December 2019

			Credit	Credit	Credit	Credit
			derivatives	derivatives	derivatives	derivatives
Item	bought		sold	bought	sold
Nominal principal of credit derivatives as		1,569	5,251	2,284	1,755
credit portfolios of the Bank
	Credit default swap		1,569	1,949	1,936	1,755
	Total return swap		-	3,302	348	-
Nominal principal of credit derivatives		6,847	6,847	9,748	9,748
	where the Bank acts as intermediary

	Credit default swap		1,870	1,870	4,526	4,526

	Total return swap		4,977	4,977	5,222	5,222

Credit Risk

Asset Securitization

Credit asset securitization refers to structured financing activities where the originator trusts credit assets to the trustee, and the trustee issues beneficiary securities in the form of asset-backed securities to institutional investors, and the cash flow from the credit assets is used to pay income of asset-backed securities. All securitization originated by the Bank is traditional securitization.

Asset Securitization Business

The Bank participates in the asset securitization business mainly by acting as originator of asset securitization business, lending services provider, lead underwriter and institutional investor.

ŠAs originator and lending services provider

The Bank continued to stimulate the development of asset securitization business and effectively supported disposal of non- performing loans, revitalization of stock assets and optimization of credit structure. As at the end of 2020, some underlying assets of the asset securitization projects originated by the Bank were still retained, and the project operation remained steady. As the originator, the Bank held part of asset-backed securities which the Bank issued in line with the regulatory authority's risk self-retention requirement, and took corresponding credit risk and market risk for the part the risk of which was self-retained. At the end of 2020, assets continued to be recognized by the Group amounted to RMB63,808 million.

CREDIT ASSET SECURITIZATION BUSINESS ORIGINATED BY THE GROUP AND NOT SETTLED AT THE END OF THE REPORTING PERIOD

									In RMB millions

						Underlying assets
								Non-
				External	Type of		Exposure at	performing	Overdue at
		Originating		credit rating	underlying	Exposure at	the end of	at the end of	the end of
Asset securitization product	year	Originator	institution	assets	origination	2020	2020	2020
2016	Gongyuan Phase III	2016	The Bank	CCXI, China	Personal NPL	4,080	-	-	-
non-performingasset-backed securities			Ratings

2016	Gongyuan Phase IV	2016	The Bank	CCXI, China	Residential	10,255	2,886	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2017	Gongyuan Phase II	2017	The Bank	CCXI, China	Personal NPL	3,600	28	28	28
non-performingasset-backed securities			Ratings

2017	Gongyuan Phase III	2017	The Bank	CCXI, China	Residential	13,922	5,283	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2017	Gongyuan Phase IV	2017	The Bank	CCXI, China	Residential	12,726	4,859	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2017	Gongyuan Phase V	2017	The Bank	LH Ratings,	Residential	13,052	4,970	-	-
residential mortgage asset-backed securities			China Ratings	mortgage

2017	Gongyuan Phase VII	2017	The Bank	CCXI, China	Personal operating	2,350	376	376	376
non-performingasset-backed securities			Ratings	NPL claim

2018	Gongyuan Phase I	2018	The Bank	LH Ratings,	Residential	10,950	5,108	-	-
residential mortgage asset-backed securities			China Ratings	mortgage

Capital Adequacy Ratio Report 2020

Credit Risk

CREDIT ASSET SECURITIZATION BUSINESS ORIGINATED BY THE GROUP AND NOT SETTLED AT THE END OF THE REPORTING PERIOD (CONTINUED)

									In RMB millions

						Underlying assets
								Non-
				External	Type of		Exposure at	performing	Overdue at
		Originating		credit rating	underlying	Exposure at	the end of	at the end of	the end of
Asset securitization product	year	Originator	institution	assets	origination	2020	2020	2020
2018	Gongyuan Phase II	2018	The Bank	CCXI, China	Residential	10,877	4,927	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2018	Gongyuan Phase III	2018	The Bank	LH Ratings,	Residential	10,943	4,896	-	-
residential mortgage asset-backed securities			China Ratings	mortgage

2018	Gongyuan Phase IV	2018	The Bank	CCXI, China	Residential	11,864	7,202	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2018	Gongyuan Zhicheng Phase II	2018	The Bank	CCXI, China	Non-performing	1,240	362	362	362
non-performingasset-backed securities			Ratings	residential
					mortgage claim

2018	Gongyuan Zhicheng Phase III	2018	The Bank	CCXI, China	Personal	441	145	145	145
non-performingasset-backed securities			Ratings	consumption
					NPL claim

2018	Gongyuan Zhicheng Phase IV	2018	The Bank	CCXI, China	Personal operating	525	267	267	267
non-performingasset-backed securities			Ratings	NPL claim

2018	Gongyuan Phase V	2018	The Bank	LH Ratings,	Residential	11,800	6,957	-	-
residential mortgage asset-backed securities			China Ratings	mortgage

2018	Gongyuan Phase VI	2018	The Bank	CCXI, China	Residential	11,409	6,836	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2018	Gongyuan Phase VII	2018	The Bank	LH Ratings,	Residential	11,302	6,867	-	-
residential mortgage asset-backed securities			China Ratings	mortgage

2018	Gongyuan Phase VIII	2018	The Bank	CCXI, China	Residential	13,422	8,452	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2018	Gongyuan Phase IX	2018	The Bank	LH Ratings,	Residential	13,363	8,349	-	-
residential mortgage asset-backed securities			China Ratings	mortgage

2018	Gongyuan Zhiyuan Phase I	2018	The Bank	LH Ratings,	Corporate loans	5,455	382	-	-
credit asset-backed securities			China Ratings

2018	Gongyuan Phase X	2018	The Bank	CCXI, China	Residential	13,379	8,328	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2018	Gongyuan Phase XI	2018	The Bank	LH Ratings,	Residential	13,341	8,291	-	-
residential mortgage asset-backed securities			China Ratings	mortgage

2018	Gongyuan Anju Phase I	2018	The Bank	CCXI, China	Residential	14,364	8,897	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2018	Gongyuan Anju Phase II	2018	The Bank	LH Ratings,	Residential	14,323	8,990	-	-
residential mortgage asset-back			China Ratings	mortgage

Credit Risk

CREDIT ASSET SECURITIZATION BUSINESS ORIGINATED BY THE GROUP AND NOT SETTLED AT THE END OF THE REPORTING PERIOD (CONTINUED)

									In RMB millions

						Underlying assets
								Non-
				External	Type of		Exposure at	performing	Overdue at
		Originating		credit rating	underlying	Exposure at	the end of	at the end of	the end of
Asset securitization product	year	Originator	institution	assets	origination	2020	2020	2020
2018	Gongyuan Anju Phase III	2018	The Bank	CCXI, China	Residential	14,284	8,927	-	-
residential mortgage asset-back			Ratings	mortgage

2018	Gongyuan Zhicheng Phase VI	2018	The Bank	CCXI, China	Personal	2,250	640	640	640
non-performingasset-backed securities			Ratings	residential NPL

2018	Gongyuan Zhicheng Phase VII	2018	The Bank	CCXI, China	Personal	555	139	139	139
non-performingasset-backed securities			Ratings	consumption
					NPL

2018	Gongyuan Zhicheng Phase VIII	2018	The Bank	CCXI, China	Personal	880	264	264	264
non-performingasset-backed securities			Ratings	consumption
					NPL

2018	Gongyuan Anju Phase IV	2018	The Bank	LH Ratings,	Residential	14,275	8,960	-	-
residential mortgage asset-backed securities			China Ratings	mortgage

2018	Gongyuan Anju Phase V	2018	The Bank	CCXI, China	Residential	14,328	8,989	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2019	Gongyuan Anju Phase I	2019	The Bank	LH Ratings,	Residential	14,232	8,802	-	-
residential mortgage asset-backed securities			China Ratings	mortgage

2019	Gongyuan Anju Phase II	2019	The Bank	CCXI, China	Residential	14,193	8,738	-	-
residential mortgage asset-back			Ratings	mortgage

2019	Gongyuan Zhicheng Phase I	2019	The Bank	CCXI, China	Non-performing	860	-	-	-
non-performingasset-backed securities			Ratings	credit card
					claim

2019	Gongyuan Yiju Phase I	2019	The Bank	LH Ratings,	Residential	14,977	11,072	-	-
residential mortgage asset-backed securities			China Ratings	mortgage

2019	Gongyuan Zhicheng Phase II	2019	The Bank	Golden Credit	Personal	2,470	1,250	1,250	1,250
non-performingasset-backed securities			Rating, China	residential NPL
				Ratings

2019	Gongyuan Yiju Phase II	2019	The Bank	CCXI, China	Residential	14,995	11,571	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2019	Gongyuan Zhicheng Phase III	2019	The Bank	Golden Credit	Personal operating	261	116	116	116
non-performingasset-backed securities			Rating, China	NPL
				Ratings

2019	Gongyuan Zhicheng Phase IV	2019	The Bank	Golden Credit	Personal	489	221	221	221
non-performingasset-backed securities			Rating, China	consumption
				Ratings	NPL

Capital Adequacy Ratio Report 2020

Credit Risk

CREDIT ASSET SECURITIZATION BUSINESS ORIGINATED BY THE GROUP AND NOT SETTLED AT THE END OF THE REPORTING PERIOD (CONTINUED)

										In RMB millions

							Underlying assets
									Non-
					External	Type of		Exposure at	performing	Overdue at
			Originating		credit rating	underlying	Exposure at	the end of	at the end of	the end of
Asset securitization product	year	Originator	institution	assets	origination	2020	2020	2020
2019	Gongyuan Yiju Phase III	2019	The Bank	LH Ratings,	Residential	15,129	11,654	-	-
residential mortgage asset-back			China Ratings	mortgage

2019	Gongyuan Zhiyuan	Phase I	2019	The Bank	CCXI, China	Corporate loans	3,537	962	-	-
credit asset-backed securities			Ratings

2019	Gongyuan Zhicheng	Phase V	2019	The Bank	LH Ratings,	Non-performing	437	-	-	-
non-performingasset-backed securities			China Ratings	credit card
						claim

2019	Gongyuan Yiju Phase IV	2019	The Bank	CCXI, China	Residential	13,913	10,376	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2019	Gongyuan Yiju Phase V	2019	The Bank	LH Ratings,	Residential	13,938	10,549	-	-
residential mortgage asset-backed securities			China Ratings	mortgage

2019	Gongyuan Yiju Phase VI	2019	The Bank	CCXI, China	Residential	13,932	10,484	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2019	Gongyuan Yiju Phase VII	2019	The Bank	CCXI, China	Residential	7,942	5,891	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2019	Gongyuan Yiju Phase VIII	2019	The Bank	LH Ratings,	Residential	7,989	5,998	-	-
residential mortgage asset-backed securities			China Ratings	mortgage

2019	Gongyuan Zhicheng	Phase VI	2019	The Bank	CCXI, China	Personal	937	651	651	651
non-performingasset-backed securities			Ratings	residential NPL

2019	Gongyuan Zhicheng	Phase VII	2019	The Bank	Shanghai	Non-performing	450	-	-	-
non-performingasset-backed securities			Brilliance	credit card
					Rating, China	claim
					Ratings

2020	Gongyuan Yiju Phase I	2020	The Bank	LH Ratings,	Residential	15,633	11,446	-	-
residential mortgage asset-backed securities			China Ratings	mortgage

2020	Gongyuan Zhicheng	Phase I	2020	The Bank	LH Ratings,	Non-performing	349	28	28	28
non-performing asset securitization			China Ratings	credit card
						claim

2020	Gongyuan Zhicheng	Phase II	2020	The Bank	CCXI, China	Personal	120	22	22	22
non-performingasset-backed securities			Ratings	consumption
						NPL

2020	Gongyuan Yiju Phase II	2020	The Bank	CCXI, China	Residential	15,590	11,106	-	-
residential mortgage asset-backed securities			Ratings	mortgage

Credit Risk

CREDIT ASSET SECURITIZATION BUSINESS ORIGINATED BY THE GROUP AND NOT SETTLED AT THE END OF THE REPORTING PERIOD (CONTINUED)

									In RMB millions

						Underlying assets
								Non-
				External	Type of		Exposure at	performing	Overdue at
		Originating		credit rating	underlying	Exposure at	the end of	at the end of	the end of
Asset securitization product	year	Originator	institution	assets	origination	2020	2020	2020
2020	Gongyuan Yiju Phase III	2020	The Bank	LH Ratings,	Residential	15,616	11,119	-	-
residential mortgage asset-back			China Ratings	mortgage

2020	Gongyuan Zhicheng Phase III	2020	The Bank	Golden Credit	Non-performing	366	11	11	11
non-performing asset securitization			Rating, China	credit card
				Ratings	claim

2020	Gongyuan Zhicheng Phase IV	2020	The Bank	CCXI, China	Personal	1,950	1,950	1,950	1,950
non-performingasset-backed securities			Ratings	residential NPL

2020	Gongyuan Leju Phase I	2020	The Bank	CCXI, China	Residential	14,488	13,129	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2020	Gongyuan Leju Phase II	2020	The Bank	LH Ratings,	Residential	14,284	12,923	-	-
residential mortgage asset-backed securities			China Ratings	mortgage

2020	Gongyuan Leju Phase III	2020	The Bank	Golden Credit	Residential	14,291	12,936	-	-
residential mortgage asset-back			Rating, China	mortgage
				Ratings

2020	Gongyuan Leju Phase IV	2020	The Bank	Shanghai	Residential	14,288	12,901	-	-
residential mortgage asset-back			Brilliance	mortgage
				Rating, China
				Ratings

2020	Gongyuan Zhicheng Phase V	2020	The Bank	LH Ratings,	Non-performing	930	930	930	930
non-performingasset-backed securities			China Ratings	credit card
					claim

2020	Gongyuan Leju Phase V	2020	The Bank	CCXI, China	Residential	12,498	12,498	-	-
residential mortgage asset-backed securities			Ratings	mortgage

2020	Gongyuan Leju Phase VI	2020	The Bank	LH Ratings,	Residential	12,496	12,496	-	-
residential mortgage asset-backed securities			China Ratings	mortgage

2020	Gongyuan Leju Phase VII	2020	The Bank	Golden Credit	Residential	7,973	7,973	-	-
residential mortgage asset-backed securities			Rating, China	mortgage
				Ratings

2020	Gongyuan Zhicheng Phase VI	2020	The Bank	Golden Credit	Personal	1,375	1,375	1,375	1,375
non-performingasset-backed securities			Rating, China	residential NPL
				Ratings

2020	Gongyuan Zhicheng Phase VII	2020	The Bank	CCXI, China	Non-performing	127	127	127	127
non-performingasset-backed securities			Ratings	auto installment
					credit card
					claim

2020	Gongyuan Zhicheng Phase VIII	2020	The Bank	Golden Credit	Personal	225	225	225	225
non-performingasset-backed securities			Rating, China	consumption
				Ratings	NPL

Total						558,835	363,107	9,127	9,127

Note: As at the end of 2020, the Bank did not originate any credit asset securitization products with underlying assets with revolving and early amortization features.

Capital Adequacy Ratio Report 2020

Credit Risk

ŠAs lead underwriter

The Bank performs obligations that are set forth in relevant requirements and agreements, works diligently, and carries out the sales and distribution of asset-backed securities in strict compliance with laws and regulations, as well as codes of conducts and professional ethics.

ŠAs institutional investor

The Bank invests in the asset-backed securities which the Bank issues and retains, and the asset-backed securities which the other institutions issue, most of which are senior AAA-rated. The Bank undertakes credit risk and market risk of the asset securitization products invested.

For accounting policies regarding asset securitization, please refer to the Significant Accounting Policies and Estimates in the Notes to the Financial Statements of the 2020 Annual Report.

Asset Securitization Risk Exposure and Capital Requirement

The Bank measures asset securitization risk exposure and capital requirement according to the Capital Regulation. At the end of 2020, risk-weighted assets for asset securitization stood at RMB229,632 million and capital requirement RMB18,371 million.

ASSET SECURITIZATION RISK EXPOSURE

		In RMB millions

	At 31 December	At 31 December
Type of risk exposure	2020	2019
As originator
Asset-backed securities	65,056	53,076
As investor
Asset-backed securities	32,513	44,587
Total	97,569	97,663

Market Risk

Market risk is defined as the risk of loss to the Bank's on- and off-balance sheet activities caused by adverse movements in market rates (including interest rates, exchange rates, stock prices and commodity prices). The Bank is primarily exposed to interest rate risk and currency risk (including gold).

Market Risk Management

Market risk management is the process of identifying, measuring, monitoring, controlling and reporting market risk for the purposes of setting up and enhancing the market risk management system, specifying responsibilities and process, determining and standardizing the measurement approaches, limit management indicators and market risk reports, controlling and preventing market risk and improving the level of market risk management. The objective of market risk management is to control market risk exposures within a tolerable level and maximize risk-adjusted return according to the Bank's risk appetite.

The Bank strictly complies with regulatory requirements on market risk management, has implemented an independent, centralized and coordinated market risk management model, and formed a management organizational structure featuring the segregation of the front, the middle and the back offices in the financial market business. The Board of Directors assumes the ultimate responsibility for monitoring market risk management. The Senior Management is responsible for executing the strategies, overall policy and system concerning market risk management approved by the Board of Directors. The Market Risk Management Committee of the Senior Management is the reviewing and decision-making organ of the Bank in respect of market risk management, is responsible for reviewing material affairs of market risk management, and performs its duty in accordance with the Working Regulations for the Market Risk Management Committee. The risk management departments at different levels undertake the responsibility of coordinating market risk management at respective levels, and the business departments implement market risk management policies and standards for their respective business areas in accordance with their functions.

In 2020, the Bank continued to improve the Group's market risk management, and deepened the establishment of market risk management system at the Group's level, to enrich and ameliorate the market risk management policy system on an ongoing basis. It innovated the financial market business and product risk management system, and established a product life-cycle risk assessment and review mechanism. To cement the market risk management of overseas institutions, a major market risk emergency management plan for overseas institutions was formulated. The Group's market risk appetite and limit transmission mechanism was improved, to strictly control the Group's market risk limits. A forward-looking analysis of interest rate, exchange rate and commodity risks was conducted in a timely manner, with the establishment of a quick risk reporting mechanism during the COVID-19 pandemic. Empowered by technologies, the market risk management system was more intelligent, thus enhancing the optimization, management and application of functions such as stress testing and continuously promoting the extended application of global market risk management system to overseas institutions.

Market Risk Measurement

CAPITAL REQUIREMENT FOR MARKET RISK

			In RMB millions

		At 31 December	At 31 December
Risk type	2020	2019
Parts covered by internal model approach	7,539	8,193
Parts uncovered by internal model approach	6,444	6,104
	Interest rate risk	3,405	3,306
	Commodity risk	3,015	2,713
	Stock risk	-	8
	Option risk	24	77
Total	13,983	14,297

Note: According to the implementation scope of the advanced capital management approaches approved by the regulatory authorities, parts covered by the market risk internal model approach of the Bank include currency risk of the Group, general interest rate risk of the parent company and ICBC (Canada) and commodity risk of the parent company. Parts uncovered by the internal model approach are measured by the standardized approach.

Capital Adequacy Ratio Report 2020

Market Risk

The Bank applied the Historical Simulation Method (adopting a confidence interval of 99%, holding period of ten days and historical data of 250 days) to measure the VaR, which is then used for capital measurement under the internal model approach.

VALUE AT RISK (VAR)

										In RMB millions

				2020					2019
			Period					Period
Item	end	Average	Maximum	Minimum	end	Average	Maximum	Minimum
VaR	696	1,487	2,107	597	1,824	2,249	3,522	987
	Interest rate risk	451	247	711	92	133	174	263	93
	Currency risk	846	1,483	1,996	767	1,845	2,297	3,564	1,044
	Commodity risk	142	169	536	40	96	69	133	15
Stressed VaR	696	1,544	2,107	696	1,824	3,356	4,600	987
	Interest rate risk	451	278	711	153	154	209	326	116
	Currency risk	846	1,529	2,082	767	1,845	3,299	4,466	1,044
	Commodity risk	142	170	536	38	95	68	122	32

The Bank carries out daily back-testing to verify the accuracy of VaR models. During the past 250 trading days before the end of the reporting period, the number of back-testing exceptions of the Group lied in the green zone demarcated by CBIRC. The market risk measurement models of the Bank captured the financial market fluctuations timely and produced objective pictures of market risk faced by the Bank.

In 2020, the Bank continued to improve the market risk stress testing plan, and conducted the stress tests of market risk at different levels and of different trading portfolios on a regular basis or from time to time by using the Global Market Risk Management (GMRM) system, consistent with the regulatory requirements and the Group's internal management needs. The Bank kept widening the application of stress testing management of market risk and continued to ameliorate the Group's market risk stress testing level.

Interest Rate Risk in the Banking Book

Interest rate risk in the banking book is defined as the risk of loss in the economic value and overall profit of the banking book arising from adverse movements in interest rate and maturity structure, etc.

Management of Interest Rate Risk in the Banking Book

In 2020, the Bank actively responded to the challenges brought about by the deepened interest rate liberalization and the impact of the COVID-19 pandemic. It continued to optimize the interest rate risk portfolio control mechanism, improved the "group-wide,full-process and full-product" interest rate risk limit management system, developed a systematic and intelligent risk warning, prevention and control mechanism, and refined the access assessment, accountability and emergency management process, to enhance risk management capabilities in a complex interest rate environment. Besides, a proactive and forward-looking interest rate risk management strategy was implemented, cross-cycle policies were appropriately designed, and a combination of asset-liability quantitative instruments, price instruments and derivative instruments was utilized, to prop up the steady growth of the Group's overall income and long-term value.

Management System and Governance Structure for Interest Rate Risk in the Banking Book

The Bank's management system for interest rate risk in the banking book conforms to the system importance, risk status and business complexity, and fits the Bank's overall development strategy and the enterprise risk management system. The system mainly consists of the following elements: an effective risk governance structure; sound risk management strategies, policies and procedures; effective risk identification, measurement, monitoring, control and mitigation that cover all areas; a complete internal control and review mechanism; a fully-built risk management system; and adequate information disclosure and reporting.

The Bank strictly complied with regulatory requirements for interest rate risk in the banking book, effectively managed interest rate risk in the banking book at the Bank and consolidated level, and developed a sound governance structure for interest rate risk management in the banking book that is fully built and well-structured, with clearly defined rights and responsibilities. The Board of Directors and the Senior Management are vested with the ultimate and executive responsibilities, respectively, for managing interest rate risk in the banking book. The Asset & Liability Management Department of the Head Office takes the leading role in managing interest rate risk in the banking book, and other departments and institutions play their roles in implementing policies and standards concerning interest rate risk in the banking book. The Internal Audit Bureau and the Internal Control & Compliance Department of the Head Office are responsible for reviewing and evaluating duties in respective of interest rate risk in the banking book.

Objective, Strategy and Important Policy of Management of Interest Rate Risk in the Banking Book

The objective of management of interest rate risk in the banking book: The Bank aims at maximizing the risk-adjusted net interest income within the tolerable level of interest rate risk under its risk management and risk appetite.

The Bank formulated strategies and clarified objectives and modes for managing interest rate risk in the banking book based on risk appetite, risk status, macroeconomic and market changes. Based on the pre-judging of the interest rate trend and measurement results of the changes in overall profit and economic value, the Bank formulated and put into practice relevant management policies, and adopted a coordinated approach to using interest rate risk control tools to mitigate and manage risks, so as to ensure the Bank's actual interest rate risks conform to its bearing capability and willingness.

Capital Adequacy Ratio Report 2020

Interest Rate Risk in the Banking Book

On the basis of management strategies and objectives, the Bank developed policies and made clear the modes and instruments for managing interest rate risk in the banking book. By developing and modifying such methods as on-balance sheet adjustment and off-balance sheet hedging to manage interest rate risk, adeptly using quantity, pricing and derivative instruments regarding assets and liabilities, and applying limit management system, business plan, performance assessment and capital evaluation in all areas for interest rate risk management and assessment, the Bank achieved effective control of interest rate risk at the business lines, the branches, the affiliates and the products and portfolios easily affected by interest rate risk.

Stress Testing

In line with the principles of comprehensiveness, prudence and foresight, the Bank's stress testing on interest rate risk in the banking book adopted the interest rate risk exposure measurement approach and standardized duration approach to measure the effect of interest rate changes under different stress scenarios on the overall profit and economic value. Based on the domestic and overseas regulatory requirements, the bank-wide asset and liability business structure, operation and management as well as risk appetite, the Bank set stress testing scenarios for interest rate risk in the banking book by taking into account the current interest rate level, historical changes and trends, total assets and liabilities and their term characteristics, business development strategies, customer behaviors and other factors, and conducted stress testing quarterly.

Banking Book Interest Rate Sensitivity Analysis

The Bank measures interest rate risk in the banking book on a monthly basis and reports the same on a quarterly basis in accordance with relevant requirements of CBIRC. While measuring the impact of interest rate change on net interest income and equity value, the Bank assigns the deposits without a maturity date to a reasonable time bucket in consideration of the deposit and loan characteristics and historic data, and assesses the impact of prepayment on interest rate risk measurement by taking the possibility of prepaying residential mortgages into full consideration.

Supposing that there is parallel shift of overall market interest rates, and taking no account of possible risk management actions taken by the management to mitigate the interest rate risk, the analysis on interest rate sensitivity of the Bank categorized by major currencies at the end of 2020 is shown in the following table:

						In RMB millions

		+100 basis points	-100 basis points
		Effect on			Effect on
		net interest	Effect on	net interest	Effect on
Currency	income	equity	income	equity
RMB	(27,286)	(31,709)	27,286	34,753
USD	(169)	(7,340)	169	7,345
HKD	(1,734)	(68)	1,734	68
Others	(30)	(1,766)	30	1,769
Total	(29,219)	(40,883)	29,219	43,935

Operational Risk

Operational risk is defined as the risk of loss resulting from insufficient or problematic internal processes, employees and IT systems or from external events, including legal risk, but excluding strategic and reputational risk. There are seven major types of operational risks faced by the Bank, including internal fraud, external fraud, employment system and workplace safety, customers, products and business activities, damage to physical assets, IT system, execution and delivery and process management. Among these, external fraud, execution, delivery and process management constitute major sources of operational risk losses of the Bank.

Operational Risk Management

The Bank strictly complies with regulatory requirements on operational risk management. The Board of Directors, the Board of Supervisors, the Senior Management and its Operational Risk Management Committee are respectively responsible for decision-making, supervision and execution with respect to operational risk management, and relevant departments act as the "three lines of defense" for operational risk management pursuant to their management functions, thus forming an operational risk management system with close connection and mutual checks and balances. Institutions and departments function as the first line of defense, which assume the direct responsibility for respective operational risk management. Classified management departments such as Internal Control & Compliance, Legal Affairs, Security, Financial Technology, Finance & Accounting, Operation Management and Human Resources as well as cross-risk management departments including Credit and Investment Management and Risk Management jointly perform the functions as the second line of defense, which are respectively responsible for the lead management of operational risk, the classified management of certain type of operational risk and the management of operational risk across credit and market risks. The Internal Audit Department performs the functions as the third line of defense and assumes the responsibility for supervision, which is responsible for supervising the effectiveness of operational risk management.

Operational risk management objectives of the Bank are: to enhance the confidence of shareholders and the public by establishing a sound operational risk governance structure and improving operational risk management and control; to enhance customer satisfaction and employees' sense of belonging as well as overall services by identifying high-risk areas and resolving potential operational risks; to enhance operational efficiency of the Bank by improving process control and operational risk management resources allocation while weighing benefits against costs; to reduce operational risk losses of the Bank and improve the control ability and level by taking effective risk control and mitigation measures; to minimize the legal risk by conducting review and supervision and satisfying the external regulatory requirements.

The Bank adopts a differential operational risk management strategy: avoiding operational risks characterized with high severity and high frequency, transferring those characterized with high severity and low frequency, mitigating those characterized with low severity and high frequency, and taking those characterized with low severity and low frequency.

The Bank's operational risk management procedures include operational risk identification, assessment, monitoring, control/ mitigation, measurement, reporting and liability determination.

Risk identification: The Bank identifies operational risk of new products and new businesses, operational risk event, operational risk loss event, etc.
Risk assessment: The Bank formulates and implements management measures for operational risk and control self- assessment and scenario analysis, and makes comprehensive, timely, objective and forward-looking estimation of inherent risk, control effectiveness and residual risk of all business lines and all branches on a regular basis.
Risk monitoring: The Bank formulates and implements management measures for operational risk monitoring, establishes an overall, professional and regional operational risk indicators monitoring system, and monitors, checks, analyzes and warns key risk exposures of respective business line and institution on a regular basis.

Capital Adequacy Ratio Report 2020

Operational Risk

Risk control/mitigation: The Bank formulates and implements operational risk control basic standards and measures, establishes and implements operational risk mitigation related management measures, builds operational risk control system of the Bank, and promptly prevents and mitigates potential operational risk. The Bank's operational risk mitigation measures include but are not limited to business outsourcing, insurance purchase, business continuity plan and contingency plan, and capital allocation.
Risk measurement: The Bank formulates and implements management measures for operational risk capital measurement; relevant departments research and improve calculation methods and models for economic capital and regulatory capital, make capital allocation and adjustment, and monitor operational risk capital management according to their responsibilities.
Risk reporting: The Bank formulates and implements operational risk management measures for risk reporting, truly and fully reflects the operational risk profile of all business lines and institutions, reveals potential critical risks and proposes effective measures and suggestions for improvement.
Liability determination: The Bank formulates and implements management measures for operational risk liability assessment and determination, determines duty performance by relevant personnel based on objective facts by assessing the subjective and objective reasons of operational risk loss event and material operational risk event, and determines and deals with direct, management, leadership and supervision liabilities.

In 2020, the Bank continued to reinforce operational risk management in line with regulatory focuses and operational risk trends. It optimized the risk limit decomposition and implementation mechanism, effectively transmitted the Group's operational risk management appetite, and strengthened risk warning and forward-looking control of large-value operational risk events. The operational risk and control self-assessment under "regulatory red line" was carried out, with the focus on key risk points in major areas of regulatory penalties, to further address gaps and energetically improve a long-term risk control mechanism. Moreover, the operational risk application and management system was optimized, to continuously enhance effective risk data aggregation and risk reporting capabilities. During the reporting period, the operational risk management system of the Bank operated smoothly, and the operational risk was controllable on the whole.

Legal Risk

Legal risk is the risk of incurring legal sanctions, regulatory penalties, financial losses, reputational losses or other negative consequences that arises out of or in connection with the failure of the Bank to comply with relevant laws, regulations, administrative rules, regulatory provisions or requirements of other relevant rules during the Bank's operation; the unfavorable legal defects that exist in products, services or information provided to clients, transactions engaged in, and contracts, agreements or other documents executed by the Bank; legal disputes (litigation or arbitration proceedings) between the Bank and its clients, counterparties and stakeholders; important changes in relevant laws and regulations, administrative rules, regulatory provisions and other relevant rules; and other relevant legal events that occur internally and externally.

Based on the objective to ensure legal and compliant operation, the Bank always attaches great importance to establishing a sound legal risk management system, forming a full-process legal risk prevention and control mechanism to support and secure business innovation and market competition, and to prevent and eliminate various potential or practical legal risks. The Board of Directors is responsible for reviewing and determining the strategy and policy relating to legal risk management, and assumes the ultimate responsibility of legal risk management. The Senior Management is responsible for executing the strategy and policy relating to legal risk management, examining and approving relevant important affairs. The Legal Affairs Department of the Head Office is in charge of legal risk management across the Group, with relevant business departments providing related support and assistance on legal risk prevention and control. The affiliates, domestic and overseas branches undertake the responsibility of legal risk management of their respective institutions.

Operational Risk

In 2020, the Bank continued to strengthen legal risk management, by improving the risk prevention and control capacity in legal risk management, ensuring the legal and compliant operation, healthy business development and overall business stability of the Group. In accordance with new laws and regulations such as the Civil Code, its business rules and relevant agreements were continuously improved, and legal risk prevention and control in key areas and links was further pushed forward in line with new requirements of financial regulators. The Bank also improved both the vertical interconnection and horizontal coordination mechanism between the Head Office and branches. By systematically embedding legal risk prevention and control into business negotiations, product design, contract signing and other links, the Bank made risk prevention and control more prospective, proactive and targeted. It improved the cross-border coordination and management for legal work and strengthened the legal risk management of overseas institutions, properly responding to cross-border legal issues emerging in the development of international operations. Moreover, the Bank ameliorated the function design and management mechanic for the electronic signing system, to strengthen its strict control of seal use in business contracts during the whole process, and effectively prevent and control operational risk, legal risk and reputational risk caused by misuse of contract seal. It reinforced authorization management, related party management, trademark management and intellectual property protection, and made efforts to effectively institutionalize risk management and control, and refine the structure of the system. A variety of legal means were utilized comprehensively to improve the effectiveness of collection, practically cement the risk prevention and control of sued cases, avoid and reduce risk losses. In addition to the active assist in online judicial inquiry and enforcement, the Bank played a positive role in improving the efficiency of law enforcement and case handling by competent authorities and building a social credibility system.

Anti-Money Laundering

In strict compliance with anti-money laundering ("AML") laws and regulations of China and host countries (regions) of overseas institutions, the Bank earnestly implemented the "risk-based" regulatory requirements in respect of AML, and sincerely fulfilled the legal obligations and social responsibilities concerning AML, thus further enhancing the quality and efficiency of AML work.

The Bank pushed forward the all-around building of the Group's AML management capability by starting the "AML Management Capability Improvement Project". AML training and education activities covering "learning, training, speaking and testing" were organized and conducted, to popularize AML knowledge and improve AML skills. The governance of customer identification and the management and control of high-risk areas were effectively boosted, for the purpose of comprehensively reconstructing a money laundering risk assessment system integrating "customers, products and institutions". Besides, the prevention and control of sensitive information risks was intensified, and the research, judgment and reporting of suspicious transactions was reinforced, to facilitate the intelligent construction of AML system in an orderly manner, and build an intelligent, open, shared and integrated AML ecosystem.

Operational Risk Measurement

The Bank adopts the standardized approach to measure capital requirement for operational risk. As at the end of 2020, the capital requirement for operational risk was RMB113,122 million.

Capital Adequacy Ratio Report 2020

Liquidity Risk

Liquidity risk is the risk that the Bank is unable to raise funds on a timely basis or at a reasonable cost to settle liabilities as they fall due, or perform other payment obligations and satisfy other funding demands arising from the normal course of business. Liquidity risk may arise from the following events or factors: withdrawal of customers' deposits, drawing of loans by customers, overdue payment of debtors, mismatch between assets and liabilities, difficulties in assets realization, operating losses, derivatives trading risk and risk associated with its affiliates.

Liquidity Risk Management

In 2020, the Bank continued to uphold a steady and prudent liquidity risk management strategy, kept strengthening liquidity risk management, and took different measures to ensure that the Group's liquidity could be stable and safe. It tightened up the monitoring on funds, and maintained reasonable and affluent liquidity reserves, so as to manage liquidity risk properly during peak payments, important holidays and key points in time. Besides, the Group's liquidity risk management system was optimized constantly, the application of fund operation and monitoring system was strengthened, the automation level of liquidity risk measurement and control system was enhanced, and the multi-layer and multi-dimensional liquidity monitoring and warning system was upgraded, to further improve the Group's liquidity risk prevention capabilities.

Liquidity Risk Management System and Governance Structure

The Bank's liquidity risk management system conforms to the overall development strategy and the overall risk management system of the Bank, and is commensurate with the business scale, business nature, complexity and other aspects of the Bank. The system includes the following fundamental elements: effective governance structure for liquidity risk management; sound strategy, policy and procedures for liquidity risk management; effective identification, measurement, monitoring and control for liquidity risk and a complete management information system.

In respect of liquidity risk management, the Bank's governance structure embodies the decision-making system comprising the Board of Directors and its special committees as well as the Asset and Liability Management Committee and the Risk Management Committee of the Head Office; the supervision system comprising the Board of Supervisors, the Internal Audit Bureau and the Internal Control and Compliance Department of the Head Office; and the execution system comprising the Asset and Liability Management Department, leading management departments of on- and off-balance sheet businesses, the information technology departments, operation management departments of the Head Office and relevant departments of branches. Each of these systems performs the corresponding functions of decision making, supervision and execution according to division of responsibilities.

Objective, Strategy and Important Policy of Liquidity Risk Management

Objective of liquidity risk management: By establishing and improving the liquidity risk management system, the Bank aims at realizing complete identification, accurate measurement, continuous monitoring and effective control of the liquidity risk at the Group level, the Bank, the affiliates, the branches and the business lines, and ensuring the liquidity demand is satisfied at a reasonable cost in time under the normal business scenario and the stress scenario.

The Bank's liquidity risk management strategy and policy are formulated in accordance with the liquidity risk appetite, and they cover all businesses on- and off-balance sheet, all domestic and overseas business departments, branches and affiliates that are likely to have a material impact on the liquidity risk, and contain the liquidity risk management under normal and stressed scenarios. The liquidity risk management strategy specifies the overall objective and mode of liquidity risk management and lists major policies and procedures for liquidity risk management. The policies for liquidity risk management are formulated in accordance with external and macro operating environments and business development of the Bank, with a view to striking an effective balance among security, liquidity and profitability.

Liquidity Risk

Stress Testing

Following the prudence principle, the Bank employs the scenario analysis and the sensitivity analysis to perform stress testing on liquidity risk. The Bank has taken full consideration of various macroscopic and microscopic factors that may influence the Bank's liquidity status to set stress scenarios against those products, businesses and institutions with concentrated liquidity risk in line with the characteristics and complexity of the Bank's businesses. The Bank performs stress testing on a quarterly basis. Where necessary, the Bank may carry out temporary and special stress testing at a particular time in light of changes in the external operating environment and regulatory requirements.

Liquidity Risk Analysis

The Bank assesses liquidity risk status by comprehensive use of a variety of methods and tools such as liquidity indicator analysis and liquidity exposure analysis.

In 2020, RMB liquidity ratio and foreign currency liquidity ratio of the Bank were 43.2% and 91.4% respectively, both meeting the regulatory requirements. Loan-to-deposit ratio was 72.8%.

Net stable funding ratio aims to ensure commercial banks have sufficient stable sources of funding to meet the needs for stable funding of assets and off-balance sheet risk exposures. The net stable funding ratio is the ratio of the available stable funding to the required stable funding. As at the end of the fourth quarter of 2020, the net stable funding ratio was 128.33%, 1.32 percentage points higher than that at the end of the previous quarter, mainly because the Bank constantly strengthened the Group's liquidity coordination and management to ensure the sufficient sources of stable funds.

The daily average liquidity coverage ratio for the fourth quarter of 2020 was 123.28%, 1.88 percentage points lower than the previous quarter, mainly because the growth rate of net cash outflows exceeded the eligible high-quality liquid assets. High-quality liquid assets cover cash, available central bank reserve under stress and primary and secondary bond assets that can be included in the liquidity coverage ratio under the regulatory requirements.

As at the end of 2020, the negative liquidity exposure for 1 month to 3 months decreased from the end of last year, mainly due to the decrease of matured due to customers within corresponding term and increase of bond investments. The positive liquidity exposure for the 1 to 5 years category decreased, mainly due to the increase of matured due to customers and the decrease of loans and advances to customers within corresponding term. The positive liquidity exposure for the category of over 5 years expanded, which was mainly due to the increase in matured loans and advances to customers and bond investments within corresponding term. Deposits maintained steady growth with a high deposition rate, and at the same time the Bank made major investment in highly liquid bond assets, and possessed sufficient liquidity reserves. Therefore, the overall liquidity of the Bank maintained at a safe level.

LIQUIDITY EXPOSURE ANALYSIS

								In RMB millions

	Overdue/
	repayable	Less than	1 to	3 months	1 to 5	Over
	on demand	1 month	3 months	to 1 year	years	5 years	Undated	Total
At 31 December 2020	(14,309,956)	335,580	(209,780)	(563,541)	981,145	13,324,640	3,351,427	2,909,515
At 31 December 2019	(13,148,663)	372,311	(701,406)	(715,546)	3,498,846	10,069,296	3,317,165	2,692,003

Capital Adequacy Ratio Report 2020

Other Risks

Equity Risk in the Banking Book

The Bank's equity investments in the banking book mainly include long-term equity investments, the portion of equity investments measured at fair value through profit or loss and equity investments measured at fair value through other comprehensive income which belong to the banking book. The Bank strictly follows the Capital Regulation to measure significant and non-significant equity investment.

EQUITY RISK IN THE BANKING BOOK

							In RMB millions

		At 31 December 2020				At 31 December 2019
	Publicly-	Non-publicly-			Publicly-	Non-publicly-
	traded equity	traded equity	Unrealised	traded equity	traded equity	Unrealised
	investment risk	investment risk	potential gains	investment risk	investment risk	potential gains
Equity type	exposure(1)	exposure(1)	(losses)(2)	exposure(1)	exposure(1)	(losses)(2)
Financial institution	28,675	15,423	9,025		33,859	16,023	6,618
Corporate	12,686	126,595	(2,709)	3,537	108,007	(1,486)
Total	41,361	142,018	6,316		37,396	124,030	5,132

Notes: (1) Publicly-traded equity investment refers to equity investment made in listed companies, and non-publicly-traded equity investment refers to equity investment made in non-listed companies.

Unrealised potential gains (losses) refer to unrealised gains or losses recognized on the balance sheet but not recognized on the income statement.

For accounting policies regarding equity investment, please refer to the Significant Accounting Policies and Estimates in the Notes to the Financial Statements of the 2020 Annual Report.

Reputational Risk

Reputational risk is defined as the risk of negative comments on the Bank from stakeholders, the public or the media as a result of the behaviors of the Bank or practitioners or external events, thereby damaging brand value, detrimental to normal operation, and even affecting market and social stability. Reputational risk may arise in any part of the Bank's operation and management, and usually co-exists and correlates with credit risk, market risk, operational risk and liquidity risk. Good reputation is central to the operation and management of a commercial bank. The Bank highly values its reputation and has incorporated reputational risk management in the corporate governance and enterprise risk management system to prevent reputational risk.

The Board of Directors is responsible for reviewing and finalizing bank-wide policies concerning reputational risk management that are in line with the strategic objective of the Bank, establishing a bank-wide system of reputational risk management, monitoring the overall status and effectiveness of reputational risk management across the Bank and assuming the ultimate responsibility for reputational risk management. The Senior Management is responsible for leading reputational risk management of the Bank, implementing the strategies and policies established by the Board of Directors, reviewing and finalizing the rules, measures and operating procedures for reputational risk management, preparing plans for responding to and coping with extraordinarily major reputational risk events and ensuring the proper and effective operation of the reputational risk management system. The Bank has established a special reputational risk management team to take charge of the daily management of reputational risk.

Other Risks

In 2020, the Bank kept improving the structure of reputational risk management system, to optimize relevant working mechanism and enhance reputational risk management. For the improvement of institutional construction, a sound responsibility review and identification mechanism for reputational risk events was established, to consolidate the main management responsibilities, strengthen the governance of reputational risk sources, and mitigate hidden reputational risk in an active and effective manner. In addition, the Bank promptly responded to social focuses and public concerns, and organized and promoted influential brand communication activities, to enhance the Bank's brand image. During the reporting period, the reputational risk of the Bank was stable and within a controllable range.

Country Risk

Country risk is the risk incurred to a bank arising from the inability or refusal by the borrower or debtor to repay bank debt, losses suffered by the Bank or its commercial presence in such country or region and other losses due to economic, political and social changes and events in a country or a region. Country risk may be triggered by deterioration of economic conditions, political and social turmoil, asset nationalization or expropriation, government's refusal to pay external debt, foreign exchange control or currency depreciation in a country or a region.

The Bank strictly observes regulatory requirements on country risk management. The Board of Directors assumes the ultimate responsibility for the effectiveness of country risk management. The Senior Management is responsible for executing the country risk management policies approved by the Board of Directors. The Risk Management Committee of the Head Office is responsible for reviewing matters regarding country risk management. The Bank manages and controls country risk with a series of tools, including country risk assessment and rating, country risk limit, country risk exposure calculation and monitoring and stress testing. The Bank reviews the country risk rating and limits at least once every year.

In 2020, facing the increasingly complicated international political and economic environment under the COVID-19 pandemic, the Bank strictly abode by regulatory requirements and, with consideration of its business development needs, continued to strengthen country risk management. The Bank closely observed changes in country risk exposures, constantly tracked, monitored and reported country risk, and timely updated and adjusted the country risk rating and limits. It continued to strengthen early warning mechanism for country risk, proactively conducted stress testing on country risk and reasonably and effectively controlled country risk while steadily promoting internationalization.

Capital Adequacy Ratio Report 2020

Remuneration

Remuneration Governance Framework

In line with corporate governance requirements, the Bank is committed to establishing and improving remuneration governance framework, specifying the scope of roles and responsibilities of relevant entities, improving decision-making mechanism of remuneration policies and building remuneration governance system with full participation of all stakeholders.

The Board of Directors assumes the ultimate responsibility of remuneration management. The Board of Directors proactively supervises the design and operation of the remuneration system, periodically reviews its compliance, and ensures the remuneration system achieves the intended goals. The Bank set up the Compensation Committee of the Board of Directors in accordance with the Articles of Association to assist the Board of Directors in remuneration management. The Senior Management is responsible for organizing and implementing remuneration management related resolutions of the Board of Directors as well as organizing and formulating incentive assessment and remuneration distribution measures within the scope of authorization. The Human Resources Department is responsible for implementing specific remuneration management issues. Departments including the Risk Management Department, the Internal Audit Bureau, the Internal Control and Compliance Department and the Finance and Accounting Department participate in and supervise the execution of remuneration management mechanism and provide feedback for improvement.

Compensation Committee of the Board of Directors

The Compensation Committee is mainly responsible for formulating assessment measures on the performance of duties and compensation plans for Directors, organizing the assessment on the performance of duties of Directors, putting forth proposal on remuneration distribution for Directors, formulating and reviewing the assessment measures and compensation plans for Senior Management members of the Bank and evaluating the performance and behaviors of Senior Management members. As at the disclosure date of the results, the Compensation Committee consisted of four directors, including Independent Non-executive Directors Mr. Nout Wellink, Mr. Anthony Francis Neoh and Mr. Shen Si; Non-executive Director Mr. Lu Yongzhen. Independent Non-executive Director Mr. Nout Wellink was Chairman of the Committee. During the reporting period, the Compensation Committee held four meetings.

Remuneration Management Policies

The Bank adopts the remuneration policy that is in line with corporate governance requirements and sustainable development targets, adapted to risk management systems and talent development strategies, and matched to employees' value contribution so as to promote bank-wide steady business operation and sustainable development. The remuneration policy applies to all institutions and employees of the Bank.

Performance-based Remuneration Mechanism

The remuneration package of the Bank's employees mainly consists of basic remuneration and performance-based remuneration. The remuneration allocation takes "job value, capabilities and performance" as the basic principles. The basic remuneration level depends on the employees' value contribution and capabilities of fulfilling duties while the level of the performance-based remuneration depends on performance assessment of the Bank as a whole, the institution or department of the employee and the employee. Currently, in accordance with relevant laws and regulations promulgated by the state and regulatory authorities, the Bank has not yet implemented share options or any other form of long- or medium-term share incentives; all performance-based remuneration of the employees is paid in cash.

Remuneration

Focused on value creation, risk control and sustainable development, the Bank has established an integrated performance assessment system comprised of three categories of indicators: performance management, risk and internal control, operational transformation and business development, which guides the bank-wide attention to not only the indicators of current period, but also the indicators relating to long-term development, such as customers, markets and structural adjustments. The Bank also reasonably controls the balance of profits, risk and quality so as to improve the steadiness and scientism of business management.

Risk-aligned Remuneration Mechanism

The Bank's remuneration policy is in line with the risk management system and adapted to the institutional scale, and the nature and the sophistication of the business. The remuneration structures of each institution or position are different according to the need of risk management. The Bank adjusts the risks that have not yet been reflected in the period by taking risk mitigation measures including risk-adjusted performance and deferred remuneration payment, and implements performance assessment and incentives to promote a positive and healthy risk management culture.

The Bank gradually established deferred payment mechanism based on business needs and deferred part of the performance-related remuneration of employees who assume responsibilities for material risk and risk management and control. For persons receiving deferred payment, if significant losses of risk exposures are incurred within their responsibility during their employment, the Bank can recall part or all of performance-related remuneration paid in relevant period and stop further payments.

Independence of the Remuneration for Risk and Compliance Employees

Remuneration for risk and compliance employees is based on their value contributed, capability, and job performance, not directly related to their responsible businesses. The Bank sets up a vertical internal audit system, which takes on the responsibility for the Board of Directors and reports to the Board of Directors directly. The remuneration of the internal audit employees is independent from that of other lines of business.

For basic information and annual remuneration of Senior Management members and remuneration of the Compensation Committee of the Board of Directors of the Bank, please refer to the 2020 Annual Report.

Capital Adequacy Ratio Report 2020

Appendixes

The following information is disclosed in accordance with the Notice on Issuing Regulatory Documents on Capital Regulation for Commercial Banks Appendix 2 Notice on Enhancing Disclosure Requirements for Composition of Capital.

CAPITAL COMPOSITION

In RMB millions, except for percentages

		At 31 December	At 31 December
S/N	Item	2020	2019	Reference(1)
Core tier 1 capital:

1	Paid-in capital	356,407	356,407	X18

2	Retained earnings	2,170,740	1,964,205

2a	Surplus reserve	322,692	292,149	X21

2b	General reserve	339,486	304,876	X22

2c	Retained profits	1,508,562	1,367,180	X23

3	Accumulated other comprehensive income	138,356	147,984
	(and other public reserves)

3a	Capital reserve	148,534	149,067	X19

3b	Others	(10,178)	(1,083)	X24

4	Valid portion to core tier 1 capital during the	-	-

transition period (only applicable to non-joint
stock companies. Fill in 0 for joint stock banks)

5	Valid portion of minority interests	3,552	4,178	X25

6	Core tier 1 capital before regulatory	2,669,055	2,472,774
	adjustments

Core tier 1 capital: Regulatory adjustments

7	Prudential valuation adjustments	-	-

8	Goodwill (net of deferred tax liabilities)	8,107	9,038	X16

9	Other intangible assets other than land use rights	4,582	2,933	X14-X15
	(net of deferred tax liabilities)

10	Deferred tax assets that rely on future profitability	-	-

excluding those arising from temporary
differences (net of deferred tax liabilities)

Cash flow hedge reserves that relate to the

(4,616)

(4,451)

X20

hedging of items that are not fair valued on
the balance sheet

12	Shortfall of provision for loan impairment	-	-

13	Gain on sale related to asset securitization	-	-

14	Unrealised gains and losses due to changes	-	-
	in own credit risk on fair valued liabilities

15	Defined-benefit pension fund net assets	-	-
	(net of deferred tax liabilities)

Note: (1) For mapped components of the balance sheet under regulatory scope of consolidation to capital items, please refer to "Explanations for Detailed Items".

				Appendixes
CAPITAL COMPOSITION (CONTINUED)
			In RMB millions, except for percentages

		At 31 December	At 31 December
S/N	Item	2020	2019	Reference
16	Direct or indirect investments in own ordinary	-	-
	shares

17	Reciprocal cross-holdings in core tier 1 capital	-	-

between banks or between banks and other
financial institutions

Deductible amount of non-significant minority

investment in core tier 1 capital instruments
issued by financial institutions that are not
subject to consolidation

Deductible amount of significant minority

investment in core tier 1 capital instruments
issued by financial institutions that are not
subject to consolidation

20	Mortgage servicing rights	N/A	N/A

21	Deferred tax assets arising from temporary	-	-

differences (amount above 10% threshold,
net of deferred tax liabilities)

Deductible amount exceeding the 15% threshold

for significant minority capital investments in
core tier 1 capital instruments issued by
financial institutions that are not subject
to consolidation and undeducted portion
of deferred tax assets arising from temporary
differences (net of deferred tax liabilities)

23	Including: Deductible amount of significant	-	-
	minority investments in core tier 1
	capital instruments issued by
	financial institutions

24	Including: Deductible amount of mortgage	N/A	N/A
	servicing rights

25	Including: Deductible amount in deferred	-	-
	tax assets arising from temporary
	differences

26a	Investments in core tier 1 capital instruments	7,980	7,980	X11

issued by financial institutions that are under
control but not subject to consolidation

26b

Shortfall in core tier 1 capital instruments issued

by financial institutions that are under control
but not subject to consolidation

Capital Adequacy Ratio Report 2020

Appendixes

CAPITAL COMPOSITION (CONTINUED)

In RMB millions, except for percentages

		At 31 December	At 31 December
S/N	Item	2020	2019	Reference
26c	Others that should be deducted from core tier 1	-	-
	capital

27	Undeducted shortfall that should be deducted	-	-
	from additional tier 1 capital and tier 2 capital

28	Total regulatory adjustments to core tier 1	16,053	15,500
	capital

29	Core tier 1 capital	2,653,002	2,457,274

Additional tier 1 capital:

30	Additional tier 1 capital instruments and related	219,143	199,456
	premium

31	Including: Portion classified as equity	139,156	199,456	X28+X32

32	Including: Portion classified as liabilities	79,987	-

33	Invalid instruments to additional tier 1 capital	-	-
	after the transition period

34	Valid portion of minority interests	647	793	X26

35	Including: Invalid portion to additional tier 1	-	-
	capital after the transition period

36	Additional tier 1 capital before regulatory	219,790	200,249
	adjustments

Additional tier 1 capital: Regulatory adjustments

37	Direct or indirect investments in own additional	-	-
	tier 1 instruments

38	Reciprocal cross-holdings in additional tier 1	-	-

capital between banks or between banks
and other financial institutions

Deductible amount of non-significant minority

investment in additional tier 1 capital
instruments issued by financial institutions
that are not subject to consolidation

Significant minority investments in additional tier 1

capital instruments issued by financial
institutions that are not subject to consolidation

41a

Investments in additional tier 1 capital

instruments issued by financial institutions that
are under control but not subject to
consolidation

41b

Shortfall in additional tier 1 capital instruments

issued by financial institutions that are under
control but not subject to consolidation

				Appendixes
CAPITAL COMPOSITION (CONTINUED)
			In RMB millions, except for percentages

		At 31 December	At 31 December
S/N	Item	2020	2019	Reference
41c	Others that should be deducted from	-	-
	additional tier 1 capital

42	Undeducted shortfall that should be deducted	-	-
	from tier 2 capital

43	Total regulatory adjustments to additional	-	-
	tier 1 capital

44	Additional tier 1 capital	219,790	200,249

45	Tier 1 capital (core tier 1 capital + additional	2,872,792	2,657,523

tier 1 capital)
Tier 2 capital:

46	Tier 2 capital instruments and related premium	351,568	272,680	X17

47	Invalid instruments to tier 2 capital after the	40,570	60,855
	transition period

48	Valid portion of minority interests	1,114	1,707	X27

49	Including: Invalid portion to tier 2 capital after	-	439
	the transition period

50	Valid portion of surplus provision for	170,712	189,569	X02+X04
	loan impairment

51	Tier 2 capital before regulatory adjustments	523,394	463,956

Tier 2 capital: Regulatory adjustments

52	Direct or indirect investments in own tier 2	-	-
	instruments

53	Reciprocal cross-holdings in tier 2 capital	-	-

between banks or between banks and
other financial institutions

Deductible portion of non-significant minority

investment in tier 2 capital instruments issued
by financial institutions that are not subject
to consolidation

Significant minority investments in tier 2 capital

X31

instruments issued by financial institutions that
are not subject to consolidation

56a

Investments in tier 2 capital instruments issued by

financial institutions that are under control
but not subject to consolidation

56b

Shortfall in tier 2 capital instruments issued by

financial institutions that are under control
but not subject to consolidation

Capital Adequacy Ratio Report 2020

Appendixes

CAPITAL COMPOSITION (CONTINUED)

In RMB millions, except for percentages

		At 31 December	At 31 December
S/N	Item	2020	2019	Reference
56c	Others that should be deducted from tier 2	-	-
	capital

57	Total regulatory adjustments to tier 2 capital	-	-

58	Tier 2 capital	523,394	463,956

59	Total capital (tier 1 capital + tier 2 capital)	3,396,186	3,121,479

60	Total risk-weighted assets	20,124,139	18,616,886

Requirements for capital adequacy ratio and reserve capital

61	Core tier 1 capital adequacy ratio	13.18%	13.20%

62	Tier 1 capital adequacy ratio	14.28%	14.27%

63	Capital adequacy ratio	16.88%	16.77%

64	Institution specific buffer requirement	4.0%	4.0%

65	Including: Capital conservation buffer	2.5%	2.5%
	requirement

66	Including: Countercyclical buffer requirement	-	-

67	Including: G-SIB buffer requirement	1.5%	1.5%

68	Percentage of core tier 1 capital meeting buffers	8.18%	8.20%

to risk-weighted assets
Domestic minima for regulatory capital

69	Core tier 1 capital adequacy ratio	5%	5%

70	Tier 1 capital adequacy ratio	6%	6%

71	Capital adequacy ratio	8%	8%

Amounts below the thresholds for deduction

72	Undeducted portion of non-significant minority	138,247	84,515	X05+X07+X08+
	investments in capital instruments issued by			X09+X12+X29+
	financial institutions that are not subject to			X30
	consolidation

73	Undeducted portion of significant minority	32,452	37,654	X06+X10+X13

investments in capital instruments issued by
financial institutions that are not subject to
consolidation

74	Mortgage servicing rights (net of deferred	N/A	N/A
	tax liabilities)

75	Deferred tax assets arising from temporary	65,719	60,846
	differences (net of deferred tax liabilities)

Valid caps of surplus provision for loan impairment in tier 2 capital

76	Provision for loan impairment under the	23,204	17,647	X01
	weighted approach

				Appendixes
CAPITAL COMPOSITION (CONTINUED)
			In RMB millions, except for percentages

		At 31 December	At 31 December
S/N	Item	2020	2019	Reference
77	Valid cap of surplus provision for loan impairment	7,802	7,923	X02
	in tier 2 capital under the weighted approach

78	Surplus provision for loan impairment under	507,096	460,851	X03
	the internal ratings-based approach

79	Valid cap of surplus provision for loan	162,910	181,646	X04

impairment in tier 2 capital under the
internal ratings-based approach

Capital instruments subject to phase-out arrangements

80	Valid cap to core tier 1 capital instruments for the	-	-
	current period due to phase-out arrangements

81	Excluded from core tier 1 capital due to cap	-	-

82	Valid cap to additional tier 1 capital instruments	-	-

for the current period due to phase-out
arrangements

83	Excluded from additional tier 1 capital due to cap	-	-

84	Valid cap to tier 2 capital instruments for the	40,570	60,855
		current period due to phase-out arrangements

85	Excluded from tier 2 capital for the	67,463	63,383
		current period due to cap

Capital Adequacy Ratio Report 2020

Appendixes

BALANCE SHEET AT THE GROUP'S LEVEL

								In RMB millions

				At 31 December 2020	At 31 December 2019

				Consolidated	Balance	Consolidated	Balance
				balance sheet	sheet under	balance sheet	sheet under
				as in published	regulatory	as in published	regulatory
				financial	scope of	financial	scope of
Item		statements	consolidation	statements	consolidation
Assets

Cash and balances with central banks	3,537,795	3,537,795	3,317,916	3,317,916

Due from banks and other financial	522,913	489,231		475,325	450,976
	institutions

Precious metals	277,705	277,705		238,061	238,061

Placements with banks and other financial	558,984	558,984		567,043	567,043
	institutions

Derivative financial assets	134,155	134,155		68,311	68,311

Reverse repurchase agreements	739,288	738,958		845,186	841,954

Loans and advances to customers	18,136,328	18,134,777		16,326,552	16,325,339

Financial investments:	8,591,139	8,429,328		7,647,117	7,528,268

- Financial investments measured at	784,483	732,478		962,078	921,042
			fair value through profit or loss

- Financial investments measured at	1,540,988	1,498,008		1,476,872	1,451,357
			fair value through other comprehensive
			income

- Financial investments measured at	6,265,668	6,198,842		5,208,167	5,155,869
			amortised cost

Long-term equity investments	41,206	49,186		32,490	40,470

Fixed assets	249,067	249,008		244,902	244,846

Construction in progress	35,173	35,166		39,714	39,712

Deferred income tax assets	67,713	67,713		62,536	62,536

Other assets	453,592	440,548		244,283	230,111

Total assets	33,345,058	33,142,554		30,109,436	29,955,543

					Appendixes
BALANCE SHEET AT THE GROUP'S LEVEL (CONTINUED)
					In RMB millions

	At 31 December 2020	At 31 December 2019

	Consolidated	Balance	Consolidated	Balance
	balance sheet	sheet under	balance sheet	sheet under
	as in published	regulatory	as in published	regulatory
	financial	scope of	financial	scope of
Item	statements	consolidation	statements	consolidation
Liabilities

Due to central banks	54,974	54,974	1,017	1,017

Due to banks and other financial institutions	2,315,643	2,315,643	1,776,320	1,776,320

Placements from banks and other financial	468,616	468,616		490,253	490,253
institutions

Financial liabilities measured at fair value	87,938	87,938		102,242	102,242
through profit or loss

Derivative financial liabilities	140,973	140,973		85,180	85,180

Repurchase agreements	293,434	282,458		263,273	254,926

Certificates of deposit	335,676	335,676		355,428	355,428

Due to customers	25,134,726	25,134,726		22,977,655	22,977,655

Employee benefits payable	32,460	32,073		35,301	34,960

Taxes payable	105,380	105,356		109,601	109,545

Debt securities issued	798,127	798,127		742,875	742,875

Deferred income tax liabilities	2,881	1,994		1,873	1,690

Other liabilities	664,715	483,519		476,415	339,246

Total liabilities	30,435,543	30,242,073		27,417,433	27,271,337

Equity

Share capital	356,407	356,407		356,407	356,407

Other equity instruments	225,819	225,819		206,132	206,132

Capital reserve	148,534	148,534		149,067	149,067

Other comprehensive income	(10,428)	(10,178)		(1,266)	(1,083)

Surplus reserve	322,911	322,692		292,291	292,149

General reserve	339,701	339,486		305,019	304,876

Retained profits	1,510,558	1,508,562		1,368,536	1,367,180

Equity attributable to equity holders of	2,893,502	2,891,322		2,676,186	2,674,728
the parent company

Minority interests	16,013	9,159		15,817	9,478

Total equity	2,909,515	2,900,481		2,692,003	2,684,206

Note: Prepared in accordance with PRC GAAP.

Capital Adequacy Ratio Report 2020

Appendixes

EXPLANATIONS FOR DETAILED ITEMS

			In RMB millions

		At 31 December 2020
		Balance sheet under
		regulatory scope of
Item	consolidation	Reference
Loans and advances to customers	18,134,777

Total loans and advances to customers	18,665,077

Less: Provision for loan impairment under the weighted approach	23,204	X01

	Including: Valid cap of surplus provision for loan impairment in tier 2	7,802	X02
	capital under the weighted approach

Less: Provision for loan impairment under the internal ratings-based	507,096	X03
	approach

	Including: Valid cap of surplus provision for loan impairment in tier 2 capital under	162,910	X04
	the internal ratings-based approach

Financial investments:

Financial investments measured at fair value through profit or loss	732,478

	Including: Non-significant minority investments in core tier 1 capital	67	X05
	instruments issued by financial institutions that are not subject
	to consolidation

	Including: Significant minority investments in core tier 1 capital	1,658	X06
	instruments issued by financial institutions that are not subject to
	consolidation

	Including: Non-significant minority investments in additional tier 1 capital	217	X07
	instruments issued by financial institutions that are not subject to
	consolidation

	Including: Non-significant minority investments in tier 2 capital	126,749	X08
	instruments issued by financial institutions that are not subject to
	consolidation

	Financial investments measured at fair value through other	1,498,008
	comprehensive income

	Including: Non-significant minority investments in core tier 1 capital	10,998	X09
	instruments issued by financial institutions that are not subject to
	consolidation

	Including: Significant minority investments in core tier 1 capital	3,445	X10
	instruments issued by financial institutions that are not subject to
	consolidation

	Including: Non-significant minority investments in tier 2 capital	-	X29
	instruments issued by financial institutions that are not subject to
	consolidation

	Financial investments measured at amortised cost	6,198,842

	Including: Non-significant minority investments in tier 2 capital instruments	199	X30
	issued by financial institutions that are not subject to consolidation

	Including: Significant minority investments in tier 2 capital instruments	-	X31
	issued by financial institutions that are not subject to consolidation

Appendixes

EXPLANATIONS FOR DETAILED ITEMS (CONTINUED)

			In RMB millions

		At 31 December 2020
		Balance sheet under
		regulatory scope of
Item	consolidation	Reference
Long-term equity investments	49,186

Including: Investment in core tier 1 capital instruments issued by financial	7,980	X11
	institutions that are under control but not subject to consolidation

Including: Undeducted portion of non-significant minority investments	17	X12
	in capital instruments issued by financial institutions that are not
	subject to consolidation

Including: Undeducted portion of significant minority investments in	27,349	X13
	capital instruments issued by financial institutions that are not
	subject to consolidation

Other assets	440,548

	Interest receivable	1,985

	Intangible assets	20,717	X14

	Including: Land use rights	16,135	X15

	Other receivables	359,902

	Goodwill	8,107	X16

	Long-term deferred expenses	4,639

	Repossessed assets	5,325

	Others	39,873

Debt securities issued	798,127

Including: Valid portion of tier 2 capital instruments and their premium	351,568	X17

Share capital	356,407	X18

Other equity instruments	225,819

	Including: Preference shares	139,156	X28

	Including: Perpetual bonds	79,987	X32

Capital reserve	148,534	X19

Other comprehensive income	(10,178)	X24

Reserve for changes in fair value of financial assets	22,726

Reserve for cash flow hedging	(4,725)

	Including: Cash flow hedge reserves that relate to the hedging of items	(4,616)	X20
	that are not fair valued on the balance sheet

Changes in share of other owners' equity of associates and joint ventures	(1,381)

Foreign currency translation reserve	(27,518)

	Others	720

Surplus reserve	322,692	X21

General reserve	339,486	X22

Retained profits	1,508,562	X23

Minority interests	9,159

Including: Valid portion to core tier 1 capital	3,553	X25

Including: Valid portion to additional tier 1 capital	647	X26

Including: Valid portion to tier 2 capital	1,114	X27

Capital Adequacy Ratio Report 2020

MAIN FEATURES OF ELIGIBLE CAPITAL INSTRUMENTS AT THE END OF 2020

								Undated additional
	Main features of	Ordinary shares	Ordinary shares	Preference shares	Preference shares	Preference shares	Preference shares	tier 1 capital bonds
S/N	regulatory capital instrument	(A share)	(H share)	(Domestic)	(Domestic)	(Offshore)	(Offshore)	(Domestic)

1	Issuer	The Bank	The Bank	The Bank	The Bank	The Bank	The Bank	The Bank

2	Unique identifier	601398	1398	360011	360036	4604	4620	1928018

3	Governing law(s) of the	Securities Law	Securities and	Company Law of the	Company Law of the	The creation and issue of	The creation and issue of	Governed by the
	instrument	of the People's	Futures Ordinance	People's Republic of	People's Republic of	the Offshore Preference	the Offshore Preference	Commercial Banking
		Republic of China/	of Hong Kong/Hong	China, Securities Law of	China, Securities Law of	Shares and the rights and	Shares and the rights and	Law of the People's
		China	Kong, China	the People's Republic of	the People's Republic of	obligations (including non-	obligations (including non-	Republic of China, the
				China, Guidance of the	China, Guidance of the	contractual rights and	contractual rights and	Regulation Governing
				State Council on Launch	State Council on Launch	obligations) attached to	obligations) attached to	Capital of Commercial
				of Preference Shares	of Preference Shares	them are governed by,	them are governed by,	Banks (Provisional)
				Pilot, Trial Administrative	Pilot, Trial Administrative	and shall be construed in	and shall be construed in	and the Measures for
				Measures on Preference	Measures on Preference	accordance with, PRC law	accordance with, PRC law	Administration of Financial
				Shares, Guidance on the	Shares, Guidance on the			Bond Issuance in China's
				Issuance of Preference	Issuance of Preference			Inter-bank Bond Market,
				Shares of Commercial	Shares of Commercial			as well as other applicable
				Banks to Replenish Tier 1	Banks to Replenish Tier 1			laws, regulations and
				Capital/China	Capital /China			normative documents/
								China

	Regulatory treatment

4	Including: Transition	Core tier 1 capital	Core tier 1 capital	Additional tier 1 capital	Additional tier 1 capital	Additional tier 1 capital	Additional tier 1 capital	Additional tier 1 capital
	arrangement of Regulation
	Governing Capital of
	Commercial Banks
	(Provisional)

5	Including: Post-transition	Core tier 1 capital	Core tier 1 capital	Additional tier 1 capital	Additional tier 1 capital	Additional tier 1 capital	Additional tier 1 capital	Additional tier 1 capital
	arrangement of Regulation
	Governing Capital of
	Commercial Banks
	(Provisional)

6	Including: Eligible to the	Parent company/	Parent company/	Parent company/Group	Parent company/Group	Parent company/Group	Parent company/Group	Parent company/Group
	parent company/group level	Group	Group

7	Instrument type	Core tier 1 capital	Core tier 1 capital	Additional tier 1 capital	Additional tier 1 capital	Additional tier 1 capital	Additional tier 1 capital	Additional tier 1 capital
		instrument	instrument	instrument	instrument	instrument	instrument	instrument

8	Amount recognized in	RMB336,554	RMB168,374	RMB44,947	RMB69,981	RMB equivalent 4,542	RMB equivalent 19,687	RMB79,987
	regulatory capital (in millions, as
	at the latest reporting date)

Appendixes

51 2020 Report Ratio Adequacy Capital

MAIN FEATURES OF ELIGIBLE CAPITAL INSTRUMENTS AT THE END OF 2020 (CONTINUED)

								Undated additional
	Main features of	Ordinary shares	Ordinary shares	Preference shares	Preference shares	Preference shares	Preference shares	tier 1 capital bonds
S/N	regulatory capital instrument	(A share)	(H share)	(Domestic)	(Domestic)	(Offshore)	(Offshore)	(Domestic)

9	Par value of instrument (in	RMB269,612	RMB86,795	RMB45,000	RMB70,000	EUR600	USD2,900	RMB80,000
	millions)

10	Accounting treatment	Share capital,	Share capital,	Other equity	Other equity	Other equity	Other equity	Other equity
		Capital reserve	Capital reserve

11	Original date of issuance	19 October 2006	19 October 2006	18 November 2015	19 September 2019	10 December 2014	23 September 2020	26 July 2019

12	Perpetual or dated	Perpetual	Perpetual	Perpetual	Perpetual	Perpetual	Perpetual	Perpetual

13	Including: Original maturity	No maturity date	No maturity date	No maturity date	No maturity date	No maturity date	No maturity date	No maturity date
	date

14	Issuer call (subject to prior	No	No	Yes	Yes	Yes	Yes	Yes
	supervisory approval)

15	Including: Optional call date,	N/A	N/A	The First Redemption Date	The First Redemption Date	The First Redemption Date	The First Redemption Date	The First Redemption Date
	contingent call dates and			is 18 November 2020, in	is 24 September 2024, in	is 10 December 2021, in	is 23 September 2025, in	is 30 July 2024, in full or
	redemption amount			full or partial amount	full or partial amount	full or partial amount	full or partial amount	partial amount

16	Including: Subsequent call	N/A	N/A	Commences on the	Commences on the	10 December in each year	23 September in each year	Redemption of present
	dates, if applicable			First Redemption Date	First Redemption Date	after the First Redemption	after the First Redemption	bonds in full or in part
				(18 November 2020) and	(24 September 2024) and	Date	Date	on each Distribution
				ends on the completion	ends on the completion			Payment Date since the
				date of redemption or	date of redemption or			First Redemption Date
				conversion of all the	conversion of all the			(30 July 2024). The Issuer
				Domestic Preference	Domestic Preference			has the right to redeem
				Shares	Shares			the present bonds in
								full rather than in part
								if the present bonds
								are no longer qualify as
								additional tier 1 capital
								after they are issued due
								to unpredictable changes
								in regulatory rules

	Coupons/dividends

17	Including: Fixed or floating	Floating	Floating	Fixed to floating	Fixed to floating	Fixed to floating	Fixed to floating	Fixed to floating
	dividend/coupon

Appendixes

MAIN FEATURES OF ELIGIBLE CAPITAL INSTRUMENTS AT THE END OF 2020 (CONTINUED)

								Undated additional
	Main features of	Ordinary shares	Ordinary shares	Preference shares	Preference shares	Preference shares	Preference shares	tier 1 capital bonds
S/N	regulatory capital instrument	(A share)	(H share)	(Domestic)	(Domestic)	(Offshore)	(Offshore)	(Domestic)

18	Including: Coupon rate and	N/A	N/A	4.5% (dividend rate)	4.2% (dividend rate)	6% (dividend rate) before	3.58% (dividend rate)	4.45% (interest rate)
	any related index			before 23 November	before 24 September	10 December 2021	before 23 September	before 30 July 2024
				2020, and 4.58%	2024		2025
				(dividend rate) between
				23 November 2020 and
				22 November 2025

19	Including: Existence of a	N/A	N/A	Yes	Yes	Yes	Yes	Yes
	dividend stopper

20	Including: Fully discretionary,	Fully discretionary	Fully discretionary	Partially discretionary	Partially discretionary	Partially discretionary	Partially discretionary	Partially discretionary
	partially discretionary or
	mandatory cancellation of
	coupons/dividends

21	Including: Redemption	No	No	No	No	No	No	No
	incentive mechanism

22	Including: Non-cumulative or	Non-cumulative	Non-cumulative	Non-cumulative	Non-cumulative	Non-cumulative	Non-cumulative	Non-cumulative
	cumulative

23	Convertible or non-convertible	No	No	Yes	Yes	Yes	Yes	No

24	Including: If convertible,	N/A	N/A	Additional Tier 1 Capital	Additional Tier 1 Capital	Additional Tier 1 Capital	Non-viability Trigger Event	N/A
	conversion trigger(s)			Trigger Event or Tier 2	Trigger Event or Tier 2	Trigger Event or Tier 2
				Capital Trigger Event	Capital Trigger Event	Capital Trigger Event

25	Including: If convertible, fully	N/A	N/A	Fully or partially convertible	Fully or partially convertible	Fully or partially convertible	Fully or partially convertible	N/A
	or partially			when an Additional Tier	when an Additional Tier	when an Additional Tier	when an Non-viability
				1 Capital Trigger Event	1 Capital Trigger Event	1 Capital Trigger Event	Trigger Event occurs
				occurs; fully convertible	occurs; fully convertible	occurs; fully convertible
				when a Tier 2 Capital	when a Tier 2 Capital	when a Tier 2 Capital
				Trigger Event occurs	Trigger Event occurs	Trigger Event occurs

Appendixes

26	Including: If convertible,	N/A	N/A	The initial conversion price
	conversion rate			is equal to the average
				trading price of the A
				shares of the Bank for the
				20 trading days preceding
				25 July 2014, the date of

publication of the Board resolution in respect of the issuance plan

The initial conversion price is equal to the average trading price of the A shares of the Bank for the 20 trading days preceding 30 August 2018, the date of publication of the Board resolution in respect of the issuance plan

The initial conversion price is equal to the average trading price of the H shares of the Bank for the 20 trading days preceding 25 July 2014, the date of publication of the Board resolution in respect of the issuance plan

The initial conversion	N/A
price is equal to the
average trading price of
the H shares of the Bank
for the 20 trading days
preceding 30 August 2018,
the date of publication of
the Board resolution in
respect of the issuance plan

53 2020 Report Ratio Adequacy Capital

MAIN FEATURES OF ELIGIBLE CAPITAL INSTRUMENTS AT THE END OF 2020 (CONTINUED)

								Undated additional
	Main features of	Ordinary shares	Ordinary shares	Preference shares	Preference shares	Preference shares	Preference shares	tier 1 capital bonds
S/N	regulatory capital instrument	(A share)	(H share)	(Domestic)	(Domestic)	(Offshore)	(Offshore)	(Domestic)

27	Including: If convertible,	N/A	N/A	Mandatory	Mandatory	Mandatory	Mandatory	N/A
	mandatory or optional
	conversion

28	Including: If convertible,	N/A	N/A	Core tier 1 capital	Core tier 1 capital	Core tier 1 capital	Core tier 1 capital	N/A
	specify instrument type
	convertible into

29	Including: If convertible,	N/A	N/A	The Bank	The Bank	The Bank	The Bank	N/A
	specify issuer of instrument it
	converts into

30	Write-down feature	No	No	No	No	No	No	Yes

31	Including: If write-down,	N/A	N/A	N/A	N/A	N/A	N/A	Additional Tier 1 Capital
	write-down trigger(s)							Trigger Event or Tier 2
								Capital Trigger Event

32	Including: If write-down, full	N/A	N/A	N/A	N/A	N/A	N/A	Full or partial write-down
	or partial							when an Additional Tier
								1 Capital Trigger Event
								occurs; full write-down
								when a Tier 2 Capital
								Trigger Event occurs

33	Including: If write-down,	N/A	N/A	N/A	N/A	N/A	N/A	Permanent write-down
	permanent or temporary

34	Including: If temporary	N/A	N/A	N/A	N/A	N/A	N/A	N/A
	write-down, description of
	write-up mechanism

35	Position in subordination	Subordinated	Subordinated	Subordinated to	Subordinated to	Subordinated to	Subordinated to	Subordinated to
	hierarchy in liquidation (specify	to depositor,	to depositor,	deposits, general debts,	deposits, general debts,	deposits, general debts,	deposits, general debts,	deposits, general debts,
	instrument type immediately	general creditor,	general creditor,	subordinated debts, tier 2	subordinated debts, tier 2	subordinated debts, tier 2	subordinated debts, tier 2	subordinated debts and tier
	senior to instrument)	creditor of the	creditor of the	capital bonds and undated	capital bonds and undated	capital bonds and undated	capital bonds and undated	2 capital bonds
		subordinated debts	subordinated debts	additional tier 1 capital	additional tier 1 capital	additional tier 1 capital	additional tier 1 capital
		and preference	and preference	bonds	bonds	bonds	bonds
		shareholders	shareholders

36	Non-compliant transitioned	No	No	No	No	No	No	No
	features

	Including: If yes, specify	N/A	N/A	N/A	N/A	N/A	N/A	N/A
	non-compliant features

Appendixes

MAIN FEATURES OF ELIGIBLE CAPITAL INSTRUMENTS AT THE END OF 2020 (CONTINUED)

		Main features of
	S/N	regulatory capital instrument	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds

	1	Issuer	The Bank	The Bank	The Bank	The Bank	The Bank

2	Unique identifier	Rule 144A ISIN:	1728021	1728022	1928006	1928007
			US455881AD47
			Regulation S ISIN:
			USY39656AC06

3	Governing law(s) of the	The Notes and the Fiscal	Governed by the Commercial	Governed by the Commercial	Governed by the Commercial	Governed by the Commercial
		instrument	Agency Agreement shall be	Banking Law of the People's	Banking Law of the People's	Banking Law of the People's	Banking Law of the People's
			governed by, and shall be	Republic of China, the	Republic of China, the	Republic of China, the	Republic of China, the
			construed in accordance with,	Regulation Governing	Regulation Governing	Regulation Governing	Regulation Governing
			New York law, except that the	Capital of Commercial Banks	Capital of Commercial Banks	Capital of Commercial Banks	Capital of Commercial Banks
			provisions of the Notes relating	(Provisional) and the Measures	(Provisional) and the Measures	(Provisional) and the Measures	(Provisional) and the Measures
			to subordination shall be	for Administration of Financial	for Administration of Financial	for Administration of Financial	for Administration of Financial
			governed by, and construed in	Bond Issuance in China's	Bond Issuance in China's	Bond Issuance in China's	Bond Issuance in China's
			accordance with, PRC law	Inter-bank Bond Market, as	Inter-bank Bond Market, as	Inter-bank Bond Market, as	Inter-bank Bond Market, as
				well as other applicable laws,	well as other applicable laws,	well as other applicable laws,	well as other applicable laws,
				regulations and normative	regulations and normative	regulations and normative	regulations and normative
				documents /China	documents /China	documents /China	documents /China

		Regulatory treatment

	4	Including: Transition	Tier 2 capital	Tier 2 capital	Tier 2 capital	Tier 2 capital	Tier 2 capital
		arrangement of Regulation
		Governing Capital of
		Commercial Banks (Provisional)

5	Including: Post-transition	Tier 2 capital	Tier 2 capital	Tier 2 capital	Tier 2 capital	Tier 2 capital
		arrangement of Regulation
		Governing Capital of
		Commercial Banks (Provisional)

6	Including: Eligible to the parent	Parent company/Group	Parent company/Group	Parent company/Group	Parent company/Group	Parent company/Group
		company/group level

7	Instrument type	Tier 2 capital instruments	Tier 2 capital instruments	Tier 2 capital instruments	Tier 2 capital instruments	Tier 2 capital instruments

8	Amount recognized in regulatory	RMB equivalent 12,998	RMB44,000	RMB44,000	RMB45,000	RMB10,000
		capital (in millions, as at the latest
		reporting date)

9	Par value of instrument (in	USD2,000	RMB44,000	RMB44,000	RMB45,000	RMB10,000
		millions)

10	Accounting treatment	Debt securities issued	Debt securities issued	Debt securities issued	Debt securities issued	Debt securities issued

11	Original date of issuance	21 September 2015	6 November 2017	20 November 2017	21 March 2019	21 March 2019

12	Perpetual or dated	Dated	Dated	Dated	Dated	Dated

13	Including: Original maturity date	21 September 2025	8 November 2027	22 November 2027	25 March 2029	25 March 2034

Appendixes

55 2020 Report Ratio Adequacy Capital

MAIN FEATURES OF ELIGIBLE CAPITAL INSTRUMENTS AT THE END OF 2020 (CONTINUED)

		Main features of
	S/N	regulatory capital instrument	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds

	14	Issuer call (subject to prior	No	Yes	Yes	Yes	Yes
		supervisory approval)

15	Including: Optional call date,	N/A	8 November 2022, in full	22 November 2022, in full	25 March 2024, in full	25 March 2029, in full
		contingent call dates and		amount	amount	amount	amount
		redemption amount

16	Including: Subsequent call	N/A	N/A	N/A	N/A	N/A
		dates, if applicable

		Coupons/dividends

	17	Including: Fixed or floating	Fixed	Fixed	Fixed	Fixed	Fixed
		dividend/coupon

18	Including: Coupon rate and any	4.875%	4.45%	4.45%	4.26%	4.51%
		related index

19	Including: Existence of a	No	No	No	No	No
		dividend stopper

20	Including: Fully discretionary,	Mandatory	Mandatory	Mandatory	Mandatory	Mandatory
		partially discretionary or
		mandatory cancellation of
		coupons/dividends

21	Including: Redemption incentive	No	No	No	No	No
		mechanism

22	Including: Non-cumulative or	Non-cumulative	Non-cumulative	Non-cumulative	Non-cumulative	Non-cumulative
		cumulative

23	Convertible or non-convertible	No	No	No	No	No

24	Including: If convertible,	N/A	N/A	N/A	N/A	N/A
		conversion trigger(s)

25	Including: If convertible, fully or	N/A	N/A	N/A	N/A	N/A
		partially

26	Including: If convertible,	N/A	N/A	N/A	N/A	N/A
		conversion rate

27	Including: If convertible,	N/A	N/A	N/A	N/A	N/A
		mandatory or optional
		conversion

28	Including: If convertible, specify	N/A	N/A	N/A	N/A	N/A
		instrument type convertible into

Appendixes

MAIN FEATURES OF ELIGIBLE CAPITAL INSTRUMENTS AT THE END OF 2020 (CONTINUED)

		Main features of
	S/N	regulatory capital instrument	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds

	29	Including: If convertible, specify	N/A	N/A	N/A	N/A	N/A
		issuer of instrument it converts
		into

30	Write-down feature	Yes	Yes	Yes	Yes	Yes

31	Including: If write-down, write-	Whichever occurs earlier:	Whichever occurs earlier:	Whichever occurs earlier:	Whichever occurs earlier:	Whichever occurs earlier:
		down trigger(s)	(i) CBIRC having decided that	(i) CBIRC having decided that	(i) CBIRC having decided that	(i) CBIRC having decided that	(i) CBIRC having decided that
			a write-down is necessary,	a write-down is necessary,	a write-down is necessary,	a write-down is necessary,	a write-down is necessary,
			without which the Issuer	without which the Issuer	without which the Issuer	without which the Issuer	without which the Issuer
			would become non-viable; or	would become non-viable; or	would become non-viable; or	would become non-viable; or	would become non-viable; or
			(ii) any relevant authority	(ii) any relevant authority	(ii) any relevant authority	(ii) any relevant authority	(ii) any relevant authority
			having decided that a public	having decided that a public	having decided that a public	having decided that a public	having decided that a public
			sector injection of capital or	sector injection of capital or	sector injection of capital or	sector injection of capital or	sector injection of capital or
			equivalent support is necessary,	equivalent support is necessary,	equivalent support is necessary,	equivalent support is necessary,	equivalent support is necessary,
			without which the Issuer would	without which the Issuer would	without which the Issuer would	without which the Issuer would	without which the Issuer would
			become non-viable	become non-viable	become non-viable	become non-viable	become non-viable

32	Including: If write-down, full or	Partial or full write-down	Partial or full write-down	Partial or full write-down	Partial or full write-down	Partial or full write-down
		partial

33	Including: If write-down,	Permanent write-down	Permanent write-down	Permanent write-down	Permanent write-down	Permanent write-down
		permanent or temporary

34	Including: If temporary write-	N/A	N/A	N/A	N/A	N/A
		down, description of write-up
		mechanism

35	Position in subordination	Subordinated to depositor and	Subordinated to depositor and	Subordinated to depositor and	Subordinated to depositor and	Subordinated to depositor and
		hierarchy in liquidation (specify	general creditor, pari passu	general creditor, but senior	general creditor, but senior	general creditor, but senior	general creditor, but senior
		instrument type immediately	with other subordinated debts	to equity capital, other tier 1	to equity capital, other tier 1	to equity capital, other tier 1	to equity capital, other tier 1
		senior to instrument)		capital instruments and hybrid	capital instruments and hybrid	capital instruments and hybrid	capital instruments and hybrid
				capital bonds; pari passu with	capital bonds; pari passu with	capital bonds; pari passu with	capital bonds; pari passu with
				other subordinated debts	other subordinated debts	other subordinated debts	other subordinated debts
				that have been issued by the	that have been issued by the	that have been issued by the	that have been issued by the
				Issuer and are pari passu with	Issuer and are pari passu with	Issuer and are pari passu with	Issuer and are pari passu with
				the present bonds; and pari	the present bonds; and pari	the present bonds; and pari	the present bonds; and pari
				passu with other tier 2 capital	passu with other tier 2 capital	passu with other tier 2 capital	passu with other tier 2 capital
				instruments that will possibly	instruments that will possibly	instruments that will possibly	instruments that will possibly
				be issued in the future and are	be issued in the future and are	be issued in the future and are	be issued in the future and are
				pari passu with the present	pari passu with the present	pari passu with the present	pari passu with the present
				bonds	bonds	bonds	bonds

36	Non-compliant transitioned	No	No	No	No	No
		features

		Including: If yes, specify non-	N/A	N/A	N/A	N/A	N/A
		compliant features

Appendixes

57 2020 Report Ratio Adequacy Capital

MAIN FEATURES OF ELIGIBLE CAPITAL INSTRUMENTS AT THE END OF 2020 (CONTINUED)

		Main features of
	S/N	regulatory capital instrument	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds

	1	Issuer	The Bank	The Bank	The Bank	The Bank	The Bank

2	Unique identifier	1928011	1928012	2028041	2028049	2028050

3	Governing law(s) of the	Governed by the Commercial	Governed by the Commercial	Governed by the Commercial	Governed by the Commercial	Governed by the Commercial
		instrument	Banking Law of the People's	Banking Law of the People's	Banking Law of the People's	Banking Law of the People's	Banking Law of the People's
			Republic of China, the	Republic of China, the	Republic of China, the	Republic of China, the	Republic of China, the
			Regulation Governing	Regulation Governing	Regulation Governing	Regulation Governing	Regulation Governing
			Capital of Commercial Banks	Capital of Commercial Banks	Capital of Commercial Banks	Capital of Commercial Banks	Capital of Commercial Banks
			(Provisional) and the Measures	(Provisional) and the Measures	(Provisional) and the Measures	(Provisional) and the Measures	(Provisional) and the Measures
			for Administration of Financial	for Administration of Financial	for Administration of Financial	for Administration of Financial	for Administration of Financial
			Bond Issuance in China's	Bond Issuance in China's	Bond Issuance in China's	Bond Issuance in China's	Bond Issuance in China's
			Inter-bank Bond Market, as	Inter-bank Bond Market, as	Inter-bank Bond Market, as	Inter-bank Bond Market, as	Inter-bank Bond Market, as
			well as other applicable laws,	well as other applicable laws,	well as other applicable laws,	well as other applicable laws,	well as other applicable laws,
			regulations and normative	regulations and normative	regulations and normative	regulations and normative	regulations and normative
			documents /China	documents /China	documents /China	documents /China	documents /China

		Regulatory treatment

	4	Including: Transition	Tier 2 capital	Tier 2 capital	Tier 2 capital	Tier 2 capital	Tier 2 capital
		arrangement of Regulation
		Governing Capital of
		Commercial Banks (Provisional)

5	Including: Post-transition	Tier 2 capital	Tier 2 capital	Tier 2 capital	Tier 2 capital	Tier 2 capital
		arrangement of Regulation
		Governing Capital of
		Commercial Banks (Provisional)

6	Including: Eligible to the parent	Parent company/Group	Parent company/Group	Parent company/Group	Parent company/Group	Parent company/Group
		company/group level

7	Instrument type	Tier 2 capital instruments	Tier 2 capital instruments	Tier 2 capital instruments	Tier 2 capital instruments	Tier 2 capital instruments

8	Amount recognized in regulatory	RMB45,000	RMB10,000	RMB60,000	RMB30,000	RMB10,000
		capital (in millions, as at the latest
		reporting date)

9	Par value of instrument (in	RMB45,000	RMB10,000	RMB60,000	RMB30,000	RMB10,000
		millions)

10	Accounting treatment	Debt securities issued	Debt securities issued	Debt securities issued	Debt securities issued	Debt securities issued

11	Original date of issuance	24 April 2019	24 April 2019	22 September 2020	12 November 2020	12 November 2020

12	Perpetual or dated	Dated	Dated	Dated	Dated	Dated

13	Including: Original maturity date	26 April 2029	26 April 2034	24 September 2030	16 November 2030	16 November 2035

14	Issuer call (subject to prior	Yes	Yes	Yes	Yes	Yes
		supervisory approval)

Appendixes

MAIN FEATURES OF ELIGIBLE CAPITAL INSTRUMENTS AT THE END OF 2020 (CONTINUED)

		Main features of
	S/N	regulatory capital instrument	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds

	15	Including: Optional call date,	26 April 2024, in full	26 April 2029, in full	24 September 2025, in full	16 November 2025, in full	16 November 2030, in full
		contingent call dates and	amount	amount	amount	amount	amount
		redemption amount

16	Including: Subsequent call	N/A	N/A	N/A	N/A	N/A
		dates, if applicable

		Coupons/dividends

	17	Including: Fixed or floating	Fixed	Fixed	Fixed	Fixed	Fixed
		dividend/coupon

18	Including: Coupon rate and any	4.40%	4.69%	4.20%	4.15%	4.45%
		related index

19	Including: Existence of a	No	No	No	No	No
		dividend stopper

20	Including: Fully discretionary,	Mandatory	Mandatory	Mandatory	Mandatory	Mandatory
		partially discretionary or
		mandatory cancellation of
		coupons/dividends

21	Including: Redemption incentive	No	No	No	No	No
		mechanism

22	Including: Non-cumulative or	Non-cumulative	Non-cumulative	Non-cumulative	Non-cumulative	Non-cumulative
		cumulative

23	Convertible or non-convertible	No	No	No	No	No

24	Including: If convertible,	N/A	N/A	N/A	N/A	N/A
		conversion trigger(s)

25	Including: If convertible, fully or	N/A	N/A	N/A	N/A	N/A
		partially

26	Including: If convertible,	N/A	N/A	N/A	N/A	N/A
		conversion rate

27	Including: If convertible,	N/A	N/A	N/A	N/A	N/A
		mandatory or optional
		conversion

28	Including: If convertible, specify	N/A	N/A	N/A	N/A	N/A
		instrument type convertible into

29	Including: If convertible, specify	N/A	N/A	N/A	N/A	N/A
		issuer of instrument it converts
		into

30	Write-down feature	Yes	Yes	Yes	Yes	Yes

Appendixes

59 2020 Report Ratio Adequacy Capital

MAIN FEATURES OF ELIGIBLE CAPITAL INSTRUMENTS AT THE END OF 2020 (CONTINUED)

		Main features of
	S/N	regulatory capital instrument	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds	Tier 2 capital bonds

	31	Including: If write-down,	Whichever occurs earlier:	Whichever occurs earlier:	Whichever occurs earlier:	Whichever occurs earlier:	Whichever occurs earlier:
		write-down trigger(s)	(i) CBIRC having decided that	(i) CBIRC having decided that	(i) CBIRC having decided that	(i) CBIRC having decided that	(i) CBIRC having decided that
			a write-down is necessary,	a write-down is necessary,	a write-down is necessary,	a write-down is necessary,	a write-down is necessary,
			without which the Issuer	without which the Issuer	without which the Issuer	without which the Issuer	without which the Issuer
			would become non-viable; or	would become non-viable; or	would become non-viable; or	would become non-viable; or	would become non-viable; or
			(ii) any relevant authority	(ii) any relevant authority	(ii) any relevant authority	(ii) any relevant authority	(ii) any relevant authority
			having decided that a public	having decided that a public	having decided that a public	having decided that a public	having decided that a public
			sector injection of capital or	sector injection of capital or	sector injection of capital or	sector injection of capital or	sector injection of capital or
			equivalent support is necessary,	equivalent support is necessary,	equivalent support is necessary,	equivalent support is necessary,	equivalent support is necessary,
			without which the Issuer would	without which the Issuer would	without which the Issuer would	without which the Issuer would	without which the Issuer would
			become non-viable	become non-viable	become non-viable	become non-viable	become non-viable

32	Including: If write-down, full or	Partial or full write-down	Partial or full write-down	Partial or full write-down	Partial or full write-down	Partial or full write-down
		partial

33	Including: If write-down,	Permanent write-down	Permanent write-down	Permanent write-down	Permanent write-down	Permanent write-down
		permanent or temporary

34	Including: If temporary	N/A	N/A	N/A	N/A	N/A
		write-down, description of
		write-up mechanism

35	Position in subordination	Subordinated to depositor and	Subordinated to depositor and	Subordinated to depositor and	Subordinated to depositor and	Subordinated to depositor and
		hierarchy in liquidation (specify	general creditor, but senior	general creditor, but senior	general creditor, but senior	general creditor, but senior	general creditor, but senior
		instrument type immediately	to equity capital, other tier 1	to equity capital, other tier 1	to equity capital, other tier 1	to equity capital, other tier 1	to equity capital, other tier 1
		senior to instrument)	capital instruments and hybrid	capital instruments and hybrid	capital instruments and hybrid	capital instruments and hybrid	capital instruments and hybrid
			capital bonds; pari passu with	capital bonds; pari passu with	capital bonds; pari passu with	capital bonds; pari passu with	capital bonds; pari passu with
			other subordinated debts	other subordinated debts	other subordinated debts	other subordinated debts	other subordinated debts
			that have been issued by the	that have been issued by the	that have been issued by the	that have been issued by the	that have been issued by the
			Issuer and are pari passu with	Issuer and are pari passu with	Issuer and are pari passu with	Issuer and are pari passu with	Issuer and are pari passu with
			the present bonds; and pari	the present bonds; and pari	the present bonds; and pari	the present bonds; and pari	the present bonds; and pari
			passu with other tier 2 capital	passu with other tier 2 capital	passu with other tier 2 capital	passu with other tier 2 capital	passu with other tier 2 capital
			instruments that will possibly	instruments that will possibly	instruments that will possibly	instruments that will possibly	instruments that will possibly
			be issued in the future and are	be issued in the future and are	be issued in the future and are	be issued in the future and are	be issued in the future and are
			pari passu with the present	pari passu with the present	pari passu with the present	pari passu with the present	pari passu with the present
			bonds	bonds	bonds	bonds	bonds

36	Non-compliant transitioned	No	No	No	No	No
		features

		Including: If yes, specify	N/A	N/A	N/A	N/A	N/A
		non-compliant features

Appendixes

Definitions

In this report, unless the context otherwise requires, the following terms shall have the meanings set out below:

Articles of Association	The Articles of Association of Industrial and Commercial Bank of China
	Limited
Capital Regulation	Regulation Governing Capital of Commercial Banks (Provisional) promulgated
	in June 2012
CBIRC	China Banking and Insurance Regulatory Commission
CCXI	China Cheng Xin International Credit Rating Co., Ltd.
China Ratings	China Bond Rating Co., Ltd.
Global Systemically Important Banks/G-SIB	Banks undertaking key functions with global features in the ﬁinancial markets
	as released by the Financial Stability Board
Golden Credit Rating	Golden Credit Rating International Co., Ltd.
ICBC (Argentina)	Industrial and Commercial Bank of China (Argentina) S.A.
ICBC (Asia)	Industrial and Commercial Bank of China (Asia) Limited
ICBC (Canada)	Industrial and Commercial Bank of China (Canada)
ICBC (Europe)	Industrial and Commercial Bank of China (Europe) S.A.
ICBC (Macau)	Industrial and Commercial Bank of China (Macau) Limited
ICBC (Thai)	Industrial and Commercial Bank of China (Thai) Public Company Limited
ICBC International	ICBC International Holdings Limited
ICBC Investment	ICBC Financial Asset Investment Co., Limited
ICBC Leasing	ICBC Financial Leasing Co., Ltd.
ICBC Standard Bank	ICBC Standard Bank PLC
ICBC Wealth Management	ICBC Wealth Management Co., Ltd.
ICBC-AXA	ICBC-AXA Assurance Co., Ltd.
LH Ratings	China Lianhe Credit Rating Co., Ltd.
PBC	The People's Bank of China
Securities and Futures Ordinance of	Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
Hong Kong
Shanghai Brilliance Rating	Shanghai Brilliance Credit Rating & Investors Service Co, Ltd.
SEHK	The Stock Exchange of Hong Kong Limited
SSE	Shanghai Stock Exchange
the Bank/the Group/ICBC	Industrial and Commercial Bank of China Limited; or Industrial and
	Commercial Bank of China Limited and its subsidiaries

中國北京市西城區復興門內大街55號郵編：100140

55 Fuxingmennei Avenue, Xicheng District, Beijing, China	Post Code: 100140
www.icbc.com.cn, www.icbc-ltd.com

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ICBC - Industrial and Commercial Bank of China Limited published this content on 23 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 April 2021 10:29:06 UTC.

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Company Profile

Industrial and Commercial Bank of China Ltd is a China-based company principally engaged in the provision of banking and related financial services. The Bank mainly operates three segments, including Corporate Banking segment, Personal Banking segment and Treasury segment. The Corporate Banking segment provides loan, trade financing, deposit, corporate finance, custody and other related financial products and services to enterprises, government agencies and financial institutions. The Personal Banking segment provides loan, deposit, bank card, personal finance and other related financial products and services to individual customers. Treasury segment includes money markets business, securities investment business, self and valet foreign exchange trading and derivative financial instruments business. The Company conducts its businesses within domestic and overseas markets.

Sector

Banks

Calendar

2024-04-28 - Q1 2024 Earnings Release

Related indices

HONG KONG HANG SENG

More about the company

Income Statement Evolution

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Ratings for Industrial and Commercial Bank of China Limited

Trading Rating

Investor Rating

ESG Refinitiv

C+

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Analysts' Consensus

Sell

Buy

Mean consensus

BUY

Number of Analysts

Last Close Price

3.859 CNY

Average target price

4.429 CNY

Spread / Average Target

+14.77%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

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Equities

1398

CNE1000003G1

Banks

Industrial and Commercial Bank of China : 2020 Capital Adequacy Ratio Report

EPS Revisions