# 01398_22042026_1630_2025 Annual Report

> Source: `01398_22042026_1630_2025 Annual Report.pdf`
> Pages: 295
> Converted: 2026-04-27T17:48:17

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# INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED
(A joint stock limited company incorporated in the People's Republic of China with limited liability)

**Stock Code: 1398**

# 2025 / Annual Report

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# Company Profile

Industrial and Commercial Bank of China was established on 1 January 1984. On 28 October 2005, the Bank was wholly restructured into 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.

The Bank has devoted itself to building a world-class and modern financial institution with Chinese characteristics. The Bank has a high-quality 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 abundant financial products and superior financial services to over 14.00 million corporate customers and over 780 million personal customers around the world. It has served the high-quality development of the economy and society with its own high-quality development. The Bank has been consciously integrating social responsibilities into its development strategy and operation and management activities, and gaining wide recognition in the aspects of serving the manufacturing industry, promoting inclusive finance, backing 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 long-lasting and ever-prosperous 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 and intelligent 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** for the thirteenth consecutive year, and took the **1st place among the Top 500 Banking Brands of Brand Finance** for the tenth consecutive year.

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# Strategic Objective

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, ICBC will adhere to the general working principle of pursuing progress while ensuring stability, fully and faithfully apply the new development philosophy on all fronts, modernize its governance system and capacity, and turn ICBC into a world-class and modern financial institution with Chinese characteristics.

# Strategic Positionings

Act as a leading bank to be the main force in serving the real economy, the ballast stone in maintaining financial stability, a bellwether in building strong financial institutions, and a benchmark bank in fulfilling major responsibilities and core businesses.

# Strategic Significance

Adhere to the guidance of the Party building theory, and promote the "five transformations" of intelligent risk control, modern layout, digital and intelligent driver, integrated services and ecological system.

---

# Mission

## Excellence for You

- Excellent services for clients
- Maximum returns to shareholders
- Real success for employees
- Great contribution to society

# Vision

To build a world-class modern financial institution with Chinese characteristics in all aspects, and become a long-lasting and ever-prosperous bank

# Values

## Integrity Leads to Prosperity

- Integrity
- Humanity
- Prudence
- Innovation
- Excellence

---

# Contents

## Definitions 4
## Major Ranking and Rewards in 2025 5
## Important Notice 6
## Corporate Information 7
## Financial Highlights 8
## Chairman's Statement 12
## President's Statement 16
## Discussion and Analysis 19
### Economic, Financial and Regulatory Environments 19
### Financial Statements Analysis 21
### Business Overview 35
- Corporate Banking 36
- Personal Banking 42
- Asset Management Services 45
- Financial Market Business 48
- FinTech 50
- Internet Finance 53
- Outlet Building and Service Improvement 54
- Human Resources Management, Employees and Institutions 56
- International Operation 59
- Comprehensive Operation and Subsidiary Management 62
- Major Controlled Subsidiaries and Equity Participating Company 67

## Risk Management 69
## Capital Management 86
## Outlook 90
## Hot Topics in the Capital Market 91
## Details of Changes in Share Capital and Shareholding of Substantial Shareholders 97
## Corporate Governance, Environment and Society 106
### Corporate Governance Report 106
### Directors and Senior Management 127
### Environmental and Social Responsibilities 135

## Report of the Board of Directors 140
## Significant Events 145
## Organizational Chart 148
## Auditor's Report and Financial Report 149
## List of Domestic and Overseas Branches and Offices 287

---

# Definitions

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

| Term | Meaning |
| :--- | :--- |
| Articles of Association | The Articles of Association of Industrial and Commercial Bank of China Limited (Version 2025) |
| Bank ICBC (JSC) | Bank ICBC (joint stock company) |
| Capital Rules (Provisional) | Rules on Capital Management of Commercial Banks (Provisional) promulgated in June 2012 |
| Capital Rules | Rules on Capital Management of Commercial Banks promulgated in November 2023 |
| CSRC | China Securities Regulatory Commission |
| Former CBIRC | Former China Banking and Insurance Regulatory Commission |
| HKEX | Hong Kong Exchanges and Clearing Limited |
| Hong Kong Listing Rules | Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited |
| Huijin | Central Huijin Investment Ltd. |
| ICBC (Almaty) | Industrial and Commercial Bank of China (Almaty) Joint Stock Company |
| ICBC (Argentina) | Industrial and Commercial Bank of China (Argentina) S.A.U. |
| ICBC (Asia) | Industrial and Commercial Bank of China (Asia) Limited |
| ICBC (Austria) | ICBC Austria Bank GmbH |
| ICBC (Brasil) | Industrial and Commercial Bank of China (Brasil) S.A. |
| ICBC (Canada) | Industrial and Commercial Bank of China (Canada) |
| ICBC (Europe) | Industrial and Commercial Bank of China (Europe) S.A. |
| ICBC (Indonesia) | PT. Bank ICBC Indonesia |
| ICBC (London) | ICBC (London) PLC |
| ICBC (Macau) | Industrial and Commercial Bank of China (Macau) Limited |
| ICBC (Malaysia) | Industrial and Commercial Bank of China (Malaysia) Berhad |
| ICBC (Mexico) | Industrial and Commercial Bank of China Mexico S.A. |
| ICBC (New Zealand) | Industrial and Commercial Bank of China (New Zealand) Limited |
| ICBC (Peru) | ICBC PERU BANK |
| ICBC (Thai) | Industrial and Commercial Bank of China (Thai) Public Company Limited |
| ICBC (Turkey) | ICBC Turkey Bank Anonim Şirketi |
| ICBC (USA) | Industrial and Commercial Bank of China (USA) NA |
| ICBC UBS Asset Management | ICBC UBS Asset Management Co., Ltd. |
| ICBC International | ICBC International Holdings Limited |
| ICBC Investment | ICBC Financial Asset Investment Co., Ltd. |
| ICBC Investments Argentina | ICBC Investments Argentina S.A. Sociedad Gerente de Fondos Comunes de Inversión |
| 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. |
| IFRSs | The International Financial Reporting Standards promulgated by the International Accounting Standards Board, which comprise the International Accounting Standards |
| Inversora Diagonal | Inversora Diagonal S.A. |
| MOF | Ministry of Finance of the People’s Republic of China |
| NFRA | National Financial Regulatory Administration |
| PBC | The People’s Bank of China |
| PRC GAAP | Accounting Standards for Business Enterprises promulgated by the MOF |
| Securities and Futures Ordinance of Hong Kong | Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) |
| SEHK | The Stock Exchange of Hong Kong Limited |
| SGE | Shanghai Gold Exchange |
| SSE | Shanghai Stock Exchange |
| SSF | National Council for Social Security Fund |
| Standard Bank | Standard Bank Group Limited |
| State Council | The State Council of the People’s Republic of China |
| The Bank/The Group | Industrial and Commercial Bank of China Limited; or Industrial and Commercial Bank of China Limited and its subsidiaries |

---

# Major Ranking and Rewards in 2025

**The Banker**
Ranking the **1st place** Among the Top 1000 World Banks for the thirteenth consecutive year.

**Brand Finance**
Ranking the **1st place** Among the Top 500 Banking Brands for the tenth consecutive year.

**China Banking Association**
Ranking the **1st place** In the GYROSCOPE assessment system among national commercial banks for the fifth consecutive year.

**Forbes**
Ranking the **3rd place** in the Global 2000.

**Fortune**
Ranking the **26th place** in the Global 500.

**The Banker**
**Best** Open Banking Project.

**Euromoney**
- China's **Best** Bank
- China's **Best** Bank for Large Corporates

**Global Finance**
- **Best** Infrastructure Investment Bank in Asia Pacific
- **Best** Consumer Bank in China
- **Best** Domestic Bank for Belt and Road

**The Asset**
- **Best** Bank for Sustainable Finance, China
- **Best** Bond Advisor, China
- Digital Bank **of the Year**, China

**The Asian Banker**
- **Best** Corporate, Investment and Wholesale Bank in Asia Pacific
- **Best** Mega Transaction Bank in China
- **Best** Mega Custodian Bank in China

**China Academy of Information and Communications Technology**
Business Value-Based Financial Digital Transformation Maturity Model (FDMM) Assessment — **Highest-Level Certification Across All Capability Domains**

**China Association for Public Companies**
**Best** Practice of the Board of Directors of Listed Companies

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# Important Notice

The Board of Directors, Directors and Senior Management members of Industrial and Commercial Bank of China Limited undertake that the information in this report contains no false record, misleading statement or material omission, and assume individual and joint and several liability for the authenticity, accuracy and completeness of the information in this report.

The 2025 Annual Report and the Results Announcement of the Bank have been considered and approved at the meeting of the Board of Directors of the Bank held on 27 March 2026. There were 13 directors eligible for attending the meeting, of whom 12 directors attended the meeting in person and 1 director by proxy. Due to other official arrangements, Vice Chairman Liu Jun appointed Chairman Liao Lin in writing to attend the meeting and exercise the voting right on his behalf.

The 2025 financial statements prepared by the Bank in accordance with PRC GAAP and IFRSs have been audited by Ernst & Young Hua Ming LLP and Ernst & Young in accordance with Chinese and International Standards on Auditing respectively, with unqualified auditors’ reports being issued.

As approved at the Second Extraordinary Shareholders’ Meeting of 2025 held on 28 November 2025, the Bank distributed 2025 interim cash dividends for ordinary shares of about RMB50,396 million, or RMB1.414 per ten shares (pre-tax), to the ordinary shareholders whose names appeared on the share register after the close of market on 12 December 2025. The Board of Directors of the Bank proposed distributing 2025 year-end cash dividends for ordinary shares of about RMB60,197 million, or RMB1.689 per ten shares (pre-tax). The Bank will distribute cash dividends of about RMB110,593 million, or RMB3.103 per ten shares (pre-tax) for the whole year. The distribution plan will be submitted to the Shareholders’ Meeting of the Bank for approval. The Bank did not convert capital reserve to share capital.

**The Board of Directors of Industrial and Commercial Bank of China Limited**
27 March 2026

Mr. Liao Lin, Legal Representative of the Bank, Mr. Liu Jun, Person in charge of finance of the Bank, and Mr. Xu Zhisheng, Person in charge of Finance and Accounting Department of the Bank, hereby warrant that the financial statements contained in the Annual Report are authentic, accurate and complete.

The report contains forward-looking statements on the Bank’s financial position, business performance and development. The statements are 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.

The Bank is primarily exposed to credit risk, market risk, interest rate risk in the banking book, liquidity risk, operational risk, reputational risk, country risk, strategic risk, and information technology and cyber security risk. The Bank has actively adopted measures to effectively manage various types of risks. Please refer to the section headed “Discussion and Analysis — Risk Management” for detailed information.

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

---

# Corporate Information

## Legal name in Chinese
中國工商銀行股份有限公司(“中國工商銀行”)

## Legal name in English
INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED (“ICBC”)

## Legal Representative
Liao Lin

## Registered address and office address
55 Fuxingmennei Avenue, Xicheng District, Beijing, China
**Postal code:** 100140
**Telephone:** 86-10-66106114
**Business enquiry and complaint hotline:** 86-95588
**Website:** www.icbc.com.cn, www.icbc-ltd.com

## Principal place of business in Hong Kong SAR, China
33/F, ICBC Tower, 3 Garden Road, Central, Hong Kong SAR, China

## Authorized representatives
Liu Jun and Tian Fenglin

## Board Secretary and Company Secretary
**Tian Fenglin**
**Address:** 55 Fuxingmennei Avenue, Xicheng District, Beijing, China
**Telephone:** 86-10-66108608
**Facsimile:** 86-10-66107420
**E-mail:** ir@icbc.com.cn

## Selected newspaper for information disclosure
China Securities Journal, Shanghai Securities News, Securities Times, Economic Information Daily

## Website of the SSE for disclosure of the annual report in respect of A shares
www.sse.com.cn

## The “HKEXnews” website of the HKEX for disclosure of the annual report in respect of H shares
www.hkexnews.hk

## Legal Advisors
### Chinese mainland
**King & Wood**
17-18/F, East Tower, World Financial Center, 1 East 3rd Ring Middle Road, Chaoyang District, Beijing, China

**Haiwen & Partners**
20/F, Fortune Financial Center, 5 East 3rd Ring Middle Road, Chaoyang District, Beijing, China

### Hong Kong SAR, China
**DLA Piper**
25th Floor, Three Exchange Square, 8 Connaught Place, Central, Hong Kong SAR, China

**Linklaters LLP**
11th Floor, Alexandra House, Chater Road, Central, Hong Kong SAR, China

## Share Registrars
### A Share
China Securities Depository and Clearing Corporation Limited, Shanghai Branch
188 Yanggao South Road, Pudong New Area, Shanghai, China
**Telephone:** 86-4008058058

### H Share
Computershare Hong Kong Investor Services Limited
17M Floor, Hopewell Center, 183 Queen’s Road East, Wanchai, Hong Kong SAR, China
**Telephone:** 852-28628555
**Facsimile:** 852-28650990

## Location where copies of this annual report are kept
Board of Directors’ Office of the Bank

## Place where shares are listed, and their names and codes
### A Share
**Shanghai Stock Exchange**
**Stock name:** 工商銀行
**Stock code:** 601398

### H Share
**The Stock Exchange of Hong Kong Limited**
**Stock name:** ICBC
**Stock code:** 1398

### Domestic Preference Share
**Shanghai Stock Exchange**
**Stock name:** 工行優 1
**Stock code:** 360011

**Stock name:** 工行優 2
**Stock code:** 360036

## Name and office address of Auditors
### Domestic Auditor
Ernst & Young Hua Ming LLP
Level 17, Ernst & Young Tower, Oriental Plaza, 1 East Chang An Avenue, Dongcheng District, Beijing, China
**CPAs (Practicing):** Yan Shengwei and Shi Yuxuan

### International Auditor
Ernst & Young
27/F, One Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong SAR, China

---

# Financial Highlights

## Net profit
Unit: RMB millions

| 2023 | 2024 | 2025 |
| :--- | :--- | :--- |
| 365,116 | 366,946 | 370,766 |

## Total assets
Unit: RMB millions

| 2023 | 2024 | 2025 |
| :--- | :--- | :--- |
| 44,697,079 | 48,821,746 | 53,477,773 |

## Total loans and advances to customers
Unit: RMB millions

| 2023 | 2024 | 2025 |
| :--- | :--- | :--- |
| 26,086,482 | 28,372,229 | 30,506,114 |

## Due to customers
Unit: RMB millions

| 2023 | 2024 | 2025 |
| :--- | :--- | :--- |
| 33,521,174 | 34,836,973 | 37,311,778 |

## Non-performing loans ("NPLs") ratio
Unit: %

| 2023 | 2024 | 2025 |
| :--- | :--- | :--- |
| 1.36% | 1.34% | 1.31% |

## Capital adequacy ratio
Unit: %

| 2023 | 2024 | 2025 |
| :--- | :--- | :--- |
| 19.10% | 19.39% | 18.76% |

## Cost-to-income ratio
Unit: %

| 2023 | 2024 | 2025 |
| :--- | :--- | :--- |
| 28.28% | 29.43% | 29.48% |

## Allowance to NPLs
Unit: %

| 2023 | 2024 | 2025 |
| :--- | :--- | :--- |
| 213.97% | 214.91% | 213.60% |

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# Financial Highlights

- **Corporate customers:** 14,745.9 thousand
- **Personal customers:** 782 million
- **Business outlets:** 15,434
- **Personal mobile banking customers:** 630 million
- **Green loans:** with balance of exceeding RMB 6.7 trillion
- **Loans invested in the manufacturing industry:** with balance of exceeding RMB 5.2 trillion
- **Agriculture-related loans:** with balance of RMB 5.1 trillion
- **Sci-tech loans:** with balance of RMB 6 trillion

Financial data and indicators in this annual report are prepared in accordance with IFRSs and, unless otherwise specified, are consolidated amounts of the Bank and its subsidiaries and denominated in Renminbi.

## Financial Data

| Annual operating results (in RMB millions) | 2025 | 2024 | 2023 | 2022 | 2021 |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Net interest income | 635,126 | 637,405 | 655,013 | 691,985 | 690,680 |
| Net fee and commission income | 111,171 | 109,397 | 119,357 | 129,325 | 133,024 |
| Operating income | 801,395 | 786,126 | 806,458 | 842,352 | 860,880 |
| Operating expenses | 246,874 | 242,155 | 238,698 | 239,351 | 236,227 |
| Impairment losses on assets(1) | 134,860 | 126,663 | 150,816 | 182,677 | 202,623 |
| Operating profit | 419,661 | 417,308 | 416,944 | 420,324 | 422,030 |
| Profit before taxation | 424,435 | 421,827 | 421,966 | 424,720 | 424,899 |
| Net profit | 370,766 | 366,946 | 365,116 | 362,110 | 350,216 |
| Net profit attributable to equity holders of the parent company | 368,562 | 365,863 | 363,993 | 361,132 | 348,338 |
| Net cash flows from operating activities | 1,890,530 | 579,194 | 1,417,002 | 1,404,657 | 360,882 |

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# Financial Highlights

## Financial Data (continued)

| As at the end of reporting period (in RMB millions) | 2025 | 2024 | 2023 | 2022 | 2021 |
| :--- | :--- | :--- | :--- | :--- | :--- |
| **Total assets** | 53,477,773 | 48,821,746 | 44,697,079 | 39,610,146 | 35,171,383 |
| **Total loans and advances to customers** | 30,506,114 | 28,372,229 | 26,086,482 | 23,210,376 | 20,667,245 |
| Corporate loans | 18,841,671 | 17,482,223 | 16,145,204 | 13,826,966 | 12,194,706 |
| Personal loans | 9,002,636 | 8,957,720 | 8,653,621 | 8,234,625 | 7,944,781 |
| Discounted bills | 2,661,807 | 1,932,286 | 1,287,657 | 1,148,785 | 527,758 |
| Allowance for impairment losses on loans<sup>(2)</sup> | 852,274 | 815,497 | 756,391 | 672,762 | 603,983 |
| **Investment** | 16,907,415 | 14,153,576 | 11,849,668 | 10,533,702 | 9,257,760 |
| **Total liabilities** | 49,205,749 | 44,834,480 | 40,920,491 | 36,094,727 | 31,896,125 |
| **Due to customers** | 37,311,778 | 34,836,973 | 33,521,174 | 29,870,491 | 26,441,774 |
| Corporate deposits | 16,350,593 | 15,507,405 | 16,209,928 | 14,671,154 | 13,331,463 |
| Personal deposits | 20,204,619 | 18,541,510 | 16,565,568 | 14,545,306 | 12,497,968 |
| Other deposits | 251,921 | 228,721 | 210,185 | 199,465 | 250,349 |
| Accrued interest | 504,645 | 559,337 | 535,493 | 454,566 | 361,994 |
| **Due to banks and other financial institutions** | 5,103,247 | 4,590,965 | 3,369,858 | 3,187,712 | 2,921,029 |
| **Equity attributable to equity holders of the parent company** | 4,244,259 | 3,969,841 | 3,756,887 | 3,496,109 | 3,257,755 |
| **Share capital** | 356,407 | 356,407 | 356,407 | 356,407 | 356,407 |
| Net common equity tier 1 capital<sup>(3)</sup> | 3,837,149 | 3,624,342 | 3,381,941 | 3,121,080 | 2,886,378 |
| Net tier 1 capital<sup>(3)</sup> | 4,222,676 | 3,949,453 | 3,736,919 | 3,475,995 | 3,241,364 |
| Net capital base<sup>(3)</sup> | 5,302,796 | 4,986,531 | 4,707,100 | 4,281,079 | 3,909,669 |
| Risk-weighted assets<sup>(3)</sup> | 28,269,948 | 25,710,855 | 24,641,631 | 22,225,272 | 21,690,349 |
| **Per share data (in RMB yuan)** | | | | | |
| Net asset value per share<sup>(4)</sup> | 10.83 | 10.23 | 9.55 | 8.82 | 8.15 |
| Basic earnings per share<sup>(5)</sup> | 1.00 | 0.98 | 0.98 | 0.97 | 0.95 |
| Diluted earnings per share<sup>(5)</sup> | 1.00 | 0.98 | 0.98 | 0.97 | 0.95 |

| Credit rating | 2025 | 2024 | 2023 | 2022 | 2021 |
| :--- | :--- | :--- | :--- | :--- | :--- |
| S&P<sup>(6)</sup> | A | A | A | A | A |
| Moody's<sup>(6)</sup> | A1 | A1 | A1 | A1 | A1 |

**Notes:**

- (1) Calculated by adding credit impairment losses and impairment losses on other assets.
- (2) Calculated by adding allowance for impairment losses on loans and advances to customers measured at amortised cost with allowance for impairment losses on loans and advances to customers measured at fair value through other comprehensive income.
- (3) Calculated in accordance with the Capital Rules as at the end of 2025 and for the comparable period of 2024. Calculated in accordance with the Capital Rules (Provisional) for the comparable periods of 2023, 2022 and 2021.
- (4) Calculated by dividing equity attributable to equity holders of the parent company after deduction of other equity instruments at the end of the reporting period by the total number of ordinary shares at the end of the reporting period.
- (5) Calculated in accordance with the Rules for the Compilation and Submission of Information Disclosure by Companies that Offer Securities to the Public No. 9 — Calculation and Disclosure of Return on Net Assets and Earnings per Share (Revision 2010) issued by the CSRC.
- (6) The rating results are in the form of "long-term foreign currency deposits rating".

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# Financial Highlights

## Financial Indicators

| | 2025 | 2024 | 2023 | 2022 | 2021 |
| :--- | :---: | :---: | :---: | :---: | :---: |
| **Profitability (%)** | | | | | |
| Return on average total assets⁽¹⁾ | 0.72 | 0.78 | 0.87 | 0.97 | 1.02 |
| Return on weighted average equity⁽²⁾ | 9.45 | 9.88 | 10.66 | 11.45 | 12.15 |
| Net interest spread⁽³⁾ | 1.15 | 1.23 | 1.41 | 1.72 | 1.92 |
| Net interest margin⁽⁴⁾ | 1.28 | 1.42 | 1.61 | 1.92 | 2.11 |
| Return on risk-weighted assets⁽⁵⁾ | 1.37 | 1.46 | 1.56 | 1.65 | 1.68 |
| Ratio of net fee and commission income to operating income | 13.87 | 13.92 | 14.80 | 15.35 | 15.45 |
| Cost-to-income ratio⁽⁶⁾ | 29.48 | 29.43 | 28.28 | 27.22 | 26.36 |
| **Asset quality (%)** | | | | | |
| Non-performing loans (“NPLs”) ratio⁽⁷⁾ | 1.31 | 1.34 | 1.36 | 1.38 | 1.42 |
| Allowance to NPLs⁽⁸⁾ | 213.60 | 214.91 | 213.97 | 209.47 | 205.84 |
| Allowance to total loans ratio⁽⁹⁾ | 2.79 | 2.87 | 2.90 | 2.90 | 2.92 |
| **Capital adequacy (%)** | | | | | |
| Common equity tier 1 capital adequacy ratio⁽¹⁰⁾ | 13.57 | 14.10 | 13.72 | 14.04 | 13.31 |
| Tier 1 capital adequacy ratio⁽¹⁰⁾ | 14.94 | 15.36 | 15.17 | 15.64 | 14.94 |
| Capital adequacy ratio⁽¹⁰⁾ | 18.76 | 19.39 | 19.10 | 19.26 | 18.02 |
| Total equity to total assets ratio | 7.99 | 8.17 | 8.45 | 8.88 | 9.31 |
| Risk-weighted assets to total assets ratio | 52.86 | 52.66 | 55.13 | 56.11 | 61.67 |

**Notes:**
(1) Calculated by dividing net profit by the average balance of total assets at the beginning and at the end of the reporting period.
(2) Calculated in accordance with the Rules for the Compilation and Submission of Information Disclosure by Companies that Offer Securities to the Public No. 9 — Calculation and Disclosure of Return on Net Assets and Earnings per Share (Revision 2010) issued by the CSRC.
(3) Calculated as the spread between average yield on interest-generating assets and average cost of interest-bearing liabilities.
(4) Calculated by dividing net interest income by the average balance of interest-generating assets.
(5) Calculated by dividing net profit by the average balance of risk-weighted assets at the beginning and at the end of the reporting period.
(6) Calculated by dividing operating expenses (less taxes and surcharges) by operating income.
(7) Calculated by dividing the balance of NPLs by total balance of loans and advances to customers.
(8) Calculated by dividing allowance for impairment losses on loans by total balance of NPLs.
(9) Calculated by dividing allowance for impairment losses on loans by total balance of loans and advances to customers.
(10) Calculated in accordance with the Capital Rules as at the end of 2025 and for the comparable period of 2024. Calculated in accordance with the Capital Rules (Provisional) for the comparable periods of 2023, 2022 and 2021.

## Quarterly Financial Data

| (In RMB millions) | 2025 Q1 | 2025 Q2 | 2025 Q3 | 2025 Q4 | 2024 Q1 | 2024 Q2 | 2024 Q3 | 2024 Q4 |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| Operating income | 204,688 | 204,394 | 201,886 | 190,427 | 210,165 | 191,834 | 197,108 | 187,019 |
| Net profit attributable to equity holders of the parent company | 84,156 | 83,947 | 101,805 | 98,654 | 87,653 | 82,814 | 98,558 | 96,838 |
| Net cash flows from operating activities | 942,479 | (156,162) | 762,890 | 341,323 | 1,367,252 | (1,340,269) | 1,050,265 | (498,054) |

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# Chairman’s Statement

Chairman **Liao Lin**

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# Chairman's Statement

The year 2025 was truly an extraordinary year. Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we firmly acted on the decisions and plans of the Central Committee of the Communist Party of China ("CPC" or the "Party") and baked in the political and people-oriented nature of financial work. We fully implemented the major financial tasks of guarding against risks, strengthening supervision, and promoting high-quality development. We adhered to the guidance of the Party building theory and remained steadfast in the "five transformations". Over the past year, ICBC managed to fulfill its major objectives and tasks with sustained momentum of innovation-driven and high-quality development.

**Throughout the year, we forged ahead against headwinds in a more coordinated and balanced way, further burnishing the underlying feature of prudence.** Facing a grave and complex landscape, we attached greater importance to the balance among value creation, market position, risk control and capital constraints. Our operating income, profit, and quality remained robust, showing a remarkable rise in both quantity and quality. **In terms of quantity,** the Bank's total assets crossed a new threshold of RMB50 trillion to reach RMB53.48 trillion. Net profit rose to RMB370,766 million, giving the Bank a leading edge over its peers. Operating income exceeded RMB800.0 billion again, realizing a positive growth. Specifically, non-interest income increased by 11.8%, and its share in operating income rose by 1.8 percentage points year on year. **In terms of quality,** NPL ratio dropped by 3BP year on year, capital adequacy ratio remained relatively high and various types of risks were generally controllable. Improvements in these core operating indicators have demonstrated the smooth transition from traditional growth drivers to new ones, enhanced resilience and vitality of development and greater value created for shareholders. In addition to the interim dividends of about RMB50,396 million, we distributed approximately RMB60,197 million of dividends at the end of the year.

**Throughout the year, we shouldered our mission and redoubled our efforts to serve the real economy as a responsible large bank.** The economy and finance are interdependent and should grow and thrive together. With the aim of contributing to steady growth of the national economy, we worked hard to ensure both development and security. We proactively aligned with state policies to help keep employment, businesses, markets and expectations stable, better playing our role as the main force in serving the real economy and the ballast stone in maintaining financial stability. **We fully served high-quality development.** New loans and bond investments totaled RMB4.8 trillion for the year, creating a new record high. We took solid steps for the "Five Priorities" of technology finance, green finance, inclusive finance, pension finance and digital finance, as evidenced by the faster-than-average growth rates of loans in each field. Our major responsibilities and core businesses played a greater role in supporting the development of new quality productive forces in light of local conditions. Loans to manufacturing exceeded RMB5 trillion, and sci-tech loans amounted to RMB6 trillion, both leading the industry. AIC equity investments achieved full coverage of pilot areas. We further implemented the coordinated regional development strategy, seeing fast-growing loans in key regions including the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area, and effectively supporting the high-standard and high-quality construction of the Xiongan New Area. We endeavored to expand domestic demand and improve the people's wellbeing, with personal consumption loans growing by 18.5%. **We made every effort to advance high-level opening-up.** With a focus on high-quality Belt and Road cooperation, we further integrated our operations worldwide. With a broader network of 12 RMB clearing banks, our overseas clearing banks registered an increase of 15% in the RMB clearing volume. We better leveraged such platforms as the BRICS Business Council, China-Europe Business Council and the Belt and Road Bankers Roundtable mechanism to engage in international financial governance, taking the lead in voicing optimism on China's economy. **We made every effort to ensure high-level security.** Firmly upholding a holistic approach to national security, we continued to enhance the enterprise risk management system, worked harder to resolve risks in key areas, completed the business integration of Bank of Jinzhou, and shared risk management technologies with small and medium-sized financial institutions, so as to jointly enhance risk prevention and control.

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# Chairman’s Statement

**Throughout the year, we deepened reforms, accelerated innovation and transformation, and moved forward with even stronger momentum and vitality.** Focusing on the “modern bank” goal, we remained on track for the “five transformations”, made improvements in the course of implementation, and explored “ICBC solutions” to building a powerful financial institution. **Intelligent risk control was enhanced on all fronts.** The enterprise-level intelligent risk management platform has been applied across all domestic branches, shifting risk prevention and control from manual operations to technology-driven intelligent operations. **Modern layout was further improved.** Loans for core sectors of green and digital economy maintained double-digit growth, with the scale remaining at the top of the market. Inclusive loans increased by 22.8%, with managed pension funds ranking first by size in the market. New financial infrastructure services such as clearing, settlement, payment, and custody each had their own highlights. Emerging businesses including investment banking, asset management, wealth management, and trading all made breakthroughs. **Digital and intelligent driver became even stronger.** The “AI+” Action Plan was carried out, with AI digital employees handling the workloads of 55 thousand persons a year. We had the most monthly active users (“MAUs”) of mobile banking in the industry and became the first financial institution to be certified for the highest level of the Financial Digital Transformation Maturity Model (FDMM) Assessment. **Comprehensive services saw higher quality and efficiency.** We improved comprehensive financial solutions to more systematically meet the different financial needs of customers. With stronger efforts in place for consumer protection, the customer satisfaction was further enhanced. **The biological system was built at a faster pace.** We further advanced the GBC+ projects, staying ahead of our peers by number of either new customers, either personal or corporate customers. The sources of funding became more stable, with the growth of due to customers rising by 3.2 percentage points year on year.

**Throughout the year, we adhered to the guidance of the Party building theory and worked faster to improve corporate governance, further cementing the foundation for development.** We fully implemented the “Two Persistences (upholding the Party’s leadership over state-owned enterprises (“SOEs”) must be persisted with, and establishing a modern enterprise system as the direction of SOE reform must be persisted with)”, strengthening the Party leadership in the process of improving corporate governance. We also enhanced the quality of Party building across the board, making new advances in the “Clean ICBC” initiative. **Our political capacity was enhanced.** We made solid progress in studying and implementing the central Party leadership’s eight-point decision on improving work conduct. Regular and long-term efforts were made for the rectification following the disciplinary inspection by the CPC Central Committee. We further strengthened the full and rigorous Party self-governance and strict governance of the Bank, firmly advocating “establishing Comrade Xi Jinping’s core position on the Party Central Committee and in the Party as a whole and establishing the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era”, and faithfully “upholding Comrade Xi Jinping’s core position on the Party Central Committee and in the Party as a whole and upholding the Central Committee’s authority and its centralized, unified leadership”. **Our governance system was improved.** We amended the Articles of Association and completed the Board of Supervisors reform, significantly enhancing the stability and effectiveness of our corporate governance. **Our team building was strengthened.** We improved the incentives and constraints mechanism, carried forward the financial culture with Chinese characteristics, and inspired employees’ motivation, initiative and creativity more effectively.

With our objectives and tasks for 2025 accomplished, the 14ᵗʰ Five-Year Plan of the Bank was brought to a successful conclusion. Over the past five years, the Bank persistently led the global market by key indicators including assets, capital, deposits, loans and brand value, increasingly highlighted our features of strong core businesses, high quality and efficiency, remarkable contributions and stable operation. New advances were made in terms of value creation capability, market competitiveness, market influence and risk management capacity. Last year, the Bank was lifted to Bucket 3 of the global systemically important banks (G-SIBs), making solid new strides in building a world-class and modern financial institution with Chinese characteristics.

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# Chairman's Statement

Proud of our past achievements, we will open up even more promising prospects. At its fourth plenary session, the 20th CPC Central Committee set out an inspiring blueprint for China's development over the next five years. The mission of serving Chinese modernization and building China into a financial powerhouse is not only a heavy responsibility of our times, but also a rare, historic opportunity for all of us at ICBC. Focusing on building a world-class and modern financial institution with Chinese characteristics, the Bank will stay true to its development positioning as the main force in serving the real economy, the ballast stone in maintaining financial stability, a bellwether in building strong financial institutions and a benchmark bank in fulfilling major responsibilities and core businesses. We will adhere to the guidance of the Party building theory and push ahead with the "five transformations", make unremitting efforts to build the Bank into a first-class bank, leading bank, clean bank, and modern bank unswervingly following the path of financial development with Chinese characteristics.

Large boats carry heavy loads, and fine horses gallop long distances. In 2026, the Bank will remain guided by the Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and fully and faithfully apply the new development philosophy on all fronts. We will uphold and implement the right view on performance evaluation, and strive to improve quality and performance under the overarching principle of seeking progress while maintaining stability. By cultivating our internal capabilities and taking concrete actions to strive for the lead, we will develop new strengths and exhibit new accomplishments. Only in this way can we make a good start to the 15th Five-Year Plan period and contribute more to building our country into a financial powerhouse and advancing the Chinese modernization.

**Chairman: Liao Lin**
27 March 2026

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# President's Statement

President **Liu Jun**

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# President's Statement

The year 2025 marks the end of the 14th Five-Year Plan. Over the past year, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the Bank has adhered to the guidance of the Party building theory and the development path of the "five transformations". It made concerted efforts and took solid steps to accomplish the business objectives and tasks assigned by the Board of Directors with high quality. Our operation has demonstrated an innovation-driven and quality-oriented momentum, marking a meaningful note to the implementation of the 14th Five-Year Plan. As at the end of 2025, the Group's total assets stood at RMB53.48 trillion, representing an increase of 9.5%; net profit was RMB370,766 million, operating income was RMB801,395 million, and net fee and commission income was RMB111,171 million. All three core profitability indicators achieved positive growth simultaneously, and the endogenous momentum of the income structure saw a systematic improvement. By examining our operating figures through the market, we have come to realize more profoundly that to operate the modern commercial bank successfully, we must anchor value creation more deeply and firmly.

## Calibrating the Profit Equation to Seek Optimal Solutions amid Variable Restructuring

Operating income serves as the primary yardstick for measuring the performance of commercial banks. Over the past year, we consistently conveyed the requirement that stabilizing revenue hinges on stabilizing net interest margin ("NIM"). We attached importance to balancing costs and returns, strengthened the value connotation of profitable assets and liabilities, and guided the Bank to build a solid and robust balance sheet.

In asset allocation, we aligned our credit structure with the industrial and demand structures of the state and regions, targeting our efforts to serve the real economy. The Group's total loans and advances to customers reached RMB30.5 trillion, representing an increase of 7.5%. Support for key fields including the "Five Priorities" of technology finance, green finance, inclusive finance, pension finance and digital finance continued to grow, with loans to manufacturing, inclusive finance, and sci-tech innovation rising by 19.4%, 22.8%, and 19.9%, respectively. In liability operations, we opposed "rat race" competition, remained firm in refraining from "price wars", and steadily promoted sustainable growth in deposits. The average cost of deposits stood at 1.36%, down by 36 basis points, effectively offsetting downward pressure on loan yields and significantly narrowing the decline in NIM. Personal financial assets under management amounted to RMB25.37 trillion, with a growth rate leading the market.

## Expanding the Growth Frontier to Chart a New Course of Development with Global Operations and Integrated Services

If domestic branches represent the "core production zone" that delivers stable and sustained impetus for the Group's development, then global operations and integrated services are our newly pioneered "growth poles", injecting additional momentum to address the constraints of low interest margins and forge value resilience that transcends economic cycles.

To advance RMB internationalization, ICBC has deeply integrated into the global financial landscape. The Bank has been authorized to serve as the RMB clearing bank in Türkiye, bringing the total number of our RMB clearing banks to 12. The "ICBC e Trade" service system for new forms of foreign trade was established to support cross-border e-commerce collection for small and micro enterprises through collaboration between domestic and overseas branches; annual cross-border RMB business volume exceeded RMB10 trillion. We energetically advanced integrated services, accelerated the development of wealth management, asset custody, investment banking, financial markets and other emerging businesses, and explored comprehensive financial solutions. We introduced the institution-specific planning and dashboard to strengthen the strategy management, and continued to unlock the value multiplier effect across all business segments. The Group's overseas institutions and domestic subsidiaries accounted for 10.1% of total operating income, representing an increase of 0.5 percentage points. A multi-pillar, matrix-driven growth structure has gradually taken shape.

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# President's Statement

## Focusing on Asset Quality to Establish a Stable Anchor for Value Creation

The growth of operating income determines how fast a bank can run, while asset quality determines how far it can go in the long run. We firmly implemented the holistic view of national security, continuously improved the enterprise risk management system, and enhanced security through development while pursuing development on a secure basis. We strengthened direct management of risky assets, comprehensively aligned with the financing coordination mechanism for urban real estate and work arrangements for ensuring housing delivery, and supported key provinces in defusing debt risks through province-specific strategies. The Bank recorded an NPL ratio of 1.31%, down by 3 basis points, an allowance to NPLs of 213.60%, and a capital adequacy ratio of 18.76%, reflecting sufficient risk resilience. Drawing on advanced international experience, we accelerated the development of a compliance center for preventing financial crimes, and continuously enhanced our anti-money laundering capabilities.

The ultimate goal of risk management is to protect the interests of customers. We advanced the development of a “Greater Consumer Protection” system in depth. The number of personal customer complaints dropped by 22.60%, reaching the lowest level in recent years. We promoted precise anti-fraud measures and swift account unlocking to effectively safeguard people’s money. Unwavering prudence and resolve have enabled us to embark on a new journey with greater composure.

Looking back at the 14th Five-Year Plan period, every step ICBC has taken responds to the same proposition: to run the marathon of banking operations well in a complex environment. Externally, we consolidated our leading position, pursued progress while ensuring stability, promoted stability through progress, and maintained a rational growth pace and efficiency. Internally, we explored a management model where business lines take primary responsibility for construction, branches take primary responsibility for operations, and both share accountability, directing more incentives and resources to the front office, grassroots and frontlines. These efforts have evolved into a clear consensus: advancing the high-quality development solidly is not simply to pursue scale expansion, but to highlight customer demand as an orientation, create value through services, and enhance our competitiveness.

Looking ahead to the 15th Five-Year Plan period, the Party Central Committee has outlined grand blueprints including building a financial powerhouse. The Bank’s Party Committee and the Board of Directors have laid out strategic plans, setting the course for our development in the next five years. With goals set, confidence is assured. The task of the Management is to act as a good doer, executor and pragmatist, get every necessary task done solidly and properly, and provide the market with the most straightforward and powerful response.

**We adhered to serving the broadest customer base and offering a full spectrum of products.** Serving the broadest customer base requires targeted business strategies and service solutions for each customer group. Offering a full spectrum of products calls for a comprehensive and dynamic product factory, targeting untapped blue-ocean areas, and proactively aligning with market demand. When products and customers are precisely matched, incremental growth potential will naturally emerge. The market is the truest measure of value creation. Only by looking outward and dynamically calibrating our assessment can we develop the right products, deliver targeted services, and measure performance accurately.

**We upheld closed-loop management and scientific quantification.** We let true data speak, conducted sound input-output analysis, and carried out continuous post-implementation evaluations to form a complete accountability chain from decision-making to execution, and from implementation to feedback. Every task is unified with a clear timetable, concrete deliverables and responsible persons, making performance indicators traceable, decomposable and verifiable, so as to clearly define the boundaries of rights and responsibilities. We believe, with the wider and deeper application of digital technologies, we will realize more accurate and stronger objectives and implementation, and implement the requirements of high-quality development on a more substantial and solid basis.

In 2026, we will stay focused on our goals, act with dedication, and steadfastly follow the path of financial development with Chinese characteristics. With more professional services and higher-quality development outcomes, we will deliver sustainable returns to shareholders and make greater contributions to the high-quality development of China’s financial industry.

**President: Liu Jun**
27 March 2026

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# Discussion and Analysis

## Economic, Financial and Regulatory Environments

In 2025, the world economy demonstrated certain resilience under the backdrop of easing inflation and a loosening monetary environment, but growth momentum remained weak, with frequent geopolitical conflicts in multiple regions and escalating risks of trade and investment fragmentation. China implemented its macro policies in a more proactive and effective manner, continuously expanded domestic demand, optimized supply structures and kept economic performance generally stable, moving towards higher-quality and more innovative economic growth and achieving new progress in high-quality development. In 2025, China’s gross domestic product (GDP) and value added of industrial enterprises above designated size rose by 5.0% and 5.9% year on year, respectively, while its fixed asset investment (excluding rural households) declined by 3.8% year on year. Investment in the manufacturing sector sustained growth. Retail sales of consumer goods and total imports and exports of trade in goods (RMB-denominated) rose by 3.7% and 3.8% year on year, respectively. The consumer price index (CPI) remained flat year on year.

The fiscal policy became more proactive. Greater support was provided to “Major Strategies and Key Fields”, with the “Renewal and Trade-in” policy implemented on a broader scale, as well as policy tools to support consumption and the services sector, comprehensively expanding domestic demand. Significant increases were made in basic research investment, and efforts were intensified to develop new quality productive forces. Special government bonds were issued to support the four state-owned large commercial banks in replenishing their common equity tier 1 capital, promoting high-quality development of the banking sector. A range of measures was taken to resolve existing implicit debts, and dedicated bonds were introduced to support land reserve and the purchase of commodity housing stock for use as government-subsidized housing, helping to prevent and resolve risks in key areas.

The monetary policy was appropriately accommodative. Based on the continued effectiveness of existing monetary policies, the PBC introduced a new raft of monetary policy measures. In quantitative terms, the reserve requirement ratio (RRR) was cut by 0.5 percentage points to maintain reasonably abundant liquidity. In pricing terms, the interest rates of the 7-day reverse repo operation, the structural monetary policy instruments, and the personal housing provident fund loans were lowered, driving the 1-year and over-5-year loan prime rates (“LPR”) down by 0.1 percentage points each, respectively, thereby reducing the overall social financing cost. The monetary policy framework was improved to promote a more stable operation of market interest rates around the policy interest rate. In structural terms, a risk-sharing instrument for sci-tech innovation bonds and the re-lending facility for service consumption and elderly care were established, with enhanced support for sci-tech innovation, consumption stimulation, micro and small enterprises, and stable foreign trade. The two monetary policy instruments supporting the capital market, i.e., the Securities, Funds, and Insurance Companies Swap Facility (SFISF), as well as central bank lending for share buybacks and shareholding increases, were further optimized.

The total amount of financial resources grew reasonably. As at the end of 2025, the balance of broad money supply (M2) was RMB340.29 trillion, up 8.5% year on year. The outstanding aggregate financing to the real economy (AFRE) stood at RMB442.12 trillion, up 8.3% year on year. The outstanding RMB loans reached RMB271.91 trillion, increasing by 6.4% year on year. The balance of RMB deposits amounted to RMB328.64 trillion, up 8.7% year on year. The total issuance amount of various bonds in the bond market reached RMB88.98 trillion, up 11.8% year on year. The Shanghai Composite Index and the Shenzhen Component Index rose by 18.4% and 29.9% respectively over the end of last year. The RMB exchange rate remained basically stable at a reasonable and balanced level. The central parity of RMB against the USD was RMB7.0288, an appreciation of 2.3% from the end of last year.

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# Discussion and Analysis

Financial regulators adhered to the core tasks of risk prevention, strengthening regulation, and promoting high-quality development. In risk prevention, commercial banks were urged to strengthen market risk management; a market stabilization mechanism with Chinese characteristics was promoted to guide long-term funds into the market; a one-time credit restoration policy was implemented to support individuals in efficiently and conveniently rebuilding their credit records. In strengthening regulation, the policy framework, statistical system, and evaluation mechanism for the “Five Priorities” of financial work were improved; commercial bank operations such as custody business, merger and acquisition loans, and agency sales were further standardized, and oversight of brokerage activities in interbank markets was strengthened, promoting sound and stable bank operations. In promoting high-quality development, implementation plans for the “Five Priorities” of banking sector high-quality development were formulated; a “Sci-Tech Board” was launched in the bond market to enhance its alignment with sci-tech innovation; the policy arrangements for cross-border RMB usage were improved, facilitating foreign exchange settlement, and the institutional opening of financial markets was steadily advanced.

Total assets of commercial banks kept on growing, with overall stable credit asset quality and sufficient risk offsetting capacity on the whole. As at the end of 2025, the RMB and foreign-currency assets of commercial banks totaled RMB414.79 trillion, up 9.0% year on year. The balance of NPLs of commercial banks reached RMB3.50 trillion, with an NPL ratio of 1.50% and allowance to NPLs of 205.21%. The capital adequacy ratio was 15.46%.

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# Discussion and Analysis

## Financial Statements Analysis

- **21 Income Statement Analysis**
    - Net Interest Income
    - Interest Income
    - Interest Expense
    - Non-interest Income
    - Operating Expenses
    - Impairment Losses
    - Income Tax Expense
    - Summary of Geographical Segment Information
- **27 Balance Sheet Analysis**
    - Assets Deployment
    - Liabilities
    - Shareholders’ Equity
    - Off-balance Sheet Items
- **34 Analysis on Statement of Cash Flows**
- **34 Changes of Major Accounting Policies**
- **34 Description of Significant Accounting Estimates**
- **34 Reconciliation of Differences between the Financial Statements Prepared under PRC GAAP and Those under IFRSs**

### Income Statement Analysis

In 2025, the Bank adhered to the general working principle of seeking progress while maintaining stability and promoting stability through progress, and fully and faithfully applied the new development philosophy on all fronts. Focusing on the major financial tasks of guarding against risks, strengthening supervision and promoting high-quality development, the Bank promoted its own high-quality development while serving the Chinese economy to sustain the momentum of recovery and growth. In the year, the Bank realized a net profit of RMB370,766 million, representing an increase of RMB3,820 million or 1.0% as compared to the previous year. Return on average total assets stood at 0.72%, and return on weighted average equity was 9.45%. Operating income amounted to RMB801,395 million, representing an increase of 1.9%. Specifically, net interest income decreased by 0.4% to RMB635,126 million; non-interest income was RMB166,269 million, up by 11.8%. Operating expenses amounted to RMB246,874 million, representing an increase of 1.9%, and the cost-to-income ratio was 29.48%. Impairment losses on assets were RMB134,860 million, representing an increase of 6.5%. Income tax expense decreased by 2.2% to RMB53,669 million.

**CHANGES OF KEY INCOME STATEMENT ITEMS**
In RMB millions, except for percentages

| Item | 2025 | 2024 | Increase/ (decrease) | Growth rate (%) |
| :--- | :---: | :---: | :---: | :---: |
| Net interest income | 635,126 | 637,405 | (2,279) | (0.4) |
| Non-interest income | 166,269 | 148,721 | 17,548 | 11.8 |
| **Operating income** | **801,395** | **786,126** | **15,269** | **1.9** |
| Less: Operating expenses | 246,874 | 242,155 | 4,719 | 1.9 |
| Credit impairment losses | 132,973 | 125,739 | 7,234 | 5.8 |
| Impairment losses on other assets | 1,887 | 924 | 963 | 104.2 |
| **Operating profit** | **419,661** | **417,308** | **2,353** | **0.6** |
| Share of results of associates and joint ventures | 4,774 | 4,519 | 255 | 5.6 |
| **Profit before taxation** | **424,435** | **421,827** | **2,608** | **0.6** |
| Less: Income tax expense | 53,669 | 54,881 | (1,212) | (2.2) |
| **Net profit** | **370,766** | **366,946** | **3,820** | **1.0** |
| Attributable to: Equity holders of the parent company | 368,562 | 365,863 | 2,699 | 0.7 |
| Non-controlling interests | 2,204 | 1,083 | 1,121 | 103.5 |

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# Discussion and Analysis

## Net Interest Income

In 2025, net interest income was RMB635,126 million, RMB2,279 million or 0.4% lower than that of last year, accounting for 79.3% of the Bank’s operating income. Interest income decreased by RMB96,117 million or 6.7% to RMB1,331,831 million and interest expenses decreased by RMB93,838 million or 11.9% to RMB696,705 million. Affected by factors such as reduction in the LPR and changes in the structure of deposit maturities, net interest spread and net interest margin (“NIM”) were 1.15% and 1.28%, respectively, down 8 basis points and 14 basis points respectively from the previous year.

### AVERAGE YIELD OF INTEREST-GENERATING ASSETS AND AVERAGE COST OF INTEREST-BEARING LIABILITIES
In RMB millions, except for percentages

| Item | 2025 Average balance | 2025 Interest income/expense | 2025 Average yield/cost (%) | 2024 Average balance | 2024 Interest income/expense | 2024 Average yield/cost (%) |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| **Assets** | | | | | | |
| Loans and advances to customers | 29,873,346 | 838,983 | 2.81 | 27,599,928 | 937,938 | 3.40 |
| Investment | 14,366,029 | 387,636 | 2.70 | 11,723,126 | 365,208 | 3.12 |
| Due from central banks⁽²⁾ | 3,079,744 | 50,580 | 1.64 | 3,161,419 | 54,174 | 1.71 |
| Due from banks and other financial institutions⁽³⁾ | 2,411,394 | 54,632 | 2.27 | 2,496,488 | 70,628 | 2.83 |
| **Total interest-generating assets** | **49,730,513** | **1,331,831** | **2.68** | **44,980,961** | **1,427,948** | **3.17** |
| Non-interest-generating assets | 3,067,850 | | | 2,757,010 | | |
| Allowance for impairment losses on assets | (900,467) | | | (853,348) | | |
| **Total assets** | **51,897,896** | | | **46,884,623** | | |
| **Liabilities** | | | | | | |
| Deposits | 34,957,515 | 474,363 | 1.36 | 32,745,057 | 564,039 | 1.72 |
| Due to banks and other financial institutions⁽³⁾ | 7,618,551 | 146,721 | 1.93 | 5,937,956 | 156,622 | 2.64 |
| Debt securities and certificates of deposit issued | 2,843,375 | 75,621 | 2.66 | 2,070,321 | 69,882 | 3.38 |
| **Total interest-bearing liabilities** | **45,419,441** | **696,705** | **1.53** | **40,753,334** | **790,543** | **1.94** |
| Non-interest-bearing liabilities | 2,344,036 | | | 2,168,164 | | |
| **Total liabilities** | **47,763,477** | | | **42,921,498** | | |
| **Net interest income** | | **635,126** | | | **637,405** | |
| **Net interest spread** | | | **1.15** | | | **1.23** |
| **Net interest margin** | | | **1.28** | | | **1.42** |

Notes: 
(1) The average balances of interest-generating assets and interest-bearing liabilities represent their daily average balances. The average balances of non-interest-generating assets, non-interest-bearing liabilities and the allowance for impairment losses on assets represent the average of the balances at the beginning of the year and at the end of the year. 
(2) Due from central banks mainly includes mandatory reserves and surplus reserves with central banks. 
(3) Due from banks and other financial institutions includes the amount of reverse repurchase agreements, and due to banks and other financial institutions includes the amount of repurchase agreements.

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# ANALYSIS OF CHANGES IN INTEREST INCOME AND EXPENSE

In RMB millions

| Item | Increase/(decrease) due to Volume | Increase/(decrease) due to Interest rate | Net increase/(decrease) |
| :--- | :--- | :--- | :--- |
| **Assets** | | | |
| Loans and advances to customers | 63,885 | (162,840) | (98,955) |
| Investment | 71,665 | (49,237) | 22,428 |
| Due from central banks | (1,381) | (2,213) | (3,594) |
| Due from banks and other financial institutions | (2,016) | (13,980) | (15,996) |
| **Changes in interest income** | **132,153** | **(228,270)** | **(96,117)** |
| **Liabilities** | | | |
| Deposits | 28,206 | (117,882) | (89,676) |
| Due to banks and other financial institutions | 32,258 | (42,159) | (9,901) |
| Debt securities and certificates of deposit issued | 20,645 | (14,906) | 5,739 |
| **Changes in interest expenses** | **81,109** | **(174,947)** | **(93,838)** |
| **Changes in net interest income** | **51,044** | **(53,323)** | **(2,279)** |

Note: Changes in volume are measured by the changes in average balances, while the changes in interest rate are measured by the changes in average interest rates. Changes resulted from the combination of volume and interest rate have been allocated to the changes resulted from business volume.

# Interest Income

## Interest Income on Loans and Advances to Customers

**Interest income on loans and advances to customers** was RMB838,983 million, RMB98,955 million or 10.6% lower as compared to that of last year, mainly due to the decrease of 59 basis points in the average yield of loans and advances to customers, and the increase of 8.2% in the average balance partially offset the effect of yield decrease.

# ANALYSIS OF THE AVERAGE YIELD OF LOANS AND ADVANCES TO CUSTOMERS BY MATURITY STRUCTURE

In RMB millions, except for percentages

| Item | 2025 Average balance | 2025 Interest income | 2025 Average yield (%) | 2024 Average balance | 2024 Interest income | 2024 Average yield (%) |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Short-term loans | 7,784,541 | 168,358 | 2.16 | 6,553,251 | 178,067 | 2.72 |
| Medium to long-term loans | 22,088,805 | 670,625 | 3.04 | 21,046,677 | 759,871 | 3.61 |
| **Total loans and advances to customers** | **29,873,346** | **838,983** | **2.81** | **27,599,928** | **937,938** | **3.40** |

# ANALYSIS OF THE AVERAGE YIELD OF LOANS AND ADVANCES TO CUSTOMERS BY BUSINESS LINE

In RMB millions, except for percentages

| Item | 2025 Average balance | 2025 Interest income | 2025 Average yield (%) | 2024 Average balance | 2024 Interest income | 2024 Average yield (%) |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Corporate loans | 17,455,247 | 491,203 | 2.81 | 16,213,330 | 528,356 | 3.26 |
| Discounted bills | 2,296,619 | 20,404 | 0.89 | 1,516,543 | 18,516 | 1.22 |
| Personal loans | 8,839,052 | 264,693 | 2.99 | 8,597,971 | 314,074 | 3.65 |
| Overseas business | 1,282,428 | 62,683 | 4.89 | 1,272,084 | 76,992 | 6.05 |
| **Total loans and advances to customers** | **29,873,346** | **838,983** | **2.81** | **27,599,928** | **937,938** | **3.40** |

---

# Discussion and Analysis

## Interest Income on Investment

Interest income on investment amounted to RMB387,636 million, representing an increase of RMB22,428 million or 6.1% as compared to that of last year, mainly due to the increase of 22.5% in the average balance of investment, and the decrease of 42 basis points in the average yield partially offset the effect of scale growth.

## Interest Income on Due from Central Banks

Interest income on due from central banks was RMB50,580 million, representing a decrease of RMB3,594 million or 6.6% as compared to that of last year.

## Interest Income on Due from Banks and Other Financial Institutions

Interest income on due from banks and other financial institutions was RMB54,632 million, representing a decrease of RMB15,996 million or 22.6% as compared to that of last year, primarily due to the decrease in the average yield of lending funds.

## Interest Expense

### Interest Expense on Deposits

Interest expense on deposits amounted to RMB474,363 million, representing a decrease of RMB89,676 million or 15.9% over the previous year, primarily due to the decrease of 36 basis points in the average cost. The Bank continued to standardize interest expense management, and improved the implementation effects of interest rate self-regulation initiatives, aligning deposit rate adjustments with monetary policy shifts to achieve a steady decline in interest payment costs.

### ANALYSIS OF AVERAGE DEPOSIT COST BY PRODUCTS

In RMB millions, except for percentages

| Item | Average balance (2025) | Interest expense (2025) | Average cost (%) (2025) | Average balance (2024) | Interest expense (2024) | Average cost (%) (2024) |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: |
| **Corporate deposits** | | | | | | |
| Time deposits | 7,956,467 | 142,987 | 1.80 | 7,836,374 | 181,905 | 2.32 |
| Demand deposits | 6,774,157 | 38,225 | 0.56 | 6,762,187 | 60,071 | 0.89 |
| **Subtotal** | **14,730,624** | **181,212** | **1.23** | **14,598,561** | **241,976** | **1.66** |
| **Personal deposits** | | | | | | |
| Time deposits | 12,522,289 | 251,399 | 2.01 | 10,994,438 | 261,960 | 2.38 |
| Demand deposits | 6,449,510 | 4,038 | 0.06 | 6,004,057 | 10,333 | 0.17 |
| **Subtotal** | **18,971,799** | **255,437** | **1.35** | **16,998,495** | **272,293** | **1.60** |
| **Overseas business** | **1,255,092** | **37,714** | **3.00** | **1,148,001** | **49,770** | **4.34** |
| **Total deposits** | **34,957,515** | **474,363** | **1.36** | **32,745,057** | **564,039** | **1.72** |

## Interest Expense on Due to Banks and Other Financial Institutions

Interest expense on due to banks and other financial institutions was RMB146,721 million, RMB9,901 million or 6.3% lower than that of last year, principally attributable to the decrease in the average cost of borrowing funds.

---

# Interest Expense on Debt Securities and Certificates of Deposit Issued

Interest expense on debt securities and certificates of deposits issued was RMB75,621 million, indicating an increase of RMB5,739 million or 8.2% over last year, mainly due to the increased scale of the negotiable certificates of deposit ("NCDs").

# Non-interest Income

In 2025, non-interest income was RMB166,269 million, which was RMB17,548 million or 11.8% higher than that of last year, accounting for 20.7% of the operating income. Specifically, net fee and commission income increased by RMB1,774 million or 1.6% to RMB111,171 million, and other non-interest related gains rose by RMB15,774 million or 40.1% to RMB55,098 million.

## NET FEE AND COMMISSION INCOME

In RMB millions, except for percentages

| Item | 2025 | 2024 | Increase/(decrease) | Growth rate (%) |
| :--- | :---: | :---: | :---: | :---: |
| Settlement, clearing business and cash management | 42,376 | 42,755 | (379) | (0.9) |
| Personal wealth management and private banking services | 19,176 | 17,880 | 1,296 | 7.2 |
| Investment banking business | 18,815 | 19,724 | (909) | (4.6) |
| Bank card business | 16,557 | 17,853 | (1,296) | (7.3) |
| Corporate wealth management services | 12,955 | 10,850 | 2,105 | 19.4 |
| Asset custody business | 8,180 | 8,045 | 135 | 1.7 |
| Guarantee and commitment business | 3,173 | 4,185 | (1,012) | (24.2) |
| Trust and agency services | 2,008 | 2,019 | (11) | (0.5) |
| Others | 3,482 | 2,866 | 616 | 21.5 |
| **Fee and commission income** | **126,722** | **126,177** | **545** | **0.4** |
| **Less: Fee and commission expense** | **15,551** | **16,780** | **(1,229)** | **(7.3)** |
| **Net fee and commission income** | **111,171** | **109,397** | **1,774** | **1.6** |

The Bank's net fee and commission income was RMB111,171 million, representing an increase of RMB1,774 million or 1.6% over last year. The increase in income from corporate wealth management, personal wealth management and private banking services was mainly because the Bank increased income from businesses such as agency precious metals, agency fund, agency wealth management and agency securities by actively seizing market opportunities. The increase in income from asset custody business was mainly because of the solid growth in assets under custody resulted from the Bank's business expansion. The increase in other income was mainly due to the sound growth in pension business. Affected by external factors such as market environment changes, income from bank card and investment banking businesses decreased. The Bank's proactive adjustment to lower fee rates for guarantee and commitment business resulted in a decline in relevant product income. Fee and commission expense declined by RMB1,229 million, principally due to a reduction in acquiring fees.

---

# Discussion and Analysis

## OTHER NON-INTEREST RELATED GAINS

In RMB millions, except for percentages

| Item | 2025 | 2024 | Increase/ (decrease) | Growth rate (%) |
| :--- | :--- | :--- | :--- | :--- |
| Net trading income | 18,510 | 19,440 | (930) | (4.8) |
| Net gains on financial investments | 34,806 | 22,961 | 11,845 | 51.6 |
| Other operating income/(expense), net | 1,782 | (3,077) | 4,859 | N/A |
| **Total** | **55,098** | **39,324** | **15,774** | **40.1** |

Other non-interest related gains amounted to RMB55,098 million, RMB15,774 million or 40.1% higher than that of the previous year. Among these, the decrease in net trading income was mainly due to the decrease in unrealised gains on trading bond investment, the increase in net gains on financial investments was primarily because of the Bank’s seizing market opportunities to achieve increase in realised gains on bond investment, while the change in other net operating income was mainly because of the decrease in net losses on exchange and exchange rate products.

## Operating Expenses

In RMB millions, except for percentages

| Item | 2025 | 2024 | Increase/ (decrease) | Growth rate (%) |
| :--- | :--- | :--- | :--- | :--- |
| Staff costs | 146,449 | 144,554 | 1,895 | 1.3 |
| Property and equipment expenses | 27,404 | 27,274 | 130 | 0.5 |
| Taxes and surcharges | 10,658 | 10,765 | (107) | (1.0) |
| Amortisation | 5,468 | 5,157 | 311 | 6.0 |
| Others | 56,895 | 54,405 | 2,490 | 4.6 |
| **Total** | **246,874** | **242,155** | **4,719** | **1.9** |

## Impairment Losses

The Bank’s credit impairment losses amounted to RMB132,973 million, indicating an increase of RMB7,234 million or 5.8% as compared to that of last year. Specifically, the impairment losses on loans were RMB149,620 million, indicating an increase of RMB27,141 million or 22.2%. Impairment losses on other assets were RMB1,887 million, indicating an increase of RMB963 million or 104.2%. Please refer to “Note 14. to the Consolidated Financial Statements: Credit Impairment Losses; Note 30. to the Consolidated Financial Statements: Impairment Allowance” for details.

## Income Tax Expense

Income tax expense decreased by RMB1,212 million or 2.2% to RMB53,669 million as compared to the previous year. The effective tax rate stood at 12.64%, lower than the statutory tax rate of 25%, primarily because the interest income on Chinese government bonds and local government bonds was exempted from tax under the relevant tax law.

---

# Discussion and Analysis

## Summary of Geographical Segment Information

In RMB millions, except for percentages

| Item | 2025 Amount | 2025 Percentage (%) | 2024 Amount | 2024 Percentage (%) |
| :--- | :--- | :--- | :--- | :--- |
| **Operating income** | **801,395** | **100.0** | **786,126** | **100.0** |
| Head Office | 49,437 | 6.1 | 23,610 | 3.0 |
| Yangtze River Delta | 150,041 | 18.7 | 151,491 | 19.3 |
| Pearl River Delta | 97,629 | 12.2 | 105,074 | 13.4 |
| Bohai Rim | 168,163 | 21.0 | 163,709 | 20.8 |
| Central China | 107,481 | 13.4 | 111,541 | 14.2 |
| Western China | 119,973 | 15.0 | 124,922 | 15.9 |
| Northeastern China | 27,854 | 3.5 | 29,793 | 3.8 |
| Overseas and others | 80,955 | 10.1 | 76,019 | 9.6 |
| Eliminations | (138) | (0.0) | (33) | (0.0) |
| **Profit before taxation** | **424,435** | **100.0** | **421,827** | **100.0** |
| Head Office | 64,559 | 15.2 | 32,139 | 7.6 |
| Yangtze River Delta | 83,829 | 19.7 | 80,715 | 19.1 |
| Pearl River Delta | 24,439 | 5.8 | 43,876 | 10.4 |
| Bohai Rim | 103,411 | 24.4 | 102,730 | 24.4 |
| Central China | 47,750 | 11.2 | 49,374 | 11.7 |
| Western China | 54,131 | 12.8 | 55,680 | 13.2 |
| Northeastern China | 8,745 | 2.1 | 11,054 | 2.6 |
| Overseas and others | 37,571 | 8.8 | 46,259 | 11.0 |
| Eliminations | — | — | — | — |

Note: Please see “Note 49. to the Consolidated Financial Statements: Segment Information” for details.

## Balance Sheet Analysis

In 2025, the Bank earnestly implemented the macroeconomic and financial policies and regulatory requirements, made efforts to build a clean and healthy balance sheet by dynamically optimizing the total volume and the strategic structure of the assets and liabilities, advanced the “five transformations”, and strove to achieve a dynamic balance of value creation, market position, risk control and capital constraints.

The Bank adhered to the integrated development strategy of investment and financing, and supported the high-quality economic development by focusing on the modern layout. Moreover, the Bank refined and deepened the “Five Priorities” of technology finance, green finance, inclusive finance, pension finance and digital finance, and intensified support for key fields and weak links of the real economy. The Bank enhanced the diversification of liabilities, continued to promote the GBC+ projects, and consolidated the growth basis for due to customers, so that its deposits maintained the high-quality development trend. The Bank improved the multi-channel funding mechanism, promoted the matching of fund source and fund utilization, and optimized the management efficiency of assets and liabilities.

---

# Discussion and Analysis

## Assets Deployment

As at the end of 2025, total assets amounted to RMB53,477,773 million, RMB4,656,027 million or 9.5% higher than that at the end of the previous year. Specifically, total loans and advances to customers (collectively referred to as “total loans”) increased by RMB2,133,885 million or 7.5% to RMB30,506,114 million, investment increased by RMB2,753,839 million or 19.5% to RMB16,907,415 million, and cash and balances with central banks increased by RMB351,647 million or 10.6% to RMB3,674,558 million.

In RMB millions, except for percentages

| Item | At 31 December 2025 Amount | At 31 December 2025 Percentage (%) | At 31 December 2024 Amount | At 31 December 2024 Percentage (%) |
| :--- | :--- | :--- | :--- | :--- |
| Total loans and advances to customers | 30,506,114 | — | 28,372,229 | — |
| Add: Accrued interest | 57,995 | — | 56,624 | — |
| Less: Allowance for impairment losses on loans and advances to customers measured at amortised cost | 851,750 | — | 815,072 | — |
| Net loans and advances to customers¹ ¹ Please see “Note 23. to the Consolidated Financial Statements: Loans and Advances to Customers”. | 29,712,359 | 55.6 | 27,613,781 | 56.6 |
| Investment | 16,907,415 | 31.6 | 14,153,576 | 29.0 |
| Cash and balances with central banks | 3,674,558 | 6.9 | 3,322,911 | 6.8 |
| Due from banks and other financial institutions | 1,264,019 | 2.4 | 1,219,876 | 2.5 |
| Reverse repurchase agreements | 530,737 | 1.0 | 1,210,217 | 2.5 |
| Others | 1,388,685 | 2.5 | 1,301,385 | 2.6 |
| **Total assets** | **53,477,773** | **100.0** | **48,821,746** | **100.0** |

Note: (1) Please see “Note 23. to the Consolidated Financial Statements: Loans and Advances to Customers”.

## Loan

**The Bank was earnestly committed to implementing national strategic arrangements, and carried out a raft of existing and incremental policies in a proactive manner.** It focused on the financial needs for developing a modern industrial system, actively empowered the development of new quality productive forces, and continuously enhanced the alignment between the credit structure and the regional economic structure. Additionally, the Bank steadily advanced the balanced development of residential mortgages, strengthened product supply and scenario innovation in key areas of personal consumption and business operations, thereby helping to expand domestic demand and boost consumption. As at the end of 2025, total loans amounted to RMB30,506,114 million, RMB2,133,885 million or 7.5% higher compared with the end of the previous year, of which, RMB denominated loans of domestic branches were RMB28,869,490 million, up by RMB2,173,909 million or 8.1%.

---

# Discussion and Analysis

## DISTRIBUTION OF LOANS BY BUSINESS LINE

In RMB millions, except for percentages

| Item | At 31 December 2025 Amount | At 31 December 2025 Percentage (%) | At 31 December 2024 Amount | At 31 December 2024 Percentage (%) |
| :--- | :--- | :--- | :--- | :--- |
| **Corporate loans** | **18,841,671** | **61.8** | **17,482,223** | **61.6** |
| Short-term corporate loans | 4,280,312 | 14.0 | 3,819,683 | 13.5 |
| Medium to long-term corporate loans | 14,561,359 | 47.8 | 13,662,540 | 48.1 |
| **Discounted bills** | **2,661,807** | **8.7** | **1,932,286** | **6.8** |
| **Personal loans** | **9,002,636** | **29.5** | **8,957,720** | **31.6** |
| Residential mortgages | 5,875,868 | 19.3 | 6,083,180 | 21.5 |
| Personal consumption loans | 499,014 | 1.6 | 421,195 | 1.5 |
| Personal business loans | 1,930,219 | 6.3 | 1,677,981 | 5.9 |
| Credit card overdrafts | 697,535 | 2.3 | 775,364 | 2.7 |
| **Total** | **30,506,114** | **100.0** | **28,372,229** | **100.0** |

**The Bank stepped up its credit support for key fields**, major strategies and weak links such as “Major Strategies and Key Fields”, “Renewal and Trade-in” and “Five Priorities”, and loans to manufacturing, sci-tech innovation, green finance, inclusive finance and other key fields achieved rapid growth. Corporate loans rose by RMB1,359,448 million or 7.8% from the end of last year. Specifically, short-term corporate loans and medium to long-term corporate loans increased by RMB460,629 million and RMB898,819 million respectively.

**The Bank conducted in-depth analysis of the new developments in the real estate market** and accelerated the transformational development of residential mortgages. The Bank increased the supply of consumer finance, created a product system encompassing multiple target customer groups and catering to diverse consumption scenarios, and advanced the fiscal interest subsidy scheme for personal consumption loans in an orderly manner, ensuring policy dividends can be delivered directly to common people. Focusing on the production, operation and consumption needs of key customer groups such as small and micro enterprise owners and self-employed businesses, the Bank constantly improved service quality through product optimization and innovation, and expanded and optimized personal business loans. Personal loans increased by RMB44,916 million or 0.5% from the end of last year. Specifically, personal consumption loans grew by RMB77,819 million or 18.5%, and personal business loans increased by RMB252,238 million or 15.0%.

Please see the section headed “Discussion and Analysis — Risk Management” for a detailed analysis of the Bank’s loans and their quality.

---

# Discussion and Analysis

## Investment

In 2025, the Bank actively supported the implementation of the national development strategies, intensified its support for the real economy, actively conducted bond investment, coordinated bond investment values and interest rate risk prevention, and reasonably arranged the bond variety and term structure. As at the end of 2025, investment amounted to RMB16,907,415 million, representing an increase of RMB2,753,839 million or 19.5% from the end of the previous year. Among these, bonds rose by RMB2,667,787 million or 19.6% to RMB16,312,709 million.

In RMB millions, except for percentages
| Item | At 31 December 2025 Amount | At 31 December 2025 Percentage (%) | At 31 December 2024 Amount | At 31 December 2024 Percentage (%) |
| :--- | :--- | :--- | :--- | :--- |
| Bonds | 16,312,709 | 96.5 | 13,644,922 | 96.4 |
| Equity instruments | 234,886 | 1.4 | 196,993 | 1.4 |
| Funds and others | 221,154 | 1.3 | 178,941 | 1.3 |
| Accrued interest | 138,666 | 0.8 | 132,720 | 0.9 |
| **Total** | **16,907,415** | **100.0** | **14,153,576** | **100.0** |

## DISTRIBUTION OF INVESTMENT IN BONDS BY ISSUERS

In RMB millions, except for percentages
| Item | At 31 December 2025 Amount | At 31 December 2025 Percentage (%) | At 31 December 2024 Amount | At 31 December 2024 Percentage (%) |
| :--- | :--- | :--- | :--- | :--- |
| Government and central bank bonds | 12,565,387 | 77.0 | 10,422,907 | 76.4 |
| Policy bank bonds | 1,370,230 | 8.4 | 1,097,125 | 8.0 |
| Bonds of banks and other financial institutions | 1,459,991 | 9.0 | 1,398,606 | 10.3 |
| Enterprise bonds | 917,101 | 5.6 | 726,284 | 5.3 |
| **Total** | **16,312,709** | **100.0** | **13,644,922** | **100.0** |

In terms of distribution by issuers, government and central bank bonds increased by RMB2,142,480 million or 20.6% over the end of last year; policy bank bonds increased by RMB273,105 million or 24.9%; bonds of banks and other financial institutions went up by RMB61,385 million or 4.4%; and enterprise bonds increased by RMB190,817 million or 26.3%.

## DISTRIBUTION OF INVESTMENT IN BONDS BY REMAINING MATURITY

In RMB millions, except for percentages
| Remaining maturity | At 31 December 2025 Amount | At 31 December 2025 Percentage (%) | At 31 December 2024 Amount | At 31 December 2024 Percentage (%) |
| :--- | :--- | :--- | :--- | :--- |
| Undated¹ | 107 | 0.0 | 83 | 0.0 |
| Less than 3 months | 1,136,887 | 7.0 | 750,923 | 5.5 |
| 3 to 12 months | 2,217,214 | 13.6 | 2,337,828 | 17.1 |
| 1 to 5 years | 6,624,654 | 40.6 | 4,992,268 | 36.6 |
| Over 5 years | 6,333,847 | 38.8 | 5,563,820 | 40.8 |
| **Total** | **16,312,709** | **100.0** | **13,644,922** | **100.0** |

Note: (1) Refers to overdue bonds.

---

# Discussion and Analysis

## DISTRIBUTION OF INVESTMENT IN BONDS BY CURRENCY

In RMB millions, except for percentages

| Item | At 31 December 2025 Amount | At 31 December 2025 Percentage (%) | At 31 December 2024 Amount | At 31 December 2024 Percentage (%) |
| :--- | :--- | :--- | :--- | :--- |
| RMB-denominated bonds | 15,213,730 | 93.3 | 12,703,351 | 93.1 |
| USD-denominated bonds | 697,570 | 4.3 | 619,013 | 4.5 |
| Other foreign currency bonds | 401,409 | 2.4 | 322,558 | 2.4 |
| **Total** | **16,312,709** | **100.0** | **13,644,922** | **100.0** |

In terms of currency structure, RMB-denominated bonds rose by RMB2,510,379 million or 19.8% over the end of last year; USD-denominated bonds increased by an equivalent of RMB78,557 million or 12.7%; other foreign currency bonds increased by an equivalent of RMB78,851 million or 24.4%. The Bank reasonably arranged the currency structure based on changes in market interest rates and foreign-currency fund positions, in consideration of bond liquidity, security and profitability, and enhanced the efficiency of foreign-currency fund utilization.

## DISTRIBUTION OF INVESTMENT BY MEASURING METHOD

In RMB millions, except for percentages

| Item | At 31 December 2025 Amount | At 31 December 2025 Percentage (%) | At 31 December 2024 Amount | At 31 December 2024 Percentage (%) |
| :--- | :--- | :--- | :--- | :--- |
| Financial investments measured at fair value through profit or loss | 943,953 | 5.6 | 1,010,439 | 7.1 |
| Financial investments measured at fair value through other comprehensive income | 3,823,279 | 22.6 | 3,291,152 | 23.3 |
| Financial investments measured at amortised cost | 12,140,183 | 71.8 | 9,851,985 | 69.6 |
| **Total** | **16,907,415** | **100.0** | **14,153,576** | **100.0** |

As at the end of 2025, the Group held RMB2,739,912 million of financial bonds¹, including RMB1,370,230 million of policy bank bonds and RMB1,369,682 million of bonds issued by banks and non-bank financial institutions.

¹ Financial bonds refer to the debt securities issued by financial institutions on the bond market, including bonds issued by policy banks, banks and non-bank financial institutions but excluding debt securities related to restructuring and central bank bonds.

## TOP 10 FINANCIAL BONDS HELD BY THE BANK

In RMB millions, except for percentages

| Bond name | Nominal value | Annual interest rate⁽¹⁾ (%) | Maturity date | Allowance for impairment losses⁽²⁾ |
| :--- | :--- | :--- | :--- | :--- |
| Policy bank bonds 2025 | 54,927 | 1.47 | 14 February 2028 | – |
| Policy bank bonds 2025 | 48,869 | 1.59 | 15 April 2028 | – |
| Policy bank bonds 2025 | 30,789 | 1.32 | 7 January 2028 | – |
| Policy bank bonds 2024 | 28,392 | 1.80 | 2 September 2027 | – |
| Policy bank bonds 2024 | 28,122 | 1.67 | 13 September 2027 | – |
| Policy bank bonds 2024 | 27,384 | 1.80 | 23 July 2027 | – |
| Policy bank bonds 2020 | 19,905 | 3.23 | 23 March 2030 | – |
| Policy bank bonds 2020 | 19,690 | 2.96 | 17 April 2030 | – |
| Policy bank bonds 2019 | 19,207 | 3.45 | 20 September 2029 | – |
| Policy bank bonds 2024 | 19,010 | 1.66 | 4 September 2026 | – |

**Notes:**
(1) Annual interest rate refers to the coupon rate of the corresponding bonds.
(2) Excludes stage 1 allowance for impairment losses set aside in accordance with the expected credit loss model.

---

# Reverse Repurchase Agreements

Reverse repurchase agreements amounted to RMB530,737 million, representing a decrease of RMB679,480 million or 56.1% from the end of the previous year, mainly because the Bank continued to step up its support for the real economy and moderately decreased the scale of short-term lending to peers.

# Liabilities

The Bank attached importance to the enhancement of the diversified development capacity in liabilities, established a liability quality management system commensurate with the size and complexity of liabilities, and defined the management strategy and policy for liability quality that are consistent with the business strategy, risk appetite and overall business characteristics. As a result, the liability business maintained steady development. As at the end of 2025, total liabilities reached RMB49,205,749 million, representing an increase of RMB4,371,269 million or 9.7% compared with the end of last year.

## Structure of liabilities

In RMB millions, except for percentages

| Item | At 31 December 2025 Amount | At 31 December 2025 Percentage (%) | At 31 December 2024 Amount | At 31 December 2024 Percentage (%) |
| :--- | :--- | :--- | :--- | :--- |
| Due to customers | 37,311,778 | 75.8 | 34,836,973 | 77.7 |
| Due to banks and other financial institutions | 5,103,247 | 10.4 | 4,590,965 | 10.2 |
| Repurchase agreements | 2,536,376 | 5.2 | 1,523,555 | 3.4 |
| Debt securities issued | 2,216,807 | 4.5 | 2,028,722 | 4.5 |
| Others | 2,037,541 | 4.1 | 1,854,265 | 4.2 |
| **Total liabilities** | **49,205,749** | **100.0** | **44,834,480** | **100.0** |

# Due to Customers

Due to customers is the Bank’s main source of funds. As at the end of 2025, due to customers was RMB37,311,778 million, RMB2,474,805 million or 7.1% higher than that at the end of the previous year. In terms of customer structure, corporate deposits increased by RMB843,188 million or 5.4%; and personal deposits increased by RMB1,663,109 million or 9.0%. In terms of maturity structure, time deposits increased by RMB1,674,329 million or 8.2%, while demand deposits increased by RMB831,968 million or 6.1%. In terms of currency structure, RMB deposits stood at RMB35,503,269 million, representing an increase of RMB2,356,840 million or 7.1%. Foreign currency deposits were equivalent to RMB1,808,509 million, indicating an increase of RMB117,965 million or 7.0%.

---

## DISTRIBUTION OF DUE TO CUSTOMERS BY BUSINESS LINE
**In RMB millions, except for percentages**

| Item | At 31 December 2025 Amount | At 31 December 2025 Percentage (%) | At 31 December 2024 Amount | At 31 December 2024 Percentage (%) |
| :--- | :--- | :--- | :--- | :--- |
| **Corporate deposits** | | | | |
| Time deposits | 8,831,506 | 23.6 | 8,349,110 | 24.0 |
| Demand deposits | 7,519,087 | 20.2 | 7,158,295 | 20.5 |
| **Subtotal** | **16,350,593** | **43.8** | **15,507,405** | **44.5** |
| **Personal deposits** | | | | |
| Time deposits | 13,269,598 | 35.5 | 12,077,665 | 34.7 |
| Demand deposits | 6,935,021 | 18.6 | 6,463,845 | 18.5 |
| **Subtotal** | **20,204,619** | **54.1** | **18,541,510** | **53.2** |
| **Other deposits<sup>(1)</sup> <sup>(1)</sup> Includes outward remittance and remittance payables.** | **251,921** | **0.7** | **228,721** | **0.7** |
| **Accrued interest** | **504,645** | **1.4** | **559,337** | **1.6** |
| **Total** | **37,311,778** | **100.0** | **34,836,973** | **100.0** |

## DISTRIBUTION OF DUE TO CUSTOMERS BY GEOGRAPHIC AREA
**In RMB millions, except for percentages**

| Item | At 31 December 2025 Amount | At 31 December 2025 Percentage (%) | At 31 December 2024 Amount | At 31 December 2024 Percentage (%) |
| :--- | :--- | :--- | :--- | :--- |
| Head Office | 32,459 | 0.1 | 31,864 | 0.1 |
| Yangtze River Delta | 6,981,254 | 18.7 | 6,661,782 | 19.1 |
| Pearl River Delta | 4,648,119 | 12.5 | 4,472,710 | 12.8 |
| Bohai Rim | 10,422,009 | 27.9 | 9,496,212 | 27.3 |
| Central China | 5,646,032 | 15.1 | 5,159,595 | 14.8 |
| Western China | 5,830,068 | 15.6 | 5,430,660 | 15.6 |
| Northeastern China | 2,451,230 | 6.6 | 1,953,728 | 5.6 |
| Overseas and others | 1,300,607 | 3.5 | 1,630,422 | 4.7 |
| **Total** | **37,311,778** | **100.0** | **34,836,973** | **100.0** |

---

# Discussion and Analysis

## Repurchase Agreements

Repurchase agreements amounted to RMB2,536,376 million, RMB1,012,821 million or 66.5% higher than that at the end of the previous year, principally because the Bank further expanded the multi-channel funding sources, and appropriately increased the scale of borrowed funds.

## Shareholders’ Equity

As at the end of 2025, shareholders’ equity totaled RMB4,272,024 million, RMB284,758 million or 7.1% higher than that at the end of the previous year. Equity attributable to equity holders of the parent company recorded an increase of RMB274,418 million or 6.9% to RMB4,244,259 million. Please refer to the “Consolidated Statement of Changes in Equity” for details.

## Off-balance Sheet Items

The off-balance sheet items of the Bank mainly include derivative financial instruments, contingencies and commitments. For details on the nominal amount and fair value of derivatives financial instruments, please refer to “Note 21. to the Consolidated Financial Statements: Derivative Financial Instruments”. For details on contingencies and commitments, please refer to “Note 47. to the Consolidated Financial Statements: Commitments and Contingent Liabilities”.

## Analysis on Statement of Cash Flows

Net cash inflows from operating activities amounted to RMB1,890,530 million, representing an increase of RMB1,311,336 million as compared to last year, principally due to the increase of net increase of due to customers. Specifically, cash outflows of operating assets increased by RMB573,192 million; and cash inflows of operating liabilities increased by RMB1,882,871 million.

Net cash outflows from investing activities amounted to RMB2,417,582 million. Specifically, cash inflows were RMB5,664,332 million, representing an increase of RMB585,217 million over last year, mainly due to the increased cash proceeds from the sale and redemption of financial investments; and cash outflows were RMB8,081,914 million, representing an increase of RMB1,531,331 million, mainly due to the increase in cash payment for financial investments.

Net cash inflows from financing activities amounted to RMB35,005 million. Specifically, cash inflows were RMB2,595,380 million, representing an increase of RMB451,920 million over last year, mainly due to the increased cash proceeds from debt securities issued; and cash outflows were RMB2,560,375 million, representing an increase of RMB832,598 million, mainly due to the increased cash payment for repayment of debt securities.

## Changes of Major Accounting Policies

Please refer to “Note 3.(1) to the Consolidated Financial Statements: Application of amendments to IFRS Accounting Standards that are mandatorily effective for the current year” for changes of major accounting policies during the reporting period.

## Description of Significant Accounting Estimates

Please refer to “Note 5. to the Consolidated Financial Statements: Significant accounting judgements and estimates” for description of significant accounting estimates during the reporting period.

## Reconciliation of Differences between the Financial Statements Prepared under PRC GAAP and Those under IFRSs

In respect of the financial statements of the Bank prepared under PRC GAAP and those under IFRSs, net profit attributable to equity holders of the parent company for the year ended 31 December 2025 and equity attributable to equity holders of the parent company as at the end of the reporting period have no differences.

---

# Business Overview

## Progress in Serving the "Five Priorities"

In 2025, the Bank strengthened its efforts on the "Five Priorities" of technology finance, green finance, inclusive finance, pension finance and digital finance in a bid to serve the high-quality development with financial services. By coordinating the aggregate and structure of investment and financing, proactively innovating its products and services, optimizing authorization and pricing management, and deepening the integration of technology and business, the Bank guided resources precisely towards major strategies, key areas and weak links to continuously improve the quality and efficiency of financial services for the real economy.

**In terms of technology finance,** the "Five Special (specialized institutions, special actions, exclusive products, specialized risk control and exclusive support)" service mechanism was improved, special financing scenarios were launched for R&D loans, Innovation Points Loan and Disruptive Technological Innovation Loan. At the end of 2025, the balance of sci-tech loans stood at RMB6 trillion, an increase of nearly RMB1 trillion from the beginning of the year. **In terms of green finance,** the Bank established a comprehensive service model for industrial parks, created structured financing tools such as electricity-carbon linked loan and carbon emissions reduction-linked bond. At the end of 2025, the Bank's balance of green loans exceeded RMB6.7 trillion, maintaining the top position among peers by total amount; as at the end of 2025, the Bank issued green financial bonds of RMB125.0 billion cumulatively in China's interbank market and green financial bonds of USD26.0 billion equivalent cumulatively in the offshore market. **In terms of inclusive finance,** the Bank iteratively developed the three product lines of Quick Lending for Operation, Online Revolving Loan, and Digital Supply Chain, and created the "1+4+X" distinctive financial service system for rural revitalization. At the end of 2025, the balance of inclusive small and micro enterprise loans was RMB3.6 trillion, and the balance of agriculture-related loans exceeded RMB5 trillion. **In terms of pension finance,** the Bank launched the "ICBC Pension Finance" brand, introduced the Ruyi Life integrated retirement solution, and refined the "ICBC Aixiangban" service brand aiming at elderly customer groups. At the end of 2025, the total pension funds under management exceeded RMB5.9 trillion, and the cumulative number of personal pension accounts and total contributions deposited both ranked first among peers. **In terms of digital finance,** the Bank became the first and only institution in the industry to be certified for the highest level of the Financial Digital Transformation Maturity Model (FDMM) Assessment. It built "ICBC Zhiyong", a financial large language model (LLM) with hundreds of billions of parameters. At the end of 2025, the balance of loans to core industries of the digital economy exceeded RMB1 trillion. By the number of monthly active users of personal mobile banking, the Bank stayed ahead of other market players.

The year 2026 marks the beginning of the 15th Five-Year Plan. The Bank will resolutely implement all the decisions and plans of the CPC Central Committee on the "Five Priorities", strengthen the precise alignment with policies, improve the service system and support mechanism, and allocate resources in light of local conditions. In addition, the Bank will innovate its financial products and services for the real economy, boost the intensity and efficiency to advance the "Five Priorities", give better play to its role as a leading bank, and drive new breakthroughs in high-quality development.

---

# SUMMARY OF OPERATING SEGMENT INFORMATION
In RMB millions, except for percentages

| Item | 2025 Amount | 2025 Percentage (%) | 2024 Amount | 2024 Percentage (%) |
| :--- | :--- | :--- | :--- | :--- |
| **Operating income** | **801,395** | **100.0** | **786,126** | **100.0** |
| Corporate banking | 399,836 | 49.9 | 382,329 | 48.6 |
| Personal banking | 311,560 | 38.9 | 310,138 | 39.5 |
| Treasury operations | 87,893 | 11.0 | 89,675 | 11.4 |
| Others | 2,106 | 0.2 | 3,984 | 0.5 |
| **Profit before taxation** | **424,435** | **100.0** | **421,827** | **100.0** |
| Corporate banking | 206,924 | 48.7 | 244,892 | 58.1 |
| Personal banking | 141,764 | 33.4 | 98,710 | 23.4 |
| Treasury operations | 71,134 | 16.8 | 75,270 | 17.8 |
| Others | 4,613 | 1.1 | 2,955 | 0.7 |

Note: Please see “Note 49. to the Consolidated Financial Statements: Segment Information” for details.

# Corporate Banking

**Corporate banking explored business segment-based operations upholding a customer-centric and market-oriented approach.** Comprehensive Financial Solutions (“CFS”) were developed to continuously enhance the value creation capability, market competitiveness, market influence, and risk management capacity. At the end of 2025, corporate loans reached RMB18,841,671 million, representing an increase of RMB1,359,448 million or 7.8% over the end of last year. Corporate deposits stood at RMB16,350,593 million, representing an increase of RMB843,188 million or 5.4%. The number of corporate customers reached 14,745.9 thousand, an increase of 1,397.3 thousand. The Bank was awarded the “China’s Best Bank for Large Corporates” by *Euromoney*, the “Best Domestic Bank for Belt and Road” by *Global Finance* and the “Project Finance House of the Year” by *The Asset* for the fifth consecutive year, and the “Best RMB Project Finance for Belt and Road” by *The Asian Banker*.

---

# Discussion and Analysis

The Bank sought progress while maintaining stability, and ensured sufficient resource flows into the real economy. High-quality corporate lending was further front-loaded, boosting uninterrupted access to credit across terms. With a focus on the financial service demand from modernizing the industrial system, the Bank implemented a modern corporate credit layout to better align the credit structure with the regional economic structure, maintaining a rapid growth in the corporate lending to “Major Strategies, Key Fields and Weak Links”. The Bank further strengthened the cooperation mechanism for investment-lending link with the National Development and Reform Commission, and actively supported the financing for “Major Strategies and Key Fields” projects and new policy financial tool projects. The total corporate loans issued in 2025 exceeded RMB10 trillion.

The Bank focused on its core businesses to help modernize the industrial system. The Bank focused on its major responsibilities and core businesses in “industry”. It adopted a coordinated approach to upgrading traditional industries, expanding emerging industries and nurturing future industries. The Bank developed a special plan for financial support for new industrialization, actively served the large-scale renewal of equipment and launched the “ICBC Clusters” initiative in collaboration with the Ministry of Industry and Information Technology. At the end of 2025, the balance of loans to manufacturing stood at RMB5.24 trillion. It improved the “Five Special (specialized institutions, special actions, exclusive products, specialized risk control and exclusive support)” service system for technology finance, formulated a three-year plan for technological finance development, held the ICBC Sci-tech Innovation Partnership marketing campaign series and jointly built a technology finance ecosystem alliance. The Bank enhanced its professional characteristics in “commerce”. Focusing on serving a robust domestic market, stronger financial services were provided for key scenarios such as commodities, trade, logistics, e-commerce and service consumption at home and abroad. It deepened cooperation with platforms and supermarkets, and completed its first re-lending for service consumption and elderly care, leading the peers in terms of declared and disbursed amounts.

The Bank forged ahead with a great sense of responsibility, serving “Major Strategies, Key Fields and Weak Links”. To help safeguard food security, the Bank created the “Supply & Marketing + Finance” service model with the All China Federation of Supply and Marketing Cooperatives, and provided sound financial services during critical farming seasons. To help safeguard energy security, the Bank supported ensuring energy supply and building the national new energy system at a faster pace. The Bank made good use of the carbon emission reduction instruments to support the green transition. In pursuit of high-quality development of the real estate sector, the Bank provided adequate financial support for key tasks such as the city-specific real estate financing coordination mechanism and conversion of the existing housing stock into affordable homes, supported the construction of “Good Houses” and helped develop a new model for real estate development.

A CFS system was created to advance transformation and reform. Focusing on the core needs of enterprises, the Bank continued to enhance the systematic, digital, professional and ecosystem-based service capabilities, and adopted the four-pronged approach of financing, consulting, technology and connectivity to match products with customers and provide high-quality financial services for enterprises. To improve the services of central state-owned enterprises, the Bank strengthened strategic cooperation with several such enterprises, and continued to build itself into a major banking service provider for central state-owned enterprises. The Bank issued the comprehensive financial service plan for multinational companies, continued to carry out the “Global Tour, Global Win” bank-enterprise matchmaking campaign series and helped enterprises participating in the “Bringing in” and “Going Global”. It delivered fruitful results in high-quality Belt and Road cooperation, and acted as a leading bank to serve the national strategies and the national interests in terms of economy, trade and diplomacy. In line with the principle of “unswervingly consolidating and developing the public sector and unswervingly encouraging, supporting, and guiding the development of the non-public sector”, the Bank held a facilitation meeting on financial empowerment for high-quality development of private enterprises in conjunction with the All-China Federation of Industry and Commerce, introduced a package of ten measures to empower the high-quality development of the private sector, jointly launched initiatives to support financing for high-quality private enterprises.

---

# Discussion and Analysis

## Corporate loans
Unit: RMB millions

| Year | Corporate loans |
| :--- | :--- |
| 2025 | 18,841,671 |
| 2024 | 17,482,223 |
| 2023 | 16,145,204 |

## Corporate loans of domestic branches by industry of loan customers

| Industry | Percentage |
| :--- | :--- |
| Transportation, storage and postal services | 22.9% |
| Leasing and commercial services | 15.8% |
| Manufacturing | 15.6% |
| Water, environment and public utility management | 10.9% |
| Production and supply of electricity, heating, gas and water | 10.5% |
| Wholesale and retail | 5.4% |
| Real estate | 4.9% |
| Construction | 3.1% |
| Science, education, culture and sanitation | 2.6% |
| Mining | 2.2% |
| Others | 6.1% |

## Inclusive Finance

The Bank remained dedicated to inclusive finance. It continuously improved the coverage, accessibility and satisfaction of inclusive financial services, and better met the diverse financial needs of small and micro enterprises, agriculture-related business entities and key customer groups designated under the assistance program, improving the quality and efficiency of financial services for small and micro enterprises. As at the end of 2025, the balance of inclusive small and micro enterprise loans amounted to RMB3,551,863 million, representing an increase of RMB658,548 million or 22.8% over the beginning of the year. Inclusive small and micro enterprise loan customers numbered 2,581.3 thousand, representing an increase of 497.9 thousand. The average interest rate of inclusive small and micro enterprise loans newly granted in the year was 2.96%.

- **Services were strengthened for the real economy.** The Bank implemented the policy requirements for inclusive finance and redoubled efforts to promote inclusive credit supply. It further implemented the coordination mechanism for financing of small and micro enterprises, further carried out the "Visiting Thousands of Enterprises" campaign and strengthened visits and connections to address the demands of micro and small enterprises. A raft of incremental and existing policies were implemented, with ongoing services provided for loan renewals and interest subsidies.
- **Services were enhanced for key customer groups.** Targeted services were provided to merchants and farmers to meet their needs. With a focus on small and micro enterprises engaged in foreign trade, the Bank strengthened comprehensive services and financing supply. For sci-tech innovation enterprises, the Bank released the "Leadership" action plan for technology finance, continuously innovated products, optimized policy systems and business processes, and collaboratively deepened comprehensive financial services to precisely meet the needs of enterprises.
- **The digital inclusive finance product library was improved.** To meet the diverse financing needs of small and micro customers, the Bank focused on its major responsibilities and core businesses in "industry" and "commerce", strengthened data import, deepened and refined the research on customer group financing strategy, continued to improve and promote the "Manufacturing e Loan", "Merchant e Loan" and other products and enhanced services for manufacturers and merchants. A wider array of collateral types and assessment strategies were offered, with the "e-Mortgage Quick Loan", "e-Enterprise Quick Loan" and "e-Quick Loan" refined. High-quality and efficient digital supply chain financing services were provided for upstream and downstream customers of core enterprises in the industrial chain. Taking into account regional characteristics, the Bank leveraged on the resource endowments of branches to develop products with local features, expanded service scenarios and enhanced the adaptability to regional markets.

---

# Discussion and Analysis

- **Operational support was strengthened.** Through the inclusive version of personal mobile banking, the Bank provided one-stop services for inclusive customer groups, including pre-lending consulting, business application, post-lending care, and value-added services, and continuously enhanced the user experience. With a broad network of over 15 thousand outlets, the Bank effectively provided inclusive financial services to better serve local customers and expand the boundaries of inclusive financial services.

- **The comprehensive service system was improved.** With the integration of the CFS system, the Bank improved the "Credit+" services with a focus on the varied needs of micro and small enterprises, thereby fully meeting the diverse needs of customers. Through the proprietary "ICBC Business Matchmaker" platform, the Bank provided global enterprises with one-stop, intelligent cross-border matchmaking services, including product display, demand release, supply-demand matching, policy updates and cross-border finance.

- **The foundation of risk management has been reinforced.** The Bank developed a full-process data-driven risk management model, featuring intelligent early warning, dynamic management, and continuous operation. It valued the collection of timely and truthful information, enhanced cross-verification between online and offline channels, and realized a combination of expert experience and model-based data and methodologies, thus making risk prevention more targeted and effective.

## Institutional Banking

- **The foundations were consolidated by further sharpening the edge in government finance.** The Bank provided solid agency services for public finance circulation, ranking first by the amount of centralized payments on behalf of the central government treasury. For seven consecutive years, the Bank received a "Double Excellence" rating for direct payment and authorized payment in the evaluation of centralized payment agents organized by the central government treasury under the MOF. The Bank continued to improve the quality and efficiency of social security-banking services, and successfully completed the unified national management project for pension schemes. The Bank launched the healthcare security e-wallet, the first of its kind, and completed the industry's first cross-provincial payment from the healthcare security account for its holder's family members. It ranked first in terms of either cooperation in mobile payment settlement of healthcare security funds or cooperation in healthcare security family wallet. Innovative financial services for public wellbeing were introduced. The Bank continued to promote such public service platforms as "ICBC Cloud Healthcare", "Intelligent Housing", "Intelligent Education" and "Digital Countryside", providing supportive financial services for boosting China's strength in education and science and technology, the Healthy China initiative and comprehensive rural revitalization. The Bank strengthened the GBC collaborative marketing, made progress in building an ecosystem, and developed solutions for various government service scenarios such as agency fiscal payments, holding of government bond proceeds, and development of social security and medical insurance ecosystems. These moves aimed to fully meet the needs of government agencies, industry players and individuals, and enhance the quality and efficiency of comprehensive services for the GBC ecosystem.

---

# Discussion and Analysis

The Bank kept to the right path while making innovations, persistently gaining momentum in interbank finance. The quality and efficiency of interbank business were enhanced. A promotion meeting under the theme of "Bank-Securities Cooperation in Five Priorities Supports High-Quality Development of the Capital Market" was held. "ICBC Securities Intelligent Connect", the market's first dedicated service plan for the securities industry, was launched. A package of FinTech output plans were improved to assist in the digital transformation of the financial industry and to help financial infrastructure clients promote cooperation in business innovation. In collaboratively serving the real economy, the bill brokerage service was available at all tier-two institutions with bill-holding customers. A total of over 22 thousand enterprises have been served, among which small and micro enterprises accounted for over 85%. The Bank enhanced scenario-based marketing of corporate insurance and improved the "Risk Management Solutions for Ten Industries", helping corporate customers forestall risks. Solid services were provided for the capital market by, for example, acting on the policy guidance on integrated reform for investment and financing of the capital market and consolidating the foundation of strengths in third-party depository and settlement cooperation for securities funds.

## Settlement and Cash Management

With a focus on treasury management, the Bank enhanced the leading role of treasury services in improving efficiency. Putting the "ICBC Global Treasury" brand at the core, the Bank improved the customer mix, increasing the value contribution and expanding the customer base. The Bank tapped deep into the evolving treasury management needs of customers, giving priority to scenarios such as multi-bank Bank-Enterprise Interconnection, cross-border cash management and bills management. The core functions including cloud-based treasury settlement, bills and cross-border operations were reengineered to expand the service ecosystem and increase the coverage of scenarios. Treasury services were provided for 15.5 thousand business conglomerates, covering over 300 thousand member entities of central and provincial state-owned enterprises as well as leading private enterprises.

With a focus on cross-border transactions, the Bank enhanced its leading position in global payment services. It deepened cooperation in global treasury management with four major customer groups, namely, central and state-owned enterprises, private enterprises, foreign-funded enterprises and financial institutions. The Bank advanced the development of the "ICBC Global Payment Services" ("IGPS") in greater depth, expanding its direct links in the Asia Pacific and Europe. The "IGPS" links were provided overseas in 140 countries and regions, including direct links available in 44 countries and 56 currencies. The number of "IGPS" customers exceeded 12.9 thousand, an increase of 23% compared to the end of the previous year. The Bank made the financial market infrastructure for global settlement that is more secure, efficient and convenient, exploring to develop a new system of global transaction settlement.

With a focus on supply chains, the upstream and downstream ecosystems were empowered. Under the product and service plans for supply chain customers, the Bank made coordinated efforts to build a platform for supply chain finance services. The influence of the platform was enhanced through multi-channel and multi-dimensional publicity at international exhibitions, including the China International Supply Chain Promotion Expo (CISCE). New service scenarios were created to address pain points of customers. In the downstream scenarios, the Bank developed intelligent online services for supply chain-related bank acceptance bill business in line with customer needs. In the upstream scenarios, the "Procurement Cloud + Account Management" solution was launched to expand the special-purpose fund supervision service. The financing scenarios were aligned with the ecosystems of central state-owned enterprises, enabling the online closed-loop operation of supplier financing.

---

# Discussion and Analysis

- **Innovation served as the engine for digital and intelligent transformation.** The infrastructure foundation made breakthroughs, further enhancing the product identity to customers. Product innovations were deepened for "ICBC Global Payment Services", "ICBC E Enterprise Payment", "ICBC e BillPay" and "ICBC Spare Money Management". The total transactions of "ICBC e BillPay" and "ICBC E Enterprise Payment" exceeded RMB2.5 trillion. Through the "ICBC Spare Money Management" service that combined receipts, management, disbursements and financing, the Bank maintained the lower-tier customer base and created financing, investment and lending opportunities, serving 1.07 million small and medium enterprises. Putting into practice the development strategy of settlement finance traffic monetization, the Bank converted corporate funds into deposits through the agency sales of wealth management products and innovative deposit products, thereby empowering high-quality development of settlement finance with enhanced product identity. The Bank took solid steps to implement the "AI+" Action Plan, leveraging new quality productive forces to empower the high-quality development of settlement finance. The "Dubhe Agent" and "Dubhe Answers" settlement finance AI advisory products were upgraded across the board. The "Dubhe Smart Data" settlement data assistant employed the LLMs to support multi-dimensional query of over 800 indicators.

- **Security underpinned the steady and sustained development of infrastructures.** The enterprise risk management system was further consolidated by conducting extensive consultation on mechanisms, reinforcing the lines of defense against risks and fostering the risk culture. The Bank strengthened anti-money laundering and anti-fraud governance, systematically reviewed the key products and distinctive products for money laundering and fraud risks, and upgraded the rigid control over high-risk products. The digital risk control capabilities made breakthroughs at a faster pace. The Bank deployed 33 risk control models for seven scenarios of key products, created a risk control platform for settlement finance, and developed multi-dimensional risk views for visualization.

- At the end of 2025, the Bank maintained 16,799 thousand corporate & institution settlement accounts, 2,473 thousand cash management customers and 13,652 global cash management customers. The volume of corporate & institution settlement business¹ ¹ The volume of corporate & institution settlement business refers to the total amount of debits and credits incurred in RMB-denominated corporate & institution settlement accounts. in 2025 reached RMB2,248 trillion.

## Investment Banking

- The Bank focused on strategic emerging industries, sci-tech innovation, and green development, and actively supported the implementation of key national strategies through "M&A+" full-process services. In line with a raft of incremental policies, the Bank accelerated the promotion of share buybacks and shareholding increase loan services to help restore market confidence and support the high-quality development of listed companies. By the number of M&A deals facilitated, the Bank continued to rank first in Refinitiv's ranking of "China Financial Advisers for Deals".

- The Bank launched the service brand "ICBC Sci-Tech Finance — Equity Services", aiming to meet the full-cycle equity service needs of technology enterprises with tailor-made products. The Bank promoted the orderly implementation of the AIC equity pilot business, continued to improve and promote its end-to-end advisory services for equity investment funds, and provided differentiated specialized and sophisticated solutions for venture capital firms, enhancing the level of comprehensive financial services.

- The Bank made all-out efforts to advance all-scenario services for corporate asset securitization and publicly-offered infrastructure REITs, empowering real economy enterprises to efficiently revitalize existing assets and spurring a virtuous cycle involving the utilization of existing assets and new investments. It further developed the restructuring advisory model and supported corporate debt risk mitigation and turnaround transformation.

- The Bank continued to consolidate its advantages in bond underwriting and served as the lead underwriter for 3,249 bond issuance projects domestically in 2025, with a total lead underwriting volume of RMB2.26 trillion. In pursuit of improvement of self-reliance and strength in science and technology, the Bank guided funds towards key areas. It underwrote 130 sci-tech innovation bonds, with an underwriting volume of RMB114.2 billion. Boosting the development of new quality productive forces, the Bank underwrote 298 ESG bonds, with an underwriting volume of RMB381.5 billion. Serving high-level opening-up, the Bank completed the lead underwriting of the first panda bond of a US issuer, and underwrote the first panda bond issued by an international development organization in Africa, the first panda bond of a UK issuer, and multiple "Belt and Road" sovereign panda bonds, among other benchmark projects. In 2025, the Bank underwrote 46 panda bonds for 28 issuers, with a total underwriting volume of RMB25.5 billion.

---

# Discussion and Analysis

## Bills

- The Bank effectively served the "Five Priorities", deeply developed supply chain finance, fostered an online all-channel network and strengthened support in key areas. It created an innovative bill product system composed of "ICBC Discount Series", "ICBC e Discount", "Bills Link Chain Series" and "Bills Insight Series". Making fresh headway in digital transformation, the Bank launched the "Bills Insight 2.0" AI contract review system, upgraded existing systems to roll out the "Stable Price Instant Discount 2.0", "ICBC e Discount 2.0" and "Bills Marketing One-Click", and successfully implemented the first supply chain bill discounting with limited recourse and the first discounting business on the Shanghai Commercial Paper Exchange comprehensive service platform.
- In 2025, the volume of discount bills reached RMB4.9 trillion, contributing an increase of 32.8% over the previous year, maintaining the leading position in the market for nine years in a row. The Bank was awarded "Excellent Integrated Bank", "Excellent Discount Institution" and "Excellent Trading Institution" by Shanghai Commercial Paper Exchange for the fifth consecutive year, covering both overall and specialized awards.

## Personal Banking

In 2025, with the aim of building a modern leading retail bank satisfactory to the people, the Bank followed the path toward "five transformations", and strove to achieve new accomplishments in risk prevention and control, product supply, digital and intelligent empowerment, service system and ecosystem infrastructure of personal banking.

- Intelligent risk control was enhanced to promote the in-depth integration of risk prevention and control with business development. Operational risks were strictly forestalled through regular review and assessment of policies and procedures. The risk management and internal control system became increasingly mature. The customer money laundering risk management system was refined, and the anti-money laundering capability was further enhanced. With targeted anti-fraud measures and simplified control procedures, the Bank helped customers avoid losses of approximately RMB7.7 billion, thereby effectively safeguarding the "wallets" of the people. The collective review and admission mechanism for commission-based distribution was refined, further enhancing the decision-making and risk control capabilities for the commission-based business. The centralized follow-up mechanism for commission-based business was improved, continuously boosting the suitability management of sales.
- The modern layout was refined to optimize and strengthen core businesses, such as savings and payment, with a focus on managing "fund flows". The Bank strengthened the base of deposits from payroll services, social security funds and merchants, introduced the innovative certificates of deposit featuring the solar terms, upgraded the "Zhi Cun Bao" agreement and provided comprehensive services for "investment, payment and repayment" scenarios. The savings deposit achieved a rapid growth and the costs of deposits were steadily lowered, providing sufficient low-cost funds for serving the real economy. The coordinated management of personal payment services was strengthened. The Bank launched the Mastercard "10+1" multi-currency debit card for domestic use, the first of its kind, the Chinese Zodiac Card and the AI Select Card.

---

# Discussion and Analysis

The Bank fostered the digital and intelligent driver, and enhanced the total factor productivity by implementing a number of key projects including digital infrastructure, intelligent marketing, AI empowerment and system integration. The Bank continued to build the Customer Identified Data Assembly (CIDA) and established a collaborative mechanism for data sharing and strategy consultation. The core capabilities of the "Intelligent Brain" were further enhanced, enabling the modeling of marketing strategies based on product-customer alignment, and recommending tailored products and services for individual customers. The Bank launched its first marketing AI agent "Gong Xiao Cai", building a marketing and customer maintenance model powered by human-machine collaboration. It accelerated the system integration and optimized the "Digital Intelligence Management & Operation" to build an agile and intelligent data service system.

The Bank advanced the comprehensive services, and fully integrated marketing events, customer returns and rewards, and domestic and overseas resources to provide customers with high-quality services. A multi-channel and multi-dimensional new mode of customer acquisition was built. An offline outreach marketing model was built and the marketing PAD was launched, in a bid to develop mobility-based bank sales units to meet outreach marketing needs. On the online front, a number of projects including Intelligent Canteen, Intelligent Campus, Gold Accumulation and solar photovoltaics were further replicated and promoted, and platform users were converted to customers. The Bank was the first to launch a unified customer rewards platform called "ICBC iBonus Point", significantly improving customer experience and marketing effectiveness. Taking the opportunity of serving the 15th National Games, the Bank fast-tracked the promotion of the "Payment Connect" product.

Expanding the business ecosystem, the Bank further implemented GBC+ projects and improved its ability to manage key customer groups. The Bank launched the "5+N" renewal project for payroll services, integrated payroll products across the board, and upgraded and promoted "ICBC Salary Manager 2.0", enhancing the competitiveness of payroll services. A new business model for individual merchants was developed to enable precise matching of products and customers and sophisticated management of costs. The "ICBC Aixiangban" service brand aiming at elderly customer groups was enhanced. The Bank became one of the first issuers of third-generation social security cards at all qualified prefecture-level cities, further broadening the coverage of social security card services. The Bank continued to expand the investment product range for personal pension plans, and kept upgrading investment and wealth management services, seeing an increasing rate of personal pension contributions. The young customer groups were expanded with a focus on key scenarios, taking up a larger share of the customer base.

The Bank was awarded the "Best Consumer Bank of China" by *Global Finance*, the "Best Digital Account Opening and Onboarding Service in Asia Pacific", the "Best Digital Wealth Management Initiative in Asia Pacific", the "Best Digital Savings Innovation in China" and the "Best Anti-Fraud Consumer Initiative in China" by *The Asian Banker*, and the "Best Ageing Finance", the "Wealth Intermediary Income Excellence Award" and other awards by *Retail Banking*. At the end of 2025, the number of personal customers served reached 782 million. Personal deposits reached RMB20,204,619 million, representing an increase of RMB1,663,109 million or 9.0%. Personal loans stood at RMB9,002,636 million, representing an increase of RMB44,916 million or 0.5%.

## Personal deposits
Unit: RMB millions

| Year | Amount |
| :--- | :--- |
| 2025 | 20,204,619 |
| 2024 | 18,541,510 |
| 2023 | 16,565,568 |

## Personal loans
Unit: RMB millions

| Year | Amount |
| :--- | :--- |
| 2025 | 9,002,636 |
| 2024 | 8,957,720 |
| 2023 | 8,653,621 |

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# Discussion and Analysis

## Personal Credit Business

**With keen insights into the real estate market** developments, the Bank steadily promoted balanced lending for new homes and home resales. Promoting the high-quality development of the entrusted provident fund loans, the Bank had a coverage rate of 91% in the cooperation with housing provident fund centers.

**The precision of product-customer alignment was** improved by innovating financial service models and strengthening the supply of consumer credit products in line with the needs of customer groups and scenarios. The Bank launched the "Academic Excellence Loan" tailored for new graduates and workers pursuing further education, the "Pilot e Loan" for pilots, and the "Ruyi Loan" and "Annuity Quick Loan" for the elderly. Such specialized products together shaped a product system covering various target customer groups and suitable for diverse consumption scenarios, effectively unlocking the potential for differentiated consumption. The work on government subsidy for personal consumption loans was implemented in an orderly manner. A total of about 1.90 million customers signed the subsidy service agreements, processing subsidy for over 30.00 million consumption transactions which were eligible for subsidy. This service effectively reduced the financing costs for residents and stimulated consumer demand.

**For personal business loans, the Bank strengthened** the supply in key areas and the innovation of scenarios. It pursued the high-quality development of the Housing Provident Fund Portfolio Loan, fully promoted the renewal loan service, and adopted product strategies such as offering more repayment methods to make products more competitive. The "Business Support Loan Package" was innovatively launched for self-employed individuals to meet their business operation and consumer financing needs. Focusing on the county-area economic clusters with distinctive local features and relying on the new digital finance model encompassing "ecosystem chains, industrial clusters and major platforms", the Bank exchanged data with external industrial platforms, actively promoted innovative credit products including "Cotton Grower Loan" and "Agro-guarantee Direct Link" and built a "product-scenario" service matrix in the agricultural field.

**The Bank was awarded the "Best Consumer Lending** Bank in China" for the second consecutive year by *Global Finance*.

## Wealth Management Business

**The Bank adhered to a people-centered value** orientation, and actively fulfilled the responsibilities of a major financial institution, to meet the people's aspirations for a better life through high-quality wealth management services, becoming a market leader in wealth management. The range of fund products was expanded under the "easy entry, strict selection" strategy. The number of newly launched mutual fund products this year increased significantly year on year. The Bank deepened cooperation with leading insurance companies, carried out targeted marketing on a quarterly rolling basis, and innovatively launched agency distribution of commercial pension products. Scenario-based innovative products including "Tian Tian Ying", "Zhi Xiang Huan" and "Fixed Investment in Wealth Management" were further promoted, with over 10 million customers holding wealth management products. At the end of 2025, the balance of personal financial assets under management ("AUM") reached RMB25.37 trillion, maintaining a leading position in the market.

**In the field of private banking, the CFS was** leveraged to provide services for customers across the service chain and value chain, empowering digital and intelligent transformation through the application of AI. The Bank continued to build a service system for scientists and entrepreneurs who are sci-tech innovators. It launched the "StellarIgnite" scientists service framework, upgraded the "Benefits Experience Package" for such entrepreneurs, and entered into cooperation with the associations for science and technology, universities, laboratories, and academician centers under the themes of technology finance, charity, and science popularization. The mobile banking charity account was launched to create a digital platform for charity finance, enabling a comprehensive display, integrated operation across all channels, and full-journey record of customers' charitable activities at the Bank. The Bank promoted the in-depth integration of pension finance and family wealth management, officially launched "ICBC Family Wealth Management" service brand, and regularly held charity-themed salon events. With the "Green Mountain" brand, the Bank developed a green product system, focused on the allocation of green bonds, carbon-neutral bonds, and other ESG assets, and guided social capital toward green industries.

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# Discussion and Analysis

## Bank Card Business

- The Bank was awarded the Golden Toad Award for the "Outstanding Wealth Management Bank" and the "Outstanding Wealth Management Product Sales Bank" by Lianhe Zhiping, the Golden Reputation Award for the "Excellent Wealth Management Bank" and "Excellent Bank Wealth Management Brand" by Pystandard, and the "Bank Wealth Management Service" Award at the 6th Banking Golden Bull Awards of the China Securities Journal. The Bank was awarded the "Best Private Bank in China (Mega)" and the "Charitable Trust Service of the Year in China" by *The Asian Banker*, the "Best Private Bank in China" by *The Asset*, and "China's Best Private Bank for International Network" by *Euromoney*.
- The Bank contributed to boosting domestic demand and consumer spending. It stepped up marketing, further implemented the "ICBC I Go" campaign to boost consumption, carried out the "I Go" Season and "trade-in" state subsidy programs and rolled out the "100 Cities and 10,000 Stores" and "I Go Global" promotional events. Actively serving the 15th National Games, the Bank carried out five series of promotional events under the theme of "Travelling with the National Games (NG)", namely, "Cashback NG", "I Go NG", "Vigor NG", "Passion NG" and "Light Up NG". The Bank introduced new products such as the ICBC European Travel Commission Co-brand Credit Card, strengthened marketing services for business cards, refined the "ICBC Member Benefits" reward system, improved the iBonus Point operation system, and added the function of redeeming Alipay accumulated bonus points and iBonus Points on JD.com for cash rebate. The Bank further implemented the GBC+ merchant marketing projects, enhancing the service capabilities of merchants through integrated marketing and scenario co-development. The "Instant Refund" departure tax refund service was promoted to better serve foreign consumers in China. The e-Life platform service capacity was enhanced by creating new sections for ride-hailing, air tickets and "trade-in" programs, and upgrading scenarios such as member benefits center, task center and cross-border services.
- Digital support was strengthened by consolidating the data asset foundation of credit cards, enhancing the integrated use of internal and external data and enriching customer profile insights, with more than 1,200 customer tags and quantitative models established. AI was further applied to empower merchant review, credit card marketing, and outbound marketing of installment services. Among them, the AI application in the merchant review scenario was awarded the "Beijing Exemplary Case of AI-Empowered Industry Development".
- At the end of 2025, the Bank had issued 1,320 million bank cards, an increase of 36.53 million cards. These included 1,175 million debit cards and 145 million credit cards. The balance of credit card overdrafts was RMB697,535 million. In 2025, ICBC debit cards registered a consumption transaction volume of RMB18.51 trillion, and credit cards registered a consumption transaction volume of RMB1.83 trillion.

## Asset Management Services

Actively seizing the new opportunities and fulfilling the new missions that high-quality financial development has brought to the asset management industry, the Bank provided more adaptive, competitive, and inclusive financial services to support the high-quality development of modern economic system and the growing demand for wealth management. At the product end, the Bank stayed committed to a customer-centered approach to meet customers' demands for wealth preservation and appreciation by improving the professionalism of financial services such as wealth management, funds, insurance, pension, etc. and providing a wide range of asset management products. On the investment side, it fully leveraged the license advantages of integrated subsidiaries by increasing investment support in areas such as advanced manufacturing, Specialization, Refinement, Differentiation and Innovation ("SRDI"), inclusive small and micro enterprises, sci-tech innovation, and green development, thereby contributing to the construction of a modern economic system.

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# Discussion and Analysis

In terms of wealth management, taking the clients’ wealth management needs as the anchor point, the Bank optimized the full range of product offerings, innovated scenario-based functions and services, adapted to the long-term investment policy orientation and the trend of diversified investment markets and accelerated development of the “fixed income+” business, delivering solid returns to investors with stable, reliable and leading performance of products. In terms of funds, the Bank enhanced the development of equity funds and continuously expanded the product lineup of sci-tech themed funds. It issued the first batch of floating-fee funds in the industry, actively implementing the requirements of the mutual fund fee reform. The Bank remained steadfast in long-term investment, value investment and long-term performance assessment, leading the industry by pension investment performance and staying at the forefront among peers by investment performance of equity funds and bond funds. In terms of insurance, the Bank leveraged the advantages arising from the large size, long terms and stable sources of insurance funds to foster patient capital. It provided high-quality financial support for major national infrastructures, sci-tech innovation and green and low-carbon transition. The total AUM steadily increased, with the investment performance ranking among the top tier of comparable peers.

## Wealth Management Services

- At the end of 2025, the balance of wealth management products reached RMB2,091,240 million, all of which were managed by ICBC Wealth Management. Please refer to the section headed “Business Overview — Comprehensive Operation and Subsidiary Management” for details on the business development of ICBC Wealth Management.

## Asset Custody Services

- The Bank enhanced the competitiveness of new financial infrastructures and continued to consolidate its leading advantage in the custody business. At the end of 2025, the total assets under custody of the Group reached RMB32.79 trillion. Among them, the assets under custody of domestic institutions in accordance with the Rules on Custody Business of Commercial Banks (Trial) stood at RMB27.12 trillion. The custody size of securities investment funds, insurance assets, pension funds, and QDIIs all remained at the top of the industry.
- The Bank additionally won the custody qualifications for 304 industrial funds, including the National Venture Capital Guidance Fund and the Jiangsu Social Security Sci-Tech Innovation Fund, which represented major milestones in serving new quality productive forces. The custody services have been going global at a faster pace. The third ICBC Custody Innovation Cooperation Forum was held to build a dialogue platform for domestic and foreign investors through the custody services as a bridge and the cooperative innovation as an engine.
- The custody services were digitally and intelligently transformed at a faster pace, with the artificial intelligence technology applied to over 100 custody service scenarios. The Bank strengthened the enterprise risk management of custody services, and improved the disaster recovery system to ensure the security and efficiency of custody operations. In 2025, the Bank’s asset custody services underwent no major risk events that violated laws and regulations.
- The brand value of “ICBC Custody” continued to rise. ICBC was awarded the “Best Mega Custodian Bank in China” by The Asian Banker, the “Best Custodian Bank, Onshore, China” and the “Best Custodian Bank-Insurance, China” by The Asset.

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# ASSETS UNDER CUSTODY OF DOMESTIC INSTITUTIONS AT THE END OF 2025

In RMB millions, except for percentages

| Type of assets under custody | Amount | Percentage (%) |
| :--- | :--- | :--- |
| Insurance assets | 9,430,570 | 34.8 |
| Securities investment funds | 5,246,478 | 19.3 |
| Pension funds | 3,803,231 | 14.0 |
| Bank wealth management products | 3,049,135 | 11.2 |
| Trust assets | 2,000,362 | 7.4 |
| Private investment funds | 1,287,678 | 4.7 |
| QDIIs | 886,545 | 3.3 |
| Assets of securities companies’ clients | 673,159 | 2.5 |
| QFIs | 478,181 | 1.8 |
| Assets of fund companies’ clients | 250,447 | 0.9 |
| Other products | 15,704 | 0.1 |
| **Total** | **27,121,490** | **100.0**

## Pension Services

- The Bank improved pension fund finance to fulfill its role as a main force in the national pension system. It improved the basic pension insurance service system, optimized the “ICBC e Social Security” online platform, provided comprehensive social security card services, and realized the “cross-provincial processing” services for social security cards available across the country. Leveraging its advantage of “full licenses” in pension fund trustee services, account management, custody, and investment management, the Bank continued to enhance the efficiency of annuity management and kept improving the long-term performance assessment mechanism. The managed annuities and investment returns ranked among the top in the industry. The Bank also supported the nationwide rollout of the private pension scheme by building a full-spectrum product portfolio, establishing convenient online and offline service channels, and becoming the first among peers to launch the “ICBC Easy Investment” private pension default investment service.

- The Bank strengthened financial services for pension services to better meet the elderly care needs of the people. It launched the “ICBC + Elderly Care Services” 2025 Action Plan, and took a wide range of steps to address key pain points in elderly care. The Bank further polished its “ICBC Aixiangban” brand service system aiming at elderly customer groups to promote senior-friendly payment services, and organized senior-friendly themed activities in various forms. It rolled out the project of developing tens of thousands of featured outlets with pension finance services, and improved the pension finance community platform to promote the “Happy Life Version” of mobile banking, and additionally issued risk alerts for large-value transfers to strangers to improve accessibility for elderly users. The Bank innovatively launched the “Ruyi Life” comprehensive elderly care solutions, providing one-stop solutions covering the four core scenarios of “financial planning, fund allocation, service guarantee and asset arrangement” focused on the lifecycle needs of customers. In addition, the Bank actively promoted financial literacy among seniors and safeguarded their consumer rights and interests.

- The Bank effectively advanced financial services for the elderly care industry to support the development of the silver economy. By optimizing the investment and financing policies for the elderly care industry and effectively allocating credit resources, it facilitated the large-scale, standardized, clustered, and brand-oriented development of the silver economy. The Bank established an elderly care industry financial support model backed by inclusive elderly care, elderly care industrial chain, and “Elderly Care+” industries, and improved the “Credit+” comprehensive financial services including investment and financing, account management, payment and settlement, and construction of digital and intelligent scenarios. It also promoted the “Silver Generation Industry Cloud” platform, the first of its kind in the industry, to help small and medium-sized elderly care institutions enhance their operating efficiency and digital capabilities.

- The Bank was awarded the “Bank of the Year for Pension Finance Innovation” by *The Economic Observer* and the “Case of the Year in Community-based Elderly Care Services” by the *China Times*.

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# Discussion and Analysis

## Financial Market Business

### Money Market Activities

**In terms of RMB operations**, the Bank gave full play to its role as a primary dealer, actively participated in monetary policy tool operations of the PBC, maintained the intensity of financing, continued to expand the range of counterparties, and efficiently passed through the moderately loose monetary policy. Giving a boost to the internationalization of the RMB, the Bank was one of the first to launch the innovative bond repo business in the interbank market under the “Northbound Bond Connect”, vigorously supporting the RMB demand of institutions from multiple regions. The Bank strengthened business risk control, improved the system functions and institutional systems, and enhanced the full-process risk management.

**In terms of foreign exchange operations**, the Bank closely monitored the monetary policy trends of major central banks around the world and changes in market liquidity, continued to strengthen its foreign currency liquidity reserves, and flexibly carried out various foreign exchange money market operations under the premise of safeguarding liquidity security to improve the efficiency of foreign-currency fund operations. As a responsible large bank, the Bank contributed to the healthy development of the domestic foreign-currency money market. It continued to act well as a quotation bank for interbank foreign-currency lending through the China Foreign Exchange Trade System, assisting in developing the domestic benchmark interest rate curve for USD lending.

## Investment

**In terms of RMB bond operations**, the Bank persisted in serving high-quality development of the real economy, and gave play to its role as the main channel for macro policy transmission and the main force in financial services as a large state-owned bank. It supported the implementation of the proactive fiscal policy and constantly consolidated and expanded its leading position in government bond business, providing strong fund support for China’s major strategies and major areas of development. The Bank continued to enhance the quality and efficiency of corporate bond investment for the real economy and support the growth of high-quality enterprises focusing on the real economy. Its investments covered fields related to national strategies and the industries vital to the national economy and people’s livelihood.

**In terms of foreign currency bond operations**, the Bank continued to strengthen the analysis of interest rates and credit, steadily engaged in diversified foreign currency bond investment, took solid steps to manage investment portfolios and increased the scale and income of bond investment. Giving an impetus to RMB internationalization, the Bank steadily advanced “Southbound Connect” bond investment and added momentum to the offshore RMB market activity. The Bank came in first among banking institutions in the selection in 2025 of “Top Investment Houses in Asian G3 Bonds” by *The Asset* for the second consecutive year, cementing and improving its market influence.

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# Discussion and Analysis

## Treasury Trading Business

- **In terms of foreign exchange settlement and sales and foreign exchange trading**, the Bank fully enhanced the quality and effectiveness of risk-neutral publicity. Publicity events were carried out in various forms and through multiple channels, and professional guidance was provided for enterprises on using exchange rate hedging tools, so as to help enterprises establish the concept of risk neutrality and effectively manage exchange rate risks. Focusing on the pain points and bottlenecks faced by cross-border enterprises, including difficulties in account opening, settlement and hedging, the Bank released the service plan for direct trading of currencies of Belt and Road countries and emerging markets. The Bank successfully handled the first domestic forward forex settlement/sale transaction in Brazilian real, and the first domestic corporate forex exchange/sale transaction in Zambian kwacha. It continued to expand the product lineup for online trading and the diversity of functions, and comprehensively improved the trading experience for customers.

- **In terms of corporate commodity derivative transactions**, the Bank actively sought opportunities for commodity hedging to meet the hedging needs of commodity traders in the real economy.

- **In terms of the over-the-counter ("OTC") bond business**, the Bank actively distributed OTC local government bonds to support regional development. The Bank won the "Excellent Underwriter Award for Over-the-Counter Circulating Bonds" and the "Excellent Underwriter Award for Over-the-Counter Local Government Bonds" granted by China Central Depository & Clearing Co., Ltd.

- **In terms of foreign institutional investors trading business in China's interbank market**, the Bank actively served foreign institutional investors from more than 60 countries and regions throughout the world, to meet their needs for investment and trading in China's interbank market. The Bank won the "Excellent Settlement Agent under Global Connect Business" and the "Excellent Contributors to International Business" granted by China Central Depository & Clearing Co., Ltd.

## Asset Securitization Business

- **The Bank took coordinated steps to promote asset securitization projects**, making the best use of the existing assets and enhancing the capacity of credit supply. In 2025, the Bank issued 15 non-performing asset-backed securities with a total amount of RMB11,168 million, representing a growth of RMB7,122 million or 176.0% from the previous year.

## Precious Metal Business

- **The Bank provided high-quality precious metal products and services.** In response to strong market demand, the Bank actively promoted investor education and increased the supply of various gold products to meet customers' needs for gold asset allocation. Another 263 outlets began to provide repurchase service in the year, effectively expanding the coverage and volume of physical gold repurchase services. The Gold Accumulation Products were launched on JD Finance and Alipay, further expanding customer service channels.

- **The precious metals leasing continued to grow.** The Bank expanded precious metal scenarios, optimized the term structure and enhanced support for the manufacturing industry. The Bank increased adaptive financial support for the development of a modern industrial system and met the silver demand of the green and low-carbon industry.

- **The Bank helped build Shanghai and Hong Kong SAR into international financial hubs.** It helped insurance funds to pilot investment in the SGE market, and facilitated the listing of gold contracts deliverable in Hong Kong SAR on the SGE International Board. The Bank established agency warehouses for the SGE Main Board in Hainan and Guangxi. The delivery warehouse (Shenzhen) for the SGE International Board carried out the warehousing business steadily.

- **The Bank retained the awards** such as the "Excellent Financial Member of the Year — First Prize" and "Best Anti-Money Laundering Member of the Year" granted by the SGE.

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## FinTech

The Bank played its part in boosting self-reliance and strength in science and technology, coordinated high-level security with high-quality development, improved the ECOS technology ecosystem, advanced the D-ICBC program, further implemented the "AI+" Action Plan, and unleashed the digital momentum at a faster pace to build the "Digital and Intelligent ICBC" oriented towards the future.

In 2025, the Bank ranked first among peers by number of disclosed patents and number of patent grants. The Bank was awarded the "Digital Bank of the Year in China" for 2025 by *The Asset* and the "Best Large Language Model Initiative in Asia Pacific" by *The Asian Banker*. The Bank became the only institution in the banking industry included in the National Data Administration's list of pilot projects for trusted data space innovation and development in 2025. It was also the only bank to obtain the highest-level certification across all capability domains in the business value-based Financial Digital Transformation Maturity Model (FDMM) Assessment by the China Academy of Information and Communications Technology (CAICT). The Bank's six sci-tech achievements won the PBC's "FinTech Development Awards", including the First Prize for two achievements.

## Strengthening Integrated Security of the Group

The Bank better prepared itself for worst-case scenarios, strictly controlled technology risks, ensured security of production and operation, optimized the cybersecurity defense system, built solid data security barriers, and supported sound business development with stable security.

- **The foundation of production security was further consolidated.** The availability of information systems remained above 99.99%, effectively ensuring the stable operation of information systems at critical time points and during disasters such as earthquakes and typhoons, providing strong support for the business continuity of domestic and overseas institutions and helping enhance the financial service capabilities.

- **The Group-wide security integration was deepened.** The Bank improved the security management mechanism, refined the responsibility system for cybersecurity and information security, ensured that cybersecurity officers were appointed at all overseas institutions and domestic subsidiaries, conducted capability assessments for key positions, and strengthened the security performance capabilities of all institutions. The Bank enhanced the efficiency of secure operations, upgraded the integrated platform for the online management of IT assets, production operations and management and cybersecurity posture at the Group level, significantly improving the Group's penetrative management capabilities. The Bank accelerated the pace of security enhancement, improved the defense in depth system, actively piloted the application of large language model (LLM) for cybersecurity, conducted penetration testing and assessment for outsourced internet applications and intrusion protection of branches and institutions, and strengthened attack-driven defense.

- **The business continuity assurance capacity was steadily enhanced.** The production management system was optimized to strengthen standardized management on a tiered and categorized basis. The Bank improved the emergency management system, conducted regular emergency drills, enhanced the emergency response capabilities and the long-term stable takeover capacity of the disaster recovery environment for core business systems, and strengthened the business continuity assurance capacity.

- **The data security governance mechanism was further refined.** The Bank improved the institutional framework for data security, deepened the tiered and categorized data protection, conducted regular data security risk assessments and emergency drills, and enhanced the technology-based protection capabilities for data security. Training and publicity were strengthened to continuously enhance all employees' awareness of data security protection.

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# Discussion and Analysis

## Deepening the Innovative Technology Application and Empowerment

The Bank leveraged sci-tech innovation as the engine to drive the digital technology ecosystem upgrades and convert technology research results into business value. The research and application of forward-looking technologies were stepped up to empower and expand business scenarios.

- **The technology architecture system was upgraded.** The Bank strengthened the top-level design of architecture transformation, and built the ECOS 2.0 digital technology ecosystem characterized by creating a resilient architecture, integrating intelligent data, ensuring security and control, developing cloud-based infrastructure, and achieving flexible agility. The technology roadmaps were iteratively optimized. New achievements were made in critical technologies. The transformation of the core system architecture entered a new stage. The domestic and overseas core systems became more self-supporting and risk-resilient across the board.
- **LLMs were further applied innovatively.** The inference performance of models per unit of computing power was enhanced. A heterogeneous computing power platform with unified scheduling was established to provide efficient, flexible and sustainable computing power support for business innovation. The "AI+" Action Plan was carried out. LLMs launched over 500 scenarios in more than 30 business fields, with AI digital employees handling the workloads of 55 thousand persons a year, significantly enhancing the efficiency through AI application.
- **The technological infrastructure construction was advanced.** The Bank steadily advanced green digital infrastructure, upgraded the Waigaoqiao Park of the Data Center and carried out the Xi'an Data Center construction project in an orderly manner. The Bank accelerated the evolution of the cloud platform technology system and the deployment of cloud-based infrastructure, and ensure that the information systems of all branches operated fully on the cloud platform. The data architecture system was upgraded, and an engineering implementation framework was developed with a focus on the alignment of corporate products and customers.

## Strengthening D-ICBC Development

The Bank fostered its digital momentum and leveraged digital finance to drive D-ICBC development, injecting digital and intelligent vitality into the real economy.

- **The digital platforms were iteratively optimized.** The three major external platforms became stronger. The mobile banking promoted the "GINO (Gong Xiao Zhi)" intelligent interaction features covering high-frequency scenarios such as transfers and wealth management. The number of mobile MAUs exceeded 290 million. The open banking promoted the "Digital Partner Nationwide Tour" program, strengthened the empowerment of key scenarios such as digital tax administration and industrial internet, expanded the service ecosystem for micro, small and medium-sized enterprises, and achieved continuous growth in the number of open banking partners. "ICBC e-Life" enriched the platform features and service ecosystem to cover new financial service scenarios such as air tickets, ride-hailing and trade-in. The three internal platforms were improved. "ICBC Counter Express" was extended to all domestic outlets, effectively supporting the lightweight operation of outlets. "Marketing Express" was upgraded. For the corporate customers, AI agents were used to build up core capabilities including customer insights and product recommendations and expanded marketing scenarios. For personal customers, the AI wealth assistant was launched to create a new model of human-machine collaboration and corporate WeChat marketing. "ICBC e Office" reduced workload and enhanced work efficiency of employees by deepening intelligent applications such as "Gong Xiao Ban".

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# Discussion and Analysis

- **New financial infrastructures were upgraded.** In terms of payment, all the e-CNY business smoothly shifted to the new measurement framework, facilitating the transition of e-CNY from an era of digital cash to that of digital deposit currency. In terms of settlement, "ICBC Global Payment Services" enabled direct settlement of local payments in 44 countries or regions abroad. In terms of clearing, the Bank was among the first institutions linked to the PBC's Cross-border Payment Connect, e-CNY cross-border payment platform and blockchain payment platform. It accelerated the promotion of the m-CBDC Bridge, seeing a continuous rise in the cross-border clearing size. In terms of custody, the Bank made solid progress in building the new-generation asset custody system, strengthened the support capabilities for global custody services and effectively enhanced the quality and efficiency of sovereign client services.

- **The digital management capacity was enhanced.** The Bank further digitalized risk management, strengthened the effort to build and promote the enterprise-level intelligent risk management platform covering nearly 300 decision-making scenarios for risk control, intensified the panoramic monitoring of risks and prevented risk spillovers. The Bank enhanced the quality and efficiency of comprehensive financial services, iteratively upgraded the digital functions of systems to empower the pilot program for the matching of corporate products and customers, and leveraged the Intelligent Brain platform to enhance the product suitability for personal customers. The Bank empowered the sophisticated management of assets and liabilities, and launched an intelligent decision-making hub to provide strong support for optimizing the asset and liability portfolios and making business decisions.

- **The data foundation was consolidated.** The Bank continued to enhance data governance, strengthened the development of the enterprise-level data center, established a Bank-wide unified indicator data system and achieved the unified management of over 70 thousand indicators. A data intelligence factory was built and data product shelves were developed to enhance the ability of data integration and application.

## Enhancing the Efficiency of Technology Governance

The Bank implemented the state's decisions and plans regarding sci-tech system reform and sci-tech talent development, strengthened the governance of technological foundation, improved the mechanism for sci-tech innovation, stimulated new vitality in the sci-tech talent pool, and continuously enhanced the responsiveness and capacity of financial innovation. In 2025, the Bank invested RMB28,588 million in FinTech.

- **The Bank refined the sci-tech innovation mechanism.** It improved the technology systems and mechanisms, gave full play to the multi-tiered review mechanism of the Digital Finance and Financial Technology Committee, and ensured the level and quality of scientific decision-making on major matters. The Bank solidified the governance of technological foundation and enhanced the governance of FinTech ethics to ensure technological innovation moved forward in lockstep with risk prevention and control. The Bank improved the sci-tech resources management system, completed the Group-wide promotion of the sci-tech resources management view and achieved integrated management of sci-tech resources at home and abroad. The Bank built an enterprise-level intelligent R&D platform that covers the entire research and development process, boosting the responsiveness of financial service innovation.

- **The Bank consolidated the technology and data talent pool.** The Bank established a Group-wide technology position tags system, and created a panoramic view of technology professionals. It gave full play to FinTech in business innovation, promoting two-way exchanges of technology personnel between the Head Office and branches, and facilitating the in-depth integration of technology and business. The tiered talent pipeline plan was improved to identify and cultivate technological leaders through the "Tech Elite" recruitment brand and sci-tech competitions. With an eye on long-term development, the Bank tilted the allocation of human resources towards key areas including artificial intelligence and cybersecurity, harnessing the FinTech development advantage. The Bank carried out advanced training for data analysts and organized the "Data Elite" practice project to enhance the ability to output data value and collaborative problem-solving skills, so as to boost the data momentum.

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# Discussion and Analysis

## Internet Finance

The Bank deepened the development of digital financial services and business systems, consolidated the competitive strengths in mobile banking, open banking and cloud banking, translating digital operations into tangible value and continuously improving the intelligent risk control capacity of online platforms. In 2025, digital business accounted for 99% of the total. The Bank retained the awards of the "Best Consumer Digital Bank in China" and the "Best Corporate/Institutional Digital Bank in China" granted by *Global Finance*.

New headway was made in mobile banking. In an ongoing effort to create a bank "By Your Side and As Your Trust" in the digital era, the "SmartEnjoy+1.0" new version of mobile banking was launched. The Bank enhanced the intelligent service capacity, provided scenario-based services in the form of intelligent conversational interaction, and introduced diverse financial products including "Tian Tian Ying No. 2". Based on the upgraded personal benefits service system of ICBC iBonus Point, the Bank launched comprehensive customer benefits such as financial value enhancement and everyday life discounts through integrated marketing campaigns. The core functions, such as payment process and credit card management, were optimized to facilitate personal consumption upgrading. The Bank strove to enhance the simple and light app experience, with its mobile banking app ranked among the top few in terms of ratings in both Apple and Huawei app stores. To strengthen elderly-friendly services and inclusive customer services, the Bank upgraded exclusive services such as the Inclusive Version, the Happy Life version, and the Pension Finance Section. The Bank built an online service system for county and rural customers, serving over 206 million online county-level and rural customers. At the end of 2025, the Bank had 630 million personal mobile banking customers and over 290 million mobile MAUs, both remaining No. 1 in the industry.

The Bank advanced financial services innovation in open banking scenarios. The Bank carried out the GBC+ "Digital Partner Long March" campaign. Integrated and customized financial services were provided across government, industry, public wellbeing, and rural service scenarios. Digital financial services were enhanced, including digital tax, industrial internet, online freight, digital agriculture and digital education. Based on the corporate internet (mobile) banking, the Bank further built the "finance + operation + management" digital ecosystem, continued to enrich the services in the "office, payroll, taxation, bills, legal affairs, information and catering" scenarios, and launched the "Operation + 1.0" platform for the operation ecosystem of micro, small and medium-sized enterprises. The sci-tech innovation version of the corporate internet banking was optimized to provide comprehensive financial service solutions for industrial internet platform enterprises and their scientists and engineers. Digital financial services reached over half of the SRDI enterprises across the country. At the end of 2025, the Bank had 18.94 million corporate internet (mobile) banking customers, with 8.36 million MAUs, ranking first in the industry in both customer base and activity.

The Bank promoted the digital and intelligent transformation of cloud banking at a faster pace. The AI agent "GINO (Gong Xiao Zhi)" for customer services was upgraded to innovate the customer interaction model. The Bank enhanced the efficiency of human-machine collaboration and customer service experience, staying ahead of peers in terms of intelligent voice service and text service routing rate. It won first place in all four projects of the 2025 Innovative Application Competition for Digital and Intelligent Transformation of Contact Center and Air Banking organized by the China Banking Association.

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# Discussion and Analysis

- The Bank systematically advanced the development of a digital operation system. The digital strategy AI capabilities of the "Zhike" platform were upgraded to enhance the quality and efficiency of maintaining the entire customer base and also retaining key customer groups and long-tail customers. The Bank strengthened the alignment of products with customers, achieved sophisticated management of customer groups, enhanced the adaptability and accessibility of digital financial services, and better met the financial service needs of customers. The Bank developed and promoted a WeCom-based new marketing service system, and further empowered grassroots employees in marketing and expanded customer services.

- The Bank enhanced the risk management of internet finance. The Bank promoted intelligent risk control on online platforms, dynamically optimized the risk control rule models, strengthened the application of new risk control technologies such as AI masks against unwanted facial recognition, device fingerprints and remote audio-visual, enhanced the see-through monitoring, identification and blocking of online risky transactions, and deepened the sharing of risk information and joint prevention and control, thereby effectively safeguarding customer funds. The Bank strengthened the business institutionalization, enhanced the content security management of mobile internet applications for financial services for customers and online platforms, and strengthened risk prevention and control of open banking and digital operations. It also strengthened anti-money laundering, anti-telecom fraud, data security management and customer information protection in internet finance, further carried out off-site monitoring of internet finance risks, and improved the business continuity management of online platforms, ensuring the security and stability of business operation.

- The Bank made steady progress in the e-CNY business. The Bank successfully implemented the reform of including e-CNY in the balance sheet for interest accrual, achieving a systematic upgrade from the cash-oriented Version 1.0 to the deposit currency-oriented Version 2.0. Scenarios were further expanded, with smart contracts widely applied in taxation, elderly care services, sports event services, and the development of prepayment supervision platforms. The Bank was among the first to create links with the PBC's e-CNY blockchain service platform, and successfully conducted the first transaction on the PBC's digital asset platform across the industry. The Bank vigorously innovated cross-border payment services, and took the lead in realizing the e-CNY payment for China-Singapore two-way trade. It supported customers in expanding cross-border trade settlements through mBridge and actively gave impetus to the internationalization of e-CNY operation. The Bank was awarded "Best Digital RMB Service Provider in China" by *The Asian Banker*.

## Outlet Building and Service Improvement

- The Bank took solid steps to promote the optimization of outlets. It made coordinated efforts to optimize the layout and structure of outlets, making financial services more convenient and accessible. In 2025, 474 outlets were optimized and adjusted, with 187 outlets relocated in major cities and 141 new outlets set up in county-level and township areas. The coverage rate of county-level outlets increased to 87.5%. The layout of outlets has been increasingly adaptable to regional socio-economic resources. At the end of 2025, the Bank had 15,434 outlets, 19,223 self-service banks, 72,026 intelligent devices and 47,017 automatic teller machines ("ATMs"). The transaction volume of ATMs reached RMB3,966.9 billion in the year.

- The Bank further transformed its outlets towards ecosystem-based livelihood services. The Bank continued to diversify the "ICBC Sharing Station+" scenarios, enhancing the capabilities of acquiring, engaging and retaining customers through these scenarios. A total of over 9,300 featured outlets with pension finance services were established. More than 3,000 "Station + Wealth" Entrepreneurs Service Centers were built. Over 100 "Station + Life" featured outlets with credit card scenarios were incubated. A series of "Cherish the Time" campaigns were carried out through the "ICBC Sharing Station" platform, benefiting more than 10 million members of the public.

---

# Discussion and Analysis

- The service level of outlets was further enhanced. In an ongoing effort to build a bank satisfactory to the people, the Bank identified 1,650 outlets providing star-rated high-standard services, which served as exemplary players for continuous improvements in service level. The Bank innovatively launched an online appointment-based door-to-door service model for elderly customers, providing them with more high-quality, efficient and considerate services. Sound financial services were provided for crucial periods such as the Spring Festival, the Asian Winter Games, the World Games and the National Games.

- The Bank facilitated the reform of outlet operations in depth. It continued to improve the functions of its next-generation outlet service platform, "ICBC Counter Express", promoted new models of remote online services, and supported remote processing of complex transactions, such as corporate account opening and personal foreign exchange transactions. Operating procedures were streamlined with a focus on account unlocking and wealth inheritance at outlets, so as to reduce the processing time. The user interfaces of intelligent devices were upgraded to enhance the interactive voice response (IVR) features of digital employees and improve the user experience. Outlet appointment services were promoted across the Bank, with improved customer identification and guidance.

- The Bank deepened the digital empowerment of operations. It launched the first in-branch LLM application of serving customers in China's financial sector, reshaping the business processing model of self-service terminals through conversational interaction. It was awarded the "2025 Best AI for Operational Process Automation Initiative in China" by *The Asian Banker*. The Bank innovated the electronic voucher service model, loaded unified accounting data standards onto digital invoices and electronic receipts, and sought to make the entire process digital and paperless. The Bank's Application Case of Electronic Voucher Accounting Data Standards was recognized as a typical case by the MOF. The Bank successfully completed the first batch of electronic confirmation trials in the securities industry, and became one of the first financial institutions to be announced as offering electronic confirmation services in the securities industry by the Securities Association of China and the China Banking Association.

- The Bank continued to enhance customer services and experience. It strengthened the digital management of customer experience, enhanced service issue monitoring through the Dual-voice Customer Experience Management System, conducted customer satisfaction evaluation, iteratively optimized product services, and improved the service quality and efficiency. The Bank promoted a new model of centralized, digital and intelligent processing of customer complaints in cloud banking, strengthened online problem resolution, online complaint mediation, and centralized processing of service tickets, and continued to enhance the ability to address customer demands online in a one-stop manner, effectively improving service levels.

- The Bank deepened omni-channel integration. While remaining customer-centric, the Bank continued to improve the omni-channel service matrix that balances proprietary and open channels and integrates online and offline services. This matrix focused on customer service platforms, including mobile banking, open banking and cloud banking, supplemented by digital service tools like WeCom, official accounts, applets and cloud outlets. Online and offline channels were integrated and mutually complementary to enhance the service system featuring "one-point access, all-channel response and digital synergy". Through channel integration and system connectivity, the Bank boosted the integration of operational capabilities and the coordination of service strategies, making customer services more targeted.

- The Bank coordinated the business continuity management across the board. The Bank continued to optimize the Group's business continuity management system, introduced external assessment management requirements, enhanced the disaster recovery capabilities of critical information systems and streamlined the Group's emergency response procedures. It strengthened the capabilities of monitoring, early warning and emergency response, and created a monitoring and early warning system covering key areas such as monitoring of outlet operation, enabling multi-dimensional monitoring of business continuity operations. The Bank improved the assessment and enhancement mechanism of the business continuity management system and conducted regular assessments, enhancements and audits of the business continuity management system.

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# Discussion and Analysis

## Human Resources Management, Employees and Institutions

### Human Resources Management

With the focus on high-quality development of operations, centering on key areas of business development and competition, the Bank allocated human resources in a coordinated manner and improved operating capability by enhancing the quality and efficiency of human resources. With a focus on the “Five Priorities” of technology finance, green finance, inclusive finance, pension finance and digital finance, the Bank enhanced the teams building of front-office marketing, credit risk control, technology, data and new forms of business, continuously improved the talent cultivation, motivation, and utilization mechanisms, strengthened performance capability of personnel, and strove to build a strong financial talent team that meets the requirements of building China into a country with strong financial sector. The Bank promoted in-depth integration of technology, data, and business talents, enhancing the level of sci-tech data empowerment for business development.

The Bank actively cultivated and practiced financial culture with Chinese characteristics, strengthened probity culture development in the new era, in order to provide cultural support for the high-quality development of the Bank. A symposium on financial culture with Chinese characteristics was held to systematically review experiences and practices of the Bank. The Bank developed training courses on financial culture with Chinese characteristics, and carried out rich and colorful cultural activities, guiding all employees to establish correct business ethics, performance views, and risk awareness. The Bank further developed probity culture education bases, produced a series of warning and educational films, developed courses of probity culture and carried out targeted and layered probity education, enhancing all employees’ awareness of probity and self-discipline and reinforcing their ability to resist corruption.

Focusing on implementing the “Cadre Education and Training Plan” in the new era, ICBC launched a series of key training programs, to effectively facilitate training of various levels and types, and continuously enhance the comprehensive quality and performance capability of cadres and employees. Aligning with the core mission of the “five transformations”, the Bank built a specialized training system, and implemented tiered, systematic, and practical programs. Emphasis was placed on deepening training for the core talent pool for the “Five Priorities” of technology finance, green finance, inclusive finance, pension finance and digital finance, to effectively support the transformation development of the Bank. A series of training programs were conducted for the “key few” of institutions at all levels, enhancing the dual-responsibility capabilities of leadership team members. The Bank strengthened integrity and self-discipline awareness among key positions and key area personnel, forging a clean and honest cadre team. Centered on the entire talent development lifecycle, the Bank constructed a comprehensive and systematic training system, implementing Global Leadership Development Program, “ICBC Star Program” for new employees and Outlet Heads Training Program, advancing the “Sword Sharpening Program”, “Elite Program”, and local employee market research training for overseas institutions, all of which were designed to foster the growth and professional development of cadres and employees. The Bank refined examination and certification mechanism and streamlined the exam items for tier-two branches, reducing the burden on the grassroots while empowering them. By advancing digital transformation of training and accelerating the development and sharing of high-quality training resources, the Bank continuously elevated the standardization and effectiveness of education and training.

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# Discussion and Analysis

## Remuneration Policy

The Bank adopted a remuneration policy that is in line with corporate governance requirements, in combination with high-quality development targets, in adaptation to the risk management system and talent development strategy, and well-matched with employees’ value contribution, so as to advance the sound operation and high-quality development of the whole bank. The Bank’s remuneration management policy was formulated and adjusted in strict accordance with applicable national regulations, regulatory requirements and corporate governance procedures. The Bank continuously optimized the remuneration resource allocation mechanism with value creation as the core, resolutely maintained a fair allocation concept of incentives commensurate with restraints, transmitted the Group’s strategic objectives for business management, and allocated more remuneration resources to the grassroots employees, for the purpose of mobilizing and inspiring the business vitality of institutions at all tiers.

The Bank’s employee remuneration consisted of basic remuneration, performance-based remuneration and welfare income. In particular, the basic remuneration depended on an employee’s value contribution and ability to perform duties, and the performance-based remuneration was based on the overall situation of the Bank, the employee’s institution or department, and the employee’s personal performance measurement results. Meanwhile, the performance-based remuneration to the Senior Management and employees in positions that have a significant influence on risks was subject to a deferred payment and recourse deduction mechanism, so as to balance risks and incentives. For employees who violated regulations and disciplines or had abnormal exposure to risk losses within their duties, their performance-based remuneration for the corresponding period shall be deducted, withheld and recovered according to the severity of the violation. During the reporting period, according to relevant measures, the Bank deducted, withheld or recovered payment of corresponding performance-based remuneration to employees who were subject to disciplinary action or other treatments due to violation of regulations and disciplines or abnormal exposure of risk losses within their duties.

The Bank’s 2025 remuneration plan was prepared and implemented as per the internal decision-making process. The execution of total annual salaries was reported to the authority for filing according to national regulations. During the reporting period, the Bank’s Senior Management fulfilled the indicators concerning economic, risk and social responsibilities well, and the final results will be determined after deliberation by the Board of Directors.

## Basic Information on Employees and Institutions

As at the end of 2025, the Bank had a total of 409,758 employees, including 6,559 employees in domestic subsidiaries, and 15,439 in overseas institutions. The Bank’s employee gender ratio and age distribution remained balanced, and the educational backgrounds and professional experience demonstrated diversity, showing no significant change from the end of last year. The Bank respects the individual differences among employees and attaches great importance to the rationality and inclusiveness of the staff composition. It will continue to pay attention to the composition of its employees in terms of gender, age, educational background and professional experience, strengthen tracking and monitoring in areas such as personnel exit and recruitment, and take effective measures to maintain an overall balance in staff structure.

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# Discussion and Analysis

## Structure of employee educational background
- Doctorate: 0.2%
- Master: 14.4%
- Bachelor: 68.3%
- Associate: 13.6%
- Below associate: 3.5%

## Structure of employee age
- Below 30 years old: 27.3%
- 31-40 years old: 28.8%
- 41-50 years old: 20.1%
- Above 51 years old: 23.8%

## Structure of employee gender
- Female: 52.0%
- Male: 48.0%

## Structure of employee specialization
- Personal banking: 40.7%
- Corporate banking: 15.3%
- Operation and comprehensive support: 15.2%
- Operation management: 9.9%
- FinTech: 9.8%
- Risk and compliance management: 6.3%
- Emerging business: 1.6%
- Non-banking business: 0.9%
- Others: 0.3%

As at the end of 2025, the Bank had a total of 16,246 institutions, representing a decrease of 137 as compared with the end of the previous year. Among them, there were 15,836 domestic institutions and 410 overseas ones. Domestic institutions included the Head Office, 37 tier-one branches and branches directly managed by the Head Office, 463 branches in capital cities and tier-two branches, 15,179 outlets, 22 institutions directly managed by the Head Office and their branches, and 134 controlled subsidiaries and their branches.

## GEOGRAPHIC DISTRIBUTION OF ASSETS, INSTITUTIONS AND EMPLOYEES AT THE END OF 2025

| Item | Assets (in RMB millions) | % of total assets | Number of institutions | % of total institutions | Number of employees | % of total employees |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Head Office | 6,422,934 | 12.0 | 23 | 0.1 | 22,407 | 5.5 |
| Yangtze River Delta | 14,825,133 | 27.7 | 2,491 | 15.3 | 60,440 | 14.8 |
| Pearl River Delta | 9,125,421 | 17.1 | 1,919 | 11.8 | 46,891 | 11.4 |
| Bohai Rim | 8,087,272 | 15.1 | 2,629 | 16.2 | 64,178 | 15.7 |
| Central China | 6,184,419 | 11.6 | 3,355 | 20.7 | 73,535 | 17.9 |
| Western China | 6,909,241 | 12.9 | 3,552 | 21.9 | 81,615 | 19.9 |
| Northeastern China | 1,836,510 | 3.4 | 1,733 | 10.7 | 38,694 | 9.4 |
| Overseas and others | 4,870,964 | 9.1 | 544 | 3.3 | 21,998 | 5.4 |
| Eliminated and unallocated assets | (4,784,121) | (8.9) | | | | |
| **Total** | **53,477,773** | **100.0** | **16,246** | **100.0** | **409,758** | **100.0** |

Note: Overseas and other assets include investments in associates and joint ventures.

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# International Operation

In the global operation with international perspective, the Bank has made constant efforts to improve its operation system both in and outside China, integrating local and international currencies. Leveraging on its global operation edge, the Bank has been constantly sharpening cross-border financial services, with a view to supporting high-quality implementation of the Belt and Road Initiative and China’s high-level opening-up.

- The Bank further served the high-level opening-up of China. It optimized comprehensive financial services for cross-border e-commerce and other new forms of business, and launched the “Chunrong Action 2025” and “ICBC e Trade” new-form foreign trade service system. It also led the industry in launching cross-border coordination solutions for cross-border e-commerce payment collections by small and micro enterprises, launched the overseas version of the Cross-border e-Business Connect, in a bid to build a “self-supporting, risk-controllable, secure, and efficient” cross-border payment system. The Bank continued to promote the “single window” financial services for customs clearance and boosted trade facilitation, handling USD6,481 million of cross-border remittances in 2025. The Bank satisfied foreign exchange customers’ cross-border integrated financial service needs in an all-round way, promoted the structural diversification of foreign investment and foreign trade customers, provided global comprehensive services for foreign-invested enterprises across the entire capital chain and all financial scenarios, and helped attract more long-term capital to develop business in China. The Bank continued to improve the joint prevention and control mechanism for international banking risk management, steadily advanced product-customer-risk matching management and effectively promoted the high-quality development of foreign exchange business in a secure and prudent manner.

- The Bank supported the construction of a new development pattern and promoted the internationalization of the RMB. The Bank continued the “Chunxu Action” to provide solutions for global market participants in cross-border RMB business such as cross-border settlement, investment and financing as well as risk management. Innovative services were provided to meet the business needs of multinational companies in trade settlement and treasury management, thereby helping attract and utilize foreign capital on a greater scale. The Bank was authorized to act as a RMB clearing bank in Turkey, increasing the number of its overseas RMB clearing houses to 12. The Bank fully leveraged the active role of clearing banks in cultivating offshore RMB market, continuously strengthened the construction of clearing infrastructure, enhanced clearing service capabilities, and supported steady development of the offshore RMB market. Serving high-quality development of free trade zones, the Bank became the first bank to cover FT accounts in all five free trade zones in Shanghai, Hainan, Guangdong, Shenzhen and Tianjin. In 2025, the Bank’s cross-border RMB business exceeded RMB10 trillion.

- International cooperation was enhanced continuously. As the chair of the BRICS Business Council Chinese Chapter, the Bank lived up to its responsibilities and effectively served the multilateral cooperation among BRICS countries. The Bank has been facilitating the upgrading of China-Europe economic and trade relations relying on China-Europe Business Council (“CEBC”). The Bank strengthened the Belt and Road Bankers Roundtable (“BRBR”) mechanism to promote high-quality development of the Belt and Road. The Bank held the ASEAN-China-Japan-ROK Industrial Chain and Supply Chain Matchmaking Conference to promote regional collaboration and the sustainable development of industrial chains and supply chains. The Bank actively served international exhibitions, including China International Import Expo, China Import and Export Fair, China International Fair for Trade in Services and China International Supply Chain Expo, to facilitate high-level opening up.

- Global network was developed, strengthening cross-border financial servicing capacity. As at the end of 2025, the Bank had been operating 410 overseas institutions in 49 countries and regions, together with further 21 African countries through shareholding in the Standard Bank Group. In total, the Bank had 250 institutions in 30 Belt and Road Initiative participating countries. The Bank also entered into business relationships with more than 1,400 foreign banks in 144 countries and regions. Its service network has full coverage of six continents and key international financial centers around the world.

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# Discussion and Analysis

A momentum of stable growth was sustained by overseas operations amidst complicated challenges, with solid progress made in the "five transformations". The Bank continuously enhanced global financial service capabilities in terms of corporate loans, investment banking and asset management, financial markets, settlement and clearing, asset custody and retail finance. It strengthened integrated marketing both in and outside China with RMB and foreign currencies, thereby improving the global financial service system for customers.

## MAJOR INDICATORS FOR OVERSEAS INSTITUTIONS

| Item | Assets (in USD millions) At the end of 2025 | Assets (in USD millions) At the end of 2024 | Profit before taxation (in USD millions) 2025 | Profit before taxation (in USD millions) 2024 | Number of institutions At the end of 2025 | Number of institutions At the end of 2024 |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: |
| Hong Kong SAR and Macao SAR | 214,772 | 206,670 | 759 | 1,126 | 105 | 96 |
| Asia-Pacific Region (except Hong Kong SAR and Macao SAR) | 164,240 | 144,381 | 1,803 | 1,700 | 87 | 88 |
| Europe | 105,933 | 87,152 | 1,025 | 771 | 64 | 70 |
| America | 56,436 | 40,157 | 261 | 349 | 153 | 153 |
| African Representative Office | — | — | — | — | 1 | 1 |
| Eliminations | (54,139) | (44,509) | | | | |
| **Subtotal** | **487,242** | **433,851** | **3,848** | **3,946** | **410** | **408** |
| Investment in Standard Bank⁽¹⁾ | 4,373 | 3,692 | 558 | 456 | | |
| **Total** | **491,615** | **437,543** | **4,406** | **4,402** | **410** | **408** |

Note: (1) The assets represent the balance of the Bank's investment in Standard Bank and the profit before taxation represents the Bank's gain on investment recognized by the Bank during the reporting period.

As at the end of 2025, total assets of the Bank's overseas institutions (including overseas branches, overseas subsidiaries and investment in Standard Bank) were USD491,615 million, representing 6.4% of the Group's total assets. Specifically, total loans amounted to USD187,631 million, and due to customers was USD184,135 million. Profit before taxation during the period was USD4,406 million, accounting for 7.3% of the Group's profit before taxation.

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# DISTRIBUTION OF OVERSEAS INSTITUTIONS

## Hong Kong SAR and Macao SAR
### Institutions (country/region)
- Hong Kong Branch (Hong Kong, China)
- ICBC (Asia) (Hong Kong, China)
- ICBC International (Hong Kong, China)
- ICBC (Macau) (Macao, China)
- Macau Branch (Macao, China)

## Asia-Pacific Region (except Hong Kong SAR and Macao SAR)
### Institutions (country/region)
- Tokyo Branch (Japan)
- Seoul Branch (South Korea)
- Busan Branch (South Korea)
- Mongolia Representative Office (Mongolia)
- Singapore Branch (Singapore)
- ICBC (Indonesia) (Indonesia)
- ICBC (Malaysia) (Malaysia)
- Manila Branch (Philippines)
- ICBC (Thai) (Thailand)
- Hanoi Branch (Vietnam)
- Ho Chi Minh City Representative Office (Vietnam)
- Vientiane Branch (Lao PDR)
- Phnom Penh Branch (Cambodia)
- Yangon Branch (Myanmar)
- ICBC (Almaty) (Kazakhstan)
- Karachi Branch (Pakistan)
- Mumbai Branch (India)
- Dubai (DIFC) Branch (UAE)
- Abu Dhabi Branch (UAE)
- Doha Branch (Qatar)
- Riyadh Branch (Saudi Arabia)
- Kuwait Branch (Kuwait)
- Sydney Branch (Australia)
- ICBC (New Zealand) (New Zealand)
- Auckland Branch (New Zealand)

## Europe
### Institutions (country/region)
- Frankfurt Branch (Germany)
- Luxembourg Branch (Luxembourg)
- ICBC (Europe) (Luxembourg)
- Paris Branch (France)
- Amsterdam Branch (the Netherlands)
- Brussels Branch (Belgium)
- Milan Branch (Italy)
- Madrid Branch (Spain)
- Warsaw Branch (Poland)
- Greece Representative Office (Greece)
- ICBC (Macau) Lisbon Representative Office (Portugal)
- ICBC (London) (UK)
- London Branch (UK)
- ICBC Standard Bank (UK)
- Bank ICBC (JSC) (Russia)
- ICBC Turkey (Türkiye)
- Prague Branch (Czech Republic)
- Zurich Branch (Switzerland)
- ICBC (Austria) (Austria)

## America
### Institutions (country/region)
- New York Branch (USA)
- ICBC (USA) (USA)
- ICBC (Canada) (Canada)
- ICBC (Mexico) (Mexico)
- ICBC (Brasil) (Brazil)
- ICBC (Peru) (Peru)
- ICBC (Argentina) (Argentina)
- ICBC Investments Argentina (Argentina)
- Inversora Diagonal (Argentina)
- Panama Branch (Panama)

## Africa
### Institutions (country/region)
- Investment in Standard Bank (South Africa)
- African Representative Office (South Africa)

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# Discussion and Analysis

## Comprehensive Operation and Subsidiary Management

The Bank remained committed to serving national strategies and the real economy, focused on main business, refined specialized business, and formed a multi-field integrated development layout covering fund, leasing, insurance, debt-for-equity swap, wealth management, FinTech, overseas investment banking, etc., making comprehensive financial services increasingly adaptive, competitive and inclusive.

The Bank continued to refine the Group’s integrated governance system, and built an integrated domestic subsidiary management system focusing on “preventing risk, enhancing compliance and promoting development” to further improve the management efficiency of the headquarters of the Group. Domestic subsidiaries were caused to integrate Party building with corporate governance in depth. All subsidiaries optimized the corporate governance mechanism, giving full play to the performance efficacy of their boards of directors and building their core competitiveness. Meanwhile, the Bank optimized the strategic evaluation mechanism and promoted deep and accurate transmission of the Group’s strategy to subsidiaries. The Bank coordinated the diversified operation strategy with the internationalization strategy. The “subsidiary-specific policy” strengthened subsidiary planning management and enhanced business coordination. The Bank completed the integration of relevant businesses, assets and liabilities of Bank of Jinzhou in compliance with laws and regulations. Subsidiaries were guided toward the “five transformations” and “Five Priorities” to further boost their ability to serve customers, create value and compete with other market entities.

The Enterprise Risk Management System covering the risk characteristics of integrated subsidiaries was refined. Based on the risk management route of “comprehensive management, active prevention and smart control”, the Bank intensified the coordinated management of “9+X” categories of risks, fully implemented the “Five-pronged Risk Management Approach”¹ ¹ “Five-pronged Risk Management Approach” refers to the unified risk management approach to domestic and overseas institutions, on- and off-balance sheet businesses, commercial banking & investment banking and other businesses, online and offline businesses, the Head Office and subordinated institutions. It pressed ahead with IT development, data governance and digital and intelligent transformation of subsidiaries, empowering business transformation and high-quality development. The Bank enhanced consolidated management, authorization management and see-through management of subsidiaries, strengthened systematic, standardized and intelligent management of equity investment information. Meanwhile, the Bank stepped up efforts in the building of the three lines of defense of subsidiaries, improved risk prevention & control and internal control and compliance capabilities of subsidiaries, and pursued prudent operation and high-quality development.

### ICBC UBS Asset Management

ICBC UBS Asset Management is primarily engaged in various asset management businesses (including mutual funds, pension funds, separately managed accounts, special portfolios and cross-border services) and such other businesses as approved by CSRC. It is one of the “fully qualified” fund companies in the industry.

- The Bank actively served the wealth management needs of the people. It continued to enhance the professional capabilities in investment research, with investment performance of equity funds and bond funds remaining at the forefront among major peers, and was awarded the “Golden Bull Award for Fund Management Company” at the 22nd Golden Bull Awards held by *China Securities Journal*. ICBC UBS Asset Management improved investor services and deepened investor protection and investor education, still evaluated as excellent in the assessment of the national securities and futures investor education base. It actively implemented the fee reform requirements of mutual funds, continued to reduce fund fees and pass on benefits to investors, and launched the “ICBC Hong Yu Return”, one of the first approved funds with floating management fee rates.
- ICBC UBS Asset Management actively served the capital market reform and the development of new quality productive forces. It strengthened the development of equity funds and achieved rapid growth in passive equity products such as ETFs, injecting vitality into the capital market development. It strengthened long-term investments and value investments, with stock investments expanding by nearly 60% compared to the previous year. In alignment with national strategies and industrial upgrades, ICBC UBS Asset Management stepped up investment support for technology finance and green finance, which saw an increase in both balance and share of investment.

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# Discussion and Analysis

- **ICBC UBS Asset Management** actively served the development of the pension security system and the stable growth of pension funds. It strengthened the development of the three-pillar pension investment management including social security, annuities and private pension. It enhanced the pension customer service capabilities, improved investment performance and vigorously attracted long-term funds. The pension investments under management exceeded RMB1.2 trillion, leading the industry by investment performance.
- At the end of 2025, **ICBC UBS Asset Management** managed 272 mutual funds and 653 annuities, separately managed accounts and special portfolios, with assets under management totaling RMB2.37 trillion.

## ICBC Leasing

ICBC Leasing is mainly engaged in the financial leasing of large-scale equipment in key areas such as aviation, shipping, energy and electric power, rail transit, equipment manufacturing and SRDI enterprises. It provides a range of financial and industrial services such as the transfer of leasing assets, asset trading and asset management.

- **ICBC Leasing** further improved the "One Core, Two Wings" layout of the aviation business, consolidating its global leadership in aircraft leasing. It further boosted its strategic synergy with Commercial Aircraft Corporation of China, ranking first by both the orders and deliveries of C919 and C909 domestic aircraft among commercial aircraft leasing companies, and facilitating the global commercial operation of Chinese-made aircraft. ICBC Leasing entered into the operating lease business for aircraft engines with several domestic airlines, creating the first large-scale civil aviation backup engine depot in China. ICBC Leasing worked together with local enterprises in the low-altitude economy sector to explore the development path for homegrown low-altitude aircraft, created a sales, operation and valuation system, developed a first-mover advantage in the blue-ocean market of financing lease for manned low-altitude aircraft, and enhanced the capability of aviation finance services in all scenarios.
- **ICBC Leasing** enhanced its professional strengths in the shipping sector. It injected financial resources into the shipbuilding industry chain, providing all-round support for the export of high-end vessels. It pressed ahead with the shipping finance business in the context of RMB internationalization, and implemented a number of landmark projects. It acted on the philosophy of green development, served the carbon neutrality drive of the International Maritime Organization (IMO), and supported the development of green ship technologies. ICBC Leasing followed up on updated plans for capacity expansion of central and state-owned enterprises in the shipping industry, promoted the transformation and upgrading of domestic vessels, and took concrete actions to support Chinese shipbuilding industry and shipping industry.
- **ICBC Leasing** scored multiple breakthroughs in the transformation of the domestic sector. It further expanded its presence in strategic emerging industries of the country, such as integrated circuits and energy storage batteries, and entered into customized cooperation with major internet companies in new infrastructure development. ICBC Leasing expanded support for the emerging energy storage market within the green energy industry chain, and implemented its first geothermal project. In the fields of advanced manufacturing and sci-tech innovation, it provided targeted support for key links of the information industry chain, and supported the growth of high-quality enterprises including SRDI enterprises and "Little Giants" firms, high-tech enterprises, gazelle companies, and individual manufacturing champions.
- **ICBC Leasing** supported the development of Hainan Free Trade Port. ICBC Leasing opened its management-oriented project company before Hainan Free Trade Port launched the island-wide independent customs operation. It delivered three aircraft and signed contracts for nine bulk carriers in 2025. The "ship leasing + factoring" business was named a case of financial service innovation in Hainan Free Trade Port.
- In 2025, **ICBC Leasing** won the "Tengfei Award — Most Influential Financial Leasing Company of the Year" at the Global Leasing Industry Competitiveness Forum, and was named one of the "Top 50 Green Leasing Companies in China" by the Shanghai Leasing Industry Association.

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# Discussion and Analysis

## ICBC-AXA

ICBC-AXA operates various insurance businesses such as life insurance, health insurance and accident insurance, as well as reinsurance of the aforesaid businesses, businesses permitted by national laws and regulations to use insurance funds and other businesses approved by regulatory authorities.

- **ICBC-AXA expanded its product offerings across the board.** Focusing on the diverse needs of customers, it accelerated the transition to variable-return products and developed a diverse matrix of participating insurance products that covers all channels. It further innovated the pension finance products and vigorously developed the personal pension business. It launched the long-term care insurance product "Sheng An Kang", filling the gap in the long-term care insurance market. ICBC-AXA consolidated its protection-oriented product line, and expanded the supply of critical illness, medical care and other health protection products to meet customers' various risk protection needs.
- **ICBC-AXA enhanced the quality and efficiency of customer services.** It built a "2+N" value-added service system for health and elderly care products centered on "Yu Wei Lai" and "Sheng Hua Nian". The "Yu Wei Lai" service reached nearly one million customers. The "Sheng Hua Nian" service covered nearly 80 thousand people, and the cooperative elderly care organizations expanded to 18 locations in 13 cities. ICBC-AXA upgraded the diverse and multi-tiered customer benefits system covering all scenarios, benefiting the broadest customer base. It deeply participated in the development of the "Insurance Code" platform to enhance customer service experience.
- **ICBC-AXA made progress in the "Five Priorities" of finance.** In the field of pension finance, the commercial insurance annuity business developed rapidly, with the regular premium increasing by 19 times year on year. In the field of inclusive finance, ICBC-AXA developed exclusive gift insurance schemes and accelerated implementation of the Huimin Insurance program. In the field of technology finance, it gave priority to industries with new quality productive forces, boosted the synergy of investments across all products, and increased investment in technology finance. In the field of green finance, it deepened green operations, increased investments in the green sector, and enriched the system of green insurance asset management products. In the field of digital finance, it successfully launched the "ICBC Intelligent Insurance" policy diagnosis and configuration recommendation system, effectively enhancing the insurance allocation capabilities and service efficiency of the sales team. The "SmartWin Outlets" project was awarded the "Outstanding Digital Insurance Project of the Year" at the 2025 Golden Insurance Awards.

## ICBC International

ICBC International is a wholly owned subsidiary of the Bank in Hong Kong SAR, China. Its business scope covers sponsorship and underwriting for listing, underwriting for bond issuance, financial consulting, direct investment, sales and trading, asset management, market research, etc., and it provides all-round cross-border comprehensive financial services for corporate and personal customers.

- **Focusing on its major responsibilities and core businesses, ICBC International strove to shape a "five-in-one" business landscape featuring balanced and coordinated development of investment banking, sales and trading, investment, asset management and investment research services.** ICBC International was deeply involved in building Hong Kong SAR into an international financial hub. In 2025, ICBC International completed two Hong Kong IPO sponsorship projects and 37 Hong Kong IPO underwriting products, and participated in 126 bond underwriting projects. The size of green bond underwritings hit a record high. Seizing the strategic opportunities in RMB internationalization, ICBC International systematically upgraded the service framework for trading-based financial products. The securities brokerage business maintained its competitiveness among peers. ICBC International closely followed the national strategic guidance and the development direction of key industries to meet the investment and financing demands in sectors such as information technology, advanced manufacturing, biomedicine and green shipping. It gradually enriched the cross-border asset management product service system, with a focus on promoting direct investment, separately managed accounts and investment advisory services in the China interbank bond market, and accelerated the development of business such as funds of funds (FOFs) and alternative asset management. Unleashing its strengths in investment research, ICBC International launched its "ICBC International New Quality Productive Forces Stock Index" on Wind and Bloomberg terminals, making the index increasingly influential in the market.

---

# Discussion and Analysis

- In 2025, ICBC International won the "Best Bond Advisor in Hong Kong" award from *The Asset* for six consecutive years, the "Good MPF Employer Award" from Hong Kong's Mandatory Provident Fund Schemes Authority for five consecutive years, and the "Best Bond Bank in Asia-Pacific" from *Global Finance* for the first time.
- In 2025, ICBC Investment was named one of the "Top 30 China Private Equity Limited Partners in 2025" by CVINFO, and also awarded the "Best Partner of 2025" by the Beijing Stock Exchange.

## ICBC Investment

ICBC Investment is one of the first institutions in China to pilot debt-for-equity swaps of banks. It holds the franchise license of non-bank financial institution and is mainly engaged in debt-for-equity swaps and supporting businesses, and carries out pilot equity investment through affiliates.

- By giving full play to its debt-for-equity swap license and professional expertise and focusing on the two major tasks of serving the real economy and preventing and defusing financial risks, ICBC Investment strengthened the bank-corporate cooperation and the investment-lending coordination, improved integrated financial services that combine equity and debt, enriched the varieties of debt-for-equity investment plans and private equity fund products, and made steady progress in the quality development of market-based debt-for-equity swap businesses. Meanwhile, ICBC Investment greatly supported enterprises in reducing and stabilizing leverage, enhancing strength, and promoting reforms. It continuously enhanced the ability and effectiveness of risky asset disposal across the Group, played an active role in the formulation of corporate debt restructuring, debt-for-equity swap plans and reorganization plans, standardized corporate governance and production & operation activities, helped enterprises tide over difficulties through reform and continuously improved the asset quality of banks. It actively promoted pilot equity investment and continued to strengthen its support for sci-tech innovation enterprises, leading the industry in both fund size and project investment volume. Further playing its active role as a shareholder, ICBC Investment dispatched directors and supervisors to the debt-for-equity swap enterprises according to law, got deeply involved in the corporate governance, and promoted the healthy and sustainable development of such enterprises.

## ICBC Wealth Management

ICBC Wealth Management mainly engages in the issuance of wealth management products, wealth management advisory and consulting services as well as other activities approved by the NFRA.

- ICBC Wealth Management refined and deepened its work on the "Five Priorities" of finance. It adhered to a multi-market, multi-asset, and multi-strategy business layout, strengthened the innovation of option-embedded as well as medium- to long-term products, and helped more inclusive and elderly customer groups to protect and increase their wealth. Actively aligning with major national strategies, it front-loaded the investments in sci-tech innovation bonds, accelerated the expansion of equity investments in the primary and secondary markets for technology finance and green finance, and actively explored the wealth management paths for supporting sci-tech innovation and green transition. ICBC Wealth Management pressed ahead with the "Digital ICBC WM" initiative, leveraged technologies to empower the entire chain of marketing, investment research, risk control and operation, and created a new model of value creation driven by digital and intelligent transformation.
- ICBC Wealth Management endeavored to become a wealth management company satisfactory to the people. Adhering to the customer-centric service philosophy, it focused on key scenarios such as idle money management, liquidity management, and cash flow, and launched products like "Tian Tian Ying No. 2" and "Huo Qian Tong No.2". Focusing on enhancing customer experience and expanding service boundaries, ICBC Wealth Management upgraded and scaled up scenario-based functions including "Automatic Investment Plan", "WM Night Market", "Zhi Xiang Huan", "Dividends" and "7*24 Quick Redemption". In the year, ICBC Wealth Management participated in over 30 new investment projects such as Hong Kong stock IPOs and initial offerings of public REITs, helping clients seize more good investment opportunities.

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# Discussion and Analysis

ICBC Wealth Management enhanced the quality and effectiveness of companionship. In response to the wealth management and investment demands of the general public, ICBC Wealth Management built a "product — philosophy — consulting — consumer protection" investor education content system, fostering a scientific investment mindset among customers. ICBC Wealth Management carried out in-depth financial education publicity events, built the "Clear Management, Clean Wealth — Better Life House" WM investment education space and carried out a series of publicity events, including the "Financial Knowledge into Campus", the "County-area Consumer Protection Tour" and the "Protecting Your Money and Family Wellbeing". In 2025, ICBC Wealth Management won nearly 30 industry-recognized awards. It was awarded the "People's Craftsmanship Brand Award" by People.cn for four consecutive years and the "Golden Bull Award for Bank Wealth Management" by *China Securities Journal* for six consecutive years.

At the end of 2025, the balance of the products of ICBC Wealth Management reached RMB2.09 trillion, all of which were net-worth products.

## WEALTH MANAGEMENT PRODUCTS OF ICBC WEALTH MANAGEMENT THAT WERE ISSUED, MATURED, AND EXISTING DURING THE REPORTING PERIOD

In RMB millions, except for tranches and percentages

| Item | At 31 December 2024: Number of tranches | At 31 December 2024: Amount | Products issued: Number of tranches | Products issued: Amount | Matured products: Number of tranches | Matured products: Amount | At 31 December 2025: Number of tranches | At 31 December 2025: Amount | At 31 December 2025: Percentage (%) |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| **Classified by fundraising method** | | | | | | | | | |
| Publicly offered | 890 | 1,885,335 | 600 | 162,956 | 479 | 165,044 | 1,011 | 2,037,275 | 97.4 |
| Privately offered | 178 | 76,016 | 122 | 47,156 | 138 | 71,482 | 154 | 53,965 | 2.6 |
| **Classified by investment type** | | | | | | | | | |
| Fixed-income | 797 | 1,877,046 | 661 | 165,990 | 493 | 180,049 | 965 | 1,990,678 | 95.2 |
| Equity | 36 | 2,370 | — | — | 4 | 555 | 32 | 1,571 | 0.1 |
| Hybrid | 235 | 81,935 | 61 | 44,122 | 120 | 55,922 | 168 | 98,991 | 4.7 |
| **Total** | **1,068** | **1,961,351** | **722** | **210,112** | **617** | **236,526** | **1,165** | **2,091,240** | **100.0** |

## DIRECT AND INDIRECT INVESTMENTS OF ICBC WEALTH MANAGEMENT IN WEALTH MANAGEMENT PRODUCTS AS AT THE END OF 2025

In RMB millions, except for percentages

| Asset type | Amount | Percentage (%) |
| :--- | :--- | :--- |
| Cash, deposits and reverse repurchase agreements | 927,323 | 43.3 |
| Bonds | 945,456 | 44.1 |
| Non-standard debt assets | 40,006 | 1.9 |
| Other assets<sup>(1)</sup> | 228,643 | 10.7 |
| **Total** | **2,141,428** | **100.0** |

Note: (1) Other assets include equity assets, financial derivatives, QDII and mutual funds.

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# Major Controlled Subsidiaries and Equity Participating Company

## Major Overseas Subsidiaries

| Institution | Principal business | Issued share capital/paid-in capital (At 31 December 2025) | Total assets (in USD millions) (At 31 December 2025) | Net assets (in USD millions) (At 31 December 2025) | Net profit (in USD millions) (2025) |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Industrial and Commercial Bank of China (Asia) Limited | Commercial banking | HKD44,188 million | 127,165.27 | 21,186.96 | 939.46 |
| ICBC International Holdings Limited | Investment banking | HKD5,963 million | 6,635.60 | 696.46 | (390.93) |
| Industrial and Commercial Bank of China (Macau) Limited | Commercial banking | MOP589 million | 48,328.75 | 3,980.61 | 16.57 |
| PT. Bank ICBC Indonesia | Commercial banking | IDR3.71 trillion | 3,602.57 | 468.55 | 34.01 |
| Industrial and Commercial Bank of China (Malaysia) Berhad | Commercial banking | MYR833 million | 1,503.53 | 377.39 | 19.38 |
| Industrial and Commercial Bank of China (Thai) Public Company Limited | Commercial banking | THB20,107 million | 7,447.80 | 1,557.93 | 92.12 |
| Industrial and Commercial Bank of China (Almaty) Joint Stock Company | Commercial banking | KZT8,933 million | 1,219.11 | 227.83 | 57.12 |
| Industrial and Commercial Bank of China (New Zealand) Limited | Commercial banking | NZD234 million | 1,675.24 | 206.16 | 11.45 |
| Industrial and Commercial Bank of China (Europe) S.A. | Commercial banking | EUR437 million | 10,017.02 | 680.40 | 0.82 |
| ICBC (London) PLC | Commercial banking | USD200 million | 2,393.33 | 591.41 | 42.88 |
| ICBC Standard Bank PLC | Banking | USD1,083 million | 37,800.73 | 2,131.46 | 224.85 |
| Bank ICBC (Joint stock company) | Commercial banking | RUB10,810 million | 6,643.61 | 1,188.33 | 369.09 |
| ICBC Turkey Bank Anonim Şirketi | Commercial banking | TRY16,747 million | 2,438.44 | 113.53 | (29.49) |
| ICBC Austria Bank GmbH | Commercial banking | EUR200 million | 1,195.83 | 237.61 | 0.27 |
| Industrial and Commercial Bank of China (USA) NA | Commercial banking | USD369 million | 2,902.68 | 486.72 | 15.05 |
| Industrial and Commercial Bank of China (Canada) | Commercial banking | CAD208 million | 2,416.83 | 361.23 | 7.40 |
| Industrial and Commercial Bank of China Mexico S.A. | Commercial banking | MXN1,597 million | 720.95 | 78.89 | 16.05 |
| Industrial and Commercial Bank of China (Brasil) S.A. | Commercial banking | BRL202 million | 245.25 | 29.29 | (4.37) |
| ICBC PERU BANK | Commercial banking | USD120 million | 744.10 | 171.85 | 8.70 |
| Industrial and Commercial Bank of China (Argentina) S.A.U. | Commercial banking | ARS482,787 million | 9,489.20 | 1,452.74 | 137.46 |

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# Discussion and Analysis

## Major Domestic Subsidiaries

In RMB100 millions

| Institution | Principal business | Issued share capital/paid-in capital (At 31 December 2025) | Total assets (At 31 December 2025) | Net assets (At 31 December 2025) | Net profit (2025) |
| :--- | :--- | :--- | :--- | :--- | :--- |
| ICBC UBS Asset Management Co., Ltd. (1) | Fund management | 2 | 291.29 | 198.54 | 30.07 |
| ICBC Financial Leasing Co., Ltd. (2) | Leasing | 330 | 4,083.20 | 569.47 | 20.09 |
| ICBC-AXA Assurance Co., Ltd. | Insurance | 125.05 | 3,772.96 | 213.74 | 26.59 |
| ICBC Financial Asset Investment Co., Ltd. | Financial asset investment | 270 | 2,025.77 | 583.39 | 52.87 |
| ICBC Wealth Management Co., Ltd. | Wealth management | 160 | 236.64 | 233.82 | 16.37 |

**Notes:** (1) During the reporting period, pursuant to the CSRC’s Approval on the Change of Shareholder Holding 5% or More of Shares in ICBC UBS Asset Management Co., Ltd. (CSRC Permission [2025] No. 228), UBS AG became a shareholder holding 5% or more of the shares in ICBC UBS Asset Management Co., Ltd., accounting for 20% of its registered capital. Following this shareholding change, the registered capital of ICBC UBS Asset Management Co., Ltd. remained unchanged. The Bank has continued to be the controlling shareholder of ICBC UBS Asset Management Co., Ltd., with its shareholding ratio unchanged at 80%. (2) During the reporting period, in accordance with the Approval of Tianjin Financial Regulatory Bureau on the Change of Registered Capital of ICBC Financial Leasing Co., Ltd. (J.J.F. [2025] No. 257), the Bank increased the registered capital of its wholly-owned subsidiary ICBC Leasing Co., Ltd. by RMB15 billion in cash. After the capital increase, the registered capital of ICBC Leasing Co., Ltd. increased from RMB18 billion to RMB33 billion.

## Major Equity Participating Company

### Standard Bank Group Limited

**Standard Bank is the largest commercial bank in Africa.** Its scope of business covers commercial banking, investment banking, life insurance business and other areas. The Bank continued to hold 324,963,464 shares or 19.74% of Standard Bank and to be its single largest shareholder. Based on mutual benefit and win-win cooperation, the two sides furthered their cooperation in equity cooperation, customer expansion, project financing, product innovation, risk management, FinTech and staff exchange, etc. As at the end of 2025, Standard Bank recorded total assets of ZAR3,620,854 million and net assets of ZAR312,416 million. It generated a net profit of ZAR56,666 million in the year.

---

# Risk Management

69 Enterprise Risk Management System
71 Credit Risk
78 Market Risk
79 Interest Rate Risk in the Banking Book
81 Liquidity Risk
83 Operational Risk
84 Reputational Risk
85 Country Risk
85 Information Technology and Cyber Security Risk

## Enterprise Risk Management System

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 Bank's operating and strategic objectives by setting up an 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. In the enterprise risk management, the Bank follows the principles of full coverage, alignment, checks and balances, perspectiveness and effectiveness, etc.

In 2025, the Bank adhered to the four-pronged approach to people, money, defense lines, and bottom lines. Following the route of "comprehensive management, active prevention and smart control", the Bank further implemented the "Five-pronged Risk Management Approach", made coordinated efforts to consolidate the management of "9+X" risk categories, and continued to improve the comprehensive risk management system featuring vertically integrated oversight across the Risk Management and Internal Control Committee, risk officers and risk control departments, and horizontally coordinated joint prevention and control under the three lines of defense. The Bank worked to improve the working mechanisms of the Risk Management and Internal Control Committee, and risk officers, continuously stepped up efforts in building the three lines of defense, and further enhanced the overall risk control and management of the Group. The Bank strengthened the joint prevention and control of cross-border and cross-market risks, conducted potential risk inspections on an ongoing basis, improved the risk response plans and management measures, and prudently responded to global market fluctuations and external shocks. The Bank accelerated the intelligent transformation of risk control, put the enterprise-level intelligent risk control platform into production and application on all fronts, and continuously improved its capabilities in forward-looking risk warning and bottom-line control. The Bank also stepped up risk control in emerging areas, improved the risk management mechanism for cooperation institutions in investment and financing business, actively explored and conducted climate risk management, and enhanced its capabilities to manage and respond to emerging risks.

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# Discussion and Analysis

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

**At the level of Board of Directors**
- Board of Directors
- Risk Management Committee of the Board of Directors
- US Risk Committee
- Audit Committee of the Board of Directors

**At the level of Head Office**
- President
- Asset & Liability Management Committee
- Risk Management and Internal Control Committee
- Senior Executive Vice Presidents
- Senior Executive Vice President (Chief Risk Officer)
- Credit Risk Management Committee
- Market Risk Management Committee
- Operational Risk Management Committee
- Internal Audit Bureau
- **Business departments**: Corporate Banking Department, Personal Banking Department, Institutional Banking Department, Bank Card Department, Global Market Department, etc.

**Risk Management Responsibility Mapping**

| Risk Type | Responsible Department |
| :--- | :--- |
| Enterprise risk management, market risk, country risk | Risk Management Department |
| Credit risk | Credit and Investment Management Department |
| Legal risk | Legal Affairs Department |
| Liquidity risk, interest rate risk in the banking book | Asset & Liability Management Department |
| Operational risk, compliance risk, money laundering risk | Internal Control & Compliance Department |
| Reputational risk | Executive Office |
| Strategic risk | Office of Steering Group for Deepening Reform |
| IT and cyber security risk | Financial Technology Department; Internal Control & Compliance Department; Risk Management Department |
| Operational risk | Operation Management Department |
| Production safety management | Security Department |
| Data security risk | Data Management Department |

**At the level of branches and subsidiaries**
- Board of directors of subsidiaries
- Senior management of subsidiaries
- Management of Branches
- Business departments of branches and subsidiaries
- Risk management departments and internal control & compliance departments of branches and subsidiaries
- Internal Audit Sub-bureau

**Lines of Defense**
- **First line of defense**: Business departments
- **Second line of defense**: Risk management departments and internal control & compliance departments
- **Third line of defense**: Internal audit departments

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

Note: The above chart is the risk management organizational structure of the Bank as at the end of 2025.

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# Credit Risk

## Credit Risk Management

Credit risk is the risk where loss is incurred 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 deposits with banks and other financial institutions, placements with banks and other financial institutions, reverse repurchase agreements, corporate bonds and financial bonds investment), receivables and off-balance sheet credit business (including guarantees, commitments and financial derivatives trading).

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.

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.

The Bank continued to strengthen the development of the credit risk management system. It strengthened the development of credit risk management systems and process management, improved the credit-granting management mode and coordination mechanism for group customers, and enhanced the quality and effectiveness of limit management. It operated the intelligent credit risk control system “Three Gates and Seven-color Pools” to high standards and improved the systems and mechanisms for credit risk management. Specifically, at the entrance end, the Bank improved the policy system for investment and financing, dynamically adjusted policies for industries, regions and industrial chains, optimized authorization management for credit risk business, strengthened risk monitoring and early warning for newly admitted customers and newly added financing, improved the credit approval management mechanism, and continued to improve the access, institutional rules and management requirements for retail and inclusive loan products; at the threshold end, the Bank deepened duration management, carried out risk prevention and mitigation in key areas, strengthened risk identification and control for key scenarios and products, continuously enhanced the quality and effectiveness of overdue loan collection management, implemented hierarchical and categorized early warnings, and improved the level of refined management; at the exit end, the Bank implemented the risk asset direct operation and direct management mechanism, adhered to the principle of cash recovery as a priority, strengthened legal proceedings and enforcement, actively promoted restructuring and transformation, thereby continuously improving the quality and effectiveness of disposal.

The Bank accurately grasped the layout and direction of investment and financing business and stepped up the credit risk management of corporate credit business. It focused on improving the technology finance service ecosystem, increased financing support for strategic emerging industries, advanced manufacturing and key industrial chains, and provided multi-dimensional and full life-cycle supporting financial services. It supported the advancement of an all-round green transition, enriched the supply of green finance products and services, and improved credit support strategies in areas such as clean energy, green transportation and green consumption. It adopted a holistic approach to national security and strengthened credit extension guidance in areas such as food security and energy and resource security assurance capabilities. Centering on the “Renewal and Trade-in” program, service consumption, the elderly care industry and urban renewal, it continued to optimize credit policies to precisely align with customers’ financing needs. It

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# Discussion and Analysis

implemented the macro-control policies for real estate, stepped up financial support for the “market-based + affordable” housing supply system, and advanced the development of the rental housing business to build a diverse and balanced structure for real estate investment and financing. It thoroughly implemented the strategy of coordinated regional development and worked to serve major priorities such as the coordinated development of the Beijing-Tianjin-Hebei region, development of the Guangdong-Hong Kong-Macao Greater Bay Area, integration of the Yangtze River Delta, rise of the central region, full revitalization of northeast China, and large-scale development of the western region with constantly improved differentiated regional credit policies. The Bank continued to improve the layout of overseas credit assets, remained committed to the strategy of prudent and sound investment and financing, and actively provided financial services to help high-quality Chinese-funded enterprises “Going Global” and “Bring in” foreign-funded enterprises, in a bid to serve the Belt and Road Initiative and high-level opening up.

Focusing on key areas such as real estate, local debts and small and medium-sized financial institutions, the Bank implemented the requirements of “early identification, warning, exposure, and resolution” and solidly advanced the prevention and mitigation of credit risk. In terms of real estate, the Bank earnestly implemented macro-control policies and financial regulatory requirements, improved the working mechanism for the prevention and mitigation of risks in real estate, served the new development mode of real estate, and facilitated the virtuous cycle of finance and real estate. It also actively and prudently provided financial support to ensure the delivery of housing projects and protect the legitimate rights and interests of housing financial customers in accordance with laws. In line with the policy orientation of “controlling increment, reducing inventory, and optimizing supply” under city-specific measures, the Bank provided financing support for the acquisition of finished commodity housing to be used as government-subsidized housing for sale or for rent, and served the steady and sound development of the real estate market. In terms of local debts, the Bank provided financial support for debt resolution in an orderly manner and strengthened the prevention and mitigation of financing risks following the market-based and law-based principles. In terms of small and medium-sized financial institutions, the Bank improved the working mechanism for joint prevention and control of risks, continuously strengthened full-process risk management and control, and limit management, and enhanced its forward-looking capabilities for risk identification and early warning.

The Bank established a risk prevention and control system covering the full process of personal loan business. From dimensions including products, customers, regions, strategies, models, handling staff and partner institutions, it examined and identified risk factors at the access end, and dynamically optimized product rules and access strategies. It promoted the development of an integrated and digital collection system for “retail + inclusive” loans, proactively adopted a combination of multiple collection approaches, and established an efficient collection system with effective linkage among the Head Office, branches and sub-branches, thereby enhancing the quality and effectiveness of collection. It adhered to an “exit” management model with cash recovery as the primary approach, with a focus on carrying out pilot work such as the launch of non-performing asset securitization projects and bulk transfers of non-performing personal credit assets to effectively dispose of non-performing loans.

The Bank strengthened digital and intelligent empowerment for credit risk management. It deepened the application of new technologies such as large models, innovatively developed “AI-Credit Matrix”, a new-generation full-process financing intelligent agent matrix, built a customer credit risk evaluation system featuring “multi-dimensional information integration + deep reasoning”, served the full process of marketing, due diligence, review, approval and duration management for corporate customers, and won the Fifth “Jinxintong” Intelligent and Innovative Cases of FinTech Innovation and Application by the China Academy of Information and Communications Technology. It enriched the monitoring and statistical contents of “ICBC e Prevention”, and deepened the application of satellite remote sensing technology in projects such as agricultural planting and forest land. It optimized the functions of the AI digital assistant for credit review “ICBC eXaminer (Gong Xiao Shen)”, and the Bank’s credit review AI co-pilot project won CCID Consulting’s “2024-2025 Best Innovative Application Project for Digital Transformation of China’s Financial Industry”.

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# Credit Risk Analysis

At the end of 2025, the Bank’s maximum exposure to credit risk, without taking into account any collateral and other credit enhancements, was RMB55,736,713 million, representing an increase of RMB4,856,375 million compared with the end of the previous year. Please refer to “Note 50.(a)(i) to the Consolidated Financial Statements: Maximum Exposure to Credit Risk Without Taking Into Account of Any Collateral and Other Credit Enhancements”.

## DISTRIBUTION OF LOANS BY FIVE-CATEGORY CLASSIFICATION
In RMB millions, except for percentages

| Item | At 31 December 2025 Amount | At 31 December 2025 Percentage (%) | At 31 December 2024 Amount | At 31 December 2024 Percentage (%) |
| :--- | :--- | :--- | :--- | :--- |
| Pass | 29,512,445 | 96.74 | 27,418,600 | 96.64 |
| Special Mention | 594,656 | 1.95 | 574,171 | 2.02 |
| NPLs | 399,013 | 1.31 | 379,458 | 1.34 |
| Substandard | 90,667 | 0.30 | 85,881 | 0.31 |
| Doubtful | 75,909 | 0.25 | 103,049 | 0.36 |
| Loss | 232,437 | 0.76 | 190,528 | 0.67 |
| **Total** | **30,506,114** | **100.00** | **28,372,229** | **100.00** |

According to the five-category classification, pass loans amounted to RMB29,512,445 million at the end of 2025, representing an increase of RMB2,093,845 million compared with the end of the previous year and accounting for 96.74% of total loans. Special mention loans stood at RMB594,656 million, representing an increase of RMB20,485 million and accounting for 1.95% of the total, with a decrease of 0.07 percentage points. NPLs amounted to RMB399,013 million, showing an increase of RMB19,555 million, and the NPL ratio was 1.31%, with a decrease of 0.03 percentage points.

## DISTRIBUTION OF LOANS AND NPLS
In RMB millions, except for percentages

| Item | At 31 December 2025 Loan | At 31 December 2025 Percentage (%) | At 31 December 2025 NPLs | At 31 December 2025 NPL ratio (%) | At 31 December 2024 Loan | At 31 December 2024 Percentage (%) | At 31 December 2024 NPLs | At 31 December 2024 NPL ratio (%) |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Corporate loans | 18,841,671 | 61.8 | 256,676 | 1.36 | 17,482,223 | 61.6 | 276,631 | 1.58 |
| Short-term corporate loans | 4,280,312 | 14.0 | 73,499 | 1.72 | 3,819,683 | 13.5 | 90,949 | 2.38 |
| Medium to long-term corporate loans | 14,561,359 | 47.8 | 183,177 | 1.26 | 13,662,540 | 48.1 | 185,682 | 1.36 |
| Discounted bills | 2,661,807 | 8.7 | – | – | 1,932,286 | 6.8 | – | – |
| Personal loans | 9,002,636 | 29.5 | 142,337 | 1.58 | 8,957,720 | 31.6 | 102,827 | 1.15 |
| Residential mortgages | 5,875,868 | 19.3 | 62,250 | 1.06 | 6,083,180 | 21.5 | 44,317 | 0.73 |
| Personal consumption loans | 499,014 | 1.6 | 12,877 | 2.58 | 421,195 | 1.5 | 10,057 | 2.39 |
| Personal business loans | 1,930,219 | 6.3 | 35,088 | 1.82 | 1,677,981 | 5.9 | 21,280 | 1.27 |
| Credit card overdrafts | 697,535 | 2.3 | 32,122 | 4.61 | 775,364 | 2.7 | 27,173 | 3.50 |
| **Total** | **30,506,114** | **100.0** | **399,013** | **1.31** | **28,372,229** | **100.0** | **379,458** | **1.34** |

At the end of 2025, corporate NPLs were RMB256,676 million, showing a decrease of RMB19,955 million compared with the end of the previous year, and representing an NPL ratio of 1.36%, with a decrease of 0.22 percentage points. Personal NPLs amounted to RMB142,337 million, showing an increase of RMB39,510 million, and representing an NPL ratio of 1.58%, with an increase of 0.43 percentage points.

---

# Discussion and Analysis

## DISTRIBUTION OF CORPORATE LOANS AND NON-PERFORMING CORPORATE LOANS OF DOMESTIC BRANCHES BY INDUSTRY OF LOAN CUSTOMERS

In RMB millions, except for percentages

| Item | At 31 December 2025: Loan | At 31 December 2025: Percentage (%) | At 31 December 2025: NPLs | At 31 December 2025: NPL ratio (%) | At 31 December 2024: Loan | At 31 December 2024: Percentage (%) | At 31 December 2024: NPLs | At 31 December 2024: NPL ratio (%) |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Transportation, storage and postal services | 4,019,287 | 22.9 | 11,314 | 0.28 | 3,859,790 | 23.8 | 14,286 | 0.37 |
| Leasing and commercial services | 2,781,666 | 15.8 | 40,856 | 1.47 | 2,417,060 | 14.9 | 36,844 | 1.52 |
| Manufacturing | 2,738,732 | 15.6 | 42,498 | 1.55 | 2,454,489 | 15.1 | 45,932 | 1.87 |
| Water, environment and public utility management | 1,907,924 | 10.9 | 13,262 | 0.70 | 1,839,421 | 11.4 | 16,725 | 0.91 |
| Production and supply of electricity, heating, gas and water | 1,849,764 | 10.5 | 5,320 | 0.29 | 1,756,221 | 10.8 | 7,479 | 0.43 |
| Wholesale and retail | 952,526 | 5.4 | 25,726 | 2.70 | 768,713 | 4.7 | 37,403 | 4.87 |
| Real estate | 864,576 | 4.9 | 46,576 | 5.39 | 880,986 | 5.4 | 43,964 | 4.99 |
| Construction | 535,865 | 3.1 | 13,500 | 2.52 | 483,623 | 3.0 | 14,417 | 2.98 |
| Science, education, culture and sanitation | 463,647 | 2.6 | 8,793 | 1.90 | 400,666 | 2.5 | 8,453 | 2.11 |
| Mining | 393,660 | 2.2 | 1,519 | 0.39 | 328,337 | 2.0 | 1,723 | 0.52 |
| Others | 1,052,749 | 6.1 | 16,316 | 1.55 | 1,015,627 | 6.4 | 16,615 | 1.64 |
| **Total** | **17,560,396** | **100.0** | **225,680** | **1.29** | **16,204,933** | **100.0** | **243,841** | **1.50** |

**The Bank continued to propel the optimization and adjustment of the credit industry structure and increased support for the development of the real economy.** Specifically, loans to leasing and commercial services increased by RMB364,606 million or 15.1% over the end of the previous year, which was mainly attributable to customers' increased financing demands in investment and asset management, enterprise headquarters, and management services of park and commercial complex. Loans to manufacturing increased by RMB284,243 million or 11.6%, mainly granted to leading backbone enterprises and key projects in high-end manufacturing such as new-generation information technology, new energy vehicles, and large-scale refining and chemical projects. Loans to wholesale and retail increased by RMB183,813 million or 23.9%, mainly driven by the continued intensification of a raft of incremental policies, under which demand for raw materials from manufacturing enterprises pushed up financing demand from commodity traders, as well as pro-consumption policies that led to increased funding demand from retailers such as department stores, supermarkets, home appliances and home furnishings. Loans to the transportation, storage and postal services increased by RMB159,497 million or an increase of 4.1%, mainly directed to projects for densifying road networks in the Eastern and Central China and for addressing weak links in the Western China in areas such as highways and railways, thereby actively supporting the building of China into a leading transportation country. Loans to the production and supply of electricity, heating, gas and water increased by RMB93,543 million or an increase of 5.3%, mainly directed to new energy power generation fields such as wind, solar, hydropower and nuclear power, as well as public services and people's wellbeing areas including supply of heating, gas and water, as well as sewage treatment in urban areas and key townships.

The Bank continued to strengthen risk management of loans in various industries, improved the quality and efficiency in the disposal of non-performing assets, and properly carried out risk prevention and mitigation in key areas. With these efforts, the loan quality was generally stable.

---

# Discussion and Analysis

## DISTRIBUTION OF LOANS AND NPLS BY GEOGRAPHIC AREA

In RMB millions, except for percentages

| Item | At 31 December 2025: Loan | At 31 December 2025: Percentage (%) | At 31 December 2025: NPLs | At 31 December 2025: NPL ratio (%) | At 31 December 2024: Loan | At 31 December 2024: Percentage (%) | At 31 December 2024: NPLs | At 31 December 2024: NPL ratio (%) |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Head Office | 849,602 | 2.8 | 40,582 | 4.78 | 874,284 | 3.1 | 38,358 | 4.39 |
| Yangtze River Delta | 6,756,827 | 22.2 | 55,719 | 0.82 | 6,182,636 | 21.8 | 47,345 | 0.77 |
| Pearl River Delta | 4,613,631 | 15.1 | 86,732 | 1.88 | 4,348,121 | 15.3 | 66,187 | 1.52 |
| Bohai Rim | 5,109,713 | 16.7 | 55,496 | 1.09 | 4,677,575 | 16.5 | 56,810 | 1.21 |
| Central China | 4,853,907 | 15.9 | 48,475 | 1.00 | 4,416,409 | 15.6 | 49,717 | 1.13 |
| Western China | 5,688,006 | 18.7 | 59,262 | 1.04 | 5,233,652 | 18.4 | 68,406 | 1.31 |
| Northeastern China | 1,155,520 | 3.8 | 19,974 | 1.73 | 1,158,000 | 4.1 | 17,480 | 1.51 |
| Overseas and others | 1,478,908 | 4.8 | 32,773 | 2.22 | 1,481,552 | 5.2 | 35,155 | 2.37 |
| **Total** | **30,506,114** | **100.0** | **399,013** | **1.31** | **28,372,229** | **100.0** | **379,458** | **1.34** |

## MOVEMENTS OF ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS

In RMB millions

| Item | Amortized Cost: Stage 1 | Amortized Cost: Stage 2 | Amortized Cost: Stage 3 | Amortized Cost: Total | FVTOCI: Stage 1 | FVTOCI: Stage 2 | FVTOCI: Stage 3 | FVTOCI: Total |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| **Balance at 1 January 2025** | **354,083** | **156,502** | **304,487** | **815,072** | **353** | **51** | **21** | **425** |
| Transfer: | | | | | | | | |
| to stage 1 | 21,754 | (18,212) | (3,542) | – | – | – | – | – |
| to stage 2 | (10,433) | 12,981 | (2,548) | – | – | – | – | – |
| to stage 3 | (6,356) | (32,304) | 38,660 | – | – | (20) | 20 | – |
| (Reverse)/charge | (10,175) | 49,820 | 109,882 | 149,527 | (142) | 86 | 149 | 93 |
| Write-offs and transfer out | – | – | (119,958) | (119,958) | – | – | – | – |
| Recoveries of loans and advances previously written off | – | – | 11,546 | 11,546 | – | – | – | – |
| Other movements | 794 | (2,105) | (3,126) | (4,437) | 31 | 19 | (44) | 6 |
| **Balance at 31 December 2025** | **349,667** | **166,682** | **335,401** | **851,750** | **242** | **136** | **146** | **524** |

Note: Please see “Note 23. to the Consolidated Financial Statements: Loans and Advances to Customers” for details.

As at the end of 2025, the allowance for impairment losses on loans stood at RMB852,274 million, of which RMB851,750 million at amortized cost, and RMB524 million at fair value through other comprehensive income. Allowance to NPLs was 213.60%, showing a decrease of 1.31 percentage points over the end of last year; allowance to total loans ratio was 2.79%, showing a decrease of 0.08 percentage points.

---

# Discussion and Analysis

## DISTRIBUTION OF LOANS BY COLLATERAL

In RMB millions, except for percentages

| Item | At 31 December 2025 Amount | At 31 December 2025 Percentage (%) | At 31 December 2024 Amount | At 31 December 2024 Percentage (%) |
| :--- | :--- | :--- | :--- | :--- |
| Loans secured by mortgages | 10,803,253 | 35.4 | 10,787,880 | 38.0 |
| Pledged loans | 4,778,472 | 15.7 | 3,797,121 | 13.4 |
| Guaranteed loans | 2,753,819 | 9.0 | 2,708,808 | 9.5 |
| Unsecured loans | 12,170,570 | 39.9 | 11,078,420 | 39.1 |
| **Total** | **30,506,114** | **100.0** | **28,372,229** | **100.0** |

## OVERDUE LOANS

In RMB millions, except for percentages

| Overdue periods | At 31 December 2025 Amount | At 31 December 2025 % of total loans | At 31 December 2024 Amount | At 31 December 2024 % of total loans |
| :--- | :--- | :--- | :--- | :--- |
| Less than 3 months | 130,307 | 0.43 | 122,360 | 0.43 |
| 3 months to 1 year | 136,903 | 0.45 | 120,579 | 0.42 |
| 1 to 3 years | 145,087 | 0.48 | 124,646 | 0.44 |
| Over 3 years | 50,438 | 0.17 | 39,154 | 0.14 |
| **Total** | **462,735** | **1.52** | **406,739** | **1.43** |

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.

**Overdue loans** stood at RMB462,735 million, representing an increase of RMB55,996 million from the end of the previous year, among which, loans overdue for over 3 months amounted to RMB332,428 million, representing an increase of RMB48,049 million.

## RESCHEDULED LOANS

**Rescheduled loans** and advances measured in accordance with the Measures for Risk Classification of Financial Assets of Commercial Banks amounted to RMB156,027 million, representing an increase of RMB16,941 million from the end of the previous year. Specifically, rescheduled loans and advances overdue for over 3 months amounted to RMB39,606 million, representing an increase of RMB16,228 million.

## LOAN MIGRATION RATIO

In percentages

| Item | At 31 December 2025 | At 31 December 2024 | At 31 December 2023 |
| :--- | :--- | :--- | :--- |
| Pass | 0.97 | 1.09 | 1.05 |
| Special mention | 17.44 | 17.44 | 18.61 |
| Substandard | 59.24 | 59.86 | 61.74 |
| Doubtful | 68.89 | 53.45 | 77.49 |

Note: Calculated according to the Circular on Amending the Definitions and Calculation Formula of Basic Indicators for Off-site Supervision of the Banking Sector issued by the former CBIRC in 2022, and measured at the Group’s level.

---

# Large Exposures Management

In accordance with relevant regulatory rules, the Bank strictly carried out various work on large exposures management in an orderly manner, and further improved the large exposures management system, including the construction of large exposure management systems, to continuously strengthen large exposures limit management and improve large exposures management.

## BORROWER CONCENTRATION

As at the end of 2025, the total amount of loans granted by the Bank to the single largest borrower and top ten single borrowers accounted for 4.4% and 19.4% of the Bank’s net capital base, respectively. The total amount of loans granted to the top ten single borrowers was RMB1,029,313 million, accounting for 3.4% of the total loans.

| Item | At 31 December 2025 | At 31 December 2024 | At 31 December 2023 |
| :--- | :---: | :---: | :---: |
| Loan concentration to the single largest borrower (%) | 4.4 | 4.4 | 4.5 |
| Loan concentration to the top ten borrowers (%) | 19.4 | 21.6 | 23.5 |

The table below shows the details of the loans granted to the top ten single borrowers of the Bank as at the end of 2025.

In RMB millions, except for percentages
| Borrower | Industry | Amount | % of total loans |
| :--- | :--- | :---: | :---: |
| Borrower A | Transportation, storage and postal services | 235,908 | 0.8 |
| Borrower B | Finance | 164,439 | 0.6 |
| Borrower C | Production and supply of electricity, heating, gas and water | 120,000 | 0.4 |
| Borrower D | Finance | 100,351 | 0.3 |
| Borrower E | Transportation, storage and postal services | 92,967 | 0.3 |
| Borrower F | Finance | 71,594 | 0.2 |
| Borrower G | Production and supply of electricity, heating, gas and water | 65,000 | 0.2 |
| Borrower H | Transportation, storage and postal services | 64,015 | 0.2 |
| Borrower I | Production and supply of electricity, heating, gas and water | 58,593 | 0.2 |
| Borrower J | Transportation, storage and postal services | 56,446 | 0.2 |
| **Total** | | **1,029,313** | **3.4** |

For credit risk capital measurement, please refer to the 2025 Pillar 3 Disclosure Report of Capital Management of Industrial and Commercial Bank of China Limited.

---

# Discussion and Analysis

## Market Risk

Market risk is defined as the risk of loss to a 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 such market risk as interest rate risk, currency risk and commodity risk (mainly gold). Market risk management is the process of identifying, measuring, monitoring, controlling and reporting market risk. The objective of market risk management is to effectively prevent and control market risk exposures within a tolerable level for commercial banks and achieve a reasonable balance between risks and returns.

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 overseeing market risk management. The Senior Management is responsible for implementing market risk management. The front-office business departments serve as the first line of defense, bearing direct responsibility for market risk management. The risk management and internal control & compliance departments constitute the second line of defense, assuming management responsibilities for market risk. The internal audit department functions as the third line of defense, taking on supervisory responsibilities for market risk management. These three lines of defense each perform their respective duties, with efficient coordination and collaboration, information sharing, and joint management.

In 2025, the Bank continued to deepen the Group’s market risk management. In line with the Capital Rules, the Rules on Market Risk Management of Commercial Banks and the latest management practices, it continuously improved the market risk management system, adopted the standard approach for market risk capital measurement, and steadily advanced the development of the internal model approach. The Bank effectively disseminated the Group’s risk appetite, applied the measurement results of the Capital Rules, and continuously enhanced the market risk limit management system. It also deepened the application of the market risk management system, established and improved the model library and management mechanism, and continuously ameliorated its intelligent market risk control capabilities.

## Management of Market Risk in the Trading Book

The Bank kept strengthening trading book market risk management and product control, and adopted the value-at-risk (VaR), stress testing, sensitivity analysis, exposure analysis, profit/loss analysis, price monitoring and other means to measure and manage trading book products.

For VaR of the trading book, please refer to “Note 50.(c)(i) to the Consolidated Financial Statements: Trading Book VaR”.

## Currency Risk Management

Currency risk is the risk of adverse movements of the exchange rate resulting in losses to the bank on the foreign currency exposure, which is due to the currency structure’s mismatch between foreign currency assets and liabilities. The Bank’s objective of currency risk management is to control the impact of exchange rate fluctuations on the Bank’s financial position and shareholders’ equity within a tolerable extent. The Bank manages such risk principally by the limit management and hedging of risks. The Bank carries out sensitivity analysis and stress testing of currency risk on a quarterly basis, and the Senior Management and the Market Risk Management Committee review the currency risk reports on a quarterly basis.

In 2025, the Bank actively responded to changes in the operating environment and market fluctuations. By adhering to the currency risk neutrality principle, it proactively adjusted the scale and currency structure of foreign exchange exposure through currency exchange, hedging and other measures, improved the matching degree of the Group’s foreign exchange asset and liability currencies, and stepped up the value preservation management of capital funds, to maintain the currency risk of the Group within a reasonable range.

---

# FOREIGN EXCHANGE EXPOSURE

In RMB (USD) millions

| Item | At 31 December 2025 RMB | At 31 December 2025 USD equivalent | At 31 December 2024 RMB | At 31 December 2024 USD equivalent |
| :--- | :---: | :---: | :---: | :---: |
| Exposure of on-balance sheet foreign exchange items, net | 998,674 | 142,927 | 703,934 | 96,438 |
| Exposure of off-balance sheet foreign exchange items, net | (790,744) | (113,169) | (510,365) | (69,919) |
| **Total foreign exchange exposure, net** | **207,930** | **29,758** | **193,569** | **26,519** |

Please refer to “Note 50.(c)(ii) to the Consolidated Financial Statements: Currency Risk” for the exchange rate sensitivity analysis.

Please refer to the 2025 Pillar 3 Disclosure Report of Capital Management of Industrial and Commercial Bank of China Limited issued by the Bank for further information on market risk capital measurement.

# 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 the interest rate and maturity structure, etc.

## Management of 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: a sound risk system; 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 both the Bank and consolidated levels, 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 respect 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 predict of the interest rate trend and measurement results of the changes in overall profitability 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. 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 the 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 prone to be affected by interest rate risk.

---

# Discussion and Analysis

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 exposure changes under different stress scenarios on the overall profitability 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 durations, business development strategies, customer behaviors and other factors, and conducted stress testing quarterly.

In 2025, adhering to a steady and prudent interest rate risk appetite, the Bank continued to improve the structure of assets and liabilities, improved the interest rate exposure and duration mismatch structure that are compatible with the domestic and foreign interest rate trends, and balanced the Group’s interest income and expense and value changes. It also comprehensively applied the new development philosophy and kept improving the digital management of interest rate risks, to consolidate the high-quality operating results from balanced, coordinated and sustainable current earnings and long-term value.

## Analysis on Interest Rate Risk in the Banking Book

### Interest Rate Sensitivity Analysis

Supposing that there is a 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 by major currencies at the end of 2025 is shown in the following table:

In RMB millions

| Currency | +100 basis points in interest rate: Effect on net interest income | +100 basis points in interest rate: Effect on equity | – 100 basis points in interest rate: Effect on net interest income | – 100 basis points in interest rate: Effect on equity |
| :--- | :--- | :--- | :--- | :--- |
| RMB | (45,324) | (114,670) | 45,324 | 125,935 |
| USD | 1,994 | (10,383) | (1,994) | 11,945 |
| HKD | (510) | (202) | 510 | 203 |
| Others | 1,115 | (2,935) | (1,115) | 3,187 |
| **Total** | **(42,725)** | **(128,190)** | **42,725** | **141,270** |

Note: Please refer to “Note 50.(d) to the Consolidated Financial Statements: Interest Rate Risk in the Banking Book”.

### Interest Rate Exposure Analysis

As at the end of 2025, the Bank had a positive cumulative interest rate sensitivity exposure within one year of RMB54,147 million, representing a decrease of RMB2,172,616 million from the end of the previous year, mainly because of the increase in repriced or matured due to customers within one year and due to banks and other financial institutions. The Bank had a positive cumulative interest rate sensitivity exposure above one year of RMB3,996,583 million, representing an increase of RMB2,373,867 million, mainly resulting from the increase in repriced or matured bond investments above one year.

#### INTEREST RATE RISK EXPOSURE

In RMB millions

| | Less than 3 months | 3 months to 1 year | 1 to 5 years | Over 5 years |
| :--- | :--- | :--- | :--- | :--- |
| At 31 December 2025 | (8,282,970) | 8,337,117 | (1,711,048) | 5,707,631 |
| At 31 December 2024 | (6,245,678) | 8,472,441 | (3,405,999) | 5,028,715 |

Note: Please refer to “Note 50.(d) to the Consolidated Financial Statements: Interest Rate Risk in the Banking Book”.

---

# Liquidity Risk

Liquidity risk is the risk where the Bank is unable to raise funds on a timely basis 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 operation of business. Liquidity risk may arise from the following events or factors: material adverse changes in market liquidity, withdrawal of customers’ deposits, drawing of loans by customers, overdue payment of debtors, mismatch between assets and liabilities, difficulties in assets monetization, operating losses and risk associated with its affiliates.

## Liquidity Risk Management

The Bank’s liquidity risk management system conforms to its overall development strategy and overall risk management system, 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, the Asset and Liability Management Committee, and the Risk Management and Internal Control Committee of the Senior Management; the supervision system comprising the Internal Audit Bureau and the Internal Control and Compliance Department of the Head Office; and the execution system comprising the Asset & 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 the division of responsibilities.

**Objective of liquidity risk management:** By establishing and improving the liquidity risk management system, the Bank aims at realizing effective identification, measurement, monitoring and 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 stressed 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. 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. The Bank conducts stress testing quarterly or by subject by fully considering various macro and micro factors that may affect the liquidity of the Bank, changes in the external operating environment, regulatory requirements, and business characteristics and complexity of the Bank.

In 2025, the Bank adhered to a steady and prudent liquidity management strategy, intensified the monitoring of funds and maintained a proper and sufficient liquidity reserve, and the Group’s liquidity was stable. The Bank facilitated the ongoing upgrading of the liquidity risk management mechanism and system, and continuously enhanced the automation and intelligence level of liquidity risk monitoring, measurement and control. The Bank strengthened on- and off-balance sheet liquidity risk management in local and foreign currencies across domestic and overseas institutions, optimized the multi-level and multi-dimensional liquidity monitoring and early warning system, and enhanced the Group’s liquidity risk prevention and emergency response capabilities.

---

# Discussion and Analysis

## Liquidity Risk Analysis

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

At the end of 2025, the RMB liquidity ratio and foreign currency liquidity ratio of the Bank were 63.2% and 113.2%, respectively, both meeting the regulatory requirements. Loan-to-deposit ratio was 80.6%.

| Item | | Regulatory criteria | At 31 December 2025 | At 31 December 2024 | At 31 December 2023 |
| :--- | :--- | :---: | :---: | :---: | :---: |
| Liquidity ratio (%) | RMB | >=25.0 | 63.2 | 58.4 | 54.5 |
| | Foreign currency | >=25.0 | 113.2 | 110.0 | 88.8 |
| Loan-to-deposit ratio (%) | RMB and foreign currency | | 80.6 | 80.5 | 76.7 |

The 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 2025, the net stable funding ratio was 126.35%, 1.76 percentage points lower than that at the end of the previous quarter, mainly due to the decrease in available stable funds.

The daily average liquidity coverage ratio for the fourth quarter of 2025 was 138.61%, 10.26 percentage points higher than the previous quarter, mainly attributable to the rapid growth in 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.

For the quantitative information for the net stable funding ratio and liquidity coverage ratio based on the Capital Rules, please refer to the 2025 Pillar 3 Disclosure Report of Capital Management of Industrial and Commercial Bank of China Limited issued by the Bank.

At the end of 2025, the positive liquidity exposure for less than 1 month shifted to negative, mainly due to the increase in matured due to customers, as well as the decrease in due from banks and other financial institutions and placement with banks and other financial institutions within the corresponding term. The negative liquidity exposure for 1 to 3 months expanded, mainly due to the increase in matured due to banks and other financial institutions and placements from banks and other financial institutions within the corresponding term. The negative liquidity exposure for 3 months to 1 year narrowed, mainly due to the increase in matured loans and advances to customers within the corresponding term. The positive liquidity exposure for 1 to 5 years expanded, mainly due to the increase in matured bond investments within the corresponding term. The positive liquidity exposure for over 5 years expanded, which was mainly due to the increase in matured bond investments and loans and advances to customers within the corresponding term. In 2025, the Bank maintained stable and abundant funds, balanced and steady growth in assets and liabilities, reasonable and appropriate cash flows of various maturities, and safe and steady liquidity operation.

## LIQUIDITY EXPOSURE ANALYSIS

**In RMB millions**

| | Overdue/ repayable on demand | Less than 1 month | 1 to 3 months | 3 months to 1 year | 1 to 5 years | Over 5 years | Undated | Total |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| **At 31 December 2025** | (15,977,547) | (1,886,718) | (2,524,576) | (1,205,147) | 2,806,514 | 19,548,601 | 3,510,897 | 4,272,024 |
| **At 31 December 2024** | (15,207,017) | 75,047 | (1,376,512) | (2,257,940) | 964,184 | 18,346,104 | 3,443,400 | 3,987,266 |

Note: Please refer to “Note 50.(b) to the Consolidated Financial Statements: Liquidity Risk”.

---

# Operational Risk

## Operational Risk Management

Operational risk is defined as the possibility of loss resulting from problems in 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, delivery and process management. Among these, customers, products and business activities, internal fraud, and execution, delivery and process management events constitute major sources of operational risk losses of the Bank during the reporting period.

The Bank strictly complies with regulatory requirements on operational risk management. The Board of Directors and its Audit Committee, 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 and assume the direct responsibility for respective operational risk management. The Internal Control & Compliance Departments, classified management departments such as Legal Affairs, Security, Financial Technology, Data Management, Finance & Accounting, Operation Management and Human Resources, cross-risk management departments including Credit and Investment Management and Risk Management, as well as operational risk capital measurement departments such as Risk Management and Asset & Liability 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 various types of operational risk, the management of operational risk across credit and market risks, operational risk capital measurement, and guiding and supervising the operational risk management efforts of the first line of defense. The Internal Audit Department performs the functions as the third line of defense and assumes the responsibility for supervision, and is responsible for supervising the effectiveness of operational risk management.

In 2025, the Bank earnestly implemented new regulatory provisions on the measurement and management of operational risk. In line with the operational risk trends and regulatory focuses, the Bank continued to refine the governance structure and policy framework for operational risk management and improved the standards and processes for collecting operational risk loss data. It continuously consolidated the quality of operational risk loss data, upgraded the operational risk management system, and strengthened risk identification and monitoring in key areas and critical processes, thereby enhancing its operational risk management and control capabilities. During the reporting period, the operational risk control system of the Bank operated smoothly, and the operational risk was controllable on the whole.

Please refer to the 2025 Pillar 3 Disclosure Report of Capital Management of Industrial and Commercial Bank of China Limited issued by the Bank for further information on operational risk capital measurement.

# Legal Risk

Legal risk is the risk of incurring legal responsibilities, financial losses, reputational losses or other negative consequences to the Bank that arises out of or in connection with the failure of a 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

---

# Discussion and Analysis

strategy and policy relating to legal risk management, examining and approving relevant important matters. 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.

In 2025, 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, its business rules, relevant agreements and system construction were improved, and legal risk prevention and control in key areas and links were further pushed forward in line with the new requirements of financial regulators. The Bank also conducted ongoing monitoring of legal risks and 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, strengthened the legal risk management of overseas institutions, and enhanced the training of legal talents for overseas business, thus properly responding to cross-border legal issues emerging in the development of international operations. Moreover, the Bank ameliorated the function design and management mechanism for the electronic signing system, to further enhance its risk control capability and usability, and effectively prevent and control operational risk, legal risk and reputational risk caused by misuse of the contract seal. It continuously reinforced authorization management, related party management, and trademark management, and made efforts to constantly institutionalize risk management and control, and refine the structure of the system. The Bank devoted great energy to strongly dealing with lawsuit cases to protect the Bank’s rights and interests in accordance with laws and avoid and reduce risk losses. In addition to the active assistance 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. The Bank innovatively developed a bank-wide platform for promoting legal awareness, deepened the application of the intelligent platform for sharing legal services, and shared general and professional legal education resources with all employees, thereby continuously improving the accessibility of legal services for frontline and grassroots staff and enhancing the awareness of legality and compliance among the Group’s employees.

## Money Laundering Risk

Money laundering risk refers to the possibility that the products and services provided by a bank in the course of business operation and management are used for money laundering, terrorist financing, proliferation financing, or other predicate offenses for money laundering, thereby causing the bank to suffer losses. Any money laundering risk event or case may bring serious reputational risk and legal risk, and lead to customer loss, business loss and financial loss.

In strict compliance with anti-money laundering (“AML”) laws and regulations of China and host countries (regions) of overseas institutions, the Bank sincerely fulfilled the legal obligations and social responsibilities concerning AML. It strengthened the AML internal control mechanism building, reinforced the foundation of customer due diligence, conducted thorough money laundering risk assessments for institutions, customers, and products, and enhanced differentiated and adaptive controls over high-risk areas. It continuously improved the quality of suspicious transaction monitoring and the intelligence value of suspicious transaction reporting, improved the long-term mechanism for data governance, and deepened the digital and intelligent development of the AML system. It conducted tiered and multi-level AML training to continuously enhance the awareness and capabilities of all employees in fulfilling their AML duties.

## Reputational Risk

Reputational risk is defined as the risk of negative comments on a bank from stakeholders, the public or the media as a result of the behaviors of the bank or practitioners or external events and so on, 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. A 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.

In 2025, the Bank coordinated the advancement of reputational risk prevention and control, continuously optimized and improved the systems and mechanisms for reputational risk management, steadily enhanced its comprehensive response and handling capabilities, and proactively and prudently responded to public opinions. It also organized and promoted influential brand communication activities to enhance the Bank’s brand image. The Bank led the market in terms of brand value and network influence. During the reporting period, the reputational risk of the Bank stood in a stable and controllable range.

## Country Risk

Country risk is the risk incurred to a bank arising from the inability or refusal by the debtor to repay bank debt, losses suffered by the bank or its commercial presence in such country or region and other losses due to political, economic and social changes and events in a country or a region. Country risk may be triggered by the 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 and Internal Control Committee of the Senior Management 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 monitoring and stress testing. The Bank reviews the country risk rating and limits at least once every year.

In 2025, facing the increasingly complicated and severe external environment, the Bank strictly abided 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 the early warning mechanism for country risk, proactively conducted stress testing on country risk and effectively controlled country risk while steadily promoting internationalization.

## Information Technology and Cyber Security Risk

Information technology and cyber security risk refers to the operational, legal or reputational risk incurred in various IT activities by natural factors, human factors, technical vulnerabilities and managerial deficiencies, mainly involving areas such as technology governance, cyber and information security, innovative research and development, production and operation, business continuity, and technology outsourcing. The Bank incorporated information technology and cyber security risk into its Enterprise Risk Management System, and established and continuously refined the long-term mechanism of joint prevention and control for the three lines of defense.

In 2025, the Bank coordinated development and security, and regarded the prevention and control of information technology and cyber security risk as an important theme of its work so as to serve high-quality development with high-level security. It continued to optimize management systems related to information technology and cyber security, and, through dedicated task force mechanisms, coordinated efforts to enhance the Group’s cyber security protection capabilities. It enhanced the Group’s integrated management across domestic and overseas operations, and developed and promoted a unified production and operation platform and production and operation status view. It strengthened assurance capabilities for information system production and operations, improved the process for analyzing production incidents and issues, optimized information system contingency plans and carried out emergency drills. During the reporting period, the Bank’s overall risks in this area stood in a controllable range.

---

# Capital Management

The Bank implements a group-based capital management mechanism, and takes capital as the object and an instrument for its management activities, including planning, measurement, allocation, application and operation. The Bank’s capital management aims at maintaining an appropriate capital adequacy ratio and continuously meeting capital supervisory regulations and policies; ceaselessly strengthening and enhancing the capital base and supporting business growth and implementation of strategic planning; establishing a value management system focusing on Economic Value Added (EVA), reinforcing capital constraint and incentive mechanism and improving capital allocation efficiency; innovating and expanding capital replenishment channels, raising capital quality and optimizing capital structure. The Bank’s capital management covers various operating entities in the Group, and its contents include capital adequacy ratio management, economic capital management, capital investment and financing management.

In 2025, the Bank continuously improved scientific capital raising, efficient allocation, precise measurement, long-term constraint and normal optimization management mechanism, and continued to elevate the capital use efficiency. It appropriately conducted capital replenishment, optimized the capital structure and reduced the cost of capital, thus laying a solid capital foundation to serve the real economy. During the reporting period, all capital indicators performed well, of which the capital adequacy ratio was kept at a sound and appropriate level.

## Capital Adequacy Ratio and Leverage Ratio

Since 1 January 2024, the Bank has calculated its capital adequacy ratios at all levels in accordance with the Capital Rules. According to the scope of implementing the advanced capital measurement approaches as approved by the regulatory authorities, the Bank adopted the foundation internal ratings-based (“IRB”) approach for corporate credit risk and the advanced IRB approach for retail credit risk that met the regulatory requirements, and adopted the weighted approach for credit risk uncovered by the IRB approach, the standardized approach for market risk, and the standardized approach for operational risk. As at the end of 2025, the common equity tier 1 capital adequacy ratio, tier 1 capital adequacy ratio, capital adequacy ratio and leverage ratio calculated by the Bank in accordance with the Capital Rules stood at 13.57%, 14.94%, 18.76% and 7.51%, respectively, complying with regulatory requirements¹. ¹ The Bank’s capital adequacy ratio and leverage ratio both met the additional regulatory requirements for systemically important banks.

### CAPITAL ADEQUACY RATIO

In RMB millions, except for percentages

| Item | At 31 December 2025 | At 31 December 2024 |
| :--- | :--- | :--- |
| Net common equity tier 1 capital | 3,837,149 | 3,624,342 |
| Net tier 1 capital | 4,222,676 | 3,949,453 |
| Net capital base | 5,302,796 | 4,986,531 |
| Risk-weighted assets(1) (1) Refers to risk-weighted assets after capital floor and adjustments. | 28,269,948 | 25,710,855 |
| Credit risk-weighted assets | 25,927,325 | 23,386,013 |
| Market risk-weighted assets | 472,264 | 380,609 |
| Risk-weighted assets for switch between trading book and banking book | 81,449 | 103,748 |
| Operational risk-weighted assets | 1,788,910 | 1,840,485 |
| **Common equity tier 1 capital adequacy ratio (%)** | **13.57** | **14.10** |
| **Tier 1 capital adequacy ratio (%)** | **14.94** | **15.36** |
| **Capital adequacy ratio (%)** | **18.76** | **19.39** |

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# Discussion and Analysis

## LEVERAGE RATIO

In RMB millions, except for percentages

| Item | At 31 December 2025 | At 31 December 2024 |
| :--- | :---: | :---: |
| Net tier 1 capital | 4,222,676 | 3,949,453 |
| Balance of adjusted on- and off-balance sheet assets | 56,236,976 | 50,964,819 |
| **Leverage ratio (%)** | **7.51** | **7.75** |

Please refer to the 2025 Pillar 3 Disclosure Report of Capital Management of Industrial and Commercial Bank of China Limited issued by the Bank for further information on capital measurement and leverage ratio.

## Capital Financing Management

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 capital strength, optimize capital structure and control the cost of capital rationally.

In February 2026, the Bank received a reply from the NFRA, consenting the Bank to issue capital instruments and Total Loss-Absorbing Capacity (“TLAC”) non-capital debt instruments of up to RMB800.0 billion or equivalent foreign currency, including undated additional tier 1 capital bonds and tier 2 capital bonds of RMB750.0 billion or equivalent foreign currency and TLAC non-capital debt instruments of RMB50.0 billion or equivalent foreign currency.

### Issuance and Redemption of Capital Instruments

In March, April and July 2025, the Bank publicly issued three series of tier 2 capital bonds of the size of RMB50.0 billion each in the National Interbank Bond Market. All the raised funds after deducting the issuance expenses will be used to replenish the Bank’s tier 2 capital in accordance with applicable laws and the approval of relevant regulatory authorities.

In May and November 2025, the Bank publicly issued two series of undated additional tier 1 capital bonds of the size of RMB40.0 billion each in the National Interbank Bond Market. The raised funds are used to replenish the Bank’s additional tier 1 capital in accordance with applicable laws and the approval of relevant regulatory authorities.

In September 2025, the Bank redeemed all of the USD2.9 billion preference shares issued in the offshore market in September 2020.

In September and November 2025, the Bank redeemed the tier 2 capital bonds of RMB60.0 billion issued in the domestic market in September 2020 and the tier 2 capital bonds of RMB30.0 billion issued in the domestic market in November 2020.

In November 2025, the Bank reset the nominal dividend rate of “工行優1” again as it lasted five years from the previous reset date, and the coupon dividend rate after reset became 3.14% from 23 November 2025. Dividends will be paid annually.

### Issuance of TLAC Non-capital Debt Instruments

In October 2025, the Bank publicly issued TLAC non-capital bonds of RMB10.0 billion in the National Interbank Bond Market. After deducting the issuance expenses, the funds raised from the bond issuance will be used to enhance the Bank’s TLAC in accordance with applicable laws and the approval of relevant regulatory authorities.

---

# Discussion and Analysis

## USE OF PROCEEDS FROM FUNDRAISING ACTIVITIES

In RMB100 millions

| Bond name | Date of funds received | Size of proceeds from fundraising activities | Total proceeds from fundraising activities invested accumulatively as at the end of the reporting period | Use of proceeds from fundraising activities |
|---|---|---|---|---|
| 25 ICBC Perpetual Bond 01BC | 13 May 2025 | 400 | 400 | All the raised funds are used to replenish the Bank's additional tier 1 capital |
| 25 ICBC Perpetual Bond 02BC | 10 November 2025 | 400 | 400 | All the raised funds are used to replenish the Bank's additional tier 1 capital |
| 25 ICBC T2CN01BC | 3 March 2025 | 500 | 500 | All the raised funds, after deducting the issuance expenses, are used to replenish the Bank's tier 2 capital |
| 25 ICBC T2CN02BC | 30 April 2025 | 500 | 500 | All the raised funds, after deducting the issuance expenses, are used to replenish the Bank's tier 2 capital |
| 25 ICBC T2CN 003(BC) | 14 July 2025 | 500 | 500 | All the raised funds, after deducting the issuance expenses, are used to replenish the Bank's tier 2 capital |
| 25 ICBC TLACENCB01(BC) | 24 October 2025 | 100 | 100 | All the raised funds, after deducting the issuance expenses, are used to replenish the Bank's TLAC |

For details on the issuance and redemption of capital instruments and TLAC non-capital debt instruments of the Bank, please refer to the announcements published by the Bank on the website of the SSE, the "HKEXnews" website of the HKEX and the website of the Bank.

## Allocation and Management of Economic Capital

**Economic capital management** of the Bank includes three major aspects: measurement, allocation and application. Economic capital indicators include Economic Capital (EC), Risk-Adjusted Return on Capital (RAROC) and Economic Value Added (EVA). All of the above are applied in credit resource allocation, risk constraint, performance assessment, expenditure allocation, product pricing and customer management, etc.

The Bank continuously improved the EVA value ecosystem and leveraged the leading and driving role of capital. It further optimized the economic capital measurement policy, and increased the preferential allocation to key areas such as manufacturing, rural revitalization, green development, sci-tech innovation, inclusive pension and digital finance. The Bank improved the capital constraint mechanism and comprehensively strengthened capital management of domestic and overseas branches, controlled institutions and institutions of the Head Office. It increased the use of economic capital in incentive assessment, and actively promoted the adjustment of asset structure and the enhancement of value creation capacity.

---

# Assessment Indicators of Systemically Important Banks

## Global Systemically Importance Assessment Indicators of Commercial Banks

In accordance with the Capital Rules and the Instructions for G-SIB Assessment Exercise issued by the Basel Committee on Banking Supervision, the Bank calculated and disclosed the global systemically importance assessment indicators.

In RMB millions
| Indicator category | Indicator | 2025 |
| :--- | :--- | :--- |
| Global (cross-jurisdictional) activity | Cross-jurisdictional claims | 3,138,798 |
| | Cross-jurisdictional liabilities | 2,491,525 |
| Size | Balance of adjusted on- and off-balance sheet assets | 56,647,788 |
| Interconnectedness | Intra-financial system assets | 2,425,881 |
| | Intra-financial system liabilities | 5,148,198 |
| | Securities and other financing instruments issued | 9,407,432 |
| Substitutability | Assets under custody | 28,714,834 |
| | Payments settled via payment systems or correspondent banks | 757,274,654 |
| | Underwritten transactions in debt and equity markets | 2,386,705 |
| | Trading volume of fixed-income securities | 16,448,636 |
| | Trading volume of equities and other securities | 1,803,425 |
| Complexity | Notional amount of over-the-counter (“OTC”) derivatives | 16,371,086 |
| | Level 3 assets | 267,171 |
| | Trading and available-for-sale securities | 1,103,931 |

## Assessment Indicators of Domestic Systemically Important Banks

In accordance with the Measures for Assessment of Systemically Important Banks and the Notice on Launching the Assessment Data Completion of Systemically Important Banks issued by the PBC and the former CBIRC, the Bank calculated and disclosed the 2024 assessment indicators of domestic systemically important banks.

In RMB millions, unless otherwise specified
| Indicator category | Indicator | 2024 |
| :--- | :--- | :--- |
| Size | Balance of adjusted on- and off-balance sheet assets | 50,835,025 |
| Interconnectedness | Intra-financial system assets | 4,497,471 |
| | Intra-financial system liabilities | 7,052,833 |
| | Securities and other financing instruments issued | 3,540,897 |
| Substitutability | Payments settled via payment systems or correspondent banks | 844,866,143 |
| | Assets under custody | 23,657,509 |
| | Agency and commission-based business | 7,968,846 |
| | Number of corporate customers (in 10,000) | 1,335 |
| | Number of personal customers (in 10,000) | 75,938 |
| | Number of domestic operating institutions | 15,625 |
| Complexity | Derivatives | 17,685,271 |
| | Securities measured at fair value | 1,050,149 |
| | Assets of non-banking affiliates | 1,037,212 |
| | Wealth management business | 2,121,075 |
| | Cross-jurisdictional claims and liabilities | 5,275,796 |

---

# Discussion and Analysis

## Outlook

At present, changes unseen in a century are accelerating across the world, and the complexity, severity and uncertainty of the international landscape are on the rise. China is at a stage where development is facing both strategic opportunities and risks and challenges, with increasing uncertain and unpredictable factors. However, the conditions for and underlying trend of long-term growth remain unchanged. New quality productive forces are developing at a faster pace, reform and opening up are being continuously deepened, and risks in key areas are being prudently mitigated, providing a favorable environment for the banking sector to serve the Chinese modernization and advance its own steady development.

2026 marks the first year of the 15th Five-Year Plan period. The Bank will uphold Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, fully, accurately and faithfully implement the new development philosophy, stay committed to the functional role and mission of a large state-owned financial institution, and adhere to the general principle of pursuing progress while ensuring stability, improving quality and efficiency, balancing domestic and international imperatives and coordinating development and security. The Bank will remain committed to the main line of financial work of “preventing risks, strengthening regulation, and promoting high-quality development”, uphold the leadership of the Party building and the “five transformations”, maintain strategic resolve, strengthen confidence in victory, accelerate the transition toward a modern bank, and, with stronger responsibility and greater accomplishment, serve the cause of building a great country and advancing national rejuvenation.

The Bank will continue to give full play to its leading role as a “strong, excellent and large” bank, focus on its principal businesses and strengthen specialization, and continuously enhance its value creation capability, market competitiveness, international influence, and risk prevention and control. It will consolidate and expand its strengths, break bottlenecks and constraints, shore up weak links and shortcomings, and strive to facilitate the smooth circulation of factors such as finance, industry and technology on a broader scale. Centering on serving the Chinese modernization, the Bank will better implement major national strategies and meet the financial needs of key areas, strengthen its major responsibilities and core businesses in manufacturing, commerce and trade, and technology, increase support for investments in loans and bonds, proactively align with the “Major Strategies and Key Fields”, the “Renewal and Trade-in” programs and the development of major projects, and make greater contributions to the “Five Priorities”, so as to continuously enhance the suitability, inclusiveness, and accessibility of the financial supply.

The Bank will better coordinate development and security, regard risk prevention as the top priority of financial work, and develop strong compliance into a core competitiveness. It will consolidate and enhance the Enterprise Risk Management (ERM) system, deepen intelligent risk control as well as forward-looking early warning, prevention & control and response, safeguard the bottom lines for capital, liquidity, asset quality and compliance, and build a cleaner, healthier and more resilient balance sheet and a balanced, coordinated and sustainable income statement. In line with the trend of technological transformation, the Bank will seize the opportunities presented by “AI+”, continue to strengthen digital and intelligent momentum, and deepen the digital and intelligent transformation of business management and risk governance.

The Bank will uphold the high-quality Party building to guide its high-quality development and high-level security, promote the Party’s leadership across all areas and at all levels, improve the system for exercising full and strict Party self-governance in governing the Bank, unwaveringly improve conduct, enforce discipline and combat corruption, foster a financial culture with Chinese characteristics, and create a sound environment for work. It will guide all institutions in ensuring proper alignment with the 15th Five-Year Plan and its implementation in light of local conditions, so as to ensure that strategic arrangements are translated into operational results that are executable, measurable and verifiable, and continuously open up new prospects for high-quality development and high-level security.

---

# Hot Topics in the Capital Market

## Hot Topic 1: Bringing the Group's 14th Five-Year Plan to a Successful Close

The year 2025 marked the conclusion of China's 14th Five-Year Plan. During the year, ICBC upheld Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, closely aligned its growth with the country's path toward Chinese modernization, and maintained the guiding role of Party building. With advancements in "leveraging our strengths, tackling areas of weaknesses, solidifying the operational foundation and building stronger development foundation", the Bank successfully achieved the targets under the Group's 14th Five-Year Plan, demonstrating coordinated progress in high-quality development and robust security.

**The Bank leveraged its strengths to reinforce its competitive positioning and enhance service capabilities.** The traditional advantages in corporate banking, institutional banking, government-related banking and settlement finance were consolidated and expanded. Focusing on China's major strategies, projects and key industrial chains, the Bank deepened engagement with strategic customer groups and priority projects. This constituted strong support for high-quality development. As at the end of 2025, institutional deposits and corporate loans of the Bank increased by RMB2.4 trillion and RMB7.74 trillion, respectively, compared with the beginning of 2021; corporate settlement accounts reached 16.80 million; and the Group's bond investments exceeded RMB16 trillion, further strengthening the Bank's industry-leading position.

**The Bank tackled key areas of weaknesses to foster new growth drivers.** Retail banking delivered new momentum, with AUM balance recording a compound annual growth rate of over 9%, ranking first among comparable peers. By further improving "local-currency and foreign-currency, domestic and overseas integrated" operation pattern, the Bank saw the total assets of its overseas institutions grow by more than 16% during the Plan period. The Bank also extended its urban financial expertise to county-level markets, innovatively developed a GBC collaborative service system, and established new digital inclusive finance models. These efforts expanded the customer base and made the Bank's financial services more precise, accessible and targeted. As at the end of 2025, the balance of agriculture-related loans surpassed RMB5 trillion while inclusive loans quadrupled over five years. A development pattern featuring industry-agriculture mutual reinforcement and coordinated urban-rural growth has been taking shape at a faster pace.

**The Bank solidified the operational foundation to spur the internal driving forces.** The Bank implemented a series of reforms, including segmented operations in personal banking services and the reform of the Profitability Units. Institutional functions and business line responsibilities were optimized across key areas such as technology finance, inclusive finance, green finance, pension finance and digital finance. This improved the Head Office's decision-making capabilities, business line management, and operational efficiency at the grassroots level. The D-ICBC initiative and the effort of building a tech-empowered bank saw notable progress. The Bank's independently developed LLM with over 100 billion parameters, the first of its kind in the financial industry, has been leading innovation in applications. The Bank became the first in the financial industry to receive top ratings in both Financial Digital Transformation Maturity Model (FDMM) Assessment and Data Management Capability Maturity Assessment Model (DCMM). It also received the Special Award of FinTech Development Awards for its ECOS Project, retained *The Chinese Banker's* "Institution of Excellence in Financial Innovation of the Year" award, and ranked first among its peers in both patent publications and cumulative patent grants.

**The Bank built stronger development foundation to unlock operational vitality.** In terms of customer base, personal customers of the Bank increased by over 100 million from the beginning of 2021 to more than 780 million, while corporate customers grew by 71% to over 14.00 million. In terms of service capacity, average deposits per outlet rose by more than 50% from the beginning of 2021. Personal mobile banking took the lead in reaching customers of over 600 million and recorded more than 290 million MAUs. In terms of talent base, the workforce structure continued to improve. The talent pool for key areas, including the "Five Priorities", consisted of more than 2,000 professionals. The Bank also had more than 10 thousand core talents and over 40 thousand technology and data specialists. Additionally, an international talent reserve of more than 3,200 professionals was established.

Through efforts during the 14th Five-Year Plan period, the Bank has further polished its "Strong, Excellent, Large and Stable" features. **Its core businesses became stronger**, with loans invested in the manufacturing industry exceeding RMB5 trillion, trade finance surpassing RMB1 trillion, and sci-tech loans reaching RMB6 trillion. **The financial quality improved.** In 2025, the Bank's operating income and net profit both achieved positive growth, net profit reached a record high, with the cost-to-income ratio among the best of its peers. **The Bank**

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# Discussion and Analysis

**made greater contributions,** underpinned by its long-standing global leadership in key indicators such as total assets, deposits, loans and capital. The incremental funding of approximately RMB4 trillion was provided to the real economy annually in average. Lending to the “Major Strategies, Key Field and Weak Links” grew by over 40% cumulatively. **The operation remained more stable.** Capital adequacy ratio and allowance to NPLs rose by 1.9 and 32.9 percentage points, respectively, from the beginning of 2021, while NPL ratio declined by 27BP. Various risks were generally under control.

## Hot Topic 2: Making Solid Progress in “Five Transformations”

In 2025, amid evolving external conditions and a shifting competition landscape, the Bank remained committed to enhancing adaptability through reform and transformation. Focusing on the principle of “guarding against risks, strengthening supervision, and promoting high-quality development”, ICBC further deepened the “five transformations”. This led to solid progress toward higher-quality and more advanced development despite a complex business environment.

## Intensifying Intelligent Risk Control Effectively to Reinforce Security

The Bank further improved the enterprise risk management system by strengthening coordination across functions and ensuring alignment throughout the Bank. A three-in-one structure was enhanced to form a cohesive approach to risk control, with the Risk Management and Internal Control Committee acting as the lead coordinator, the risk officers enforcing accountability, and risk control departments focusing on capacity building. Responsibilities at the first line of defense were reinforced, supported by the implementation of new policies on internal control, approval, and audit. The three lines of defense were further integrated. The Bank accelerated the deployment of the enterprise-level intelligent risk control platform, and “4E centers” fully covered the Head Office and branches, driving down the Bank’s NPL ratio by 3BP from the end of the previous year.

## Improving Modern Layout Continuously to Make Core Capabilities Stronger

The Bank actively supported China’s major strategies, key fields and weak links. It reached out to serve “Major Strategies and Key Fields” and “Renewal and Trade-in”, including by carrying out special initiatives to boost consumption. During the year, total incremental value of loans and bond investments reached RMB4.8 trillion, maintaining a leading market position. Performance across “Five Priorities” was strong, with relevant financing balances remaining market-leading and growing faster than the Bank’s overall average. The Bank’s contribution to the banking industry’s growth increased steadily. The Bank also adhered to modernizing itself through coordinated development across four dimensions. First, the core businesses gained further prominence, with the balance of loans invested in the manufacturing industry and sci-tech loans ranking first among peers, and their shares in total lending rising by 1.7 and 2.0 percentage points respectively from the end of last year. Second, the existing strengths continued to expand. The Bank led the industry in terms of green loan balance and the underwriting amount of domestic ESG bonds, while moving faster to extend its urban financial expertise to county-level markets. Third, the Bank’s foundational capabilities improved, supported by the robust development in major regions at home and abroad. Fourth, new growth drivers developed at a faster pace. The Bank became the first among its peers to exceed RMB32 trillion in asset custody scale, while its income from investment banking advisory and commission-based wealth distribution topped its comparable peers. Loans for technological transformation and equipment renewal increased by nearly three folds. These effectively supported the development of new quality productive forces.

## Accelerating the Cultivation of Digital and Intelligent Driver to Foster New Quality Productive Forces

The Bank innovatively launched the “AI+” Action Plan, deploying over 500 AI applications across more than 30 business areas, leading the industry in both scale and depth. AI digital employees handled the workloads of 55 thousand persons a year. Keeping pace with sci-tech development, the Bank developed an ICBC Zhiyong-based coordinated intelligent agent system, featuring “one super agent and multiple specialized agents”. An enterprise-level data space was also built, which not only enables the standardization of data definitions and metrics across the Bank but also improves data timeliness to better support business efficiency. Platforms became more intelligent. Customer service platforms were enhanced under a “one customer, one advisor” model, with both the mobile banking user base and MAUs ranking first among comparable peers. Open Banking partners reached 79 thousand, while the ICBC e-Life recorded 22.17 million MAUs. Internally, the Bank improved employee platforms under a “one position, one assistant” model, and “Counter Express” achieved full branch coverage.

---

# Discussion and Analysis

An intelligent agent for corporate marketing was put into place, while "Gong Xiao Cai", an AI agent for retail marketing, was launched, fully empowering client managers in marketing and employees in daily operations.

## Expanding Integrated Services Continuously to Grow with Customers

The Bank adopted a customer-centric approach to develop comprehensive financial solutions, delivering integrated, full-lifecycle services, combining financing, advisory, technology-enabled services, and connectivity. Meanwhile, the Bank stepped up its efforts to advance the globally integrated operating model. Through ICBC's global network, it served customers worldwide with both domestic and international markets and resources. In 2025, overseas institutions contributed a steadily growing share of operating income, while domestic integrated subsidiaries achieved the year-on-year growth rate of 22.1% in operating income. Customer-product alignment was strengthened through a comprehensive customer mapping system and a full product catalog. The number of medium-sized customers with outstanding loans reached 38 thousand. Personal customers with average daily assets of RMB10 thousand or above numbered 130 million. Assets growth from long-tail personal customers and lower-tail corporate customers accounted for 61.8% and 26.5%, respectively, of total assets growth in the personal and corporate segments during the same period.

## Developing Ecosystem Steadily to Reinforce Balanced and Robust Growth

The Bank continued to deepen the GBC+ projects, further synergizing the customer, capital, service, and value chains. Corporate customers increased to 14.75 million, while personal customers reached 782 million. Funds related to the payroll agency service exceeded RMB6 trillion, maintaining leading positions among comparable peers in both scale and growth. With a focus on long-term value, the Bank strived to build a clean and healthy balance sheet as well as a balanced, coordinated, and sustainable income statement. Value creation, market position, risk prevention and control, and capital constraints were dynamically balanced. In 2025, the Bank continued to lead its comparable peers in net profit, pre-provision profit, operating income, and net fee and commission income. The cost of liabilities remained competitive among comparable peers, asset quality improved steadily, and the Bank’s capabilities in value creation, market competitiveness, market influence, and risk management continued to enhance.

# Hot Topic 3: Enhancing Development of Deposits with Improved Quality and Efficiency, Leading Peers with Steady Growth and Good Pricing

In 2025, the Bank coordinated the promotion of the GBC+ projects. Total deposits maintained steady growth, witnessing a continuous optimization in structure, an effective reduction in costs and a significantly higher daily average balance. They exhibited more pronounced characteristics of high-quality development, providing more stable and sustainable funding support for serving the real economy.

## I. Maintaining a Leading Position among Peers in Total Volume through Segment and Business Line Synergy

Facing a complex and ever-changing competitive environment, the Bank proactively analyzed the rule of social fund circulation, further enhancing its competitiveness in deposit market. In 2025, the Group's **due to customers** increased by RMB2.5 trillion from the beginning of the year to RMB37.3 trillion, representing additional year-on-year growth of RMB1.2 trillion or an increase of 7.1%. Focusing on customers' diversified and scenario-based savings needs, the Bank innovated products and services such as Zhi Cun Bao and certificates of deposit featuring the solar terms. The balance of RMB **personal deposits** of domestic branches exceeded RMB19 trillion, with a growth of over RMB2.0 trillion, reaching a record high. The Bank also actively expanded service scenarios such as finance, social security, education, and medical care, as well as key customer groups, including the SRDI enterprises, "Little Giants" firms and corporate merchants. The balance of RMB **corporate deposits** of domestic branches increased by RMB840.0 billion from the beginning of the year to RMB15.0 trillion, maintaining a leading position among peers.

## II. Achieving Remarkable Results in Cost Control with Prominent Advantages in Volume-Pricing Coordination

Adhering to the philosophy of coordinated development of deposit volume and pricing and actively responding to the self-disciplinary initiative on the pricing of market-oriented interest rates, the Bank achieved steady growth in deposit scale while ensuring a consistent decline in interest-bearing costs. In 2025, the Group's deposit cost decreased by 36BP from the previous year, representing additional year-on-year decrease of 19BP. Both the cost level and

---

the decrease were among the best in the industry. By continuously optimizing the product structure and launch pace, the interest rate of newly attracted deposits remained lower than the industry average, showcasing the Bank’s professional capability in pricing management. Relying on its profound foundation and robust service capabilities in custody, settlement, and depositary, the Bank strengthened the accumulation of low-cost demand deposit funds, resulting in a significantly narrowed decline in the proportion of demand deposits compared to the previous year and providing critical support for the management of overall liability costs.

Bank aims to provide more stable and sustainable funding for the high-quality development of the economy and society, while delivering long-term and stable value returns for investors.

## III. Ensuring Balanced and Steady Growth of Daily Average Deposits to Optimize Fund Matching Efficiency

The Bank placed a high priority on the accumulation of daily average deposits, continuously enhancing its management by securing source funds at an early stage and smoothing fund circulation chains. In 2025, the daily average growth of domestic branches’ customer deposits denominated in RMB reached RMB1.7 trillion, characterized by a steady upward trend and a significantly enhanced growth balance. By proactively strengthening its forward-looking asset-liability management, the Bank achieved a better match between its daily average increments of loans and deposits than its comparable peers, underscoring its solid support of deposits for credit supply.

Looking ahead, the Bank will remain committed to the high-quality development of its deposit business, emphasizing both volume and quality as well as coordinated volume and pricing development. Through stronger liability support and better financial services, the Bank aims to provide more stable and sustainable funding for the high-quality development of the economy and society, while delivering long-term and stable value returns for investors.

## Hot Topic 4: Continuously Expanding Consumer Financing Supply to Boost Domestic Demand and Consumer Spending

In 2025, the Bank upheld its responsibilities as a leading bank, and aligned itself with the strategic direction of Chinese modernization. To boost domestic demand and consumer spending, the Bank strengthened resource coordination and technological empowerment, optimized its consumer financing supply, broadened service coverage and enhanced service precision, contributing to the high-quality expansion of the consumer market.

### I. Consistent Scale Growth Underpinned by Robust Financial Support

Adhering to a proactive and targeted approach, the Bank made stronger lending to consumption sector to fully meet the reasonable financing needs of residents. At the end of 2025, the balance of personal consumption loans at domestic branches exceeded RMB430.0 billion, representing an increase of over RMB80.0 billion from the beginning of the year and an annual growth of 23% that significantly outperformed the Bank’s overall average loan growth. With a three-year compound growth rate maintained above 35%, the Bank demonstrated the enduring effectiveness of its financial support.

### Scale of Personal Consumption Loans of Domestic Branches over the Past Three Years
Unit: RMB100 millions

| Period | Balance of loans | Increase of loans |
| :--- | :--- | :--- |
| At the end of 2023 | 2,648 | 905 |
| At the end of 2024 | 3,507 | 859 |
| At the end of 2025 | 4,327 | 820 |

---

# Discussion and Analysis

## II. Diversified Product Portfolio to Strengthen “Customer — Scenario — Product” Alignment

By integrating “investment in people” with “investment in assets”, the Bank established a comprehensive consumer finance product portfolio covering all customer groups and multiple scenarios, with a view to better meeting personalized and diversified financial needs. Focusing on key groups such as new urban residents, university graduates, elderly customers and flight trainees, the Bank introduced tailored products designed for diverse fields, including education and elderly care. These initiatives effectively unlocked the consumption potential of these priority groups. As at the end of 2025, the total balance of loans to tailored products, such as “Annuity Quick Loan” for seniors and “Academic Excellence Loan” for graduates, stood at nearly RMB3.0 billion, benefiting over 22 thousand customers.

## III. Efficient Policy Execution with Targeted Public Benefit Delivery

Guided by its commitment to public welfare, the Bank actively implemented people-oriented policies, such as fiscal interest subsidies on consumption loans. The Bank efficiently upgraded its systems and established dedicated interest subsidy program, taking the lead in creating a dual-track identification mechanism driven primarily by “automated system recognition and supplemented by manual reviews”. Since the implementation of these policies, the Bank has signed subsidy service agreements with about 1.90 million customers, and processed subsidy for over 30.00 million consumption transactions which were eligible for subsidy, ensuring policy benefits reach households with precision. Furthermore, the Bank proactively aligned with national strategies to promote the consumer goods trade-in programs and bolster spending on big-ticket items. It partnered with leading automotive manufacturers to advance scrapping-and-replacement and trade-in initiatives. By establishing a “direct to manufacturer” connectivity and scenario-based service model, the Bank significantly enhanced the efficiency of its automotive finance. Total personal automotive financing exceeded RMB160.0 billion for the year, delivering robust support for the national strategy to bolster domestic demand.

## IV. Channel Integration to Enhance Service Accessibility

The Bank strengthened its digital empowerment to bridge the gap between online and offline services, establishing an omni-channel framework. By deepening integration with government data sources, the Bank has fully digitalized the entire lending lifecycle of “application — credit granting — drawdown”, making near-instant response the new standard and creating a seamless apply-and-receive financing experience. Offline, the introduction of lightweight channels, such as marketing PAD and the refinement of the “online application and offline interconnection” model have significantly improved the accessibility and convenience of consumer financing services.

## V. Attaching Equal Importance to Risk Control and Compliance to Improve Development Quality and Efficiency

Following the principle of “guarding against risks, strengthening supervision, and promoting high-quality development”, the Bank implemented the “Three Gates and Seven-color Pools” framework for full-process risk management. It enhanced monitoring and early-warning capabilities for personal loans to ensure early identification and resolution. By refining customer access standards and intensifying the identification of over-indebtedness, the Bank strictly controlled the loan quality at the “entrance” end. It advanced digital risk management by leveraging machine learning algorithm to iterate anti-fraud models and establishing a credit risk monitoring system. A dual-track monitoring and screening mechanism driven by “online model + offline staff” was implemented to form a closed-loop “monitoring — feedback — optimization” management process. Furthermore, by strengthening NPL management and advancing collection, securitization, and write-off efforts, the Bank improved disposal efficiency at the “exit” end, fortifying the safety barrier for business growth.

---

# Hot Topic 5: Advancing Digital and Intelligent Driver and Developing "ICBC Zhiyong" Large Model Technology System

In 2025, ICBC thoroughly implemented the national "AI+" Action. At the Group level, it spearheaded the "AI+" Action Plan, creating **"ICBC Zhiyong" — a large model technology system** that is self-developed and industry-leading, helping the business application achieve phased results.

## I. Technical Foundation: Forging a Self-developed AI Financial Infrastructure

The Bank built an intelligent engine that integrates a large-model elastic computing pool with multi-model clusters mainly based on domestic computing power. This architecture supports minute-level switching between training mode and inference mode, enabling a high-efficiency "daytime inference, night-time training" operational cycle. The Bank integrated over ten mainstream models, and conducted the second training within the Bank, building an enterprise-level foundation model matrix with a profound understanding of both finance and ICBC-specific operations.

## II. Knowledge Engineering: Building an Enterprise-level Cognitive Hub to Drive Digital and Intelligent Transformation

The Bank has built a "1+4+X" AI knowledge engineering framework, comprising a unified enterprise knowledge base, four primary training datasets, and multiple specialized Retrieval-Augmented Generation (RAG) repositories. It pioneered a three-tier modelling methodology encompassing Operation Data Store (ODS), Data Warehouse (DW) and Data Mart (DM), supported by an operating mechanism that fosters bank-wide co-development. By integrating the full process covering data collection, processing, governance, training, and application, the Bank has achieved large-scale, standardized and intelligent management of knowledge assets, providing precise inference support for complex scenarios such as credit risk assessment and investment decision-making.

## III. Agent Collaboration: Exploring the AI-native Financial Productivity Paradigm

The Bank has developed a multi-tier agent collaboration framework and an agent creation platform of low-code development capability. This system supports multiple task orchestration modes, providing technology and business workforce with visual agent authoring tools, and achieving rapid agent building and flexible composition. A comprehensive AI security framework has been established to provide full-chain protection across infrastructure, data, models, and applications.

## IV. Business Empowerment: Building Professional and Inclusive Financial Applications

Over 500 AI applications have been deployed across more than 30 business areas of the Bank, and AI digital employees handled the workloads of 55 thousand persons a year. It empowered four core scenarios:

**Investment and trading:** The intelligent investment research assistant was developed to deliver market insights, strategy analysis, investment management support and other functions, helping traders quickly perceive market changes and develop better investment plans and trading strategies;

**Marketing and customer acquisition:** The marketing assistant for personal customer managers was established to offer wealth management, investment companion and other services, creating a new human-machine collaborative marketing model that has boosted customer service quality and efficiency;

**Risk prevention and control:** The intelligent credit assistant was launched to provide the whole-process risk control support encompassing customer analysis, policy interpretation, risk early warnings, and financing recommendations, etc.;

**Operational efficiency:** The centralized operations assistant and remote banking assistant were improved to provide intelligent approval, quality inspection, Q&As and other services, improving business processing efficiency and reducing operational risks.

## V. Ecosystem Evolution: Building an Evolving AI-Native System

Driven by the "AI+" Action Plan and supported by a multi-tier agent collaboration framework and an integrated R&D and O&M system, the Bank promoted the closed-loop iteration across its technical foundation, knowledge engineering, and business scenarios, ensuring that the ecosystem remains independent, controllable and ever-evolving.

---

# Details of Changes in Share Capital and Shareholding of Substantial Shareholders

## Changes in Ordinary Shares

### DETAILS OF CHANGES IN SHARE CAPITAL

Unit: Share

| Category | At 31 December 2024: Number of shares | At 31 December 2024: Percentage (%) | Increase/decrease during the reporting period | At 31 December 2025: Number of shares | At 31 December 2025: Percentage (%) |
| :--- | :--- | :--- | :--- | :--- | :--- |
| **I. Shares subject to restrictions on sales** | - | - | - | - | - |
| **II. Shares not subject to restrictions on sales** | **356,406,257,089** | **100.00** | **-** | **356,406,257,089** | **100.00** |
| 1. RMB-denominated ordinary shares | 269,612,212,539 | 75.65 | - | 269,612,212,539 | 75.65 |
| 2. Foreign shares listed overseas | 86,794,044,550 | 24.35 | - | 86,794,044,550 | 24.35 |
| **III. Total number of shares** | **356,406,257,089** | **100.00** | **-** | **356,406,257,089** | **100.00** |

Notes: 
(1) The above data are based on the Equity Structure Chart issued by China Securities Depository and Clearing Corporation Limited.
(2) "Foreign shares listed overseas", namely H shares, are within the same meaning as defined in the "No. 5 Standards on the Content and Format of Information Disclosure of Companies with Public Offerings — Content and Format of the Report of Change in Corporate Shareholding" (Revision 2022) of the CSRC.
(3) Due to rounding, percentages presented herein are for reference only.

## Details of Securities Issuance and Listing

During the reporting period, the Bank did not issue any shares, did not have any employee shares, nor did it issue any convertible bonds.

The Bank did not issue corporate bonds to be disclosed in accordance with Chapter II, Section 7 of the "No. 2 Standards on the Content and Format of Information Disclosure of Companies with Public Offerings — Content and Format of the Annual Report" of the CSRC, nor did it have the above-mentioned corporate bonds existed on the approval date of this Report.

For details on the issuance of preference shares of the Bank, please refer to the section headed "Details of Changes in Share Capital and Shareholding of Substantial Shareholders — Preference Shares".

For details on the issuance progress of tier 2 capital bonds and undated additional tier 1 capital bonds of the Bank during the reporting period, please refer to the section headed "Discussion and Analysis — Capital Management".

For information on other securities issued by the Bank and its subsidiaries, please refer to "Note 36. to the Consolidated Financial Statements: Debt Securities Issued; and Note 39. to the Consolidated Financial Statements: Other Equity Instruments" for details.

## Number of Shareholders and Particulars of Shareholding

As at the end of the reporting period, the Bank had a total number of 687,375 ordinary shareholders and no holders of preference shares with voting rights restored or holders of shares with special voting rights, including 100,736 holders of H shares and 586,639 holders of A shares. As at the end of the month immediately before the annual results announcement date (28 February 2026), the Bank had a total number of 823,962 ordinary shareholders and no holders of preference shares with voting rights restored or holders of shares with special voting rights.

---

# Details of Changes in Share Capital and Shareholding of Substantial Shareholders

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

Unit: Share

| Name of shareholder | Nature of shareholder | Class of shares | Increase/decrease of shares during the reporting period | Number of shares held at the end of reporting period | Shareholding percentage (%) | Number of pledged/locked-up/marked shares |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Huijin | State-owned | A Share | – | 124,004,660,940 | 34.79 | None |
| MOF | State-owned | A Share | – | 110,984,806,678 | 31.14 | None |
| HKSCC Nominees Limited⁽⁵⁾ | Foreign legal person | H Share | 20,383,643 | 86,187,686,896 | 24.18 | Unknown |
| SSF⁽⁶⁾ | State-owned | A Share | – | 12,331,645,186 | 3.46 | None |
| China Securities Finance Co., Ltd. | State-owned legal person | A Share | – | 2,416,131,540 | 0.68 | None |
| Hong Kong Securities Clearing Company Limited⁽⁷⁾ | Foreign legal person | A Share | -785,665,459 | 1,744,554,429 | 0.49 | None |
| China Life Insurance Company Limited — Traditional — Ordinary insurance products — 005L — CT001 Hu | Other entities | A Share | 1,051,968,870 | 1,159,646,865 | 0.33 | None |
| Central Huijin Asset Management Ltd. | State-owned legal person | A Share | – | 1,013,921,700 | 0.28 | None |
| ICBC — SSE 50 Exchange Traded Securities Investment Funds⁽⁸⁾ | Other entities | A Share | -60,078,113 | 598,456,760 | 0.17 | None |
| Industrial and Commercial Bank of China — Huatai-PB CSI 300 ETF⁽⁹⁾ | Other entities | A Share | -71,603,014 | 533,451,547 | 0.15 | None |

**Notes:**
(1) The above data are based on the Bank's register of shareholders as at 31 December 2025.
(2) The Bank had no shares subject to restrictions on sales.
(3) HKSCC Nominees Limited is a wholly-owned subsidiary of Hong Kong Securities Clearing Company Limited. Huijin held 100% equity of Central Huijin Asset Management Ltd., and held 66.70% equity of China Securities Finance Co., Ltd. Save as disclosed above, as at 31 December 2025, the Bank is not aware of any connected relations or acting-in-concert relations among the aforementioned shareholders.
(4) Except to the extent unknown to HKSCC Nominees Limited, the top 10 shareholders of the Bank did not participate in any margin trading, short selling or refinancing business.
(5) The number of shares held by HKSCC Nominees Limited at the end of the period refers to the total number of H shares held by it as a nominee on behalf of all institutional and individual investors registered with accounts opened with HKSCC Nominees Limited as at 31 December 2025, which included H shares of the Bank held by the SSF and Ping An Asset Management Co., Ltd.
(6) At the end of the reporting period, according to the information provided by the SSF to the Bank, the SSF held 6,718,446,133 H shares of the Bank and 19,050,091,319 A and H shares in aggregate, accounting for 5.35% of the Bank's total ordinary shares.
(7) The number of shares held by Hong Kong Securities Clearing Company Limited at the end of the period refers to the total A shares (Northbound shares of the Shanghai-Hong Kong Stock Connect) held by it as a nominal holder designated by and on behalf of Hong Kong and foreign investors as at 31 December 2025.
(8) "ICBC — SSE 50 Exchange Traded Securities Investment Funds" are securities investment funds raised as approved by the CSRC in the Zheng Jian Ji Jin Zi [2004] No. 196 Document dated 22 November 2004, with China Asset Management Co., Ltd. as the fund manager and ICBC as the fund custodian.
(9) The "Industrial and Commercial Bank of China — Huatai-PB CSI 300 ETF" is a securities investment fund approved by the CSRC in the CSRC Document [2012] No. 392 dated 23 March 2012. Huatai-PineBridge Fund Management Co., Ltd. acts as the fund manager and ICBC acts as the fund custodian.

## Particulars of Substantial Shareholders

During the reporting period, the Bank's controlling shareholders and de facto controller remained unchanged.

---

# Details of Changes in Share Capital and Shareholding of Substantial Shareholders

## Controlling Shareholders

The largest single shareholder of the Bank is Huijin, whose full name is Central Huijin Investment Ltd. Huijin is a state-owned company founded by the State according to the Company Law on 16 December 2003. Its registered capital is equal to its paid-in capital at RMB828,209 million. Its registered address is New Poly Plaza, 1 Chaoyangmen North Street, Dongcheng District, Beijing. Its unified social credit code is 911000007109329615, and its legal representative is Zhang Qingsong. Huijin is a wholly-owned subsidiary of China Investment Corporation. In accordance with authorization by the State Council, Huijin makes equity investments in major state-owned financial enterprises, and shall, to the extent of its capital contribution, exercise the rights and perform the obligations as an investor on behalf of the State in accordance with applicable laws, to achieve the goal of preserving and enhancing the value of state-owned financial assets. Huijin does not engage in any other business activities, and does not intervene in the day-to-day business operations of the key state-owned financial institutions it controls.

As at 31 December 2025, Huijin held approximately 34.79% shares of the Bank. It held shares directly in the institutions listed below:

| No. | Company name | Huijin’s shareholding percentage |
|---|---|---|
| 1 | China Development Bank Corporation | 34.68% |
| 2 | Industrial and Commercial Bank of China ★☆ | 34.79% |
| 3 | Agricultural Bank of China Limited ★☆ | 40.14% |
| 4 | Bank of China Limited ★☆ | 58.59% |
| 5 | China Construction Bank Corporation ★☆ | 54.61% |
| 6 | China Everbright Group Ltd. | 63.16% |
| 7 | China Export & Credit Insurance Corporation | 73.63% |
| 8 | China Reinsurance (Group) Corporation ☆ | 71.56% |
| 9 | China Jianyin Investment Limited | 100.00% |
| 10 | China Galaxy Financial Holdings Company Limited | 69.07% |
| 11 | Shenwan Hongyuan Group Co., Ltd. ★☆ | 20.05% |
| 12 | New China Life Insurance Company Limited ★☆ | 31.34% |
| 13 | China International Capital Corporation Limited ★☆ | 40.11% |
| 14 | Zhong Hui Life Insurance Co., Ltd. | 80.00% |
| 15 | China Great Wall Asset Management Co., Ltd. | 94.34% |
| 16 | China Orient Asset Management Co., Ltd. | 71.55% |
| 17 | China Cinda Asset Management Co., Ltd. ☆ | 58.00% |
| 18 | China Agricultural Reinsurance Co., Ltd. | 55.90% |
| 19 | China Securities Finance Corporation Limited | 66.70% |
| 20 | China Gold Coin Group Co., Ltd. | 100.00% |
| 21 | Huida Asset Management Co., Ltd. | 100.00% |
| 22 | Evergrowing Bank Co., Limited | 40.46% |
| 23 | Bank of Hunan Corporation Limited | 17.71% |
| 24 | Jiantou CITIC Asset Management Co., Ltd. ★☆ | 30.76% |
| 25 | China Galaxy Asset Management Co., Ltd. | 12.66% |
| 26 | Guotai Junan Investment Management Co., Ltd. | 14.54% |

**Notes:**
(1) ★ represents A share listed company, while ☆ represents H share listed company.
(2) Except the above-mentioned controlling or equity participating enterprises, Huijin also has a wholly-owned subsidiary — Central Huijin Asset Management Ltd.

The second single largest shareholder of the Bank is the MOF, which held approximately 31.14% shares of the Bank as at 31 December 2025. The MOF is a department under the State Council, and is responsible for overseeing the State’s fiscal revenue and expenditure, formulating the fiscal and taxation policies, and supervising State finance at a macro level.

---

# Details of Changes in Share Capital and Shareholding of Substantial Shareholders

## Particulars of Other Substantial Shareholders

SSF. The SSF owned 5.35% of the shares of the Bank as at 31 December 2025. Founded in August 2000, the SSF is a public service institution administered by the MOF, having its address at South Tower, Building 11, Fenghuiyuan Fenghui Times Building, Xicheng District, Beijing, China, and its legal representative being Liu Kun. With the approval of the State Council and pursuant to regulations of the MOF and the Ministry of Human Resources and Social Security, the SSF has been entrusted to manage the following funds: the National Social Security Fund, basic pension insurance fund, the partial state-owned capital transferred and cash proceeds.

## Particulars of the De Facto Controller

From perspectives such as shareholders' shareholding ratios, the composition of the Board of Directors, the entities recommending and nominating its members, and any acting-in-concert agreements or arrangements among shareholders, there is no entity that can exercise actual control over the Bank's conduct. Therefore, the Bank has no de facto controller.

## Interests and Short Positions Held by Substantial Shareholders and Other Persons

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

As at 31 December 2025, the Bank received notices from the following persons about their interests or short positions held in the Bank’s ordinary shares and underlying shares, which were recorded in the register pursuant to Section 336 of the Securities and Futures Ordinance of Hong Kong as follows:

**HOLDERS OF A SHARES**

| Name of substantial shareholder | Capacity | Number of A shares held (share) | Nature of interests | Percentage of A shares⁽¹⁾ (%) | Percentage of total ordinary shares⁽¹⁾ (%) |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Huijin | Beneficial owner | 124,004,660,940 | Long position | 45.99 | 34.79 |
| | Interest of controlled corporations | 3,430,053,240 | Long position | 1.27 | 0.96 |
| | **Total** | **127,434,714,180** | | **47.27** | **35.76** |
| MOF | Beneficial owner | 110,984,806,678 | Long position | 41.16 | 31.14 |

Note: (1) Due to rounding, percentages presented herein are for reference only.

**HOLDERS OF H SHARES**

| Name of substantial shareholder | Capacity | Number of H shares held (share) | Nature of interests | Percentage of H shares⁽³⁾ (%) | Percentage of total ordinary shares⁽³⁾ (%) |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Ping An Asset Management Co., Ltd.⁽¹⁾ | Investment manager | 16,510,803,000 | Long position | 19.02 | 4.63 |
| SSF⁽²⁾ | Beneficial owner | 6,938,013,180 | Long position | 7.99 | 1.95 |
| BlackRock, Inc. | Interest of controlled corporations | 4,424,690,696 | Long position | 5.10 | 1.24 |
| | | 15,657,000 | Short position | 0.02 | 0.00 |

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# Details of Changes in Share Capital and Shareholding of Substantial Shareholders

**Notes:**

1. As confirmed by Ping An Asset Management Co., Ltd., such shares were held by Ping An Asset Management Co., Ltd. on behalf of certain customers (including but not limited to Ping An Life Insurance Company of China, Ltd.) in its capacity as investment manager and the interests in such shares were disclosed based on the latest disclosure of interests form filed by Ping An Asset Management Co., Ltd. for the period ended 31 December 2025 (the date of relevant event being 12 February 2025). Both Ping An Life Insurance Company of China, Ltd. and Ping An Asset Management Co., Ltd. are subsidiaries of Ping An Insurance (Group) Company of China, Ltd. As Ping An Asset Management Co., Ltd. is in a position to fully exercise the voting rights in respect of such shares on behalf of customers and independently exercise the rights of investment and business management in its capacity as investment manager, and is completely independent from Ping An Insurance (Group) Company of China, Ltd., Ping An Insurance (Group) Company of China, Ltd. is exempted from aggregating the interests in such shares as a holding company under the aggregation exemption and disclosing the holding of the same in accordance with the Securities and Futures Ordinance of Hong Kong.
2. According to the information provided by the SSF to the Bank, the SSF held 6,718,446,133 H shares of the Bank as at the end of the reporting period, accounting for 7.74% of the Bank's H shares and 1.89% of the Bank's total ordinary shares.
3. Due to rounding, percentages presented herein are for reference only.

## Preference Shares

### Issuance and Listing of Preference Shares in the Past Three Years

The Bank did not issue any preference shares in the past three years.

### Reset dividend rate of “工行優1”

Pursuant to relevant provisions of the Prospectus on the Non-Public Offering of Preference Shares of Industrial and Commercial Bank of China Limited ("Prospectus"), domestic preference shares non-publicly offered by the Bank in November 2015 (abbreviation “工行優1” and code: “360011”) were priced at a coupon dividend rate adjusted in stages, with the coupon dividend rate being the benchmark interest rate plus a fixed spread. The coupon dividend rate for the first five years remained unchanged from the date of issuance, and subsequently the benchmark interest rate will be reset every five years, and the nominal dividend rate during each reset period will remain unchanged. In November 2025, the Bank reset the nominal dividend rate of “工行優1” again according to relevant clauses of the Prospectus as it lasted five years from the previous reset date, and the coupon dividend rate after reset became 3.14% from 23 November 2025.

For details on the reset dividend rate of domestic preference shares of the Bank, please refer to the announcements published by the Bank on the website of the SSE, the “HKEXnews” website of the HKEX and the website of the Bank.

### Number of Preference Shareholders and Particulars of Shareholding

As at the end of the reporting period, the Bank had 28 domestic preference shareholders of “工行優1” and 37 domestic preference shareholders of “工行優2”. As at the end of the month immediately before the annual results announcement date (28 February 2026), the Bank had 28 domestic preference shareholders of “工行優1” and 37 domestic preference shareholders of “工行優2”.

---

# Details of Changes in Share Capital and Shareholding of Substantial Shareholders

## PARTICULARS OF SHAREHOLDING OF THE TOP 10 DOMESTIC PREFERENCE SHAREHOLDERS OF “工行優1”

Unit: Share

| Name of shareholder | Nature of shareholder | Class of shares | Increase/decrease during the reporting period | Shares held at the end of the period | Shareholding percentage (%) | Number of shares subject to restrictions on sales | Number of pledged/locked-up/marked shares |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| China Mobile Communications Group Co., Ltd. | State-owned legal person | Domestic preference shares | – | 200,000,000 | 44.44 | – | None |
| China National Tobacco Corporation | Other entities | Domestic preference shares | – | 50,000,000 | 11.11 | – | None |
| China Life Insurance Company Limited | State-owned legal person | Domestic preference shares | – | 35,000,000 | 7.78 | – | None |
| Ping An Life Insurance Company of China, Ltd. | Domestic non-state-owned legal person | Domestic preference shares | – | 30,000,000 | 6.67 | – | None |
| China Fund Management Co., Ltd. | State-owned legal person | Domestic preference shares | 14,955,000 | 17,855,000 | 3.97 | – | None |
| Everbright Securities Asset Management Co., Ltd. | State-owned legal person | Domestic preference shares | 6,715,000 | 12,585,000 | 2.80 | – | None |
| Shanghai Haitong Securities Asset Management Co., Ltd. | State-owned legal person | Domestic preference shares | -1,000,000 | 11,200,000 | 2.49 | – | None |
| China National Tobacco Corporation Shandong Branch | Other entities | Domestic preference shares | – | 10,000,000 | 2.22 | – | None |
| China National Tobacco Corporation Heilongjiang Branch | Other entities | Domestic preference shares | – | 10,000,000 | 2.22 | – | None |
| Ping An Property & Casualty Insurance Company of China, Ltd. | Domestic non-state-owned legal person | Domestic preference shares | – | 10,000,000 | 2.22 | – | None |

**Notes:**

(1) The above data are based on the Bank’s register of domestic preference shareholders of “工行優1” as at 31 December 2025.

(2) China National Tobacco Corporation Shandong Branch and China National Tobacco Corporation Heilongjiang Branch are both wholly-owned subsidiaries of China National Tobacco Corporation; China Life Insurance Company Limited — Traditional — Ordinary insurance products — 005L — CT001 Hu is managed by China Life Insurance Company Limited; Ping An Life Insurance Company of China, Ltd. and Ping An Property & Casualty Insurance Company of China, Ltd. have connected relations. Save as disclosed above, the Bank is not aware of any connected relations or acting-in-concert relations among the aforementioned preference shareholders and among the aforementioned preference shareholders and top 10 ordinary shareholders.

(3) “Shareholding percentage” refers to the percentage of domestic preference shares of “工行優1” held by preference shareholders in total number (450 million shares) of domestic preference shares of “工行優1”.

---

# Details of Changes in Share Capital and Shareholding of Substantial Shareholders

## PARTICULARS OF SHAREHOLDING OF THE TOP 10 DOMESTIC PREFERENCE SHAREHOLDERS OF “工行優2”

Unit: Share

| Name of shareholder | Nature of shareholder | Class of shares | Increase/decrease during the reporting period | Shares held at the end of the period | Shareholding percentage (%) | Number of shares subject to restrictions on sales | Number of pledged/locked-up/marked shares |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| China Life Insurance Company Limited | State-owned legal person | Domestic preference shares | – | 120,000,000 | 17.14 | – | None |
| China Mobile Communications Group Co., Ltd. | State-owned legal person | Domestic preference shares | – | 100,000,000 | 14.29 | – | None |
| Bohai International Trust Co., Ltd. | State-owned legal person | Domestic preference shares | – | 82,251,000 | 11.75 | – | None |
| Everbright Securities Asset Management Co., Ltd. | State-owned legal person | Domestic preference shares | 5,350,000 | 71,385,000 | 10.20 | – | None |
| China Credit Trust Co., Ltd. | State-owned legal person | Domestic preference shares | 970,000 | 70,719,000 | 10.10 | – | None |
| China National Tobacco Corporation | Other entities | Domestic preference shares | – | 50,000,000 | 7.14 | – | None |
| Shanghai Tobacco Group Co., Ltd. | Other entities | Domestic preference shares | – | 30,000,000 | 4.29 | – | None |
| China Fund Management Co., Ltd. | State-owned legal person | Domestic preference shares | 9,765,000 | 24,115,000 | 3.45 | – | None |
| CITIC Securities Company Limited | State-owned legal person | Domestic preference shares | 15,850,000 | 16,100,000 | 2.30 | – | None |
| SDIC Taikang Trust Co., Ltd. | State-owned legal person | Domestic preference shares | 1,030,000 | 15,400,000 | 2.20 | – | None |

Notes:
1. The above data are based on the Bank’s register of domestic preference shareholders of “工行優2” as at 31 December 2025.
2. China Life Insurance Company Limited — Traditional — Ordinary insurance products — 005L — CT001 Hu is managed by China Life Insurance Company Limited; Shanghai Tobacco Group Co., Ltd., China National Tobacco Corporation Shandong Branch and China National Tobacco Corporation Heilongjiang Branch are all wholly-owned subsidiaries of China National Tobacco Corporation. Save as disclosed above, the Bank is not aware of any connected relations or acting-in-concert relations among the aforementioned preference shareholders and among the aforementioned preference shareholders and top 10 ordinary shareholders.
3. “Shareholding percentage” refers to the percentage of domestic preference shares of “工行優2” held by preference shareholders in total number (700 million shares) of domestic preference shares of “工行優2”.

---

# Details of Changes in Share Capital and Shareholding of Substantial Shareholders

## Dividend Distribution of Preference Shares

As per the resolution and authorization of the Shareholders’ General Meeting, the Bank reviewed and approved the implementation of distribution of dividends for “工行優2” and offshore USD preference shares at the meeting of its Board of Directors on 29 August 2025, permitting the Bank to distribute the dividends on domestic preference shares “工行優2” on 24 September 2025 and on the offshore USD preference shares on 23 September 2025; the Bank reviewed and approved the implementation of distribution of dividends for “工行優1” at the meeting of its Board of Directors on 30 October 2025, permitting the Bank to distribute the dividends on domestic preference shares “工行優1” on 24 November 2025.

Dividends on the Bank’s domestic preference shares “工行優1” and “工行優2” are paid annually in cash, and calculated based on the aggregate par value of the issued domestic preference shares. Dividends on the Bank’s domestic preference shares are non-cumulative. Holders of domestic preference shares are only entitled to dividends at the prescribed dividend rate, but are not entitled to any distribution of residual profits of the Bank together with the holders of ordinary shares. According to the dividend distribution plan in the domestic preference share issuance proposal, the Bank distributed dividends of RMB2,061 million (pre-tax) on the domestic preference share “工行優1” at a dividend rate of 4.58% (pre-tax); and distributed dividends of RMB2,114 million (pre-tax) on the domestic preference share “工行優2” at a dividend rate of 3.02% (pre-tax).

Dividends on the Bank’s offshore USD preference shares are paid annually in cash, and calculated based on the liquidation preference of the offshore preference shares. Dividends on the Bank’s offshore USD preference shares are non-cumulative. Holders of offshore USD preference shares are only entitled to dividends at the prescribed dividend rate, but are not entitled to any distribution of residual profits of the Bank together with the holders of ordinary shares. According to the dividend distribution plan in the offshore USD preference share issuance proposal, total dividends of about USD115.36 million (pre-tax) on the offshore USD preference shares were distributed in USD at a dividend rate of 3.58% (after-tax). According to relevant laws, when the Bank distributes dividends for offshore USD preference shares, the enterprise income tax shall be withheld by the Bank at a rate of 10%. According to the requirements of the terms and conditions of the offshore USD preference shares, the Bank paid the relevant taxes, included in the dividends for offshore USD preference shares.

The table below shows the distribution of dividends on preference shares by the Bank in the past three years:

| Type of preference shares | 2025 Dividend rate | 2025 Dividend distributed(1) (1) Dividend distributed includes tax. | 2024 Dividend rate | 2024 Dividend distributed(1) | 2023 Dividend rate | 2023 Dividend distributed(1) |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Domestic preference share "工行優1" | 4.58% | RMB2,061 million | 4.58% | RMB2,061 million | 4.58% | RMB2,061 million |
| Domestic preference share "工行優2" | 3.02% | RMB2,114 million | 4.20% | RMB2,940 million | 4.20% | RMB2,940 million |
| Offshore USD preference share(2) (2) Offshore USD preference share refers to USD2.9 billion preference shares issued offshore by the Bank at a dividend rate of 3.58% (after-tax) in 2020. The Bank redeemed all of the aforementioned offshore USD preference shares on 23 September 2025. | 3.58% | About USD115.36 million | 3.58% | About USD115.36 million | 3.58% | About USD115.36 million |

The above-mentioned preference share dividend distribution plans have been fulfilled. For particulars of the Bank’s distribution of dividends on preference shares, please refer to the announcements of the Bank on the website of the SSE, the “HKEXnews” website of the HKEX and the website of the Bank.

---

# Details of Changes in Share Capital and Shareholding of Substantial Shareholders

## Redemption or Conversion of Preference Shares

The Bank issued U.S.$2,900,000,000 Offshore Preference Shares (the "USD Offshore Preference Shares") in the offshore market in 2020. On 29 April 2025, the Board of Directors of the Bank considered and approved the Proposal on Exercising the Redemption Right of the U.S.$2,900,000,000 Offshore Preference Shares. On 23 July 2025, the Bank received a reply letter from the NFRA, pursuant to which, no objections were raised by the NFRA to the Bank’s redemption of U.S.$2,900,000,000 Offshore Preference Shares. On 23 September 2025 (the "Redemption Date"), pursuant to the terms and conditions of the USD Offshore Preference Shares (the "Terms and Conditions") and the reply letter from the NFRA, the Bank redeemed the aforementioned USD Offshore Preference Shares in whole at the redemption price of each USD Offshore Preference Share (being the aggregate of an amount equal to the Liquidation Preference (as defined in the Terms and Conditions) of each USD Offshore Preference Share plus any declared but unpaid dividends in respect of the period from (and including) the immediately preceding dividend payment date to (but excluding) the Redemption Date). Subsequent to the redemption and cancellation of the aforementioned USD Offshore Preference Shares on the Redemption Date, there are no USD Offshore Preference Shares in issue in the offshore market.

Please refer to the announcements published by the Bank on the website of the SSE, the "HKEXnews" website of the HKEX and the website of the Bank.

During the reporting period, the Bank did not convert any preference share.

## Restoration of Voting Rights of Preference Shares

During the reporting period, the Bank did not restore any voting right of preference share.

## Accounting Policy Adopted for Preference Shares and Rationale

According to the Accounting Standard for Business Enterprises No. 22 — Recognition and Measurement of Financial Instruments, the Accounting Standard for Business Enterprises No. 37 — Presentation of Financial Instruments promulgated by the MOF as well as the International Financial Reporting Standard 9 — Financial Instruments and the International Accounting Standard 32 — Financial Instruments: Presentation promulgated by International Accounting Standards Board and other accounting standards and the key terms of issuance of the Bank’s preference shares, the issued and existing preference shares do not contain contractual obligations to deliver cash or other financial assets or contractual obligations to deliver variable equity instruments for settlement, and shall be accounted for as other equity instruments.

---

# Corporate Governance, Environment and Society

## Corporate Governance Report

### Overview of Corporate Governance

During the reporting period, the Bank remained steadfast in its goal of building a world-class modern financial institution with Chinese characteristics. It continuously improved the corporate governance mechanism with “clearly-defined responsibilities and accountability, coordination and effective checks and balances”, effectively enhanced the corporate governance operation mechanism to ensure “scientific decision-making process, effective supervision and steady operation”, and coordinated the efforts to improve the corporate governance system, framework and mechanism.

A corporate governance structure consisting of the Shareholders’ Meeting, the Board of Directors and the Senior Management was established. In accordance with the Company Law of the People’s Republic of China and other relevant laws, regulations and regulatory requirements and in line with the Bank’s governance practices, the Bank revised the Articles of Association of Industrial and Commercial Bank of China Limited (Version 2025), cancelled the Board of Supervisors and transferred its functions and powers to the Audit Committee of the Board of Directors, completing the transition to a new governance model consisting of the Shareholders’ Meeting, the Board of Directors and the Senior Management. For details on the dissolution of the Board of Supervisors and supervisors of the Bank according to law, please refer to the announcements of the Bank on the website of the SSE, the “HKEXnews” website of the HKEX and the website of the Bank.

The governance policies and procedures were promptly improved. We have simultaneously completed the sorting and updating of the supporting systems for corporate governance. The Rules of Procedures for the Shareholders’ Meeting (Version 2025), the Rules of Procedures for the Board of Directors (Version 2025), the Working Rules for the Board Secretary (Version 2025) and the working rules of the special committees of the Board of Directors were issued after revision, significantly enhancing the soundness and effectiveness of corporate governance.

The governance efficiency was further enhanced. The year 2025 marked the conclusion of the 14th Five-Year Plan period. The Board of Directors of the Bank earnestly implemented the national decisions and plans as well as the financial regulatory requirements, stayed focused on the priorities of financial work and fully, accurately, and comprehensively applied the new development philosophy, ensuring that the Bank fulfilled its responsibilities as a major state-owned bank, provided high-quality financial services to promote the high-quality economic and social development, and fully demonstrated the political and people-oriented nature of financial work. With a focus on the “Five Priorities”, the Bank further advanced the “five transformations”, fulfilled its responsibilities of strategic decisions and risk prevention and control, continued to improve governance mechanisms such as risk control, remuneration incentives, and social responsibility, strengthened information disclosure and transparency to protect the rights and interests of shareholders according to the law, endeavored to enhance the adaptability, competitiveness and inclusiveness of financial services and created greater value for all stakeholders.

There is no material divergence between the actual corporate governance of the Bank, relevant laws and administrative regulations, and the corporate governance-related rules issued by the CSRC.

---

# Corporate Governance, Environment and Society

## Corporate Governance Framework

Note: The above picture is the corporate governance framework chart of the Bank as at the end of 2025.

Special committees were set up under the Senior Management for the overall coordination responsibilities of the “Five Priorities” and the promotion of technology finance, green finance, inclusive finance, pension finance and digital finance correspondingly, establishing an integrated decision-making and implementation mechanism to serve the “Five Priorities”, and forming a closed loop of synergizing the control and management of the “first, second and third lines of defense”.

---

# Corporate Governance, Environment and Society

## Corporate Governance Code

During the reporting period, the Bank complied with the principles, code provisions and recommended best practices stipulated in the Corporate Governance Code (Appendix C1 to the Hong Kong Listing Rules), which are applicable to this report.

## Amendment to the Articles of Association

During the reporting period, the Proposal on Reviewing the Articles of Association of Industrial and Commercial Bank of China Limited (Version 2025) and Matters Related to Dissolution of the Board of Supervisors was reviewed and approved at the Annual Shareholders’ Meeting for the Year 2024 held on 27 June 2025. On 23 September 2025, the amended Articles of Association of the Bank was approved by the NFRA through the Reply of the NFRA on Revisions to the Articles of Association by ICBC (Jin Fu [2025] No. 564).

## Shareholders' Meeting

### Responsibilities of the Shareholders' Meeting

As the organ of power of the Bank, the Shareholders' Meeting involves all shareholders. The Shareholders' Meeting is responsible for, among others, examining and approving the Bank’s annual financial budget, final account proposals, plans for profit distribution and loss make-up; electing, replacing and dismissing relevant directors; examining and approving or authorizing the Board of Directors to approve the Bank’s major external investments; examining and approving work report of the Board of Directors; and adopting resolutions on merger, division, dissolution, liquidation, change of corporate form, increase or decrease of the Bank’s registered capital, issuance of corporate bonds or other securities and public listing, acquisition of the shares, issuance of preference shares and amending the Articles of Association of the Bank.

## Board of Directors and Special Committees

### Responsibilities of the Board of Directors

As the decision-making organ of the Bank, the Board of Directors of the Bank is accountable to, and shall report its work to, the Shareholders’ Meeting. The Board of Directors is responsible for, among others, convening the Shareholders’ Meeting; implementing the resolutions of the Shareholders’ Meeting; deciding on the Bank’s business plans and investment proposals, formulating its development strategies and supervising the implementation of such strategies; formulating annual financial budget and final accounts of the Bank, plans for profit distribution and loss recovery of the Bank, plans for the increase or decrease of the Bank’s registered capital, capital replenishment and financial restructuring of the Bank; developing plans for merger, split-up, dissolution and form change of the company, plans for major acquisitions, plans for acquisition of the Bank’s shares, share incentive plans and employee stock ownership plans; formulating policies and basic management systems of the Bank such as risk tolerance, risk management system and internal control system, supervising the implementation of such systems, and assuming the ultimate responsibility for enterprise risk management; deciding or authorizing the Audit Committee of the Board of Directors to decide on the audit budget and the appointment and removal of the principal officers; formulating and implementing a responsibility and accountability system with clear reporting lines, and regularly assessing and improving the Bank’s corporate governance; managing information disclosure of the Bank and taking the ultimate responsibility for the authenticity, accuracy, completeness and timeliness of financial reporting; deliberating the policy objectives and related matters of the Bank’s sustainable development and environmental, social and governance **("ESG")**; deliberating the policy objectives and related matters of the Bank’s green finance strategy and climate risk management; deliberating the Bank’s development strategies, basic management systems, annual business plans, assessment measures and other matters related to inclusive finance; determining the Bank’s consumer protection strategies, policies and objectives, and safeguarding the legitimate rights and interests of financial consumers and other stakeholders; establishing a mechanism for identifying, reviewing, and managing conflicts of interest between the Bank and shareholders, especially major shareholders; undertaking the management responsibility for shareholders’ affairs; and formulating and implementing a Senior Management accountability system, and clarifying specific ways to investigate responsibilities for dereliction of duty and improper performance of duty; and taking the ultimate responsibility for consolidated management, formulating the overall strategic guidelines for the Bank’s consolidated management, approving the basic policies and measures for consolidated management, and establishing a regular review and evaluation mechanism for consolidated management.

---

# Implementation of Resolutions of the Shareholders’ Meeting by the Board of Directors

The Board of Directors of the Bank earnestly and fully implemented the resolutions reviewed and approved by the Shareholders’ Meeting during the reporting period.

# Composition of the Board of Directors

The Bank formulated relatively complete procedures for selecting, nominating and electing Directors. With diversified backgrounds, the Directors of the Bank complemented each other with regard to their expertise, professional competence, professional experience, region, gender and many other aspects, which ensured the scientific decision-making of the Board of Directors. As at the disclosure date of the results, the Board of Directors of the Bank consisted of 13 directors, including four Executive Directors: Mr. Liao Lin, Mr. Liu Jun, Mr. Duan Hongtao and Mr. Wang Jingwu; three Non-executive Directors: Ms. Cao Liqun, Mr. Dong Yang and Ms. Zhong Mantao; and six Independent Non-executive Directors: Mr. Norman Chan Tak Lam, Mr. Herbert Walter, Mr. Murray Horn, Mr. Chen Guanting, Mr. Li Weiping and Mr. Lee Kam Hung Lawrence. The Board of Directors has reviewed the implementation and effectiveness of its board diversity policy. The members of the Board of Directors have included two female directors, both of whom have contributed to the scientific and efficient decision-making of the Board of Directors by offering a unique female perspective. In the future, the Bank will take full account of the gender composition of candidates in the selection of Directors in accordance with relevant policies for the diversified backgrounds of Directors, in order to further improve the gender diversity of members of the Board of Directors.

The Executive Directors of the Bank have worked in the areas of banking and management for a long time, possess extensive professional expertise and experience in those areas and are familiar with the operation and management of the Bank. Non-executive Directors have worked in the fiscal, economic, financial and governing sectors for many years, and they have rich practical experience and a relatively high level of understanding of policies and theories. All of the Independent Non-executive Directors are prestigious Chinese or foreign experts in their respective areas, e.g. economy, financial supervision, finance, audit and law, and they are familiar with Chinese and foreign regulatory rules and have a good knowledge of corporate governance, finance and bank management. The number of Independent Non-executive Directors of the Bank accounted for more than one-third of the total members of the Board of Directors, complying with relevant regulatory requirements.

# Chairman and President

Pursuant to Code Provision C.2.1 of the Corporate Governance Code (Appendix C1 to the Hong Kong Listing Rules) and the Articles of Association of the Bank, the roles of Chairman and President should be held by two persons, and the Chairman shall not concurrently hold the position of legal representative or chief responsible officer of the controlling shareholder. The President is appointed by and accountable to the Board of Directors, and performs his responsibilities as stipulated in the Articles of Association of the Bank and as authorized by the Board of Directors.

As at the end of the reporting period, Mr. Liao Lin is the legal representative and Chairman of the Bank, and is responsible for leading the Board of Directors in considering and formulating business development strategies, risk management, internal control and other significant matters of the Bank. Mr. Liu Jun is the President of the Bank, and is responsible for the daily management of the business operations of the Bank.

# Meetings of the Board of Directors

The Board of Directors brought into full play the political and people-oriented nature of financial work, actively served the key national strategies and the real economy, deepened and refined the work on the “Five Priorities”, advanced the “five transformations”, and ensured the Bank could take new steps in building a leading bank and achieve new results in high-quality development. The Bank continued to refine capital management, coordinated the issuance of capital instruments and bonds and kept cementing the foundation for its steady development. The Board of Directors reviewed the proposals including the fixed asset investment budget and the report on capital adequacy ratio management and internal capital adequacy assessment, heard the reports on the annual, interim and quarterly operating results and the implementation of the strategic development plan during the 14th Five-Year Plan period, and urged the Management to enhance the quality and effectiveness of business development.

---

# Corporate Governance, Environment and Society

The Board of Directors stayed committed to the major financial tasks of guarding against risks, strengthening supervision and promoting high-quality development to ensure both development and security. They revised the Enterprise Risk Management Rules, the Basic Rules on Compliance Management, the Basic Rules on Internal Control, and the Data Security Management Measures, and deliberated on proposals for risk appetite assessment, risk management reports, consolidated management, compliance management and anti-money laundering management and internal control evaluation report. They also heard reports on the annual information technology risk management and internal audit work, and supervised and guided the Management to continuously enhance their capabilities of risk prevention and control, compliance management and stable operation.

The Board of Directors pressed ahead with sustainable development. The Bank released a sustainability report, formulated a plan for valuation enhancement and quality and efficiency improvement and high return, revised the management measures for consumer protection, and reviewed proposals for implementation of green finance in recent two years, the annual plan for inclusive finance, the annual limit for external donations and the donations for the Tai Po fire tragedy in Hong Kong and kept improving the social and stakeholders’ wellbeing. The Board of Directors improved the top-level design of corporate governance and strengthened institutional mechanisms. A series of basic policies for corporate governance were revised, including the Articles of Association, the Rules of Procedures for the Shareholders’ Meeting, the Rules of Procedures for the Board of Directors, and the working rules for special committees of the Board of Directors. The Board of Directors steadily advanced the Audit Committee’s takeover of functions and powers from the Board of Supervisors, forging a development path for corporate governance with Chinese characteristics.

For major proposals reviewed by the Board of Directors, please refer to the announcements of the Bank on the website of the SSE, the “HKEXnews” website of the HKEX and the website of the Bank.

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# Corporate Governance, Environment and Society

The attendance of each of the Directors in Shareholders’ Meetings and meetings of the Board of Directors and the special committees of the Board of Directors during the reporting period is set out below:

**Attendances in person/Number of meetings held during tenure**

| Directors | Shareholders' Meeting | Board of Directors | Strategy Committee | Corporate Social Responsibility and Consumer Protection Committee | Audit Committee | Risk Management Committee | Nomination Committee | Compensation Committee | Related Party Transactions Control Committee | US Risk Committee |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| **Executive Directors** | | | | | | | | | | |
| Liao Lin | 3/3 | 10/10 | 7/7 | - | - | - | - | - | - | - |
| Liu Jun | 3/3 | 9/10 | 6/7 | 3/4 | - | - | 4/5 | - | - | - |
| Duan Hongtao | 1/1 | 2/3 | 1/2 | - | - | - | - | 1/1 | - | - |
| Wang Jingwu | 2/3 | 9/10 | - | - | - | 3/6 | - | - | 1/4 | 2/4 |
| **Non-executive Directors** | | | | | | | | | | |
| Cao Liqun | 3/3 | 10/10 | - | 4/4 | 7/7 | 6/6 | - | - | - | 4/4 |
| Dong Yang | 3/3 | 10/10 | 7/7 | - | - | 6/6 | - | - | - | 4/4 |
| Zhong Mantao | 3/3 | 10/10 | 7/7 | 4/4 | 7/7 | - | - | - | 4/4 | - |
| **Independent Non-executive Directors** | | | | | | | | | | |
| Norman Chan Tak Lam | 3/3 | 10/10 | 7/7 | - | 5/5 | 6/6 | 5/5 | 4/4 | 1/1 | 4/4 |
| Herbert Walter | 3/3 | 10/10 | 7/7 | 4/4 | 7/7 | - | - | 4/4 | 4/4 | - |
| Murray Horn | 3/3 | 10/10 | 7/7 | - | - | 6/6 | 5/5 | 4/4 | 4/4 | 4/4 |
| Chen Guanting | 3/3 | 10/10 | - | - | 7/7 | 6/6 | - | - | 4/4 | 4/4 |
| Li Weiping | 3/3 | 9/9 | 6/6 | - | 6/6 | - | 4/4 | 3/3 | 4/4 | - |
| Lee Kam Hung Lawrence | - | - | - | - | - | - | - | - | - | - |
| **Directors Leaving Office** | | | | | | | | | | |
| Lu Yongzhen | 2/2 | 8/8 | 6/6 | - | - | 5/5 | - | 3/3 | - | 3/3 |
| Feng Weidong | 0/0 | 3/3 | - | - | 3/3 | 3/3 | 2/2 | - | - | 1/1 |
| Chen Yifang | 0/0 | 3/3 | 3/3 | 2/2 | - | - | - | 2/2 | - | - |
| Fred Zuliu Hu | 0/0 | 3/3 | 3/3 | - | 1/3 | - | 2/2 | 0/2 | - | - |

**Notes:**
(1) "Attendances in person" refers to attending meetings in person or on telephone or by video conference.
(2) Directors who did not attend the meetings of the Board of Directors and its special committees in person appointed other directors to attend the meetings and exercise the voting rights on their behalf.
(3) For the change of directors, please refer to the section headed "Directors and Senior Management — Appointment and Departure".

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# Corporate Governance, Environment and Society

## Special Committees of the Board of Directors

**Special Committees of the Board of Directors**

The Board of Directors of the Bank has established eight special committees, namely, the Strategy Committee, the Corporate Social Responsibility and Consumer Protection Committee, the Audit Committee, the Risk Management Committee, the Nomination Committee, the Compensation Committee, the Related Party Transactions Control Committee and the US Risk Committee. Except for the Strategy Committee and the Corporate Social Responsibility and Consumer Protection Committee, chairmen of all the other committees are assumed by Independent Non-executive Directors. More than half of the members of the Audit Committee, the Nomination Committee, the Compensation Committee and the Related Party Transactions Control Committee are Independent Non-executive Directors.

As at the disclosure date of the results, the composition of special committees of the Board of Directors of the Bank is as follows:

| Directors | Strategy Committee | Corporate Social Responsibility and Consumer Protection Committee | Audit Committee | Risk Management Committee | Nomination Committee | Compensation Committee | Related Party Transactions Control Committee | US Risk Committee |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| Liao Lin | Chairman | | | | | | | |
| Liu Jun | Committee Member | Chairman | | | Committee Member | | | |
| Duan Hongtao | Committee Member | | | | | Committee Member | | |
| Wang Jingwu | | | | Committee Member | | | Committee Member | Committee Member |
| Cao Liqun | | Committee Member | Committee Member | Committee Member | | | | Committee Member |
| Dong Yang | Committee Member | | Vice Chairman | Committee Member | | | | Committee Member |
| Zhong Mantao | Committee Member | Committee Member | Committee Member | | Committee Member | | Committee Member | |
| Norman Chan Tak Lam | Committee Member | | | Chairman | Committee Member | Committee Member | Committee Member | Chairman |
| Herbert Walter | Committee Member | Committee Member | Committee Member | | | Chairman | Committee Member | |
| Murray Horn | Committee Member | | | Committee Member | Chairman | Committee Member | Committee Member | Committee Member |
| Chen Guanting | | | Chairman | Committee Member | | | Committee Member | Committee Member |
| Li Weiping | Committee Member | | Committee Member | | Committee Member | Committee Member | Chairman | |
| Lee Kam Hung Lawrence | | | Committee Member | Committee Member | Committee Member | | | Committee Member |

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# Corporate Governance, Environment and Society

During the reporting period, the performance of duties by the special committees of the Board of Directors is set out below:

## Strategy Committee

**Primary Responsibilities of the Strategy Committee** The Strategy Committee is mainly responsible for considering the Bank’s strategic development plan, risk events that bear material influence on the overall situation, annual financial budget and final account, strategic capital allocation (e.g. capital structure and capital adequacy ratio) and asset and liability management objectives, overall development plans for various financial businesses, significant institution restructuring and adjustment plan, major investment and financing proposal, merger and acquisition proposal, strategic development plan for domestic and overseas branches and institutions, strategic development plan for human resources, digital finance, digital and IT development and other special strategic development plans, strategic arrangements for sustainable development, and making recommendations to the Board of Directors. The Strategy Committee is also responsible for examining and assessing the soundness of the corporate governance framework to ensure that the financial reports, risk management, and internal control comply with the Bank’s corporate governance standards..

**Performance of the Strategy Committee** During the reporting period, the Strategy Committee held seven meetings on 14 February, 28 March, 29 April, 27 June, 29 August, 30 October and 23 December 2025, respectively. At these meetings, the Strategy Committee reviewed 28 proposals, and heard two reports. The Strategy Committee paid attention to major strategic issues, reviewed the Bank’s annual fixed assets investment budget, audited accounts, profit distribution plan, sustainability report, report on capital adequacy ratio management and internal capital adequacy assessment, financial bond issuance plan, and the market value management measures and the plan for valuation enhancement, quality and efficiency improvement, and high return, and other proposals, and heard reports on the Bank’s implementation of the strategic development plan during the 14th Five-Year Plan period, etc., to promote the Bank’s high-quality development.

## Corporate Social Responsibility and Consumer Protection Committee

**Primary Responsibilities of the Corporate Social Responsibility and Consumer Protection Committee** The Corporate Social Responsibility and Consumer Protection Committee is mainly responsible for hearing and considering the Bank’s policy, target and issues related to the sustainable finance, rural revitalization services, corporate culture construction and ESG, etc., and understanding the Bank’s fulfillment of social responsibility, and considering the annual sustainability report. The committee is responsible for studying major issues and important policies related to the Bank’s consumer protection, guiding and pushing forward the establishment and improvement of a management system for consumer protection, and reviewing and supervising the implementation of the Bank’s consumer protection strategies, policies, targets, and work reports. The committee shall also consider the Bank’s policies and targets, such as green finance strategies, climate risk management and green bank construction, as well as the development strategy, basic management system, annual business plan and assessment method of inclusive finance.

**Performance of the Corporate Social Responsibility and Consumer Protection Committee** During the reporting period, the Corporate Social Responsibility and Consumer Protection Committee held four meetings on 14 February, 28 April, 28 August and 23 December 2025, respectively. At these meetings, the Corporate Social Responsibility and Consumer Protection Committee reviewed six proposals and heard one report. It actively urged the Bank to perform social responsibilities, considered the proposals on the annual limit for external donations for 2025, etc., providing continuous support for charity and other public-interested activities. The committee pushed for the development of green finance and inclusive finance, and considered the proposals on the implementation of green finance in the recent two years and the 2025 annual business plan for inclusive finance. The committee focused on consumer protection, considered the proposals on the management measures for consumer protection, the consumer protection in 2024 and its work plan for 2025, and heard the report on consumer protection work for the first half of 2025.

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# Corporate Governance, Environment and Society

## Audit Committee

**Primary Responsibilities of the Audit Committee** The Audit Committee is mainly responsible for constantly overseeing the Bank’s internal control system, and supervising, inspecting and evaluating financial information and internal audit of the Bank, proposing the engagement or replacement of external auditors, reviewing the reports of external auditors, and coordinating the communication between the internal audit departments and external auditors, supervising the performance of duties by the Bank’s Directors and Senior Management members, and assessing mechanisms for the Bank’s staff to report misconducts in financial statements, internal control, etc., and assessing the mechanism for the Bank to conduct independent and fair investigations and take appropriate actions in relation to the reported matters.

**Performance of the Audit Committee** During the reporting period, the Audit Committee held seven meetings on 14 February, 27 March, 28 April, 26 June, 28 August, 29 October and 23 December 2025, respectively. At these meetings, the Audit Committee reviewed 15 proposals and heard 16 reports. The Audit Committee oversaw and guided the Bank’s continuous improvements in the internal control system, reviewed the proposal on the Bank’s annual internal control assessment report, heard reports on annual internal control audit results, and promoted continuous improvements in compliant operation of the Group. It supervised and guided the Bank’s work on internal and external audits to ensure its well-ordered implementation, considered proposals on the annual report, interim report, quarterly reports, pillar 3 disclosure report of capital management, engagement of external auditor, and internal audit project plan and appointment of Chief Financial Officer, and heard reports on annual internal audit work and evaluation of external auditors’ performance. By strengthening internal and external audits, the Audit Committee helped improve the quality and efficiency of the Bank’s business development. The Audit Committee took over relevant functions and powers from the former Board of Supervisors, considered the proposal on the 2024 annual remuneration settlement plan for supervisors etc., and conducted the performance evaluation of the Board of Directors, Senior Management, and their members for 2025. The Audit Committee had no dissents on supervised matters during the reporting period.

### Reviewing periodic reports

The Audit Committee periodically reviewed the financial reports of the Bank. It had reviewed the annual report, interim report and quarterly reports of the Bank and reported the review opinions to the Board of Directors. It also organized and conducted an internal control assessment of the Group and engaged external auditors to audit the effectiveness of the internal control over financial reporting in accordance with the relevant regulatory requirements. Additionally, it strengthened collaboration with external auditors, placed emphasis on overseeing and guidance of external auditors and heard several reports of external auditors concerning audit results, and management recommendations etc.

During the preparation and audit of the 2025 financial statements, the Audit Committee heard the Management’s report on operating conditions and discussed and agreed with the external auditors on matters such as audit schedule and progress arrangement. Members of the committee separately communicated with the external auditor to keep abreast of the work progress and urged well-ordered implementation of work. The Audit Committee held a meeting on 26 March 2026, and considered that the 2025 financial statements truly, accurately and completely reflected the financial position of the Bank.

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# Corporate Governance, Environment and Society

- **Examining internal control system**

The Audit Committee is responsible for constantly monitoring and examining the internal control system of the Bank, and examining the effectiveness of the system at least on an annual basis. The Audit Committee performed its function of examining the Bank’s internal control system through reviewing the administrative rules and policies and their implementation, and examined and assessed the compliance and effectiveness of major operating activities of the Bank.

The Board of Directors of the Bank is responsible for establishing, improving and effectively implementing internal control, assessing its effectiveness and truthfully disclosing internal control assessment reports according to the standard system for enterprise internal control. The Board of Directors and the Audit Committee have reviewed and approved the annual Internal Control Assessment Report of the Bank. For details of the Bank’s internal control, please refer to the section headed “Corporate Governance Report — Internal Control”.

- **Effectiveness of the internal audit function**

The Bank has established a vertical and independent internal audit management system that is accountable to and reports work to the Board of Directors. The Board of Directors regularly reviews the internal audit plan and hears internal audit reports on internal audit activities, audit supporting measures, internal audit team building, etc., thus performing the function of risk management. The Audit Committee examines, monitors and assesses the internal audit work of the Bank, supervises the internal audit rules and their implementation, and evaluates audit procedures and results of the internal audit department. It is also responsible for urging the Bank to ensure adequate resources for the internal audit department and coordinating the communication between the internal audit department and external auditors. For details of the internal audit, please refer to the section headed “Corporate Governance Report — Internal Audit”.

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# Corporate Governance, Environment and Society

## Risk Management Committee

**Primary Responsibilities of the Risk Management Committee** The Risk Management Committee is primarily responsible for reviewing and revising the Bank’s risk strategy, risk management policy, risk appetite, enterprise risk management framework and internal control process, and supervising and assessing its implementation progress and results. The committee is also responsible for continuously monitoring the Bank’s risk management system, monitoring and evaluating the setup, mode of organization, working procedures and results of risk management departments, supervising and assessing the Senior Management members’ control of strategy risk, credit risk, market risk, operational risk (case prevention), liquidity risk, compliance risk, reputational risk, IT and cyber security risk, interest rate risk in banking book, country risk and other risks, and putting forward suggestions on the improvement in risk management and internal control of the Bank; clarifying the requirements for risk data and reporting, making sure that risk reporting is compatible with the Bank’s business pattern, risk status and internal management needs etc., and proposing improvement requirements to the Senior Management when risk data and reporting cannot meet requirements.

**Performance of the Risk Management Committee** During the reporting period, the Risk Management Committee held six meetings on 14 February, 27 March, 28 April, 28 August, 29 October and 23 December 2025, respectively. At these meetings, the Risk Management Committee reviewed 21 proposals, and heard six reports. The Risk Management Committee continued to strengthen enterprise risk management. It further advanced the Group’s compliance development, considered proposals on the risk appetite assessment, risk management report, consolidated management and anti-money laundering management and heard the reports on the implementation of the expected credit loss (ECL) method and information technology risk management. The committee actively promoted the revision of policies and procedures including the Enterprise Risk Management Rules, the Measures for Effective Risk Data Aggregation and Risk Reporting Management, Basic Rules on Compliance Management and Data Security Management Measures. The committee urged the Management to effectively prevent risks and enhance compliance.

- **Examining the risk management system**

The Risk Management Committee is responsible for constantly monitoring and examining the risk management system of the Bank, and examining the effectiveness of the system at least on an annual basis. Under the enterprise risk management system structure of the Bank, the Risk Management Committee performed its function of examining the Bank’s risk management system by various means. For details of risk management, please refer to the section headed “Discussion and Analysis — Risk Management”.

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# Corporate Governance, Environment and Society

## Nomination Committee

**Primary Responsibilities of the Nomination Committee** The Nomination Committee is mainly responsible for formulating the standards and review procedures for selection and appointment of directors and Senior Management members, selecting the candidates for directors and Senior Management members and examining their qualifications; making recommendations to the Board of Directors on nomination, appointment or removal of directors, appointment or removal of Senior Management members, nomination of candidates for chairmen and members of special committees of the Board of Directors; hearing the training and development plans for Senior Management members and key reserved talents; and assessing the structure, size and composition of the Board of Directors and making recommendations to the Board of Directors on an annual basis based on the Bank’s development strategy.

The Articles of Association of the Bank specifies procedures and methods to nominate Directors. Please refer to Article 115 of the Articles of Association. During the reporting period, the Bank appointed and renewed the appointments of Directors of the Bank in strict accordance with the Articles of Association of the Bank. The Nomination Committee reviews the qualifications of candidates for Directors based on whether the candidate complies with applicable laws, administrative rules, regulations and the Articles of Association of the Bank. The Bank attached importance to diversified sources and backgrounds of Directors and continued the efforts to enhance the professionalism of the Board of Directors, thus laying the foundation for the effective operation and scientific decision-making of the Board of Directors. According to the requirement on diversified composition of the Board of Directors in the Rules for Recommendation and Nomination of Board Candidates of the Bank, the Nomination Committee shall pay attention to the complementarity of the candidates in terms of expertise, professional competence and experience, cultural and educational background, gender, etc., to ensure the members of the Board of Directors are well equipped, experienced and have diversified perspectives and views. In order to implement the diversity policy, the Nomination Committee discusses and designs measurable goals according to actual conditions and assesses the improvement of diversified composition of the Board of Directors during the course of its yearly assessment on the framework, number of Directors and composition of the Board of Directors. As at the disclosure date of the results, there were six Independent Non-executive Directors, accounting for more than one third of the total members of the Board of Directors.

**Performance of the Nomination Committee** During the reporting period, the Nomination Committee held five meetings on 14 February, 28 April, 28 August, 30 October and 23 December 2025, respectively. At these meetings, the Nomination Committee reviewed 12 proposals on the nomination of candidates for directors, replacement of chairmen and members of some special committees of the Board of Directors and the appointment of Senior Executive Vice President, Chief Financial Officer and Board Secretary. The committee assisted the Board of Directors in changing directors, adjusting the composition of special committees of the Board of Directors and appointing Senior Management members in a timely manner according to governance needs.

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# Corporate Governance, Environment and Society

## Compensation Committee

**Primary Responsibilities of the Compensation Committee** The Compensation Committee is mainly responsible for formulating, reviewing and implementing the performance assessment measures for directors of the Bank, formulating their compensation plans and proposing remuneration distribution for directors; and formulating, reviewing and implementing the performance assessment measures for Senior Management members of the Bank, formulating their compensation plans and proposing remuneration distribution to Senior Management members.

**Performance of the Compensation Committee** During the reporting period, the Compensation Committee held four meetings on 14 February, 27 March, 28 August and 23 December 2025, respectively. At these meetings, the Compensation Committee reviewed seven proposals including the proposals on the payment plan for remuneration to directors and Senior Management members for 2024, the Senior Management performance evaluation plan for 2025 and the renewal of liability insurance for directors, supervisors and Senior Management members for 2025-2026, and heard the 2024 assessment report on the performance of duties of directors by the Board of Directors. The Compensation Committee, in accordance with regulatory requirements, advised the Board of Directors on the annual compensation settlement plan for directors and Senior Management members, caused the Bank to further improve the performance assessment of Senior Management members and kept refining the incentive and constraint mechanism.

## Related Party Transactions Control Committee

**Primary Responsibilities of the Related Party Transactions Control Committee** The Related Party Transactions Control Committee is mainly responsible for developing the basic policies governing the management of related party transactions and supervising their implementation; approving related party transactions and other related matters within the authority granted by the Board of Directors; receiving related party transaction statistics for filing purpose; reviewing the related party transactions that are subject to the approval of the Board of Directors or the Shareholders' Meeting; and reporting to the Board of Directors on the implementation of the related party transaction management policies as well as the conditions on these transactions.

**Performance of the Related Party Transactions Control Committee** During the reporting period, the Related Party Transactions Control Committee held four meetings on 28 April, 26 June, 28 August and 29 October 2025, respectively. At these meetings, the Related Party Transactions Control Committee reviewed and approved six proposals including the proposal on identification of related parties of the Bank and day-to-day transactions on financial products and services between the Bank and its directors, supervisors, Senior Management members and their related parties, and heard the special report on related party transactions in 2024. The Related Party Transactions Control Committee urged the Bank to strengthen the management of related parties and related party transactions, and assisted the Board of Directors in ensuring the Bank's work on related parties and related party transactions were carried out in compliance with laws and regulations.

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# Corporate Governance, Environment and Society

## US Risk Committee

**Primary Responsibilities of the US Risk Committee** The US Risk Committee is mainly responsible for examining and approving the business risk management policy of US institutions and supervising the implementation of the US business-related risk management framework and relevant policies.

**Performance of the US Risk Committee** During the reporting period, the US Risk Committee held four meetings on 27 March, 26 June, 28 August and 23 December 2025, respectively. At these meetings, the US Risk Committee reviewed three proposals on the risk management framework, revision of risk appetite and risk management in the US, and the liquidity stress testing, funding contingency plans, key business lines and product liquidity risks in the US. The committee heard 11 reports, including the reports on the risk management and liquidity risk management in the US. The committee assisted the Board of Directors in deepening risk management in relevant regions, and promoted the Bank to continuously strengthen risk prevention and control and compliance management in international operation.

## Term of Directors

In accordance with the Articles of Association of the Bank, Directors are elected by the Shareholders' Meeting with a term of three years, and the appointment shall take effect from the date of approval by the NFRA or upon completion of relevant procedures according to the requirements of the NFRA. Directors may be re-appointed through re-election at the Shareholders' Meeting after expiration of their term.

## Investigation and Training of Directors

During the reporting period, Directors of the Bank proactively conducted surveys on departments, branches and subsidiaries of the Bank concerning such topics as development of the risk officer system for commercial banks, practice and exploration of risk prevention and control in green finance, support for consumer credit, results and prospects of innovative application of artificial intelligence, assistance in rural revitalization, high-quality Belt and Road cooperation, overseas institutions' response to risks and challenges, service for China's high-level opening-up, and the operation and management of the Bank's branches and affiliates. In the form of research reports, such investigations provide the Bank with constructive insights and recommendations.

## Responsibilities of Directors in Respect of Financial Statements

The Directors of the Bank acknowledged that they are responsible for the preparation of the financial statements of the Bank. During the reporting period, in strict compliance with relevant provisions, the Bank published the 2024 Annual Report, the First Quarterly Report of 2025, the 2025 Interim Report and the Third Quarterly Report of 2025 as scheduled.

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# Corporate Governance, Environment and Society

During the reporting period, the Bank implemented comprehensive training programs for Directors, continuously enhanced training resources, and actively expanded the channels and forms of training for Directors, with the aim of supporting Directors in continuously improving their performance capabilities. Directors of the Bank attended relevant trainings according to work needs. The topics of the trainings attended by the Directors of the Bank during the reporting period were mainly as follows:

| Training Category | Training Details |
| :--- | :--- |
| **External trainings** | **The Listed Companies Association of Beijing:**<br>- Training on information disclosure management measures<br>- Training on deepening the merger, acquisition, and reorganization reform<br>- Training on strengthening investor relations management<br>- Training on market capitalization management<br>- Training on guidelines for articles of association of listed companies<br>- Training on shareholding change rules for listed companies<br>- Training on duty performance practices of independent directors of listed companies<br>- “From internal control compliance to market trust” training<br>- Training on online public opinions<br>- Training on ESG governance and practice<br>- Training on application of AI technology<br>- Training for Chairman (General Managers), Financial Controllers and Board Secretaries<br>**Shanghai Stock Exchange:**<br>- Follow-on training for independent directors of listed companies (third session of 2025)<br>- Onboarding training for directors, supervisors and senior management of listed companies (first session of 2025) |
| **Internal trainings** | - Anti-money laundering training<br>- Company Law training |

## Training of Board Secretary

During the reporting period, the Board Secretary of the Bank attended the relevant specialized training sessions, with the training hours over 15 hours, which met relevant regulatory requirements.

## Independence and Performance of Duties of Independent Non-executive Directors

The Bank conducted the appointment of Independent Non-executive Directors in strict accordance with the relevant regulatory rules, the Articles of Association of the Bank and other provisions. The qualifications, number and proportion of the Bank’s Independent Non-executive Directors comply with regulatory requirements.

The Bank’s Independent Non-executive Directors do not have any business or financial interests in the Bank or its subsidiaries, and they have not assumed any managerial position in the Bank. The Bank has received the annual confirmation on independence from all Independent Non-executive Directors and considered that they were independent.

During the reporting period, the Bank’s Independent Non-executive Directors earnestly attended the meetings of the Board of Directors and special committees, gave independent opinions on the issues for consideration, and put forward suggestions in terms of working hard on the “Five Priorities” of technology finance, green finance, inclusive finance, pension finance and digital finance, serving the real economy, promoting the “five transformations” and reinforcing risk control and compliance management. In accordance with the Corporate Governance Code (Appendix C1 to the Hong Kong Listing Rules), Independent Non-executive Directors and the Chairman of the Board of Directors held discussions without the participation of other Directors to share insights into the implementation of the Bank’s strategic development plan during the 14th Five-Year Plan period and the strategic planning during the 15th Five-Year Plan period. Meanwhile, Independent Non-executive Directors actively attended various meetings, symposia, surveys, trainings and other activities of the Bank, to gain a deep understanding of the Bank’s innovative applications of artificial intelligence, risk management of overseas institutions, digital transformation, business development and risk control in areas such as inclusive

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finance and retail banking, transformation of fee-based business, and management of domestic and overseas branches. Independent Non-executive Directors proposed a number of actionable insights in each of the performance activities, which have been highly valued by the Bank and implemented according to the actual conditions.

During the reporting period, the Bank’s Independent Non-executive Directors did not raise any objection to proposals of the Board of Directors and special committees of the Board of Directors.

For the details on performance of duties of Independent Non-executive Directors of the Bank during the reporting period, please refer to the Work Report of Independent Directors for 2025 released by the Bank on 27 March 2026.

# Securities Transactions of Directors

The Bank has adopted a set of codes of conduct concerning the securities transactions by directors which are no less stringent than the standards set out in the Model Code for Securities Transactions by Directors of Listed Issuers (Appendix C3 to the Hong Kong Listing Rules). After making enquiries and confirmations to all Directors of the Bank, each Director confirmed that he/she has complied with the provisions of the aforesaid codes of conduct during the reporting period.

# Senior Management

## Responsibilities of the Senior Management

As the executive organ of the Bank, the Senior Management is accountable to the Board of Directors. The Senior Management is responsible for, among others, the operation and management of the Bank; organizing the implementation of operation and investment plans approved by the Board of Directors; formulating specific rules and regulations of the Bank; determining plans for compensation and performances evaluation of persons in charge of internal departments and branches of the Bank; truthfully reporting to the Board of Directors or the Audit Committee on the business performance; drafting the annual financial budget plan, final account plan, profit distribution plan and loss recovery plan, plans for increase or reduction of the registered capital, the issuance of bonds or other securities and listing, and making suggestions in that respect to the Board of Directors.

## Powers and Functions of the Senior Management

The powers of the Board of Directors and the Senior Management are separated in strict compliance with the Articles of Association and other corporate governance documents of the Bank. During the reporting period, the Bank conducted statistical analysis on the implementation of the plan on authorization of the Board of Directors to the President, and no matter was found to be beyond the approval authority of the President.

# Shareholders’ Rights

## Proposing the Convening of an Extraordinary Shareholders’ Meeting

An extraordinary shareholders’ meeting should be convened within two (2) months from the date when shareholders holding more than ten percent (10%) of the voting shares of the Bank, either individually or jointly, request to convene in writing. Proposing shareholders shall have the right to request the Board of Directors in writing to convene an extraordinary shareholders’ meeting. The Board of Directors shall make a written response as to whether or not it agrees to convene such a meeting within ten (10) days upon receipt of the request in accordance with laws, administrative regulations, rules and the Articles of Association of the Bank. Reasonable expenses incurred from the case where shareholders convene the meeting by themselves due to the failure of the Board of Directors to convene the meeting shall be borne by the Bank, and deducted from the payment to those negligent directors.

## Submitting Interim Proposals for the Shareholders’ Meeting

According to the Articles of Association of the Bank, shareholders with the right to make proposals may prepare an interim proposal and submit it in writing to the Board of Directors ten (10) days before the convening of Shareholders’ Meetings. The Board of Directors shall issue a supplementary notice for the Shareholders’ Meeting within two (2) days upon receipt of the proposal and submit such proposal to the Shareholders’ Meeting for approval.

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# Corporate Governance, Environment and Society

## Putting Forward Suggestions and Reviewing Documents

Shareholders are entitled to supervise business operation of the Bank and put forward suggestions or inquiries accordingly. Shareholders are entitled to review the information of the Bank such as the Articles of Association, the register of shareholders, documents on the status of share capital and minutes of Shareholders’ Meetings, etc.

## Special Provisions on Rights of Preference Shareholders

In the following circumstances, preference shareholders of the Bank have the right to attend the Shareholders’ Meeting and exercise voting rights: (1) amendments to the Articles of Association which relate to preference shares; (2) the reduction of the registered capital of the Bank by more than 10% (either separately or in aggregate); (3) merger, division and dissolution or change of corporate form of the Bank; (4) issuance of preference shares; and (5) other events specified in the Articles of Association that will change or abrogate the rights of preference shareholders. If any of the above circumstances occurs, the notice of a Shareholders’ Meeting shall be given to preference shareholders in accordance with the notification procedures applicable to ordinary shareholders as specified in the Articles of Association.

In the event that the Bank fails to pay the agreed dividend to preference shareholders for three years in aggregate or for two consecutive years, from the next day following the date of approval of the proposal not paying the agreed dividend for the current year by the Shareholders’ Meeting, preference shareholders shall be entitled to attend and vote (together with ordinary shareholders) at the Shareholders’ Meeting. For preference shares the dividend of which is non-cumulative, the voting rights shall be temporarily restored until the full payment of the agreed dividend for the current year by the Bank.

## Other Rights

Ordinary shareholders of the Bank have the right to collect dividends and other forms of benefits distributed on the basis of the number of shares held by them; preference shareholders shall be entitled to rights to dividends in priority to payment of dividends to ordinary shareholders. Shareholders have other rights conferred by laws, administrative regulations, rules and the Articles of Association of the Bank.

## Inside Information Management

The Bank manages inside information and insiders in accordance with regulatory requirements of the exchanges on which the Bank is listed and the Bank’s rules, and conducts the collection, delivery, sorting, preparation and disclosure of relevant information in compliance with applicable laws and regulations. During the reporting period, the Bank continued to strengthen inside information management, timely organized the completion of insider lists and regularly conducted insider transaction self-inspections.

## Investor Relations

### Effective Communication with Shareholders and Review of Investor Relations Activities

The Bank carried out the investor relations management in accordance with the regulatory requirements in the place of listing. With consistent adherence to the investor-centered approach, the Bank has established an effective communication mechanism with investors based on the principle of serving investors in a comprehensive, proactive, precise, coordinated and efficient manner. The Bank made constant and extensive communication with investors and analysts through channels like press conferences in relation to periodic results announcements, domestic and overseas non-deal roadshows, reverse roadshows, investor hotline, investor relations mailbox, investor relations website and the online platform of the SSE E-interactive, and made records of these activities according to relevant regulatory requirements, striving to improve its work accuracy and service quality regarding investor relations.

During the reporting period, the Bank held the annual results announcement in the form of “on-site meeting + webcast” in Hong Kong SAR and Beijing simultaneously. It carried out multi-channel investor relations events at a high frequency in “online + offline”, “one-to-one and one-to-many” and “domestic + overseas roadshows” forms, so as to respond to investors’ concerns with market-oriented, international and professional expressions. A special reverse roadshow event titled “Tap Deep into Core Businesses, Strengthen Intelligent Manufacturing Foundation” was held to fully demonstrate the Bank’s value-creating capabilities for becoming better and stronger. The Bank took solid steps to protect the legitimate rights and interests of small and medium-sized investors, actively responded to inquiries about the

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platforms and channels such as the SSE E-interactive, investor hotline, investor relation mailbox, etc. In 2025, the Bank was awarded the "Best Practice of the Annual Report Presentation of Listed Companies" and the "Best Practices for Investor Relations Management of Listed Companies" by the China Association for Public Companies, "Best Listed Company in Return to Shareholders" by Phoenix TV, "Topology Award for Outstanding Financial Institutions in Investor Relations" by CLS.CN, "China Fund Industry Yinghua Award — Demonstration Case in Value and Demonstration Case in Investor Relations" by CHINAFUND.

In 2026, the Bank will further and proactively deepen the communication and exchange with investors to enhance investors' understanding and recognition of the Bank and continue to protect legitimate interests of the investors, at the same time, the Bank hopes to receive more support and attention from its investors. After implementing and reviewing the aforementioned measures, the Bank believes that the existing shareholder communication policy is adequate and effective.

## Investor Enquiries

If an investor wishes to enquire about any questions related to operation performance of the Bank, please contact:

| Contact Method | Details |
| :--- | :--- |
| Telephone: | 86-10-66108608 |
| Facsimile: | 86-10-66107420 |
| E-mail: | ir@icbc.com.cn |
| Address: | Corporate Strategy and Investor Relations Department, Industrial and Commercial Bank of China Limited, 55 Fuxingmennei Avenue, Xicheng District, Beijing, China |
| Postal code: | 100140 |

## Internal Control

The Board of Directors of the Bank is responsible for formulating the basic systems for internal control and supervising the implementation of such systems; the Audit Committee of the Board of Directors is responsible for supervising the establishment of internal control system and evaluating the compliance and effectiveness of the Bank's significant business and management activities. The Bank has set up the Internal Audit Bureau and Internal Audit Sub-bureaus under vertical management, which are accountable to and report to the Board of Directors. The Senior Management of the Bank is responsible for formulating systematic policies, procedures and methods, as well as taking risk control measures. Under the Senior Management, the Risk Management and Internal Control Committee performs the responsibilities related to internal control and evaluates the sufficiency and effectiveness of internal control. The Head Office and branches have internal control and compliance departments which are responsible for the organization, promotion and coordination of internal control.

During the reporting period, the Bank advanced the internal control system development in a forward-looking manner to address changes in the external risk situation and the needs of internal management strategies, and endeavored to enhance the adaptability and effectiveness of internal control management. It implemented the Work Measures for Internal Control System Development in 2025, carried out the "Year of Quality Momentum" compliance culture campaign and continued to cultivate a sound internal control ecosystem. Guided by the enterprise risk management system, the Bank further promoted the intelligent transformation of risk control, and effectively enhanced the foresightedness, accuracy and continuity of "9+X" risks identification. The internal control mechanisms for key areas, crucial links and weak points were improved to steadily enhance internal control for all institutions, processes and products. The Bank strictly implemented the closed loop of "supervision, remediation and accountability", firmly acted on the principle of "strict, precise, accurate and well-focused questioning" and promoted resource integration and efficient interaction between the Party Discipline Committee inspections, internal audits, internal controls and other supervisory activities, thereby improving the greater supervision pattern.

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# Corporate Governance, Environment and Society

## Internal Control Assessment Report and Internal Control Audit

While disclosing the annual report, the Bank also disclosed the 2025 Internal Control Assessment Report of Industrial and Commercial Bank of China Limited in accordance with the requirements of the MOF, the CSRC and the SSE. The report stated that the Bank had maintained effective internal control over financial reporting in all material aspects in accordance with the standard system for enterprise internal control and relevant rules as at 31 December 2025 (benchmark date). Ernst & Young Hua Ming LLP has audited the effectiveness of the Bank’s internal control over financial reporting as at 31 December 2025 and issued the unqualified audit report on internal control. For details, please refer to the announcements published by the Bank on the website of the SSE, the “HKEXnews” website of the HKEX and the website of the Bank.

## Internal Control Evaluation and Defects

The Board of Directors of the Bank conducted an assessment of the effectiveness of the Group’s internal control during the reporting period in accordance with the Basic Standard for Enterprise Internal Control and its supporting guidelines issued by five ministries and commissions including the MOF, the Circular on Further Improving the Effectiveness of Internal Control over Financial Reports of Listed Companies issued by the MOF and the CSRC, the Self-regulatory Guidelines for Listed Companies No. 1 — Standardized Operation issued by the SSE and relevant regulatory requirements of the NFRA. No material or significant deficiencies were noted in the Bank’s internal control system through the assessment. Risks that may arise from ordinary deficiencies are controllable and corrective actions have been or are being taken, which have no material impact on the fulfillment of internal control objectives of the Bank. The Bank had maintained effective internal control in all material aspects in accordance with the standard system for enterprise internal control and relevant rules.

There was no factor that affected the assessment conclusion of internal control effectiveness from the benchmark date to the issuance date of the internal control assessment report.

## Internal Audit

The Bank established a vertical and independent internal audit system composed of the Internal Audit Bureau and ten Internal Audit Sub-Bureaus, which are accountable to and report to the Board of Directors, shall accept the inspection, supervision, evaluation and guidance by the Audit Committee of the Board of Directors, and shall report to the Senior Management about the audit work. The Internal Audit Sub-bureaus, acting as the dispatched offices of the Internal Audit Bureau, are accountable to, and shall report to, the Internal Audit Bureau. The chart below illustrates the internal audit management framework and reporting lines of the Bank:

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# Corporate Governance, Environment and Society

During the reporting period, the Bank implemented risk-oriented audit activities according to the development strategies and central tasks of reform and transformation of the Bank. The Bank carried out the audit supervision of major business areas, key institutions, various risks and key minorities. The audit focused on the Bank’s performance in implementing national policies, meeting regulatory requirements, facilitating strategy implementation, strengthening risk prevention and control and other aspects, covering such areas as credit business, financial management, emerging business, compliance management, FinTech, operation management and capital management. The Bank also paid close heed to audit findings, studied and implemented audit recommendations, leveraged on audit supervision to continuously enhance the Bank’s business management, risk prevention and internal control. The ability to prevent risks and enhance compliance significantly improved. The foundation for the Bank’s high-quality development was further strengthened.

During the reporting period, the Bank proactively responded to changes in the macro environment in compliance with regulatory requirements. It formulated the annual audit plan, improved the modular operation of audits, established a sound quality control system for the entire audit process, stepped up efforts to implement the digital and intelligent audit project, enhanced the effectiveness of digital empowerment in audits, and completed the planned audit projects with high quality and efficiency. Research-oriented auditing was promoted to enhance the value contribution of audits. The audit team building was strengthened and the training and exchanges were intensified, so as to enhance the professional capabilities of the audit team. The long-term mechanism and responsibility system for audit remediation were improved and the cooperation between discipline inspections and audits was deepened in a joint effort to implement audit recommendations and effectively enhance the effectiveness of audit supervision.

## Engagement of Auditors

Ernst & Young Hua Ming LLP¹ (¹ Ernst & Young Hua Ming LLP is the Recognized Public Interest Entity Auditor under Hong Kong’s Accounting and Financial Reporting Council Ordinance. Ernst & Young is the Registered Public Interest Entity Auditor under Hong Kong’s Accounting and Financial Reporting Council Ordinance.) was engaged as the domestic external auditor of the Bank for the financial statements audit in 2025, and Ernst & Young¹ was engaged as the international external auditor of the Bank for the financial statements audit in 2025 and Ernst & Young Hua Ming LLP was engaged as the auditor of internal control of the Bank in 2025. Ernst & Young Hua Ming LLP, Ernst & Young, Audit Project Partner and Signatory Certified Public Accountant Yan Shengwei (A share), Audit Project Partner and Signatory Certified Public Accountant Zhang Mingyi (H share) and Signatory Certified Public Accountant Shi Yuxuan (A share) have rendered audit services for the Bank for two consecutive years (2024 to 2025). Deloitte Touche Tohmatsu Certified Public Accountants LLP and Deloitte Touche Tohmatsu rendered audit services for the Bank from 2021 to 2023.

During the reporting period, the Group paid a total fee of RMB191 million for the audit of financial statements (including the audit of financial statements of subsidiaries and overseas branches), of which, RMB102 million (including fee for internal control audit of RMB6,152.7 thousand) was paid by the Bank.

During the reporting period, accounting firms provided the Group with non-audit services including professional services for asset securitization and bonds issuance etc., and received RMB4 million for such professional non-audit services.

---

# Corporate Governance, Environment and Society

## Management on Subsidiaries

For the information of management and control on subsidiaries, please refer to "Discussion and Analysis — Business Overview — Comprehensive Operation and Subsidiary Management — Major Controlled Subsidiaries and Equity Participating Company".

## Whistleblowing Policy and Procedures

To address the reports of violations of internal policies and regulations by the Bank's entities or employees, the Bank has formulated the Measures for Handling Whistleblowing on Violations. Guided by the principles of "seeking truth from facts, legal compliance, safeguarding legitimate rights, and tiered responsibility", the Bank clarifies the scope of acceptable reports, defines handling procedures, and establishes mechanisms for jurisdiction-based case management, tiered responsibility assignment, whistleblower protection and confidentiality.

## Anti-corruption Policy

The Bank persists in addressing both the symptoms and root causes of corruption through systematic governance, advancing the threefold goal of ensuring all employees "deter corruption, prevent corruption and eliminate corruption". The Bank continued to strengthen deterrence against corruption by intensifying case investigations and promoting integrated investigation and crackdown on risks and corruptions, reinforcing a strict disciplinary environment. The Bank also leveraged past cases as lessons to drive reforms and improvements, carried out crackdown on the "Four Malfeasances" (formalism, bureaucracy, hedonism, and extravagance) and violations of the CPC Central Committee's Eight-Point Decision and crackdown on expenditure frauds, deepened corruption risk screening and improved the long-term mechanism for preventing and controlling corruption risk. The Bank further eliminated corruption by cultural reinforcement. It integrated Party into training programs, thoroughly carried out the study program on the CPC Central Committee's Eight-Point Decision, launched tiered and categorized warning education programs and further implemented the Integrity-Driven ICBC Initiative.

---

# Corporate Governance, Environment and Society

## Directors and Senior Management

### Basic Information on Directors and Senior Management

| Name | Position | Gender | Birth year | Tenure |
| :--- | :--- | :--- | :--- | :--- |
| Liao Lin | Chairman, Executive Director | Male | 1966 | Since July 2020 |
| Liu Jun | Vice Chairman, Executive Director, President, Chief Compliance Officer | Male | 1972 | Since June 2024 |
| Duan Hongtao | Executive Director | Male | 1969 | Since October 2025 |
| Wang Jingwu | Executive Director, Senior Executive Vice President, Chief Risk Officer | Male | 1966 | Since September 2021 |
| Cao Liqun | Non-executive Director | Female | 1971 | Since January 2020 |
| Dong Yang | Non-executive Director | Male | 1966 | Since January 2022 |
| Zhong Mantao | Non-executive Director | Female | 1978 | Since September 2024 |
| Norman Chan Tak Lam | Independent Non-executive Director | Male | 1954 | Since September 2022 |
| Herbert Walter | Independent Non-executive Director | Male | 1953 | Since March 2024 |
| Murray Horn | Independent Non-executive Director | Male | 1954 | Since August 2024 |
| Chen Guanting | Independent Non-executive Director | Male | 1963 | Since November 2024 |
| Li Weiping | Independent Non-executive Director | Male | 1973 | Since February 2025 |
| Lee Kam Hung Lawrence | Independent Non-executive Director | Male | 1954 | Since January 2026 |
| Zhang Weiwu | Senior Executive Vice President | Male | 1975 | Since June 2021 |
| Yao Mingde | Senior Executive Vice President, Chief Financial Officer | Male | 1970 | Since March 2024 |
| Zhang Shouchuan | Senior Executive Vice President | Male | 1973 | Since June 2024 |
| Zhao Guide | Senior Executive Vice President | Male | 1970 | Since November 2025 |
| Tian Fenglin | Board Secretary, Chief Business Officer | Male | 1967 | Since December 2023 |
| **Directors and Senior Management Leaving Office** | | | | |
| Lu Yongzhen | Non-executive Director | Male | 1967 | August 2019-November 2025 |
| Feng Weidong | Non-executive Director | Male | 1964 | January 2020-May 2025 |
| Chen Yifang | Non-executive Director | Female | 1964 | August 2021-May 2025 |
| Fred Zuliu Hu | Independent Non-executive Director | Male | 1963 | April 2019-April 2025 |
| Song Jianhua | Chief Business Officer | Male | 1965 | April 2020-February 2026 |

**Notes:** 
1. Please refer to the section headed "Appointment and Departure".
2. The terms of Mr. Liao Lin, Mr. Liu Jun, Mr. Duan Hongtao and Mr. Wang Jingwu as Executive Directors of the Bank is set out in the above table. Please refer to the section headed "Biographies of Directors and Senior Management" for the starting time of their terms as Senior Management members of the Bank. The term of Mr. Yao Mingde as Senior Executive Vice President of the Bank is set out in the above table. Please refer to the section headed "Biographies of Directors and Senior Management" for the starting time of his term as Chief Financial Officer of the Bank. The term of Mr. Tian Fenglin as Chief Business Officer of the Bank is set out in the above table. Please refer to the section headed "Biographies of Directors and Senior Management" for the starting time of his term as Board Secretary of the Bank.
3. According to the regulations of the CSRC, the commencement date of a re-elected director's tenure as indicated in the above table shall be the day of his/her first appointment. According to the Articles of Association of the Bank, the term of the Bank's directors is three years and they can be re-elected and reappointed upon expiration of their term.
4. During the reporting period, the Bank did not implement any share incentives. None of the existing directors and senior management members of the Bank or those who left office during the reporting period held shares or share options or were granted restricted shares of the Bank, and there was no change during the reporting period.

---

# Corporate Governance, Environment and Society

## Biographies of Directors and Senior Management

### Liao Lin, Chairman, Executive Director

Mr. Liao has served as Chairman and Executive Director of the Bank since February 2024, Vice Chairman, Executive Director and President of the Bank since March 2021, and Executive Director of the Bank since July 2020. He served as Senior Executive Vice President, Senior Executive Vice President and concurrently Chief Risk Officer of the Bank since November 2019. Mr. Liao was appointed as Deputy General Manager of Guangxi Branch of China Construction Bank, General Manager of Ningxia Branch, Hubei Branch and Beijing Branch of China Construction Bank, Chief Risk Officer, Executive Vice President and concurrently Chief Risk Officer of China Construction Bank. Mr. Liao holds a Doctoral degree in Management Science. He is a senior economist.

### Liu Jun, Vice Chairman, Executive Director, President, Chief Compliance Officer

Mr. Liu has served as Vice Chairman and Executive Director of the Bank since June 2024, President of the Bank since May 2024, and concurrently Chief Compliance Officer of the Bank since March 2026. He previously served as Vice Chairman, Executive Director and President of the Bank of Communications Co., Ltd. He served as Executive Vice President and Chief Risk Officer of China Investment Corporation. He served as Deputy General Manager of China Everbright Group Ltd., Executive Director and Deputy General Manager of China Everbright Group Limited and Senior Executive Vice President of China Everbright Bank. Mr. Liu holds a Doctoral degree in Business Administration. He is a senior economist.

### Duan Hongtao, Executive Director

Mr. Duan has served as Executive Director of the Bank since October 2025. He previously served as the Assistant to General Manager and Deputy General Manager of Hubei Branch, General Manager of Qingdao Branch, General Manager of Shandong Branch, and Director of the Executive Office of the Head Office of China Construction Bank, Senior Executive Vice President, and Senior Executive Vice President and concurrently Board Secretary of ICBC. Mr. Duan holds a Doctoral degree in Management. He is a senior economist.

### Wang Jingwu, Executive Director, Senior Executive Vice President, Chief Risk Officer

Mr. Wang has served as Executive Director, Senior Executive Vice President and concurrently Chief Risk Officer of the Bank since September 2021, and as Senior Executive Vice President of the Bank since April 2020. He previously served as Supervision Commissioner (Deputy Director level) of the PBC Shijiazhuang Central Sub-branch, Head of the PBC Shijiazhuang Central Sub-branch and concurrently Director of the State Administration of Foreign Exchange (“SAFE”) Hebei Branch, Head of the PBC Hohhot Central Sub-branch and concurrently Director of the SAFE Inner Mongolia Branch, Head of the PBC Guangzhou Branch and concurrently Director of the SAFE Guangdong Branch, and Director-General of the PBC Financial Stability Bureau. Mr. Wang holds a Doctoral degree in Economics. He is a research fellow.

---

## Cao Liqun, Non-executive Director

Ms. Cao has served as Non-executive Director of the Bank since January 2020. She joined Huijin in 2020. Ms. Cao previously served as Deputy Director of Regulations Division, General Affairs Department, Director of Regulations Division, General Affairs Department, Director of Non-Financial Institutions Inspection Division, Supervision and Inspection Department, Director of General Affairs Division, Supervision and Inspection Department, Deputy Director-General of Supervision and Inspection Department, Inspector of General Affairs Department (Policy and Regulation Department), Level-Two Inspector of General Affairs Department (Policy and Regulation Department) of State Administration of Foreign Exchange, and acted as Deputy Director of Administrative Committee of Beijing’s Zhongguancun Science Park. Ms. Cao holds a Bachelor’s degree in Law from China University of Political Science and Law, a Master’s degree in Finance from Renmin University of China, and a Master’s degree in Public Administration from Peking University. Ms. Cao is an economist.

## Dong Yang, Non-executive Director

Mr. Dong has served as Non-executive Director of the Bank since January 2022. He joined the MOF in 1989. He previously served as assistant researcher, researcher and secretary (director level) of the Department of National Defense of the MOF, a member of the CPC Committee, Deputy Inspector, and Discipline Inspection Team Leader of the Commissioner’s Office of the MOF in Heilongjiang, a member of the CPC Committee, Deputy Inspector and Discipline Inspection Leader of the Commissioner’s Office of the MOF in Beijing, a member of the CPC Committee, Deputy Director, and Discipline Inspection Team Leader of the Beijing Regulatory Bureau of the MOF. Mr. Dong holds a Bachelor’s degree in Economics from Beijing Normal University, and a Master’s degree in Management from Harbin Engineering University.

## Zhong Mantao, Non-executive Director

Ms. Zhong has served as Non-executive Director of the Bank since September 2024. She joined Huijin in 2024. She previously served as the Deputy Chief of Review Division III and Review Division I of the Assessment and Review Department of Export-Import Bank of China, the Chief of Review Division I and Assessment Division II of the Assessment and Review Department of Export-Import Bank of China, the Deputy General Manager of the Assessment and Review Department, the Deputy General Manager of the Credit Review and Approval Department, and the Deputy General Manager of Corporate Banking Department of Export-Import Bank of China. Ms. Zhong holds a Master’s degree in Economics from Central University of Finance and Economics.

## Norman Chan Tak Lam, Independent Non-executive Director

Mr. Chan has served as Independent Non-executive Director of the Bank since September 2022. He previously served as Chief Executive of the Hong Kong Monetary Authority, Director of the Chief Executive’s Office of the Hong Kong Special Administrative Region Government, Vice Chairman of Asia of Standard Chartered Bank, Chairman of HK Acquisition Corporation and other positions. He currently serves as Chairman of the Board of Directors of RD Wallet Technologies Limited, Chairman of the Board of Directors of RD ezLink Limited, Founding Chairman of Hong Kong Institute of Web 3.0, Senior Adviser of the Hong Kong Academy of Finance, Chairman of the Board of Trustees of Chung Chi College of The Chinese University of Hong Kong, Vice Chairman of The Chinese University of Hong Kong Council, Chairman of the Board of CUHK Innovation Limited. He obtained a Bachelor’s degree in Social Sciences from The Chinese University of Hong Kong, an Honorary Fellowship from The Chinese University of Hong Kong, an Honorary Doctorate of Business Administration from City University of Hong Kong, an Honorary Doctorate of Business Administration from Lingnan University, an Honorary Doctorate of Business Administration from Hong Kong Shue Yan University, an Honorary Doctorate of Social Sciences of The Chinese University of Hong Kong. He was awarded the Silver Bauhinia Star by the Hong Kong Special Administrative Region and the Gold Bauhinia Star by the Hong Kong Special Administrative Region. He is a Fellow of The Hong Kong Institute of Bankers, Fellow of Hong Kong Academy of Finance. He was awarded the IFTA FinTech Achievement Award by the Institute of Financial Technologists of Asia (IFTA), the Leadership Lifetime Achievement Award by *The Asian Banker*.

---

## Herbert Walter, Independent Non-executive Director

Mr. Walter has served as an Independent Non-executive Director of the Bank since March 2024. He previously served as Chairman of the Board of Dresdner Bank AG, a member of the Holding Board of Allianz SE, a member of the Group Executive Committee, the Global Head of Retail, Private and Commercial Banking of Deutsche Bank, Chairman of the German Financial Market Stabilisation Authority (FMSA), Chairman of the German National Resolution Authority (NRA) and a Plenary Member of the European Single Resolution Board (SRB), and an Independent Non-executive member of the Supervisory Boards of financial institutions and companies, including Banco Português de Investimento (BPI), S.A. (Porto), and DEPFA Bank plc (Dublin), ERGO Insurance Group AG, Deutsche Börse Group AG, E.ON Ruhrgas AG and Lufthansa Group AG. He was Chairman of the Advisory Board of the Institute for Law and Finance at the Goethe University Frankfurt am Main and the Karajan Academy of the Berlin Philharmonic Orchestra, and a member of the Advisory Boards of Amundi Asset Management Group (Germany), Consileon Consultancy Group and Scope European Ratings Group. He is currently an Independent Non-executive member of the Supervisory Board of AKBANK AG. He obtained a Master’s degree in Business Administration from the Ludwig Maximilian University in Munich and holds a Doctorate in Political Science.

## Murray Horn, Independent Non-executive Director

Mr. Murray Horn has served as an Independent Non-executive Director of the Bank since August 2024. Mr. Murray Horn previously served as Managing Director of ANZ Bank in New Zealand and head of global institutional banking at ANZ (Australia), an independent director at China Construction Bank. He was Secretary to the New Zealand Treasury. He was also the Chairman of the National Health Board of New Zealand, member of the New Zealand Tourism Board, Chairman of the New Zealand Business Roundtable, member of the Board of the Centre for Independent Studies in Australia and member of the Trilateral Commission. Mr. Murray Horn currently serves as Non-executive Chairman of CCB New Zealand Limited, Chairman of Marisco Properties Limited and Chairman of Marisco Vineyards Limited. Mr. Murray Horn holds a PhD degree from Harvard University in Political Economy and Government and a Master’s degree in Commerce and a Bachelor’s degree in Commerce from Lincoln University. Mr. Murray Horn was awarded the Bledisloe Medal from Lincoln University, and was made a Companion of the New Zealand Order of Merit.

## Chen Guanting, Independent Non-executive Director

Mr. Chen has served as an Independent Non-executive Director of the Bank since November 2024. He previously held positions as assistant auditor, auditor and senior auditor at the Shandong Provincial Audit Office, Independent Director of Integrated Electronic Systems Lab Co., Ltd., and Independent Director of Bloomage Biotechnology Corporation Limited. Mr. Chen is currently a Doctoral Supervisor in the Department of Accounting at the School of Economics and Management at Tsinghua University, the Director of the Research Center for Intelligent Auditing of the School of Economics and Management at Tsinghua University, and a Researcher at the Institute for State-owned Assets Management at Tsinghua University. He also serves as an Independent Director of Alltrust Insurance Company Ltd., Vice Chairman of the Beijing Audit Society, Vice Chairman of the Intelligent Accounting Branch of the China Business Accounting Institute, and a member of the Information Technology Committee of the Chinese Institute of Certified Public Accountants. Mr. Chen holds a Doctoral degree in Accounting from Renmin University of China. He is a certified public accountant and senior auditor.

---

## Li Weiping, Independent Non-executive Director

Mr. Li has served as an Independent Non-executive Director of the Bank since February 2025. He previously held positions as a member of the Party Committee, the assistant to the president and the director of the Office of International Relations at the School of Software & Microelectronics of Peking University, as well as the deputy director at the Department of Software Engineering and Data Technology of the School of Software & Microelectronics. Mr. Li is currently the deputy director of the Teaching Guidance Committee, a professor and a doctoral supervisor at the School of Software & Microelectronics of Peking University. He concurrently serves as a Distinguished Member of the China Computer Federation (CCF), a member of the CCF-TC Service Computing, a member of the Social Media Processing Professional Committee of the Chinese Information Processing Society of China (CIPS-SMP), a member of the System Architecture, Communication and Integration Framework Committee of the China National Technical Committee for Automation Systems and Integration Standardization, a member of the Organizational Unified Social Credit Code Technical Committee of the National Social Credit Standardization Technical Committee, and the chief scientist of the National Key Research and Development Program Project. Mr. Li holds a Doctoral degree from Shenyang Institute of Automation, Chinese Academy of Sciences.

## Lee Kam Hung Lawrence, Independent Non-executive Director

Mr. Lee has served as an Independent Non-executive Director of the Bank since January 2026. He previously served as the Chairman of Hong Kong SAR and Chinese Mainland offices, the Chairman of the Asia Pacific Regional Council and a member of the Executive Committee of Baker McKenzie, a Non-executive Director, Chairman of the Process Review Panel, and a member of the Takeovers and Mergers Panel and the Takeovers Appeal Committee of the Securities and Futures Commission, Hong Kong SAR. Mr. Lee currently serves as the Chairman and Non-executive Director of OSL Group Limited, engaging in practicing barrister’s work at the same time, and he is a Senior Fellow of Hong Kong Securities and Investment Institute. Mr. Lee obtained a Bachelor’s Degree in Laws (LLB) and a Postgraduate Certificate in Laws (P.C.LL) from the University of Hong Kong. He was awarded the Bronze Bauhinia Star and the title of Justice of the Peace.

## Zhang Weiwu, Senior Executive Vice President

Mr. Zhang has served as Senior Executive Vice President of the Bank since June 2021. He was appointed as General Manager of ICBC (Europe) Amsterdam Branch, General Manager of Singapore Branch and General Manager of the International Banking Department of the Head Office of ICBC. Mr. Zhang holds a Master’s degree in Economics and an MBA degree. He is a senior economist.

## Yao Mingde, Senior Executive Vice President, Chief Financial Officer

Mr. Yao has served as Senior Executive Vice President of the Bank since March 2024, and concurrently as Chief Financial Officer of the Bank since September 2025. He previously served as Deputy General Manager of the Financial Accounting Department/County Area Banking Accounting and Assessment Center of the Head Office of Agricultural Bank of China, General Manager of the Financial Accounting Department/Office of Assessment Center/County Area Banking/Inclusive Finance Accounting and Assessment Center of the Head Office, Chairman of Agricultural Bank of China (Moscow) Limited, and President of Shenzhen Branch of Agricultural Bank of China. Mr. Yao Mingde holds a Doctor’s degree in Management. He is a senior accountant.

---

# Corporate Governance, Environment and Society

## Zhang Shouchuan, Senior Executive Vice President

Mr. Zhang has served as Senior Executive Vice President of the Bank since June 2024. He previously served as Deputy General Manager of the Risk Management Department and concurrently Director of the Basel II Planning and Coordination Office, Vice President and concurrently Chief Risk Officer of Shandong Branch, President of Inner Mongolia Branch, Director of the Executive Office of the Head Office, and President of Shanghai Branch and concurrently Executive Vice President of Shanghai RMB Trading Unit of Bank of China. Mr. Zhang holds a Doctoral degree in Economics. He is an economist.

## Zhao Guide, Senior Executive Vice President

Mr. Zhao has served as Senior Executive Vice President of the Bank since November 2025. He previously served as Deputy General Manager of ICBC Jilin Branch, General Manager of Inner Mongolia Branch, General Manager of Shandong Branch, Chief Responsible Officer in charge of the Credit Approval Department of the Head Office, and General Manager of Shanghai Branch. Mr. Zhao holds a Master’s degree in Business Administration (International). He is a senior economist.

## Tian Fenglin, Board Secretary, Chief Business Officer

Mr. Tian has served as Board Secretary of the Bank since September 2025 and as Chief Business Officer of the Bank since December 2023. He previously served as Deputy General Manager of ICBC Singapore Branch, Executive Director and General Manager of ICBC (Malaysia), Vice Chairman of ICBC (Argentina), Deputy General Manager of Jiangsu Provincial Branch and General Manager of Suzhou Branch, General Manager of Jiangsu Provincial Branch, and General Manager of the Corporate Banking Department and the Investment Banking Department of the Head Office. He holds an MBA degree. He is a senior economist.

Ms. Cao Liqun, Mr. Dong Yang and Ms. Zhong Mantao were recommended by Huijin to serve as Non-executive Directors of the Bank. Huijin holds interests in shares of the Bank. Please refer to the section headed “Details of Changes in Share Capital and Shareholding of Substantial Shareholders — Interests and Short Positions Held by Substantial Shareholders and Other Persons” for further details.

None of the Directors and Senior Management members of the Bank, whether they are incumbent or have left office during the reporting period, have been punished by the securities regulator in the past three years.

---

# Appointment and Departure

## Directors

At the Third Extraordinary Shareholders’ General Meeting of 2024 held on 2 December 2024, Mr. Li Weiping was elected as Independent Non-executive Director of the Bank, and his qualification was approved by the NFRA in February 2025. At the Bank’s Annual Shareholders’ Meeting for the Year 2024 held on 27 June 2025, Mr. Dong Yang was re-elected as Non-executive Director of the Bank, and his new term of office as Non-executive Director started from the date of approval by the Annual Shareholders’ Meeting. At the First Extraordinary Shareholders’ Meeting of 2025 held on 16 October 2025, Mr. Duan Hongtao was elected as Executive Director of the Bank, and his qualification was approved by the NFRA in October 2025; Mr. Norman Chan Tak Lam was re-elected as Independent Non-executive Director of the Bank, and his new term of office as Independent Non-executive Director started from the date of approval by the Shareholders’ Meeting; Mr. Lee Kam Hung Lawrence was elected as Independent Non-executive Director of the Bank, and his qualification was approved by the NFRA in January 2026.¹ ¹ Before their appointments became effective, Mr. Duan Hongtao and Mr. Lee Kam Hung Lawrence confirmed that they obtained the legal advice required under Section 3.09D of Hong Kong Listing Rules on 25 October and 6 January 2026, respectively, and understood their responsibilities as directors of the Bank.

In April 2025, Mr. Fred Zuliu Hu ceased to act as Independent Non-executive Director of the Bank due to expiration of his term of office. In May 2025, Mr. Feng Weidong ceased to act as Non-executive Director of the Bank due to his age, and Ms. Chen Yifang ceased to act as Non-executive Director of the Bank due to expiration of her term of office. In November 2025, Mr. Lu Yongzhen ceased to act as Non-executive Director of the Bank due to expiration of his term of office.

## Senior Management Members

On 29 August 2025, the Board of Directors of the Bank appointed Mr. Yao Mingde to concurrently serve as Chief Financial Officer of the Bank, and his qualification was approved by the NFRA in September 2025. On 29 August 2025, the Board of Directors of the Bank appointed Mr. Tian Fenglin to concurrently serve as Board Secretary of the Bank, as well as Company Secretary and Authorized Representative. His appointments as Company Secretary and Authorized Representative took effect upon the consideration and approval by the Board of Directors, and his qualification for Board Secretary was approved by the NFRA in September 2025. On 30 October 2025, the Board of Directors of the Bank appointed Mr. Zhao Guide as Senior Executive Vice President of the Bank, and his qualification was approved by the NFRA in November 2025. On 27 March 2026, the Board of Directors of the Bank appointed Mr. Liu Jun to concurrently serve as Chief Compliance Officer of the Bank, and his appointment will take effect upon the consideration and approval by the Board of Directors.

Due to position change, Mr. Duan Hongtao has taken office as Deputy Secretary of the Party Committee of the Bank from June 2025, and he tendered the resignation to the Bank in August 2025, resigning from his positions as Senior Executive Vice President, Board Secretary and Company Secretary of the Bank. During the period from the resignation of Mr. Duan Hongtao to the effective date of the appointment of Mr. Tian Fenglin as Board Secretary, Mr. Tian Fenglin shall perform duties on behalf of Board Secretary. In February 2026, Mr. Song Jianhua ceased to act as Chief Business Officer of the Bank due to his age.

---

# Corporate Governance, Environment and Society

## Annual Remuneration

Unit: RMB10,000

| Name | Remuneration paid (before tax) (1) | Contribution by the employer to social insurance, housing allowance, annuities, and additional medical insurances (2) | Fees (3) | Other monetary income (4) | Total remuneration before tax (5)=(1)+(2)+(3)+(4) | Obtain remuneration from shareholder entities or other related parties or not |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: |
| Liao Lin | 68.60 | 24.04 | - | - | 92.64 | No |
| Liu Jun | 68.60 | 24.04 | - | - | 92.64 | No |
| Duan Hongtao | 61.74 | 23.30 | - | - | 85.04 | No |
| Wang Jingwu | 61.74 | 23.30 | - | - | 85.04 | No |
| Cao Liqun | - | - | - | - | - | Yes |
| Dong Yang | - | - | - | - | - | Yes |
| Zhong Mantao | - | - | - | - | - | Yes |
| Norman Chan Tak Lam | - | - | 52.00 | - | 52.00 | Yes |
| Herbert Walter | - | - | 47.00 | - | 47.00 | No |
| Murray Horn | - | - | 50.66 | - | 50.66 | Yes |
| Chen Guanting | - | - | 44.00 | - | 44.00 | No |
| Li Weiping | - | - | 41.92 | - | 41.92 | No |
| Lee Kam Hung Lawrence | - | - | - | - | - | No |
| Zhang Weiwu | 61.74 | 23.30 | - | - | 85.04 | No |
| Yao Mingde | 61.74 | 23.30 | - | - | 85.04 | No |
| Zhang Shouchuan | 61.74 | 23.30 | - | - | 85.04 | No |
| Zhao Guide | 10.29 | 3.91 | - | - | 14.20 | No |
| Tian Fenglin | 61.74 | 28.86 | - | - | 90.60 | No |
| **Directors and Senior Management Members Leaving Office** | | | | | | |
| Lu Yongzhen | - | - | - | - | - | Yes |
| Feng Weidong | - | - | - | - | - | No |
| Chen Yifang | - | - | - | - | - | Yes |
| Fred Zuliu Hu | - | - | 14.67 | - | 14.67 | Yes |
| Song Jianhua | 61.74 | 29.85 | - | - | 91.59 | No |

**Notes:**

(1) Since January 2015, the remuneration to the Chairman of the Board of Directors, the President and other executives of the Bank has followed the State’s policies relating to the remuneration reform on executives of central enterprises.

(2) During the reporting period, the total remuneration amount paid to Directors and Senior Management members was RMB10,571.2 thousand. According to the requirements of relevant government authorities, the total final remuneration payable to the Chairman of the Board of Directors, the President, Executive Directors and other Senior Management members is still subject to final confirmation by relevant government authorities. Additional details of remuneration will be disclosed when they have been determined.

(3) According to relevant rules of the Bank, Senior Management members of the Head Office and employees in positions that have a significant influence on the risks of the Head Office include executives of the Bank such as Chairman, Vice Chairman, Executive Director, President and Senior Executive Vice President of the Head Office, Senior Management members such as Board Secretary and Chief Business Officer, and tier-1 approver. During the reporting period, the Bank’s tier-1 approvers were assumed by Mr. Duan Hongtao, Mr. Wang Jingwu, Mr. Zhang Weiwu, Mr. Yao Mingde, Mr. Zhang Shouchuan, Mr. Zhao Guide and Mr. Tian Fenglin concurrently. As at the disclosure date, the Senior Management members of the Head Office and the employees in positions that have a significant influence on the risks of the Head Office had not been involved in the circumstances that require the recourse and rebate of performance-based remuneration in 2025.

(4) During the reporting period, Ms. Cao Liqun, Mr. Dong Yang, Ms. Zhong Mantao, Mr. Lu Yongzhen, Mr. Feng Weidong and Ms. Chen Yifang did not obtain remuneration from the Bank during their tenure as Directors of the Bank.

(5) As the Bank’s Independent Non-executive Directors served as directors or senior management members of other legal persons or organizations other than the Bank or the controlled subsidiaries of the Bank, such legal persons or organizations became related parties of the Bank. During the reporting period, some Independent Non-executive Directors obtained remuneration from such related parties. Except to the extent of the aforementioned circumstances, none of the Bank’s Directors or Senior Management members was paid by the Bank’s related parties during the reporting period.

(6) For the change of the Bank’s Directors and Senior Management members, please refer to the section headed “Appointment and Departure”.

---

# Environmental and Social Responsibilities

## ESG Governance Framework

The Board of Directors of the Bank actively performed its role in strategic decision-making and supervision, made continuous efforts to deepen ESG governance and refined the ESG governance framework. The Strategy Committee established under the Board of Directors was responsible for reviewing the strategic arrangements for sustainable development and proposing suggestions to the Board of Directors. The Corporate Social Responsibility and Consumer Protection Committee under the Board of Directors was responsible for hearing and deliberating on the Bank's policies and goals and relevant matters regarding sustainable finance, serving rural revitalization, corporate culture development, and ESG, keeping track of the Bank's performance of social responsibility, reviewing the annual sustainability report and reporting to the Board of Directors.

The Senior Management of the Bank was responsible for ESG (social responsibility and sustainable development) management. The Senior Management set up the Green Finance (ESG and Sustainable Finance) Committee and made it a supportive decision-making body to support the Senior Management to coordinate, lead and advance the green finance and relevant work. The Green Finance (ESG and Sustainable Finance) Committee was responsible for implementing the Group's green finance (ESG and sustainable finance) strategies and objectives, coordinating and promoting green finance (ESG and sustainable finance)-related work of all business lines of all ICBC institutions, and guiding the development, operation and management of green finance (ESG and sustainable finance) across the Bank.

The domestic institutions at all levels implemented the ESG and sustainable development concepts in their operation and management activities in accordance with laws, regulations and regulatory requirements, and the overseas institutions implemented them in accordance with local standards and regulatory requirements.

## Green Finance

Adhering to the business tenet of promoting green development with green finance, the Bank continued to refine its system of green financial products and services, and innovatively built a green financial development model with distinctive ICBC's characteristics. During the reporting period, the Bank integrated the concept of green development into its day-to-day operation, promote green finance across the board from a strategic perspective, kept stepping up green investment and financing to serve green development, improved the incentives mechanism for innovative development of green finance, enhanced the capability of managing climate and environmental risks, aligned its activities with international leading practices and advanced high-quality development of green finance. The Bank was rated as "Excellent" in the green finance assessment by the PBC and won a number of awards for green finance, including the "Best Bank for Sustainable Finance, China" from The Asset, in recognition of its stronger market influence and public awareness.

Green investment and financing continued to grow, maintaining its leading position among peers. As at the end of 2025, the Bank recorded more than RMB6.7 trillion in total balance of green loans, ranking first among peers. The green funds were used for key green sectors such as clean energy, green transportation, green buildings, green manufacturing, and energy conservation and carbon reduction. The Bank launched innovative products and services such as loans secured by carbon emission rights, pollution discharge rights, and water rights, expanded ecological product services like forest carbon sinks and marine carbon sinks, and vigorously developed green consumer services, delivering notable results in emissions reduction.

Multi-dimensional innovation in green finance products was carried out to meet the diverse needs of green development with comprehensive solutions. During the reporting period, the Bank innovatively issued the first floating-rate green financial bond of RMB8.0 billion among domestic commercial banks, helping optimize the interest rate transmission mechanism in China's green financial market. It successfully issued "carbon neutrality" themed offshore green bonds in multiple currencies overseas. The Bank acted as the lead underwriter for the first "Green + Renewal and Trade-in + Sci-tech Innovation" bond in the country to implement the state plans and decisions. ESG advisory services were provided in multiple cities to empower sustainable development of enterprises. The Bank actively participated in the pilot program on transition finance, promoted transition finance innovation focused on key transition customers and projects and became one of the first movers in the sustainability-linked bond and

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# Corporate Governance, Environment and Society

transition bond business. It issued a number of transition loans in pilot regions including Zhejiang and Guangdong, and effectively helped implement the transition finance standards at a faster pace. In the field of carbon finance, the Bank explored innovative carbon finance products and services, such as loans secured by carbon emission allowances and loans secured by the Chinese Certified Emission Reduction (CCER) and expected income from ecological carbon sinks. The Bank innovatively launched "Electricity-Carbon Linked Loan" and "Carbon Account Linked Loan", among others, offering financial incentives to encourage faster low-carbon transition among businesses.

## Green Operation

**The Bank actively pursued energy conservation and carbon emission reduction in its operations.** It optimized the proprietary carbon footprint management system, completed the collection of carbon emission data for domestic employees' commuting and business trips, and improved the disclosure of carbon emission data. Professional organizations were hired to conduct data verification and provide consulting services, to provide data support for low-carbon operations.

**The Bank's energy conservation and carbon emission focused on IT infrastructure, building infrastructure, daily office operations and key energy-consuming facilities.** The data centers actively carried out systematic energy-saving renovations of the computer room infrastructure. Green electricity was promoted, with the usage of green power gradually increased at many institutions, including the Business Research & Development Center and Xizang Branch. Green outlets were continuously built, with more sub-branches in Yunnan, Hubei and other regions certified for neutrality. Green office practices and paperless meetings were promoted to boost energy conservation and carbon reduction. The Bank stepped up the publicity and training on low-carbon operation by various means, including issuing green and low-carbon posters, conducting "carbon peak and carbon neutrality" staff training and organizing activities for Energy Conservation Week.

## Consolidating and Building on Achievements in Poverty Alleviation and Serving Rural Revitalization

**Aligned with the national strategy for rural revitalization, the Bank focused on the key areas of "agriculture, rural areas and farmers", leveraged its strengths to "address the country's needs, give full play to finance and tap into ICBC strengths" and expand its agricultural financial supply, providing a full spectrum of financial services to support rural revitalization.** As at the end of 2025, the balance of agriculture-related loans was RMB5,072.2 billion, representing an increase of RMB676.1 billion over the beginning of the year.

**The Bank supported the enhancement of capacity to ensure the supply of grains and other important agricultural products and continued to consolidate and expand the achievements in poverty alleviation.** It further promoted the "Bountiful Harvest Action" plan to ensure food security, implemented the "ICBC Harvest 12 Measures" and issued supportive credit policies for food production chains and high-standard cropland development. Dedicated products including "Grain Planting Loan", "Planting e Loan", "Grain Purchase Loan", "Vegetable Basket Development Loan" and "Breeding e Loan", expanding the financial supply for production of grains and important agricultural products. As at the end of 2025, the balance of loans to key areas of grain was RMB290.0 billion, representing an increase of RMB59.3 billion compared with the beginning of the year. The Bank supported the industrial development in poverty-stricken areas and increased the credit supply to key counties for targeted assistance. In resource allocation, priority was given to agriculture-related credit in terms of credit scale, internal fund pricing, and exclusive rights and benefits. Innovative financing solutions with regional characteristics were created for competitive industries, such as tea-oil trees and apples, in areas that have shaken off poverty. The "Settlement Support for Farmers" campaign was carried out to support developing distractive local industries and promote the income growth and prosperity of farmers in

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# Corporate Governance, Environment and Society

areas lifted out of poverty. The Bank continued to carry out the "ICBC Stars · Supporting Rural Residents and Enabling Dreams" special recruitment campaign in areas lifted out of poverty, providing employment-related support for people lifted out of poverty, college graduates serving as village officials and participants in the "Three Supports and One Assistance" Program. As at the end of 2025, the balance of loans to key counties under the National Rural Revitalization Program was RMB228.8 billion, representing an increase of 12% over the beginning of the year, which was higher than the average growth rate of the Bank's loans; the balance of loans to poverty-stricken areas was RMB1,359.7 billion, representing an increase of RMB147.9 billion over the beginning of the year.

**The Bank supported expanding county-level wealth-boosting industries, promoting rural development and improving the rural governance system.** In collaboration with the Ministry of Agriculture and Rural Affairs, the Bank vigorously carried out the "Agricultural Matchmaking" event, implemented the Action Plan for Agricultural Matchmaking Services for Rural Industrial Development and deployed four major initiatives of "commercial services, financing, consulting and product offerings", and got deeply involved in major national agricultural-related events such as agricultural product trade fairs and the Golden Autumn Consumption Season. It also rolled out financial measures benefiting farmers. As at the end of 2025, the "Agricultural Matchmaking" platform had served nearly 490 thousand agricultural business entities and facilitated over 50 thousand matchmakings of agricultural resources. Regarding the major project pipeline for agricultural and rural infrastructures, the Bank enhanced financial services for rural roads, water supply, power grid, telecommunications, and delivery and logistics systems, and promoted new urbanization centered on county-level development. As at the end of 2025, the balance of rural infrastructure construction loans was RMB1.11 trillion, representing an increase of RMB124.0 billion over the beginning of the year. The "Digital Rural Comprehensive Service Platform" established IT cooperation with 1,400 district, county or higher-level agencies for agriculture and rural affairs to promote rural governance. The Bank carried out training programs such as "Partner Bellwether Plan" and "High-Quality Farmer Training Program", integrating agricultural and financial knowledge to cement the talent base for building up China's strength in agriculture.

**The Bank deepened the innovation of service models, and provided solid financial services to promote comprehensive rural revitalization.** The Bank built a "1+4+X" rural revitalization service system with distinctive ICBC features, and carried out the rural revitalization series of special campaigns with the aim of being a leading provider of financial services for all-round rural revitalization. In terms of ecosystem synergy, the Bank internally established an organizational promotion framework featuring collaboration among business lines and vertical classifications. Externally, it deepened cooperation with government departments, supply and marketing cooperatives, agricultural guarantee systems, business associations, and leading enterprises, jointly building a financial service ecosystem. In terms of digitalization, the Bank explored the application of satellite remote sensing in the agricultural sector together with technologies such as the Internet of Things and biometrics, and conducted collateral monitoring and post-lending management, thereby further enhancing the digital credit capabilities. In terms of product adaptation, an urban-rural integrated inclusive credit product system was established, which is based on common products applicable to both rural and urban areas and supplemented by two sub-scenarios: county areas and regional characteristics. In terms of channel development, the Bank accelerated the upgrade of "ICBC Xingnongtong" online services such as "ICBC e Pooling" open banking, built over one thousand "Supply & Marketing + Finance" grassroots service stations in conjunction with supply and marketing cooperatives, and continued to optimize the integrated pattern of online and offline service channels at county and township levels. As at the end of 2025, the coverage rate of county-level outlets reached 87.5%, and the number of rural customers in county areas exceeded 200 million.

**The Bank unleashed its strengths to provide targeted assistance for Nanjiang County, Tongjiang County, Wanyuan County and Jinyang County in Sichuan Province.** The Bank helped industrial development by supporting the expansion of production and strengthening of deep processing for key industry projects including Nanjiang Yellow Sheep, Jinyang Passion Fruit, Tongjiang Tremella Mushroom, and Wanyuan Tea. Also, the "Sci-Tech Courtyard" project was carried out to boost both output and quality. The Bank continued to implement the "Celebrating the Chinese New Year" and "Jinqiu Action" initiatives to encourage purchases of products from less

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# Corporate Governance, Environment and Society

developed areas, and supported the sale of agricultural products from the four counties on the Bank's iBonus Point Mall mobile banking and other online platforms. Representatives from central state-owned enterprises, local state-owned enterprises and private enterprises were organized to visit the counties receiving assistance. The Bank carried out the financial assistance events designed to unlock opportunities for cooperation among the local governments, banks and enterprises, injecting the power of ICBC into the county-area investment promotion and industrial development. For the grassroots officials, the Bank implemented the "ICBC Agricultural Talent Training Program" and provided training courses for targeted assistance. For the people lifted out of poverty, vocational training on Sichuan embroidery, planting and breeding were organized. The Bank stepped up efforts to ensure that people's basic living needs were met, and continued to carry out the "Sailing Project" that provided financial aid for financially disadvantaged students and the "Candlelight Program" that recognized outstanding rural teachers. It carried out renovation and upgrading projects for dormitories, canteens, sports fields, classroom desks and chairs in primary and secondary schools of the four counties, helping improve schooling conditions. Hospitals in the four counties were supported in purchasing medical equipment, and local township health centers were funded for expansion and upgrading, enhancing the accessibility and availability of basic medical services. Safe drinking water supply and road lighting projects were implemented to help improve the living environment.

## Consumer Protection

The Bank was committed to further building the "Greater Consumer Protection" framework. The Board of Directors and the Senior Management reviewed the special reports on consumer protection, held meetings of the Consumer Protection Committee, improved the policies for consumer protection management, suitability management and financial education, refined the horizontal and vertical assessment systems, and further strengthened the overall planning and collaborative resolution of consumer protection issues. The Bank earnestly implemented the latest regulatory policies including the Administrative Measures for the Agency Sales Business of Commercial Banks and the Administrative Measures for the Product Suitability of Financial Institutions, advanced the policy amendment, procedural streamlining and system upgrading across the board. The centralized follow-up visit reform for agency sales business was carried out, and a suitability monitoring platform for agency sales was built to effectively enhance the suitability management capacity. The Bank strictly performed its responsibility for protecting personal information, organized the "Enhanced Governance" special campaign for personal customer information security, and established and improved the personal information protection policies for key business lines. The Bank deeply explored the integration of artificial intelligence technology and consumer protection work, developed and launched the intelligent consumer protection platform, and launched the AI intelligent consumer protection assistant, increased the scenarios of consumer protection empowerment and risk prevention and control, transforming consumer protection management from "manual prevention" to "automatic + intelligent prevention". The typical case of system development won the "Topology Award for Outstanding Financial Institutions in Consumer Protection in 2025" by CLS.CN.

The Bank continued to combine intensive training and publicity events with regular ones. Focusing on consumers' concerns, the Bank explored new ways such as integrating into unique cultural elements and trendy elements, and held a series of innovative events including "March 15th Consumer Protection and Financial Education and Literacy Week & ICBC Sharing Station Volunteer Service", "Financial Education and Literacy Week", "Cherish the Time", "Live a New Life with ICBC Sharing Station", and "Cool Summer at ICBC Sharing Station". The Bank carried out more than 204.3 thousand sessions of financial education and literacy cumulatively in the year, reaching a total of over 1,119 million persons. Three of the Bank's cases were rated outstanding in the "Outstanding Cases of Financial Consumer Protection and Service Innovation in 2025" selected by the CFMC.

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The quality and efficiency of complaint traceability management were enhanced. The Bank endeavored to make improvements and develop solutions for key complaint issues vital to public interests and service experiences, sparing no effort to build a bank satisfactory to the people. The Bank fully implemented a tiered and categorized handling of customer feedback tickets. Customer claims were directed to the institutions familiar with policy information and able to solve problems as soon as possible. This approach effectively improved the quality and efficiency of complaint handling. The complaint handling mechanism was enhanced. The 95588 hotline was transformed into a customer feedback ticket processing center. The mechanisms for diversified resolution of financial disputes and emergency management of major customer complaints were refined, thereby further enhancing the complaint handling capabilities. Efforts were strengthened to combine complaint management with experience management and carry out the "Personal Customer Service Experience Enhancement" program, so as to enhance customer experience and reduce customer complaints from the source. The Bank was awarded the "Best Retail Banking Experience Award" by *The Asset*.

In 2025, the Bank received 206.5 thousand¹ complaints from individual customers. By type of business, the complaints were concentrated in business areas such as credit cards, personal loans, and debit cards. By region, the complaints were mainly concentrated in Guangdong, Hebei, Shandong, Jiangsu, Henan, Zhejiang, Beijing, Sichuan, Hubei, Anhui and other regions, and the complaints in the above regions accounted for 50.87% of all complaints. All relevant complaints have been properly handled.

¹ Individual customer complaints included complaints collected by the Bank, complaints transferred by the regulatory authorities and complaints "Forwarded via One Call Button" of the 12378 hotline to the Bank and complaints filed by customers through the "Financial Consumer Protection Service Platform" (WeChat Mini Program) of the NFRA. In addition, in order to more accurately reflect the actual situation of customer complaints, the number of individual customer complaints has excluded complaints related to the "Card Breaking Action" carried out to crack down on new types of illegal and criminal activities via telecommunications networks and repeated complaints.

## ESG Information Disclosure

The Bank has established a "Three-in-One" ESG information disclosure system consisting of annual sustainability report, ESG-related special report and regular information disclosure.

For details of the Bank's sustainable development, please refer to the 2025 Sustainability Report of Industrial and Commercial Bank of China Limited published by the Bank on the website of the SSE, the "HKEXnews" website of the HKEX, and the website of the Bank.

Below is the QR Code link of the 2025 Sustainability Report of Industrial and Commercial Bank of China Limited:

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# Report of the Board of Directors

## Principal Business

**Principal Business** The principal business of the Bank and its subsidiaries is the provision of banking and related financial services. Please refer to the section headed "Discussion and Analysis" for the business review of the Bank.

## Profit and Dividend Distribution

The profit and financial position of the Bank during the reporting period are presented in the Auditor's Report and Financial Report of this annual report of the Bank.

As approved at the Annual General Meeting for the Year 2024 held on 27 June 2025, the Bank has distributed 2024 year-end cash dividends for ordinary shares of about RMB58,664 million in total to the ordinary shareholders whose names appeared on the share register after the close of market on 11 July 2025, and, plus 2024 interim cash dividends for ordinary shares of about RMB51,109 million distributed, the Bank distributed cash dividend of RMB3.080 per ten shares (pre-tax) for the whole year of 2024, totaling about RMB109,773 million, to the ordinary shareholders.

As approved at the Second Extraordinary Shareholders' Meeting of 2025 held on 28 November 2025, the Bank has distributed 2025 interim cash dividends for ordinary shares of about RMB50,396 million in total, or RMB1.414 per ten shares (pre-tax) to the ordinary shareholders whose names appeared on the share register after the close of market on 12 December 2025.

The Board of Directors of the Bank proposed distributing 2025 year-end cash dividends for ordinary shares of RMB1.689 (pre-tax) for each ten shares of 356,406,257,089 ordinary shares, totaling about RMB60,197 million. The Bank will distribute cash dividends of about RMB110,593 million, or RMB3.103 per ten shares (pre-tax) for the whole year. The distribution plan will be submitted to the Shareholders' Meeting of the Bank for approval. Once approved, the 2025 year-end cash dividends for ordinary shares will be paid to the holders of A shares and H shares whose names appeared on the share register of the Bank after the close of market on 12 May 2026. The Bank will suspend the registration procedures of H share ownership transfer on 6 May 2026 (inclusive) through 12 May 2026 (inclusive). The holders of H shares of the Bank that desire to receive the proposed cash dividends but have not registered the ownership transfer documents are requested to hand over their ownership transfer documents together with the relevant share certificates to the Bank's H share registrar — Computershare Hong Kong Investor Services Limited that is located at Rooms 1712-1716, 17 Floor, Hopewell Center, 183 Queen's Road East, Wanchai, Hong Kong SAR, China no later than 4:30 p.m. on 5 May 2026. Pursuant to relevant regulatory requirements and operational rules, dividends on A shares and H shares will be paid on 13 May 2026 and 16 June 2026, respectively. The Bank's 2025 year-end cash dividends for ordinary shares are denominated and declared in RMB and paid in RMB or HKD equivalent, and the holders of H shares are provided with the option of dividend distribution in RMB. The holders of H shares have the right to choose to receive the year-end dividends of H shares in RMB or HKD in whole (HKSCC Nominees Limited may choose to receive the year-end dividends in whole or in part). The HKD exchange rate is the average of the reference exchange rates for RMB to HKD published daily at 11:00 a.m. by the China Foreign Exchange Trade System for the five business days prior to (but excluding) the dispatch date of the dividend currency election form by the Bank to holders of H shares.

For dividend-related tax and tax reduction, please refer to the announcements on dividend distribution of the Bank.

The Bank did not convert any capital reserve to share capital in the last three years. The table below sets out the cash dividend distribution of ordinary shares for the last three years:

| Item | 2025 | 2024 | 2023 |
| :--- | :--- | :--- | :--- |
| Dividend per ten shares (pre-tax, in RMB yuan) | 3.103 | 3.080 | 3.064 |
| Cash dividends (pre-tax, in RMB millions) | 110,593 | 109,773 | 109,203 |
| Percentage of cash dividends⁽¹⁾ (%) | 31.0 | 31.3 | 31.3 |

Note: (1) Calculated by dividing cash dividends on ordinary shares (pre-tax) by net profit attributable to ordinary shareholders of the parent company for the period.

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# Report of the Board of Directors

During the reporting period, the Bank thoroughly implemented the decisions and plans of the CPC Central Committee and the State Council, adhered to the principle of seeking progress while maintaining stability and promoting stability through progress, and advanced the "five transformations". It focused on its major responsibilities and core businesses, upheld integrity while fostering innovation, strengthened risk and compliance management, and drove high-quality development. (For details on the analysis of the Bank’s business operation, please refer to the section headed "Discussion and Analysis".) The Bank actively fulfilled its responsibilities as a major bank, committed to creating value for shareholders and serving investors, while maintaining a reasonable dividend payout ratio. (For details on the Bank's dividend distribution, please refer to the section headed "Report of the Board of Directors — Profit and Dividend Distribution".) Centering on investors, the Bank proactively deepened communication through regular results briefings, diversified investor relations activities and reverse roadshows, to foster greater understanding and recognition of the Bank among investors. The Bank continued to uphold the principles of truthfulness, accuracy, completeness, comparability, timeliness and fairness, and strictly complied with laws, regulations, and regulatory requirements on information disclosure to constantly strengthen transparency as a listed company and continuously improve investor protection.

For details on the distribution of dividends on preference shares, please refer to the section headed "Details of Changes in Share Capital and Shareholding of Substantial Shareholders — Preference Shares".

## Formulation and Implementation of Cash Dividend Policy

The Articles of Association of the Bank explicitly stipulates that the Bank’s profit distribution policy shall maintain its continuity and stability and meanwhile have regard to the long-term interest of the Bank, the overall interests of all shareholders and the sustainable development of the Bank. It emphasizes the priority to adopt cash dividend as the profit distribution method and provides that the Bank’s adjustment to the profit distribution policy shall be discussed by the Board of Directors as a special proposal and the grounds for adjustment shall be substantiated and proved in detail and presented in a written substantiating report for Independent Non-executive Directors to issue their opinions, and then the report will be submitted to the Shareholders’ Meeting for approval as a special resolution.

The formulation and implementation of the Bank’s cash dividend policy accords with the provisions stipulated in the Articles of Association and the requirements provided in the resolutions of the Shareholders’ Meeting, the dividend distribution standards and proportion are clear and explicit, and the decision-making procedure and mechanism are complete. Moreover, Independent Non-executive Directors had issued their opinions on it. Minority shareholders can fully express their opinions and appeals, to completely safeguard their legitimate rights.

## Implementation of the Valuation Enhancement Plan and Initiative for Special Action "Quality and Efficiency Improvement, and High Return"

In accordance with the relevant requirements of the CSRC’s Regulatory Guidelines for Listed Companies No. 10 — Market Value Management and the SSE’s initiative for special action "Quality and Efficiency Improvement, and High Return" to Shanghai-listed companies, the Board of Directors of the Bank formulated the Market Value Management Measures and the Plan for Valuation Enhancement, Quality and Efficiency Improvement, and High Return.

## Distributable Reserves

**Details of the distributable reserves** of the Bank as at 31 December 2025 are set out in "Note 40. to the Consolidated Financial Statements: Reserves" of this annual report.

## Financial Summary

**The summary of results, assets and liabilities** for the five years ended 31 December 2025 is set out in the section headed "Financial Highlights" of this annual report.

## Donations

**During the reporting period**, the Group made external donations of RMB143,125 thousand equivalent.

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# Report of the Board of Directors

## Debentures Issued
**Debentures Issued** During the reporting period, please refer to the section headed “Details of Changes in Share Capital and Shareholding of Substantial Shareholders — Details of Securities Issuance and Listing” for information on the debentures issued by the Bank.

## Subsidiaries
**Subsidiaries** Particulars of the Bank’s major subsidiaries as at 31 December 2025 are set out in the sections headed “Discussion and Analysis — Business Overview” and “Note 25. to the Consolidated Financial Statements: Investments in Subsidiaries” in this annual report.

## Share Capital and Public Float
Particulars on the share capital of the Bank for the year ended 31 December 2025 are set out in “Note 38. to the Consolidated Financial Statements: Share Capital”.

As at the latest practicable date before the disclosure date of the results, the Bank has maintained the minimum public float of 23.45%, based on the publicly available information and to the best knowledge of the Board of Directors of the Bank.

## Purchase, Sale and Redemption of Shares
During the reporting period, the Bank redeemed all of the USD2.9 billion preference shares issued in the offshore market in September 2020. For details on the redemption of the offshore USD preference shares, please refer to the section headed “Details of Changes in Share Capital and Shareholding of Substantial Shareholders — Preference Shares”.

During the reporting period, neither the Bank nor any of its subsidiaries purchased, sold or redeemed other listed shares (including sale of treasury shares) of the Bank. As at 31 December 2025, the Bank and its subsidiaries did not hold any treasury shares.

## Pre-emptive Rights
**Pre-emptive Rights** The Articles of Association of the Bank does not have any mandatory provision regarding pre-emptive rights. Pursuant to the Articles of Association, the Bank may increase its registered capital after obtaining approval of the Shareholders’ Meeting and of relevant authorities, by issuing shares through public or non-public offering, issuing bonus shares to the existing shareholders, converting capital reserve to share capital or using other methods as allowed by applicable laws and administrative regulations or approved by relevant authorities.

## Major Customers
**Major Customers** In 2025, the aggregate interest income and other operating income from top five customers of the Bank did not exceed 30% of the interest income and other operating income of the Bank for the year.

## Use of Proceeds from Fundraising Activities
All the funds raised from the Bank’s fundraising activities were used for the purposes as disclosed in the prospectuses, namely, strengthening the capital base to support the ongoing business growth of the Bank.

For future planning disclosed in the public disclosure documents such as previous offering prospectuses and fund raising prospectuses issued by the Bank which has continued during the reporting period, its implementation progress conformed to the planning as described after verification and analysis.

For details on the use of proceeds from the issuance of capital instruments and TLAC non-capital debt instruments of the Bank during the reporting period, please refer to the sections headed “Discussion and Analysis — Capital Management”.

## Equity-linked Agreement
**Equity-linked Agreement** The Bank had no equity-linked agreements required to be disclosed by the Hong Kong Listing Rules.

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# Report of the Board of Directors

## Management Contracts
During the reporting period, the Bank did not enter into or have any contract regarding the management and administration of the whole or any important business.

## Directors’ Interests in Transactions, Arrangements or Contracts of Significance
During the reporting period, none of the Directors of the Bank or their connected entities had any material interests, whether directly or indirectly, in any transaction, arrangement or contract of significance regarding the Bank’s business to which the Bank, its subsidiaries, its controlling shareholders or subsidiaries of its controlling shareholders was a party. None of the Directors of the Bank have entered into any service contract with the Bank, which is not determinable by the Bank within one year without payment of compensation (other than statutory compensation).

## Directors’ Interests in Competing Business
None of the Bank’s Directors held any interests in any business competes or competed or is or was likely to compete, either directly or indirectly, with the Bank.

## Directors’ Rights to Acquire Shares or Debentures
None of the Bank, its subsidiaries, its controlling shareholders or subsidiaries of its controlling shareholders entered into any agreement or arrangement enabling the Directors to acquire benefits by means of the acquisition of shares in or debentures of the Bank or any other body corporate.

## Interests in Shares, Underlying Shares, and Debentures Held by Directors
As at 31 December 2025, none of the Directors of the Bank had any interests or short positions in the shares, underlying shares or debentures of the Bank or any of its associated corporations (as defined in Part XV of the Securities and Futures Ordinance of Hong Kong) which have to be notified to the Bank and the SEHK under Divisions 7 and 8 of Part XV of the Securities and Futures Ordinance of Hong Kong (including interests or short positions therein that they shall be deemed to have pursuant to such provisions of the Securities and Futures Ordinance of Hong Kong), or any interests or short positions which have to be recorded in the register under Section 352 of the Securities and Futures Ordinance of Hong Kong, or any interests or short positions which have to be notified to the Bank and the SEHK pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Hong Kong Listing Rules.

## Related Party (Connected) Transactions
In 2025, the Bank carried out standardized management of the Group’s related party (connected) transactions in strict accordance with the regulations of the NFRA and the CSRC as well as listing rules in Shanghai and Hong Kong SAR. All related party (connected) transactions occurred complied with the disclosure exemptions under the Listing Rules of the Shanghai Stock Exchange and the Hong Kong Listing Rules. The disclosure exemptions abided by the provisions of the SSE for disclosure of related party transactions as well as the provisions of the SEHK for reporting and announcement of connected transactions.

In 2025, the related party transactions conducted by the Bank with its related parties as defined by the NFRA included both general related party transactions and transactions under unified transaction agreements. Among the general related party transactions, excluding those exempted from disclosure as related party transactions under Article 57 of the Measures for the Administration of Related Party Transactions of Banking and Insurance Institutions, the amount of credit related party transactions reached RMB3,425,276 million, asset-transfer related party transactions amounted to RMB219,689 million, service related party transactions totaled RMB7,558 million, and deposits and other types of related party transactions amounted to RMB4,562,698 million. Approved by the Board of Directors of the Bank, the Bank entered into unified transaction agreements with ICBC (Asia), ICBC Standard Bank, ICBC Wealth Management, and ICBC UBS Asset Management on 31 July 2025, and with ICBC Leasing and its two SPVs on 6 November 2025. As of 31 December 2025, the cumulative execution amount under these unified transaction agreements reached RMB259,710 million.

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# Report of the Board of Directors

As of 31 December 2025, the highest proportion of the Bank’s credit balance to a single related party to net capital was 2.23%, the highest proportion of the total credit balance to a group customer of a related legal person or non-legal person organization to net capital was 2.34%, and the proportion of the credit balance to all related parties to net capital was 14.95%. All these proportions complied with regulatory requirements.

Please refer to "Note 48. to the Consolidated Financial Statements: Related Party Disclosures" for details of the related party transactions defined under the laws, regulations and accounting standards of China.

## Liability Insurance of Directors and Senior Management Members

Pursuant to the Articles of Association of the Bank, when the condition permits, with the prior approval of the shareholders’ meeting, the Bank may set up the system of professional liability insurance for Directors and Senior Management members. Unless Directors and Senior Management members are proved that they fail to act honestly or in good faith when performing their respective duties, the Bank shall use its own asset, within the scope allowed by laws and administrative regulations, or within the scope which is not prohibited by laws and administrative regulations, to compensate Directors and Senior Management members for any liabilities incurred in the performance of their duties. During the reporting period, the Bank purchased liability insurance for Directors and Senior Management members.

## Relations among Directors and Senior Management

Directors and Senior Management members of the Bank are not related to one another with respect to finance, business, family, or other material relationships which are required to be disclosed.

## Remuneration Policy for Directors and Senior Management

The Bank has clearly documented the remuneration policy for Directors and Senior Management members, and has continuously improved their performance assessment system and incentive restriction mechanism. From the perspectives of creating economic benefit, serving the real economy and fulfilling social responsibilities, as well as preventing and controlling financial risks, the Bank adopted a system composed of the Bank’s overall operation and management based indicators for the Management and duties allocation based indicators for individuals. The remuneration to the Chairman of the Board of Directors, the President and Senior Executive Vice Presidents has followed the State’s policies relating to the remuneration reform on executives of central enterprises, which consists of basic annual remuneration, performance-based remuneration and incentive income linked to term appraisal. The remuneration to other Senior Management members consists of basic annual remuneration and performance-based remuneration, and part of performance-based remuneration is paid in a deferred manner. The Bank has contributed to statutory retirement programs organized by Chinese governmental organizations at different levels for Directors and Senior Management members concurrently as the employees of the Bank. Upon obtaining all applicable approvals, the Bank will implement a long-term incentive program. As at 31 December 2025, the Bank had not granted any share appreciation rights to any Director, Senior Management member, or other core business personnel designated by the Board of Directors.

## Members of the Board of Directors

As at the disclosure date of the results, the composition of the Board of Directors of the Bank is as follows:

- **Executive Directors:** Mr. Liao Lin, Mr. Liu Jun, Mr. Duan Hongtao and Mr. Wang Jingwu;
- **Non-executive Directors:** Ms. Cao Liqun, Mr. Dong Yang and Ms. Zhong Mantao;
- **Independent Non-executive Directors:** Mr. Norman Chan Tak Lam, Mr. Herbert Walter, Mr. Murray Horn, Mr. Chen Guanting, Mr. Li Weiping and Mr. Lee Kam Hung Lawrence.

Industrial and Commercial Bank of China Limited
Board of Directors

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# Significant Events

## Material Lawsuits or Arbitration Cases
**During the reporting period, the Bank incurred no material lawsuits or arbitration cases.** It was involved in several legal lawsuits and arbitration in its ordinary course of business. Most of these cases were initiated by the Bank to recover non-performing loans, while some were related to disputes with clients. As at 31 December 2025, the amount of cases pending judgments or arbitrations awards in which the Bank and/or its subsidiaries are defendants totaled RMB7,183 million, and the Bank does not expect any material adverse effect from the above-mentioned cases on the Bank’s business, financial position or operating results.

## Material Assets Acquisition, Sale and Merger
**During the reporting period, the Bank did not engage in any material assets acquisition, sale or merger** that would be recognized as such in accordance with the relevant laws and regulations, including the listing rules in the Bank’s places of listing.

## Credit Standing
**During the reporting period, neither the Bank nor its controlling shareholders had ever failed to fulfil obligations provided in effective legal documents issued by court for material lawsuits, nor had there been any outstanding debt of a significant amount.**

## Implementation of Share Incentive Plan and Employee Stock Ownership Plan during the Reporting Period
**During the reporting period, the Bank did not implement any share incentive plan or any employee stock ownership plan.**

## Key Audit Matters
**The Audit Committee has reviewed the key audit matters in the audit report** and concluded that it is unnecessary to provide a supplementary explanation.

## Material Related Party Transactions
**During the reporting period, the Bank did not enter into any material related party transactions.**

Please refer to “Note 48. to the Consolidated Financial Statements: Related Party Disclosures” for details of the related party transactions defined under the laws and regulations of China and the relevant accounting standards.

## Material Contracts and Performance of Obligations thereunder
**Material Trust, Sub-contract and Lease** During the reporting period, the Bank had not held on trust to a material extent or entered into any material sub-contract or lease arrangement in respect of assets of other corporations, which were subject to disclosure, and no other corporation had held on trust to a material extent or entered into any material sub-contract or lease arrangement in respect of the Bank’s assets, which were subject to disclosure.

**Material Guarantees** The provision of guarantees is in the ordinary course of business of the Bank. During the reporting period, the Bank did not have any material guarantee that needs to be disclosed except for the financial guarantee services within the business scope as approved by regulatory authorities.

**Other Material Contracts** During the reporting period, the Bank did not have any other material contracts which were subject to disclosure.

## External Guarantees
**During the reporting period, the Bank did not enter any guarantee contract against the resolution procedures for external guarantees that are prescribed by laws, administrative regulations or the CSRC.**

## Occupation of Fund by Controlling Shareholders and Other Related Parties
**During the reporting period, none of the controlling shareholders and other related parties of the Bank occupied any fund of the Bank.** The auditors have issued the Special Explanation on the Occupation of Fund by Controlling Shareholders and Other Related Parties of Industrial and Commercial Bank of China Limited in 2025.

---

# Significant Events

## Commitments

As at 31 December 2025, all of the continuing commitments made by the shareholders were properly fulfilled and were listed as follows:

| Shareholder | Type of commitment | Time and term of commitment | Legal document under which the commitment is made | Commitment | Fulfillment of commitment |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Huijin | Commitment of non-competition | October 2006/No specific term; November 2010/No specific term | Prospectus of Industrial and Commercial Bank of China Limited on Initial Public Offering (A Share); Prospectus on A Share Rights Issue of Industrial and Commercial Bank of China Limited | Provided that Huijin continues to hold any share of the Bank or is deemed as the controlling shareholder of the Bank or the related party of the controlling shareholder of the Bank according to the laws or listing rules of China or the listing place of the Bank, Huijin will not engage in or participate in any competitive commercial banking business including but not limited to granting loans, attracting deposits and providing settlement, fund custody, bank card and money exchange services. However, Huijin can engage in or participate in some competitive businesses by investing in other commercial banks. In this regard, Huijin has committed that it will: (1) fairly treat the investments in commercial banks and will not make any decision or judgment that will have adverse impact on the Bank or be beneficial to other commercial banks by taking advantage of the status of being a shareholder of the Bank or information obtained by taking advantage of the status of being a shareholder of the Bank; and (2) perform the shareholders’ rights for the maximum interests of the Bank. | As at 31 December 2025, Huijin strictly fulfilled the above commitment and did not do anything in violation of the commitment. |

---

# Significant Events

## Co-Investment and Cooperation with Specialized Investors

**Participation in Investing in China Integrated Circuit Industry Investment Fund Phase III Co., Ltd.** In January 2024, the Bank signed the Promoters’ Agreement of China Integrated Circuit Industry Investment Fund Phase III Co., Ltd. The Bank intends to invest RMB21.5 billion in China Integrated Circuit Industry Investment Fund Phase III Co., Ltd. The investment has been approved by the NFRA. China Integrated Circuit Industry Investment Fund Phase III Co., Ltd. was officially established on 24 May 2024. The Bank paid the subscriptions of RMB1,182.5 million and RMB1,397.5 million in July and December 2025, respectively. The Bank had paid the subscriptions of RMB3,655 million in total.

**Participation in Investing in National Green Development Fund Co., Ltd.** In July 2020, the Bank signed the Promoter’s Agreement of the National Green Development Fund Co., Ltd., planning to contribute RMB8.0 billion to participate in investing in National Green Development Fund Co., Ltd. This investment was approved by the former CBIRC. National Green Development Fund Co., Ltd. was officially established on 14 July 2020. In June 2025, the Bank completed the third contribution of RMB2.0 billion. The paid-in amount of contribution totaled RMB4.8 billion cumulatively.

## Disciplinary Actions

During the reporting period, the Bank was not subject to any case filing investigation for suspected crime, nor was any of its controlling shareholders, Directors and Senior Management members subject to coercive measures for suspected crime; neither the Bank nor its controlling shareholders, Directors and Senior Management members were subject to any criminal penalty or any case filing investigation by the CSRC for suspected illegality or irregularity or administrative penalty by the CSRC or material administrative penalty by other competent authority; none of its controlling shareholders, Directors and Senior Management members was held in retention by the disciplinary inspection and supervision organ because of suspected serious illegality or irregularity or work-related crime, which affected their duty performance; none of its Directors and Senior Management members was subject to coercive measures taken by other competent authority for suspected illegality or irregularity, which affected their duty performance; neither the Bank nor any of its controlling shareholders, Directors and Senior Management members was subject to any administrative or regulatory measures taken by the CSRC or disciplinary sanction imposed by stock exchanges.

---

# Organizational Chart

## Shareholders' Meeting

## Board of Directors

### Committees under Board of Directors
- Strategy Committee
- Compensation Committee
- Corporate Social Responsibility and Consumer Protection Committee
- Related Party Transactions Control Committee
- Risk Management Committee
- Audit Committee
- Nomination Committee
- US Risk Committee

## Board of Directors' Office
- Internal Audit Sub-Bureau
- Internal Audit Bureau

## Senior Management

### Committees under Senior Management
- Asset and Liability Management Committee ("Five Priorities" Committee)
- Risk Management and Internal Control Committee
- Personal Banking Committee (Consumer Protection Committee)
- Corporate Banking Committee (Inclusive Finance Committee)
- Institutional Banking Committee (Pension Finance Committee)
- Financial Market Committee
- International Operation & Management Committee
- Digital Finance & Fintech Committee

### Internal Departments and Directly Managed Institutions of the Head Office
- Executive Office
- Corporate Banking Department
- Personal Banking Department (Consumer Protection Office)
- Institutional Banking Department
- Inclusive Finance Department (Rural Revitalization Office)
- Settlement & Cash Management Department
- Internet Finance Department
- Credit and Investment Management Department
- Credit Approval Department
- Risk Management Department
- Internal Control & Compliance Department
- Legal Affairs Department
- Finance & Accounting Department
- Human Resources Department
- Asset & Liability Management Department
- Corporate Strategy and Investor Relations Department
- International Banking Department
- Financial Technology Department
- Operation Management Department
- Data Management Department
- Corporate Culture Department
- Party-related Affairs Department
- Modern Finance Research Institute
- Inspection Office of the Party Committee
- Security Department
- Retired Staff Service and Management Department
- Staff Union Office
- Global Market Department
- Asset Management Department
- Asset Custody Department
- Investment Banking Department
- Special Financing Department (Banking Department)
- Pension Finance Department
- Personal Credit Business Department
- Bank Card Department (ICBC Peony Card Center)
- Precious Metal Business Department
- ICBC Bills Discounting Department
- Private Banking Department
- Changchun Institute of Financial Managers
- Hangzhou Institute of Financial Managers
- Business Research & Development Center
- Data Center
- Software Development Center

### Domestic Institutions

#### Domestic Branches
- Tier-one Branches (including Directly Managed Branches) (37)
- Tier-two Branches (463)
- Grassroots Branches (15,179)

#### Domestic Subsidiaries and Their Branches
- ICBC Leasing
- ICBC UBS Asset Management
- ICBC-AXA
- ICBC Investment
- ICBC Wealth Management
- Rural Bank
- Bank of Jinzhou

### Overseas Institutions
- Overseas Branches and Their Institutions (53)
- Overseas Subsidiaries and Their Institutions (357)

Note: The above chart shows the organizational chart of the Bank as at the end of 2025.

---

# Auditor's Report and Financial Report

---

# Contents

| Item | Pages |
|:---|:---|
| **INDEPENDENT AUDITOR'S REPORT** | 151 |
| **AUDITED FINANCIAL STATEMENTS** | |
| **Consolidated:** | |
| Statement of Profit or Loss | 159 |
| Statement of Profit or Loss and Other Comprehensive Income | 160 |
| Statement of Financial Position | 161 |
| Statement of Changes in Equity | 163 |
| Statement of Cash Flows | 165 |
| **NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS** | |
| 1. Corporate Information | 167 |
| 2. Basis of Preparation | 167 |
| 3. New and Amendments to IFRS Accounting Standards | 168 |
| 4. Summary of Material Accounting Policy Information | 169 |
| 5. Significant Accounting Judgements and Estimates | 188 |
| 6. Net Interest Income | 189 |
| 7. Net Fee and Commission Income | 190 |
| 8. Net Trading Income | 190 |
| 9. Net Gains on Financial Investments | 190 |
| 10. Other Operating Income/(Expense), Net | 191 |
| 11. Operating Expenses | 191 |
| 12. Directors’ and Supervisors’ Remuneration | 192 |
| 13. Five Highest Paid Individuals | 196 |
| 14. Credit Impairment Losses | 196 |
| 15. Income Tax Expense | 197 |
| 16. Profit Attributable To Equity Holders of the Parent Company | 197 |
| 17. Dividends | 198 |
| 18. Earnings Per Share | 198 |
| 19. Cash and Balances With Central Banks | 199 |
| 20. Due From Banks and Other Financial Institutions | 199 |
| 21. Derivative Financial Instruments | 200 |
| 22. Reverse Repurchase Agreements | 203 |
| 23. Loans and Advances to Customers | 204 |
| 24. Financial Investments | 206 |
| 25. Investments In Subsidiaries | 211 |
| 26. Investments in Associates and Joint Ventures | 213 |
| 27. Property and Equipment | 214 |
| 28. Deferred Tax Assets and Liabilities | 215 |
| 29. Other Assets | 217 |
| 30. Impairment Allowance | 219 |
| 31. Due to Banks and Other Financial Institutions | 220 |
| 32. Financial Liabilities Measured at Fair Value through Profit or Loss | 221 |
| 33. Repurchase Agreements | 221 |
| 34. Certificates of Deposit | 221 |
| 35. Due to Customers | 222 |
| 36. Debt Securities Issued | 222 |
| 37. Other Liabilities | 225 |
| 38. Share Capital | 226 |
| 39. Other Equity Instruments | 227 |
| 40. Reserves | 232 |
| 41. Other Comprehensive Income | 233 |
| 42. Cash and Cash Equivalents | 234 |
| 43. Interests in Structured Entities | 235 |
| 44. Transferred Financial Assets | 236 |
| 45. Assets Pledged as Security | 237 |
| 46. Share Appreciation Rights Plan | 237 |
| 47. Commitments and Contingent Liabilities | 238 |
| 48. Related Party Disclosures | 240 |
| 49. Segment Information | 246 |
| 50. Financial Risk Management | 251 |
| 51. Fair Value of Financial Instruments | 275 |
| 52. Statement of Financial Position and Statement of Changes in Equity of the Bank | 281 |
| 53. Events after the Reporting Period | 283 |
| 54. Comparative Figures | 283 |
| 55. Approval of the Consolidated Financial Statements | 283 |
| **UNAUDITED SUPPLEMENTARY INFORMATION TO THE CONSOLIDATED FINANCIAL STATEMENTS** | 284 |

---

# Independent Auditor's Report

**To the shareholders of Industrial and Commercial Bank of China Limited:**
(Incorporated in the People’s Republic of China with limited liability)

## Opinion

We have audited the consolidated financial statements of Industrial and Commercial Bank of China Limited (the “Bank”) and its subsidiaries (collectively referred to as the “Group”) set out on pages 159 to 283, which comprise the consolidated statement of financial position as at 31 December 2025, and the consolidated statement of profit or loss, the consolidated statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including material accounting policy information.

In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2025, and of its consolidated financial performance and cash flows for the year then ended in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (“IASB”) and have been properly prepared in compliance with the disclosure requirements of the Hong Kong Companies Ordinance.

## Basis for opinion

We conducted our audit in accordance with the International Standards on Auditing (“ISAs”) as issued by the International Auditing and Assurance Standards Board (IAASB). Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Code of Ethics for Professional Accountants (the “Code”) as issued by Hong Kong Institute of Certified Public Accountants (“HKICPA”), as applicable to audits of financial statements of public interest entities. We have also fulfilled our other ethical responsibilities in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

## Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the consolidated financial statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the consolidated financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying consolidated financial statements.

---

# Independent Auditor’s Report

## Key audit matters (continued)

| Key audit matter | How our audit addressed the key audit matter |
| :--- | :--- |
| **Allowance for impairment losses on loans and advances to customers measured at amortised cost** | |
| Significant judgments and assumptions are involved in the measurement of allowance for impairment losses on loans and advances to customers measured at amortised cost, for example:<br><br>- **Significant increase in credit risk** - Criteria for determining whether significant increase in credit risk has occurred are highly judgmental and may have a significant impact on the expected credit losses for loans and advances to customers measured at amortised cost with a longer outstanding maturities;<br><br>- **Models and parameters** - Complex models, numerous parameters and inputs, including probability of default, loss given default, exposure at default, and risk grouping, are used to measure expected credit losses, involving plenty of management judgments and assumptions;<br><br>- **Forward-looking information** - Macroeconomic forecasts are developed, and impacts on expected credit losses are considered for multiple probability-weighted macroeconomic scenarios;<br><br>- **Whether financial assets are credit-impaired** - The determination of credit impairment requires consideration of multiple factors, and measurement of expected credit losses depends on estimates of future cash flows. | We evaluated and tested the design and operating effectiveness of key controls over credit granting, post approval credit management, loan credit rating system, collateral management as well as management, implementation and monitoring of expected credit losses approach, including:<br><br>- With the support of our IT audit experts, we evaluated and tested the data and processes used to determine expected credit losses, including loan business data, internal credit rating data, macroeconomic data, as well as the computational logic, inputs and system interfaces of the impairment assessment system;<br><br>- We evaluated and tested related internal controls over the management, implementation and monitoring of expected credit losses approach, including approval of management system, important policies, important models, key parameters and their adjustments, ongoing monitoring of model performance, model validation, monitoring and parameter calibration.<br><br>We adopted a risk-based sampling approach in our loan review procedures, focusing on loans granted to industries affected by macroeconomic changes and to real estate enterprises with bond defaults and negative news coverage. We assessed the debtors’ repayment capacity and evaluated the Group’s judgment in rating loans, taking into consideration post-lending inspection reports, debtors’ financial information, collateral valuation reports and other available information. |

---

# Independent Auditor’s Report

## Key audit matters (continued)

| Key audit matter | How our audit addressed the key audit matter |
| :--- | :--- |
| **Allowance for impairment losses on loans and advances to customers measured at amortised cost (continued)** | |
| As at 31 December 2025, the Group’s balance of loans and advances to customers measured at amortised cost was RMB27,901,331 million, and the related impairment provision was RMB851,750 million. As the measurement of expected credit losses involves many significant judgments and assumptions, we consider expected credit losses for loans and advances to customers measured at amortised cost a key audit matter.<br><br>Refer to Note 4 (10), Note 5, Note 14, Note 23.1, Note 23.2(a) and Note 50(a) to the consolidated financial statements for relevant disclosures. | With the support of our modelling experts, we evaluated and tested the expected credit loss model methodology, key parameters, and management’s significant judgments and assumptions, mainly focusing on the following aspects:<br><br>- Taking into account macroeconomic changes, industry risk factors, and results of validation, reassessment and update of ECL model, we assessed the reasonableness of ECL model methodology and related parameters, including probability of default, loss given default, exposure at default, risk grouping, and whether there had been a significant increase in credit risk;<br>- We assessed the forward-looking information used by management to determine expected credit losses, including the forecasts of macroeconomic variables and the assumptions and weightings of multiple macroeconomic scenarios;<br>- We performed back-testing on a sampling basis and assessed the reasonableness of management’s determination of credit impairment. For credit-impaired loans and advances, we analysed the amount, timing and probability of management’s estimated future cash flows on a sampling basis, especially recoverable cash flows from collaterals.<br><br>We inspected and assessed the appropriateness of disclosures of expected credit losses in the financial statements. |

---

# Independent Auditor's Report

## Key audit matters (continued)

| Key audit matter | How our audit addressed the key audit matter |
| :--- | :--- |
| **Consolidation of structured entities** | |
| Structured entities mainly include wealth management products, investment funds, trust plans, asset management plans and asset-backed securities in which the Group has interests in them through their initiation, management or investment. The Group needs to comprehensively consider the power it possesses, its exposure to variable returns, and its ability to use its power to affect returns to determine whether it has control over such structured entities, and therefore whether it should include them in the scope of consolidation.<br><br>The assessment of the Group’s control over structured entities involves significant judgements on factors such as the purpose and design of structured entities, the Group’s ability to direct relevant activities, direct and indirect beneficial interests and returns, performance fees, and benefits received or losses incurred from providing credit enhancement or liquidity support. Comprehensive analysis of these factors and concluding on whether the Group has control involve significant management judgements. In view of the materiality and the complexity of management judgements, we consider consolidation assessment of structured entities a key audit matter.<br><br>Refer to Note 4(2), Note 5 and Note 43 to the consolidated financial statements for relevant disclosures. | We evaluated and tested the design and operating effectiveness of key internal controls over the Group’s assessment of whether it consolidates a structured entity.<br><br>We assessed the reasonableness of the Group’s analysis and judgment of consolidation of structured entities through the following procedures:<br><br>- We inspected the relevant contractual documents and checked the Group’s analysis on its power over these structured entities on the basis of comprehensive consideration of all relevant facts and circumstances;<br>- We checked the Group’s analysis of the magnitude and variability of the variable returns received from the structured entity and the extent to which variable returns are influenced through the Group’s power and other available information, which included examining whether the Group has legal or constructive obligations to ultimately absorb losses from structured entities, whether the Group has provided liquidity support or credit enhancement to structured entities initiated by itself, such as wealth management products, on a sampling basis.<br><br>We checked and assessed the appropriateness of the financial statement disclosures in relation to the consolidation of structured entities. |

---

# Independent Auditor's Report

## Key audit matters (continued)

| Key audit matter | How our audit addressed the key audit matter |
| :--- | :--- |
| **Fair value of financial instruments** <br><br> The valuation of the Group's financial instruments measured at fair value is based on readily available market data or valuation models. For financial instruments without readily available market data such as debt securities, equities, over-the-counter derivative contracts and structured deposits, fair values are measured based on valuation techniques. The selection of valuation techniques and significant unobservable input data requires significant accounting judgement and estimation by management. <br><br> As at 31 December 2025, the Group's financial assets that were measured at fair value amounted to RMB7,578,309 million, representing 14.17% of total assets; financial liabilities that were measured at fair value amounted to RMB495,529 million, representing 1.01% of total liabilities. Level 3 financial assets and liabilities with significant unobservable input data amounted to RMB267,171 million and RMB1,598 million respectively. <br><br> Given the materiality of the financial instruments' balance measured at fair value and the significant judgements and assumptions involved in fair value measurement of Level 3 financial instruments, we consider valuation of financial instruments a key audit matter. <br><br> Refer to Note 4(7), Note 5, Note 21, Note 22, Note 23, Note 24, Note 32, Note 33 and Note 51 to the consolidated financial statements for relevant disclosures. | We evaluated and tested the design and operating effectiveness of key internal controls related to the valuation of financial instruments, including independent price verification, and independent model validation and approval. <br><br> We evaluated the valuation techniques, inputs and assumptions through comparison with the valuation techniques commonly used in the markets, validation of observable inputs using external market data, and comparison with valuation outcomes obtained from various pricing sources on a sampling basis. <br><br> For valuations which used significant unobservable inputs, such as unlisted equity investments and private equity fund investments, we involved our internal valuation specialists in assessing the models used, re-performing independent valuations on a sampling basis, and analysing the sensitivities of valuation results to key inputs and assumptions. <br><br> We checked and assessed the appropriateness of the financial statement disclosures in relation to the fair value of instruments. |

---

# Independent Auditor's Report

## Key audit matters (continued)

| Key audit matter | How our audit addressed the key audit matter |
| :--- | :--- |
| **_IT systems and control related to financial reporting_** | |
| As a large commercial banking group, the Group operates highly complex IT systems.<br><br>The accuracy of the Group’s financial reporting relies on IT systems, along with the effective design and operation of IT general control and IT automated control over these systems. Specifically, IT general control includes IT governance, control over system development and program changes, access control over programs and data, and IT operations; while IT automated control includes edit checks, matching verifications, system-driven calculations, system interfaces, and access authorizations related to significant accounts. Such control primarily applies to the processes of key businesses such as corporate banking, personal banking, asset management services and financial market.<br><br>With the rapid growth of the Group’s online transaction volume, as well as the continuous advancement and application of new technologies that increases third-party network access, the Group faces escalating challenges in cybersecurity and data protection, which impacts the IT systems that are integral to financial reporting.<br><br>Given that the Group’s financial accounting and reporting remain heavily reliant on these IT systems and control, we consider IT systems and control related to financial reporting as a key audit matter. | With the support of our IT audit experts, we performed audit procedures in respect of IT systems and control related to financial reporting through the following procedures:<br><br>- Evaluated and tested the design and operating effectiveness of key internal control over the IT systems related to financial reporting;<br>- Evaluated and tested the design and operating effectiveness of automated control related to significant accounts and assertions or risk of material misstatement;<br>- Evaluated and tested the design and operating effectiveness of control related to cybersecurity management, operational security of critical infrastructure, data and customer information management, and system operation monitoring and emergency management;<br>- Evaluated and tested the design and operating effectiveness of control related to intrusion prevention management, antivirus and malware management, patch management, data encryption management, data backup management, as well as the monitoring and handling of information security incidents. |

---

# Independent Auditor’s Report

## Other information included in the Annual Report

The directors of the Bank are responsible for the other information. The other information comprises the information included in the Annual Report, other than the consolidated financial statements and our auditor’s report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

## Responsibilities of the directors for the consolidated financial statements

The directors of the Bank are responsible for the preparation of the consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as issued by the IASB and the disclosure requirements of the Hong Kong Companies Ordinance, and for such internal control as the directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the directors of the Bank are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors of the Bank either intend to liquidate the Group or to cease operations or have no realistic alternative but to do so.

The directors of the Bank are assisted by the Audit Committee in discharging their responsibilities for overseeing the Group’s financial reporting process.

## Auditor’s responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Our report is made solely to you, as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

---

# Independent Auditor’s Report

## Auditor’s responsibilities for the audit of the consolidated financial statements (continued)

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
- Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for the purposes of the group audit. We remain solely responsible for our audit opinion.

We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding independence and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with the Audit Committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditor’s report is *Cheong Ming Yik, Hoffman (practising certificate number: P04626).*

**Ernst & Young**
Certified Public Accountants
Hong Kong
27 March 2026

---

# Consolidated Statement of Profit or Loss

For the year ended 31 December 2025
(In RMB millions, unless otherwise stated)

| | Notes | 2025 | 2024 |
| :--- | :---: | :---: | :---: |
| Interest income | | 1,331,831 | 1,427,948 |
| Interest expense | | (696,705) | (790,543) |
| **NET INTEREST INCOME** | 6 | 635,126 | 637,405 |
| Fee and commission income | | 126,722 | 126,177 |
| Fee and commission expense | | (15,551) | (16,780) |
| **NET FEE AND COMMISSION INCOME** | 7 | 111,171 | 109,397 |
| Net trading income | 8 | 18,510 | 19,440 |
| Net gains on financial investments | 9 | 34,806 | 22,961 |
| Other operating income/(expense), net | 10 | 1,782 | (3,077) |
| **OPERATING INCOME** | | 801,395 | 786,126 |
| Operating expenses | 11 | (246,874) | (242,155) |
| Credit impairment losses | 14 | (132,973) | (125,739) |
| Impairment losses on other assets | | (1,887) | (924) |
| **OPERATING PROFIT** | | 419,661 | 417,308 |
| Share of results of associates and joint ventures | | 4,774 | 4,519 |
| **PROFIT BEFORE TAXATION** | | 424,435 | 421,827 |
| Income tax expense | 15 | (53,669) | (54,881) |
| **PROFIT FOR THE YEAR** | | 370,766 | 366,946 |
| Profit for the year attributable to: | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity holders of the parent company | | 368,562 | 365,863 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-controlling interests | | 2,204 | 1,083 |
| **PROFIT FOR THE YEAR** | | 370,766 | 366,946 |
| **EARNINGS PER SHARE** | 18 | | |
| &nbsp;&nbsp;&nbsp;&nbsp;– Basic (RMB yuan) | | 1.00 | 0.98 |
| &nbsp;&nbsp;&nbsp;&nbsp;– Diluted (RMB yuan) | | 1.00 | 0.98 |

The accompanying notes form part of these consolidated financial statements.

---

# Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the year ended 31 December 2025
(In RMB millions, unless otherwise stated)

| | Notes | 2025 | 2024 |
| :--- | :---: | :---: | :---: |
| **Profit for the year** | | 370,766 | 366,946 |
| **Other comprehensive income (after tax, net):** | 41 | | |
| (a) Items that will not be reclassified to profit or loss: | | | |
| (i) Changes in fair value of equity instruments designated as at fair value through other comprehensive income | | 1,432 | 3,769 |
| (ii) Other comprehensive income recognised under the equity method | | 0 | 43 |
| (iii) Others | | 16 | 24 |
| (b) Items that may be reclassified subsequently to profit or loss: | | | |
| (i) Changes in fair value of debt instruments measured at fair value through other comprehensive income | | (27,818) | 54,514 |
| (ii) Credit losses of debt instruments measured at fair value through other comprehensive income | | (142) | (269) |
| (iii) Cash flow hedging reserve | | 775 | (1,332) |
| (iv) Other comprehensive income recognised under the equity method | | (346) | (58) |
| (v) Foreign currency translation reserve | | (8,615) | 9,744 |
| (vi) Others | | 4,310 | (15,246) |
| **Subtotal of other comprehensive income for the year** | | (30,388) | 51,189 |
| **Total comprehensive income for the year** | | 340,378 | 418,135 |
| **Total comprehensive income for the year attributable to:** | | | |
| Equity holders of the parent company | | 339,186 | 418,252 |
| Non-controlling interests | | 1,192 | (117) |
| **Total comprehensive income for the year** | | 340,378 | 418,135 |

The accompanying notes form part of these consolidated financial statements.

---

# Consolidated Statement of Financial Position

As at 31 December 2025
(In RMB millions, unless otherwise stated)

| ASSETS | Notes | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: | :---: |
| Cash and balances with central banks | 19 | 3,674,558 | 3,322,911 |
| Due from banks and other financial institutions | 20 | 1,264,019 | 1,219,876 |
| Derivative financial assets | 21 | 130,414 | 222,361 |
| Reverse repurchase agreements | 22 | 530,737 | 1,210,217 |
| Loans and advances to customers | 23 | 29,712,359 | 27,613,781 |
| Financial investments | 24 | 16,907,415 | 14,153,576 |
| - Financial investments measured at fair value through profit or loss | | 943,953 | 1,010,439 |
| - Financial investments measured at fair value through other comprehensive income | | 3,823,279 | 3,291,152 |
| - Financial investments measured at amortised cost | | 12,140,183 | 9,851,985 |
| Investments in associates and joint ventures | 26 | 78,313 | 73,357 |
| Property and equipment | 27 | 293,836 | 302,387 |
| Deferred tax assets | 28 | 104,289 | 90,047 |
| Other assets | 29 | 781,833 | 613,233 |
| **TOTAL ASSETS** | | **53,477,773** | **48,821,746**

The accompanying notes form part of these consolidated financial statements.

---

# Consolidated Statement of Financial Position
As at 31 December 2025
(In RMB millions, unless otherwise stated)

| | Notes | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- | :--- |
| **LIABILITIES** | | | |
| Due to central banks | | 176,793 | 169,622 |
| Due to banks and other financial institutions | 31 | 5,103,247 | 4,590,965 |
| Financial liabilities measured at fair value through profit or loss | 32 | 150,196 | 76,056 |
| Derivative financial liabilities | 21 | 134,082 | 197,795 |
| Repurchase agreements | 33 | 2,536,376 | 1,523,555 |
| Certificates of deposit | 34 | 502,593 | 445,419 |
| Due to customers | 35 | 37,311,778 | 34,836,973 |
| Income tax payable | | 23,374 | 31,880 |
| Debt securities issued | 36 | 2,216,807 | 2,028,722 |
| Deferred tax liabilities | 28 | 6,551 | 4,278 |
| Other liabilities | 37 | 1,043,952 | 929,215 |
| **TOTAL LIABILITIES** | | **49,205,749** | **44,834,480** |
| **EQUITY** | | | |
| Equity attributable to equity holders of the parent company | | | |
| Share capital | 38 | 356,407 | 356,407 |
| Other equity instruments | 39 | 384,657 | 324,344 |
| - Preference shares | | 114,927 | 134,614 |
| - Perpetual bonds | | 269,730 | 189,730 |
| Reserves | 40 | 1,323,043 | 1,275,004 |
| Retained profits | | 2,180,152 | 2,014,086 |
| | | 4,244,259 | 3,969,841 |
| Non-controlling interests | | 27,765 | 17,425 |
| **TOTAL EQUITY** | | **4,272,024** | **3,987,266** |
| **TOTAL EQUITY AND LIABILITIES** | | **53,477,773** | **48,821,746** |

**Liao Lin**
Chairman

**Liu Jun**
Vice Chairman and President

**Xu Zhisheng**
Person in charge of Finance and Accounting Department

The accompanying notes form part of these consolidated financial statements.

---

# Consolidated Statement of Changes in Equity

For the year ended 31 December 2025
(In RMB millions, unless otherwise stated)

| | Attributable to equity holders of the parent company | | | | | | | | | | | | | |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| | | | | | **Reserves** | | | | | | | | | |
| | **Share capital** | **Other equity instruments** | **Capital reserve** | **Surplus reserve** | **General reserve** | **Investment revaluation reserve** | **Foreign currency translation reserve** | **Cash flow hedging reserve** | **Other reserves** | **Subtotal** | **Retained profits** | **Total** | **Non-controlling interests** | **Total equity** |
| Balance as at 1 January 2025 | 356,407 | 324,344 | 148,234 | 464,365 | 614,816 | 76,965 | (6,092) | (4,181) | (19,103) | 1,275,004 | 2,014,086 | 3,969,841 | 17,425 | 3,987,266 |
| Profit for the year | - | - | - | - | - | - | - | - | - | - | 368,562 | 368,562 | 2,204 | 370,766 |
| Other comprehensive income | - | - | - | - | - | (24,500) | (8,203) | 739 | 2,588 | (29,376) | - | (29,376) | (1,012) | (30,388) |
| **Total comprehensive income** | - | - | - | - | - | (24,500) | (8,203) | 739 | 2,588 | (29,376) | 368,562 | 339,186 | 1,192 | 340,378 |
| Dividends — ordinary shares (i) (Note 17) | - | - | - | - | - | - | - | - | - | - | (109,060) | (109,060) | - | (109,060) |
| Distributions to other equity instrument holders (Note 17) | - | - | - | - | - | - | - | - | - | - | (11,764) | (11,764) | (54) | (11,818) |
| Appropriation to surplus reserve (ii) | - | - | - | 36,812 | - | - | - | - | - | 36,812 | (36,812) | - | - | - |
| Appropriation to general reserve (iii) | - | - | - | - | 46,080 | - | - | - | - | 46,080 | (46,080) | - | - | - |
| Capital injection by other equity instrument holders | - | 80,000 | (2) | - | - | - | - | - | - | (2) | - | 79,998 | 7,000 | 86,998 |
| Capital reduction by other equity instrument holders | - | (19,687) | (1,136) | - | - | - | - | - | - | (1,136) | - | (20,823) | - | (20,823) |
| Dividends to non-controlling shareholders | - | - | - | - | - | - | - | - | - | - | - | - | (1,017) | (1,017) |
| Other comprehensive income transferred to retained earnings | - | - | - | - | - | (1,220) | - | - | - | (1,220) | 1,220 | - | - | - |
| Others | - | - | (3,119) | - | - | - | - | - | - | (3,119) | - | (3,119) | 3,219 | 100 |
| **Balance as at 31 December 2025** | **356,407** | **384,657** | **143,977** | **501,177** | **660,896** | **51,245** | **(14,295)** | **(3,442)** | **(16,515)** | **1,323,043** | **2,180,152** | **4,244,259** | **27,765** | **4,272,024** |

(i) Are interim dividends on ordinary shares of RMB50,396 million for 2025 and year-end dividends on ordinary shares of RMB58,664 million for 2024.

(ii) Includes the appropriation to surplus reserve made by overseas branches and subsidiaries in the amounts of RMB144 million and RMB1,293 million, respectively.

(iii) Includes the appropriation to general reserve made by subsidiaries in the amounts of RMB1,494 million.

The accompanying notes form part of these consolidated financial statements.

---

# Consolidated Statement of Changes in Equity
## For the year ended 31 December 2025
(In RMB millions, unless otherwise stated)

| Attributable to equity holders of the parent company | Share capital | Other equity instruments | Reserves: Capital reserve | Reserves: Surplus reserve | Reserves: General reserve | Reserves: Investment revaluation reserve | Reserves: Foreign currency translation reserve | Reserves: Cash flow hedging reserve | Reserves: Other reserves | Reserves: Subtotal | Retained profits | Total | Non-controlling interests | Total equity |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| **Balance as at 1 January 2024** | 356,407 | 354,331 | 148,270 | 428,359 | 561,637 | 24,047 | (15,608) | (2,901) | (9,722) | 1,134,082 | 1,912,067 | 3,756,887 | 19,701 | 3,776,588 |
| Profit for the year | - | - | - | - | - | - | - | - | - | - | 365,863 | 365,863 | 1,083 | 366,946 |
| Other comprehensive income | - | - | - | - | - | 53,534 | 9,516 | (1,280) | (9,381) | 52,389 | - | 52,389 | (1,200) | 51,189 |
| **Total comprehensive income** | - | - | - | - | - | 53,534 | 9,516 | (1,280) | (9,381) | 52,389 | 365,863 | 418,252 | (117) | 418,135 |
| Dividends — ordinary shares (i) (Note 17) (i) Are interim dividends on ordinary shares of RMB51,109 million for 2024 and annual dividends on ordinary shares of RMB109,203 million for 2023. | - | - | - | - | - | - | - | - | - | - | (160,312) | (160,312) | - | (160,312) |
| Distributions to other equity instrument holders (Note 17) | - | - | - | - | - | - | - | - | - | - | (14,963) | (14,963) | - | (14,963) |
| Appropriation to surplus reserve (ii) (ii) Includes the appropriation to surplus reserve made by overseas branches and subsidiaries in the amounts of RMB98 million and RMB1,237 million, respectively. | - | - | - | 36,006 | - | - | - | - | - | 36,006 | (36,006) | - | - | - |
| Appropriation to general reserve (iii) (iii) Includes the appropriation to general reserve made by subsidiaries in the amounts of RMB928 million. | - | - | - | - | 53,179 | - | - | - | - | 53,179 | (53,179) | - | - | - |
| Capital injection by other equity instrument holders | - | 50,000 | (2) | - | - | - | - | - | - | (2) | - | 49,998 | 872 | 50,870 |
| Capital reduction by other equity instrument holders | - | (79,987) | (13) | - | - | - | - | - | - | (13) | - | (80,000) | - | (80,000) |
| Dividends to non-controlling shareholders | - | - | - | - | - | - | - | - | - | - | - | - | (116) | (116) |
| Other comprehensive income transferred to retained earnings | - | - | - | - | - | (616) | - | - | - | (616) | 616 | - | - | - |
| Others | - | - | (21) | - | - | - | - | - | - | (21) | - | (21) | (2,915) | (2,936) |
| **Balance as at 31 December 2024** | **356,407** | **324,344** | **148,234** | **464,365** | **614,816** | **76,965** | **(6,092)** | **(4,181)** | **(19,103)** | **1,275,004** | **2,014,086** | **3,969,841** | **17,425** | **3,987,266** |

The accompanying notes form part of these consolidated financial statements.

---

# Consolidated Statement of Cash Flows

For the year ended 31 December 2025
(In RMB millions, unless otherwise stated)

| Item | Notes | 2025 | 2024 |
| :--- | :---: | :---: | :---: |
| **CASH FLOWS FROM OPERATING ACTIVITIES** | | | |
| Profit before taxation | | 424,435 | 421,827 |
| **Adjustments for:** | | | |
| Share of results of associates and joint ventures | | (4,774) | (4,519) |
| Depreciation | | 29,017 | 29,553 |
| Amortisation | 11 | 5,468 | 5,157 |
| Credit impairment losses | 14 | 132,973 | 125,739 |
| Impairment losses on other assets | | 1,887 | 924 |
| Unrealised gains on foreign exchange | | (15,314) | (4,990) |
| Interest expense on debt securities issued | | 59,133 | 50,929 |
| Accreted interest on impaired loans | | (1,748) | (1,994) |
| Net gains on financial investments | | (39,423) | (24,190) |
| Interest income on financial investments | | (387,636) | (365,208) |
| Net gains on changes in fair value | | (511) | (12,220) |
| Net gains on stocktake and disposal of property and equipment and other assets (other than repossessed assets) | | (832) | (1,308) |
| Dividend income | 9 | (3,480) | (3,067) |
| | | 199,195 | 216,633 |
| **Net (increase)/decrease in operating assets:** | | | |
| Due from central banks | | (64,324) | 165,650 |
| Due from banks and other financial institutions | | (186,312) | 356,999 |
| Financial assets measured at fair value through profit or loss | | 67,841 | (190,081) |
| Reverse repurchase agreements | | 14,987 | (21,896) |
| Loans and advances to customers | | (2,312,194) | (2,277,977) |
| Other assets | | (128,675) | (68,180) |
| | | (2,608,677) | (2,035,485) |
| **Net increase/(decrease) in operating liabilities:** | | | |
| Financial liabilities measured at fair value through profit or loss | | 72,367 | 12,214 |
| Due to central banks | | 7,156 | (61,745) |
| Due to banks and other financial institutions | | 552,467 | 1,065,314 |
| Repurchase agreements | | 1,024,451 | 486,521 |
| Certificates of deposit | | 73,012 | 51,074 |
| Due to customers | | 2,607,714 | 821,679 |
| Other liabilities | | 29,053 | 108,292 |
| | | 4,366,220 | 2,483,349 |
| **Net cash flows from operating activities before taxation** | | 1,956,738 | 664,497 |
| Income tax paid | | (66,208) | (85,303) |
| **Net cash flows from operating activities** | | 1,890,530 | 579,194 |

The accompanying notes form part of these consolidated financial statements.

---

# Consolidated Statement of Cash Flows
For the year ended 31 December 2025
(In RMB millions, unless otherwise stated)

| | Notes | 2025 | 2024 |
| :--- | :---: | :---: | :---: |
| **CASH FLOWS FROM INVESTING ACTIVITIES** | | | |
| Purchases of property and equipment and other assets | | (48,979) | (43,297) |
| Proceeds from disposal of property and equipment and other assets (other than repossessed assets) | | 21,135 | 19,193 |
| Purchases of financial investments | | (8,028,463) | (6,499,586) |
| Proceeds from sale and redemption of financial investments | | 5,218,243 | 4,567,823 |
| Investments in associates and joint ventures | | (4,472) | (7,700) |
| Proceeds from disposal of associates and joint ventures | | 2,685 | 5,951 |
| Investment returns received | | 422,148 | 387,378 |
| Cash receipts from other investing activities | | 121 | 98,770 |
| **Net cash flows from investing activities** | | (2,417,582) | (1,471,468) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** | | | |
| Proceeds from issuance of other equity instruments | | 87,000 | 50,872 |
| Proceeds from issuance of debt securities | | 2,508,380 | 2,092,588 |
| Interest paid on debt securities | | (58,416) | (52,973) |
| Repayments of debt securities | | (2,329,359) | (1,463,682) |
| Cash payments to redeem other equity instruments | | (20,822) | (80,000) |
| Dividends paid on ordinary shares | | (132,173) | (109,203) |
| Dividends or interest paid to other equity instrument holders | | (11,818) | (14,963) |
| Dividends paid to non-controlling shareholders | | (333) | (116) |
| Cash payments for other financing activities | | (7,454) | (6,840) |
| **Net cash flows from financing activities** | | 35,005 | 415,683 |
| **NET DECREASE IN CASH AND CASH EQUIVALENTS** | | (492,047) | (476,591) |
| Cash and cash equivalents at beginning of the year | | 2,290,404 | 2,755,732 |
| Effect of exchange rate changes on cash and cash equivalents | | (29,347) | 11,263 |
| **CASH AND CASH EQUIVALENTS AT END OF THE YEAR** | 42 | 1,769,010 | 2,290,404 |
| **NET CASH FLOWS FROM OPERATING ACTIVITIES INCLUDE:** | | | |
| Interest received | | 997,409 | 1,121,140 |
| Interest paid | | (710,669) | (679,124) |

The accompanying notes form part of these consolidated financial statements.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## 1. CORPORATE INFORMATION

Industrial and Commercial Bank of China Limited (the "Bank"), which was previously known as Industrial and Commercial Bank of China ("ICBC"), used to be a wholly-state-owned commercial bank established on 1 January 1984 based on the authorisation of the State Council and the People's Bank of China (the "PBC") of the People's Republic of China (the "PRC"). On 28 October 2005, with the approval of the State Council, ICBC was restructured and incorporated as a joint-stock limited company. The joint-stock limited company undertook all the assets and liabilities of ICBC upon the restructuring. On 27 October 2006, the Bank was listed on both Shanghai Stock Exchange and The Stock Exchange of Hong Kong Limited.

The Bank obtained authorisation to carry out banking business with an institution code of No. B0001H111000001 from China Banking Regulatory Commission (In 2023, the regulator was renamed the National Financial Regulatory Administration, hereinafter referred to as the "NFRA") of the PRC. The Bank obtained its business license with unified social credit code 91100000100003962T by the State Administration for Industry and Commerce. The legal representative is Liao Lin and the registered office is located at No. 55 Fuxingmennei Avenue, Xicheng District, Beijing, the PRC.

The Bank's stock codes of A Shares and H Shares listed on Shanghai Stock Exchange and The Stock Exchange of Hong Kong Limited are 601398 and 1398, respectively. The Bank's domestic preference shares are listed on Shanghai Stock Exchange and the stock codes are 360011 and 360036.

The principal activities of the Bank and its subsidiaries (collectively referred to as the "Group") comprise corporate financial services, personal financial services, treasury operations, investment banking, asset management, trust, financial leasing, insurance and other financial services. Domestic establishments refer to the Head Office of the Bank, branches and subsidiaries established in Chinese mainland. Overseas establishments refer to branches and subsidiaries established in jurisdictions outside Chinese mainland.

## 2. BASIS OF PREPARATION

### (1) Statement of compliance

The consolidated financial statements have been prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board (the "IASB"), and the disclosure requirements of the Hong Kong Companies Ordinance and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited.

### (2) Basis of preparation of the financial statements

The consolidated financial statements have been prepared under the historical cost convention, except for certain financial instruments, and certain non-financial assets measured at fair value, as further explained in the respective accounting policies below.

The preparation of financial statements in conformity with IFRS Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. Judgements made by management in the application of IFRS Accounting Standards that have significant effect on the financial statements and major sources of estimation uncertainty are disclosed in Note 5.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## 3. NEW AND AMENDMENTS TO IFRS ACCOUNTING STANDARDS

### (1) Application of amendments to IFRS Accounting Standards that are mandatorily effective for the current year

In the current year, the Group has applied, for the first time, the following amendments to IFRS Accounting Standards issued by the IASB which are mandatorily effective for the annual periods beginning on or after 1 January 2025 for the preparation of the Group’s consolidated financial statements:

- Amendments to IAS 21: *Lack of Exchangeability*

The adoption of the above amendments did not have a material impact on the financial position and financial performance of the Group.

### (2) New and amendments to IFRS Accounting Standards in issue but not yet effective

The Group has not applied the following new and amendments to IFRS that have been issued but are not yet effective:

- IFRS 18: *Presentation and Disclosure in Financial Statements*²
- IFRS 19 and its amendments: *Subsidiaries without Public Accountability: Disclosures*²
- Amendments to IFRS 9 and IFRS 7: *Classification and Measurement of Financial Instruments*¹
- Amendments to IFRS 9 and IFRS 7: *Contracts Referencing Nature-dependent Electricity*¹
- Amendments to IFRS 10 and IAS 28: *Sale or Contribution of Assets between an Investor and its Associate or Joint Venture*³
- Amendments to IAS 21: *Translation to a Hyperinflationary Presentation Currency*²

1. Effective for annual periods beginning on or after 1 January 2026.
2. Effective for annual periods beginning on or after 1 January 2027.
3. No mandatory effective date yet determined.

### **IFRS 18 Presentation and Disclosure in Financial Statements**

The IASB issued IFRS 18 Presentation and Disclosure in Financial Statements, replacing IAS 1 Presentation of Financial Statements. Compared with the current IAS 1, the new requirements in IFRS 18 mainly include: introducing three new categories for income, expenses — operating, investing and financing to improve the structure of the income statement, entities are required to classify all income and expenses within the statement of profit or loss into one of the five categories: operating, investing, financing, income taxes and discontinued operations and to present two new defined subtotals of operating profit, profit before financing and income tax; requiring the disclosures of management — defined performance measures to improve the transparency of performance indicators defined by management, and separately disclose the reconciliation process between each management performance indicator and the most directly comparable total or subtotal items specified in IFRS Accounting Standards in the notes, the calculation method of each management performance indicator and the description of its changes, the income tax impact of reconciliation items and the impact on non-controlling interests; strengthening information aggregation and disaggregation to further improve the usefulness of information in financial statements in decision-making.

IFRS 18 and the consequential amendments to other IFRS Accounting Standards are effective for annual periods beginning on or after 1 January 2027 with earlier application permitted. Retrospective application is required.

The adoption of IFRS 18 is expected to have no material impact on the financial position and financial performance of the Group.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## Amendments to IFRS 9 and IFRS 7 – Classification and Measurement of Financial Instruments

The amendments clarify the date on which a financial asset or financial liability is derecognised and introduce an accounting policy option to derecognise a financial liability that is settled through an electronic payment system before the settlement date if specified criteria are met. The amendments clarify how to assess the contractual cash flow characteristics of financial assets with environmental, social and governance and other similar contingent features. Moreover, the amendments clarify the requirements for classifying financial assets with non-recourse features and contractually linked instruments. The amendments also include additional disclosures for investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features. The amendments shall be applied retrospectively with an adjustment to opening retained profits (or other component of equity) at the initial application date.

The adoption of the amendments are expected to have no material impact on the financial position and financial performance of the Group.

## Amendments to IFRS 10 and IAS 28 – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

The amendments clarify the accounting treatment for sales or contribution of assets between an investor and its associates or joint ventures. The amendments require a full recognition of a gain or loss resulting from a downstream transaction when the sale or contribution of assets constitutes a business. For a transaction involving assets that do not constitute a business, a gain or loss resulting from the transaction is recognised in the investor's profit or loss only to the extent of the unrelated investor's interest in that associate or joint venture. The amendments are to be applied prospectively.

The adoption of the amendments are expected to have no material impact on the financial position and financial performance of the Group.

The other new and amendments to IFRS Accounting Standards that have been issued but not yet effective are expected to have no material impact on the financial position and financial performance of the Group in the foreseeable future.

# 4. SUMMARY OF MATERIAL ACCOUNTING POLICY INFORMATION

## (1) Functional currency and foreign currency translation

### Functional currency

The functional currency of the Group's domestic establishments is Renminbi ("RMB"). The overseas establishments determine their own functional currencies which best represent the economic environment they operate in. These financial statements are presented in RMB millions except when otherwise indicated.

### Foreign currency translation

Foreign currency transactions are initially recorded in the functional currency using the exchange rates at the dates of the transactions or deemed exchange rates. Monetary assets and liabilities denominated in foreign currencies are retranslated into the functional currency at the applicable exchange rates ruling at the end of the reporting period. Exchange differences arising on the settlement of monetary items or on translating monetary items at period end rates are recognised in profit or loss, with the exception that they are taken directly to other comprehensive income when the monetary items are designated as part of the hedge of the Bank's net investment in a foreign entity, and the aggregate exchange differences are not recognised in profit or loss until the disposal of such net investment.

Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates as at the date when the fair value is determined. Any goodwill arising on the acquisition of a foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition are treated as foreign assets and liabilities of the foreign operation and translated at the deemed rates at the end of the reporting period. The exchange differences are recognised in profit or loss or in other comprehensive income, depending on the nature of non-monetary items.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

As at the end of the reporting period, the assets and liabilities of foreign operations are translated into the presentation currency of the Bank at the exchange rates ruling at the end of the reporting period. For overseas business not operating in a hyperinflationary economy, all items within equity except for retained profits are translated at the exchange rates ruling at the dates of the transactions. Income and expenses in the statement of profit or loss are translated using the exchange rates at the date of the transactions or deemed exchange rates. The exchange differences arising on the above translation are taken to other comprehensive income. On disposal of a foreign operation, the deferred cumulative amount recognised in other comprehensive income relating to that particular foreign operation is recognised in profit or loss. The effect of exchange rate changes on cash and cash equivalents is presented separately in the statement of cash flows.

## (2) Subsidiaries

Subsidiaries are entities (including structured entities) controlled by the Group. The Group controls an entity if it is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The Group reassesses whether it has control if there are changes to one or more of the elements of control. This includes circumstances in which protective rights held (e.g., those resulting from a lending relationship) become substantive and lead to the Group having power over an entity.

A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, and the relevant activities are directed by means of contractual or other arrangements.

An investment in a subsidiary is consolidated into the consolidated financial statements from the date that control commences until the date that control ceases. Intra-group balances, transactions and any unrealised profit or loss arising from intra-group transactions are eliminated in full in preparing the consolidated financial statements.

In the Bank’s statement of financial position, investments in subsidiaries are stated at cost less impairment losses.

## (3) Non-controlling interests

Non-controlling interests represent the equity in a subsidiary not attributable directly or indirectly to a parent.

Non-controlling interests are presented in the consolidated statement of financial position within equity, separately from equity attributable to the equity holders of the Bank. Non-controlling interests in the results of the Group are presented on the face of the consolidated statement of profit or loss and the consolidated statement of profit or loss and other comprehensive income as an allocation of the total profit or loss and total comprehensive income for the year between non-controlling interests and the equity holders of the Bank.

Changes in the Group’s interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions, whereby adjustments are made to the amounts of controlling and non-controlling interests within consolidated statement of equity to reflect the change in relative interests, but no adjustments are made to goodwill and no gain or loss is recognised.

## (4) Associates and joint ventures

An associate is an entity in which the Group has significant influence. A joint venture is an arrangement whereby the Group and other parties contractually agree to share control of the arrangement, and have rights to the net assets of the arrangement. Other than those measured at fair value through profit or loss, the Group’s investments in associates or joint ventures are accounted for using the equity method.

Under the equity method, an investment in an associate or joint venture is carried in the consolidated statement of financial position at cost plus post-acquisition changes in the Group’s share of the net assets of the associate or joint venture, less any impairment losses. The consolidated statement of profit or loss reflects the share of the results of operations of the associate or joint venture. Unrealised profits and losses resulting from transactions between the Group and the associates or joint ventures are eliminated to the extent of the Group’s interests in the associates or joint ventures. Unrealised losses are also eliminated unless evidence of impairment on the transferred assets is provided for the transaction.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

If an investment in an associate becomes an investment in a joint venture, the retained interest is not re-measured. Instead, the investment continues to be accounted under the equity method, and vice versa.

In the Bank’s statement of financial position, investments in associates and joint ventures are stated at cost less impairment losses.

## (5) Business combination and goodwill

Business combinations are accounted for by applying the acquisition method. The Group can elect to apply an optional concentration test, on a transaction-by-transaction basis, that permits a simplified assessment of whether the acquired set of assets is not a business. If the concentration test is met, the set of assets is determined not to be a business; otherwise, the Group shall then perform an assessment in accordance with the requirements of business. The consideration transferred is measured at acquisition date fair value which is the sum of the acquisition date fair values of assets transferred by the Group, liabilities assumed by the Group to the former owners of the acquiree and the equity interests issued by the Group in exchange for control of the acquiree. Any costs directly attributable to the combination are recognised in profit or loss when incurred.

When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives from host contracts of the acquiree.

If the business combination is achieved in stages, the acquirer’s previously held equity interest in the acquiree is re-measured to the acquisition date fair value through profit or loss.

Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the contingent consideration that is classified as a financial asset or financial liability, is recognised in profit or loss. If the contingent consideration is classified as equity, it shall not be re-measured, and its subsequent settlement is accounted for within equity.

Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred, the amount recognised for non-controlling interests and the fair value of the acquirer’s previously-held equity interest in the acquiree over the net of the acquisition-date amounts of the identifiable assets and liabilities acquired. If the sum of this consideration and other items is lower than the fair value of the net assets of the subsidiary acquired, the difference is, after reassessment, recognised in profit or loss as gains on bargain purchase.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is tested for impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. The Group performs its annual impairment test of goodwill at year end date. For the purpose of impairment testing, goodwill arising in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units (“CGU”), or group of CGUs, that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units.

Impairment is determined by assessing the recoverable amount of the CGU or group of CGUs to which the goodwill relates. Where the recoverable amount of the CGU or group of CGUs is less than the carrying amount, an impairment loss is recognised. An impairment loss recognised for goodwill is not reversed in subsequent period.

Where goodwill forms part of a CGU or group of CGUs and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative values of the operation disposed of and the portion of the CGU or group of CGUs retained.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (6) Related parties

A party is considered to be related to the Group if:

(a) the party is a person or a close member of that person’s family and that person:
(i) has control or joint control over the Group;
(ii) has significant influence over the Group; or
(iii) is a member of the key management personnel of the Group or of a parent of the Group;

or

(b) the party is an entity where any of the following conditions applies:
(i) the entity and the Group are members of the same group;
(ii) one entity is an associate or joint venture of the other entity (or of a parent, subsidiary or fellow subsidiary of the other entity);
(iii) the entity and the Group are joint ventures of the same third party;
(iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity;
(v) the entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity related to the Group;
(vi) the entity is controlled or jointly controlled by a person identified in (a);
(vii) a person identified in (a)(i) has significant influence over the entity or is a member of the key management personnel of the entity (or of a parent of the entity); or
(viii) the entity, or any member of a Group of which it is a part, provides key management personnel services to the Group or to the Group’s parent.

## (7) Classification and measurement of financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

### (i) Initial recognition and measurement of financial instruments

At initial recognition, financial assets and financial liabilities are measured at fair value. For financial assets and financial liabilities measured at fair value through profit or loss (“FVTPL”), any related directly attributable transaction costs are charged to profit or loss; for other categories of financial assets and financial liabilities, any related directly attributable transaction costs are included in their initial recognised value.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

When measuring fair value, the Group shall take into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date (including the condition of the asset; and restrictions, if any, on the sale or use of the asset), and use valuation techniques that are appropriate in the circumstances and for which sufficient data and other information are available to measure fair value. The adopted valuation techniques mainly include market approach, income approach and cost approach.

---

# (ii) Classification and subsequent measurement of financial assets

## Classification of financial assets

The classification of financial assets is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. On initial recognition, a financial asset is classified as measured at amortised cost, at fair value through other comprehensive income ("FVTOCI"), or at FVTPL.

Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:

- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

A financial asset is measured at FVTOCI if it meets both of the following conditions and is not designated as at FVTPL:

- it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment's fair value in other comprehensive income. This election is made on an investment-by-investment basis, and the relevant investment should meet the definition of equity instrument from the perspective of the issuer.

All financial assets not classified as measured at amortised cost or FVTOCI as described above are measured at FVTPL. On initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVTOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

The business model refers to how the Group manages its financial assets in order to generate cash flows. That is, the Group's business model determines whether cash flows will result from collecting contractual cash flows, selling financial assets, or both. The Group determines the business model for managing the financial assets according to the facts and based on the specific business objective for managing the financial assets determined by the Group's key management personnel.

In assessing whether the contractual cash flows are solely payments of principal and interest on the principal amount outstanding, the Group considers the contractual terms of the instrument. For the purposes of this assessment, principal is defined as the fair value of the financial asset on initial recognition. Interest is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs, as well as a profit margin. The Group also assesses whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet the above contractual cash flow characteristics.

## Subsequent measurement of financial assets

### Financial assets measured at FVTPL

These financial assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognised in profit or loss unless the financial assets are part of a hedging relationship.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## Financial assets measured at amortised cost

These assets are subsequently measured at amortised cost using the effective interest method. A gain or loss on a financial asset that is measured at amortised cost and is not part of a hedging relationship shall be recognised in profit or loss when the financial asset is derecognised, amortised or impaired.

## Debt instruments measured at FVTOCI

These assets are subsequently measured at fair value. Interest income calculated using the effective interest method, impairment and foreign exchange gains and losses are recognised in profit or loss. Other net gains and losses are recognised in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.

## Equity instruments measured at FVTOCI

These assets are subsequently measured at fair value. Dividend income is recognised in profit or loss for the period. Other net gains and losses are recognised in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to retained earnings.

## (iii) Classification and subsequent measurement of financial liabilities

Financial liabilities are classified as measured at FVTPL and other financial liabilities.

### Financial liabilities measured at FVTPL

A financial liability is classified as measured at FVTPL if it is classified as held-for-trading (including derivative financial liability) or it is designated as such on initial recognition.

A financial liability may be designated as at FVTPL upon initial recognition if:

1. such designation eliminates or significantly reduces accounting mismatch;
2. the Group makes management and performance evaluation on a fair value basis for a portfolio of financial liabilities or a portfolio of financial assets and financial liabilities, in accordance with the Group’s formally documented risk management or investment strategy, and reports to key management personnel on that basis;
3. the qualified hybrid contract that contains embedded derivatives.

Financial liabilities measured at FVTPL are subsequently measured at fair value and net gains and losses (including any interest expense) are recognised in profit or loss, unless the financial liabilities are part of a hedging relationship.

For the financial liabilities measured at FVTPL, the gains and losses from changes in fair value of the financial liability arising from changes in the Group’s own credit risk are included in other comprehensive income; other changes in fair value of the financial liabilities are recognised in profit or loss for the period. If the treatment of the impact of changes in the financial liabilities’ own credit risk will create or enlarge the accounting mismatch in profit or loss, the Group shall recognise the entire gains or losses of the financial liabilities (including the amount of the impact of changes in its own credit risk) in profit and loss. When these liabilities are derecognised, the cumulative gains or losses previously recognised in other comprehensive income are reclassified from reserve to retained earnings.

---

## Other financial liabilities

Other financial liabilities are subsequently measured at amortised cost using the effective interest method.

### (iv) Financial instruments reclassification

The Group will reclassify all related financial assets when it changes its business model for managing financial assets, and the reclassification applies prospectively from the reclassification date (the first day of the first reporting period following the change in business model).

## (8) Trade date accounting

All regular way purchases and sales of financial assets are recognised at the trade date, which is the date that the Group commits to purchase or sell the assets. A regular way purchase or sale is the purchase or sale of financial assets that requires delivery of assets within the time frame generally established by regulation or convention in the marketplace.

## (9) Presentation of financial instruments

Financial assets and financial liabilities are generally presented separately in the statement of financial position and shall not be offset. However, a financial asset and a financial liability are offset and the net amount is presented in the statement of financial position when both of the following conditions are satisfied:

- the Group currently has a legally enforceable right to set off the recognised amounts; and
- the Group intends either to settle on a net basis, or to realise the financial asset and settle the financial liability simultaneously.

## (10) Impairment of financial assets

The Group recognises loss allowances for expected credit loss ("ECL") on:

- financial assets measured at amortised cost;
- debt instruments measured at FVTOCI; and
- loan commitments and financial guarantee contracts.

Financial assets measured at fair value, including debt or equity instruments measured at FVTPL, equity instruments designated as at FVTOCI and derivative financial assets, are not subject to ECL assessment.

### Measurement of ECL

ECL is a probability-weighted amount of credit losses on financial instruments that is determined with the respective risks of default occurring as the weight. Credit losses are measured as the present value of all cash shortfalls (i.e., the difference between all cash flows discounted at effective interest rates and receivable in accordance with the contract and all cash flows that the Group expects to receive).

The Group's method of measuring ECL of financial instruments reflects the following elements: (i) unbiased weighted average probability determined by the results of evaluating a range of possible outcomes; (ii) time value of money; and (iii) reasonable and evidence-based information about past events, current conditions, and future economic forecasts that are available at no additional cost or effort at the end of the reporting period.

The maximum period considered when estimating ECL is the maximum contractual period (including extension options) over which the Group is exposed to credit risk.

**Lifetime ECL** is the ECL that result from all possible default events over the expected life of a financial instrument.

**12-month ECL** is the portion of ECL that result from default events that are possible within the 12 months after the end of the reporting period (or a shorter period if the expected life of the instrument is less than 12 months).

---

The Group classifies financial instruments into the following three stages and provides provisions for ECL accordingly, depending on whether credit risk on that financial instrument has increased significantly since initial recognition.

**Stage 1:** A financial instrument of which the credit risk has not significantly increased since initial recognition. The amount that equals to 12-month ECL is recognised as loss allowance.

**Stage 2:** A financial instrument with a significant increase in credit risk since initial recognition but is not considered to be credit-impaired. The amount that equals to lifetime ECL is recognised as loss allowance. Refer to Note 50(a) credit risk for the description of how the Group determines when a significant increase in credit risk has occurred.

**Stage 3:** A financial instrument is considered to be credit-impaired as at the end of the reporting period. The amount that equals to lifetime ECL is recognised as loss allowance. Refer to Note 50(a) credit risk for the definition of credit-impaired financial assets.

## **Presentation of allowance for ECL**

ECL is re-measured at the end of each reporting period to reflect changes in the financial instrument’s credit risk since initial recognition. Any change in the ECL amount is recognised as an impairment gain or loss in profit or loss. The Group recognises impairment gains or losses for financial instruments measured at amortised cost with a corresponding adjustment to their carrying amount through allowance for impairment loss. For debt instruments that are measured at FVTOCI, the loss allowance is recognised in other comprehensive income, which does not decrease the carrying amount of the financial assets. The Group recognises loss allowance for loan commitments and financial guarantee contracts through other liabilities (provisions for credit commitments).

## **Write-off**

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. A write-off constitutes a derecognition event. This is generally the case when the Group determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due. Subsequent recoveries of an asset that was previously written off are recognised as a reversal of impairment in profit or loss in the period in which the recovery occurs.

# **(11) Modification of financial assets contracts**

In some cases (such as rescheduled loans), the Group may renegotiate or otherwise modify the financial assets contracts. The Group would assess whether or not the new contractual terms are substantially different to the original terms. If the terms are substantially different, the Group derecognises the original financial asset and recognises a new asset under the revised terms. If the renegotiation or modification does not result in derecognition, but leads to changes in contractual cash flows, when assessing whether a significant increase in credit risk has occurred, the Group compares the risk of a default occurring under the revised terms as at the end of the reporting period with that as at the date of initial recognition under original terms.

# **(12) Derecognition of financial assets and liabilities**

## **Derecognition of financial assets**

Financial asset is derecognised when one of the following conditions is met:

- the Group’s contractual rights to the cash flows from the financial asset expire;
- the financial asset has been transferred and the Group transfers substantially all of the risks and rewards of ownership of the financial asset; or
- the financial asset has been transferred, although the Group neither transfers nor retains substantially all of the risks and rewards of ownership of the financial asset, it does not retain control over the transferred asset.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

Where the Group has transferred its rights to receive cash flows from an asset or has retained its rights to receive cash flows from the asset but assumed the obligation to pay those cash flows to the eventual recipients and meanwhile meet the conditions of the transfer of financial assets, and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset, the asset is recognised to the extent of the Group's continuing involvement in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.

## Securitisation
As part of its operational activities, the Group securitises credit assets. When a securitisation of financial assets does not qualify for derecognition, the relevant financial assets are not derecognised, and the consideration paid by third parties are recorded as a financial liability; When a financial asset is transferred, and if the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset, but retains control, the Group continues to recognise the financial asset to the extent of its continuing involvement in the financial asset. Gains or losses on securitisation are the difference between the carrying amount of the derecognised financial assets and the consideration received which is recognised in profit or loss.

## Sales of assets on condition of repurchase
The derecognition of financial assets sold on condition of repurchase is determined by the economic substance of the transaction. If a financial asset is sold under an agreement to repurchase the same or substantially the same asset at a fixed price or at the sale price plus a reasonable return, the Group will not derecognise the asset. If a financial asset is sold together with an option to repurchase the financial asset at its fair value at the time of repurchase, the Group will derecognise the financial asset.

## Derecognition of financial liabilities
The Group derecognises a financial liability (or part of it) only when its contractual obligation (or part of it) is extinguished.

# (13) Derivatives and hedge accounting
## Derivatives
Derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative.

If the host contract included in the hybrid contract is a financial asset, the embedded derivative is no longer split from the main contract of the financial asset, and the hybrid financial instrument as a whole is related to the classification of the financial asset provision. If the host contract included in the hybrid contract is not a financial asset, when the embedded derivative's economic characteristics and risks are not closely related to those of the host contract, those separate instruments with the same terms as the embedded derivative would meet the definition of a derivative, and the hybrid instrument is not carried at FVTPL, derivatives embedded in other financial instruments should be split from the hybrid contract and treated as separate derivatives. These embedded derivatives are measured at fair value with the changes in fair value recognised in profit or loss.

Any changes in fair value on derivative financial instruments that are not designated as hedging instruments and do not meet the requirements for hedging instruments, including those intended to hedge specific interest rate and exchange rate risks but do not qualify for hedging accounting, are taken directly to profit or loss.

For less complex derivative products, the fair values are principally determined by valuation models which are commonly used by market participants. Inputs to valuation models are determined from observable market data wherever possible, including foreign exchange spot and forward rates and interest rate yield curves. For more complex derivative products, the fair values are mainly determined by quoted prices from dealers.

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# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## Hedge accounting

At the inception of a hedging relationship, the Group formally designates the hedging instruments and the hedged items, and documents the hedging relationship to which the Group wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will assess the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value or cash flows attributable to the hedged risk. Such hedges are expected to meet the hedge effectiveness in achieving offsetting changes in fair value or cash flows and are assessed on an on-going basis to analyse the sources of hedge ineffectiveness which are expected to affect the hedging relationship in remaining hedging period. If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio, but the risk management objective for that designated hedging relationship remains the same, the Group would rebalance the hedging relationship.

Certain derivative transactions, while providing effective economic hedges under the Group’s risk management positions, do not qualify for hedge accounting and are therefore treated as derivatives held for trading with fair value gains or losses recognised in profit or loss.

### Fair value hedges

**Fair value hedges** are hedges of the Group’s exposure to changes in fair value of a recognised asset or liability or an unrecognised firm commitment, or an identified portion of such an asset, liability or unrecognised firm commitment, that is attributable to a particular risk and could affect the profit or loss or other comprehensive income. Among them, the circumstances affecting other comprehensive income are limited to the hedging for the risk exposure from fair value change of non-trading equity investment designated as at FVTOCI. For fair value hedges, the carrying amount of the hedged item not already measured at fair value is adjusted for the gain or loss attributable to the risk being hedged and is taken to profit or loss or other comprehensive income. The gains or losses for hedging instrument re-measured at fair value are taken to profit or loss or other comprehensive income.

When the hedged item in a fair value hedge is measured at amortised cost, any hedge adjustment to its carrying amount is amortised to profit or loss. The amortisation is based on a recalculated effective interest rate at the date when amortisation begins.

When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in fair value of the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss recognised in profit or loss. The changes in fair value of the hedging instrument are also recognised in profit or loss.

The Group discontinues fair value hedge accounting when the hedging relationship ceases to meet the qualifying criteria after taking into account any rebalancing of the hedging relationship, including the hedging instrument has expired or has been sold, terminated or exercised. If the hedged items are derecognised, the unamortised adjustment to carrying amount is recorded in profit or loss.

### Cash flow hedges

**Cash flow hedges** are hedges of the Group’s exposure to variability in cash flows that is attributable to a particular risk associated with a recognised asset or liability, a highly probable forecast transaction or a component of any such item, and could affect profit or loss. For designated and qualifying cash flow hedges, the effective portion of the gain or loss on the hedging instrument is initially recognised directly in other comprehensive income. The ineffective portion of the gain or loss on the hedging instrument is recognised immediately in profit or loss.

When the hedged cash flow affects profit or loss, the gain or loss on the hedging instrument recognised directly in other comprehensive income is recycled in the corresponding income or expense line of the statement of profit or loss. When the hedging relationship ceases to meet the qualifying criteria after taking into account any rebalancing of the hedging relationship, including the hedging instrument has expired or has been sold, terminated or exercised, any cumulative gains or losses existing in other comprehensive income at that time remains in other comprehensive income until the hedged forecast transaction ultimately occurs. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that was reported in other comprehensive income is immediately transferred to profit or loss.

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# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## Net investment hedges

A net investment hedge is a hedge of the currency risk of a net investment in a foreign institution operation.

Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognised directly in other comprehensive income; the gain or loss relating to the ineffective portion is recognised in profit or loss immediately. Gains and losses accumulated in other comprehensive income are included in profit or loss when the foreign operation is disposed of as part of the gains or losses on the disposal.

## (14) Repurchase and reverse repurchase transactions (including securities borrowing and lending)

**Assets sold under agreements to repurchase** at a specified future date (“repos”) are not derecognised from the statement of financial position. The corresponding cash received, including accrued interest, is recognised on the statement of financial position as a “repurchase agreement”. The difference between the sale and repurchase prices is treated as an interest expense and is amortised over the life of the agreement using the effective interest method.

**Conversely, assets purchased under agreements to resell** at a specified future date (“reverse repos”) are not recognised on the statement of financial position. The corresponding cash paid, including accrued interest, is recognised on the statement of financial position as a “reverse repurchase agreement”.

**According to the policy of classification of financial assets,** the reverse repurchase agreements held by the Group were divided into different classifications according to the entity’s business model for managing the financial instruments and the contractual cash flow characteristics of the assets: financial assets measured at amortised cost and financial assets measured at FVTPL. The difference between the purchase and resale prices of reverse repurchase agreements measured at amortised cost is treated as an interest income and is amortised over the life of the agreement using the effective interest method.

**Securities borrowing and lending transactions** are usually collateralised by securities or cash. The transfer of the securities to counterparties is only reflected on the statement of financial position if the risks and rewards of ownership are also transferred. Cash advanced or received as collateral is recorded as an asset or liability.

**Securities borrowed** are not recognised in the statement of financial position, unless they are then sold to third parties, in which case the obligation to return the securities is recorded as a financial liability held for trading and measured at fair value with any gains or losses included in profit or loss.

## (15) Insurance contracts

### Identification of insurance contracts

The Group is exposed to insurance risk due to the issuance of insurance contracts. Insurance risk is the risk, other than financial risk, transferred from the holder of a contract to the issuer. The Group assesses the significance of insurance risk contract by contract. A contract is an insurance contract only if it transfers significant insurance risk. A contract that is assessed as meeting the definition of an insurance contract at the contract commencement date will not be re-assessed subsequently. An insurance contract shall be derecognised if the obligations under such contract are discharged due to fulfilment, cancellation or expiration.

### Grouping of contracts

The Group identifies portfolios of insurance contracts. A portfolio comprises contracts subject to similar risks and managed together. The Group further divides portfolios of insurance contracts into groups of insurance contracts, which are taken as the unit of measurement. Insurance contracts issued less than one year apart and having similar expected profitability are included in the same group.

If a group of insurance contracts is onerous at the date of initial recognition, or if additional loss is caused by contracts added to the group of onerous contracts, the Group recognises a loss as insurance service expenses.

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# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

Except for groups of onerous contracts, the Group reasonably determines the coverage units of contract groups for each accounting period of the coverage period based on the modes to provide insurance contract services and allocates the carrying amount of contract service margin as the insurance revenue for the current and subsequent periods.

## Recognition and measurement of insurance contracts

On initial recognition, the Group measures a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin, and recognises an insurance contract liability. Contractual service margin represents the unearned profit the Group will recognise as it provides services under insurance contracts in the future. The fulfilment cash flows comprise estimates of future cash flows directly attributable to fulfilling insurance contracts, an adjustment to reflect the time value of money and the financial risks and a risk adjustment for non-financial risk. A Group’s own non-performance risk is not taken into account in estimating the fulfilment cash flows. Risk adjustment for non-financial risk represents the compensation the Group requires for bearing the uncertainty about the amount and timing of future cash flows that arises from non-financial risk as the entity fulfils insurance contracts.

The Group measures insurance contracts with the general model, applying the variable fee approach or premium allocation approach, and subsequently measures the insurance contract liabilities at the end of the reporting period at the sum of the liability for remaining coverage and the liability for incurred claims. The Group recognises the reduction in the liability for remaining coverage because of services provided in the period as insurance revenue. The Group recognises the increase in the liability for incurred claims because of claims and expenses incurred in the period and any subsequent changes in fulfilment cash flows relating to incurred claims and incurred expenses as insurance service expenses. The Group allocates insurance acquisition cash flows to each accounting period of the coverage period as insurance revenue and recognises the same amount as insurance service expenses.

The Group recognises the change in the liability for remaining coverage and the liability for incurred claims because of the effect of the time value of money and the effect of financial risk as financial changes of insurance contracts. The Group elects to disaggregate financial changes of insurance contracts and include such changes in insurance finance income or expenses for the period and other comprehensive income.

## (16) Leases

A lease is when the lessor conveys the right to control the use of an asset for a period of time in exchange for the consideration of the lessee.

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of one or more identified assets for a period of time in exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether:

- the contract involves the use of an identified asset. An identified asset may be specified explicitly or implicitly in a contract and should be physically distinct, or a capacity portion or other portion of an asset that is not physically distinct but represents substantially all of the capacity of the asset and thereby provides the customer with the right to obtain substantially all of the economic benefits from the use of the asset. If the supplier has a substantive substitution right throughout the period of use, then the asset is not identified;
- the lessee has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use;
- the lessee has the right to direct the use of the asset.

For a contract that contains more than one separate lease component, the lessee and the lessor separate lease components and account for each lease component as a lease separately. For a contract that contains lease and non-lease components, the lessee and the lessor separate lease components from non-lease components. However, for the leases in which the Group is a lessee, the Group has elected not to separate lease components from non-lease components and accounts for the lease and non-lease components as a single lease component.

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# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (i) As a lessee

The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability, any lease payments made at or before the commencement date (less any lease incentives received), any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the site on which it is located or restore the underlying asset to the condition required by the terms and conditions of the lease.

The right-of-use asset is depreciated using the straight-line method. If the lessee is reasonably certain to exercise a purchase option by the end of the lease term, the right-of-use asset is depreciated over the remaining useful lives of the underlying asset. Otherwise, the right-of-use asset is depreciated from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. Impairment losses of right-of-use assets are accounted for in accordance with the accounting policy described in Note 4(23).

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date. In calculating the present value of lease payments, the Group uses the incremental borrowing rate if the interest rate implicit in the lease is not readily determinable. Each institution of the Group uses an interest rate that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment as the incremental borrowing rate.

A constant periodic rate is used to calculate the interest on the lease liability in each period during the lease term with a corresponding charge to profit or loss or included in the cost of assets where appropriate. Variable lease payments not included in the measurement of the lease liability are charged to profit or loss or included in the cost of assets where appropriate as incurred.

Under the following circumstances after the commencement date, the Group re-measures lease liabilities based on the present value of revised lease payments:

- there is a change in the in-substance fixed lease payments;
- there is a change in the amounts expected to be payable under a residual value guarantee;
- there is a change in future lease payments resulting from a change in an index or a rate used to determine those payments;
- there is a change in the assessment of whether the Group will exercise a purchase, extension or termination option, or there is a change in the exercise of the extension or termination option.

When the lease liability is re-measured, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of 12 months or less, and does not contain any purchase option and leases of low-value assets. The Group recognises the lease payments associated with these leases in profit or loss or as the cost of the assets where appropriate using the straight-line method over the lease term.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (ii) As a lessor

The Group determines at lease inception whether each lease is a finance lease or an operating lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset irrespective of whether the legal title to the asset is eventually transferred. An operating lease is a lease other than a finance lease.

When the Group is a sub-lessor, it assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset. If the head lease is a short-term lease to which the Group applies practical expedient described above, then it classifies the sub-lease as an operating lease.

Under a finance lease, at the commencement date, the Group recognises the finance lease receivable and derecognises the finance lease asset. The finance lease receivable is initially measured at an amount equal to the net investment in the lease. The net investment in the lease is measured at the aggregate of the unguaranteed residual value and the present value of the lease receivable that are not received at the commencement date, discounted using the interest rate implicit in the lease.

The Group recognises finance income over the lease term, based on a pattern reflecting a constant periodic rate of return. The impairment and derecognition of the finance lease receivable are recognised in accordance with the accounting policy in Notes 4(10) and 4(12). Variable lease payments not included in the measurement of net investment in the lease are recognised as income as they are earned.

Lease receipts from operating leases is recognised as income using the straight-line method over the lease term. The initial direct costs incurred in respect of the operating lease are initially capitalised and subsequently amortised in profit or loss over the lease term on the same basis as the lease income. Variable lease payments not included in lease receipts are recognised as income as they are earned.

## (17) Financial guarantee contracts

The Group issues financial guarantee contracts, including letters of credit, letters of guarantee and acceptance. These financial guarantee contracts provide for specified payments to be made to reimburse the holders for the losses they incur when a guaranteed party defaults under the original or modified terms of a debt instrument, loan or any other obligation.

The Group initially measures all financial contracts at fair value, in other liabilities, being the premium received. This amount is recognised ratably over the period of the contract as fee and commission income. Subsequently, the liabilities are measured at the higher of the amount of the loss allowance determined in accordance with impairment policies of financial instruments and the amount initially recognised less the cumulative amount of income. Any increase in the liability relating to a financial guarantee is taken to the statement of profit or loss.

## (18) Fiduciary activities

When the Group acts in a fiduciary capacity such as custodian or agent, assets arising thereon together with related undertakings to return such assets to customers are excluded from the statement of financial position.

The asset custody services of the Group refer to the business that the Group as trustee approved by regulatory authorities, signs custody agreement with clients and takes the responsibility of trustee in accordance with relevant laws and regulations. The assets under custody are not recorded on the statement of financial position as the Group merely fulfils the responsibility as trustee and charges fees in accordance with these agreements without retaining any risks or rewards of the assets under custody.

The Group grants entrusted loans on behalf of trustors, which are recorded off-balance sheet. The Group, as a trustee, grants such entrusted loans to borrowers under the direction of those trustors who fund these loans. The Group has been contracted by those trustors to manage the administration and collection of these loans on their behalf. Those trustors determine both the underwriting criteria for and the terms of all entrusted loans including their purposes, amounts, interest rates, and repayment schedules. The Group charges a commission related to its activities in connection with entrusted loans which are recognised ratably over the period in which the service is provided. The risk of loss is borne by those trustors.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (19) Precious metals

Precious metals comprise gold, silver and other precious metals. Precious metals that are not related to the Group’s precious metals trading activities are initially measured at acquisition cost and subsequently measured at the lower of cost and net realisable value. Precious metals acquired by the Group for trading purposes are initially measured at fair value and subsequent changes in fair value are recorded in the statement of profit or loss.

The Group records the precious metals received as an asset. A liability to return the amount of precious metals deposited is also recognised. The precious metals deposited with the Group are measured at fair value both on initial recognition and in subsequent measurement.

## (20) Property and equipment

Property and equipment, other than construction in progress are stated at costs less accumulated depreciation and any impairment loss. The cost of an item of property and equipment comprises its purchase price, tax and any directly attributable costs of bringing the asset to its present working condition and location for its intended use. Expenditure incurred after items of property and equipment have been put into operation, such as repairs and maintenance, is normally charged to profit or loss in the period in which it is incurred. In situations where the recognition criteria are satisfied, the expenditure for a major inspection is capitalised in the carrying amount of the asset as a replacement.

Construction in progress comprises the direct costs of construction during the period of construction and is not depreciated. Construction in progress is reclassified to the appropriate category of property and equipment when completed and ready for use.

The carrying values of property and equipment are reviewed for impairment when events or changes in circumstances indicate that the carrying values may not be recoverable.

Depreciation is calculated on the straight-line basis to write off the cost of each item of property and equipment, less any estimated residual value, over the estimated useful life. The estimated useful life, estimated residual value rate and the annual depreciation rate of each item of property and equipment (excluding aircraft and vessels) are as follows:

| | Estimated useful life | Estimated residual value rate | Annual depreciation rate |
| :--- | :--- | :--- | :--- |
| Properties and buildings | 5-50 years | 0%-3% | 1.94%-20% |
| Office equipment and motor vehicles (excluding aircraft and vessels) | 2-7 years | – | 14.29%-50% |
| Leasehold improvements | | | The shorter of the economic useful lives and remaining lease terms |

Equipment under operating leases where the Group is the lessor contains aircraft, aircraft engines and vessels. The estimated useful lives and depreciation methods are determined according to the conditions of individual aircraft and vessel. The estimated residual values are assessed by an independent appraiser based on historical data. The estimated useful lives range from 18 to 25 years.

For an impaired fixed asset, the depreciation is calculated based on the carrying value less the cumulative impairment loss.

Where parts of an item of property and equipment have different useful lives, the cost of that item is allocated on a reasonable basis among the parts and each part is depreciated separately.

Residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at least at each financial year end.

An item of property and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising from derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss in the year the asset is derecognised.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (21) Land use rights

Land use rights are recognised at cost, being the fair value at the time of injection from the central government of the PRC (the “Government”) during the Group’s restructuring or the consideration paid. The rights are amortised using the straight-line method over the periods of the leases. When the prepaid land lease payments cannot be allocated reliably between the land and buildings elements, the entire lease payments are included in the costs of properties and buildings as finance leases in property and equipment.

## (22) Repossessed assets

Repossessed assets are initially recognised at fair value of assets not retained plus related costs, and are subsequently measured at the lower of the carrying value and net recoverable amount. If the recoverable amount is lower than the carrying value of the repossessed assets, the assets are written down to the recoverable amount.

## (23) Non-financial asset impairment

The Group assesses at the end of each reporting period whether there is any indication that property and equipment, land use rights, right-of-use assets, associates and joint ventures and other non-financial assets may be impaired. If any such indication exists, or when impairment testing for an asset is required, the Group makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of its fair value less costs to sell and its value in use and is determined on an individual basis, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets, in which case the recoverable amount is determined for the CGU to which the asset belongs. Where the gross carrying amount of an asset exceeds its recoverable amount, the asset is considered to be impaired and is written down to its recoverable amount. In assessing value in use of an asset, the estimated future cash flows are discounted to their present values using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

An assessment is made at the end of each reporting period as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such an indication exists, the recoverable amount is estimated. A previously recognised impairment loss except for goodwill is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of any depreciation or amortisation, had no impairment loss been recognised for the asset in prior years. Any such reversal is recognised in profit or loss. After such a reversal, the depreciation or amortisation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

## (24) Provisions

Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made on the amount of the obligation.

A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation. When the effect of the time value of money is material, the best estimate is determined by discounting the related future cash outflows. When determining the best estimate, the Group considers factors pertaining to a contingency such as risks, uncertainties and time value of money. Where there is a range of possible outcome, and each possible outcome in that range is as likely as any other, the best estimate is the mid-point of that range. In other cases, the best estimate is determined according to the following circumstances:

- where the contingency involves a single item, the best estimate is the most likely outcome;
- where the contingency involves a large population of items, the best estimate is determined by weighting all possible outcomes by their associated probabilities.

The Group reviews the carrying amount of a provision at the end of reporting period. The carrying amount is adjusted to the current best estimate.

---

## (25) Contingent liabilities

A contingent liability is a possible obligation that arises from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group. It can also be a present obligation arising from past events that is not recognised because it is not probable that an outflow of economic resources will be required or the amount of obligation cannot be measured reliably. Contingent liabilities are disclosed in the notes to the financial statements. When a change in the probability of an outflow occurs so that outflow is probable and can be reliably estimated, it will then be recognised as a provision.

## (26) Preference shares and perpetual bonds

At initial recognition, the Group classifies the preference shares, perpetual bonds issued or their components as financial liabilities or equity instruments based on their contractual terms and their economic substance after considering the definition of financial liabilities and equity instruments.

Preference shares and perpetual bonds issued that should be classified as equity instruments are recognised in equity based on the actual amount received. Any distribution of dividends or interests during the instrument's duration is treated as profit appropriation. When the preference shares and perpetual bonds are redeemed according to the contractual terms, the redeemed amount is charged to equity.

## (27) Cash and cash equivalents

Cash and cash equivalents refer to monetary assets, which are short-term, highly liquid, readily convertible into known amounts of cash and subject to an insignificant risk of changes in value. Cash and cash equivalents comprise cash, unrestricted balances with central banks, amounts due from banks and other financial institutions and reverse repurchase agreements with original maturity of less than three months.

## (28) Revenue recognition

### Interest income

For all financial instruments measured at amortised cost and interest-generating financial instruments classified as financial assets measured at FVTOCI, interest income is recorded at the effective interest rate, which is the rate that exactly discounts estimated future cash receipts or payments through the expected life of the financial instrument, where appropriate, to the gross carrying amount of the financial asset, or the amortised cost of financial liability. The calculation takes into account all contractual terms of the financial instrument (for example, prepayment options) and includes any fees or incremental costs that are directly attributable to the instrument and are an integral part of the effective interest rate, but not expected credit losses.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of financial assets and is recognised as interest income, except for:

1. purchased or originated credit-impaired financial assets, whose interest income is calculated, since initial recognition, by applying the credit adjusted effective interest rate to their amortised cost; and
2. purchased or originated financial assets that are not credit-impaired but have subsequently become credit-impaired, whose interest income is calculated by applying the effective interest rate to their amortised cost (i.e., net of the expected credit loss provision). If, in a subsequent period, the financial assets quality improve so that they are no longer credit-impaired and the improvement in credit quality is related objectively to a certain event occurring after the application of the above-mentioned rules, then the interest income is calculated by applying the effective interest rate to their gross carrying amount.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## Fee and commission income

The Group earns fee and commission income from a diverse range of services it provides to its customers. The fee and commission income recognised by the Group reflects the amount of consideration to which the Group expects to be entitled in exchange for transferring promised services to customers, and income is recognised when its performance obligation in contracts is satisfied.

(i) The Group recognises income over time by measuring the progress towards the complete satisfaction of a performance obligation, if one of the following criteria is met:
- the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs;
- the customer controls the service provided by the Group in the course of performance; or
- the Group does not provide service with an alternative use to the Group, and the Group has an enforceable right to payment for performance completed to date.

(ii) In other cases, the Group recognises revenue at a point in time at which a customer obtains control of the promised services.

## Dividend income

Dividend income is recognised when the Group’s right to receive payment is established, it is probable that the related economic benefits will flow to the Group and the related income can be reliably measured.

## (29) Employee benefits

Employee benefits refer to all forms of consideration and other related expenditure given by the Group in exchange for services rendered by employees. The benefits payable are recognised as liabilities during the period in which the employees have rendered services to the Group. If the effect of discounting the benefits payable which are payable after one year from the end of the reporting period is significant, the Group will present them at their present value.

### Short-term employee benefits

Employee wages or salaries, bonuses, social security contributions such as medical insurance, work injury insurance, maternity insurance and housing fund, measured at the amount incurred or at the applicable benchmarks and rates, are recognised as a liability as the employee provides services, with a corresponding charge to profit or loss or included in the cost of assets where appropriate.

All eligible employees outside Chinese mainland participate in local defined contribution schemes. The Group contributes to these defined contribution schemes based on the requirements of the local regulatory bodies and charge to profit or loss or included in the cost of assets where appropriate.

### Post-employment benefits-defined contribution plans

Pursuant to the relevant laws and regulations of the PRC, the Group participates in a defined contribution basic pension insurance and unemployment insurance in the social insurance system established and managed by government organisations. The Group makes contributions to basic pension insurance and unemployment insurance plans based on the applicable benchmarks and rates stipulated by the organisations. Basic pension insurance and unemployment insurance contributions are recognised as liabilities with a corresponding charge to profit or loss or included in the cost of assets where appropriate as the related services are rendered by the employees.

In addition, employees in Chinese mainland also participate in defined contribution retirement benefit plans established by the Group (the "Annuity Plan"). The Group and its employees are required to contribute a certain percentage of the employees' previous year basic salaries to the Annuity Plan. The Group pays a fixed contribution into the Annuity Plan and has no obligation to pay further contributions if the Annuity Plan does not hold sufficient assets to pay all employee benefits. The contribution is charged to profit or loss when it is incurred.

---

# Termination benefits

Termination benefits are payable as a result of either the Group’s decision to terminate an employee’s employment before the due date of labour contract or an employee’s decision to accept an offer of benefits in exchange for the termination of employment. The Group recognises termination benefits in profit or loss at the earlier of:

- when the Group cannot unilaterally withdraw the offer of termination benefits because of an employee termination plan or a curtailment proposal; and
- when the Group has a specific, formal restructure plan involving payment of termination benefits, and the plan has started or informed each affected party about the influence of the plan, therefore each party formed reasonable expectations.

# Early retirement benefits

According to the Bank’s policy on early retirement benefits, certain employees are entitled to take leave of absence and in return receive a certain level of staff salaries and related benefits from the Bank. The salaries and benefit payments are made from the date of early retirement to the normal retirement date. Differences arising from changes in assumptions and estimates of the present value of the liabilities are recognised in profit or loss.

# (30) Income tax

Income tax comprises current and deferred tax. Income tax is recognised in the statement of profit or loss except that it relates to items recognised directly in equity, in which case it is recognised in equity.

## Current tax

Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted by the end of each reporting period.

## Deferred tax

Deferred tax is provided using the balance sheet liability method on temporary differences at the end of the reporting period between the tax bases of assets and liabilities and their carrying amounts.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

1. where the taxable temporary difference arises from the initial recognition of goodwill;
2. where the taxable temporary difference arises from the initial recognition of assets and liabilities in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable income (or deductible expenses), and such transaction does not give rise to equivalent taxable temporary differences and deductible temporary differences.

In respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures, deferred tax liabilities are recognised except where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not be reversed in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, carryforward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carryforward of unused tax credits and unused tax losses can be utilised, except that deferred tax assets are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction and that:

1. transaction is not a business combination;
2. at the time of the transaction, it affects neither the accounting profit nor taxable income (or deductible expenses);
3. such transaction does not give rise to equivalent taxable temporary differences and deductible temporary differences.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

In respect of deductible temporary differences associated with investments in subsidiaries, associates and joint ventures, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will be reversed in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

Deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period, and reflect the corresponding tax effect.

The carrying amount of deferred tax assets is reviewed at the end of the reporting period and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the deferred tax asset to be utilised. When it is virtually probable that sufficient taxable income will be available, the reduced amount can be reversed accordingly.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

## (31) Dividends

Dividends are recognised as a liability and deducted from equity when they are approved by the Bank's shareholders in general meetings and declared. Interim dividends are deducted from equity when they are approved and declared, and no longer at the discretion of the Bank. A dividend for the year that is approved after the end of the reporting period is disclosed as an event after the reporting period.

## 5. SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES

In the process of applying the Group's accounting policies, management is required to make judgements, estimates and assumptions of the effects of uncertain future events on the financial statements. The most significant use of judgements, estimates and assumptions concerning the uncertainty of the future at the end of the reporting period that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are described below.

### Measurement of the ECL

The measurement of the ECL allowance for financial assets measured at amortised cost and FVTOCI, and with exposure arising from loan commitments and financial guarantee contracts, is an area that requires the use of complex models and significant assumptions about future economic conditions and credit behaviour (the likelihood of customers defaulting and the resulting losses). Refer to Note 50(a) credit risk for the explanation of the parameters, assumptions and estimation techniques used in measuring ECL.

### Income tax

Determining income tax provisions requires the Group to estimate the future tax treatment of certain transactions. The Group evaluates tax implications of transactions in accordance with prevailing tax regulations and makes tax provisions accordingly. In addition, deferred tax assets are recognised to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilised. This requires significant judgement on the tax treatments of certain transactions and also significant assessment on the probability that adequate future taxable profits will be available for the deferred tax assets to be recovered.

### Fair value of financial instruments

If the market for a financial instrument is not active, the Group determines the fair value by using valuation technique, including using recent arm’s length market transactions between knowledgeable and willing parties, if available, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. Valuation technique makes maximum use of observable market input. However, where observable market inputs are not available, management makes estimates on such unobservable market inputs.

---

# Determination of control over investees

Management applies its judgement to determine whether the control indicators set out in Note 4(2) indicate that the Group controls securitisation vehicles, wealth management products, investment funds, trust plans, asset management plans and asset-backed securities.

## Securitisation vehicles

Certain securitisation vehicles sponsored by the Group under its securitisation programme are run according to predetermined criteria at the initial set up of the vehicles. In addition, the Group is exposed to variability of returns from the vehicles through holding interests in the vehicles and the day-to-day servicing of the underlying assets in the vehicles which is carried out by the Group under a servicing contract. Key decisions are usually required only when underlying assets go into default. Therefore, in considering whether it has control, the Group considers whether it can use its power to influence these vehicles’ returns.

## Wealth management products, investment funds, trust plans, asset management plans and asset-backed securities

The Group acts as manager or investor in a number of wealth management products, investment funds, trust plans, asset management plans and assets-backed securities. When assessing whether the Group controls such a structured entity, the Group would determine whether it exercises the decision-making rights as a principal or an agent and usually focuses on the assessment of the aggregate economic interests of the Group in the entity (comprising any carried interests and expected management fees) and the decision-making authority of the entity. The Group would also determine whether another entity with decision-making rights is acting as an agent for it.

# 6. NET INTEREST INCOME

| | 2025 | 2024 |
| :--- | :---: | :---: |
| **Interest income on:** | | |
| Loans and advances to customers | 838,983 | 937,938 |
| — Corporate loans and advances | 547,904 | 599,296 |
| — Personal loans | 270,418 | 319,897 |
| — Discounted bills | 20,661 | 18,745 |
| Financial investments | 387,636 | 365,208 |
| Due from central banks | 50,580 | 54,174 |
| Due from banks and other financial institutions (i) | 54,632 | 70,628 |
| | 1,331,831 | 1,427,948 |
| **Interest expense on:** | | |
| Due to customers | (474,363) | (564,039) |
| Due to banks and other financial institutions (ii) | (146,721) | (156,622) |
| Debt securities issued and certificates of deposit | (75,621) | (69,882) |
| | (696,705) | (790,543) |
| **Net interest income** | 635,126 | 637,405 |

(i) Includes interest income on reverse repurchase agreements.
(ii) Includes interest expense on due to central banks and repurchase agreements.

The above interest income and expense are related to financial instruments which are not measured at fair value through profit or loss.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## 7. NET FEE AND COMMISSION INCOME

| | 2025 | 2024 |
| :--- | :---: | :---: |
| **Fee and commission income on:** | | |
| Settlement, clearing business and cash management | 42,376 | 42,755 |
| Personal wealth management and private banking services | 19,176 | 17,880 |
| Investment banking business | 18,815 | 19,724 |
| Bank card business | 16,557 | 17,853 |
| Corporate wealth management services | 12,955 | 10,850 |
| Asset custody business | 8,180 | 8,045 |
| Guarantee and commitment business | 3,173 | 4,185 |
| Trust and agency services | 2,008 | 2,019 |
| Others | 3,482 | 2,866 |
| | 126,722 | 126,177 |
| Fee and commission expense | (15,551) | (16,780) |
| **Net fee and commission income** | **111,171** | **109,397** |

Included in personal wealth management and private banking services, corporate wealth management services, asset custody business, trust and agency services and so on was an amount of RMB17,036 million with respect to trust and other fiduciary activities for 2025 (2024: RMB15,850 million).

## 8. NET TRADING INCOME

| | 2025 | 2024 |
| :--- | :---: | :---: |
| Debt securities | 9,340 | 13,644 |
| Derivatives and others | 2,555 | 4,293 |
| Equity investments | 6,615 | 1,503 |
| | 18,510 | 19,440 |

The above amounts mainly include gains and losses arising from the buying and selling of, the interest income and expense on, and the changes in fair value of financial assets and liabilities held for trading.

## 9. NET GAINS ON FINANCIAL INVESTMENTS

| | 2025 | 2024 |
| :--- | :---: | :---: |
| Net gains on financial instruments measured at FVTPL, including: | 7,475 | 13,893 |
| Net losses on financial instruments designated as at FVTPL | (4,774) | (5,087) |
| Net gains on disposal of financial instruments measured at FVTOCI | 4,808 | 2,490 |
| Dividend income from equity investments designated as at FVTOCI, including: | 3,480 | 3,067 |
| Derecognised during the year | 783 | 914 |
| Held at the end of current year | 2,697 | 2,153 |
| Net gains on disposal of financial instruments measured at amortised cost | 19,023 | 3,446 |
| Others | 20 | 65 |
| | 34,806 | 22,961 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## 10. OTHER OPERATING INCOME/(EXPENSE), NET

| | 2025 | 2024 |
| :--- | :--- | :--- |
| Net operating lease business income | 10,703 | 10,840 |
| Net insurance business expense | (8,252) | (7,606) |
| Net gains on disposal of property and equipment, repossessed assets and other assets | 536 | 1,352 |
| Net losses from foreign exchange and foreign exchange products | (490) | (6,911) |
| Others | (715) | (752) |
| **Total** | **1,782** | **(3,077)** |

## 11. OPERATING EXPENSES

| | 2025 | 2024 |
| :--- | :--- | :--- |
| **Staff costs:** | | |
| Salaries and bonuses | 95,842 | 93,872 |
| Staff benefits | 31,064 | 30,941 |
| Post-employment benefits – defined contribution plans (i) | 19,543 | 19,741 |
| **Subtotal staff costs** | **146,449** | **144,554** |
| **Property and equipment expenses:** | | |
| Depreciation charge for property and equipment | 15,093 | 15,250 |
| Depreciation charge for right-of-use assets and other leasing expense | 6,877 | 7,182 |
| Repairs and maintenance charges | 3,369 | 2,724 |
| Utility expenses | 2,065 | 2,118 |
| **Subtotal property and equipment expenses** | **27,404** | **27,274** |
| Amortisation | 5,468 | 5,157 |
| Other administrative expenses (ii) | 28,148 | 28,705 |
| Taxes and surcharges | 10,658 | 10,765 |
| Others | 28,747 | 25,700 |
| **Total** | **246,874** | **242,155** |

(i) The defined contribution plans mainly include pension insurance, unemployment insurance and the annuity plan.
(ii) The principal auditor’s remuneration of RMB195 million for the year (2024: RMB195 million) is included in other administrative expenses.
(iii) In 2025, the Group incurred RMB5,573 million (2024: RMB5,697 million) of expensed research and development expenditures and RMB2,286 million (2024: RMB2,249 million) of capitalized research and development expenditures.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## 12. DIRECTORS’ AND SUPERVISORS’ REMUNERATION

Details of the directors’ and supervisors’ remuneration before tax, as disclosed pursuant to the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Hong Kong Companies Ordinance, are as follows:

| Year ended 31 December 2025 | | | | | |
| :--- | :--- | :---: | :---: | :---: | :---: |
| **Name** | **Position** | **Remuneration before tax paid (1) (RMB'000)** | **Contribution by the employer to social insurance, housing allowance, annuities, and additional medical insurances (2) (RMB'000)** | **Fees (3) (RMB'000)** | **Total remuneration before tax (4)=(1)+(2)+(3) (RMB'000)** |
| Liao Lin | Chairman, Executive Director | 686 | 240 | – | 926 |
| Liu Jun | Vice Chairman, Executive Director, President, Chief Compliance Officer | 686 | 240 | – | 926 |
| Duan Hongtao (i) | Executive Director | 617 | 233 | – | 850 |
| Wang Jingwu | Executive Director, Senior Executive Vice President, Chief Risk Officer | 617 | 233 | – | 850 |
| Cao Liqun | Non-executive Director | – | – | – | – |
| Dong Yang | Non-executive Director | – | – | – | – |
| Zhong Mantao | Non-executive Director | – | – | – | – |
| Norman Chan Tak Lam | Independent Non-executive Director | – | – | 520 | 520 |
| Herbert Walter | Independent Non-executive Director | – | – | 470 | 470 |
| Murray Horn | Independent Non-executive Director | – | – | 507 | 507 |
| Chen Guanting | Independent Non-executive Director | – | – | 440 | 440 |
| Li Weiping (ii) | Independent Non-executive Director | – | – | 419 | 419 |
| Lee Kam Hung Lawrence (iii) | Independent Non-executive Director | – | – | – | – |
| Lu Yongzhen (iv) | Former Non-executive Director | – | – | – | – |
| Feng Weidong (v) | Former Non-executive Director | – | – | – | – |
| Chen Yifang (vi) | Former Non-executive Director | – | – | – | – |
| Fred Zuliu Hu (vii) | Former Independent Non-executive Director | – | – | 147 | 147 |
| Huang Li | Former Employee Supervisor | – | – | 38 | 38 |
| Zhang Jie | Former External Supervisor | – | – | 188 | 188 |
| Liu Lanbao | Former External Supervisor | – | – | 188 | 188 |
| **Total** | | **2,606** | **946** | **2,917** | **6,469** |

**Note:**
Since January 2015, the remuneration of the Chairman of the Board of Directors, the President and other executives of the Bank has followed the State’s policies relating to the remuneration reform on executives of central enterprises.

The total compensation packages for the Chairman of the Board of Directors, President and Executive Directors of the Bank have not been finalized in accordance with the regulations of the PRC relevant authorities. The remuneration not yet accrued is not expected to have a significant impact on the Group’s 2025 consolidated financial statements. The total compensation packages will be further disclosed when determined by the relevant authorities.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

The Board of Supervisors of the Bank was officially dissolved in September 2025. The supervisory compensation presented in the above table represents the total remuneration received by supervisors for performing their duties during the existence of the Board of Supervisors of the Bank in 2025.

Fees of Mr. Huang Li are his allowances obtained as Employee Supervisor of the Bank, excluding his remuneration with the Bank in accordance with the employee remuneration system.

As at the approval date of the consolidated financial statements for the year ended 31 December 2025, changes of directors of the Bank were as follows:

1. **(i)** At the First Extraordinary Shareholders’ Meeting of 2025 held on 16 October 2025, Mr. Duan Hongtao was elected as Executive Director of the Bank, and his qualification was approved by the NFRA in October 2025. Due to position change, Mr. Duan Hongtao has taken office as Deputy Secretary of the Party Committee of the Bank from June 2025, and he tendered the resignation to the Bank in August 2025, resigning from his positions as Senior Executive Vice President, Board Secretary and Company Secretary of the Bank.
2. **(ii)** At the Third Extraordinary Shareholders’ General Meeting of 2024 held on 2 December 2024, Mr. Li Weiping was elected as Independent Non-executive Director of the Bank, and his qualification was approved by the NFRA in February 2025.
3. **(iii)** At the First Extraordinary Shareholders’ Meeting of 2025 held on 16 October 2025, Mr. Lee Kam Hung Lawrence was elected as Independent Non-executive Director of the Bank, and his qualification was approved by the NFRA in January 2026.
4. **(iv)** In November 2025, Mr. Lu Yongzhen ceased to act as Non-executive Director of the Bank due to expiration of his term of office.
5. **(v)** In May 2025, Mr. Feng Weidong ceased to act as Non-executive Director of the Bank due to his age.
6. **(vi)** In May 2025, Ms. Chen Yifang ceased to act as Non-executive Director of the Bank due to expiration of her term of office.
7. **(vii)** In April 2025, Mr. Fred Zuliu Hu ceased to act as Independent Non-executive Director of the Bank due to expiration of his term of office.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

### Year ended 31 December 2024

| Name | Position | Fees (1) | Remuneration (2) | Discretionary bonuses (3) | Contribution by the employer to social insurance, housing allowance, annuities and additional medical insurances (4) | Total emoluments before tax (5)=(1)+(2)+(3)+(4) | Of which: deferred payment (6) | Actual amount of remuneration before tax paid (7)=(5)-(6) |
| :--- | :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| | | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 | RMB'000 |
| Liao Lin (i) | Chairman, Executive Director | – | 392 | 539 | 235 | 1,166 | – | 1,166 |
| Liu Jun (ii) | Vice Chairman, Executive Director, President | – | 261 | 359 | 159 | 779 | – | 779 |
| Wang Jingwu | Executive Director, Senior Executive Vice President, Chief Risk Officer | – | 353 | 485 | 229 | 1,067 | – | 1,067 |
| Lu Yongzhen | Non-executive Director | – | – | – | – | – | – | – |
| Feng Weidong | Non-executive Director | – | – | – | – | – | – | – |
| Cao Liqun | Non-executive Director | – | – | – | – | – | – | – |
| Chen Yifang | Non-executive Director | – | – | – | – | – | – | – |
| Dong Yang | Non-executive Director | – | – | – | – | – | – | – |
| Zhong Mantao (iii) | Non-executive Director | – | – | – | – | – | – | – |
| Fred Zuliu Hu | Independent Non-executive Director | 440 | – | – | – | 440 | – | 440 |
| Norman Chan Tak Lam | Independent Non-executive Director | 503 | – | – | – | 503 | – | 503 |
| Herbert Walter (iv) | Independent Non-executive Director | 377 | – | – | – | 377 | – | 377 |
| Murray Horn (v) | Independent Non-executive Director | 208 | – | – | – | 208 | – | 208 |
| Chen Guanting (vi) | Independent Non-executive Director | 37 | – | – | – | 37 | – | 37 |
| Li Weiping (vii) | Independent Non-executive Director | – | – | – | – | – | – | – |
| Huang Li | Employee Supervisor | 50 | – | – | – | 50 | – | 50 |
| Zhang Jie | External Supervisor | 250 | – | – | – | 250 | – | 250 |
| Liu Lanbiao | External Supervisor | 250 | – | – | – | 250 | – | 250 |
| Chen Siqing (viii) | Former Chairman, Executive Director | – | 33 | 45 | 19 | 97 | – | 97 |
| Anthony Francis Neoh (ix) | Former Independent Non-executive Director | 130 | – | – | – | 130 | – | 130 |
| Yang Siu Shun (x) | Former Independent Non-executive Director | 313 | – | – | – | 313 | – | 313 |
| Shen Si (xi) | Former Independent Non-executive Director | 449 | – | – | – | 449 | – | 449 |
| **Total** | | **3,007** | **1,039** | **1,428** | **642** | **6,116** | **–** | **6,116** |

**Note: Since January 2015, the remuneration of the Chairman of the Board of Directors, the President and other executives of the Bank has followed the State's policies relating to the remuneration reform on executives of central enterprises.**

**The remuneration before tax of Directors and Supervisors for 2024 set out in the table above represents the total amount of annual remuneration for each of these individuals, which include the amounts disclosed in the 2024 Annual Report.**

---

# Notes to the Consolidated Financial Statements
## (In RMB millions, unless otherwise stated)

Pursuant to the PRC relevant regulations, a portion of the discretionary bonus payments for the Chairman of the Board of Directors, the President, Executive Directors and other senior management members are deferred and will be determined based on the future performance.

Fees of Mr. Huang Li are his allowances obtained as Employee Supervisor of the Bank, excluding his remuneration with the Bank in accordance with the employee remuneration system.

As at the approval date of the consolidated financial statements for the year ended 31 December 2024, changes of directors of the Bank were as follows:

1. In February 2024, Mr. Liao Lin resigned from the position of President of the Bank due to change of job assignments. In order to ensure the smooth operation and management of the Bank, Mr. Liao Lin performs the duties and powers of the President to the date on which the new President of the Bank officially takes office according to the regulation and the Articles of Association of the Bank. On 1 February 2024, the Board of Directors of the Bank elected Mr. Liao Lin as Chairman of the Board of Directors of the Bank, and his qualification was approved by the NFRA in February 2024.
2. On 22 May 2024, the Board of Directors of the Bank elected Mr. Liu Jun as Vice Chairman of the Board of Directors of the Bank, which took effect upon his appointment as Executive Director of the Bank being considered and approved by the Bank's Annual General Meeting for the Year 2023 on 28 June 2024; On 22 May 2024, the Board of Directors of the Bank appointed Mr. Liu Jun as President of the Bank, and his appointment took effect upon the consideration and approval by the Board of Directors; At the Bank's Annual General Meeting for the Year 2023 held on 28 June 2024, Mr. Liu Jun was elected as Executive Director of the Bank, and his term of office as Executive Director started from the date of approval by the Shareholders' General Meeting.
3. At the Bank's Annual General Meeting for the Year 2023 held on 28 June 2024, Ms. Zhong Mantao was elected as Non-executive Director of the Bank, and her qualification was approved by the NFRA in September 2024.
4. At the First Extraordinary General Meeting of 2023 held on 30 November 2023, Mr. Herbert Walter was elected as Independent Non-executive Director of the Bank, and his qualification was approved by the NFRA in March 2024.
5. On 29 February 2024, the First Extraordinary General Meeting of 2024 of the Bank elected Mr. Murray Horn as Independent Non-executive Director of the Bank, and his qualification was approved by the NFRA in August 2024.
6. On 20 September 2024, the Second Extraordinary General Meeting of 2024 of the Bank elected Mr. Chen Guanting as Independent Non-executive Director of the Bank, and his qualification was approved by the NFRA in November 2024.
7. On 2 December 2024, the Third Extraordinary General Meeting of 2024 of the Bank elected Mr. Li Weiping as Independent Non-executive Director of the Bank, and his qualification was approved by the NFRA in February 2025.
8. In February 2024, Mr. Chen Siqing ceased to act as Chairman of the Board of Directors and Executive Director of the Bank due to his age.
9. In March 2024, Mr. Anthony Francis Neoh ceased to act as Independent Non-executive Director of the Bank due to expiration of his term of office.
10. In August 2024, Mr. Yang Siu Shun ceased to act as Independent Non-executive Director of the Bank due to expiration of his term of office.
11. In November 2024, Mr. Shen Si ceased to act as Independent Non-executive Director of the Bank due to expiration of his term of office.

The Non-executive Directors of the Bank who were recommended by Huijin received emoluments from Huijin in respect of their services during the year.

In 2025, there was no arrangement under which a Director or a Supervisor of the Bank waived or agreed to waive any remuneration (2024: None).

In 2025, no emolument was paid by the Group to any of the Directors or Supervisors as an inducement to join or upon joining the Group or as a compensation for loss of office (2024: Nil).

---

# 13. FIVE HIGHEST PAID INDIVIDUALS

The five highest paid individuals of the Group are employees of the Bank's subsidiaries. Their emoluments were determined based on the prevailing market rates in the respective countries/regions where the subsidiaries are operating. None of them are directors, supervisors or key management personnel of the Bank whose emoluments are disclosed in Notes 12 and 48(g) to the consolidated financial statements. Details of the emoluments in respect of the five highest paid individuals are as follows:

| | 2025 | 2024 |
| :--- | :---: | :---: |
| | **RMB'000** | **RMB'000** |
| Salaries and allowances | 29,136 | 20,136 |
| Discretionary bonuses | 38,996 | 38,003 |
| Others | 875 | 505 |
| **Total** | **69,007** | **58,644** |

The number of these individuals whose emoluments fell within the following bands is set out below:

| | **Number of employees** | |
| :--- | :---: | :---: |
| | **2025** | **2024** |
| RMB9,000,001 Yuan to RMB11,000,000 Yuan | — | 2 |
| RMB11,000,001 Yuan to RMB13,000,000 Yuan | 2 | 2 |
| RMB13,000,001 Yuan to RMB15,000,000 Yuan | 2 | — |
| RMB15,000,001 Yuan to RMB17,000,000 Yuan | 1 | 1 |
| **Total** | **5** | **5** |

In 2025, no emolument was paid by the Group to any of these non-director and non-supervisor individuals as an inducement to join or upon joining the Group or as a compensation for loss of office (2024: Nil).

# 14. CREDIT IMPAIRMENT LOSSES

| | 2025 | 2024 |
| :--- | :---: | :---: |
| Loans and advances to customers (Note 23) | 149,620 | 122,479 |
| Financial investments | | |
| Financial investments measured at amortised cost | (2,090) | (507) |
| Financial assets measured at FVTOCI | 200 | (675) |
| Credit commitments | (830) | 690 |
| Others | (13,927) | 3,752 |
| **Total** | **132,973** | **125,739** |

---

# 15. INCOME TAX EXPENSE

## (a) Income tax expense

| | 2025 | 2024 |
| :--- | :---: | :---: |
| Current income tax expense | | |
| Chinese mainland | 50,116 | 47,474 |
| Hong Kong SAR and Macao SAR | 1,602 | 1,389 |
| Other overseas jurisdictions | 5,981 | 4,998 |
| | 57,699 | 53,861 |
| Deferred income tax expense | (4,030) | 1,020 |
| **Total** | **53,669** | **54,881** |

In December 2021, the Organisation for Economic Co-operation and Development published Tax Challenges Arising from the Digitalisation of the Economy — Global Anti-Base Erosion Model Rules ("Pillar Two Model Rules"). According to the rules of Pillar Two, low-tax jurisdictions with effective tax rate below 15% may have a Top-up Tax impact.

Some jurisdictions where the Group's overseas entities are located, had implemented Pillar Two legislation during the reporting period. The Group has assessed the impact of Top-up Tax under Pillar Two. The legislation in the aforementioned jurisdictions has no significant impact on the Group's financial position and operating results as at 31 December 2025. The Group applies the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes, as provided in the amendments to IAS 12 on Pillar Two Model Rules.

## (b) Reconciliation between income tax and accounting profit

PRC statutory income tax rate is 25%. Taxes on profits assessable elsewhere have been calculated at the applicable rates of tax prevailing in the countries/regions in which the Group operates in. The Group has reconciled income tax expense applicable to profit before taxation at the PRC statutory income tax rate to actual income tax expense for the Group as follows:

| | 2025 | 2024 |
| :--- | :---: | :---: |
| Profit before taxation | 424,435 | 421,827 |
| Tax at the PRC statutory income tax rate | 106,109 | 105,457 |
| Effects of different applicable rates of tax prevailing in other countries/regions | (318) | (672) |
| Effects of non-deductible expenses (i) | 25,284 | 22,556 |
| Effects of non-taxable income (ii) | (75,586) | (69,966) |
| Effects of profits attributable to associates and joint ventures | (191) | (270) |
| Effects of other | (1,629) | (2,224) |
| **Income tax expense** | **53,669** | **54,881** |

(i) The non-deductible expenses mainly represent non-deductible impairment allowance and write-offs.
(ii) The non-taxable income mainly represents interest income arising from the PRC government bonds and municipal debts.

# 16. PROFIT ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY

The consolidated profit attributable to equity holders of the parent company for the year ended 31 December 2025 includes a profit of RMB352,266 million (2024: RMB345,454 million) which has been dealt with in the financial statements of the Bank (Note 52).

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## 17. DIVIDENDS

| | 2025 | 2024 |
| :--- | :---: | :---: |
| **Dividends on ordinary shares declared and paid:** | | |
| Interim dividends on ordinary shares for 2025: RMB0.1414 per share (2024: RMB0.1434 per share) | 50,396 | 51,109 |
| **Dividends or interests declared and paid to other equity instrument holders of the parent company:** | | |
| Dividends on preference shares | 4,997 | 5,819 |
| Interests on perpetual bonds distributed | 6,767 | 9,144 |
| | 11,764 | 14,963 |
| **Dividends on ordinary shares proposed for approval (not recognised as at 31 December):** | | |
| Year-end dividends on ordinary shares for 2025: RMB0.1689 per share (2024: RMB0.1646 per share) | 60,197 | 58,664 |

## 18. EARNINGS PER SHARE

| | 2025 | 2024 |
| :--- | :---: | :---: |
| **Earnings:** | | |
| Profit for the year attributable to equity holders of the parent company | 368,562 | 365,863 |
| Less: Profit for the year attributable to other equity instrument holders of the parent company | (11,764) | (14,963) |
| Profit for the year attributable to ordinary shareholders of the parent company | 356,798 | 350,900 |
| **Shares:** | | |
| Weighted average number of ordinary shares in issue (in million shares) | 356,407 | 356,407 |
| Basic earnings per share (RMB yuan) | 1.00 | 0.98 |
| Diluted earnings per share (RMB yuan) | 1.00 | 0.98 |

Basic and diluted earnings per share were calculated using the profit for the year attributable to ordinary shareholders of the parent company divided by the weighted average number of ordinary shares in issue.

---

# 19. CASH AND BALANCES WITH CENTRAL BANKS

| | 31 December 2025 | 31 December 2024 |
| :--- | ---: | ---: |
| Cash on hand | 72,868 | 72,069 |
| Balances with central banks | | |
| Mandatory reserves (i) | 2,663,789 | 2,634,893 |
| Surplus reserves (ii) | 679,586 | 393,112 |
| Fiscal deposits and others | 256,607 | 221,179 |
| Accrued interest | 1,708 | 1,658 |
| **Total** | **3,674,558** | **3,322,911** |

(i) The Group is required to place mandatory reserve deposits and other restricted deposits with the PBC and certain central banks of overseas countries or regions where it has operations. They are not available for use in the Group’s daily operations. As at 31 December 2025, the mandatory reserve deposits ratios of the domestic branches of the Bank in respect of customer deposits denominated in RMB and foreign currencies were 7.5% (31 December 2024: 8.0%) and 4.0% (31 December 2024: 4.0%) respectively. The mandatory reserve funds placed by domestic subsidiaries of the Group are determined by the PBC. The amounts of mandatory reserve deposits placed with the central banks of those countries or regions outside Chinese mainland are determined by local jurisdictions.

(ii) Surplus reserves with the PBC include funds for the purpose of cash settlement and other kinds of unrestricted deposits.

# 20. DUE FROM BANKS AND OTHER FINANCIAL INSTITUTIONS

| | 31 December 2025 | 31 December 2024 |
| :--- | ---: | ---: |
| Deposits with banks and other financial institutions: | | |
| Banks operating in Chinese mainland | 151,978 | 247,111 |
| Other financial institutions operating in Chinese mainland | 42,379 | 58,112 |
| Banks and other financial institutions operating outside Chinese mainland | 224,832 | 172,465 |
| Accrued interest | 3,889 | 3,777 |
| | 423,078 | 481,465 |
| Less: Allowance for impairment losses | (676) | (700) |
| | 422,402 | 480,765 |
| | | |
| Placements with banks and other financial institutions: | | |
| Banks operating in Chinese mainland | 197,146 | 190,427 |
| Other financial institutions operating in Chinese mainland | 232,333 | 221,474 |
| Banks and other financial institutions operating outside Chinese mainland | 409,320 | 323,836 |
| Accrued interest | 4,880 | 7,021 |
| | 843,679 | 742,758 |
| Less: Allowance for impairment losses | (2,062) | (3,647) |
| | 841,617 | 739,111 |
| **Total** | **1,264,019** | **1,219,876** |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## 21. DERIVATIVE FINANCIAL INSTRUMENTS

A derivative is a financial instrument, the value of which changes in response to the changes in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or other similar variables. The Group uses derivative financial instruments including forwards, swaps, options and futures.

The notional amount of a derivative represents the underlying amount of the specific financial instruments mentioned above. It indicates the volume of business transacted by the Group but does not reflect the risk.

The notional amounts and fair values of derivative financial instruments held by the Group are set out below:

| | 31 December 2025 | 31 December 2025 | 31 December 2025 | 31 December 2024 | 31 December 2024 | 31 December 2024 |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| | **Notional amounts** | **Fair values Assets** | **Fair values Liabilities** | **Notional amounts** | **Fair values Assets** | **Fair values Liabilities** |
| Exchange rate contracts | 11,967,681 | 74,791 | (45,520) | 11,227,428 | 194,358 | (158,566) |
| Interest rate contracts | 3,954,950 | 9,135 | (8,665) | 5,312,282 | 13,114 | (15,019) |
| Commodity derivatives and others | 3,085,192 | 46,488 | (79,897) | 1,347,756 | 14,889 | (24,210) |
| **Total** | **19,007,823** | **130,414** | **(134,082)** | **17,887,466** | **222,361** | **(197,795)** |

### (a) Cash flow hedges

The Group’s cash flow hedges consist of interest rate contracts, exchange rate contracts, equity and other derivatives that are used to protect against exposures to variability of future cash flows.

Included in the above derivative financial instruments, those designated as hedging instruments in the Group’s cash flow hedges are set out below:

| **31 December 2025** | Notional amounts: Within three months | Notional amounts: Over three months but within one year | Notional amounts: Over one year but within five years | Notional amounts: Over five years | Notional amounts: Total | Fair values: Assets | Fair values: Liabilities |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Interest rate contracts | 38 | 4,264 | 12,968 | 101 | 17,371 | 44 | (2) |
| Exchange rate contracts | 38,692 | 77,397 | 422 | – | 116,511 | 513 | (427) |
| Equity and other derivatives | 385 | 2,175 | 15 | – | 2,575 | 524 | – |
| **Total** | **39,115** | **83,836** | **13,405** | **101** | **136,457** | **1,081** | **(429)** |

| **31 December 2024** | Notional amounts: Within three months | Notional amounts: Over three months but within one year | Notional amounts: Over one year but within five years | Notional amounts: Over five years | Notional amounts: Total | Fair values: Assets | Fair values: Liabilities |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Interest rate contracts | – | 949 | – | – | 949 | 13 | – |
| Exchange rate contracts | 53,203 | 82,784 | 4,645 | – | 140,632 | 2,213 | (1,203) |
| Equity and other derivatives | 38 | 1,900 | 58 | 1 | 1,997 | 258 | (3) |
| **Total** | **53,241** | **85,633** | **4,703** | **1** | **143,578** | **2,484** | **(1,206)** |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

Details of the Group’s hedged risk exposures in cash flow hedges and the corresponding effect on equity are as follows:

### 31 December 2025

| | Carrying amount of hedged items: Assets | Carrying amount of hedged items: Liabilities | Hedging instruments: Effect on other comprehensive income during the current year | Hedging instruments: Accumulated effect on other comprehensive income |
| :--- | :---: | :---: | :---: | :---: |
| Securities (i) (i) Securities are included in financial investments measured at FVTOCI, financial investments measured at amortised cost, and certificates of deposit. | 13,787 | (37,804) | 70 | (221) |
| Loans and advances to customers | 21,909 | – | (96) | 36 |
| Others (ii) (ii) Other hedged items are included in due from banks and other financial institutions, other assets, due to banks and other financial institutions, due to customers and other liabilities. | 41,847 | (21,819) | 735 | (3,419) |
| **Total** | **77,543** | **(59,623)** | **709** | **(3,604)** |

### 31 December 2024

| | Carrying amount of hedged items: Assets | Carrying amount of hedged items: Liabilities | Hedging instruments: Effect on other comprehensive income during the current year | Hedging instruments: Accumulated effect on other comprehensive income |
| :--- | :---: | :---: | :---: | :---: |
| Securities (i) (i) Securities are included in financial investments measured at FVTOCI, financial investments measured at amortised cost, debt securities issued and certificates of deposit. | 1,091 | (47,818) | (884) | (291) |
| Loans and advances to customers | 41,479 | – | (37) | 132 |
| Others (ii) (ii) Other hedged items are included in due from banks and other financial institutions, other assets, due to banks and other financial institutions, due to customers, repurchase agreements and other liabilities. | 35,349 | (16,733) | (524) | (4,154) |
| **Total** | **77,919** | **(64,551)** | **(1,445)** | **(4,313)** |

The ineffectiveness recognised in profit or loss that arises from the cash flow hedges was immaterial for 2025 and 2024.

## (b) Fair value hedges

Fair value hedges are used by the Group to protect against changes in fair value of financial assets and financial liabilities due to movements in market interest rates and exchange rates. The Group mainly used interest rate contracts, exchange rate contracts, equity and other derivatives as hedging instruments to hedge the interest risk and exchange risk of financial assets and financial liabilities.

The changes in fair value of the hedging instruments and net gains or losses arising from the hedged risk relating to the hedged items are set out below:

| (Losses)/gains arising from fair value hedges, net: | 2025 | 2024 |
| :--- | :---: | :---: |
| Hedging instruments | (2,655) | (533) |
| Hedged items | 2,565 | 521 |
| **Total** | **(90)** | **(12)** |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

Included in the above derivative financial instruments, those designated as hedging instruments in fair value hedges are set out below:

## 31 December 2025

| | Notional amount: Within three months | Notional amount: Over three months but within one year | Notional amount: Over one year but within five years | Notional amount: Over five years | Notional amount: Total | Fair values: Assets | Fair values: Liabilities |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| Interest rate contracts | 2,884 | 10,989 | 29,470 | 6,884 | 50,227 | 1,030 | (275) |
| Equity and other derivatives | 680 | 2,580 | – | – | 3,260 | – | (1,597) |
| **Total** | **3,564** | **13,569** | **29,470** | **6,884** | **53,487** | **1,030** | **(1,872)** |

## 31 December 2024

| | Notional amount: Within three months | Notional amount: Over three months but within one year | Notional amount: Over one year but within five years | Notional amount: Over five years | Notional amount: Total | Fair values: Assets | Fair values: Liabilities |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| Interest rate contracts | 2,362 | 11,249 | 34,319 | 10,692 | 58,622 | 2,083 | (256) |
| **Total** | **2,362** | **11,249** | **34,319** | **10,692** | **58,622** | **2,083** | **(256)** |

Details of the Group’s hedged risk exposures in fair value hedges are set out below:

## 31 December 2025

| | Carrying amount: Assets | Carrying amount: Liabilities | Accumulated changes to fair value: Assets | Accumulated changes to fair value: Liabilities |
| :--- | :---: | :---: | :---: | :---: |
| Securities (i) | 48,127 | (1,409) | (828) | 1 |
| Loans and advances to customers | 809 | – | (23) | – |
| Others (ii) | 140 | – | 1,591 | – |
| **Total** | **49,076** | **(1,409)** | **740** | **1** |

(i) Securities are included in financial investments measured at FVTOCI, financial investments measured at amortised cost, debt securities issued and certificates of deposit.
(ii) Other hedged items are included in due from banks and other financial institutions and other assets.

## 31 December 2024

| | Carrying amount: Assets | Carrying amount: Liabilities | Accumulated changes to fair value: Assets | Accumulated changes to fair value: Liabilities |
| :--- | :---: | :---: | :---: | :---: |
| Securities (i) | 50,613 | (1,276) | (359) | 26 |
| Loans and advances to customers | 2,825 | – | (56) | – |
| Others (ii) | 182 | (2,531) | 1 | 13 |
| **Total** | **53,620** | **(3,807)** | **(414)** | **39** |

(i) Securities are included in financial investments measured at FVTOCI, financial investments measured at amortised cost and debt securities issued.
(ii) Other hedged items are included in due from banks and other financial institutions, due to banks and other financial institutions and due to customers.

---

## (c) Net investment hedges

The Group’s consolidated statement of financial position is affected by exchange differences between the functional currency of the Bank and functional currencies of its branches and subsidiaries. The Group hedges such exchange exposures under certain circumstances. Hedging is undertaken by using customer deposits taken in the same currencies as the functional currencies of related branches and subsidiaries which are accounted for as hedges of certain net investments in foreign operations.

As at 31 December 2025, an accumulated net losses from the hedging instrument of RMB756 million was recognised in other comprehensive income (31 December 2024: accumulated net losses of RMB1,587 million). The ineffectiveness recognised in profit or loss that arises from the net investment hedges was immaterial for 2025 and 2024.

## (d) Offsetting of financial instruments

In accordance with the principle of offsetting financial instruments, the Group offsets certain derivative financial assets, derivative financial liabilities and variation margin and presents the net amounts after offsetting in the financial statements.

| | 31 December 2025 Gross amounts | 31 December 2025 Net amounts | 31 December 2024 Gross amounts | 31 December 2024 Net amounts |
| :--- | :---: | :---: | :---: | :---: |
| Derivative financial assets | 156,794 | 57,100 | 83,641 | 25,144 |
| Derivative financial liabilities | 150,873 | 49,152 | 83,971 | 27,845 |

## (e) Counterparty credit risk-weighted assets of derivative financial instruments

The credit risk-weighted assets in respect of the above derivatives of the Group as at the end of the reporting period are as follows:

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| Counterparty credit default risk-weighted assets | 160,167 | 117,495 |
| *Including: Non-netting settled credit default risk-weighted assets* | 79,356 | 69,662 |
| *Netting settled credit default risk-weighted assets* | 80,811 | 47,833 |
| Credit value adjustment risk-weighted assets | 46,906 | 42,112 |
| Central counterparties credit risk-weighted assets | 5,085 | 3,667 |
| **Total** | 212,158 | 163,274 |

# 22. REVERSE REPURCHASE AGREEMENTS

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| **Measured at amortised cost:** | | |
| Reverse repurchase agreements — bills | 94,859 | 188,935 |
| Reverse repurchase agreements — securities | 417,701 | 1,000,277 |
| Accrued interest | 324 | 721 |
| Less: Allowance for impairment losses | (32) | (33) |
| **Subtotal** | 512,852 | 1,189,900 |
| **Measured at FVTPL:** | | |
| Reverse repurchase agreements — securities | 17,885 | 20,317 |
| **Total** | 530,737 | 1,210,217 |

---

# 23. LOANS AND ADVANCES TO CUSTOMERS

## 23.1 Loans and advances to customers by type of measurement:

| | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| **Measured at amortised cost:** | | |
| Corporate loans and advances | 18,809,747 | 17,460,342 |
| — Loans | 18,641,761 | 17,289,398 |
| — Finance lease | 167,986 | 170,944 |
| Personal loans | 9,002,636 | 8,957,720 |
| Discounted bills | 31,090 | 1,351 |
| Accrued interest | 57,858 | 56,447 |
| | 27,901,331 | 26,475,860 |
| Less: Allowance for impairment losses on loans and advances to customers measured at amortised cost (Note 23.2(a)) | (851,750) | (815,072) |
| | 27,049,581 | 25,660,788 |
| **Measured at FVTOCI:** | | |
| Corporate loans and advances | | |
| — Loans | 24,735 | 16,876 |
| Discounted bills | 2,630,717 | 1,930,935 |
| Accrued interest | 137 | 177 |
| | 2,655,589 | 1,947,988 |
| **Measured at FVTPL:** | | |
| Corporate loans and advances | | |
| — Loans | 7,189 | 5,005 |
| | 29,712,359 | 27,613,781 |

As at 31 December 2025, the Group’s allowance for impairment losses on loans and advances to customers measured at FVTOCI was RMB524 million (31 December 2024: RMB425 million), refer to Note 23.2(b).

---

(In RMB millions, unless otherwise stated)

# 23.2 Allowance for impairment losses on loans and advances

## (a) Movements of the allowance for impairment losses on loans and advances to customers measured at amortised cost are as follows:

| | Stage 1 | Stage 2 | Stage 3 | Total |
| :--- | :--- | :--- | :--- | :--- |
| Balance at 1 January 2025 | 354,083 | 156,502 | 304,487 | 815,072 |
| Transfer: | | | | |
| — to stage 1 | 21,754 | (18,212) | (3,542) | — |
| — to stage 2 | (10,433) | 12,981 | (2,548) | — |
| — to stage 3 | (6,356) | (32,304) | 38,660 | — |
| (Reverse)/charge for the year | (10,175) | 49,820 | 109,882 | 149,527 |
| Write-offs and transfer out | — | — | (119,958) | (119,958) |
| Recoveries of loans and advances previously written off | — | — | 11,546 | 11,546 |
| Other movements | 794 | (2,105) | (3,126) | (4,437) |
| Balance at 31 December 2025 | 349,667 | 166,682 | 335,401 | 851,750 |

| | Stage 1 | Stage 2 | Stage 3 | Total |
| :--- | :--- | :--- | :--- | :--- |
| Balance at 1 January 2024 | 342,730 | 156,240 | 257,031 | 756,001 |
| Transfer: | | | | |
| — to stage 1 | 20,221 | (16,982) | (3,239) | — |
| — to stage 2 | (11,518) | 15,804 | (4,286) | — |
| — to stage 3 | (5,101) | (24,282) | 29,383 | — |
| Charge for the year | 6,808 | 21,323 | 94,312 | 122,443 |
| Write-offs and transfer out | — | — | (85,127) | (85,127) |
| Recoveries of loans and advances previously written off | — | — | 13,856 | 13,856 |
| Other movements | 943 | 4,399 | 2,557 | 7,899 |
| Balance at 31 December 2024 | 354,083 | 156,502 | 304,487 | 815,072 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (b) Movements of the allowance for impairment losses on loans and advances to customers measured at FVTOCI are as follows:

| | Stage 1 | Stage 2 | Stage 3 | Total |
| :--- | :---: | :---: | :---: | :---: |
| Balance at 1 January 2025 | 353 | 51 | 21 | 425 |
| Transfer: | | | | |
| — to stage 1 | — | — | — | — |
| — to stage 2 | — | — | — | — |
| — to stage 3 | — | (20) | 20 | — |
| (Reverse)/charge for the year | (142) | 86 | 149 | 93 |
| Write-offs and transfer out | — | — | — | — |
| Other movements | 31 | 19 | (44) | 6 |
| Balance at 31 December 2025 | 242 | 136 | 146 | 524 |

| | Stage 1 | Stage 2 | Stage 3 | Total |
| :--- | :---: | :---: | :---: | :---: |
| Balance at 1 January 2024 | 361 | — | 29 | 390 |
| Transfer: | | | | |
| — to stage 1 | — | — | — | — |
| — to stage 2 | (4) | 4 | — | — |
| — to stage 3 | — | — | — | — |
| (Reverse)/charge for the year | (1) | 46 | (9) | 36 |
| Write-offs and transfer out | — | — | — | — |
| Other movements | (3) | 1 | 1 | (1) |
| Balance at 31 December 2024 | 353 | 51 | 21 | 425 |

In 2025, the changes of gross carrying amounts of loans and advances to customers with a significant impact on the Group’s impairment allowance were mainly resulted from the credit business in Chinese mainland, including: the gross carrying amount of domestic branches loans and advances to customers transferred from Stage 1 to Stage 2 was RMB252,288 million (2024: RMB235,494 million); the gross carrying amount of domestic branches loans transferred from Stage 2 to Stage 3 was RMB83,386 million (2024: RMB68,453 million); the gross carrying amount of domestic branches loans transferred from Stage 2 to Stage 1 was RMB89,496 million (2024: RMB78,229 million). The changes of impairment allowance resulting from loans transferred from Stage 1 to Stage 3, Stage 3 to Stage 1 and Stage 3 to Stage 2 were not significant (2024: not significant).

## 24. FINANCIAL INVESTMENTS

| | | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: | :---: |
| Financial investments measured at FVTPL | (a) | 943,953 | 1,010,439 |
| Financial investments measured at FVTOCI | (b) | 3,823,279 | 3,291,152 |
| Financial investments measured at amortised cost | (c) | 12,140,183 | 9,851,985 |
| | | 16,907,415 | 14,153,576 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (a) Financial investments measured at FVTPL

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| **Financial investments held for trading** | | |
| Debt securities (analysed by type of issuers): | | |
| Governments and central banks | 277,067 | 395,728 |
| Policy banks | 44,648 | 27,272 |
| Banks and other financial institutions | 102,671 | 73,431 |
| Corporate entities | 86,128 | 67,721 |
| | 510,514 | 564,152 |
| Equity investments | 19,227 | 18,048 |
| | 529,741 | 582,200 |
| **Financial investments designated as at FVTPL** | | |
| Debt securities (analysed by type of issuers): | | |
| Governments and central banks | 8,725 | 6,904 |
| Policy banks | 2,384 | – |
| Banks and other financial institutions | 548 | 184 |
| Corporate entities | – | 653 |
| | 11,657 | 7,741 |
| Funds and other investments | 28,224 | 34,735 |
| | 39,881 | 42,476 |
| **Other financial investments measured at FVTPL** | | |
| Debt securities (analysed by type of issuers): | | |
| Policy banks | 463 | 8,416 |
| Banks and other financial institutions | 82,916 | 156,979 |
| Corporate entities | 688 | 1,693 |
| | 84,067 | 167,088 |
| Equity investments | 117,994 | 93,719 |
| Funds and other investments | 172,270 | 124,956 |
| | 374,331 | 385,763 |
| **Total** | **943,953** | **1,010,439** |
| | | |
| **Analysed into:** | | |
| Debt securities: | | |
| Listed in Hong Kong SAR | 5,799 | 4,375 |
| Listed outside Hong Kong SAR | 38,347 | 29,227 |
| Unlisted | 562,092 | 705,379 |
| | 606,238 | 738,981 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| **Equity investments:** | | |
| Listed in Hong Kong SAR | 6,055 | 3,582 |
| Listed outside Hong Kong SAR | 25,277 | 24,348 |
| Unlisted | 105,889 | 83,837 |
| | 137,221 | 111,767 |
| **Funds and other investments:** | | |
| Listed in Hong Kong SAR | 5,222 | 4,913 |
| Listed outside Hong Kong SAR | 4,789 | 5,791 |
| Unlisted | 190,483 | 148,987 |
| | 200,494 | 159,691 |
| | 943,953 | 1,010,439 |

## (b) Financial investments measured at FVTOCI

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| **Debt securities (analysed by type of issuers):** | | |
| Governments and central banks | 1,529,473 | 1,673,679 |
| Policy banks | 913,419 | 512,411 |
| Banks and other financial institutions | 496,640 | 398,174 |
| Corporate entities | 746,110 | 588,449 |
| Accrued interest | 35,102 | 27,787 |
| | 3,720,744 | 3,200,500 |
| Other debt investments | 4,870 | 5,426 |
| Equity investments | 97,665 | 85,226 |
| | 3,823,279 | 3,291,152 |
| **Analysed into:** | | |
| **Debt securities:** | | |
| Listed in Hong Kong SAR | 147,838 | 146,519 |
| Listed outside Hong Kong SAR | 468,668 | 389,928 |
| Unlisted | 3,104,238 | 2,664,053 |
| | 3,720,744 | 3,200,500 |
| **Other debt investments:** | | |
| Unlisted | 4,870 | 5,426 |
| **Equity investments:** | | |
| Listed in Hong Kong SAR | 24,255 | 11,398 |
| Listed outside Hong Kong SAR | 15,713 | 4,899 |
| Unlisted | 57,697 | 68,929 |
| | 97,665 | 85,226 |
| | 3,823,279 | 3,291,152 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

As at 31 December 2025, the accumulated unrealised fair value gains of the Group’s debt securities measured at FVTOCI was RMB63,140 million, and the accumulated unrealised fair value losses of the Group’s other debt investments measured at FVTOCI was RMB174 million respectively (31 December 2024: the accumulated unrealised profit of RMB92,821 million and RMB31 million).

The Group designates certain non-trading equity investments as financial investments measured at FVTOCI. As at 31 December 2025, the accumulated unrealised fair value gains of equity investments was RMB7,945 million (31 December 2024: RMB8,184 million). In 2025, dividend income from such equity investments was RMB3,480 million (2024: RMB3,067 million). There was dividend income of RMB783 million from equity investments derecognised (2024: RMB914 million). The value of equity investments disposed of was RMB14,884 million (2024: RMB7,816 million) and the cumulative gains transferred into retained earnings from other comprehensive income after disposal was RMB1,318 million (2024: RMB674 million).

Allowance for impairment losses on financial investments measured at FVTOCI is recognised in other comprehensive income without decreasing the carrying amount of financial investments presented in the consolidated statement of financial position, and any impairment gain or loss is recognised in the profit or loss. Movements of the allowance for impairment losses on financial investments measured at FVTOCI are as follows:

| | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| **Balance at 1 January 2025** | 4,565 | 635 | 3,825 | 9,025 |
| Transfer: | | | | |
| — to stage 1 | — | — | — | — |
| — to stage 2 | (35) | 35 | — | — |
| — to stage 3 | — | — | — | — |
| Charge/(reverse) for the year | 416 | (259) | 43 | 200 |
| Other movements | (102) | (27) | (500) | (629) |
| **Balance at 31 December 2025** | 4,844 | 384 | 3,368 | 8,596 |

| | Stage 1 | Stage 2 | Stage 3 | Total |
|---|---|---|---|---|
| **Balance at 1 January 2024** | 4,835 | 964 | 3,769 | 9,568 |
| Transfer: | | | | |
| — to stage 1 | — | — | — | — |
| — to stage 2 | — | — | — | — |
| — to stage 3 | — | — | — | — |
| Reverse for the year | (277) | (355) | (43) | (675) |
| Other movements | 7 | 26 | 99 | 132 |
| **Balance at 31 December 2024** | 4,565 | 635 | 3,825 | 9,025 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (c) Financial investments measured at amortised cost

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| **Debt securities (analysed by type of issuers):** | | |
| Governments and central banks (i) | 10,781,870 | 8,379,953 |
| Policy banks | 409,508 | 549,266 |
| Banks and other financial institutions (ii) | 777,686 | 771,310 |
| Corporate entities | 84,539 | 68,060 |
| Accrued interest | 103,527 | 104,906 |
| | 12,157,130 | 9,873,495 |
| **Other investments (iii)** | 19,224 | 16,877 |
| Accrued interest | 32 | 16 |
| | 19,256 | 16,893 |
| | 12,176,386 | 9,890,388 |
| Less: Allowance for impairment losses | (36,203) | (38,403) |
| | **12,140,183** | **9,851,985** |
| **Analysed into:** | | |
| **Debt securities:** | | |
| Listed in Hong Kong SAR | 34,314 | 36,281 |
| Listed outside Hong Kong SAR | 286,949 | 233,832 |
| Unlisted | 11,803,093 | 9,568,021 |
| | 12,124,356 | 9,838,134 |
| **Other investments:** | | |
| Unlisted | 15,827 | 13,851 |
| | 15,827 | 13,851 |
| | **12,140,183** | **9,851,985** |
| Market value of listed securities | 322,288 | 269,046 |

(i) This includes a special government bond, which is a non-negotiable bond with a nominal value of RMB85,000 million (31 December 2024: RMB85,000 million) issued by the Ministry of Finance of the People's Republic of China (the "MOF") to the Bank in 1998. The bond will mature in 2028 and bears interest at a fixed rate of 2.25% per annum.

(ii) This includes Huarong bonds of RMB90,309 million (31 December 2024: RMB90,309 million). Huarong bonds are a series of long-term bonds issued by the former China Huarong Asset Management Co., Ltd. ("Huarong") in the year of 2000 and 2001 to the Bank, with an aggregate amount of RMB312,996 million. The proceeds from the issuance of the bonds were used to purchase non-performing loans of the Bank. The bonds are non-negotiable, with a tenure of 10 years and bear interest at a fixed rate of 2.25% per annum. The MOF provides funding support for the repayment of principal and interest of the bonds. In 2010, the Bank received a notice from the MOF that the maturity dates of the Huarong bonds were extended for ten years. In 2020, the Bank received a notice from the MOF to adjust the interest rate of the Huarong bonds, starting from 1 January 2020. Interest rate would be determined on a yearly basis with reference to the average level of five-year government bond yield in the previous year. In January 2021, the Bank received a notice from the MOF that the maturity dates of Huarong bonds were further extended for ten years. As at 31 December 2025, the Bank had received accumulated early repayments amounting to RMB222,687 million (31 December 2024: RMB222,687 million).

(iii) Other investments include debt investment plans, asset management plans and trust plans with fixed or determinable payments. They will mature from March 2026 to August 2039 and bear interest at rates ranging from 2.45% to 4.83% per annum.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

**Movements of the allowance for impairment losses on financial investments measured at amortised cost are as follows:**

| | Stage 1 | Stage 2 | Stage 3 | Total |
| :--- | :--- | :--- | :--- | :--- |
| **Balance at 1 January 2025** | 35,540 | 11 | 2,852 | 38,403 |
| Transfer: | | | | |
| — to stage 1 | – | – | – | – |
| — to stage 2 | (160) | 160 | – | – |
| — to stage 3 | – | – | – | – |
| (Reverse)/charge for the year | (2,224) | 134 | – | (2,090) |
| Other movements | 43 | – | (153) | (110) |
| **Balance at 31 December 2025** | 33,199 | 305 | 2,699 | 36,203 |

| | Stage 1 | Stage 2 | Stage 3 | Total |
| :--- | :--- | :--- | :--- | :--- |
| **Balance at 1 January 2024** | 36,009 | 11 | 2,699 | 38,719 |
| Transfer: | | | | |
| — to stage 1 | – | – | – | – |
| — to stage 2 | – | – | – | – |
| — to stage 3 | – | – | – | – |
| Reverse for the year | (507) | – | – | (507) |
| Other movements | 38 | – | 153 | 191 |
| **Balance at 31 December 2024** | 35,540 | 11 | 2,852 | 38,403 |

# 25. INVESTMENTS IN SUBSIDIARIES

| | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| Listed investments, at cost | 2,712 | 2,712 |
| Unlisted investments, at cost | 175,471 | 160,571 |
| **Total** | **178,183** | **163,283** |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## Particulars of the Group's principal subsidiaries as at the end of the reporting period are as follows:

| Name | Percentage of equity interest %: 31 December 2025 | Percentage of equity interest %: 31 December 2024 | Nominal value of issued share/paid-in capital 31 December 2025 | Amount invested by the bank | Place of incorporation/registration and operation | Principal activities |
| :--- | :---: | :---: | :--- | :--- | :--- | :--- |
| Industrial and Commercial Bank of China (Asia) Limited (“ICBC Asia”) | 100 | 100 | HKD44,188 million | HKD54,738 million | Hong Kong SAR, the PRC | Commercial banking |
| ICBC International Holdings Limited (“ICBC International”) | 100 | 100 | HKD5,963 million | HKD5,963 million | Hong Kong SAR, the PRC | Investment banking |
| Industrial and Commercial Bank of China (Macau) Limited (“ICBC Macau”) | 89.33 | 89.33 | MOP589 million | MOP12,064 million | Macao SAR, the PRC | Commercial banking |
| PT. Bank ICBC Indonesia | 98.61 | 98.61 | IDR3,706,100 million | USD361 million | Jakarta, Indonesia | Commercial banking |
| Industrial and Commercial Bank of China (Malaysia) Berhad | 100 | 100 | MYR833 million | MYR833 million | Kuala Lumpur, Malaysia | Commercial banking |
| Industrial and Commercial Bank of China (Thai) Public Company Limited (“ICBC Thai”) | 97.98 | 97.98 | THB20,107 million | THB23,711 million | Bangkok, Thailand | Commercial banking |
| Industrial and Commercial Bank of China (Almaty) Joint Stock Company | 100 | 100 | KZT8,933 million | KZT8,933 million | Almaty, Kazakhstan | Commercial banking |
| Industrial and Commercial Bank of China (New Zealand) Limited (“ICBC New Zealand”) | 100 | 100 | NZD234 million | NZD234 million | Auckland, New Zealand | Commercial banking |
| Industrial and Commercial Bank of China (Europe) S.A. | 100 | 100 | EUR437 million | EUR437 million | Luxembourg | Commercial banking |
| ICBC (London) PLC | 100 | 100 | USD200 million | USD200 million | London, United Kingdom | Commercial banking |
| ICBC Standard Bank PLC (“Standard Bank”) | 60 | 60 | USD1,083 million | USD839 million | London, United Kingdom | Banking |
| Bank ICBC (joint stock company) | 100 | 100 | RUB10,810 million | RUB10,810 million | Moscow, Russia | Commercial banking |
| ICBC Turkey Bank Anonim Şirketi | 92.84 | 92.84 | TRY16,747 million | USD425 million | Istanbul, Turkey | Commercial banking |
| ICBC Austria Bank GmbH | 100 | 100 | EUR200 million | EUR200 million | Vienna, Austria | Commercial banking |
| Industrial and Commercial Bank of China (USA) NA | 80 | 80 | USD369 million | USD306 million | New York, United States | Commercial banking |
| Industrial and Commercial Bank of China Financial Services LLC | 100 | 100 | USD50 million | USD50.25 million | Delaware and New York, United States | Broker dealer and margin trading |
| Industrial and Commercial Bank of China (Canada) (“ICBC Canada”) | 80 | 80 | CAD208 million | CAD218.66 million | Toronto, Canada | Commercial banking |
| Industrial and Commercial Bank of China Mexico S.A. | 100 | 100 | MXN1,597 million | MXN1,597 million | Mexico City, Mexico | Commercial banking |
| Industrial and Commercial Bank of China (Brasil) S.A. | 100 | 100 | Real202 million | Real202 million | Sao Paulo, Brazil | Commercial banking |
| Industrial and Commercial Bank of China (Argentina) S.A.U | 100 | 100 | ARS482,787 million | USD904 million | Buenos Aires, Argentina | Commercial banking |
| ICBC PERU BANK | 100 | 100 | USD120 million | USD120 million | Lima, Peru | Commercial banking |
| ICBC UBS Asset Management Co., Ltd. * | 80 | 80 | RMB200 million | RMB433 million | Beijing, the PRC | Fund management |
| ICBC Financial Leasing Co., Ltd. * (“ICBC Leasing”) | 100 | 100 | RMB33,000 million | RMB26,000 million | Tianjin, the PRC | Leasing |
| ICBC-AXA Assurance Co., Ltd. (“ICBC-AXA”) * | 60 | 60 | RMB12,505 million | RMB7,980 million | Shanghai, the PRC | Insurance |
| ICBC Financial Asset Investment Co., Ltd. * (“ICBC Investment”) | 100 | 100 | RMB27,000 million | RMB27,000 million | Nanjing, the PRC | Financial asset investment |
| ICBC Wealth Management Co., Ltd.* | 100 | 100 | RMB16,000 million | RMB16,000 million | Beijing, the PRC | Wealth management |
| Zhejiang Pinghu ICBC Rural Bank Co., Ltd. * | 60 | 60 | RMB200 million | RMB120 million | Zhejiang, the PRC | Commercial banking |

\* These subsidiaries incorporated in Chinese mainland are all limited liability companies.

As at 31 December 2025 and 31 December 2024, voting rights of the subsidiaries of the Group were in line with the Group’s equity interests.

The above table lists the principal subsidiaries of the Bank. To give details of other subsidiaries would, in the opinion of the management, result in particulars of excessive length.

There was no subsidiary of the Group which had material non-controlling interests during the reporting period.

---

(In RMB millions, unless otherwise stated)

# 26. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

| | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| Interests in associates | 76,527 | 71,072 |
| Interests in joint ventures | 1,786 | 2,285 |
| **Total** | **78,313** | **73,357** |

| | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| Share of net assets | 63,719 | 59,428 |
| Goodwill | 15,113 | 14,448 |
| | 78,832 | 73,876 |
| Less: Allowance for impairment losses | (519) | (519) |
| **Total carrying value** | **78,313** | **73,357** |

## (a) Carrying value of the Group’s associates and joint ventures are as follows:

| | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| Standard Bank | 30,557 | 26,946 |
| Others | 47,756 | 46,411 |
| **Total** | **78,313** | **73,357** |

**Standard Bank** is a listed commercial bank registered in Johannesburg, the Republic of South Africa with an issued capital of ZAR165 million and a strategic partner of the Group. As at 31 December 2025, the Group's equity interest and voting rights in Standard Bank were both 19.74% (31 December 2024: 19.59%).

The accounting policies of Standard Bank are consistent with those of the Group. Its financial information is significant to the Group and summarised as follows:

| | As at/year ended 31 December 2025 | As at/year ended 31 December 2024 |
| :--- | :--- | :--- |
| **The associate** | | |
| Assets | 1,522,554 | 1,271,730 |
| Liabilities | 1,391,184 | 1,157,892 |
| Net assets | 131,370 | 113,838 |
| Profit from continuing operations | 20,646 | 17,009 |
| **Equity method of the associate** | | |
| Net assets of the associate attributable to the parent company | 111,603 | 97,422 |
| Group's effective interest | 19.74% | 19.59% |
| Group's share of net assets of the associate | 22,030 | 19,085 |
| Goodwill | 8,875 | 8,209 |
| **Closing balance of the Group's interest in Standard Bank in the consolidated statement of financial position** | **30,905** | **27,294** |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (b) Movements of associates and joint ventures investments of the Group are as follows:

| | Book value at beginning of the year | Allowance for impairment at beginning of the year | Investment increase | Investment decrease | Investment income recognised under the equity method | Other comprehensive income | Declared distribution of cash dividends or profits | Other | Book value at end of the year | Allowance for impairment at end of the year |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| Joint ventures | 2,285 | – | 172 | (26) | (455) | – | (52) | (138) | 1,786 | – |
| **Associates** | | | | | | | | | | |
| Standard Bank | 26,946 | (348) | – | – | 3,896 | (344) | (2,034) | 2,093 | 30,557 | (348) |
| Others | 44,126 | (171) | 4,300 | (2,655) | 1,333 | (2) | (1,168) | 36 | 45,970 | (171) |
| Subtotal | 71,072 | (519) | 4,300 | (2,655) | 5,229 | (346) | (3,202) | 2,129 | 76,527 | (519) |
| **Total** | 73,357 | (519) | 4,472 | (2,681) | 4,774 | (346) | (3,254) | 1,991 | 78,313 | (519) |

## 27. PROPERTY AND EQUIPMENT

| | Properties and buildings | Construction in progress | Leasehold improvements | Office equipment and motor vehicles | Aircraft and vessels | Total |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: |
| **Cost** | | | | | | |
| At 1 January 2024 | 195,703 | 24,220 | 14,980 | 83,758 | 203,773 | 522,434 |
| Additions | 1,383 | 10,449 | 811 | 7,142 | 17,701 | 37,486 |
| CIP transfer in/(out) | 3,291 | (6,099) | – | 121 | 2,687 | – |
| Disposals and other movements | 7,099 | (7,418) | (87) | (3,401) | (8,939) | (12,746) |
| At 31 December 2024 and 1 January 2025 | 207,476 | 21,152 | 15,704 | 87,620 | 215,222 | 547,174 |
| Additions | 654 | 11,817 | 767 | 6,766 | 17,529 | 37,533 |
| CIP transfer in/(out) | 4,713 | (13,370) | – | 71 | 8,586 | – |
| Disposals and other movements | (2,238) | (451) | (254) | (6,439) | (29,249) | (38,631) |
| At 31 December 2025 | 210,605 | 19,148 | 16,217 | 88,018 | 212,088 | 546,076 |
| **Accumulated depreciation and allowance for impairment losses** | | | | | | |
| At 1 January 2024 | 87,937 | 34 | 13,120 | 68,149 | 54,316 | 223,556 |
| Depreciation charge for the year | 7,045 | – | 804 | 7,456 | 7,083 | 22,388 |
| Impairment charge for the year | – | – | – | – | 891 | 891 |
| Disposals and other movements | 2,780 | 1 | (96) | (3,069) | (1,664) | (2,048) |
| At 31 December 2024 and 1 January 2025 | 97,762 | 35 | 13,828 | 72,536 | 60,626 | 244,787 |
| Depreciation charge for the year | 7,306 | – | 795 | 7,056 | 7,255 | 22,412 |
| Impairment charge for the year | – | 1 | – | 4 | 1,043 | 1,048 |
| Disposals and other movements | (984) | (2) | (195) | (6,365) | (8,461) | (16,007) |
| At 31 December 2025 | 104,084 | 34 | 14,428 | 73,231 | 60,463 | 252,240 |
| **Carrying amount** | | | | | | |
| At 31 December 2024 | 109,714 | 21,117 | 1,876 | 15,084 | 154,596 | 302,387 |
| At 31 December 2025 | 106,521 | 19,114 | 1,789 | 14,787 | 151,625 | 293,836 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

As at 31 December 2025, the process of obtaining the legal titles for the Group’s properties and buildings with an aggregate carrying amount of RMB6,353 million (31 December 2024: RMB5,404 million) was still in progress. Management is of the view that the aforesaid matter would neither affect the rights of the Group to these assets nor have any significant impact on the business operation of the Group.

As at 31 December 2025, the carrying amount of aircraft and vessels leased out by the Group under operating leases was RMB151,625 million (31 December 2024: RMB154,596 million).

As at 31 December 2025, the carrying amount of aircraft and vessels owned by the Group that have been pledged as collateral for liabilities due to banks and other financial institutions was RMB19,793 million (31 December 2024: RMB28,043 million).

As at 31 December 2025, the carrying amount of aircraft and vessel construction in progress was RMB14,756 million (31 December 2024: RMB14,699 million).

## 28. DEFERRED TAX ASSETS AND LIABILITIES

### (a) Analysed by nature

**Deferred tax assets:**

| | 31 December 2025 Deductible/ (taxable) temporary differences | 31 December 2025 Deferred tax assets/ (liabilities) | 31 December 2024 Deductible/ (taxable) temporary differences | 31 December 2024 Deferred tax assets/ (liabilities) |
| :--- | :---: | :---: | :---: | :---: |
| Allowance for impairment losses | 485,136 | 120,376 | 474,566 | 117,825 |
| Change in fair value of financial instruments measured at FVTPL | (29,298) | (7,347) | (40,707) | (10,183) |
| Change in fair value of financial instruments measured at FVTOCI | (59,032) | (14,537) | (112,174) | (28,101) |
| Accrued staff costs | 47,289 | 11,862 | 45,935 | 11,477 |
| Others | (24,192) | (6,065) | (3,861) | (971) |
| | **419,903** | **104,289** | **363,759** | **90,047** |

**Deferred tax liabilities:**

| | 31 December 2025 Taxable/ (deductible) temporary differences | 31 December 2025 Deferred tax liabilities/ (assets) | 31 December 2024 Taxable/ (deductible) temporary differences | 31 December 2024 Deferred tax liabilities/ (assets) |
| :--- | :---: | :---: | :---: | :---: |
| Allowance for impairment losses | (1,105) | (270) | (90) | (23) |
| Change in fair value of financial instruments measured at FVTPL | 9,745 | 2,368 | 7,573 | 1,693 |
| Change in fair value of financial instruments measured at FVTOCI | 14,745 | 3,670 | (333) | (81) |
| Others | 3,904 | 783 | 10,733 | 2,689 |
| | **27,289** | **6,551** | **17,883** | **4,278** |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (b) Movements of deferred income tax

**Deferred tax assets:**

| | 1 January 2025 | Recognised in profit or loss | Recognised in other comprehensive income | 31 December 2025 |
| :--- | :--- | :--- | :--- | :--- |
| Allowance for impairment losses | 117,825 | 2,551 | — | 120,376 |
| Change in fair value of financial instruments measured at FVTPL | (10,183) | 2,836 | — | (7,347) |
| Change in fair value of financial instruments measured at FVTOCI | (28,101) | — | 13,564 | (14,537) |
| Accrued staff costs | 11,477 | 385 | — | 11,862 |
| Others | (971) | (3,220) | (1,874) | (6,065) |
| **Total** | **90,047** | **2,552** | **11,690** | **104,289** |

**Deferred tax liabilities:**

| | 1 January 2025 | Recognised in profit or loss | Recognised in other comprehensive income | 31 December 2025 |
| :--- | :--- | :--- | :--- | :--- |
| Allowance for impairment losses | (23) | (247) | — | (270) |
| Change in fair value of financial instruments measured at FVTPL | 1,693 | 675 | — | 2,368 |
| Change in fair value of financial instruments measured at FVTOCI | (81) | — | 3,751 | 3,670 |
| Others | 2,689 | (1,906) | — | 783 |
| **Total** | **4,278** | **(1,478)** | **3,751** | **6,551** |

**Deferred tax assets:**

| | 1 January 2024 | Recognised in profit or loss | Recognised in other comprehensive income | 31 December 2024 |
| :--- | :--- | :--- | :--- | :--- |
| Allowance for impairment losses | 111,767 | 6,058 | — | 117,825 |
| Change in fair value of financial instruments measured at FVTPL | (4,221) | (5,962) | — | (10,183) |
| Change in fair value of financial instruments measured at FVTOCI | (9,222) | — | (18,879) | (28,101) |
| Accrued staff costs | 11,623 | (146) | — | 11,477 |
| Others | (5,278) | (715) | 5,022 | (971) |
| **Total** | **104,669** | **(765)** | **(13,857)** | **90,047** |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

**Deferred tax liabilities:**

| | 1 January 2024 | Recognised in profit or loss | Recognised in other comprehensive income | 31 December 2024 |
| :--- | :---: | :---: | :---: | :---: |
| Allowance for impairment losses | (38) | 15 | — | (23) |
| Change in fair value of financial instruments measured at FVTPL | 1,701 | (8) | — | 1,693 |
| Change in fair value of financial instruments measured at FVTOCI | 64 | — | (145) | (81) |
| Others | 2,203 | 248 | 238 | 2,689 |
| **Total** | **3,930** | **255** | **93** | **4,278** |

As at 31 December 2025 and 31 December 2024, the Group did not have significant unrecognised deferred tax assets.

## 29. OTHER ASSETS

| | | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: | :---: |
| Settlement and clearing balances | | 305,933 | 238,962 |
| Precious metals | | 330,867 | 208,907 |
| Right-of-use assets | (a) | 23,439 | 24,466 |
| Land use rights | | 13,454 | 13,960 |
| Goodwill | (b) | 19,658 | 19,566 |
| Advance payments | | 1,207 | 1,197 |
| Repossessed assets | (c) | 6,035 | 6,186 |
| Interest receivable | | 3,749 | 3,684 |
| Others | | 92,019 | 110,303 |
| | | 796,361 | 627,231 |
| Less: Allowance for impairment losses | | (14,528) | (13,998) |
| **Total** | | **781,833** | **613,233** |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (a) Right-of-use assets

| | Properties and buildings | Aircraft and vessels | Office equipment and motor vehicles | Total |
| :--- | :---: | :---: | :---: | :---: |
| **Cost** | | | | |
| At 1 January 2024 | 39,191 | 14,651 | 1,608 | 55,450 |
| Additions | 6,983 | – | 13 | 6,996 |
| Disposals and other movements | (2,567) | (3,888) | (1,162) | (7,617) |
| At 31 December 2024 and 1 January 2025 | 43,607 | 10,763 | 459 | 54,829 |
| Additions | 6,361 | – | 157 | 6,518 |
| Disposals and other movements | (4,089) | (239) | (69) | (4,397) |
| At 31 December 2025 | 45,879 | 10,524 | 547 | 56,950 |
| **Accumulated depreciation** | | | | |
| At 1 January 2024 | 23,565 | 2,791 | 556 | 26,912 |
| Depreciation charge for the year | 6,410 | 536 | 74 | 7,020 |
| Disposals and other movements | (2,508) | (845) | (216) | (3,569) |
| At 31 December 2024 and 1 January 2025 | 27,467 | 2,482 | 414 | 30,363 |
| Depreciation charge for the year | 6,234 | 346 | 57 | 6,637 |
| Disposals and other movements | (3,375) | (58) | (56) | (3,489) |
| At 31 December 2025 | 30,326 | 2,770 | 415 | 33,511 |
| **Allowance for impairment losses** | | | | |
| At 1 January 2024 | 36 | 530 | – | 566 |
| Other movements | 1 | (89) | – | (88) |
| At 31 December 2024 and 1 January 2025 | 37 | 441 | – | 478 |
| Impairment charge for the year | 39 | – | – | 39 |
| Other movements | (16) | (10) | – | (26) |
| At 31 December 2025 | 60 | 431 | – | 491 |
| **Carrying amount** | | | | |
| At 31 December 2024 | 16,103 | 7,840 | 45 | 23,988 |
| At 31 December 2025 | 15,493 | 7,323 | 132 | 22,948 |

---

## (b) Goodwill

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| At 1 January | 19,566 | 9,357 |
| Additions | 412 | 9,961 |
| Exchange difference | (320) | 248 |
| Subtotal | 19,658 | 19,566 |
| Less: Allowance for impairment losses | (796) | (401) |
| **Net carrying amount** | **18,862** | **19,165** |

The goodwill is attributable to the expected synergies arising from business combination. Goodwill arising from business combinations has been reasonably allocated to the CGU, which is not larger than the reportable segment of the Group, for impairment testing. The recoverable amount of the CGU is determined based on the discounted future cash flows of the CGU. The cash flow projections are based on financial forecasts approved by management of the institutions. The average growth rates are projected based on the similar rates which do not exceed the long-term average growth rate for the business in which the CGU operates in. The discount rate is the before-tax rate and reflects the specific risk associated with the CGU.

## (c) Repossessed assets

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| Properties and buildings | 5,759 | 5,604 |
| Others | 276 | 582 |
| Subtotal | 6,035 | 6,186 |
| Less: Allowance for impairment losses | (2,862) | (2,974) |
| | **3,173** | **3,212** |

# 30. IMPAIRMENT ALLOWANCE

| | At 1 January 2025 | (Reverse)/charge for the year | Write-offs and transfer out | Recoveries of previous write-offs | Others | At 31 December 2025 |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: |
| Due from banks and other financial institutions | 4,347 | (1,575) | – | – | (34) | 2,738 |
| Reverse repurchase agreements | 33 | (2) | – | – | 1 | 32 |
| Loans and advances to customers | 815,497 | 149,620 | (119,958) | 11,546 | (4,431) | 852,274 |
| Financial investments | 47,428 | (1,890) | (504) | – | (235) | 44,799 |
| Investments in associates and joint ventures | 519 | – | – | – | – | 519 |
| Property and equipment | 12,802 | 1,048 | (2,516) | – | (150) | 11,184 |
| Credit commitments | 25,159 | (830) | – | – | (215) | 24,114 |
| Others | 41,553 | (23,658) | (2,857) | – | (458) | 14,580 |
| **Total** | **947,338** | **122,713** | **(125,835)** | **11,546** | **(5,522)** | **950,240** |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

| | At 1 January 2024 | Charge/(reverse) for the year | Write-offs and transfer out | Recoveries of previous write-offs | Others | At 31 December 2024 |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Due from banks and other financial institutions | 3,560 | 586 | – | – | 201 | 4,347 |
| Reverse repurchase agreements | 97 | (64) | – | – | – | 33 |
| Loans and advances to customers | 756,391 | 122,479 | (85,127) | 13,856 | 7,898 | 815,497 |
| Financial investments | 48,287 | (1,182) | (57) | – | 380 | 47,428 |
| Investments in associates and joint ventures | 519 | – | – | – | – | 519 |
| Property and equipment | 11,522 | 891 | – | – | 389 | 12,802 |
| Credit commitments | 24,185 | 690 | – | – | 284 | 25,159 |
| Others | 39,691 | 3,263 | (1,499) | – | 98 | 41,553 |
| **Total** | **884,252** | **126,663** | **(86,683)** | **13,856** | **9,250** | **947,338** |

# 31. DUE TO BANKS AND OTHER FINANCIAL INSTITUTIONS

| | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| **Deposits:** | | |
| Banks and other financial institutions operating in Chinese mainland | 4,358,205 | 3,841,081 |
| Banks and other financial institutions operating outside Chinese mainland | 178,342 | 143,455 |
| Accrued interest | 32,149 | 36,001 |
| **Subtotal** | **4,568,696** | **4,020,537** |
| | | |
| **Money market takings:** | | |
| Banks and other financial institutions operating in Chinese mainland | 305,753 | 273,806 |
| Banks and other financial institutions operating outside Chinese mainland | 224,171 | 288,602 |
| Accrued interest | 4,627 | 8,020 |
| **Subtotal** | **534,551** | **570,428** |
| **Total** | **5,103,247** | **4,590,965** |

---

Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

# 32. FINANCIAL LIABILITIES MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| Financial liabilities related to precious metals and account-based investment products (i) | 133,111 | 61,362 |
| Debt securities issued (i) | 12,550 | 10,562 |
| Others | 4,535 | 4,132 |
| **Total** | **150,196** | **76,056** |

(i) **Financial liabilities related to precious metals and account-based investment products, and certain issued debt securities have been matched with precious metals or derivatives of the Group as part of a documented risk management strategy to mitigate market risk.** An accounting mismatch would arise if these financial liabilities were accounted for at amortised cost, whereas the related precious metals or derivatives were measured at fair value with movements in fair value taken through the statement of profit or loss. By designating these financial liabilities at FVTPL, the movement in their fair values is recorded in the statement of profit or loss. As at 31 December 2025 and 31 December 2024, the difference between the fair values of the financial liabilities related to precious metals, account-based investment products and issued debt securities and the amounts that the Group would be contractually required to pay to the holders of the financial liabilities related to precious metals, account-based investment products and issued debt securities upon maturity was not significant.

In 2025 and 2024, there were no significant changes in the credit spread of the Group and therefore the amounts of changes in fair value of the financial liabilities arising from changes in the credit risk and the accumulated amounts as at the end of the respective years were not significant. The changes in fair value of the financial liabilities were mainly attributable to changes in other market factors.

# 33. REPURCHASE AGREEMENTS

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| **Measured at amortised cost:** | | |
| Repurchase agreements-bills | 16,752 | 12,096 |
| Repurchase agreements-securities | 2,503,997 | 1,493,317 |
| Accrued interest | 14,933 | 17,427 |
| **Subtotal** | **2,535,682** | **1,522,840** |
| **Measured at FVTPL:** | | |
| Repurchase agreements-securities | 694 | 715 |
| **Total** | **2,536,376** | **1,523,555** |

# 34. CERTIFICATES OF DEPOSIT

Certificates of deposit issued by certain of the Bank’s overseas branches and subsidiaries are measured at amortised cost.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

# 35. DUE TO CUSTOMERS

| | 31 December 2025 | 31 December 2024 |
| :--- | ---: | ---: |
| Demand deposits: | | |
| Corporate customers | 7,519,087 | 7,158,295 |
| Personal customers | 6,935,021 | 6,463,845 |
| | 14,454,108 | 13,622,140 |
| Time deposits: | | |
| Corporate customers | 8,831,506 | 8,349,110 |
| Personal customers | 13,269,598 | 12,077,665 |
| | 22,101,104 | 20,426,775 |
| Others | 251,921 | 228,721 |
| Accrued interest | 504,645 | 559,337 |
| | 37,311,778 | 34,836,973 |

As at 31 December 2025, the Group's pledged deposits included in above amounted to RMB169,335 million (31 December 2024: RMB142,531 million).

# 36. DEBT SECURITIES ISSUED

| | | 31 December 2025 | 31 December 2024 |
| :--- | :---: | ---: | ---: |
| Subordinated bonds, tier 2 capital bonds and total loss-absorbing capacity eligible non-capital bonds | (a) | | |
| Issued by the Bank | | 788,003 | 732,586 |
| Issued by subsidiaries | | 5,009 | 6,058 |
| Accrued interest | | 11,578 | 10,617 |
| | | 804,590 | 749,261 |
| Other debt securities | (b) | | |
| Issued by the Bank | | 1,354,643 | 1,192,573 |
| Issued by subsidiaries | | 55,774 | 84,843 |
| Accrued interest | | 1,800 | 2,045 |
| | | 1,412,217 | 1,279,461 |
| | | 2,216,807 | 2,028,722 |

As at 31 December 2025, the amount of debt securities issued that were due within one year was RMB1,286,883 million (31 December 2024: RMB1,114,660 million).

In 2025, the Group has not had any defaults in respect of payments of principal or interest or other breaches with respect to the bonds (2024: Nil).

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (a) Subordinated bonds, tier 2 capital bonds and total loss-absorbing capacity eligible non-capital bonds

**The Bank:**

As approved by the PBC and the NFRA, the Bank issued callable subordinated bonds, tier 2 capital bonds and total loss-absorbing capacity eligible non-capital bonds (TLAC non-capital Bonds) in the National Interbank Bond Market through open market bidding. These subordinated bonds, tier 2 capital bonds and TLAC non-capital Bonds were traded on the National Interbank Bond Market. The relevant information is set out below:

| Name | Issue date | Issue price (In RMB) | Issued and nominal amount (In RMB million) | Coupon rate | Value date | Maturity date | Circulation date |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| 11 ICBC 01 | 29/06/2011 | 100 Yuan | 38,000 | 5.56% | 30/06/2011 | 30/06/2031 | 30/08/2011 |
| 19 ICBC 02 Tier 2 Bond | 21/03/2019 | 100 Yuan | 10,000 | 4.51% | 25/03/2019 | 25/03/2034 | 26/03/2019 |
| 19 ICBC 04 Tier 2 Bond | 24/04/2019 | 100 Yuan | 10,000 | 4.69% | 26/04/2019 | 26/04/2034 | 28/04/2019 |
| 20 ICBC 03 Tier 2 Bond | 12/11/2020 | 100 Yuan | 10,000 | 4.45% | 16/11/2020 | 16/11/2035 | 17/11/2020 |
| 21 ICBC 01 Tier 2 Bond | 19/01/2021 | 100 Yuan | 30,000 | 4.15% | 21/01/2021 | 21/01/2031 | 22/01/2021 |
| 21 ICBC 02 Tier 2 Bond | 13/12/2021 | 100 Yuan | 50,000 | 3.48% | 15/12/2021 | 15/12/2031 | 16/12/2021 |
| 21 ICBC 03 Tier 2 Bond | 13/12/2021 | 100 Yuan | 10,000 | 3.74% | 15/12/2021 | 15/12/2036 | 16/12/2021 |
| 22 ICBC 01 Tier 2 Bond | 18/01/2022 | 100 Yuan | 35,000 | 3.28% | 20/01/2022 | 20/01/2032 | 21/01/2022 |
| 22 ICBC 02 Tier 2 Bond | 18/01/2022 | 100 Yuan | 5,000 | 3.60% | 20/01/2022 | 20/01/2037 | 21/01/2022 |
| 22 ICBC 03 Tier 2 Bond | 12/04/2022 | 100 Yuan | 45,000 | 3.50% | 14/04/2022 | 14/04/2032 | 15/04/2022 |
| 22 ICBC 04 Tier 2 Bond | 12/04/2022 | 100 Yuan | 5,000 | 3.74% | 14/04/2022 | 14/04/2037 | 15/04/2022 |
| 22 ICBC 03A Tier-2 Capital Bonds | 18/08/2022 | 100 Yuan | 30,000 | 3.02% | 22/08/2022 | 22/08/2032 | 23/08/2022 |
| 22 ICBC 03B Tier-2 Capital Bonds | 18/08/2022 | 100 Yuan | 10,000 | 3.32% | 22/08/2022 | 22/08/2037 | 23/08/2022 |
| 22 ICBC 04A Tier-2 Capital Bonds | 08/11/2022 | 100 Yuan | 50,000 | 3.00% | 10/11/2022 | 10/11/2032 | 11/11/2022 |
| 22 ICBC 04B Tier-2 Capital Bonds | 08/11/2022 | 100 Yuan | 10,000 | 3.34% | 10/11/2022 | 10/11/2037 | 11/11/2022 |
| 22 ICBC 05A Tier-2 Capital Bonds | 20/12/2022 | 100 Yuan | 25,000 | 3.70% | 22/12/2022 | 22/12/2032 | 23/12/2022 |
| 22 ICBC 05B Tier-2 Capital Bonds | 20/12/2022 | 100 Yuan | 5,000 | 3.85% | 22/12/2022 | 22/12/2037 | 23/12/2022 |
| 23 ICBC 01A Tier-2 Capital Bonds | 10/04/2023 | 100 Yuan | 35,000 | 3.49% | 12/04/2023 | 12/04/2033 | 13/04/2023 |
| 23 ICBC 01B Tier-2 Capital Bonds | 10/04/2023 | 100 Yuan | 20,000 | 3.58% | 12/04/2023 | 12/04/2038 | 13/04/2023 |
| 23 ICBC 02A Tier-2 Capital Bonds | 28/08/2023 | 100 Yuan | 30,000 | 3.07% | 30/08/2023 | 30/08/2033 | 31/08/2023 |
| 23 ICBC 02B Tier-2 Capital Bonds | 28/08/2023 | 100 Yuan | 25,000 | 3.18% | 30/08/2023 | 30/08/2038 | 31/08/2023 |
| 24 ICBC 01A TLAC Non-capital Bond | 15/05/2024 | 100 Yuan | 30,000 | 2.25% | 17/05/2024 | 17/05/2028 | 20/05/2024 |
| 24 ICBC 01B TLAC Non-capital Bond | 15/05/2024 | 100 Yuan | 10,000 | 2.35% | 17/05/2024 | 17/05/2030 | 20/05/2024 |
| 24 ICBC T2CB01A | 27/08/2024 | 100 Yuan | 42,000 | 2.25% | 29/08/2024 | 29/08/2034 | 30/08/2024 |
| 24 ICBC T2CB01B | 27/08/2024 | 100 Yuan | 8,000 | 2.40% | 29/08/2024 | 29/08/2039 | 30/08/2024 |
| 24 ICBC T2CB02 | 24/10/2024 | 100 Yuan | 40,000 | 2.37% | 28/10/2024 | 28/10/2034 | 29/10/2024 |
| 24 ICBC TLACENCGB01(BC) | 17/12/2024 | 100 Yuan | 10,000 | 1.76% | 19/12/2024 | 19/12/2028 | 20/12/2024 |
| 25 ICBC T2CN01BC | 27/02/2025 | 100 Yuan | 50,000 | 2.05% | 03/03/2025 | 03/03/2035 | 04/03/2025 |
| 25 ICBC T2CN02BC | 28/04/2025 | 100 Yuan | 50,000 | 1.98% | 30/04/2025 | 30/04/2035 | 06/05/2025 |
| 25 ICBC T2CN 003(BC) | 10/07/2025 | 100 Yuan | 50,000 | 1.88% | 14/07/2025 | 14/07/2035 | 15/07/2025 |
| 25 ICBC TLACENCB01(BC) | 22/10/2025 | 100 Yuan | 10,000 | 2.02% | 24/10/2025 | 24/10/2029 | 27/10/2025 |

The Bank has the option to redeem these bonds in whole or in part on specific dates at par value in future upon the approval of the relevant regulatory authorities.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

**Subsidiaries:**

On 15 March 2022, ICBC-AXA issued a capital supplementary bond with an aggregate nominal amount of RMB5,000 million, bearing an initial fixed interest rate of 3.7%. The bond will mature on 17 March 2032. The issuer has an option to redeem the capital supplementary bond in whole or in part at par value at the end of the fifth interest-bearing year. If the issuer does not exercise the redemption option, the coupon rate would increase to 4.7% from the sixth interest-bearing year.

The above tier 2 capital bond is traded on the National Interbank Bond Market.

## (b) Other debt securities issued

**The Bank:**

(i) **Head Office** issued debt securities denominated in RMB at fixed or floating interest rates and interbank certificates of deposit denominated in RMB at zero- coupon amounting to RMB1,258,163 million in total with maturities between 2026 and 2028. The coupon rates range from 0 to 2.70%.

(ii) **Sydney Branch** issued debt securities, denominated in AUD and USD at fixed or floating interest rates amounting to an equivalent of RMB4,910 million in total with maturities between 2026 and 2027. The coupon rates range from 1.09% to 4.52%.

(iii) **Singapore Branch** issued debt securities denominated in RMB, SGD and USD at fixed or floating interest rates amounting to an equivalent of RMB17,418 million in total with maturities between 2026 and 2028. The coupon rates range from 1.82% to 4.59%.

(iv) **New York Branch** issued debt securities and notes denominated in USD at fixed interest rates or zero-coupon amounting to an equivalent of RMB8,305 million in total with maturities between 2026 and 2027. The coupon rates range from 0 to 3.54%.

(v) **Luxembourg Branch** issued debt securities denominated in EUR and USD at fixed or floating interest rates amounting to an equivalent of RMB5,637 million in total that will mature between 2026 and 2028. The coupon rate range from 2.25% to 4.20%.

(vi) **Dubai (DIFC) Branch** issued debt securities denominated in RMB and USD at fixed or floating interest rates amounting to an equivalent of RMB12,216 million in total with maturities between 2026 and 2028. The coupon rates range from 2.00% to 4.58%.

(vii) **Hong Kong Branch** issued debt securities denominated in USD at fixed interest rates amounting to an equivalent of RMB30,721 million in total with maturities between 2026 and 2028. The coupon rates range from 1.63% to 5.38%.

(viii) **London Branch** issued securities denominated in GBP, USD and EUR at fixed or floating interest rates amounting to an equivalent of RMB14,649 million in total with maturities between 2026 and 2028. The coupon rates range from 1.63% to 4.74%.

(ix) **Macau Branch** issued debt securities denominated in USD at floating interest rates amounting to an equivalent of RMB2,438 million in total with maturities between 2027 and 2028. The coupon rates range from 4.48% to 4.56%.

(x) **Panama Branch** issued zero-coupon debt notes denominated in USD amounting to an equivalent of RMB186 million in total that will mature in 2026.

**Subsidiaries:**

(i) **ICBC Asia** issued debt securities and interbank certificates of deposit denominated in RMB and USD at fixed interest rates or zero-coupon amounting to an equivalent of RMB6,511 million in total with maturities between 2026 and 2027. The coupon rates range from 0 to 3.15%.

(ii) **ICBC Leasing** issued debt securities denominated in RMB and USD at fixed or floating interest rates amounting to an equivalent of RMB36,674 million in total with maturities between 2026 and 2031. The coupon rates range from 1.75% to 5.30%.

(iii) **ICBC Thai** issued debt securities denominated in THB at fixed interest rates amounting to an equivalent of RMB4,438 million in total with maturities between 2026 and 2028. The coupon rates range from 1.70% to 3.70%.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

(iv) ICBC International issued debt securities denominated in RMB and USD at fixed or floating interest rates amounting to an equivalent of RMB2,399 million in total with maturities between 2027 and 2028. The coupon rates range from 2.60% to 5.18%.

(v) ICBC New Zealand issued debt securities denominated in NZD, RMB and USD at fixed or floating interest rates amounting to an equivalent of RMB1,850 million in total with maturities between 2026 and 2029. The coupon rates range from 2.95% to 5.90%.

(vi) ICBC Austria issued interbank certificates of deposit denominated in EUR at fixed interest rates amounting to RMB41 million in total that will mature in 2028. The coupon rate is 2.82%.

(vii) ICBC Canada issued zero-coupon interbank certificates of deposit denominated in CAD at fixed interest rates amounting to RMB485 million in total that will mature in 2026.

(viii) ICBC Macau issued debt securities denominated in RMB at fixed interest rates amounting to RMB2,997 million in total that will mature in 2026. The coupon rate is 3.09%.

(ix) ICBC Argentina issued debt securities denominated in ARS at floating interest rates amounting to RMB379 million in total with maturity in 2026. The coupon rates range from 32.13% to 32.38%.

# 37. OTHER LIABILITIES

| | | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- | :--- |
| Settlement and clearing balances | | 545,081 | 374,945 |
| Insurance business liabilities | | 325,149 | 304,959 |
| Salaries, bonuses, allowances and subsidies payables | (a) | 46,996 | 45,269 |
| Dividends payable | | 28,820 | 51,282 |
| Provisions for credit commitments | (b) | 24,114 | 25,159 |
| Lease liabilities | (c) | 19,551 | 20,983 |
| Sundry tax payables | | 18,243 | 15,974 |
| Promissory notes | | 1,028 | 1,239 |
| Early retirement benefits | | 5 | 7 |
| Others | | 34,965 | 89,398 |
| **Total** | | **1,043,952** | **929,215** |

(a) There were no overdue payments for staff salaries, bonuses, allowances and subsidies payable as at 31 December 2025 (31 December 2024: Nil).

## (b) Provisions for credit commitments

| | Stage 1 | Stage 2 | Stage 3 | Total |
| :--- | :--- | :--- | :--- | :--- |
| Balance at 1 January 2025 | 19,815 | 5,244 | 100 | 25,159 |
| Transfer: | | | | |
| — to stage 1 | 184 | (184) | — | — |
| — to stage 2 | (356) | 356 | — | — |
| — to stage 3 | (180) | (568) | 748 | — |
| (Reverse)/ charge for the year | (1,004) | (981) | 1,155 | (830) |
| Other movements | 132 | 389 | (736) | (215) |
| Balance at 31 December 2025 | 18,591 | 4,256 | 1,267 | 24,114 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

| | Stage 1 | Stage 2 | Stage 3 | Total |
| :--- | :--- | :--- | :--- | :--- |
| Balance at 1 January 2024 | 17,897 | 5,634 | 654 | 24,185 |
| Transfer: | | | | |
| — to stage 1 | 113 | (113) | — | — |
| — to stage 2 | (204) | 204 | — | — |
| — to stage 3 | (76) | (7) | 83 | — |
| Charge/(reverse) for the year | 1,771 | (528) | (553) | 690 |
| Other movements | 314 | 54 | (84) | 284 |
| Balance at 31 December 2024 | 19,815 | 5,244 | 100 | 25,159 |

### (c) Lease liabilities

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| Less than one year | 6,933 | 6,741 |
| One to two years | 5,499 | 5,515 |
| Two to three years | 3,761 | 3,913 |
| Three to five years | 4,504 | 4,444 |
| More than five years | 1,622 | 2,145 |
| Undiscounted lease liabilities | 22,319 | 22,758 |
| Closing balance of lease liabilities | 19,551 | 20,983 |

## 38. SHARE CAPITAL

| | 31 December 2025 | 31 December 2025 | 31 December 2024 | 31 December 2024 |
| :--- | :---: | :---: | :---: | :---: |
| | **Number of shares (millions)** | **Nominal value** | **Number of shares (millions)** | **Nominal value** |
| **Issued and fully paid:** | | | | |
| H shares of RMB1 Yuan each | 86,795 | 86,795 | 86,795 | 86,795 |
| A shares of RMB1 Yuan each | 269,612 | 269,612 | 269,612 | 269,612 |
| | 356,407 | 356,407 | 356,407 | 356,407 |

Except for the dividends of H shares which are payable in RMB or HKD equivalent , all of the ordinary A shares and H shares rank pari passu with each other in respect of dividends on ordinary shares.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## 39. OTHER EQUITY INSTRUMENTS

### (1) Preference shares

#### (a) Preference shares ("Preference Shares") outstanding:

| Financial instruments outstanding | Issue date | Accounting classification | Dividend rate | Issue price | Amount (million shares) | In original currency (million) | In RMB (million) | Maturity | Conversion condition | Conversion |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| **Domestic Preference Shares** | | | | | | | | | | |
| RMB2015 | 18/11/2015 | Equity | 3.14% | RMB100/Share | 450 | 45,000 | 45,000 | None | Mandatory | No |
| RMB2019 | 19/09/2019 | Equity | 3.02% | RMB100/Share | 700 | 70,000 | 70,000 | None | Mandatory | No |
| **Total** | | | | | | | **115,000** | | | |

### (b) Main clauses and basic information

#### (i) Dividend

Offshore and Domestic dividends are paid annually.

Offshore and Domestic dividends are set at a fixed rate for 5 years after issuance and are reset every 5 years thereafter to the sum of the benchmark rate and the fixed spread. The fixed spread is equal to the spread between the initial offshore and domestic dividend rate and the benchmark rate at the time of issuance. The fixed spread remains unchanged throughout the term of the Preference Shares.

#### (ii) Conditions to distribution of dividends

The Bank can pay offshore and domestic dividends when it has distributable after-tax profit after making up previous years’ losses, contributing to the statutory reserve and making general provisions, and the Bank’s capital adequacy ratios meet regulatory requirements. Preference shareholders of the Bank are senior to the ordinary shareholders in respect of the right to dividends. The order of payment of domestic dividends is equal to offshore dividends. The Bank may elect to cancel all or part of offshore and domestic dividends and this shall not constitute a default for any purpose, but such cancellation will require a shareholder’s resolution to be passed.

#### (iii) Dividend stopper and setting mechanism

For Offshore and Domestic Preference Shares, if the Bank cancels all or part of the dividends to the Preference Shares, the Bank shall not make any dividend distribution to ordinary shareholders before the Bank pays the dividends to the preference shareholders in full for the current dividend period.

Non-cumulative dividend is a dividend on Offshore and Domestic Preference Shares which does not cumulate upon omission of payment and the passed or omitted dividend of one year is not carried to the following year. After receiving a dividend at the agreed dividend rate, preference shareholders of the Bank will not participate in the distribution of residual profits with ordinary shareholders.

The Bank shall distribute dividends for Offshore and Domestic Preference Shares in cash, based on the liquidation preference amount for the issued and outstanding Offshore Preference Shares or total amount of issued and outstanding Domestic Preference Shares during the corresponding period (i.e., the product of the issue price of Preference Shares and the number of the issued and outstanding Preference Shares).

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (iv) Order of distribution and liquidation method

The offshore preference shareholders and domestic preference shareholders will rank equally for payment. The preference shareholders will be subordinated to the depositors, general creditors and holders of convertible bonds, holders of subordinated debts, holders of tier 2 capital bonds and holders of other tier 2 capital instruments of the Bank but will be senior to the ordinary shareholders of the Bank.

## (v) Mandatory conversion trigger events

For Offshore Preference Shares, upon the occurrence of any Non-Viability Trigger Event, the Bank shall have the right to irrevocably and compulsorily convert all or part of the outstanding Offshore Preference Shares into H shares, under the consent of the NFRA but without the need for the consent of the offshore preference shareholders or the ordinary shareholders. If the Offshore Preference Shares were converted into H shares, they cannot be converted to Preference Shares again under any circumstances.

For Domestic Preference Shares, upon the occurrence of an Additional Tier 1 Capital Trigger Event (Common Equity Tier 1 Capital Adequacy Ratio of the Bank falling to **5.125%** or below), the Bank shall have the right without the need for the consent of the domestic preference shareholders to convert all or part of the outstanding face value of Domestic Preference Shares into A shares, in order to restore the Common Equity Tier 1 Capital Adequacy Ratio of the Bank to above **5.125%**. If Domestic Preference Shares were converted into A shares, they cannot be converted to Preference Shares again under any circumstances. Upon the occurrence of a Tier 2 Capital Trigger Event, the Bank shall have the right without the need for the consent of the domestic preference shareholders to convert all the outstanding face value of Domestic Preference Shares into A shares. If Domestic Preference Shares were converted into A share, they cannot be converted to Preference Shares again under any circumstances.

The initial mandatory conversion prices are **HKD5.73** per H share for Offshore Preference Shares, **RMB3.44** for Domestic 2015 Preference Shares and **RMB5.43** for Domestic 2019 Preference Shares. In case of stock dividends distribution of H or A shares of the Bank or other circumstances, the Bank will make cumulative adjustment to the compulsory conversion price in turn.

## (vi) Redemption conditions

Subject to obtaining the approval of the NFRA and satisfying the conditions of redemption, the Bank has the right to redeem all or part of the Offshore Preference Shares at the first call date and any subsequent dividend payment date. Redemption price of Offshore Preference Shares is equal to liquidation preference price plus any declared but unpaid dividend in current period. The first redemption date of Offshore Preference Shares is five years after issuance.

Under the premise of obtaining the approval of the NFRA and compliance with relevant requirements, the Bank has the right to redeem all or part of Domestic Preference Shares, after five years since the date of issuance/the date of closing. The redemption period of Domestic Preference Shares is from the start date of redemption to the date of full redemption or conversion. Redemption price of Domestic Preference Shares is equal to book value plus any declared but unpaid dividend in the current period.

---

## (c) Changes in preference shares outstanding

| Financial instruments outstanding | 1 January 2025 Amount (million shares) | 1 January 2025 In original currency (million) | 1 January 2025 In RMB (million) | Movement during the year Amount (million shares) | Movement during the year In original currency (million) | Movement during the year In RMB (million) | 31 December 2025 Amount (million shares) | 31 December 2025 In original currency (million) | 31 December 2025 In RMB (million) |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| **Offshore Preference Shares** | | | | | | | | | |
| USD | 145 | 2,900 | 19,716 | (145) | (2,900) | (19,716) | - | - | - |
| **Domestic Preference Shares** | | | | | | | | | |
| RMB2015 | 450 | 45,000 | 45,000 | - | - | - | 450 | 45,000 | 45,000 |
| RMB2019 | 700 | 70,000 | 70,000 | - | - | - | 700 | 70,000 | 70,000 |
| **Total** | | | 134,716 | | | (19,716) | | | 115,000 |

The carrying amount of Preference Shares issued by the Bank, net of related issuance fees, was RMB114,927 million as at 31 December 2025 (31 December 2024: RMB134,614 million).

The Bank redeemed all of the USD Offshore Preference Shares on 23 September 2025.

## (2) Perpetual bonds

### (a) Perpetual bonds outstanding

| Financial instruments outstanding | Issue date | Accounting classification | Initial interest rate | Issue price | Amount (million units) | In original currency (million) | In RMB (million) | Maturity | Conversion condition | Conversion |
| :--- | :--- | :--- | :---: | :--- | :---: | :---: | :---: | :---: | :---: | :---: |
| **Offshore** | | | | | | | | | | |
| USD Perpetual bond | 24/09/2021 | Equity | 3.20% | Note (i) | N/A | 6,160 | 39,793 | None | None | No |
| **Domestic** | | | | | | | | | | |
| RMB2021 Perpetual bond Series 1 | 04/06/2021 | Equity | 4.04% | RMB100/Unit | 700 | 70,000 | 70,000 | None | None | No |
| RMB2021 Perpetual bond Series 2 | 24/11/2021 | Equity | 3.65% | RMB100/Unit | 300 | 30,000 | 30,000 | None | None | No |
| RMB2024 Perpetual bond Series 1 | 10/07/2024 | Equity | 2.35% | RMB100/Unit | 500 | 50,000 | 50,000 | None | None | No |
| RMB2025 Perpetual bond Series 1 | 09/05/2025 | Equity | 1.97% | RMB100/Unit | 400 | 40,000 | 40,000 | None | None | No |
| RMB2025 Perpetual bond Series 2 | 06/11/2025 | Equity | 2.21% | RMB100/Unit | 400 | 40,000 | 40,000 | None | None | No |
| **Total** | | | | | | | 269,793 | | | |

(i) Offshore USD Perpetual Bond was issued in specific denomination of USD200,000 and integral multiple of USD1,000 in excess thereof at an issue price of 100%.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (b) Main clauses and basic information

With the approvals of relevant regulatory authorities, the Bank issued RMB70,000 million, RMB30,000 million, RMB50,000 million, RMB40,000 million and RMB40,000 million of undated capital bonds on 4 June 2021, 24 November 2021, 10 July 2024, 9 May 2025 and 6 November 2025 (hereinafter referred to as “2021 Domestic Perpetual Bond Series 1”, “2021 Domestic Perpetual Bond Series 2”, “2024 Domestic Perpetual Bond Series 1”, “2025 Domestic Perpetual Bond Series 1” and “2025 Domestic Perpetual Bond Series 2” respectively, collectively Domestic Perpetual Bonds) in the National Interbank Bond Market.

The Bank issued USD6,160 million of undated capital bonds (hereinafter referred to as “Offshore Perpetual Bond”) on The Stock Exchange of Hong Kong Limited on 24 September 2021.

The funds raised by the Bank from the bonds were used to supplement additional tier 1 capital of the Bank in accordance with the relevant laws and approvals by regulatory authorities.

### (i) Interest

Each Domestic Perpetual Bond has a par value of RMB100, and the interest rate of the bonds for the first five years are 4.04% for 2021 Domestic Perpetual Bond Series 1, 3.65% for 2021 Domestic Perpetual Bond Series 2, 2.35% for 2024 Domestic Perpetual Bond Series 1, 1.97% for 2025 Domestic Perpetual Bond Series 1, and 2.21% for 2025 Domestic Perpetual Bond Series 2, resetting every 5 years. The rates are determined by a benchmark rate plus a fixed spread. The initial fixed spreads are the difference between the interest rate and the benchmark rate as determined at the time of issuance. The fixed spread will not be adjusted once determined during the duration period. The interest of Domestic Perpetual Bonds shall be paid annually.

The interest rate of Offshore Perpetual Bond for the first five years is 3.20%, resetting every 5 years. The rate is determined by a benchmark rate plus a fixed spread, and the fixed spread will remain unchanged during the duration period. The dividend shall be paid semi-annually.

### (ii) Interest stopper and setting mechanism

The interest payment for both the Domestic Perpetual Bonds and Offshore Perpetual Bond is non-cumulative. The Bank shall have the right to cancel, in whole or in part, distributions on the interest payment and any such cancellation shall not constitute an event of default. The Bank may, at its sole discretion, use the proceeds from the cancelled distributions to meet other obligations as they fall due. However, the Bank shall not distribute profits to ordinary shareholders until resumption of full interest payment.

### (iii) Order of distribution and liquidation method

The claims in respect of Domestic Perpetual Bonds will be subordinated to claims of depositors, general creditors, and subordinated indebtedness that rank senior to Domestic Perpetual Bonds, and will rank in priority to all classes of shares held by shareholders of the Bank. The claims in respect of Offshore Perpetual Bond will be subordinated to claims of depositors, general creditors, tier 2 capital bond holders and subordinated indebtedness that rank senior to the Offshore Perpetual Bond, and will rank in priority to all classes of shares held by shareholders of the Bank. Domestic Perpetual Bonds and Offshore Perpetual Bond will rank pari passu with the claims in respect of any other Additional Tier 1 Capital instruments of the Bank that rank pari passu with the perpetual bonds.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (iv) Write down conditions

For 2021 Domestic Perpetual Bond Series 1, 2021 Domestic Perpetual Bond Series 2, 2024 Domestic Perpetual Bond Series 1, 2025 Domestic Perpetual Bond Series 1, and 2025 Domestic Perpetual Bond Series 2 upon the occurrence of a Non-Viability Trigger Event, the Bank has the right to write down all or part of the nominal amount of the outstanding perpetual bonds without the need for the consent of the bond holders.

For Offshore Perpetual Bond, upon the occurrence of a Non-Viability Trigger Event, the Bank has the right to write down all or part of the perpetual bonds issued and outstanding at that time up to the total nominal value without the need for the consent of the bond holders.

## (v) Redemption conditions

The duration of the Domestic Perpetual Bonds and Offshore Perpetual Bond is the same as the continuing operation of the Bank. Five years after the issuance date of the Domestic Perpetual Bonds and Offshore Perpetual Bond, the Bank shall have the right to redeem them in whole or in part on each distribution payment date (including the fifth distribution payment date since the issuance). In the event that the perpetual bonds are not classified as additional tier 1 capital due to unpredicted changes in regulations, the Bank shall have the right to redeem Domestic Perpetual Bonds and Offshore Perpetual Bond fully instead of partly.

## (c) Changes in perpetual bonds outstanding

| Financial instruments outstanding | 1 Jan 2025 Amount (million units) | 1 Jan 2025 In original currency (million) | 1 Jan 2025 In RMB (million) | Movement Amount (million units) | Movement In original currency (million) | Movement In RMB (million) | 31 Dec 2025 Amount (million units) | 31 Dec 2025 In original currency (million) | 31 Dec 2025 In RMB (million) |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| **Offshore** | | | | | | | | | |
| USD Perpetual bond | N/A | 6,160 | 39,793 | – | – | – | N/A | 6,160 | 39,793 |
| **Domestic** | | | | | | | | | |
| RMB2021 Perpetual bond Series 1 | 700 | 70,000 | 70,000 | – | – | – | 700 | 70,000 | 70,000 |
| RMB2021 Perpetual bond Series 2 | 300 | 30,000 | 30,000 | – | – | – | 300 | 30,000 | 30,000 |
| RMB2024 Perpetual bond Series 1 | 500 | 50,000 | 50,000 | – | – | – | 500 | 50,000 | 50,000 |
| RMB2025 Perpetual bond Series 1 | – | – | – | 400 | 40,000 | 40,000 | 400 | 40,000 | 40,000 |
| RMB2025 Perpetual bond Series 2 | – | – | – | 400 | 40,000 | 40,000 | 400 | 40,000 | 40,000 |
| **Total** | | | **189,793** | | | **80,000** | | | **269,793** |

The carrying amount of perpetual bond issued by the Bank, net of related issuance fees, was RMB269,730 million as at 31 December 2025 (31 December 2024: RMB189,730 million).

## (3) Interests attributable to equity instruments’ holders

| | | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :---: | :---: |
| 1. | **Total equity attributable to equity holders of the parent company** | **4,244,259** | **3,969,841** |
| | (1) Equity attributable to ordinary shareholders of the parent company | 3,859,602 | 3,645,497 |
| | (2) Equity attributable to other equity instrument holders of the parent company | 384,657 | 324,344 |
| 2. | **Total equity attributable to non-controlling interests** | **27,765** | **17,425** |
| | (1) Equity attributable to ordinary shareholders of non-controlling interests | 19,893 | 16,553 |
| | (2) Equity attributable to other equity instrument holders of non-controlling interests | 7,872 | 872 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## 40. RESERVES

### (a) Capital reserve
Capital reserve mainly includes share premium arising from the issuance of new shares at prices in excess of par value.

### (b) Surplus reserves

#### (i) Statutory surplus reserve
The Bank is required to appropriate 10% of its profit for the year, as determined under the Accounting Standards for Business Enterprises and other relevant requirements (“PRC GAAP”), pursuant to the Company Law of the PRC and the Articles of the Bank to the statutory surplus reserve until the reserve balance reaches 50% of its registered capital.

Subject to the approval of the shareholders, the statutory surplus reserve may be used to offset accumulated losses of the Bank, if any, and may also be converted into capital of the Bank, provided that the balance of the statutory surplus reserve after such capitalisation is not less than 25% of the registered capital immediately before capitalisation.

Pursuant to the resolution of the board of directors’ meeting held on 27 March 2026, the total appropriation to surplus reserve of the Bank was RMB35,519 million (2024: RMB34,769 million), among which an appropriation of 10% of the profit of the Bank for the year determined under the PRC GAAP to the statutory surplus reserve, in the amount of RMB35,375 million (2024: RMB34,671 million), was approved and a total surplus reserve appropriated by overseas branches was RMB144 million (2024: RMB98 million).

#### (ii) Discretionary surplus reserve
After making the appropriation to the statutory surplus reserve, the Bank may also appropriate its profit for the year determined under the PRC GAAP to the discretionary surplus reserve upon approval by the shareholders in a general meeting. Subject to the approval of the shareholders, the discretionary surplus reserve may be used to offset accumulated losses of the Bank, if any, and may be converted into capital.

#### (iii) Other surplus reserves
The Bank’s overseas entities appropriate their profits to other surplus reserves or statutory reserve in accordance with the relevant laws and regulations promulgated by the local regulatory bodies.

### (c) General reserve
In accordance with the “Administrative Measures for the Provision of Reserves of Financial Enterprises” (Cai Jin [2012] No. 20) issued by the MOF, the Bank maintains a general reserve within equity, through the appropriation of profit for the year, which should not be less than 1.5% of the year-end balance of its risk assets, to partially cover unidentified possible losses.

The Bank’s subsidiaries appropriate their profits to the general reserve according to the applicable local regulations.

Pursuant to the resolution of the board of directors’ meeting held on 27 March 2026, the total appropriation to general reserve of the Bank was RMB44,586 million (2024: RMB52,251 million). The general reserve balance of the Bank as at 31 December 2025 amounted to RMB641,403 million, which reached 1.5% of the year-end balance of the Bank’s risk assets.

### (d) Investment revaluation reserve
The investment revaluation reserve records the fair value changes and impairment provision of financial investments measured at FVTOCI.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

### (e) Foreign currency translation reserve

The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of the foreign operations incorporated outside Chinese mainland.

### (f) Cash flow hedging reserve

The cash flow hedging reserve comprises the effective portion of the gains or losses on the hedging instruments.

### (g) Other reserves

Other reserves represent reserves other than the items listed above, including other comprehensive income recognised under the equity method.

### (h) Distributable profits

The Bank’s distributable profit is based on its retained profits as determined under PRC GAAP and IFRS Accounting Standards, whichever is lower. The amount that the Bank’s subsidiaries can legally distribute is determined by referring to their profits as reflected in their financial statements prepared in accordance with the accounting regulations and principles promulgated by the local regulatory bodies. These profits may differ from those dealt with in these financial statements, which are prepared in accordance with IFRS Accounting Standards.

## 41. OTHER COMPREHENSIVE INCOME

### (a) Other comprehensive income attributable to equity holders of the parent company in the consolidated statement of financial position

| | Investment revaluation reserve | Foreign currency translation reserve | Others | Total |
| :--- | :---: | :---: | :---: | :---: |
| 1 January 2024 | 24,047 | (15,608) | (12,517) | (4,078) |
| Movement during the year | 52,918 | 9,516 | (10,661) | 51,773 |
| 31 December 2024 and 1 January 2025 | 76,965 | (6,092) | (23,178) | 47,695 |
| Movement during the year | (25,720) | (8,203) | 3,327 | (30,596) |
| 31 December 2025 | 51,245 | (14,295) | (19,851) | 17,099 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (b) Other comprehensive income in the consolidated statement of profit or loss and other comprehensive income

| | 2025 | 2024 |
| :--- | :--- | :--- |
| **Items that will not be reclassified to profit or loss:** | | |
| (i) Changes in fair value of equity instruments designated as at FVTOCI | 1,377 | 4,088 |
| Less: Income tax effect | 55 | (319) |
| | 1,432 | 3,769 |
| (ii) Other comprehensive income recognised under the equity method | 0 | 43 |
| (iii) Others | 16 | 24 |
| **Items that may be reclassified subsequently to profit or loss:** | | |
| (i) Changes in fair value of debt instruments measured at FVTOCI | (32,558) | 75,927 |
| Less: Amount transferred to profit or loss from other comprehensive income | (4,808) | (2,490) |
| Less: Income tax effect | 9,548 | (18,923) |
| | (27,818) | 54,514 |
| (ii) Credit losses of debt instruments measured at FVTOCI | (308) | (469) |
| Less: Income tax effect | 166 | 200 |
| | (142) | (269) |
| (iii) Cash flow hedging reserve: | | |
| Gains/(losses) during the year | 709 | (1,445) |
| Less: Income tax effect | 66 | 113 |
| | 775 | (1,332) |
| (iv) Other comprehensive income recognised under the equity method | (346) | (58) |
| (v) Foreign currency translation reserve | (8,615) | 9,744 |
| (vi) Others | 4,310 | (15,246) |
| | (30,388) | 51,189 |

## 42. CASH AND CASH EQUIVALENTS

| | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| Cash on hand | 72,868 | 72,069 |
| Balances with central banks other than restricted deposits | 679,586 | 393,112 |
| Deposits with banks and other financial institutions with original maturity of three months or less | 304,079 | 402,017 |
| Placements with banks and other financial institutions with original maturity of three months or less | 279,052 | 325,554 |
| Reverse repurchase agreements with original maturity of three months or less | 433,425 | 1,097,652 |
| | 1,769,010 | 2,290,404 |

---

# 43. INTERESTS IN STRUCTURED ENTITIES

## (a) Structured entities sponsored by third party institutions in which the Group holds an interest

The Group holds an interest in some structured entities sponsored by third party institutions through investments in the products issued by these structured entities. Such structured entities include investment funds, asset management plans and asset-backed securities, and trust plans and the Group does not consolidate these structured entities. The nature and purpose of these structured entities are to generate fees from managing assets on behalf of investors and are financed through the issuance of investment products to investors.

The following table sets out an analysis of the carrying amounts and maximum exposure of interests held by the Group in the structured entities sponsored by third party institutions:

| | 31 December 2025 Carrying amount | 31 December 2025 Maximum exposure | 31 December 2024 Carrying amount | 31 December 2024 Maximum exposure |
| :--- | :--- | :--- | :--- | :--- |
| Investment funds | 78,122 | 78,122 | 36,587 | 36,587 |
| Asset management plans and asset-backed securities | 60,332 | 60,332 | 74,943 | 74,943 |
| Trust plans | 38,723 | 38,723 | 30,476 | 30,476 |
| **Total** | **177,177** | **177,177** | **142,006** | **142,006** |

The maximum loss exposures in the above investment funds, asset management plans and asset-backed securities, and trust plans are the carrying amounts which are measured at amortised cost, or the fair value of the investments held by the Group as at the reporting date.

The following tables set out an analysis of the line items in the consolidated statement of financial position in which assets were recognised relating to the Group’s interests in structured entities sponsored by third party institutions:

| 31 December 2025 | Financial investments measured at FVTPL | Financial investments measured at FVTOCI | Financial investments measured at amortised cost |
| :--- | :--- | :--- | :--- |
| Investment funds | 77,720 | 402 | — |
| Asset management plans and asset-backed securities | 20,221 | 34,649 | 5,462 |
| Trust plans | 11,465 | 19,393 | 7,865 |
| **Total** | **109,406** | **54,444** | **13,327** |

| 31 December 2024 | Financial investments measured at FVTPL | Financial investments measured at FVTOCI | Financial investments measured at amortised cost |
| :--- | :--- | :--- | :--- |
| Investment funds | 36,450 | 137 | — |
| Asset management plans and asset-backed securities | 27,921 | 31,317 | 15,705 |
| Trust plans | 7,143 | 19,919 | 3,414 |
| **Total** | **71,514** | **51,373** | **19,119** |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (b) Structured entities sponsored by the Group in which the Group does not consolidate but holds an interest

The types of unconsolidated structured entities sponsored by the Group include non-principal-guaranteed wealth management products and investment funds. The nature and purpose of these structured entities are to generate fees from managing assets on behalf of investors. These structured entities are financed through the issuance of investment products to investors. Interest held by the Group includes investments in the products issued by these unconsolidated structured entities and fees charged for providing management services. As at 31 December 2025 and 31 December 2024, the carrying amounts of the investments in the products issued by these unconsolidated structured entities and fee receivables being recognised were not significant. Management fee income earned by the Group was included in fee and commission income of personal wealth management and private banking services and corporate wealth management services set out in Note 7.

As at 31 December 2025, the balance of the unconsolidated non-principal-guaranteed wealth management products and investment funds, which are sponsored by the Group, were RMB2,091,240 million (31 December 2024: RMB2,121,075 million) and RMB2,372,342 million (31 December 2024: RMB2,111,149 million).

In both 2025 and 2024, there were no financing transactions through placements and reverse repurchase agreements from the Group with non-principal-guaranteed wealth management products sponsored by the Group.

## (c) Consolidated structured entities

The consolidated structured entities of the Group are primarily the certain investment funds, asset-backed securities and asset management plans issued or initiated and invested by the Group or purchased due to regulatory requirements related to wealth management business. The Group controls these entities because the Group has power over, is exposed to, or has rights to variable returns from its involvement with these entities and has the ability to use its power over these entities to affect the amount of the Group’s variable returns.

# 44. TRANSFERRED FINANCIAL ASSETS

The Group enters into transactions in the ordinary course of business by which it transfers recognised financial assets to third parties or special purpose entities. In some cases, these transfers may give rise to full or partial derecognition of the financial assets concerned. In other cases where the transferred assets do not qualify for derecognition as the Group has retained substantially all the risks and rewards of these assets, the Group continues to recognise the transferred assets in the statement of financial position.

## Repurchase transactions and securities lending transactions

Transferred financial assets that do not qualify for derecognition mainly include debt securities held by counterparties as collateral under repurchase agreements and debt securities lent to counterparties under securities lending agreements. The counterparties are allowed to sell or repledge those securities in the absence of default by the Group but has an obligation to return the securities at the maturity of the contract. For securities lent out, if the securities increase or decrease in value, the Group may in certain circumstances require additional cash collateral from counterparties or return part of the cash collateral to counterparties. The Group has determined that it retains substantially all the risks and rewards of these securities and therefore has not derecognised them. In addition, it recognises a financial liability for cash received as collateral.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## Securitisation transactions

The Group transfers credit assets to structured entities which issue asset-backed securities to investors. The Group may acquire some asset-backed securities at the subordinated tranche level and accordingly, may retain parts of the risks and rewards of the transferred credit assets. The Group would determine whether to derecognise the associated credit assets by evaluating the extent to which it retains the risks and rewards of the assets.

For those in which the Group has neither transferred nor retained substantially all the risks and rewards of the transferred credit assets, and retained control of the credit assets, the Group recognises the assets on the consolidated statement of financial position to the extent of the Group’s continuing involvement and the rest is derecognised. The extent of the Group’s continuing involvement is the extent of the risks and rewards undertaken by the Group with value changes of the transferred financial assets. There were no carrying amount of assets that the Group continues to recognise on the consolidated statement of financial position as at 31 December 2025 (31 December 2024: RMB28,723 million).

As at 31 December 2025, the carrying amount of asset-backed securities held by the Group in securitisation transactions that were qualified for derecognition was **RMB878 million** (31 December 2024: **RMB840 million**), and its maximum exposure approximated to the carrying amount.

With respect to the securitisation of financial assets that do not qualify for derecognition, the relevant financial assets are not derecognised, and the consideration received is recorded as a financial liability. There were no transferred credit assets that were not qualified for derecognition of the Group as at 31 December 2025 (31 December 2024: **RMB132 million**).

## 45. ASSETS PLEDGED AS SECURITY

The Group’s collaterals for liabilities or contingent liabilities include financial assets such as securities and bills, which mainly serve as collaterals for repurchase agreements, securities borrowing, or local statutory requirements. As at 31 December 2025, the par value of the financial assets of the Group pledged as collateral amounted to approximately **RMB3,415,579 million** (31 December 2024: approximately **RMB2,202,447 million**).

## 46. SHARE APPRECIATION RIGHTS PLAN

The Bank’s share appreciation rights plan was approved in 2006, which allows share appreciation rights to be granted to eligible participants including directors, senior management and other key personnel designated by the board of directors. The share appreciation rights will be granted and exercised based on the price of the Bank’s H shares and will be valid for 10 years. As at the approval date of these financial statements, no share appreciation rights have been granted.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

# 47. COMMITMENTS AND CONTINGENT LIABILITIES

## (a) Capital commitments

At the end of the reporting period, the Group had capital commitments as follows:

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| Contracted but not provided for | 18,941 | 19,469 |

## (b) Credit commitments

The Group has outstanding commitments to extend credit including approved loans and undrawn credit card limits.

The Group provides letters of credit and financial guarantees to guarantee the performance of customers to third parties.

Bank acceptances comprise undertakings by the Group to pay bills of exchange drawn on customers. The Group expects most acceptances to be settled simultaneously with the reimbursement from the customers.

The contractual amounts of credit commitments by category are set out below. The amounts disclosed in respect of loan commitments and undrawn credit card limits are under the assumption that the amounts will be fully advanced. The amounts for bank acceptances, letters of credit and guarantees represent the maximum potential losses that would be recognised at the end of the reporting period had the counterparties failed to perform as contracted.

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| Bank acceptances | 1,169,736 | 908,973 |
| Guarantees issued | | |
| – Financing letters of guarantees | 97,311 | 40,259 |
| – Non-financing letters of guarantees | 677,886 | 625,887 |
| Sight letters of credit | 49,040 | 51,318 |
| Usance letters of credit | 221,942 | 151,732 |
| Loan commitments | | |
| – With an original maturity of under one year | 34,731 | 43,586 |
| – With an original maturity of one year or over | 449,366 | 415,557 |
| Undrawn credit card limits | 1,155,462 | 1,166,166 |
| | 3,855,474 | 3,403,478 |
| Credit risk-weighted assets of credit commitments | 1,335,778 | 1,190,347 |

---

## (c) Operating leases

The Group acts as a lessor principally through operating leases undertaken by its subsidiary ICBC Leasing. Under irrevocable operating lease contracts, the expected undiscounted minimum lease payments receivable by the Group in the future period amounted to:

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| Within one year | 16,042 | 16,846 |
| Over one year but within two years | 15,697 | 15,033 |
| Over two years but within three years | 13,676 | 13,239 |
| Over three years but within five years | 23,312 | 22,993 |
| Over five years | 40,361 | 44,569 |
| **Total** | **109,088** | **112,680** |

## (d) Legal proceedings and arbitrations

The Group is involved in lawsuits and arbitrations during its normal course of operations. As at 31 December 2025, there were a number of legal proceedings and arbitrations outstanding against the Bank and/or its subsidiaries with a total claimed amount of RMB7,183 million (31 December 2024: RMB8,655 million).

In the opinion of management, the Group has made adequate allowance for any probable losses based on the current facts and circumstances, and the ultimate outcome of these lawsuits and arbitrations will not have any significant impact on the financial position or operations of the Group.

## (e) Redemption commitments of government bonds and securities underwriting commitments

As an underwriting agent of the MOF, the Bank underwrites certain PRC government bonds and sells the bonds to the general public. The Bank is obliged to redeem these bonds at the discretion of the holders at any time prior to maturity. The redemption price for the bonds is based on the nominal value of the bonds plus any interest accrued up to the redemption date. The MOF will not provide funding for the early redemption of these PRC government bonds on a back-to-back basis but is obliged to repay the principal and the respective interest upon maturity. The redemption obligations, which represent the nominal value of government bonds underwritten and sold by the Group, but not yet matured as at 31 December 2025 were RMB58,062 million (31 December 2024: RMB53,445 million). Management expects that the redemption obligations of these PRC government bonds by the Bank prior to maturity will not be material.

As at December 31, 2025, the Group had no outstanding bond underwriting commitments (December 31, 2024: RMB400 million).

## (f) Designated funds and loans

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| Designated funds | 4,821,597 | 4,586,796 |
| Designated loans | 4,821,477 | 4,586,664 |

The **designated funds** represent the funding that the trustors have instructed the Group to use to make loans to third parties as designated by them. The credit risk remains with the trustors.

The **designated loans** represent the loans granted to specific borrowers designated by the trustors on their behalf according to the entrust agreements signed by the Group and the trustors. The Group does not bear any risk.

---

### (g) Fiduciary activities

The Group provides custody, trust and asset management services to third parties. Revenue from such activities is included in “net fee and commission income” set out in Note 7. Those assets held in a fiduciary capacity are not included in the Group’s consolidated statement of financial position.

# 48. RELATED PARTY DISCLOSURES

In addition to the transactions detailed elsewhere in these consolidated financial statements, the Group had the following transactions with related parties during the reporting year:

## (a) The MOF

The MOF is a ministry under the State Council of the PRC, primarily responsible for, among others, state fiscal revenues, expenses and taxation policies. As at 31 December 2025, the MOF directly owned approximately 31.14% (31 December 2024: approximately 31.14%) of the issued share capital of the Bank. The Group entered into banking transactions with the MOF in its ordinary course of business. Details of the major transactions are as follows:

| | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| **Balances at end of the year:** | | |
| The PRC government bonds and the special government bond | 4,734,450 | 3,325,998 |

| | 2025 | 2024 |
| :--- | :--- | :--- |
| **Transactions during the year:** | | |
| Interest income on the government bonds | 83,771 | 64,747 |

Other related party transactions between the Group and enterprises under the control or joint control of the MOF are disclosed in Note 48(i) “Transactions with state-owned entities in the PRC”.

## (b) Central Huijin Investment Ltd.

Central Huijin Investment Ltd. (“Huijin”) is a wholly-owned subsidiary of China Investment Corporation, and in accordance with the authorisation of the State Government, Huijin makes equity investments in major state-owned financial enterprises, and shall, to the extent of its capital contribution, exercise the rights and perform the obligations as an investor on behalf of the State Government in accordance with applicable laws, to achieve the goal of preserving and enhancing the value of state-owned financial assets. Huijin does not conduct any other businesses or commercial activities nor intervene in the day-to-day business operations of the financial enterprises in which it invests. Huijin was established on 16 December 2003 with a total registered and paid-in capital of RMB828,209 million. As at 31 December 2025, Huijin directly owned approximately 34.79% (31 December 2024: approximately 34.79%) of the issued share capital of the Bank.

As at 31 December 2025, bonds issued by Huijin (“the Huijin Bonds”) held by the Group were of an aggregate face value of RMB86,272 million (31 December 2024: RMB58,897 million), with terms ranging from two to thirty years and coupon rates ranging from 1.73% to 4.20%. The Huijin Bonds are government-backed bonds, short-term bills and medium-term notes. The Group’s subscription of the Huijin Bonds was conducted in the ordinary course of business, in compliance with relevant regulatory and the corporate governance requirements of the Group.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

The Group entered into banking transactions with Huijin in the ordinary course of business under normal commercial terms and the transactions were priced based on market rates. Details of the major transactions are as follows:

| Balances at end of the year: | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| Debt securities purchased | 87,471 | 59,573 |
| Loans and advances to customers | 36,424 | 68,139 |
| Due to customers | 98,405 | 35,642 |

| Transactions during the year: | 2025 | 2024 |
| :--- | :---: | :---: |
| Interest income on debt securities purchased | 1,886 | 1,377 |
| Interest income on loans and advances to customers | 1,355 | 2,074 |
| Interest expense on amounts due to customers | 672 | 381 |

Huijin holds equity interests in certain other banks and financial institutions under the direction of the State Government. The Group entered into transactions with these banks and financial institutions in the ordinary course of business under normal commercial terms and the transactions were priced based on market rates. Management considers that these banks and financial institutions are competitors of the Group. Details of major transactions conducted with these banks and financial institutions are as follows:

| Balances at end of the year: | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| Debt securities purchased | 1,023,813 | 1,153,794 |
| Due from banks and other financial institutions | 377,105 | 273,219 |
| Reverse repurchase agreements | 39,422 | 84,763 |
| Loans and advances to customers | 8,657 | 2,544 |
| Derivative financial assets | 5,880 | 6,206 |
| Due to banks and other financial institutions | 570,766 | 396,947 |
| Repurchase agreements | 16,694 | 3,400 |
| Derivative financial liabilities | 6,529 | 31,419 |
| Due to customers | 41,794 | 12,947 |
| Credit commitments | 29,828 | 7,924 |

| Transactions during the year: | 2025 | 2024 |
| :--- | :---: | :---: |
| Interest income on debt securities purchased | 20,476 | 27,655 |
| Interest income on amounts due from banks and other financial institutions | 6,389 | 2,849 |
| Interest income on reverse repurchase agreements | 118 | 35 |
| Interest income on loans and advances to customers | 197 | 74 |
| Interest expense on amounts due to banks and other financial institutions | 9,808 | 5,004 |
| Interest expense on repurchase agreements | 22 | 4 |
| Interest expense on amounts due to customers | 637 | 228 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (c) National Council for Social Security Fund of the People's Republic of China

National Council for Social Security Fund (the "SSF") is a public institution managed by the MOF. It is the management and operating organisation of the national social security fund. As at 31 December 2025, the SSF held approximately 5.35% (31 December 2024: approximately 5.31%) of the Bank's issued share capital. The Group entered into banking transactions with the SSF in the ordinary course of business under normal commercial terms and the transactions were priced based on market rates. Details of the major transactions are as follows:

| Balances at end of the year: | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| Deposited funds | 376,750 | 227,000 |

| Transactions during the year: | 2025 | 2024 |
| :--- | :--- | :--- |
| Interest expense | 11,265 | 10,015 |

## (d) Subsidiaries

| Balances at end of the year: | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| Financial investments | 37,601 | 39,769 |
| Due from banks and other financial institutions | 384,587 | 366,583 |
| Reverse repurchase agreements | 5,850 | 7,398 |
| Loans and advances to customers | 85,288 | 90,772 |
| Derivative financial assets | 4,885 | 5,971 |
| Due to banks and other financial institutions | 205,768 | 482,000 |
| Repurchase agreements | 19,324 | 2,924 |
| Derivative financial liabilities | 9,439 | 9,303 |
| Credit commitments | 14,204 | 26,354 |

| Transactions during the year: | 2025 | 2024 |
| :--- | :--- | :--- |
| Interest income on financial investments | 1,929 | 2,054 |
| Interest income on amounts due from banks and other financial institutions | 2,499 | 2,685 |
| Interest income on reverse repurchase agreements | 21 | 5 |
| Interest income on loans and advances to customers | 3,309 | 3,746 |
| Interest expense on amounts due to banks and other financial institutions | 3,408 | 6,171 |
| Interest expense on repurchase agreements | 129 | 1 |
| Fee and commission income | 2,902 | 3,788 |

The major balances and transactions with subsidiaries have been eliminated in the consolidated financial statements.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (e) Associates and affiliates

| Balances at end of the year: | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| Due from banks and other financial institutions | 666 | 722 |
| Reverse repurchase agreements | 1,843 | 1,837 |
| Loans and advances to customers | 7,135 | 4,894 |
| Derivative financial assets | 2,250 | 1,825 |
| Due to banks and other financial institutions | 3,900 | 2,554 |
| Due to customers | 4,735 | 2,968 |
| Derivative financial liabilities | 1,973 | 1,587 |
| Credit commitments | 7,795 | 8,293 |

| Transactions during the year: | 2025 | 2024 |
| :--- | :--- | :--- |
| Interest income on debt securities purchased | – | 133 |
| Interest income on amounts due from banks and other financial institutions | 15 | 22 |
| Interest income on loans and advances to customers | 346 | 237 |
| Interest expense on amounts due to banks and other financial institutions | 281 | 297 |
| Interest expense on amounts due to customers | 62 | 22 |

Transactions between the Group and the aforementioned parties were conducted under normal commercial terms and conditions and priced based on market rates.

## (f) Joint ventures and affiliates

| Balances at end of the year: | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| Loans and advances to customers | – | 217 |
| Due to banks and other financial institutions | 190 | 643 |
| Due to customers | 87 | 139 |

| Transactions during the year: | 2025 | 2024 |
| :--- | :--- | :--- |
| Interest income on loans and advances to customers | 0 | 27 |
| Interest expense on amounts due to banks and other financial institutions | 1 | 4 |
| Interest expense on amounts due to customers | 1 | 3 |

Transactions between the Group and the aforementioned parties were conducted in the ordinary course of business under normal terms and conditions and priced based on market rates.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (g) Key management personnel

The key management personnel are those persons who have the authority and responsibility to plan, direct and control the activities of the Group, directly or indirectly, including members of the board of directors and the board of supervisors, and executive officers.

The aggregate compensation of key management personnel is as follows:

| | 2025 | 2024 |
| :--- | :--- | :--- |
| | **In RMB’000** | **In RMB’000** |
| Salaries and benefits | 10,984 | 14,926 |

The above remuneration before tax payable to key management personnel for 2024 represents the total amount of their annual remunerations, which includes the amount disclosed in the 2024 annual report.

The Board of Supervisors of the Bank was officially dissolved in September 2025. The total compensation of key management personnel disclosed in the above table includes the remuneration of supervisors during the existence of the Board of Supervisors within the current year.

The total compensation packages for the Chairman of the Board of Directors, President, Executive Directors, and other Senior Management members have not been finalised in accordance with the regulations of the PRC relevant authorities. The total remuneration not yet accrued is not expected to have a significant impact on the Group’s 2025 consolidated financial statements. The total compensation packages will be further disclosed when determined by the relevant authorities.

Related parties of the Group include key management personnel of the Group and their close relatives, as well as companies controlled, jointly controlled or significantly influenced by key management personnel or their close relatives.

In 2025, there were no material transactions and balances with key management personnel individually or in the aggregate (2024: Immaterial). The Group entered into banking transactions with key management personnel in the ordinary course of business.

The Group’s aggregate balance of loans and credit card overdrafts to the persons who are considered as related parties according to the relevant rules of Shanghai Stock Exchange was RMB0.43 million as at 31 December 2025 (31 December 2024: RMB0.23 million).

The Bank’s aggregate balance of loans and credit card overdrafts to the persons who are considered as related parties according to the relevant rules of the NFRA was RMB135.54 million as at 31 December 2025 (31 December 2024: RMB113.31 million).

The transactions between the Group and the aforementioned parties were conducted in the ordinary course of business under normal terms and conditions and priced based on market rates.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (h) Annuity fund

Apart from the obligations for defined contributions to the annuity fund established by the Bank, annuity fund held A shares of the Bank with market value of RMB10.81 million as at 31 December 2025 (31 December 2024: RMB42.43 million), and bonds issued by the Bank of RMB698.78 million as at 31 December 2025 (31 December 2024: RMB809.16 million).

## (i) Transactions with state-owned entities in the PRC

The Group operates in an economic environment predominated by enterprises directly or indirectly owned and/or controlled by the Government through its authorities, affiliates or other organisations (collectively the “state-owned entities”). During the reporting year, the Group entered into extensive banking transactions with these state-owned entities including, but not limited to, lending and deposit taking, taking and placing of interbank balances, entrusted lending and the provision of intermediary services, the sale, purchase, underwriting and redemption of bonds issued by other state-owned entities, and the sale, purchase, and leasing of properties and other assets.

The transactions with state-owned entities are activities conducted in the ordinary course of business under normal terms and conditions and priced based on market rates, and the dealings of the Group have not been significantly or unduly affected by the fact that the Group and those state-owned entities are ultimately controlled or owned by the Government. The Group has also established pricing policies for products and services and such pricing policies do not depend on whether or not the customers are state-owned entities.

## (j) Proportion of major related party transactions

The major balances and transactions with subsidiaries have been eliminated in the consolidated financial statements. When calculating the proportion of related party transactions, transactions with the subsidiaries are excluded.

| | 31 December 2025 Balance | 31 December 2025 Percentage | 31 December 2024 Balance | 31 December 2024 Percentage |
| :--- | :--- | :--- | :--- | :--- |
| Financial investments | 5,845,734 | 34.57% | 4,539,365 | 32.07% |
| Due from banks and other financial institutions | 377,771 | 29.89% | 273,941 | 22.46% |
| Reverse repurchase agreements | 41,265 | 7.78% | 86,600 | 7.16% |
| Loans and advances to customers | 52,216 | 0.18% | 75,794 | 0.27% |
| Derivative financial assets | 8,130 | 6.23% | 8,031 | 3.61% |
| Due to banks and other financial institutions | 574,856 | 11.26% | 400,144 | 8.72% |
| Repurchase agreements | 16,694 | 0.66% | 3,400 | 0.22% |
| Derivative financial liabilities | 8,502 | 6.34% | 33,006 | 16.69% |
| Due to customers | 521,771 | 1.40% | 278,696 | 0.80% |
| Credit commitments | 37,623 | 0.98% | 16,217 | 0.48% |

| | 2025 Amount | 2025 Percentage | 2024 Amount | 2024 Percentage |
| :--- | :--- | :--- | :--- | :--- |
| Interest income | 114,553 | 8.60% | 99,230 | 6.95% |
| Interest expense | 22,749 | 3.27% | 15,958 | 2.02% |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## 49. SEGMENT INFORMATION

### (a) Operating segments

The Group is organised into different operating segments, namely corporate banking, personal banking and treasury operations, based on internal organisation structure, management requirements and internal reporting system.

**Corporate banking**

The corporate banking segment covers the provision of financial products and services to corporations, government agencies and financial institutions. The products and services include corporate loans, trade financing, deposit-taking activities, corporate wealth management services, custody activities and various types of corporate intermediary services.

**Personal banking**

The personal banking segment covers the provision of financial products and services to individual customers. The products and services include personal loans, deposit-taking activities, card business, personal wealth management services and various types of personal intermediary services.

**Treasury operations**

The treasury operations segment covers the Group’s treasury operations which include money market transactions, investment securities, foreign exchange transactions and the holding of derivative positions for its own accounts or on behalf of customers.

**Others**

This segment covers the Group’s assets, liabilities, income and expenses that are not directly attributable or cannot be allocated to a segment on a reasonable basis.

Management monitors the operating results of the Group’s operating segments separately for the purpose of making decisions about resources allocation and performance assessment. Segment information is prepared in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Group.

Transactions between segments mainly represent the provision of funding to and from individual segments. The internal transfer pricing of these transactions is determined with reference to the market rates and has been reflected in the performance of each segment. Net interest income and expense arising on internal fund transfer are referred to as “internal net interest income or expense”. Net interest income and expense relating to third parties are referred to as “external net interest income or expense”.

Segment revenues, expenses, results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. The basis for allocation is mainly based on occupation of or contribution to resources. Income taxes are managed on a group basis and are not allocated to operating segments.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## 2025

| | Corporate banking | Personal banking | Treasury operations | Others | Total |
| :--- | :---: | :---: | :---: | :---: | :---: |
| External net interest income/(expense) | 367,299 | (493) | 268,320 | – | 635,126 |
| Internal net interest (expense)/income | (43,832) | 266,133 | (222,301) | – | – |
| Net fee and commission income | 67,518 | 43,022 | 631 | – | 111,171 |
| Other income, net (i) (i) Includes net trading income, net gains on financial investments and other net operating income and expense. | 8,851 | 2,898 | 41,243 | 2,106 | 55,098 |
| **Operating income** | **399,836** | **311,560** | **87,893** | **2,106** | **801,395** |
| Operating expenses | (100,338) | (123,131) | (21,280) | (2,125) | (246,874) |
| Impairment (losses)/gains on assets (ii) (ii) Includes credit impairment losses and impairment losses on other assets. | (92,574) | (46,665) | 4,521 | (142) | (134,860) |
| **Operating profit/(loss)** | **206,924** | **141,764** | **71,134** | **(161)** | **419,661** |
| Share of results of associates and joint ventures | – | – | – | 4,774 | 4,774 |
| **Profit before taxation** | **206,924** | **141,764** | **71,134** | **4,613** | **424,435** |
| Income tax expense | | | | | (53,669) |
| **Profit for the year** | | | | | **370,766** |
| **Other segment information:** | | | | | |
| Depreciation and amortisation | 10,249 | 12,785 | 3,545 | 130 | 26,709 |
| Capital expenditure | 19,070 | 24,895 | 6,666 | 251 | 50,882 |

## 31 December 2025

| | Corporate banking | Personal banking | Treasury operations | Others | Total |
| :--- | :---: | :---: | :---: | :---: | :---: |
| **Segment assets** | **21,248,066** | **9,379,843** | **22,621,480** | **124,095** | **53,373,484** |
| Including: Investments in associates and joint ventures | – | – | – | 78,313 | 78,313 |
| Property and equipment | 98,818 | 139,438 | 35,098 | 20,482 | 293,836 |
| Other non-current assets (iii) (iii) Includes intangible assets, goodwill, long-term deferred expenses, right-of-use assets and other non-current assets. | 37,164 | 21,477 | 7,772 | 20,619 | 87,032 |
| Unallocated assets | | | | | 104,289 |
| **Total assets** | | | | | **53,477,773** |
| **Segment liabilities** | **17,303,479** | **21,184,408** | **10,536,232** | **151,705** | **49,175,824** |
| Unallocated liabilities | | | | | 29,925 |
| **Total liabilities** | | | | | **49,205,749** |
| **Other segment information:** | | | | | |
| Credit commitments | 2,700,037 | 1,155,437 | – | – | 3,855,474 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

| 2024 | Corporate banking | Personal banking | Treasury operations | Others | Total |
| :--- | :---: | :---: | :---: | :---: | :---: |
| External net interest income | 351,117 | 24,889 | 261,399 | – | 637,405 |
| Internal net interest (expense)/income | (43,280) | 243,001 | (199,721) | – | – |
| Net fee and commission income | 66,602 | 41,725 | 1,070 | – | 109,397 |
| Other income, net (i) | 7,890 | 523 | 26,927 | 3,984 | 39,324 |
| **Operating income** | 382,329 | 310,138 | 89,675 | 3,984 | 786,126 |
| Operating expenses | (98,394) | (123,792) | (15,937) | (4,032) | (242,155) |
| Impairment (losses)/gains on assets (ii) | (39,043) | (87,636) | 1,532 | (1,516) | (126,663) |
| **Operating profit/(loss)** | 244,892 | 98,710 | 75,270 | (1,564) | 417,308 |
| Share of results of associates and joint ventures | – | – | – | 4,519 | 4,519 |
| **Profit before taxation** | 244,892 | 98,710 | 75,270 | 2,955 | 421,827 |
| Income tax expense | | | | | (54,881) |
| **Profit for the year** | | | | | 366,946 |
| **Other segment information:** | | | | | |
| Depreciation and amortisation | 10,922 | 12,730 | 2,981 | 112 | 26,745 |
| Capital expenditure | 20,102 | 24,473 | 5,534 | 212 | 50,321 |

| 31 December 2024 | Corporate banking | Personal banking | Treasury operations | Others | Total |
| :--- | :---: | :---: | :---: | :---: | :---: |
| Segment assets | 19,463,926 | 9,029,477 | 20,083,673 | 154,623 | 48,731,699 |
| Including: Investments in associates and joint ventures | – | – | – | 73,357 | 73,357 |
| Property and equipment | 108,819 | 140,972 | 30,283 | 22,313 | 302,387 |
| Other non-current assets (iii) | 38,610 | 20,360 | 6,161 | 21,172 | 86,303 |
| Unallocated assets | | | | | 90,047 |
| **Total assets** | | | | | 48,821,746 |
| Segment liabilities | 16,419,197 | 19,534,790 | 8,684,636 | 159,699 | 44,798,322 |
| Unallocated liabilities | | | | | 36,158 |
| **Total liabilities** | | | | | 44,834,480 |
| **Other segment information:** | | | | | |
| Credit commitments | 2,238,406 | 1,165,072 | – | – | 3,403,478 |

(i) Includes net trading income, net gains on financial investments and other net operating expense.
(ii) Includes credit impairment losses and impairment losses on other assets.
(iii) Includes intangible assets, goodwill, long-term deferred expenses, right-of-use assets and other non-current assets.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (b) Geographical information

The Group operates principally in Chinese mainland, and also has branches or subsidiaries operating outside Chinese mainland. The distribution of the geographical areas is as follows.

**Chinese mainland (Head Office and domestic branches)**

- **Head Office ("HO"):** the HO business divisions (including institutions directly managed by the HO and its offices);
- **Yangtze River Delta:** including Shanghai, Jiangsu, Zhejiang, Ningbo and Suzhou;
- **Pearl River Delta:** including Guangdong, Shenzhen, Fujian and Xiamen;
- **Bohai Rim:** including Beijing, Tianjin, Hebei, Shandong and Qingdao;
- **Central China:** including Shanxi, Henan, Hubei, Hunan, Anhui, Jiangxi and Hainan;
- **Western China:** including Chongqing, Sichuan, Guizhou, Yunnan, Guangxi, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang, Inner Mongolia and Xizang; and
- **Northeastern China:** including Liaoning, Heilongjiang, Jilin and Dalian.

**Overseas and others**

Branches located outside Chinese mainland, domestic and overseas subsidiaries, and investments in associates and joint ventures.

| 2025 | Chinese mainland (HO and domestic branches): Head Office | Chinese mainland (HO and domestic branches): Yangtze River Delta | Chinese mainland (HO and domestic branches): Pearl River Delta | Chinese mainland (HO and domestic branches): Bohai Rim | Chinese mainland (HO and domestic branches): Central China | Chinese mainland (HO and domestic branches): Western China | Chinese mainland (HO and domestic branches): Northeastern China | Overseas and others | Eliminations | Total |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| External net interest income/(expense) | 294,549 | 85,159 | 59,720 | (9,197) | 68,978 | 94,596 | (3,642) | 44,963 | - | 635,126 |
| Internal net interest (expense)/income | (304,783) | 45,782 | 27,352 | 162,311 | 28,819 | 16,300 | 29,285 | (5,066) | - | - |
| Net fee and commission income | 30,262 | 20,147 | 11,491 | 14,634 | 9,530 | 9,367 | 1,935 | 15,035 | (1,230) | 111,171 |
| Other income/(expense), net (i) | 29,409 | (1,047) | (934) | 415 | 154 | (290) | 276 | 26,023 | 1,092 | 55,098 |
| **Operating income** | **49,437** | **150,041** | **97,629** | **168,163** | **107,481** | **119,973** | **27,854** | **80,955** | **(138)** | **801,395** |
| Operating expenses | (28,391) | (38,020) | (26,900) | (40,569) | (34,185) | (39,422) | (14,333) | (25,192) | 138 | (246,874) |
| Impairment gains/(losses) on assets (ii) | 43,513 | (28,192) | (46,290) | (24,183) | (25,546) | (26,420) | (4,776) | (22,966) | - | (134,860) |
| **Operating profit** | **64,559** | **83,829** | **24,439** | **103,411** | **47,750** | **54,131** | **8,745** | **32,797** | **-** | **419,661** |
| Share of results of associates and joint ventures | - | - | - | - | - | - | - | 4,774 | - | 4,774 |
| **Profit before taxation** | **64,559** | **83,829** | **24,439** | **103,411** | **47,750** | **54,131** | **8,745** | **37,571** | **-** | **424,435** |
| Income tax expense | | | | | | | | | | (53,669) |
| **Profit for the year** | | | | | | | | | | **370,766** |
| **Other segment information:** | | | | | | | | | | |
| Depreciation and amortisation | 4,441 | 4,091 | 2,680 | 3,843 | 3,557 | 3,944 | 1,591 | 2,562 | - | 26,709 |
| Capital expenditure | 5,477 | 2,983 | 2,117 | 2,788 | 3,165 | 3,247 | 976 | 30,129 | - | 50,882 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## 31 December 2025

| | Chinese mainland (HO and domestic branches): Head Office | Chinese mainland (HO and domestic branches): Yangtze River Delta | Chinese mainland (HO and domestic branches): Pearl River Delta | Chinese mainland (HO and domestic branches): Bohai Rim | Chinese mainland (HO and domestic branches): Central China | Chinese mainland (HO and domestic branches): Western China | Chinese mainland (HO and domestic branches): Northeastern China | Overseas and others | Eliminations | Total |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| Assets by geographical areas | 6,422,934 | 14,825,133 | 9,125,421 | 8,087,272 | 6,184,419 | 6,909,241 | 1,836,510 | 4,870,964 | (4,888,410) | 53,373,484 |
| Including: Investments in associates and joint ventures | - | - | - | - | - | - | - | 78,313 | - | 78,313 |
| Property and equipment | 11,840 | 29,401 | 13,144 | 18,661 | 16,183 | 19,340 | 10,758 | 174,509 | - | 293,836 |
| Other non-current assets (iii) | 29,410 | 6,712 | 5,334 | 6,552 | 8,082 | 9,917 | 2,414 | 18,611 | - | 87,032 |
| Unallocated assets | | | | | | | | | | 104,289 |
| **Total assets** | | | | | | | | | | **53,477,773** |
| Liabilities by geographical areas | 3,036,925 | 13,365,002 | 8,150,242 | 12,516,422 | 6,262,941 | 6,337,642 | 2,859,459 | 1,535,601 | (4,888,410) | 49,175,824 |
| Unallocated liabilities | | | | | | | | | | 29,925 |
| **Total liabilities** | | | | | | | | | | **49,205,749** |
| **Other segment information:** | | | | | | | | | | |
| Credit commitments | 1,162,911 | 1,890,024 | 1,112,332 | 1,529,793 | 931,861 | 1,088,873 | 173,839 | 945,984 | (4,980,143) | 3,855,474 |

(i) Includes net trading income, net gains on financial investments and other net operating income and expense.
(ii) Includes credit impairment losses and impairment losses on other assets.
(iii) Includes intangible assets, goodwill, long-term deferred expenses, right-of-use assets and other non-current assets.

## 2024

| | Chinese mainland (HO and domestic branches): Head Office | Chinese mainland (HO and domestic branches): Yangtze River Delta | Chinese mainland (HO and domestic branches): Pearl River Delta | Chinese mainland (HO and domestic branches): Bohai Rim | Chinese mainland (HO and domestic branches): Central China | Chinese mainland (HO and domestic branches): Western China | Chinese mainland (HO and domestic branches): Northeastern China | Overseas and others | Eliminations | Total |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| External net interest income/(expense) | 309,990 | 69,548 | 59,671 | (23,811) | 70,210 | 95,685 | 2,633 | 53,479 | - | 637,405 |
| Internal net interest (expense)/income | (343,871) | 63,424 | 33,825 | 173,886 | 32,743 | 20,897 | 24,650 | (5,554) | - | - |
| Net fee and commission income | 30,898 | 19,410 | 12,503 | 14,609 | 8,673 | 9,135 | 1,950 | 13,544 | (1,325) | 109,397 |
| Other income/(expense), net (i) | 26,593 | (891) | (925) | (975) | (85) | (795) | 560 | 14,550 | 1,292 | 39,324 |
| **Operating income** | 23,610 | 151,491 | 105,074 | 163,709 | 111,541 | 124,922 | 29,793 | 76,019 | (33) | 786,126 |
| Operating expenses | (26,847) | (37,865) | (26,846) | (39,395) | (33,754) | (38,684) | (13,550) | (25,247) | 33 | (242,155) |
| Impairment gains/(losses) on assets (ii) | 35,376 | (32,911) | (34,352) | (21,584) | (28,413) | (30,558) | (5,189) | (9,032) | - | (126,663) |
| **Operating profit** | 32,139 | 80,715 | 43,876 | 102,730 | 49,374 | 55,680 | 11,054 | 41,740 | - | 417,308 |
| Share of results of associates and joint ventures | - | - | - | - | - | - | - | 4,519 | - | 4,519 |
| **Profit before taxation** | 32,139 | 80,715 | 43,876 | 102,730 | 49,374 | 55,680 | 11,054 | 46,259 | - | 421,827 |
| Income tax expense | | | | | | | | | | (54,881) |
| **Profit for the year** | | | | | | | | | | **366,946** |
| **Other segment information:** | | | | | | | | | | |
| Depreciation and amortisation | 4,396 | 4,140 | 2,785 | 3,916 | 3,610 | 4,083 | 1,484 | 2,331 | - | 26,745 |
| Capital expenditure | 5,489 | 3,152 | 2,616 | 3,191 | 2,401 | 2,921 | 850 | 29,701 | - | 50,321 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

| | 31 December 2024 | | | | | | | | | |
|---|---|---|---|---|---|---|---|---|---|---|
| | **Chinese mainland (HO and domestic branches)** | | | | | | | **Overseas and others** | **Eliminations** | **Total** |
| | **Head Office** | **Yangtze River Delta** | **Pearl River Delta** | **Bohai Rim** | **Central China** | **Western China** | **Northeastern China** | | | |
| Assets by geographical areas | 7,841,046 | 12,434,709 | 7,718,129 | 7,246,667 | 5,406,280 | 6,270,179 | 1,696,003 | 5,753,936 | (5,635,250) | 48,731,699 |
| Including: Investments in associates and joint ventures | - | - | - | - | - | - | - | 73,357 | - | 73,357 |
| Property and equipment | 11,869 | 30,333 | 13,457 | 18,533 | 16,764 | 20,374 | 7,490 | 183,567 | - | 302,387 |
| Other non-current assets (iii) | 18,869 | 6,878 | 5,741 | 6,897 | 8,377 | 9,832 | 2,140 | 27,641 | (72) | 86,303 |
| Unallocated assets | | | | | | | | | | 90,047 |
| **Total assets** | | | | | | | | | | **48,821,746** |
| Liabilities by geographical areas | 4,716,988 | 11,143,759 | 6,759,439 | 11,183,389 | 5,441,641 | 5,672,095 | 2,560,972 | 2,955,289 | (5,635,250) | 44,798,322 |
| Unallocated liabilities | | | | | | | | | | 36,158 |
| **Total liabilities** | | | | | | | | | | **44,834,480** |
| Other segment information: | | | | | | | | | | |
| Credit commitments | 1,182,427 | 1,809,734 | 1,083,228 | 1,190,983 | 859,622 | 954,749 | 178,126 | 834,035 | (4,689,426) | 3,403,478 |

(i) Includes net trading income, net gains on financial investments and other net operating expense.
(ii) Includes credit impairment losses and impairment losses on other assets.
(iii) Includes intangible assets, goodwill, long-term deferred expenses, right-of-use assets and other non-current assets.

## 50. FINANCIAL RISK MANAGEMENT

The Bank’s board of directors (the “Board”) bears the ultimate responsibility for comprehensive risk management and the Bank’s Risk Management Committee is responsible for continuously oversees the Bank’s risk management system.

The President supervises risk management and reports directly to the Board. He chairs two management committees including the Risk Management Committee and the Asset and Liability Management Committee, which set the risk management strategies and appetite, evaluate and formulate risk management policies and procedures, and make recommendations through the President to the Risk Management Committee of the Board. The Chief Risk Officer assists the President to supervise the Bank’s risk management and make decisions.

The Group has clearly defined the roles of each department in monitoring financial risks within the Group. The Credit Management Department monitors credit risk, the Risk Management Department together with the Asset and Liability Management Department monitor market and liquidity risks, and the Internal Control and Compliance Department monitors operational risk. The Risk Management Department is primarily responsible for establishing and coordinating a comprehensive risk management framework, preparing consolidated reports on credit risk, market risk and operational risk and reporting directly to the Chief Risk Officer.

The Bank maintains a dual-reporting risk management structure at the branch level. Under this structure, the risk management department of the branches report to both the Group Risk Management Department and the management of the branches.

---

# (a) Credit risk

## Definition and scope

Credit risk is the risk of loss arising from a borrower or counterparty's failure to perform its obligations. Operational failures which result in unauthorised or inappropriate guarantees, financial commitments or investments by the Group may also give rise to credit risk. The Group's credit risk is mainly attributable to its credit assets, due from banks and other financial institutions and financial investments.

The Group is also exposed to credit risk in other areas. The derivative financial assets recorded in the consolidated statement of financial position also reflects the credit risk associated with derivative financial instruments . In addition, the Group provides guarantees for customers and may therefore be required to make payments on their behalf. These payments would be recovered from customers in accordance with the terms of the agreement. Therefore, the Group assumes a credit risk similar to that arising from loans and applies the same risk control procedures and policies to reduce risks.

## Credit risk assessment method

### Staging of financial instruments

The Group classifies financial instruments into three stages and makes provisions for expected credit loss accordingly, depending on whether credit risk on that financial instrument has increased significantly since initial recognition and whether the assets have been credit-impaired. Refer to Note 4(10) Impairment of financial assets for the definition of the three stages.

### Classification of credit risk exposures

The Group classifies credit risk exposures of expected credit losses with sufficient information by considering factors such as internal ratings-based ("IRB") segmentation, product types, customer types, industry risk characteristics, and response to macro-economic changes.

### Significant increase in credit risk

The assessment of significant increase in credit risk since initial recognition is performed at least on a quarterly basis for financial instruments held by the Group. The Group takes into consideration all reasonable and supportable information (including forward-looking information) that reflects significant change in credit risk for the purposes of staging of financial instruments. The main considerations are regulatory and operating environment, internal and external credit risk rating, debt-servicing capacity, operating capabilities, contractual terms, and repayment behaviour and willingness. The Group compares the risk of default of a single financial instrument or a portfolio of financial instruments with similar credit risk characteristics as at the end of the reporting period and its risk of default at the date of initial recognition to determine changes in the risk of default over the expected lifetime of a financial instrument or a portfolio of financial instruments. In determining whether credit risk of a financial instrument has increased significantly since initial recognition, the Group considers factors indicating whether the probability of default has risen above threshold, the background for financing have been authenticated, the financial instrument has been past due for more than 30 days, the loan has been modified in payment term of principal or interest, any significant negative issue has been arisen and any other indicators of increase in risk have been noticed.

---

# Notes to the Consolidated Financial Statements (In RMB millions, unless otherwise stated)

## Definition of default

The Group defines a corporate borrower as in default when it meets one or more of the following criteria:
1. The principal or interest of any credit business is past due more than 90 days (not inclusive) to the Group;
2. The corporate borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as liquidation against collateral; or
3. The corporate borrower has the matters refer to in (i) or (ii) above in other financial institutions.

The Group defines a retail business borrower as in default when any single credit asset of a borrower meets one or more of the following criteria:
1. The principal or interest of loan is past due more than 90 days (not inclusive);
2. The retail business borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as liquidation against collateral.

## Impairment assessment

A financial asset is generally considered to be credit-impaired if:
- it has been overdue for more than 90 days (not inclusive);
- in light of economic, legal or other factors, the Group has made concessions to a borrower in financial difficulties, which would otherwise have been impossible under normal circumstances;
- it is probable that the borrower will be insolvent or carry out other financial restructurings;
- due to serious financial difficulties, the financial asset cannot continue to be traded in an active market; and
- there are other objective evidences that indicate the financial asset is impaired.

## Parameters, assumptions and estimation techniques

Loss allowance for a financial instrument is measured at an amount equal to 12-month ECL or lifetime ECL depending on whether a significant increase in credit risk on that financial instrument has occurred since initial recognition and whether an asset is considered to be credit-impaired. ECL for loans and advances to customers, other than those corporate loans and advance to customers which are credit-impaired, is measured using the risk parametric modelling method. The key parameters include Probability of Default (“PD”), Loss Given Default (“LGD”), and Exposure at Default (“EAD”), considering the time value of money.

**PD** is the possibility that a customer will default on its obligation within a certain period of time in light of forward-looking information. The Group’s PD is adjusted based on the results of the IRB approach under the New Basel Capital Accord, taking the forward-looking information into account and deducting the prudential adjustment to reflect the debtor’s point-in-time PD under the current macro-economic environment.

**LGD** is the magnitude of the likely loss if there is a default in light of forward-looking information. LGD depends on the type of counterparty, the method and priority of the recourse, and the type of collateral, taking the forward-looking adjustments into account.

**EAD** refers to the total amount of on- and off-balance sheet exposures in the event of default and is determined based on the historical repayment records.

The assumptions underlying the ECL calculation, such as how the PDs and LGDs of different maturity profiles change are monitored and reviewed on a quarterly basis by the Group.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

The calculation of impairment loss on credit-impaired corporate loans and advance to customers applies the discounted cash flow method. If there is objective evidence that an impairment loss on a loan or advance has incurred, the amount of the loss is measured as the difference between the asset’s gross carrying amount and the present value of estimated future cash flows discounted at the asset’s effective interest rate. The allowance for impairment loss is deducted in the carrying amount. The impairment loss is recognised in the consolidated statement of profit or loss. In determining allowances, the following factors are considered:

- the sustainability of the borrower’s business plan;
- the borrower’s ability to improve performance when a financial difficulty arises;
- the estimated recoverable cash flows from projects and liquidation;
- the availability of other financial support and the realisable value of collateral; and
- the timing of the expected cash flows.

It may not be possible to identify a single, or discrete events that result in the impairment, but it may be possible to identify impairment through the combined effect of several events. The impairment losses are evaluated at the end of each reporting period unless there are other unforeseen circumstances.

## Forward-looking information contained in ECL

The assessment of significant increase in credit risk and the calculation of ECL incorporate forward-looking information. The Group has performed historical data analysis and identified Gross Domestic Product (“GDP”), Consumer Price Index (“CPI”), Broad Money Supply (“M2”), Consumer Confidence Index and other macro-economic indicators as impacting the ECL for each portfolio. The impact of these economic variables on the PD and LGD has been determined by performing statistical regression analysis to understand the correlations among the historical changes of the economic variables, PD and LGD. The impact of these economic variables on the PD and LGD varies according to different types of business. Forecasts of these economic variables are carried out at least quarterly by the Group to provide the best estimate view of the economy over the next year.

When calculating the weighted average ECL provision, the Group determines the optimistic, neutral and pessimistic scenarios and their weightings through a combination of macro-statistical analysis and expert judgement. The optimistic and pessimistic scenarios are of comparable weightings, of which, the weighting of neutral scenario is slightly higher than that of the other two scenarios. The weightings of the scenarios are consistent with those as at 31 December 2024.

As at 31 December 2025, the Group has taken into account different macro-economic scenarios, combined with the impact of factors such as effect of prior period base data on economic development trends, and made forward-looking forecasts of macro-economic indicators. Of which, the year-on-year GDP growth rate used to estimate ECL under neutral scenario is about 5%, and forecasts under optimistic scenario and pessimistic scenario are formed by floating up and down a certain level respectively on the basis of the forecast under neutral scenario.

The Group has carried out sensitivity analysis of macro-economic indicators used in forward-looking measurement. As at 31 December 2025, when the key economic indicators in the neutral scenario moved up or down by 10%, the ECL changed by no more than 5% (31 December 2024: no more than 5%).

## Financial assets contract modification

The Group might modify the terms of loan with a customer based on commercial renegotiations, or when the customer is in financial difficulty, with a view to maximising the recovery of loan.

Such modifications include restructuring the loan to provide extended payment term arrangements, payment holidays or payment forgiveness. Restructuring policies and practices are based on indicators or criteria which, in the judgement of management, indicate that payment will most likely continue, and these policies and practices are reviewed regularly. Such restructures are especially common for medium- to long-term loans.

The following table includes carrying amount of rescheduled loans and advance to customers:

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| Rescheduled loans and advances to customers | 156,027 | 139,086 |
| Including: Impaired loans and advances to customers | 53,897 | 41,821 |

---

# Collateral and other credit enhancements

The amount and type of collateral required depend on the assessment of credit risk of the counterparty. Guidelines are in place specifying the types of collateral and valuation parameters which can be accepted.

Reverse repurchase business is mainly collateralised by bills and marketable securities. As part of certain reverse repurchase agreements, the Group has received collateral that it is allowed to sell or repledge in the absence of default by their owners.

Corporate loans and discounted bills are mainly collateralised by properties or other assets. As at 31 December 2025, the gross carrying amount of corporate loans and discounted bills amounted to RMB21,503,478 million (31 December 2024: RMB19,414,509 million), of which credit exposure covered by collateral amounted to RMB5,448,852 million (31 December 2024: RMB4,779,598 million).

Personal loans are mainly collateralised by residential properties. As at 31 December 2025, the gross carrying amount of personal loans amounted to RMB9,002,636 million (31 December 2024: RMB8,957,720 million), of which credit exposure covered by collateral amounted to RMB7,449,218 million (31 December 2024: RMB7,590,566 million).

The Group prefers more liquid collateral with relatively stable market value and does not accept collateral that is illiquid, with difficulties in registration or high fluctuations in market value. The value of collateral should be appraised and confirmed by the Group or valuation agencies engaged by the Group. The value of collateral should adequately cover the outstanding balance of loans. The Group takes into consideration the types of collateral, state of condition, liquidity, price volatility and realisation cost to determine the loan-to-value ratio of collateral. All collateral has to be registered in accordance with the relevant laws and regulations. The credit officers inspect the collateral and assess the changes in the value of collateral regularly.

The Group monitors the market value of the collateral and when needed, require additional collateral according to agreements. The Group disposes of repossessed assets in an orderly manner.

## (i) Maximum exposure to credit risk without taking into account of any collateral and other credit enhancements

As at the end of the reporting period, the maximum credit risk exposure of the Group without taking into account any collateral and other credit enhancements is set out below:

| | 31 December 2025 | 31 December 2024 |
| :--- | ---: | ---: |
| Balances with central banks | 3,601,690 | 3,250,842 |
| Due from banks and other financial institutions | 1,264,019 | 1,219,876 |
| Derivative financial assets | 130,414 | 222,361 |
| Reverse repurchase agreements | 530,737 | 1,210,217 |
| Loans and advances to customers | 29,712,359 | 27,613,781 |
| Financial investments | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial investments measured at FVTPL | 635,507 | 770,192 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial investments measured at FVTOCI | 3,725,614 | 3,205,926 |
| &nbsp;&nbsp;&nbsp;&nbsp;Financial investments measured at amortised cost | 12,140,183 | 9,851,985 |
| Others | 140,716 | 131,680 |
| | 51,881,239 | 47,476,860 |
| Credit commitments | 3,855,474 | 3,403,478 |
| **Maximum credit risk exposure** | **55,736,713** | **50,880,338** |

## (ii) Risk concentrations

Credit risk is often greater when counterparties are concentrated in one single industry or geographic location or have comparable economic features. In addition, different geographic areas and industrial sectors have their unique characteristics in terms of economic development, and could present a different credit risk.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (1) Loans and advances to customers

### By geographical distribution

The composition of the Group’s gross loans and advances to customers (excluding accrued interest) by geographical distribution is as follows:

| | 31 December 2025 Amount | 31 December 2025 Percentage | 31 December 2024 Amount | 31 December 2024 Percentage |
| :--- | :--- | :--- | :--- | :--- |
| Head Office | 849,602 | 2.79% | 874,284 | 3.08% |
| Yangtze River Delta | 6,756,827 | 22.15% | 6,182,636 | 21.78% |
| Western China | 5,688,006 | 18.64% | 5,233,652 | 18.45% |
| Bohai Rim | 5,109,713 | 16.75% | 4,677,575 | 16.49% |
| Central China | 4,853,907 | 15.91% | 4,416,409 | 15.57% |
| Pearl River Delta | 4,613,631 | 15.12% | 4,348,121 | 15.33% |
| Northeastern China | 1,155,520 | 3.79% | 1,158,000 | 4.08% |
| Overseas and others | 1,478,908 | 4.85% | 1,481,552 | 5.22% |
| **Total** | **30,506,114** | **100.00%** | **28,372,229** | **100.00%** |

### By industry

The composition of the Group’s gross loans and advances to customers (excluding accrued interest) by industry is as follows:

| | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| Transportation, storage and postal services | 4,207,325 | 4,051,167 |
| Leasing and commercial services | 2,882,603 | 2,523,970 |
| Manufacturing | 2,851,934 | 2,575,716 |
| Production and supply of electricity, heating, gas and water | 1,974,823 | 1,868,505 |
| Water, environment and public utility management | 1,924,544 | 1,863,449 |
| Real estate | 1,087,640 | 1,110,747 |
| Wholesale and retail | 1,016,690 | 831,967 |
| Finance | 813,247 | 842,033 |
| Construction | 558,476 | 516,972 |
| Science, education, culture and sanitation | 483,211 | 426,677 |
| Mining | 456,318 | 374,331 |
| Others | 584,860 | 496,689 |
| **Subtotal for corporate loans** | **18,841,671** | **17,482,223** |
| Personal mortgage and business loans | 7,806,087 | 7,761,161 |
| Others | 1,196,549 | 1,196,559 |
| **Subtotal for personal loans** | **9,002,636** | **8,957,720** |
| Discounted bills | 2,661,807 | 1,932,286 |
| **Total for loans and advances to customers** | **30,506,114** | **28,372,229** |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## By collateral

The composition of the Group’s gross loans and advances to customers (excluding accrued interest) by collateral is as follows:

| | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| Unsecured loans | 12,170,570 | 11,078,420 |
| Guaranteed loans | 2,753,819 | 2,708,808 |
| Loans secured by mortgages | 10,803,253 | 10,787,880 |
| Pledged loans | 4,778,472 | 3,797,121 |
| **Total** | **30,506,114** | **28,372,229** |

## Overdue loans

The composition of the Group’s gross overdue loans (excluding accrued interest) by collateral is as follows:

| 31 December 2025 | Overdue for 1 to 90 days | Overdue for 91 days to 1 year | Overdue for 1 to 3 years | Overdue for over 3 years | Total |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Unsecured loans | 26,466 | 45,357 | 41,392 | 13,139 | 126,354 |
| Guaranteed loans | 13,004 | 15,023 | 24,451 | 11,257 | 63,735 |
| Loans secured by mortgages | 89,921 | 75,437 | 78,213 | 22,367 | 265,938 |
| Pledged loans | 916 | 1,086 | 1,031 | 3,675 | 6,708 |
| **Total** | **130,307** | **136,903** | **145,087** | **50,438** | **462,735** |

| 31 December 2024 | Overdue for 1 to 90 days | Overdue for 91 days to 1 year | Overdue for 1 to 3 years | Overdue for over 3 years | Total |
| :--- | :--- | :--- | :--- | :--- | :--- |
| Unsecured loans | 35,138 | 40,223 | 37,036 | 13,592 | 125,989 |
| Guaranteed loans | 9,712 | 17,125 | 23,011 | 6,611 | 56,459 |
| Loans secured by mortgages | 76,542 | 61,971 | 61,143 | 17,870 | 217,526 |
| Pledged loans | 968 | 1,260 | 3,456 | 1,081 | 6,765 |
| **Total** | **122,360** | **120,579** | **124,646** | **39,154** | **406,739** |

---

# (2) Debt securities investments

## By issuers

The following tables present an analysis of the Group’s debt securities investments (excluding accrued interest) by types of issuers and investments:

### 31 December 2025

| | Financial investments measured at FVTPL | Financial investments measured at FVTOCI | Financial investments measured at amortised cost | Total |
| :--- | :---: | :---: | :---: | :---: |
| Governments and central banks | 285,792 | 1,529,473 | 10,750,122 | 12,565,387 |
| Policy banks | 47,495 | 913,419 | 409,316 | 1,370,230 |
| Banks and other financial institutions | 186,135 | 496,640 | 777,216 | 1,459,991 |
| Corporate entities | 86,816 | 746,110 | 84,175 | 917,101 |
| **Total** | **606,238** | **3,685,642** | **12,020,829** | **16,312,709** |

### 31 December 2024

| | Financial investments measured at FVTPL | Financial investments measured at FVTOCI | Financial investments measured at amortised cost | Total |
| :--- | :---: | :---: | :---: | :---: |
| Governments and central banks | 402,632 | 1,673,679 | 8,346,596 | 10,422,907 |
| Policy banks | 35,688 | 512,411 | 549,026 | 1,097,125 |
| Banks and other financial institutions | 230,594 | 398,174 | 769,838 | 1,398,606 |
| Corporate entities | 70,067 | 588,449 | 67,768 | 726,284 |
| **Total** | **738,981** | **3,172,713** | **9,733,228** | **13,644,922** |

## By rating

The Group adopts a credit rating approach to manage the credit risk of the debt securities portfolio held. The ratings are obtained from Bloomberg Composite, or major rating agencies in the countries where the issuers of debt securities are located. The carrying amounts of debt securities investments (excluding accrued interest) analysed by rating as at the end of the reporting period are as follows:

### 31 December 2025

| | Unrated | AAA | AA | A | Below A | Total |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: |
| Governments and central banks | 4,718,801 | 7,539,925 | 147,224 | 100,709 | 58,728 | 12,565,387 |
| Policy banks | 1,155,623 | 123,136 | 17,709 | 73,348 | 414 | 1,370,230 |
| Banks and other financial institutions | 703,794 | 398,231 | 66,444 | 205,294 | 86,228 | 1,459,991 |
| Corporate entities | 370,009 | 366,895 | 36,759 | 104,135 | 39,303 | 917,101 |
| **Total** | **6,948,227** | **8,428,187** | **268,136** | **483,486** | **184,673** | **16,312,709** |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

### 31 December 2024
| | Unrated | AAA | AA | A | Below A | Total |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: |
| Governments and central banks | 3,330,132 | 6,825,677 | 124,512 | 77,960 | 64,626 | 10,422,907 |
| Policy banks | 923,671 | 79,897 | 37,269 | 55,829 | 459 | 1,097,125 |
| Banks and other financial institutions | 611,520 | 380,105 | 68,488 | 219,349 | 119,144 | 1,398,606 |
| Corporate entities | 181,918 | 378,178 | 11,860 | 119,431 | 34,897 | 726,284 |
| **Total** | **5,047,241** | **7,663,857** | **242,129** | **472,569** | **219,126** | **13,644,922** |

## (iii) Three-stage analysis of financial instruments’ risk exposure

The Group’s credit risk stages of financial instruments are as follows:

| 31 December 2025 | Gross Stage 1 | Gross Stage 2 | Gross Stage 3 | Gross Total | Provision Stage 1 | Provision Stage 2 | Provision Stage 3 | Provision Total |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| **Financial assets measured at amortised cost** | | | | | | | | |
| Cash and balances with central banks | 3,674,558 | – | – | 3,674,558 | – | – | – | – |
| Due from banks and other financial institutions | 1,266,605 | – | 152 | 1,266,757 | (2,586) | – | (152) | (2,738) |
| Reverse repurchase agreements | 512,884 | – | – | 512,884 | (32) | – | – | (32) |
| Loans and advances to customers | 26,630,931 | 871,568 | 398,832 | 27,901,331 | (349,667) | (166,682) | (335,401) | (851,750) |
| Financial investments | 12,171,192 | 2,055 | 3,139 | 12,176,386 | (33,199) | (305) | (2,699) | (36,203) |
| **Total** | **44,256,170** | **873,623** | **402,123** | **45,531,916** | **(385,484)** | **(166,987)** | **(338,252)** | **(890,723)** |
| **Financial assets measured at FVTOCI** | | | | | | | | |
| Loans and advances to customers | 2,652,505 | 2,903 | 181 | 2,655,589 | (242) | (136) | (146) | (524) |
| Financial investments | 3,720,566 | 4,797 | 251 | 3,725,614 | (4,844) | (384) | (3,368) | (8,596) |
| **Total** | **6,373,071** | **7,700** | **432** | **6,381,203** | **(5,086)** | **(520)** | **(3,514)** | **(9,120)** |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

### 31 December 2024

| | Gross carrying amount: Stage 1 | Gross carrying amount: Stage 2 | Gross carrying amount: Stage 3 | Gross carrying amount: Total | Provision for ECL: Stage 1 | Provision for ECL: Stage 2 | Provision for ECL: Stage 3 | Provision for ECL: Total |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| **Financial assets measured at amortised cost** | | | | | | | | |
| Cash and balances with central banks | 3,322,911 | – | – | 3,322,911 | – | – | – | – |
| Due from banks and other financial institutions | 1,224,065 | – | 158 | 1,224,223 | (4,189) | – | (158) | (4,347) |
| Reverse repurchase agreements | 1,189,933 | – | – | 1,189,933 | (33) | – | – | (33) |
| Loans and advances to customers | 25,300,817 | 795,620 | 379,423 | 26,475,860 | (354,083) | (156,502) | (304,487) | (815,072) |
| Financial investments | 9,885,410 | 1,836 | 3,142 | 9,890,388 | (35,540) | (11) | (2,852) | (38,403) |
| **Total** | 40,923,136 | 797,456 | 382,723 | 42,103,315 | (393,845) | (156,513) | (307,497) | (857,855) |
| **Financial assets measured at FVTOCI** | | | | | | | | |
| Loans and advances to customers | 1,947,015 | 938 | 35 | 1,947,988 | (353) | (51) | (21) | (425) |
| Financial investments | 3,196,321 | 9,203 | 402 | 3,205,926 | (4,565) | (635) | (3,825) | (9,025) |
| **Total** | 5,143,336 | 10,141 | 437 | 5,153,914 | (4,918) | (686) | (3,846) | (9,450) |

As at 31 December 2025 and 2024, credit risk exposures of credit commitments were mainly classified in Stage 1.

## (b) Liquidity risk

Liquidity risk is the risk that funds will not be sufficient or raised at a reasonable cost in a timely manner to meet the need of asset growth or repayment of debts due, although the Group remains solvent. This may arise from amount or maturity mismatches of assets and liabilities.

The Group manages its liquidity risk through the Asset and Liability Management Department and aims at:

- optimising the structure of assets and liabilities;
- maintaining the stability of the deposit base;
- projecting cash flows and evaluating the level of current assets; and
- maintaining an efficient internal fund transfer mechanism to ensure sufficient liquidity at branch level.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (i) Maturity analysis of assets and liabilities

The tables below summarise the maturity profile of the Group’s assets and liabilities. The actual remaining maturity of the Group’s financial instruments may vary significantly from the following analysis. For example, demand deposits from customers are expected to maintain a stable or increasing balance although they have been classified as repayable on demand in the following tables.

| 31 December 2025 | Overdue/ repayable on demand | Less than one month | One to three months | Three months to one year | One to five years | Over five years | Undated (iii) | Total |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| **Assets:** | | | | | | | | |
| Cash and balances with central banks | 997,661 | 2,222 | 2,978 | 5,050 | 2,858 | – | 2,663,789 | 3,674,558 |
| Due from banks and other financial institutions (i) | 310,734 | 671,040 | 275,882 | 492,675 | 44,425 | – | – | 1,794,756 |
| Derivative financial assets | – | 31,145 | 38,422 | 46,471 | 11,871 | 2,505 | – | 130,414 |
| Loans and advances to customers | 56,715 | 1,408,029 | 1,834,539 | 7,069,964 | 5,133,915 | 14,089,891 | 119,306 | 29,712,359 |
| Financial investments | | | | | | | | |
| Financial investments measured at FVTPL | 126,951 | 19,298 | 79,656 | 207,872 | 190,423 | 182,374 | 137,379 | 943,953 |
| Financial investments measured at FVTOCI | – | 197,770 | 161,923 | 744,274 | 1,720,458 | 900,993 | 97,861 | 3,823,279 |
| Financial investments measured at amortised cost | – | 224,505 | 528,617 | 1,339,672 | 4,756,145 | 5,290,794 | 450 | 12,140,183 |
| Investments in associates and joint ventures | – | – | – | – | – | – | 78,313 | 78,313 |
| Property and equipment | – | – | – | – | – | – | 293,836 | 293,836 |
| Others | 283,207 | 302,189 | 50,067 | 87,116 | 17,024 | 26,556 | 119,963 | 886,122 |
| **Total assets** | 1,775,268 | 2,856,198 | 2,972,084 | 9,993,094 | 11,877,119 | 20,493,113 | 3,510,897 | 53,477,773 |
| **Liabilities:** | | | | | | | | |
| Due to central banks | – | 14,144 | 41,861 | 120,788 | – | – | – | 176,793 |
| Due to banks and other financial institutions (ii) | 2,678,422 | 1,132,835 | 1,700,075 | 2,075,384 | 50,953 | 1,954 | – | 7,639,623 |
| Financial liabilities measured at FVTPL | 138,308 | 5,051 | 1,962 | 2,726 | 1,819 | 330 | – | 150,196 |
| Derivative financial liabilities | – | 35,306 | 33,853 | 52,761 | 10,571 | 1,591 | – | 134,082 |
| Certificates of deposit | – | 61,909 | 117,830 | 241,530 | 81,324 | – | – | 502,593 |
| Due to customers | 14,936,085 | 2,797,021 | 3,139,256 | 7,786,751 | 8,615,322 | 37,343 | – | 37,311,778 |
| Debt securities issued | – | 158,924 | 311,476 | 816,483 | 195,163 | 734,761 | – | 2,216,807 |
| Others | – | 537,726 | 150,347 | 101,818 | 115,453 | 168,533 | – | 1,073,877 |
| **Total liabilities** | 17,752,815 | 4,742,916 | 5,496,660 | 11,198,241 | 9,070,605 | 944,512 | – | 49,205,749 |
| **Net liquidity gap** | (15,977,547) | (1,886,718) | (2,524,576) | (1,205,147) | 2,806,514 | 19,548,601 | 3,510,897 | 4,272,024 |

(i) Includes reverse repurchase agreements.
(ii) Includes repurchase agreements.
(iii) Undated loans and advances to customers and financial investments are impaired or not impaired but overdue for more than one month.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

| | | | | 31 December 2024 | | | | |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| | **Overdue/ repayable on demand** | **Less than one month** | **One to three months** | **Three months to one year** | **One to five years** | **Over five years** | **Undated (iii)** | **Total** |
| **Assets:** | | | | | | | | |
| Cash and balances with central banks | 663,560 | 12,057 | 3,989 | 6,993 | 1,419 | — | 2,634,893 | 3,322,911 |
| Due from banks and other financial institutions (i) | 376,826 | 1,411,071 | 274,396 | 324,274 | 43,526 | — | — | 2,430,093 |
| Derivative financial assets | — | 40,353 | 56,970 | 106,761 | 12,752 | 5,525 | — | 222,361 |
| Loans and advances to customers | 55,352 | 1,401,798 | 1,524,797 | 5,809,922 | 5,157,599 | 13,541,001 | 123,312 | 27,613,781 |
| Financial investments | | | | | | | | |
| Financial investments measured at FVTPL | 115,122 | 10,507 | 34,325 | 277,426 | 249,601 | 211,580 | 111,878 | 1,010,439 |
| Financial investments measured at FVOCI | — | 118,609 | 263,122 | 615,595 | 1,442,912 | 765,555 | 85,359 | 3,291,152 |
| Financial investments measured at amortised cost | — | 111,481 | 220,800 | 1,467,655 | 3,388,429 | 4,663,189 | 431 | 9,851,985 |
| Investments in associates and joint ventures | — | — | — | — | — | — | 73,357 | 73,357 |
| Property and equipment | — | — | — | — | — | — | 302,387 | 302,387 |
| Others | 183,447 | 233,352 | 41,809 | 72,476 | 28,340 | 32,073 | 111,783 | 703,280 |
| **Total assets** | 1,394,307 | 3,339,228 | 2,420,208 | 8,681,102 | 10,324,578 | 19,218,923 | 3,443,400 | 48,821,746 |
| **Liabilities:** | | | | | | | | |
| Due to central banks | — | 9,874 | 46,175 | 113,573 | — | — | — | 169,622 |
| Due to banks and other financial institutions (ii) | 2,757,012 | 844,462 | 638,061 | 1,571,697 | 297,196 | 6,092 | — | 6,114,520 |
| Financial liabilities measured at FVTPL | 66,164 | 2,459 | 895 | 4,615 | 1,669 | 254 | — | 76,056 |
| Derivative financial liabilities | — | 48,034 | 53,927 | 80,581 | 11,533 | 3,720 | — | 197,795 |
| Certificates of deposit | — | 59,484 | 15,729 | 327,008 | 43,198 | — | — | 445,419 |
| Due to customers | 13,778,148 | 1,781,556 | 2,736,664 | 7,896,577 | 8,631,898 | 12,130 | — | 34,836,973 |
| Debt securities issued | — | 149,859 | 138,098 | 826,703 | 229,287 | 684,775 | — | 2,028,722 |
| Others | — | 368,453 | 167,171 | 118,288 | 145,613 | 165,848 | — | 965,373 |
| **Total liabilities** | 16,601,324 | 3,264,181 | 3,796,720 | 10,939,042 | 9,360,394 | 872,819 | — | 44,834,480 |
| **Net liquidity gap** | (15,207,017) | 75,047 | (1,376,512) | (2,257,940) | 964,184 | 18,346,104 | 3,443,400 | 3,987,266 |

(i) Includes reverse repurchase agreements.
(ii) Includes repurchase agreements.
(iii) Undated loans and advances to customers and financial investments are impaired or not impaired but overdue for more than one month.

---

## (ii) Maturity analysis of undiscounted contractual cash flows

The tables below summarise the maturity profile of the Group’s financial instruments based on the undiscounted contractual cash flows. The balances of some items in the tables below are different from the balances in the consolidated statement of financial position as the tables incorporate all cash flows relating to both principal and interest. The Group’s actual cash flows on these instruments may vary significantly from the following analysis. For example, demand deposits from customers are expected to maintain a stable or increasing balance although they have been classified as repayable on demand in the following tables.

### 31 December 2025

| | Overdue/ repayable on demand | Less than one month | One to three months | Three months to one year | One to five years | Over five years | Undated (iv) | Total |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| **Non-derivative cash flows:** | | | | | | | | |
| **Financial assets:** | | | | | | | | |
| Cash and balances with central banks | 997,661 | 2,228 | 2,993 | 5,193 | 2,917 | — | 2,663,789 | 3,674,781 |
| Due from banks and other financial institutions (i) | 310,807 | 673,569 | 279,272 | 505,596 | 56,386 | — | — | 1,825,630 |
| Loans and advances to customers (ii) | 57,845 | 1,435,718 | 1,871,886 | 7,279,561 | 5,623,394 | 16,420,497 | 455,802 | 33,144,703 |
| Financial investments | | | | | | | | |
| Financial investments measured at FVTPL | 126,951 | 19,364 | 80,228 | 214,780 | 213,329 | 201,720 | 137,379 | 993,751 |
| Financial investments measured at FVOCI | — | 198,804 | 165,867 | 785,959 | 1,889,864 | 1,089,276 | 97,861 | 4,227,631 |
| Financial investments measured at amortised cost | — | 226,061 | 543,832 | 1,519,949 | 5,632,735 | 6,409,514 | 3,020 | 14,335,111 |
| Others | 279,690 | 341,197 | 33,290 | 73,985 | 13,634 | 4,778 | — | 746,574 |
| | **1,772,954** | **2,896,941** | **2,977,368** | **10,385,023** | **13,432,259** | **24,125,785** | **3,357,851** | **58,948,181** |
| **Financial liabilities:** | | | | | | | | |
| Due to central banks | — | 14,254 | 42,080 | 121,777 | — | — | — | 178,111 |
| Due to banks and other financial institutions (iii) | 2,678,422 | 1,142,563 | 1,720,256 | 2,104,974 | 59,921 | 3,736 | — | 7,709,872 |
| Financial liabilities measured at FVTPL | 138,308 | 5,317 | 2,010 | 2,841 | 2,028 | 373 | — | 150,877 |
| Certificates of deposit | — | 62,121 | 118,419 | 246,243 | 84,905 | — | — | 511,688 |
| Due to customers | 14,937,484 | 2,798,865 | 3,149,229 | 7,877,497 | 9,036,525 | 40,428 | — | 37,840,028 |
| Debt securities issued | — | 159,314 | 313,056 | 838,341 | 295,794 | 811,690 | — | 2,418,195 |
| Others | — | 529,379 | 13,349 | 13,926 | 16,762 | 3,430 | — | 576,846 |
| | **17,754,214** | **4,711,813** | **5,358,399** | **11,205,599** | **9,495,935** | **859,657** | — | **49,385,617** |
| **Derivative cash flows:** | | | | | | | | |
| Derivative financial instruments settled on net basis | — | (774) | 23 | 464 | 602 | 84 | — | 399 |
| Derivative financial instruments settled on gross basis | | | | | | | | |
| Including: Cash inflow | — | 3,785,495 | 3,623,839 | 5,679,299 | 526,430 | 42,318 | — | 13,657,381 |
| Cash outflow | — | (3,813,240) | (3,601,147) | (5,680,757) | (529,203) | (42,437) | — | (13,666,784) |
| | — | (27,745) | 22,692 | (1,458) | (2,773) | (119) | — | (9,403) |

(i) Includes reverse repurchase agreements.
(ii) The maturity profile of the rescheduled loans’ undiscounted contractual cash flows is determined according to the negotiated terms.
(iii) Includes repurchase agreements.
(iv) Undated loans and advances to customers and financial investments are impaired or not impaired but overdue for more than one month.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

| 31 December 2024 | Overdue/ repayable on demand | Less than one month | One to three months | Three months to one year | One to five years | Over five years | Undated (iv) | Total |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| **Non-derivative cash flows:** | | | | | | | | |
| **Financial assets:** | | | | | | | | |
| Cash and balances with central banks | 663,560 | 12,147 | 4,017 | 7,566 | 1,421 | – | 2,634,893 | 3,323,604 |
| Due from banks and other financial institutions (i) | 377,144 | 1,413,614 | 279,741 | 333,163 | 47,091 | – | – | 2,450,753 |
| Loans and advances to customers (ii) | 56,509 | 1,431,667 | 1,558,220 | 6,007,274 | 5,721,992 | 16,183,016 | 428,944 | 31,387,622 |
| Financial investments | | | | | | | | |
| Financial investments measured at FVTPL | 115,126 | 13,436 | 39,687 | 287,394 | 281,878 | 228,586 | 113,215 | 1,079,322 |
| Financial investments measured at FVTOCI | – | 140,683 | 271,622 | 664,584 | 1,565,377 | 912,364 | 89,750 | 3,644,380 |
| Financial investments measured at amortised cost | – | 130,173 | 264,932 | 1,680,678 | 4,154,919 | 5,665,433 | 3,132 | 11,899,267 |
| Others | 175,473 | 217,418 | 27,027 | 66,303 | 31,720 | 18,869 | – | 536,810 |
| **Total Financial assets** | **1,387,812** | **3,359,138** | **2,445,246** | **9,046,962** | **11,804,398** | **23,008,268** | **3,269,934** | **54,321,758** |
| **Financial liabilities:** | | | | | | | | |
| Due to central banks | – | 10,018 | 46,418 | 114,666 | – | – | – | 171,102 |
| Due to banks and other financial institutions (iii) | 2,757,012 | 849,510 | 648,907 | 1,608,813 | 317,848 | 6,743 | – | 6,188,833 |
| Financial liabilities measured at FVTPL | 66,164 | 2,642 | 1,258 | 4,915 | 2,330 | 287 | – | 77,596 |
| Certificates of deposit | – | 63,560 | 15,879 | 365,204 | 44,952 | – | – | 489,595 |
| Due to customers | 13,859,932 | 1,795,548 | 2,744,063 | 7,903,231 | 9,037,518 | 14,583 | – | 35,354,875 |
| Debt securities issued | – | 150,198 | 138,850 | 854,712 | 338,267 | 772,365 | – | 2,254,392 |
| Others | – | 360,896 | 13,937 | 18,698 | 37,631 | 17,007 | – | 448,169 |
| **Total Financial liabilities** | **16,683,108** | **3,232,372** | **3,609,312** | **10,870,239** | **9,778,546** | **810,985** | – | **44,984,562** |
| **Derivative cash flows:** | | | | | | | | |
| Derivative financial instruments settled on net basis | – | (12,072) | (22,700) | (73,896) | 3,962 | 58 | – | (104,648) |
| Derivative financial instruments settled on gross basis | | | | | | | | |
| Including: Cash inflow | – | 2,253,093 | 1,513,483 | 3,523,819 | 429,830 | 50,987 | – | 7,771,212 |
| Cash outflow | – | (2,244,458) | (1,490,156) | (3,348,141) | (430,755) | (51,330) | – | (7,564,840) |
| **Total Derivative cash flows** | **–** | **8,635** | **23,327** | **175,678** | **(925)** | **(343)** | **–** | **206,372** |

(i) Includes reverse repurchase agreements.
(ii) The maturity profile of the rescheduled loans' undiscounted contractual cash flows is determined according to the negotiated terms.
(iii) Includes repurchase agreements.
(iv) Undated loans and advances to customers and financial investments are impaired or not impaired but overdue for more than one month.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (iii) Analysis of credit commitments by contractual expiry date

Management does not expect all of the commitments to be drawn down before the expiry of the commitments.

| 31 December 2025 | Repayable on demand | Less than one month | One to three months | Three months to one year | One to five years | Over five years | Total |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| Credit commitments | 1,342,234 | 252,229 | 483,272 | 1,023,864 | 577,330 | 176,545 | 3,855,474 |

| 31 December 2024 | Repayable on demand | Less than one month | One to three months | Three months to one year | One to five years | Over five years | Total |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| Credit commitments | 1,250,483 | 197,971 | 441,314 | 820,351 | 562,731 | 130,628 | 3,403,478 |

## (c) Market risk

Market risk is the risk of loss, in respect of the Group’s on- and off-balance sheet activities, arising from adverse movements in market rates including interest rates, foreign exchange rates, commodity prices and stock prices. Market risk arises from both the Group’s trading and non-trading businesses. The market risk disclosed in this note excludes the interest rate risk in the banking book. For analysis of the interest rate risk in the banking book, please refer to Note 50(d).

The market risk in the Group’s trading book primarily arises from the exposures to exchange rate contracts, interest rate contracts and commodity derivatives held in the trading book for market-making purposes or on behalf of customers.

The Group’s currency risk mainly results from the risk arising from exchange rate fluctuations on its foreign exchange exposures. Foreign exchange exposures include the foreign exchange exposures arising from currency structural imbalance between foreign currency assets and liabilities, and off-balance sheet foreign exchange exposures arising from currency derivative transactions.

The Group considers the market risk arising from stock price fluctuations in respect of its investment portfolios to be immaterial.

Sensitivity analysis and foreign exchange risk concentration analysis are the major market risk management tools used by the Group. The Bank monitors market risk separately in respect of trading and other non-trading portfolios. The Value-at-Risk (VaR) analysis is a major tool used by the Bank to measure and monitor the market risk of its trading portfolios. The following sections include a Value-at-Risk (VaR) analysis by risk type of the Group’s trading portfolios and a sensitivity analysis based on the Group’s currency risk exposure.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (i) Trading Book VaR

VaR is a measure index which estimates the potential maximum losses that could occur on risk positions taken due to movements in interest rates, foreign exchange rates or prices over a specified time horizon and at a specified level of confidence. The Bank adopts a historical simulation method to calculate and monitor the VaRs of trading portfolios with 250 days’ historical market data (with a 99% confidence level, and one-day holding period) on a daily basis.

A summary of VaRs of trading book by risk type is as follows:

| 2025 | End of year | Average | Maximum | Minimum |
| :--- | :---: | :---: | :---: | :---: |
| Interest rate risk | 168 | 281 | 475 | 138 |
| Currency risk | 219 | 324 | 535 | 173 |
| Commodity risk | 30 | 29 | 73 | 8 |
| Total portfolio VaR | 280 | 408 | 572 | 209 |

| 2024 | End of year | Average | Maximum | Minimum |
| :--- | :---: | :---: | :---: | :---: |
| Interest rate risk | 301 | 171 | 336 | 83 |
| Currency risk | 305 | 279 | 475 | 124 |
| Commodity risk | 22 | 19 | 40 | 11 |
| Total portfolio VaR | 466 | 317 | 470 | 232 |

VaR for each risk factor is the derived largest potential loss due to fluctuations solely in that risk factor. As there is a diversification effect due to the correlation amongst the risk factors, the individual VaRs do not add up to the total portfolio VaR.

Although VaR is an important tool for measuring market risk under normal market environment, the assumptions on which the model is based do give rise to some limitations, mainly including the following:

1. VaR does not reflect liquidity risk. In the VaR model, a one-day holding period assumes that it is possible to hedge or dispose of positions within that period without restriction, the price of the financial instruments will fluctuate in the specified range, and the correlation between these market prices will remain basically unchanged. This may not fully reflect the market risk arising at times of severe illiquidity, when a one-day holding period may be insufficient to hedge or dispose of all positions fully;
2. Even though positions may change throughout the day, VaR only represents the risk of the portfolios at the close of each business day, and it does not account for any losses that may occur beyond the 99% confidence level; and
3. VaR relies heavily on historical data to provide information and may not clearly predict the future changes and modifications of the risk factors, especially those of an exceptional nature due to significant market moves.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (ii) Currency risk

The Group conducts its businesses mainly in RMB, with certain transactions denominated in USD, HKD, and other currencies to a lesser extent. The exchange rate of RMB to USD is managed under a floating exchange rate system. The HKD exchange rate has been pegged to the USD and therefore the exchange rate of RMB to HKD has fluctuated in line with the changes in the exchange rate of RMB to USD. Transactions in foreign currencies mainly arise from the Group’s foreign currency treasury operations, commissioned foreign exchange dealings for clients and overseas investments.

The Group manages its currency risk exposure through various methods, including limit management and risk hedging to hedge currency risk, and performs currency risk sensitivity analysis and stress testing regularly.

The tables below indicate a sensitivity analysis of exchange rate changes of the main foreign currencies to which the Group had significant on- and off-balance sheet exposure on its monetary assets and liabilities and its estimated future cash flows. The analysis calculates the effect of a reasonably possible movement in the currency rates against RMB, with all other variables held constant, on profit before taxation and equity. The impact on equity only includes the impact on other comprehensive income. A negative amount in the table reflects a potential net reduction in profit before taxation or equity, while a positive amount reflects a potential net increase. While the table below indicates the effect on profit before taxation and equity of a 1% depreciation of USD and HKD against RMB, there will be an opposite effect with the same amount if the currencies appreciate by the same percentage. This effect, however, is based on the assumption that the Group’s foreign exchange exposures as at the end of the reporting period are kept unchanged and, therefore, has not incorporated actions that would be taken by the Group to mitigate the adverse impact of this currency risk.

| Currency | Change in exchange rate | Effect on profit before taxation: 31 December 2025 | Effect on profit before taxation: 31 December 2024 | Effect on equity: 31 December 2025 | Effect on equity: 31 December 2024 |
| :--- | :---: | :---: | :---: | :---: | :---: |
| USD | -1% | (63) | (321) | (575) | (708) |
| HKD | -1% | 460 | 274 | (1,552) | (1,565) |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## A breakdown of the assets and liabilities analysed by currency is as follows:

### 31 December 2025

| | RMB | USD (in RMB equivalent) | HKD (in RMB equivalent) | Other (in RMB equivalent) | Total (in RMB equivalent) |
| :--- | :---: | :---: | :---: | :---: | :---: |
| **Assets:** | | | | | |
| Cash and balances with central banks | 3,278,259 | 266,907 | 5,837 | 123,555 | 3,674,558 |
| Due from banks and other financial institutions (i) | 804,913 | 676,240 | 49,416 | 264,187 | 1,794,756 |
| Derivative financial assets | 63,076 | 52,972 | 2,350 | 12,016 | 130,414 |
| Loans and advances to customers | 28,403,139 | 647,011 | 285,188 | 377,021 | 29,712,359 |
| Financial investments | | | | | |
| - Financial investments measured at FVTPL | 889,993 | 26,602 | 9,267 | 18,091 | 943,953 |
| - Financial investments measured at FVOCI | 3,149,531 | 467,177 | 54,675 | 151,896 | 3,823,279 |
| - Financial investments measured at amortised cost | 11,741,057 | 216,791 | 28,006 | 154,329 | 12,140,183 |
| Investments in associates and joint ventures | 46,502 | 922 | 161 | 30,728 | 78,313 |
| Property and equipment | 132,365 | 154,917 | 4,485 | 2,069 | 293,836 |
| Others | 487,891 | 123,720 | 7,581 | 266,930 | 886,122 |
| **Total assets** | **48,996,726** | **2,633,259** | **446,966** | **1,400,822** | **53,477,773** |
| **Liabilities:** | | | | | |
| Due to central banks | 175,842 | 951 | – | – | 176,793 |
| Due to banks and other financial institutions (ii) | 6,864,354 | 521,108 | 65,475 | 188,686 | 7,639,623 |
| Financial liabilities measured at FVTPL | 4,106 | 2,728 | 1 | 143,361 | 150,196 |
| Derivative financial liabilities | 79,838 | 43,505 | 2,588 | 8,151 | 134,082 |
| Certificates of deposit | 173,010 | 219,860 | 82,291 | 27,432 | 502,593 |
| Due to customers | 35,503,269 | 1,036,830 | 356,438 | 415,241 | 37,311,778 |
| Debt securities issued | 2,095,243 | 102,421 | – | 19,143 | 2,216,807 |
| Others | 827,714 | 208,073 | 7,959 | 30,131 | 1,073,877 |
| **Total liabilities** | **45,723,376** | **2,135,476** | **514,752** | **832,145** | **49,205,749** |
| **Net long/(short) position** | **3,273,350** | **497,783** | **(67,786)** | **568,677** | **4,272,024** |
| **Credit commitments** | **3,010,379** | **525,204** | **47,792** | **272,099** | **3,855,474** |

(i) Includes reverse repurchase agreements.
(ii) Includes repurchase agreements.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

| 31 December 2024 | RMB | USD (in RMB equivalent) | HKD (in RMB equivalent) | Other (in RMB equivalent) | Total (in RMB equivalent) |
| :--- | :--- | :--- | :--- | :--- | :--- |
| **Assets:** | | | | | |
| Cash and balances with central banks | 3,009,110 | 181,040 | 9,580 | 123,181 | 3,322,911 |
| Due from banks and other financial institutions (i) | 1,552,443 | 587,177 | 65,538 | 224,935 | 2,430,093 |
| Derivative financial assets | 170,301 | 23,754 | 11,813 | 16,493 | 222,361 |
| Loans and advances to customers | 26,304,262 | 651,996 | 315,362 | 342,161 | 27,613,781 |
| **Financial investments** | | | | | |
| Financial investments measured at FVTPL | 963,589 | 17,444 | 11,105 | 18,301 | 1,010,439 |
| Financial investments measured at FVTOCI | 2,715,471 | 411,742 | 47,398 | 116,541 | 3,291,152 |
| Financial investments measured at amortised cost | 9,505,735 | 203,964 | 24,531 | 117,755 | 9,851,985 |
| Investments in associates and joint ventures | 44,465 | 1,511 | 146 | 27,235 | 73,357 |
| Property and equipment | 132,927 | 166,466 | 677 | 2,317 | 302,387 |
| Others | 344,105 | 135,107 | 24,565 | 199,503 | 703,280 |
| **Total assets** | 44,742,408 | 2,380,201 | 510,715 | 1,188,422 | 48,821,746 |
| **Liabilities:** | | | | | |
| Due to central banks | 169,622 | – | – | – | 169,622 |
| Due to banks and other financial institutions (ii) | 5,278,640 | 524,278 | 65,894 | 245,708 | 6,114,520 |
| Financial liabilities measured at FVTPL | 5,498 | 2,440 | 2 | 68,116 | 76,056 |
| Derivative financial liabilities | 145,146 | 32,089 | 10,841 | 9,719 | 197,795 |
| Certificates of deposit | 140,187 | 220,006 | 58,295 | 26,931 | 445,419 |
| Due to customers | 33,146,429 | 945,302 | 380,181 | 365,061 | 34,836,973 |
| Debt securities issued | 1,859,351 | 142,352 | – | 27,019 | 2,028,722 |
| Others | 806,682 | 126,396 | 8,693 | 23,602 | 965,373 |
| **Total liabilities** | 41,551,555 | 1,992,863 | 523,906 | 766,156 | 44,834,480 |
| **Net long/(short) position** | 3,190,853 | 387,338 | (13,191) | 422,266 | 3,987,266 |
| **Credit commitments** | 2,686,750 | 468,537 | 50,378 | 197,813 | 3,403,478 |

(i) Includes reverse repurchase agreements.
(ii) Includes repurchase agreements.

## (d) Interest rate risk in the banking book

Interest rate risk in the banking book is defined as the risk of loss in the overall return and the economic value of the banking book arising from adverse movements in interest rate and term structure. This type of risk may occur in the following situations:

- the repricing period of different financial instruments are different when the interest rate changes;
- despite the similarities in maturity periods, changes in the benchmark interest rate vary among on- and off-balance sheet business in the banking book with different pricing benchmark interest rates;
- the Bank or the counterparty can elect to change the level or the maturity of future cash flows of financial instruments when the Bank holds option derivatives or when there are embedded option terms or implied options in the on- and off-balance sheet businesses in the banking book; and
- due to changes in expected default levels or market liquidity, the market's assessment of the credit quality of financial instruments changes, leading to changes in credit spreads.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

The Group manages the interest rate risk in the banking book through the Asset and Liability Management Department, and the following methods have been adopted:

- **interest rate prediction:** analysing the macro-economic factors that may impact the PBC benchmark interest rates and market interest rates;
- **duration management:** optimising the differences in timing between contractual repricing (or maturities) of interest-generating assets and interest-bearing liabilities;
- **pricing management:** managing the deviation of the pricing of interest-generating assets and interest-bearing liabilities from the benchmark interest rates or market interest rates;
- **limit management:** optimising the positions of interest-generating assets and interest-bearing liabilities and controlling the impact on profit or loss and equity; and
- **hedging:** using interest rate derivatives for hedging management in a timely manner.

The Group measures interest rate risk mainly by analysing the sensitivity of projected net interest income under various interest rate movements (scenario analysis). The Group aims to mitigate the impact of prospective interest rate movements which might reduce future net interest income, while balancing the cost of hedging on the current revenue.

The following tables demonstrate the sensitivity to a reasonably possible change in interest rate, with all other variables held constant, on the Group’s net interest income and equity.

The effect on net interest income is the impact of the assumed changes in interest rates on the net interest income, arising from the financial assets and financial liabilities held at the end of the reporting period that are subject to repricing within the coming year, including the effect of hedging instruments. The effect on equity is the impact of the assumed changes in interest rates on other comprehensive income, calculated by revaluing fixed rate financial assets measured at FVTOCI held at the end of the reporting period, including the effect of any associated hedging instruments.

### 31 December 2025

| Currency | Effect on net interest income (Increased by 100 basis points) | Effect on equity (Increased by 100 basis points) | Effect on net interest income (Decreased by 100 basis points) | Effect on equity (Decreased by 100 basis points) |
| :--- | :--- | :--- | :--- | :--- |
| RMB | (45,324) | (114,670) | 45,324 | 125,935 |
| USD | 1,994 | (10,383) | (1,994) | 11,945 |
| HKD | (510) | (202) | 510 | 203 |
| Others | 1,115 | (2,935) | (1,115) | 3,187 |
| **Total** | **(42,725)** | **(128,190)** | **42,725** | **141,270** |

### 31 December 2024

| Currency | Effect on net interest income (Increased by 100 basis points) | Effect on equity (Increased by 100 basis points) | Effect on net interest income (Decreased by 100 basis points) | Effect on equity (Decreased by 100 basis points) |
| :--- | :--- | :--- | :--- | :--- |
| RMB | (26,560) | (102,939) | 26,560 | 121,349 |
| USD | 1,109 | (8,228) | (1,109) | 9,259 |
| HKD | 129 | (172) | (129) | 177 |
| Others | 1,101 | (3,274) | (1,101) | 3,497 |
| **Total** | **(24,221)** | **(114,613)** | **24,221** | **134,282** |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

The interest rate sensitivities set out in the tables above are for illustration only and are based on simplified scenarios. The figures represent the estimated movements in net interest income and equity based on the projected yield curve scenarios and the Group’s current interest rate risk profile. This effect, however, does not incorporate actions other than hedging that would be taken by management to mitigate the impact of interest rate risk. The projections also assume that interest rates of all maturities move by the same degree and, therefore, do not reflect the potential impact on net interest income and equity in the case where some rates change while others remain unchanged.

The tables below summarise the contractual repricing or maturity dates, whichever is earlier, of the Group’s assets and liabilities:

| | | | 31 December 2025 | | | |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: |
| | **Less than three months** | **Three months to one year** | **One to five years** | **Over five years** | **Non-interest-bearing** | **Total** |
| **Assets:** | | | | | | |
| Cash and balances with central banks | 3,268,854 | 4,993 | 2,843 | – | 397,868 | 3,674,558 |
| Due from banks and other financial institutions (i) | 1,236,433 | 486,483 | 40,337 | – | 31,503 | 1,794,756 |
| Derivative financial assets | – | – | – | – | 130,414 | 130,414 |
| Loans and advances to customers | 12,739,269 | 16,487,862 | 299,302 | 129,534 | 56,392 | 29,712,359 |
| Financial investments | | | | | | |
| Financial investments measured at FVTPL | 95,663 | 201,865 | 171,441 | 162,456 | 312,528 | 943,953 |
| Financial investments measured at FVOCI | 342,067 | 727,555 | 1,720,178 | 900,599 | 132,880 | 3,823,279 |
| Financial investments measured at amortised cost | 697,676 | 1,291,893 | 4,755,990 | 5,290,751 | 103,873 | 12,140,183 |
| Investments in associates and joint ventures | – | – | – | – | 78,313 | 78,313 |
| Property and equipment | – | – | – | – | 293,836 | 293,836 |
| Others | – | 1,037 | – | – | 885,085 | 886,122 |
| **Total assets** | **18,379,962** | **19,201,688** | **6,990,091** | **6,483,340** | **2,422,692** | **53,477,773** |
| **Liabilities:** | | | | | | |
| Due to central banks | 56,005 | 120,788 | – | – | – | 176,793 |
| Due to banks and other financial institutions (ii) | 5,452,321 | 2,059,591 | 39,170 | 590 | 87,951 | 7,639,623 |
| Financial liabilities measured at FVTPL | 8,135 | 2,726 | 1,819 | 330 | 137,186 | 150,196 |
| Derivative financial liabilities | – | – | – | – | 134,082 | 134,082 |
| Certificates of deposit | 195,372 | 240,666 | 63,842 | – | 2,713 | 502,593 |
| Due to customers | 20,451,265 | 7,631,176 | 8,418,490 | 36,845 | 774,002 | 37,311,778 |
| Debt securities issued | 498,316 | 804,592 | 165,762 | 734,759 | 13,378 | 2,216,807 |
| Others | 1,518 | 5,032 | 12,056 | 3,185 | 1,052,086 | 1,073,877 |
| **Total liabilities** | **26,662,932** | **10,864,571** | **8,701,139** | **775,709** | **2,201,398** | **49,205,749** |
| **Interest rate exposure** | **(8,282,970)** | **8,337,117** | **(1,711,048)** | **5,707,631** | **N/A** | **N/A** |

(i) Includes reverse repurchase agreements.
(ii) Includes repurchase agreements.

The data set out in the above table includes trading book data.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

| | 31 December 2024 | | | | | |
| :--- | :--- | :--- | :--- | :--- | :--- | :--- |
| | **Less than three months** | **Three months to one year** | **One to five years** | **Over five years** | **Non-interest-bearing** | **Total** |
| **Assets:** | | | | | | |
| Cash and balances with central banks | 2,921,951 | 6,665 | 50 | — | 394,245 | 3,322,911 |
| Due from banks and other financial institutions (i) ⁱ Includes reverse repurchase agreements. | 2,041,613 | 321,984 | 41,914 | — | 24,582 | 2,430,093 |
| Derivative financial assets | — | — | — | — | 222,361 | 222,361 |
| Loans and advances to customers | 10,976,981 | 16,188,046 | 255,342 | 138,400 | 55,012 | 27,613,781 |
| Financial investments | | | | | | |
| Financial investments measured at FVTPL | 44,028 | 275,562 | 247,340 | 209,389 | 234,120 | 1,010,439 |
| Financial investments measured at FVOCI | 379,404 | 611,783 | 1,427,981 | 758,866 | 113,118 | 3,291,152 |
| Financial investments measured at amortised cost | 344,569 | 1,449,893 | 3,328,729 | 4,623,451 | 105,343 | 9,851,985 |
| Investments in associates and joint ventures | — | — | — | — | 73,357 | 73,357 |
| Property and equipment | — | — | — | — | 302,387 | 302,387 |
| Others | 1,986 | 6,273 | 17,976 | 3,556 | 673,489 | 703,280 |
| **Total assets** | 16,710,532 | 18,860,206 | 5,319,332 | 5,733,662 | 2,198,014 | 48,821,746 |
| **Liabilities:** | | | | | | |
| Due to central banks | 56,043 | 113,573 | — | — | 6 | 169,622 |
| Due to banks and other financial institutions (ii) ⁱⁱ Includes repurchase agreements. | 4,052,089 | 1,711,979 | 254,138 | 675 | 95,639 | 6,114,520 |
| Financial liabilities measured at FVTPL | 6,523 | 4,615 | 1,669 | 254 | 62,995 | 76,056 |
| Derivative financial liabilities | — | — | — | — | 197,795 | 197,795 |
| Certificates of deposit | 193,076 | 217,042 | 32,266 | — | 3,035 | 445,419 |
| Due to customers | 18,333,925 | 7,503,276 | 8,213,196 | 11,798 | 774,778 | 34,836,973 |
| Debt securities issued | 311,014 | 826,952 | 193,297 | 684,797 | 12,662 | 2,028,722 |
| Others | 3,540 | 10,328 | 30,765 | 7,423 | 913,317 | 965,373 |
| **Total liabilities** | 22,956,210 | 10,387,765 | 8,725,331 | 704,947 | 2,060,227 | 44,834,480 |
| **Interest rate exposure** | (6,245,678) | 8,472,441 | (3,405,999) | 5,028,715 | N/A | N/A |

The data set out in the above table includes trading book data.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (e) Capital management

The Group has set the following capital management objectives:

- maintain sound capital adequacy to meet regulatory and policy requirements on capital, keep stable capital base to ensure the implementation of the Group’s business growth and strategic plans in order to achieve comprehensive, balanced, and sustainable development;
- adopt the advanced capital measurement approach, improve the internal capital adequacy assessment process (ICAAP), publicly disclose information on capital management, cover all types of material risks, and ensure stable operations of the Group;
- leverage on the results of quantitative assessments of material risks fully, establish a bank-wide value management mechanism with a core of economic capital, improve the aligned policies, processes, and applications in business management, strengthen the capital constraints and capital incentives mechanism, enhance the abilities of product pricing and decision-making support, and improve the capital allocation efficiency; and
- make effective use of various capital instruments, continuously enhance capital strengths, refine the capital structure, improve capital quality, reduce capital costs, and maximise shareholders’ returns.

The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the risk profiles of its business operations. In order to maintain or adjust the capital structure, the Group may adjust its profit distribution policies, issue or repurchase its own shares, eligible additional tier 1 capital instruments, eligible tier 2 capital instruments, or convertible bonds.

The Group monitors the capital adequacy ratios regularly based on regulations issued by the NFRA. The required information is quarterly filed with the NFRA by the Group and the Bank.

Since 1 January 2024, the Group commenced calculating the capital adequacy ratios in accordance with the Regulation Governing Capital of Commercial Banks and other relevant regulations, according to the scope of implementing the advanced capital measurement approaches as approved by the regulatory authorities, an enterprise that meets the regulatory requirements shall adopt the foundation IRB approach for its corporate credit risk exposures, the advanced IRB approach for its retail credit risk exposures, the weighted approach for its credit risk uncovered by the IRB approach, the standardised approach for its market risk exposures and the standardised approach for its operational risk exposures.

According to Regulation Governing Capital of Commercial Banks, Measures for the Assessment of Systemically Important Banks, Additional Regulation of Systemically Important Banks (Provisional), and the capital surcharge applied to global systemically important banks as required by the Basel Committee on Banking Supervision, the minimum common equity tier 1 capital adequacy ratio, the tier 1 capital adequacy ratio and the capital adequacy ratio of the Group shall not be lower than 9%, 10% and 12% respectively. In addition, overseas entities are directly regulated by local banking regulators, and the required capital adequacy ratios differ by countries or regions.

The Group calculates the following common equity tier 1 capital adequacy ratio, the tier 1 capital adequacy ratio and the capital adequacy ratio in accordance with the Regulation Governing Capital of Commercial Banks and relevant requirements. The requirements pursuant to these regulations may be different from those applicable in Hong Kong SAR and other jurisdictions.

The capital adequacy ratios and related data of the Group are calculated based on the statutory financial statements of the Group prepared under the PRC GAAP. During the reporting year, the Group has complied in full with all its externally imposed regulatory capital requirements.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

The common equity tier 1 capital adequacy ratio, the tier 1 capital adequacy ratio and the capital adequacy ratio of the Group calculated in accordance with the advanced capital measurement approaches in the Rules on Capital Management of Commercial Banks are as follows:

| Item | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| **Common equity tier 1 capital** | **3,863,157** | **3,648,963** |
| Paid-in capital | 356,407 | 356,407 |
| Valid portion of capital reserve | 143,871 | 148,128 |
| Surplus reserve | 500,576 | 463,951 |
| General reserve | 660,329 | 614,426 |
| Retained profits | 2,172,125 | 2,007,203 |
| Valid portion of minority interests | 4,494 | 4,071 |
| Accumulated other comprehensive income | 25,355 | 54,777 |
| **Common equity tier 1 capital deductions** | **26,008** | **24,621** |
| Goodwill | 18,383 | 18,687 |
| Other intangible assets other than land use rights | 11,212 | 10,194 |
| Cash flow hedging reserve that relates to the hedging of items that are not fair-valued on the balance sheet | (3,587) | (4,260) |
| **Net common equity tier 1 capital** | **3,837,149** | **3,624,342** |
| **Additional tier 1 capital** | **385,527** | **325,111** |
| Additional tier 1 capital instruments and related premiums | 384,657 | 324,344 |
| Valid portion of minority interests | 870 | 767 |
| **Net tier 1 capital** | **4,222,676** | **3,949,453** |
| **Tier 2 capital** | **1,080,120** | **1,037,078** |
| Valid portion of tier 2 capital instruments and related premiums | 690,003 | 632,917 |
| Surplus provision for impairment | 388,783 | 402,917 |
| Valid portion of minority interests | 1,334 | 1,244 |
| **Net capital base** | **5,302,796** | **4,986,531** |
| Risk-weighted assets (i) (i) Refers to risk-weighted assets after the capital floor and adjustments. | 28,269,948 | 25,710,855 |
| Common equity tier 1 capital adequacy ratio | 13.57% | 14.10% |
| Tier 1 capital adequacy ratio | 14.94% | 15.36% |
| Capital adequacy ratio | 18.76% | 19.39% |

---

Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

# 51. FAIR VALUE OF FINANCIAL INSTRUMENTS

The Group has established policies and internal controls with respect to the measurement of fair value, specifically the framework of fair value measurement of financial instruments, fair value measurement methodologies and operating procedures. Fair value measurement methodologies specify valuation techniques, parameter selection and relevant concepts, models and parameter-seeking methods. Operating procedures specify measurement procedures, timing of valuation, market parameter selection and corresponding allocation of responsibilities. In the process of fair value measurement, front office is responsible for daily transaction management. The Finance and Accounting Department plays a lead role in formulating accounting policies of fair value measurement, valuation methodologies and system implementation. The Risk Management Department is responsible for verifying trade details and validating models.

Fair value estimates are generally subjective in nature, and are made as of a specific point in time based on the characteristics of the financial instruments and relevant market information. The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments:

- **Level 1 inputs**: quoted (unadjusted) prices in active markets for identical assets or liabilities;
- **Level 2 inputs**: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and
- **Level 3 inputs**: valuation techniques are used, for which certain inputs that have a significant effect on the recorded fair value are not based on observable market data.

The following is a description of the fair value of financial instruments measured at fair value which are determined using valuation techniques. They incorporate the Group’s estimate of assumptions that a market participant would make when valuing the instruments.

## Financial investments

Financial investments that use valuation techniques for their valuation include debt securities, asset-backed securities, investment funds, unlisted equity instruments and asset management plans. The Group values such investments by incorporating either only observable data or both observable and unobservable data. Observable inputs include assumptions regarding current interest rates; unobservable inputs include assumptions regarding expected default rates, prepayment rates, discount rates and market liquidity.

The majority of the debt securities investments classified as level 2 are RMB bonds. The fair values of these bonds are determined based on the valuation results provided by China Central Depository & Clearing Co., Ltd., which are determined based on a valuation technique for which all significant inputs are observable market data.

## Derivatives

Derivatives that use valuation techniques with market observable inputs are mainly interest rate swaps, currency forwards, swaps and options. The most frequently applied valuation techniques include discounted cash flow model and Black-Scholes model. The models incorporate various inputs including foreign exchange spot and forward rates, foreign exchange rate volatility, interest rate yield curves.

Structured derivatives are mainly valued using dealer’s quotations.

## Loans and advances to customers

The loans and advances to customers that use valuation techniques for valuation are mainly the bills and discounted cash flow model is used. For bank acceptance bill, based on the different credit risk of the acceptor, interest rate yield curve is set up using the actual market data; for commercial bill, based on the interbank offered rate, interest rate yield curve is constructed, with spreads adjusted for credit risk and liquidity.

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## Other liabilities at fair value through profit or loss

For unquoted other liabilities at FVTPL, discounted cash flow model is used based on current yield curve appropriate for the remaining term to maturity adjusted for market liquidity and credit spreads; and Heston model is applied based on parameters including yields, foreign exchange forward rates, foreign exchange rate volatilities, which are calibrated by active market quotes of standard European option with the same underlying items.

### (a) Financial instruments measured at fair value

| | 31 December 2025 | | | |
| :--- | :---: | :---: | :---: | :---: |
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Financial assets:** | | | | |
| Derivative financial assets | 8,001 | 122,365 | 48 | 130,414 |
| Reverse repurchase agreements measured at FVTPL | — | 17,885 | — | 17,885 |
| Loans and advances to customers measured at FVTPL | — | 7,080 | 109 | 7,189 |
| Loans and advances to customers measured at FVTOCI | — | 2,655,589 | — | 2,655,589 |
| Financial investments measured at FVTPL | | | | |
| Debt securities investments | 22,927 | 581,692 | 1,619 | 606,238 |
| Equity investments | 30,572 | 666 | 105,983 | 137,221 |
| Funds and other investments | 38,918 | 58,333 | 103,243 | 200,494 |
| | 92,417 | 640,691 | 210,845 | 943,953 |
| Financial investments measured at FVTOCI | | | | |
| Debt securities investments | 372,043 | 3,348,701 | — | 3,720,744 |
| Other debt investments | — | 4,047 | 823 | 4,870 |
| Equity investments | 34,493 | 7,826 | 55,346 | 97,665 |
| | 406,536 | 3,360,574 | 56,169 | 3,823,279 |
| | 506,954 | 6,804,184 | 267,171 | 7,578,309 |
| **Financial liabilities:** | | | | |
| Due to customers | — | 210,557 | — | 210,557 |
| Repurchase agreements | — | 694 | — | 694 |
| Financial liabilities measured at FVTPL | 8 | 148,728 | 1,460 | 150,196 |
| Derivative financial liabilities | 4,071 | 129,873 | 138 | 134,082 |
| | 4,079 | 489,852 | 1,598 | 495,529 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

| | 31 December 2024 | | | |
| :--- | :---: | :---: | :---: | :---: |
| | **Level 1** | **Level 2** | **Level 3** | **Total** |
| **Financial assets:** | | | | |
| Derivative financial assets | 12,111 | 210,195 | 55 | 222,361 |
| Reverse repurchase agreements measured at FVTPL | – | 20,317 | – | 20,317 |
| Loans and advances to customers measured at FVTPL | – | 4,929 | 76 | 5,005 |
| Loans and advances to customers measured at FVTOCI | – | 1,947,988 | – | 1,947,988 |
| Financial investments measured at FVTPL | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities investments | 17,498 | 718,558 | 2,925 | 738,981 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity investments | 23,736 | 1,003 | 87,028 | 111,767 |
| &nbsp;&nbsp;&nbsp;&nbsp;Funds and other investments | 37,666 | 78,015 | 44,010 | 159,691 |
| | 78,900 | 797,576 | 133,963 | 1,010,439 |
| Financial investments measured at FVTOCI | | | | |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt securities investments | 301,020 | 2,899,480 | – | 3,200,500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other debt investments | – | 5,426 | – | 5,426 |
| &nbsp;&nbsp;&nbsp;&nbsp;Equity investments | 13,793 | 5,730 | 65,703 | 85,226 |
| | 314,813 | 2,910,636 | 65,703 | 3,291,152 |
| | 405,824 | 5,891,641 | 199,797 | 6,497,262 |
| **Financial liabilities:** | | | | |
| Due to customers | – | 200,983 | – | 200,983 |
| Repurchase agreements | – | 715 | – | 715 |
| Financial liabilities measured at FVTPL | 150 | 73,584 | 2,322 | 76,056 |
| Derivative financial liabilities | 8,005 | 189,651 | 139 | 197,795 |
| | 8,155 | 464,933 | 2,461 | 475,549 |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (b) Movement of level 3 financial instruments measured at fair value

The following tables show the movement of level 3 financial assets and financial liabilities measured at fair value:

| | 1 January 2025 | Total gains/(losses) recorded in profit or loss | Total effects in other comprehensive income | Additions | Disposals and settlements | Transfer (out of)/in level 3 | 31 December 2025 |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| **Financial assets:** | | | | | | | |
| Derivative financial assets | 55 | 79 | - | 33 | (109) | (10) | 48 |
| Loans and advances to customers measured at FVTPL | 76 | 7 | - | 99 | (73) | - | 109 |
| Financial investments measured at FVTPL | | | | | | | |
| Debt securities investments | 2,925 | (1,127) | - | 924 | (1,056) | (47) | 1,619 |
| Equity investments | 87,028 | 378 | - | 29,623 | (11,034) | (12) | 105,983 |
| Funds and other investments | 44,010 | (1,530) | - | 61,970 | (9,569) | 8,362 | 103,243 |
| Financial investments measured at FVTOCI | | | | | | | |
| Equity investments | 65,703 | - | 38 | 5,055 | (15,450) | - | 55,346 |
| Funds and other investments | - | - | (182) | - | - | 1,005 | 823 |
| **Total** | 199,797 | (2,193) | (144) | 97,704 | (37,291) | 9,298 | 267,171 |
| **Financial liabilities:** | | | | | | | |
| Financial liabilities measured at FVTPL | (2,322) | 344 | - | (477) | 747 | 248 | (1,460) |
| Derivative financial liabilities | (139) | (131) | - | (14) | 49 | 97 | (138) |
| **Total** | (2,461) | 213 | - | (491) | 796 | 345 | (1,598) |

| | 1 January 2024 | Total gains/(losses) recorded in profit or loss | Total effects in other comprehensive income | Additions | Disposals and settlements | Transfer (out of)/in level 3 | 31 December 2024 |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| **Financial assets:** | | | | | | | |
| Derivative financial assets | 515 | 110 | - | 521 | (352) | (739) | 55 |
| Loans and advances to customers measured at FVTPL | 114 | 5 | - | - | (43) | - | 76 |
| Financial investments measured at FVTPL | | | | | | | |
| Debt securities investments | 3,368 | 7 | - | 639 | (1,091) | 2 | 2,925 |
| Equity investments | 74,226 | (15) | - | 23,192 | (10,375) | - | 87,028 |
| Funds and other investments | 41,357 | (940) | - | 18,914 | (15,321) | - | 44,010 |
| Financial investments measured at FVTOCI | | | | | | | |
| Equity investments | 40,472 | - | 1,490 | 3,521 | (3,400) | 23,620 | 65,703 |
| **Total** | 160,052 | (833) | 1,490 | 46,787 | (30,582) | 22,883 | 199,797 |
| **Financial liabilities:** | | | | | | | |
| Financial liabilities measured at FVTPL | (1,838) | (221) | - | (761) | 498 | - | (2,322) |
| Derivative financial liabilities | (1,179) | (174) | - | - | 496 | 718 | (139) |
| **Total** | (3,017) | (395) | - | (761) | 994 | 718 | (2,461) |

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

Net gains or losses on level 3 financial instruments of the Group are set out below:

| | 2025 | 2024 |
| :--- | :---: | :---: |
| Realised | 1,212 | (402) |
| Unrealised | (3,192) | (826) |
| | (1,980) | (1,228) |

## (c) Transfers between levels

### (i) Transfers between level 1 and level 2

Due to changes in market conditions for certain securities, quoted prices in active markets were available for these securities. Therefore, these securities were transferred from level 2 to level 1 of the fair value hierarchy as at the end of the reporting period.

Due to changes in market conditions for certain securities, quoted prices in active markets were no longer available for these securities. However, there was sufficient information available to measure the fair values of these securities based on observable market inputs. Therefore, these securities were transferred from level 1 to level 2 of the fair value hierarchy as at the end of the reporting period.

In 2025 and 2024, the transfers between level 1 and level 2 of the fair value hierarchy for financial assets and liabilities measured at fair value of the Group were not significant.

### (ii) Transfers between level 2 and level 3

At the end of the reporting period, certain financial instruments were transferred from level 2 to level 3 of the fair value hierarchy when significant inputs used in their fair value measurements, which were previously observable became unobservable.

At the end of the reporting period, certain financial instruments were transferred from level 3 of the fair value hierarchy for financial assets and liabilities, when significant inputs used in their fair value measurements, which were previously unobservable became observable, or when there was a change in valuation technique.

## (d) Valuation of financial instruments with significant unobservable inputs

Financial instruments valued with significant unobservable inputs primarily include certain structured financial derivatives, asset-backed securities, investment funds, unlisted equity instruments and asset management plans. These financial instruments are valued using discounted cash flow model, net asset value method and market comparison approach. The models incorporate various unobservable assumptions such as expected default rates, prepayment rates, discount rates and market liquidity.

As at 31 December 2025, the effects of changing the significant unobservable assumptions to reasonably possible alternative assumptions were not significant (31 December 2024: not significant).

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## (e) Fair value of financial assets and financial liabilities not carried at fair value

There are no significant differences between the carrying amount and the fair value of financial assets and financial liabilities not measured at fair value, except for the following items:

### 31 December 2025
| | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 |
| :--- | :--- | :--- | :--- | :--- | :--- |
| **Financial assets** | | | | | |
| Financial investments measured at amortised cost | 12,140,183 | 12,585,295 | 36,672 | 12,457,693 | 90,930 |
| **Financial liabilities** | | | | | |
| Subordinated bonds, tier 2 capital bonds and TLAC non-capital Bonds | 804,590 | 821,265 | – | 821,265 | – |

### 31 December 2024
| | Carrying amount | Fair value | Level 1 | Level 2 | Level 3 |
| :--- | :--- | :--- | :--- | :--- | :--- |
| **Financial assets** | | | | | |
| Financial investments measured at amortised cost | 9,851,985 | 10,531,041 | 43,473 | 10,360,858 | 126,710 |
| **Financial liabilities** | | | | | |
| Subordinated bonds, tier 2 capital bonds and TLAC non-capital Bonds | 749,261 | 778,648 | – | 778,648 | – |

Subject to the existence of an active market, such as an authorised stock exchange, the market value is the best reflection of the fair value of a financial instrument. As there is no available market value for certain financial assets held and financial liabilities issued by the Group, discounted cash flow or other valuation methods described below are adopted to determine the fair values of these financial assets and financial liabilities:

1. The fair values of financial investments measured at amortised cost relating to the restructuring of the Bank are estimated on the basis of the stated interest rates and the consideration of the relevant special clauses of the instruments evaluated in the absence of any other relevant observable market data, and the fair values approximate to their carrying amounts. The fair values of financial investments measured at amortised cost irrelevant to the restructuring of the Bank are determined based on the available market values. If quoted market prices are not available, fair values are estimated on the basis of pricing models or discounted cash flows.

2. The fair values of Subordinated bonds, tier 2 capital bonds and TLAC non-capital Bonds issued are determined with reference to the available market values. If quoted market prices are not available, fair values are estimated on the basis of pricing models or discounted cash flows.

All of the aforementioned assumptions and methods provide a consistent basis for the calculation of the fair values of the Group’s financial assets and financial liabilities. However, other institutions may use different assumptions and methods. Therefore, the fair values disclosed by different financial institutions may not be entirely comparable.

---

Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

# 52. STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CHANGES IN EQUITY OF THE BANK

## Statement of financial position of the bank.

| | 31 December 2025 | 31 December 2024 |
| :--- | :--- | :--- |
| **ASSETS** | | |
| Cash and balances with central banks | 3,614,868 | 3,231,078 |
| Due from banks and other financial institutions | 1,354,545 | 1,268,833 |
| Derivative financial assets | 72,591 | 193,367 |
| Reverse repurchase agreements | 482,435 | 1,148,203 |
| Loans and advances to customers | 28,928,595 | 26,789,370 |
| Financial investments | 15,852,547 | 13,184,522 |
| Financial investments measured at FVTPL | 553,573 | 693,738 |
| Financial investments measured at FVTOCI | 3,384,334 | 2,875,432 |
| Financial investments measured at amortised cost | 11,914,640 | 9,615,352 |
| Investments in subsidiaries | 177,847 | 163,283 |
| Investments in associates | 39,042 | 37,042 |
| Property and equipment | 119,538 | 119,025 |
| Deferred tax assets | 104,223 | 89,322 |
| Other assets | 714,897 | 500,316 |
| **TOTAL ASSETS** | **51,461,128** | **46,724,361** |
| **LIABILITIES** | | |
| Due to central banks | 176,549 | 169,622 |
| Due to banks and other financial institutions | 4,949,520 | 4,711,602 |
| Financial liabilities measured at FVTPL | 133,208 | 62,195 |
| Derivative financial liabilities | 89,155 | 169,959 |
| Repurchase agreements | 2,506,546 | 1,473,959 |
| Certificates of deposit | 496,543 | 428,929 |
| Due to customers | 36,279,706 | 33,425,710 |
| Income tax payable | 21,304 | 30,345 |
| Debt securities issued | 2,155,324 | 1,936,857 |
| Other liabilities | 609,670 | 530,327 |
| **TOTAL LIABILITIES** | **47,417,525** | **42,939,505** |
| **EQUITY** | | |
| Share capital | 356,407 | 356,407 |
| Other equity instruments | 384,657 | 324,344 |
| Preference shares | 114,927 | 134,614 |
| Perpetual bonds | 269,730 | 189,730 |
| Reserves | 1,317,337 | 1,270,537 |
| Retained profits | 1,985,202 | 1,833,568 |
| **TOTAL EQUITY** | **4,043,603** | **3,784,856** |
| **TOTAL LIABILITIES AND EQUITY** | **51,461,128** | **46,724,361** |

**Liao Lin**
Chairman

**Liu Jun**
Vice Chairman and President

**Xu Zhisheng**
Person in charge of Finance and Accounting Department

---

# Notes to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## The statement of changes in equity of the Bank is set out below.

| | Share capital | Other equity instruments | Capital reserve | Surplus reserve | General reserve | Investment revaluation reserve | Foreign currency translation reserve | Cash flow hedging reserve | Other reserves | Subtotal Reserves | Retained profits | Total equity |
| :--- | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |
| Balance as at 1 January 2024 | 356,407 | 354,331 | 153,348 | 419,789 | 544,549 | 26,332 | (734) | (3,128) | (245) | 1,139,911 | 1,750,135 | 3,600,784 |
| Profit for the year | - | - | - | - | - | - | - | - | - | - | 345,454 | 345,454 |
| Other comprehensive income | - | - | - | - | - | 45,144 | 63 | (1,225) | (87) | 43,895 | - | 43,895 |
| **Total comprehensive income** | - | - | - | - | - | 45,144 | 63 | (1,225) | (87) | 43,895 | 345,454 | 389,349 |
| Capital injection by other equity instrument holders | - | 50,000 | (2) | - | - | - | - | - | - | (2) | - | 49,998 |
| Capital reduction by other equity instrument holders | - | (79,987) | (13) | - | - | - | - | - | - | (13) | - | (80,000) |
| Dividends — ordinary shares (i) (Note 17) | - | - | - | - | - | - | - | - | - | - | (160,312) | (160,312) |
| Distributions to other equity instrument holders (Note 17) | - | - | - | - | - | - | - | - | - | - | (14,963) | (14,963) |
| Appropriation to surplus reserve (ii) | - | - | - | 34,769 | - | - | - | - | - | 34,769 | (34,769) | - |
| Appropriation to general reserve | - | - | - | - | 52,251 | - | - | - | - | 52,251 | (52,251) | - |
| Other comprehensive income carried forward to retained earnings | - | - | - | - | - | (274) | - | - | - | (274) | 274 | - |
| **Balance as at 31 December 2024 and 1 January 2025** | 356,407 | 324,344 | 153,333 | 454,558 | 596,800 | 71,202 | (671) | (4,353) | (332) | 1,270,537 | 1,833,568 | 3,784,856 |
| Profit for the year | - | - | - | - | - | - | - | - | - | - | 352,266 | 352,266 |
| Other comprehensive income | - | - | - | - | - | (24,861) | (2,789) | 689 | 114 | (26,847) | - | (26,847) |
| **Total comprehensive income** | - | - | - | - | - | (24,861) | (2,789) | 689 | 114 | (26,847) | 352,266 | 325,419 |
| Capital injection by other equity instrument holders | - | 80,000 | (2) | - | - | - | - | - | - | (2) | - | 79,998 |
| Capital reduction by other equity instrument holders | - | (19,687) | (1,135) | - | - | - | - | - | - | (1,135) | - | (20,822) |
| Dividends — ordinary shares (i) (Note 17) | - | - | - | - | - | - | - | - | - | - | (109,060) | (109,060) |
| Distributions to other equity instrument holders (Note 17) | - | - | - | - | - | - | - | - | - | - | (11,764) | (11,764) |
| Appropriation to surplus reserve (ii) | - | - | - | 35,519 | - | - | - | - | - | 35,519 | (35,519) | - |
| Appropriation to general reserve | - | - | - | - | 44,586 | - | - | - | - | 44,586 | (44,586) | - |
| Other comprehensive income carried forward to retained earnings | - | - | - | - | - | (359) | - | - | - | (359) | 359 | - |
| Others | - | - | (4,997) | 18 | 17 | - | - | - | - | (4,962) | (62) | (5,024) |
| **Balance as at 31 December 2025** | 356,407 | 384,657 | 147,199 | 490,095 | 641,403 | 45,982 | (3,460) | (3,664) | (218) | 1,317,337 | 1,985,202 | 4,043,603 |

(i) Includes interim dividends on ordinary shares of RMB50,396 million for 2025 and annual dividends on ordinary shares of RMB58,664 million for 2024.
(ii) Includes the appropriation made by overseas branches in the amount of RMB144 million (2024: RMB98 million).

---

# 53. EVENTS AFTER THE REPORTING PERIOD

The year-end cash dividends for ordinary shares of RMB1.689 (pre-tax) for each ten shares after the appropriation of statutory surplus reserve and general reserve, was approved at the board of directors’ meeting held on 27 March 2026, and will be subject to the approval of the Shareholders’ Meeting of the Bank. Based on the number of ordinary shares issued as at 31 December 2025, the year-end cash dividends amounted to approximately RMB60,197 million in total. The dividend payable was not recognised as a liability in the consolidated financial statements.

# 54. COMPARATIVE FIGURES

Certain comparative amounts have been reclassified to conform to the current period’s presentation.

# 55. APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements were approved by the board of directors on 27 March 2026.

---

# Unaudited Supplementary Information to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## 1. Statement of differences between the financial statements prepared under IFRS Accounting Standards and those prepared in accordance with PRC GAAP

There are no differences between the profit attributable to equity holders of the parent company under IFRS Accounting Standards and PRC GAAP for the year ended 31 December 2025 and 2024. There are no differences between the equity attributable to equity holders of the parent company under IFRS Accounting Standards and PRC GAAP as at 31 December 2025 and 31 December 2024.

## 2. Currency concentrations

**31 December 2025**

| | USD | HKD | Others | Total |
| :--- | :--- | :--- | :--- | :--- |
| Spot assets | 2,477,420 | 442,320 | 1,368,025 | 4,287,765 |
| Spot liabilities | (2,135,476) | (514,752) | (832,145) | (3,482,373) |
| Forward purchases | 4,955,069 | 347,615 | 492,674 | 5,795,358 |
| Forward sales | (5,512,671) | (150,364) | (898,800) | (6,561,835) |
| Net option position | (10,334) | (1,571) | (12,362) | (24,267) |
| Net (short)/long position | (225,992) | 123,248 | 117,392 | 14,648 |
| Net structural position | 155,839 | 4,646 | 32,797 | 193,282 |

**31 December 2024**

| | USD | HKD | Others | Total |
| :--- | :--- | :--- | :--- | :--- |
| Spot assets | 2,250,157 | 489,754 | 1,228,279 | 3,968,190 |
| Spot liabilities | (2,078,820) | (541,721) | (826,252) | (3,446,793) |
| Forward purchases | 5,273,333 | 252,671 | 477,184 | 6,003,188 |
| Forward sales | (5,659,359) | (121,026) | (701,683) | (6,482,068) |
| Net option position | (26,408) | 8,778 | (13,855) | (31,485) |
| Net (short)/long position | (241,097) | 88,456 | 163,673 | 11,032 |
| Net structural position | 153,369 | 754 | 28,414 | 182,537 |

The net option position is calculated using the delta equivalent approach required by the Hong Kong Monetary Authority. The net structural position of the Group includes the structural positions of the Bank’s overseas branches, banking subsidiaries and other subsidiaries substantially involved in foreign exchange transactions. Structural assets and liabilities include:

- property and equipment, net of depreciation charges;
- capital and statutory reserves of overseas branches; and
- investments in overseas subsidiaries, associates and joint ventures.

---

# Unaudited Supplementary Information to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## 3. Loans and advances to customers (excluding accrued interest)

### (i) Overdue loans and advances to customers

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| Gross loans and advances to customers of the Group which have been overdue with respect to either principal or interest for periods of: | | |
| Between 3 and 6 months | 47,847 | 50,420 |
| Between 6 and 12 months | 89,056 | 70,159 |
| Over 12 months | 195,525 | 163,800 |
| | 332,428 | 284,379 |
| **As a percentage of the total gross loans and advances to customers:** | | |
| Between 3 and 6 months | 0.16% | 0.18% |
| Between 6 and 12 months | 0.29% | 0.25% |
| Over 12 months | 0.64% | 0.57% |
| | 1.09% | 1.00% |

The definition of overdue loans and advances to customers is as follows:

**Loans and advances to customers** with a specific repayment date are classified as overdue when the principal or interest is overdue.

**For loans and advances to customers repayable by regular instalments**, if part of the instalments is overdue, the whole amount of the loans and advances would be classified as overdue.

### (ii) Overdue loans and advances to customers by geographical distribution

| | 31 December 2025 | 31 December 2024 |
| :--- | :---: | :---: |
| Head Office | 49,666 | 52,829 |
| Bohai Rim | 61,888 | 55,728 |
| Western China | 62,848 | 58,118 |
| Central China | 64,270 | 59,785 |
| Pearl River Delta | 101,171 | 73,465 |
| Yangtze River Delta | 67,607 | 49,448 |
| Northeastern China | 21,769 | 17,743 |
| Overseas and others | 33,516 | 39,623 |
| | 462,735 | 406,739 |

### (iii) Rescheduled loans and advances to customers

| | 31 December 2025 | 31 December 2025 % of total loans and advances to customers | 31 December 2024 | 31 December 2024 % of total loans and advances to customers |
| :--- | :---: | :---: | :---: | :---: |
| Rescheduled loans and advances to customers | 156,027 | 0.51% | 139,086 | 0.49% |
| Less: Rescheduled loans and advances to customers overdue for more than three months | (39,606) | (0.13%) | (23,378) | (0.08%) |
| Rescheduled loans and advances to customers overdue for less than three months | 116,421 | 0.38% | 115,708 | 0.41% |

---

# Unaudited Supplementary Information to the Consolidated Financial Statements
(In RMB millions, unless otherwise stated)

## 4. Exposures to non-bank entities in Chinese mainland

The Bank is a commercial bank incorporated in Chinese mainland with its banking business primarily conducted in Chinese mainland. As at 31 December 2025 and 31 December 2024, substantial amounts of the Bank’s exposures arose from businesses with entities or individuals in Chinese mainland. Analyses of various types of exposures by counterparty have been disclosed in the respective notes to the financial statements.

---

# List of Domestic and Overseas Branches and Offices

## Domestic Institutions

### ANHUI BRANCH
**Address:** No. 189 Wuhu Road, Hefei City, Anhui Province, China
**Postcode:** 230001
**Tel:** 0551-62869178/62868101
**Fax:** 0551-62868077

### BEIJING BRANCH
**Address:** Tower B, Tianyin Mansion, No. 2 Fuxingmen South Street, Xicheng District, Beijing, China
**Postcode:** 100031
**Tel:** 010-66410579
**Fax:** 010-66410579

### CHONGQING BRANCH
**Address:** No. 61 Taichang Road, Nan’an District, Chongqing, China
**Postcode:** 400061
**Tel:** 023-62918002
**Fax:** 023-62918059

### DALIAN BRANCH
**Address:** No. 5 Zhongshan Square, Dalian City, Liaoning Province, China
**Postcode:** 116001
**Tel:** 0411-82378888
**Fax:** 0411-82808377

### FUJIAN BRANCH
**Address:** No. 108 Gutian Road, Fuzhou City, Fujian Province, China
**Postcode:** 350005
**Tel:** 0591-88087835/88087000
**Fax:** 0591-83353905/83347074

### GANSU BRANCH
**Address:** No. 408 Qingyang Road, Chengguan District, Lanzhou City, Gansu Province, China
**Postcode:** 730030
**Tel:** 0931-8436609
**Fax:** 0931-8435166

### GUANGDONG BRANCH
**Address:** No. 123 Yanjiang West Road, Guangzhou City, Guangdong Province, China
**Postcode:** 510120
**Tel:** 020-81308130
**Fax:** 020-81308789

### GUANGXI BRANCH
**Address:** No. 15-1 Jiaoyu Road, Nanning City, Guangxi Zhuang Autonomous Region, China
**Postcode:** 530022
**Tel:** 0771-5316617
**Fax:** 0771-5316617/2806043

### GUIZHOU BRANCH
**Address:** No. 200 Zhonghua North Road, Yunyan District, Guiyang City, Guizhou Province, China
**Postcode:** 550001
**Tel:** 0851-88620004/88620018
**Fax:** 0851-85963911

### HAINAN BRANCH
**Address:** No. 54 Heping South Road, Haikou City, Hainan Province, China
**Postcode:** 570203
**Tel:** 0898-65303138/65342829
**Fax:** 0898-65342986

### HEBEI BRANCH
**Address:** Tower B, Zhonghua Shangwu Tower, No. 188 Zhongshan West Road, Shijiazhuang City, Hebei Province, China
**Postcode:** 050051
**Tel:** 0311-66000001/66001999
**Fax:** 0311-66000002

### HENAN BRANCH
**Address:** No. 99 Jingsan Road, Zhengzhou City, Henan Province, China
**Postcode:** 450011
**Tel:** 0371-65776888/65776808
**Fax:** 0371-65776889/65776988

### HEILONGJIANG BRANCH
**Address:** No. 218 Zhongyang Street, Daoli District, Harbin City, Heilongjiang Province, China
**Postcode:** 150010
**Tel:** 0451-84668191/84668577
**Fax:** 0451-84698115

### HUBEI BRANCH
**Address:** No. 31 Zhongbei Road, Wuchang District, Wuhan City, Hubei Province, China
**Postcode:** 430071
**Tel:** 027-69908676/69908658
**Fax:** 027-69908040

### HUNAN BRANCH
**Address:** No. 619 Furong Middle Road Yi Duan, Changsha City, Hunan Province, China
**Postcode:** 410011
**Tel:** 0731-84428833/84420000
**Fax:** 0731-84430039

### JILIN BRANCH
**Address:** No. 9559 Renmin Avenue, Changchun City, Jilin Province, China
**Postcode:** 130022
**Tel:** 0431-89569308
**Fax:** 0431-88923808

### JIANGSU BRANCH
**Address:** No. 408 Zhongshan South Road, Nanjing City, Jiangsu Province, China
**Postcode:** 210006
**Tel:** 025-52858000
**Fax:** 025-52858111

### JIANGXI BRANCH
**Address:** No. 888, Fenghe Middle Avenue, Honggutan District, Nanchang City, Jiangxi Province, China
**Postcode:** 330038
**Tel:** 0791-86695682/86695018
**Fax:** 0791-86695230

### LIAONING BRANCH
**Address:** No. 88 Nanjing North Road, Heping District, Shenyang City, Liaoning Province, China
**Postcode:** 110001
**Tel:** 024-23491600
**Fax:** 024-23491609

### INNER MONGOLIA BRANCH
**Address:** No. 10 Silk Road Avenue, Xincheng District, Hohhot City, Inner Mongolia Autonomous Region, China
**Postcode:** 010060
**Tel:** 0471-6940833/6940297
**Fax:** 0471-6940048

### NINGBO BRANCH
**Address:** No. 218 Zhongshan West Road, Ningbo City, Zhejiang Province, China
**Postcode:** 315010
**Tel:** 0574-87361162
**Fax:** 0574-87361190

---

# List of Domestic and Overseas Branches and Offices

## NINGXIA BRANCH
**Address:** No. 67 Zhonghai Road, Jinfeng District, Yinchuan City, Ningxia Autonomous Region, China  
**Postcode:** 750002  
**Tel:** 0951-5029739  
**Fax:** 0951-5890917

## QINGDAO BRANCH
**Address:** No. 25 Shandong Road, Shinan District, Qingdao City, Shandong Province, China  
**Postcode:** 266071  
**Tel:** 0532-66211001  
**Fax:** 0532-85814711

## QINGHAI BRANCH
**Address:** No. 2 Shengli Road, Xining City, Qinghai Province, China  
**Postcode:** 810001  
**Tel:** 0971-6169712/6152326  
**Fax:** 0971-6152326

## SHANDONG BRANCH
**Address:** No. 310 Jingsi Road, Jinan City, Shandong Province, China  
**Postcode:** 250001  
**Tel:** 0531-66681114  
**Fax:** 0531-87941749/66681200

## SHANXI BRANCH
**Address:** No. 145 Yingze Street, Taiyuan City, Shanxi Province, China  
**Postcode:** 030001  
**Tel:** 0351-6248888/6248011  
**Fax:** 0351-6248004

## SHAANXI BRANCH
**Address:** No. 395 Dongxin Street, Xi’an City, Shaanxi Province, China  
**Postcode:** 710004  
**Tel:** 029-87602608/87602630  
**Fax:** 029-87602999

## SHANGHAI BRANCH
**Address:** No. 8 Yincheng Road, Pudong New Area, Shanghai, China  
**Postcode:** 200120  
**Tel:** 021-68088888/58885888  
**Fax:** 021-58882888

## SHENZHEN BRANCH
**Address:** Shenzhen ICBC Building, No. 1255 Haide 3rd Road, Nanshan District, Shenzhen City, Guangdong Province, China  
**Postcode:** 518054  
**Tel:** 0755-82246400  
**Fax:** 0755-82246247

## SICHUAN BRANCH
**Address:** No. 45 Zongfu Road, Jinjiang District, Chengdu City, Sichuan Province, China  
**Postcode:** 610020  
**Tel:** 028-82866000  
**Fax:** 028-82866025

## TIANJIN BRANCH
**Address:** No. 123 Weidi Road, Hexi District, Tianjin, China  
**Postcode:** 300074  
**Tel:** 022-28400648  
**Fax:** 022-28400123/28400647

## XIAMEN BRANCH
**Address:** Floors 24, 25, 26 (Main Tower) & Floor 3 (Annex Building), Xiamen Shangda Building, No. 123 Hubin Middle Road, Siming District, Xiamen City, Fujian Province, China  
**Postcode:** 361004  
**Tel:** 0592-5292000  
**Fax:** 0592-5054663

## XINJIANG BRANCH
**Address:** No. 231 Renmin Road, Tianshan District, Urumqi, Xinjiang Autonomous Region, China  
**Postcode:** 830002  
**Tel:** 0991-5982305  
**Fax:** 0991-2828608

## XIZANG BRANCH
**Address:** Building A, Shengcheng Jinyuan Commercial Complex, No. 107 Jinzhu West Road, Chengguan District, Lhasa, Xizang Autonomous Region  
**Postcode:** 850000  
**Tel:** 0891-6898002  
**Fax:** 0891-6898001

## YUNNAN BRANCH
**Address:** Bank Mansion, No. 395 Qingnian Road, Kunming City, Yunnan Province, China  
**Postcode:** 650021  
**Tel:** 0871-63178888  
**Fax:** 0871-63134637

## ZHEJIANG BRANCH
**Address:** No. 66 Juyuan Road, Shangcheng District, Hangzhou City, Zhejiang Province, China  
**Postcode:** 310016  
**Tel:** 0571-87803888  
**Fax:** 0571-87808207

## SUZHOU BRANCH
**Address:** No. 122, Wangdun Road, Suzhou Industrial Park, Jiangsu Province, China  
**Postcode:** 215028  
**Tel:** 0512-65008928  
**Fax:** 0512-65008928

## ICBC UBS Asset Management Co., Ltd.
**Address:** Tower A, Xinsheng Plaza, No. 5 Financial Street, Xicheng District, Beijing, China  
**Postcode:** 100033  
**Tel:** 010-66583349  
**Fax:** 010-66583158

## ICBC Financial Leasing Co., Ltd.
**Address:** Taida MSD-B1, No. 62 Second Street, Economic Development Zone, Tianjin, China  
**Postcode:** 300457  
**Tel:** 022-66283766/010-66105888  
**Fax:** 022-66224510/010-66105999

## ICBC-AXA Assurance Co., Ltd.
**Address:** 34/F, No. 16 Yincheng Road, Pudong New Area, Shanghai, China  
**Postcode:** 200120  
**Tel:** 021-58792288  
**Fax:** 021-58792299

## ICBC Financial Asset Investment Co., Ltd.
**Address:** 19-20/F, Tower B, Yang Zi S&T Innovation Center Phase I, Jiangbei New Area, No. 211 Pubin Road, Nanjing City, Jiangsu Province, China  
**Postcode:** 211800  
**Tel:** 025-58172219

## ICBC Wealth Management Co., Ltd.
**Address:** No. 6 Financial Street, Xicheng District, Beijing, China  
**Postcode:** 100032  
**Tel:** 010-86509184  
**Fax:** 010-86509835

## Zhejiang Pinghu ICBC Rural Bank Co., Ltd.
**Address:** No. 258 Chengnan West Road, Pinghu City, Zhejiang Province, China  
**Postcode:** 314200  
**Tel:** 0573-85139616  
**Fax:** 0573-85139626

## Bank of Jinzhou Co., Ltd.
**Address:** No. 68 Keji Road, Jinzhou City, Liaoning Province, China  
**Postcode:** 121013  
**Tel:** 0416-2818000/2111036  
**Fax:** 0416-3220003

---

# List of Domestic and Overseas Branches and Offices

## Overseas Institutions

### Hong Kong SAR and Macao SAR

**Industrial and Commercial Bank of China Limited, Hong Kong Branch**
**Address:** 33/F, ICBC Tower, 3 Garden Road, Central, Hong Kong SAR, China
**Email:** icbchk@icbcasia.com
**Tel:** + 852-25881188
**Fax:** + 852-25881160
**SWIFT:** ICBKHKHH

**Industrial and Commercial Bank of China (Asia) Limited**
**Address:** 33/F, ICBC Tower, 3 Garden Road, Central, Hong Kong SAR, China
**Email:** enquiry@icbcasia.com
**Tel:** +852-35108888
**Fax:** +852-28051166
**SWIFT:** UBHKHKHH

**ICBC International Holdings Limited**
**Address:** 37/F, ICBC Tower, 3 Garden Road, Central, Hong Kong SAR, China
**Email:** info@icbci.com
**Tel:** +852-26833888
**Fax:** +852-26833900
**SWIFT:** ICILHKH1

**Industrial and Commercial Bank of China (Macau) Limited**
**Address:** 18th Floor, ICBC Tower, Macau Landmark, 555 Avenida da Amizade, Macao SAR, China
**Email:** icbc@mc.icbc.com.cn
**Tel:** +853-28555222
**Fax:** +853-28338064
**SWIFT:** ICBKMOMX

**Industrial and Commercial Bank of China Limited, Macau Branch**
**Address:** Alm. Dr. Carlos d'Assumpcao, No. 393-437, 9 Andar, Edf. Dynasty Plaza, Macao SAR, China
**Email:** icbc@mc.icbc.com.cn
**Tel:** +853-28555222
**Fax:** +853-28338064
**SWIFT:** ICBKMOMM

### Asia-Pacific

**Industrial and Commercial Bank of China Limited, Tokyo Branch**
**Address:** Dai-ichi Life Hibiya First 9F, 1-13-2, Yurakucho, Chiyoda-ku, Tokyo, Japan
**Email:** icbctokyo@tk.icbc.com.cn
**Tel:** +813-52232088
**Fax:** +813-52198525
**SWIFT:** ICBKJPJT

**Industrial and Commercial Bank of China Limited, Seoul Branch**
**Address:** 16th Floor, Taepyeongno Bldg., #73 Sejong-daero, Jung-gu, Seoul 100-767, Korea
**Email:** icbcseoul@kr.icbc.com.cn
**Tel:** +82-27555688
**Fax:** +82-27553748
**SWIFT:** ICBKKRSE

**Industrial and Commercial Bank of China Limited, Busan Branch**
**Address:** 1st Floor, ABL Life Bldg., # 640 Jungang-daero, Busanjin-gu, Busan 47353, Korea
**Email:** busanadmin@kr.icbc.com.cn
**Tel:** +82-514638788
**Fax:** +82-514636880
**SWIFT:** ICBKKRSE

**Industrial and Commercial Bank of China Limited, Mongolia Representative Office**
**Address:** Unit 908, 9th floor, Shangri-la Office, Shangri-la Centre, 19A Olympic Street, Sukhbaatar District-1, Ulaanbaatar, Mongolia
**Email:** mgdbcgw@dccsh.icbc.com.cn
**Tel:** +976-77108833, +976-77106677

**Industrial and Commercial Bank of China Limited, Singapore Branch**
**Address:** 6 Raffles Quay #12-01, Singapore 048580
**Email:** icbcsg@sg.icbc.com.cn
**Tel:** +65-65381066
**Fax:** +65-65381370
**SWIFT:** ICBKSGSG

**PT. Bank ICBC Indonesia**
**Address:** The City Tower 32nd Floor, Jl. M.H. Thamrin No. 81, Jakarta Pusat 10310, Indonesia
**Email:** cs@ina.icbc.com.cn
**Tel:** +62-2123556000
**Fax:** +62-2131996016
**SWIFT:** ICBKIDJA

**Industrial and Commercial Bank of China (Malaysia) Berhad**
**Address:** Level 10, Menara Maxis, Kuala Lumpur City Centre, 50088 Kuala Lumpur, Malaysia
**Email:** icbcmalaysia@my.icbc.com.cn
**Tel:** +603-23013399
**Fax:** +603-23013388
**SWIFT:** ICBKMYKL

**Industrial and Commercial Bank of China Limited, Manila Branch**
**Address:** 24F, The Curve, 32nd Street Corner, 3rd Ave, BGC, Taguig City, Manila 1634, Philippines
**Email:** info@ph.icbc.com.cn
**Tel:** +63-282803300
**Fax:** +63-284032023
**SWIFT:** ICBKPHMM

**Industrial and Commercial Bank of China (Thai) Public Company Limited**
**Address:** 622 Emporium Tower, L, 11th-13th Fl., Sukhumvit Road, Khlong Ton, Khlong Toei, Bangkok, Thailand
**Tel:** +66-26295588
**Fax:** +66-26639888
**SWIFT:** ICBKTHBK

**Industrial and Commercial Bank of China Limited, Hanoi City Branch**
**Address:** 9 - Storey Building, Diamond Park Plaza, No. 16 Lang Ha Street, Giang Vo Ward, Hanoi City, Vietnam
**Email:** hanoiadmin@vn.icbc.com.cn
**Tel:** +84-2462698888
**Fax:** +84-2462699800
**SWIFT:** ICBKVNVN

---

# List of Domestic and Overseas Branches and Offices

## Industrial and Commercial Bank of China Limited, Ho Chi Minh City Representative Office
**Address:** 12th floor Deutsches Haus building, 33 Le Duan Street, Sai Gon Ward, Ho Chi Minh City, Vietnam
**Email:** hcmadmin@vn.icbc.com.cn
**Tel:** +84-28-35208991

## Industrial and Commercial Bank of China Limited, Vientiane Branch
**Address:** Asean Road, Home No. 358, Unit 12, Sibounheuang Village, Chanthabouly District, Vientiane Capital, Lao PDR
**Email:** icbcvte@la.icbc.com.cn
**Tel:** +856-21258888
**SWIFT:** ICBKLALA

## Industrial and Commercial Bank of China Limited, Phnom Penh Branch
**Address:** 17th Floor, Exchange Square, No. 19-20, Street 106, Phnom Penh, Cambodia
**Email:** icbckh@kh.icbc.com.cn
**Tel:** +855-23955880
**Fax:** + 855-23965268
**SWIFT:** ICBKKHPP

## Industrial and Commercial Bank of China Limited, Yangon Branch
**Address:** ICBC Center, Crystal Tower, Kyun Taw Road, Kamayut Township, Yangon, Myanmar
**Tel:** +95-1-9339270
**Fax:** +95-1-9339278
**SWIFT:** ICBKMMMY

## Industrial and Commercial Bank of China Limited (Almaty) Joint Stock Company
**Address:** 150/230, Abai/Turgut Ozal Street, Almaty, Kazakhstan. 050046
**Email:** office@kz.icbc.com.cn
**Tel:** +7-7272377085
**SWIFT:** ICBKKZKX

## Industrial and Commercial Bank of China Limited, Karachi Branch
**Address:** 15th & 16th Floor, Ocean Tower, G-3, Block-9, Scheme # 5, Main Clifton Road, Karachi, Pakistan. P.C: 75600
**Email:** service@pk.icbc.com.cn
**Tel:** +92-2135208985
**Fax:** +92-2135208930
**SWIFT:** ICBKPKKA

## Industrial and Commercial Bank of China Limited, Mumbai Branch
**Address:** Unit No. 407, 408 & 409, 4th Floor, A Wing, The Capital, C-70, G Block, Bandra Kurla Complex, Bandra East, Mumbai, India -400051
**Email:** icbcmumbai@india.icbc.com.cn
**Tel:** +91-2271110300
**Fax:** +91-2271110353
**SWIFT:** ICBKINBB

## Industrial and Commercial Bank of China Limited, Dubai (DIFC) Branch
**Address:** Level 1/106, Level 2/206, Level 4/402, Level 5&6, Gate Village Building 1, Dubai International Financial Center, Dubai, United Arab Emirates P.O.Box: 506856
**Email:** aimin@dxb.icbc.com.cn
**Tel:** +971-47031111
**Fax:** +971-47031199
**SWIFT:** ICBKAEAD

## Industrial and Commercial Bank of China Limited, Abu Dhabi Branch
**Address:** Addax Tower Offices 5207, 5208 and 5209, Al Reem Island, Abu Dhabi, United Arab Emirates P.O. Box 62108
**Email:** icbcauh@auh.icbc.com.cn
**Tel:** +971-24998600
**Fax:** +971-24998622
**SWIFT:** ICBKAEAA

## Industrial and Commercial Bank of China Limited, Doha (QFC) Branch
**Address:** Level 37, Burj Doha, Al Corniche Street, West Bay, Doha, Qatar P.O. BOX: 11217
**Email:** icbcdoha@doh.icbc.com.cn
**Tel:** +974-44072777
**Fax:** +974-44072751
**SWIFT:** ICBKQAQA

## Industrial and Commercial Bank of China Limited, Riyadh Branch
**Address:** Level 4&8, Al Faisaliah Tower Building No: 7277-King Fahad Road Al Olaya, Zip Code: 12212, Additional No.: 3333, Unit No.: 95, Kingdom of Saudi Arabia
**Email:** service@sa.icbc.com.cn
**Tel:** +966-112899888
**Fax:** +966-112899879
**SWIFT:** ICBKSARI

## Industrial and Commercial Bank of China Limited, Kuwait Branch
**Address:** Building 2A (Al-Tijaria Tower), Floor 7&8, Al-Soor Street, Al-Morqab, Block 3, Kuwait City, Kuwait
**Email:** info@kw.icbc.com.cn
**Tel:** +965-22281777
**Fax:** +965-22281799
**SWIFT:** ICBKKWKW

## Industrial and Commercial Bank of China Limited, Sydney Branch
**Address:** Level 42, Tower 1, International Towers, 100 Barangaroo Avenue, Sydney NSW 2000 Australia
**Email:** info@icbc.com.au
**Tel:** +612-94755588
**Fax:** +612-82885878
**SWIFT:** ICBKAU2S

## Industrial and Commercial Bank of China Limited (New Zealand) Limited
**Address:** Level 11, 188 Quay Street, Auckland 1010, New Zealand
**Email:** info@nz.icbc.com.cn
**Tel:** +64-93747288
**Fax:** +64-93747287
**SWIFT:** ICBKNZ2A

---

# List of Domestic and Overseas Branches and Offices

### Industrial and Commercial Bank of China Limited, Auckland Branch
**Address:** Level 11, 188 Quay Street, Auckland 1010, New Zealand
**Email:** info@nz.icbc.com.cn
**Tel:** +64-93747288
**Fax:** +64-93747287
**SWIFT:** ICBKNZ22

## Europe

### Industrial and Commercial Bank of China Limited, Frankfurt Branch
**Address:** Bockenheimer Landstraße 39, 60325 Frankfurt am Main, Germany
**Email:** icbc@icbc-ffm.de
**Tel:** +49-6950604700
**Fax:** +49-6950604708
**SWIFT:** ICBKDEFF

### Industrial and Commercial Bank of China Limited, Luxembourg Branch
**Address:** 32, Boulevard Royal, L-2449 Luxembourg, B.P.278 L-2012 Luxembourg
**Email:** office@eu.icbc.com.cn
**Tel:** +352-2686661
**Fax:** +352-2686 66 6000
**SWIFT:** ICBKLULL

### Industrial and Commercial Bank of China (Europe) S.A.
**Address:** 32, Boulevard Royal, L-2449 Luxembourg, B.P.278 L-2012 Luxembourg
**Email:** office@eu.icbc.com.cn
**Tel:** +352-2686661
**Fax:** +352-2686 66 6000
**SWIFT:** ICBKLULU

### Industrial and Commercial Bank of China (Europe) S.A. Paris Branch
**Address:** 73 Boulevard Haussmann, 75008, Paris, France
**Email:** administration@fr.icbc.com.cn
**Tel:** +33-140065858
**Fax:** +33-140065899
**SWIFT:** ICBKFRPP

### Industrial and Commercial Bank of China (Europe) S.A. Amsterdam Branch
**Address:** Johannes Vermeerstraat 7-9, 1071 DK, Amsterdam, the Netherlands
**Email:** icbcamsterdam@nl.icbc.com.cn
**Tel:** +31-205706666
**Fax:** +31-205706603
**SWIFT:** ICBKNL2A

### Industrial and Commercial Bank of China (Europe) S.A. Brussels Branch
**Address:** 81, Avenue Louise, 1050 Brussels, Belgium
**Email:** info@be.icbc.com.cn
**Tel:** +32-2-5398888
**Fax:** +32-2-5398870
**SWIFT:** ICBKBEBB

### Industrial and Commercial Bank of China (Europe) S.A. Milan Branch
**Address:** Via Tommaso Grossi 2, 20121, Milano, Italy
**Email:** banking@it.icbc.com.cn
**Tel:** +39-0200668899
**Fax:** +39-0200668888
**SWIFT:** ICBKITMM

### Industrial and Commercial Bank of China (Europe) S.A. Sucursal en España
**Address:** Paseo de Recoletos, 12, 28001, Madrid, España
**Email:** gad.dpt@es.icbc.com.cn
**Tel:** +34-912168837
**Fax:** +34-912168866
**SWIFT:** ICBKESMM

### Industrial and Commercial Bank of China (Europe) S.A. Poland Branch
**Address:** Plac Trzech Krzyży 18, 00-499, Warszawa, Poland
**Email:** info@pl.icbc.com.cn
**Tel:** +48-222788015
**Fax:** +48-222788090
**SWIFT:** ICBKPLPW

### Industrial and Commercial Bank of China (Europe) S.A. Greece Representative Office
**Address:** Leof. Kifisias 340, Neo Psichiko 154 51 Greece
**Email:** GAD@gr.icbc.com.cn
**Tel:** +30-2166868888
**Fax:** +30-2166868889

### Industrial and Commercial Bank of China (Macau) S.A. Lisbon Representative Office
**Address:** Av. Miguel Bombarda 36, Piso 8, 801 (A), 1050-165, Lisboa, Portugal
**Tel:** +351-211541970

### ICBC (London) PLC
**Address:** 81 King William Street, London EC4N 7BG, UK
**Email:** hr_admin@ld.icbc.com.cn
**Tel:** +44-2073978888
**SWIFT:** ICBKGB2L

### Industrial and Commercial Bank of China Limited, London Branch
**Address:** 81 King William Street, London EC4N 7BG, UK
**Email:** hr_admin@ld.icbc.com.cn
**Tel:** +44-2073978888
**SWIFT:** ICBKGB3L

### ICBC Standard Bank PLC
**Address:** 20 Gresham Street, London, United Kingdom, EC2V 7JE
**Email:** londonmarketing@icbcstandard.com
**Tel:** +44-2031455000
**Fax:** +44-2031895000
**SWIFT:** SBLLGB2L

### Bank ICBC (joint stock company)
**Address:** Building 29, Serebryanicheskaya embankment, Moscow, Russia Federation 109028
**Email:** info@ms.icbc.com.cn
**Tel:** +7-4952873099
**Fax:** +7-4952873098
**SWIFT:** ICBKRUMM

---

# List of Domestic and Overseas Branches and Offices

### ICBC Turkey Bank Anonim Şirketi
**Address:** Maslak Mah. Dereboyu, 2 Caddesi No: 13 34398 Sarıyer, İSTANBUL
**Email:** gongwen@tr.icbc.com.cn
**Tel:** +90-2123355150
**SWIFT:** ICBKTRIS

### Industrial and Commercial Bank of China Limited, Prague Branch, odštěpný závod
**Address:** 12F City Empiria, Na Strži 1702/65, 14000 Prague 4 – Nusle, Czech Republic
**Email:** info@cz.icbc.com.cn
**Tel:** +420-237762888
**Fax:** +420-237762899
**SWIFT:** ICBKCZPP

### Industrial and Commercial Bank of China Limited, Beijing, Zurich Branch
**Address:** Nüschelerstrasse 1, CH-8001, Zurich, Switzerland
**Email:** info@ch.icbc.com.cn
**Tel:** +41-58-9095588
**Fax:** +41-58-9095577
**SWIFT:** ICBKCHZZ

### ICBC Austria Bank GmbH
**Address:** Kolingasse 4, 1090 Vienna, Austria
**Email:** generaldept@at.icbc.com.cn
**Tel:** +43-1-9395588
**Fax:** +43-1-9395588-6800
**SWIFT:** ICBKATWW

## Americas

### Industrial and Commercial Bank of China Limited, New York Branch
**Address:** 1185 Avenue of the Americas, 18th Floor, New York, NY, USA, 10036
**Email:** info-nyb@us.icbc.com.cn
**Tel:** +1-2128387799
**Fax:** +1-6467070567
**SWIFT:** ICBKUS33

### Industrial and Commercial Bank of China (USA) NA
**Address:** 1185 Avenue of the Americas, 16th Floor, New York, NY 10036
**Email:** info@us.icbc.com.cn
**Tel:** +1-2122388208
**Fax:** +1-2122193211
**SWIFT:** ICBKUS3N

### Industrial and Commercial Bank of China (Canada)
**Address:** Unit 3710, Bay Adelaide Centre, 333 Bay Street, Toronto, Ontario, M5H 2R2, Canada
**Email:** info@icbk.ca
**Tel:** +1-4163665588
**Fax:** +1-4166072000
**SWIFT:** ICBKCAT2

### Industrial and Commercial Bank of China Mexico S.A.
**Address:** Paseo de la Reforma 250, Piso 18, Col. Juarez, C.P.06600, Del. Cuauhtemoc, Ciudad de Mexico
**Email:** info.mx @icbc.com.mx
**Tel:** +52-5541253388
**SWIFT:** ICBKMXMM

### Industrial and Commercial Bank of China (Brasil) S.A.
**Address:** Av. Brigadeiro Faria Lima, 3477-Block B-6 andar-SAO PAULO/SP-Brasil
**Email:** bxgw@br.icbc.com.cn
**Tel:** +55-1123956600
**SWIFT:** ICBKBRSP

### ICBC PERU BANK
**Address:** Calle Las Orquideas 585, Oficina 501, San Isidro, Lima, Peru
**Email:** consultas@pe.icbc.com.cn
**Tel:** +51-16316800
**Fax:** +51-16316802
**SWIFT:** ICBKPEPL

### Industrial and Commercial Bank of China (Argentina) S.A.U.
**Address:** Blvd. Cecilia Grierson 355, (C1107 CPG) Buenos Aires, Argentina
**Email:** gongwen@ar.icbc.com.cn
**Tel:** +54-1148203784
**Fax:** +54-1148201901
**SWIFT:** ICBKARBA

### ICBC Investments Argentina S.A.U. Sociedad Gerente de Fondos Comunes de Inversión
**Address:** Blvd. Cecilia Grierson 355, Piso 14, (C1107CPG) CABA, Argentina
**Email:** alpha.sales@icbc.com.ar
**Tel:** +54-1143949432

### Inversora Diagonal S.A.U.
**Address:** Florida 99, (C1105CPG) CABA, Argentina
**Tel:** +54-1148202200

### Industrial and Commercial Bank of China Limited, Panama Branch
**Address:** MMG Tower | 20th Floor | Ave. Paseo del Mar | Costa del Este Panama City, Republic of Panama
**Email:** panama.branch@pa.icbc.com.cn
**Tel:** +507-3205901
**SWIFT:** ICBKPAPA

## Africa

### Industrial and Commercial Bank of China African Representative Office
**Address 1:** 47 Price Drive, Constantia, Cape Town, South Africa, 7806
**Address 2:** T11, 2nd Floor East, 30 Baker Street, Rosebank, Johannesburg, Gauteng, South Africa, 2196
**Email:** icbcafrica@afr.icbc.com.cn
**Tel:** +27-608845323

---

# ICBC

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