Dividend and Capital Management - The bank distributed a cash dividend of RMB 0.1851 per share (including tax), totaling RMB 64.782 billion (including tax) to shareholders as of June 16, 2021[2]. - The bank did not declare an interim dividend for 2021 and will not increase capital from capital reserves[2]. - The bank's capital management strategies are discussed in detail, indicating a proactive approach to maintaining capital adequacy[5]. Financial Performance - Net profit for the first half of 2021 was RMB 122,833 million, an increase of 12.5% compared to RMB 109,190 million in the same period of 2020[20]. - The company’s net profit attributable to shareholders was RMB 122,278 million for the first half of 2021, compared to RMB 108,834 million in the first half of 2020, marking a 12.7% increase[20]. - The bank's total operating income for the first half of 2021 was CNY 365.54 billion, up from CNY 339.17 billion in the same period of 2020[52]. Asset and Liability Management - Total assets reached RMB 28,652,363 million as of June 30, 2021, up from RMB 27,205,047 million at the end of 2020, representing a growth of 5.35%[20]. - The company's total liabilities reached RMB 26,389,996 million as of June 30, 2021, reflecting an increase from previous periods[20]. - The company's total deposits reached RMB 21,926.57 billion, reflecting an increase of RMB 15,536.73 billion or 7.6% year-over-year[77]. Risk Management - The bank's report includes a section on risk management and internal control measures[4]. - The bank is enhancing its risk management framework, focusing on credit risk management and improving asset quality through increased efforts in non-performing asset recovery[179][180]. - The company implemented a five-level classification system for loans, with a focus on enhancing risk sensitivity and proactive risk identification[187]. Digital Transformation and Innovation - The bank's digital transformation efforts are highlighted as a key area of focus for future growth[5]. - The bank's online banking platform, focusing on personalized services, has launched over 10 new features, including personal credit reports and intelligent income and expenditure analysis[116]. - The bank launched its first batch of rural revitalization series wealth management products, achieving a scale of over RMB 10 billion in the first half of 2021[144]. Loan and Credit Management - The non-performing loan ratio improved to 1.50% as of June 30, 2021, compared to 1.57% at the end of 2019[21]. - Net loans and advances increased by CNY 1.31 trillion, representing a growth of 9.0%[57]. - The balance of inclusive small and micro enterprise loans reached 1.242399 trillion yuan, an increase of 289.76 billion yuan, with a growth rate of 30.4%, surpassing the overall growth rate of the bank by 21.4 percentage points[120]. Customer Engagement and Service - The number of registered personal mobile banking users reached 380 million, with a monthly active user count of 120 million[24]. - The bank provided over 120,000 home visits to elderly clients and special groups in the first half of the year[149]. - The bank's credit card customer issue resolution satisfaction rate exceeded 90%[149]. International Operations - The bank processed international settlement volume of 741.1 billion USD and trade financing business volume of 69.2 billion USD in the first half of the year[127]. - The cross-border RMB business volume reached 1.06 trillion yuan, a year-on-year increase of 19.05%[128]. - The total assets of Agricultural Bank of China (Luxembourg) reached 41 million USD, with a net profit of 120,000 USD in the first half of the year[129]. Environmental and Social Responsibility - The bank is actively participating in the operation of the national green development fund, focusing on carbon neutrality and sustainable development bonds[125]. - The bank provided over 120 billion yuan in financing through green syndicate loans, green acquisition loans, and green bonds, focusing on environmental governance and clean energy[125]. - The balance of green credit loans reached 1.7639 trillion yuan, with a growth rate of 16.4%, higher than the average growth rate of the bank's loans[123].

Financial Performance - Net profit for the first quarter was RMB 66,188 million, up 2.83% from RMB 64,365 million in the same period last year[5] - Operating income for the quarter was RMB 194,452 million, representing a 4.15% increase compared to RMB 186,706 million in the previous year[5] - The total comprehensive income for the group was RMB 61,586 million, down from RMB 75,250 million, indicating a decrease of 18.2% year-over-year[47] - The net profit attributable to shareholders increased to RMB 892,100 million as of March 31, 2021, compared to RMB 828,240 million at the end of 2020[45] - The net profit attributable to shareholders of the parent company was RMB 65,861 million, representing a 2.6% increase compared to RMB 64,187 million in the previous year[47] Assets and Liabilities - Total assets reached RMB 28,547,154 million, an increase of 4.93% compared to the end of the previous year[5] - The total liabilities increased to RMB 26,276,758 million, marking a 5.13% rise from the previous year-end[5] - The total assets of the group increased to RMB 29,000,000 million, reflecting a growth of 5.2% compared to the previous year[46] - Total liabilities amounted to CNY 262,767.58 billion, up CNY 12,824.57 billion or 5.13% year-over-year[22] Customer Deposits and Loans - Customer deposits reached RMB 21,848,987 million, which is a 7.25% increase from RMB 20,372,901 million at the end of the previous year[5] - The net increase in customer loans and advances was RMB (906,878) million, compared to RMB (768,828) million in the previous year, indicating a higher outflow[48] - The total amount of loans and advances in county finance reached CNY 56,828.47 billion, an increase of CNY 3,775.42 billion or 7.12% compared to the end of the previous year[25] Income and Expenses - Net interest income increased to 140.112 billion RMB, a year-on-year growth of 4.76%[21] - Net fee and commission income rose to 30.371 billion RMB, showing a year-on-year increase of 12.24%[21] - Business and management expenses were 43.459 billion RMB, up 2.33% year-on-year[21] - The cost-to-income ratio improved to 22.35%, a decrease of 0.4 percentage points year-on-year[21] Cash Flow - The net cash flow from operating activities surged by 45.78% to RMB 382,770 million, compared to RMB 262,567 million in the same period last year[5] - Cash inflow from financing activities reached RMB 453,308 million, an increase of 57.4% compared to RMB 287,976 million in the same period last year[49] - The net cash flow from financing activities was RMB -22,742 million, compared to a positive RMB 21,306 million in the same period last year[49] Shareholder Information - The number of ordinary shareholders totaled 402,608, with 380,704 being A-share shareholders[9] - The top two shareholders, Central Huijin Investment Ltd. and the Ministry of Finance, hold 40.03% and 35.29% of A-shares, respectively[10] - The bank's cash dividend policy was executed with a total cash dividend of CNY 19.36 billion distributed to shareholders[31] Ratios and Capital Adequacy - The weighted average return on equity (annualized) decreased to 13.65%, down by 0.60 percentage points from 14.25% in the previous year[5] - The bank's core tier 1 capital adequacy ratio was 10.98%, slightly up from 10.96% at the end of the previous year[35] - The average liquidity coverage ratio for Q1 2021 was 129.8%, an increase of 13.5 percentage points from the previous quarter[38] - The leverage ratio as of March 31, 2021, is 7.28%, exceeding regulatory requirements[40] Investment Activities - The total cash inflow from investment activities was RMB 384,499 million, a decrease of 28.3% from RMB 536,065 million in the same period last year[49] - The cash inflow from investment income was RMB 326,826 million, a decrease of 32.4% from RMB 483,135 million in the same period last year[49] - The cash outflow from investment activities amounted to RMB 403,681 million, down 30.5% from RMB 579,825 million year-on-year[49]

Financial Performance - The bank achieved a net profit of RMB 216.40 billion for the year 2020, reflecting its strong financial performance[2]. - Net profit attributable to shareholders was RMB 215,925 million for the year 2020, reflecting a slight increase from RMB 212,098 million in 2019[20]. - The net profit for the year was RMB 216.4 billion, reflecting a growth of 1.6%[24]. - The bank achieved an operating income of RMB 657.96 billion in 2020, representing a growth of 4.9% compared to the previous year[43]. - The weighted average return on equity was 11.35% for 2020, down from 12.43% in 2019[22]. - The bank's net interest income was RMB 545.08 billion, an increase of RMB 44.21 billion, with a net interest margin of 2.20%[45][46]. - The company achieved interest income of RMB 930.932 billion, an increase of RMB 57.792 billion, primarily due to an increase in the average balance of interest-earning assets by RMB 2,370.81 billion[50]. - The interest income from loans and advances was RMB 631.753 billion, up RMB 52.289 billion, representing a growth of 9.0%, mainly due to an increase in the scale of loans and advances[50]. - The company reported a net interest income change of RMB 543.89 billion, an increase of RMB 101.80 billion compared to the previous year[54]. - The company's income tax expense for 2020 was CNY 48.65 billion, a decrease of CNY 5.00 billion or 9.3% from the previous year, with an effective tax rate of 18.36%[64]. Asset and Liability Management - As of the end of 2020, the total assets of Agricultural Bank of China amounted to RMB 27,205.05 billion, with total loans and advances of RMB 15,170.44 billion and total deposits of RMB 20,372.90 billion[2]. - Total assets reached RMB 27,205,047 million as of December 31, 2020, an increase of 9.3% from RMB 24,877,491 million in 2019[20]. - Total liabilities reached RMB 249,943.01 billion, an increase of RMB 20,706.71 billion or 9.0% year-over-year[88]. - Customer deposits increased by RMB 15,237.46 billion, reflecting an 8.1% growth[88]. - The bank's total loans by region showed that the Yangtze River Delta accounted for 23.0% and the Pearl River Delta for 16.3% of total loans[78]. - The bank's total interest accrued was RMB 265.53 billion, compared to RMB 230.98 billion in the previous year[94]. - The bank's issued debt securities amounted to RMB 1,371.85 billion, which is 5.5% of total liabilities[89]. - The bank's total assets under management included significant off-balance sheet items related to credit commitments and guarantees[98]. Capital Adequacy and Risk Management - The capital adequacy ratio stood at 16.59%, indicating a solid capital position[2]. - The capital adequacy ratio increased to 16.59%, up by 0.46 percentage points from the previous year[24]. - The provision coverage ratio was 260.64%, indicating a strong risk mitigation capability[24]. - The non-performing loan ratio stood at 1.57%, an increase of 0.17 percentage points from the end of the previous year[24]. - The bank's risk-weighted assets amounted to RMB 16,989,668 million in 2020, compared to RMB 15,485,352 million in 2019[20]. - The bank's credit impairment losses rose by 18.8% to RMB 138.61 billion, indicating increased risk management measures[44]. - The bank's proactive risk management includes enhancing credit risk prevention and compliance risk management[38]. Digital Transformation and Innovation - The bank is focused on digital transformation and enhancing its service efficiency to meet customer needs[5]. - The bank plans to implement digital transformation to improve operational efficiency and ensure IT security[37]. - Monthly active users (MAU) of mobile banking exceeded 100 million[29]. - The bank's digital marketing efforts resulted in product sales of RMB 4.53 trillion, approximately 4.5 times the previous year's sales[40]. - The new version of the personal banking app was launched, focusing on enhancing user experience and data intelligence[127]. - The bank's digital marketing management system for inclusive finance was upgraded, providing multi-channel service experiences[134]. Customer and Market Engagement - The bank's customer service complaint handling efficiency improved, with the average processing time reduced to 1.9 working days, and the number of personal customer complaints recorded was 262,000[162]. - The company processed "going out" related business worth 57.94 billion USD in 2020, including 3.59 billion USD related to the Belt and Road Initiative[142]. - The number of active customers in the transaction banking business reached 3.6917 million, a growth of 15.9% year-on-year[102]. - The number of personal mobile banking customers reached 360 million, with transaction amounts totaling 75.96 trillion yuan, a year-on-year increase of 22.8%[145]. Social Responsibility and Community Support - The bank provided 33.64 billion yuan in preferential loans to 1,080 enterprises during the pandemic, with loans to key agricultural enterprises increasing by 38.6%[39]. - The bank donated 180 million yuan for pandemic relief and provided exclusive insurance to 465,000 frontline workers[39]. - The company has directly purchased CNY 305 million worth of agricultural products from poverty-stricken areas as part of its consumption poverty alleviation efforts[190]. - The company has established 3,704 physical outlets in poverty-stricken areas and 260,000 rural service points, covering over 40% of administrative villages[187]. Employee Development and Corporate Culture - The company implemented a talent development plan from 2019 to 2022, recruiting over 18,000 employees throughout the year[167]. - The total number of employees reached 459,000 by the end of 2020, with a turnover rate of 1.07% for domestic branches[171]. - The company conducted 896,000 training sessions throughout the year, with 16,300 employees participating in qualification certification exams[167]. - The employee distribution by region shows that 26.1% are located in the western region, while 2.6% are in the head office[172].

Financial Performance - Operating income for the quarter was RMB 159,072 million, up 4.79% from the same period last year[6] - Net profit for the quarter was RMB 56,721 million, a decrease of 4.54% year-on-year[6] - The bank's net profit attributable to shareholders decreased by 4.60% to RMB 56,501 million[6] - The company achieved a net profit of CNY 165.91 billion for the nine months ending September 30, 2020, a decrease of 8.7% year-on-year[20] - Basic earnings per share were CNY 0.45, a decrease of CNY 0.06 year-on-year[20] - The total comprehensive income for the nine months ended September 30, 2020, was RMB 156,732 million, down from RMB 191,748 million in the same period of 2019[47] - Net profit for the nine months ended September 30, 2020, was RMB 165,911 million, a decrease of 8.7% compared to RMB 181,791 million for the same period in 2019[46] - The bank's net interest income for the third quarter of 2020 was RMB 134,168 million, an increase of 9.9% from RMB 122,051 million in the same quarter of 2019[48] Assets and Liabilities - Total assets reached RMB 27,296,753 million, an increase of 9.72% compared to the end of the previous year[5] - Total liabilities were CNY 251,323.74 billion, an increase of CNY 22,138.48 billion or 9.66% compared to the previous year-end[21] - The bank's equity increased to CNY 21,643.79 billion, reflecting a growth of CNY 2,046.17 billion or 10.44% year-on-year[21] - As of September 30, 2020, total assets reached CNY 272,967.53 billion, an increase of CNY 24,184.65 billion or 9.72% compared to the end of the previous year[21] - The total loans and advances amounted to RMB 14,356,921 million, an increase from RMB 12,819,610 million as of December 31, 2019[42] - The cash and deposits at the central bank were RMB 2,520,794 million, slightly down from RMB 2,699,895 million at the end of 2019[42] Customer Deposits and Loans - Customer deposits totaled RMB 20,780,341 million, representing a 10.25% increase from the previous year[5] - The net increase in customer loans and advances for the nine months ended September 30, 2020, was RMB 1,607,078 million, compared to RMB 1,381,624 million in the previous year[53] Income and Expenses - Net interest income reached CNY 393.79 billion, up 9.24% year-on-year[20] - Net fee and commission income was CNY 73.62 billion, reflecting a year-on-year growth of 5.38%[20] - Business and management expenses totaled CNY 129.30 billion, an increase of 0.45% year-on-year[20] - The cost-to-income ratio was 25.95%, down 1.15 percentage points year-on-year[20] Credit and Impairment - Credit impairment losses amounted to CNY 139.07 billion, an increase of CNY 34.91 billion year-on-year, with loan impairment losses at CNY 118.95 billion[20] - Non-performing loan balance increased to CNY 2,262.13 billion, with a non-performing loan ratio of 1.52%, up 0.12 percentage points from the end of the previous year[22] - The bank's provision coverage ratio decreased to 272.44%, down 16.31 percentage points from the previous year-end[22] Capital Adequacy - The bank's core Tier 1 capital adequacy ratio was 10.85% as of September 30, 2020, down from 11.24% at the end of the previous year[34] - The bank's capital adequacy ratio was 14.5% as of September 30, 2020, maintaining a stable position compared to previous periods[46] Cash Flow and Financing Activities - Cash flow from operating activities for the nine months ended September 30, 2020, was a net outflow of RMB 289,805 million, compared to a net inflow of RMB 102,137 million in the same period of 2019[53] - The bank's net cash flow from investment activities for the nine months ended September 30, 2020, was a net outflow of RMB 439,843 million, compared to a net outflow of RMB 265,084 million in 2019[53] - The net cash flow from financing activities for the group was RMB 287,920 million, an increase of 15.6% compared to RMB 249,139 million in the same period of 2019[54] Shareholder Information - The number of ordinary shareholders reached 473,772, with 451,449 being A-share holders[9] - The top two shareholders, Central Huijin Investment and the Ministry of Finance, hold 40.03% and 35.29% of A-shares, respectively[10] - The group paid dividends totaling RMB 71,177 million, an increase of 12.5% from RMB 63,062 million in the previous year[54]

[Company Overview and Key Financial Indicators](index=6&type=section&id=Company%20Overview%20and%20Key%20Financial%20Indicators) This section provides a comprehensive overview of the company's fundamental status and key financial performance indicators [Key Financial Data and Indicators](index=9&type=section&id=Key%20Financial%20Data%20and%20Indicators) This chapter presents key financial data and indicators as of June 30, 2020, highlighting asset growth, revenue increase, net profit decline, and stable capital adequacy Key Financial Data (As of Report Period End) | Indicator (CNY Million) | June 30, 2020 | December 31, 2019 | Change from Prior Year-End | | :--- | :--- | :--- | :--- | | **Total Assets** | 26,472,127 | 24,878,288 | +6.4% | | Total Customer Loans and Advances | 14,548,269 | 13,360,188 | +8.9% | | **Total Liabilities** | 24,379,118 | 22,918,526 | +6.4% | | Deposits from Customers | 20,363,098 | 18,849,155 | +8.0% | | **Equity Attributable to Parent Company Shareholders** | 2,082,127 | 1,948,355 | +6.9% | Interim Operating Performance (H1 2020) | Indicator (CNY Million) | Jan–Jun 2020 | Jan–Jun 2019 | YoY Change | | :--- | :--- | :--- | :--- | | Operating Income | 339,774 | 324,467 | +4.7% | | Net Interest Income | 258,897 | 237,632 | +8.9% | | Credit Impairment Losses | 99,123 | 73,475 | +34.9% | | **Net Profit** | 109,190 | 122,372 | -10.8% | | **Net Profit Attributable to Parent Company Shareholders** | 108,834 | 121,445 | -10.4% | | Basic Earnings Per Share (CNY) | 0.30 | 0.34 | -11.8% | Key Financial Ratios | Indicator (%) | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | **Profitability (Annualized)** | | | | Return on Average Total Assets | 0.85 | 1.05 (H1 2019) | | Weighted Average Return on Equity | 11.94 | 14.57 (H1 2019) | | Net Interest Margin | 2.14 | 2.16 (H1 2019) | | Cost-to-Income Ratio | 24.64 | 25.75 (H1 2019) | | **Asset Quality** | | | | Non-Performing Loan Ratio | 1.43 | 1.40 | | Provision Coverage Ratio | 284.97 | 288.75 | | **Capital Adequacy** | | | | Common Equity Tier 1 Capital Adequacy Ratio | 10.87 | 11.24 | | Tier 1 Capital Adequacy Ratio | 12.60 | 12.53 | | Capital Adequacy Ratio | 16.42 | 16.13 | [Discussion and Analysis](index=12&type=section&id=Discussion%20and%20Analysis) This section provides an in-depth discussion and analysis of the company's performance, strategic initiatives, and risk management [Environment and Outlook](index=12&type=section&id=Environment%20and%20Outlook) This chapter analyzes the economic environment and outlook for the second half of 2020, highlighting challenges and the bank's strategic priorities - In the first half, China's economy showed resilience amidst the pandemic, with Q2 GDP growing by **3.2% year-on-year**, and improvements in industrial output, investment, and exports[16](index=16&type=chunk) - Looking ahead to the second half, global economic uncertainties are increasing, with the lagged impact of the pandemic expected to transmit to the banking sector, leading to downward pressure on operating performance[17](index=17&type=chunk) - The bank's strategic priorities for the second half include providing relief to enterprises, strengthening financial services for the real economy, strictly adhering to risk bottom lines, consolidating advantages in county-level and retail businesses, and enhancing competitiveness in urban areas[17](index=17&type=chunk) [COVID-19 Prevention and Control Efforts](index=14&type=section&id=COVID-19%20Prevention%20and%20Control%20Efforts) This chapter details the bank's comprehensive measures to ensure safety, support economic recovery, and provide digital financial services during the COVID-19 pandemic - Issued a series of special policies, including 31 measures to support work resumption, 16 for small and micro enterprises, and 12 for spring farming preparation[19](index=19&type=chunk) - Provided cumulative loans of **CNY 33.6 billion** to **1,082 key national epidemic prevention and control enterprises**, with loans to key agricultural product stable production and supply enterprises growing by **40%** from the beginning of the year[19](index=19&type=chunk) - The bank and its employees donated **CNY 180 million** to Hubei's anti-epidemic efforts and provided exclusive insurance to **465,000 frontline epidemic prevention personnel**[19](index=19&type=chunk) [Progress in Digital Transformation](index=15&type=section&id=Progress%20in%20Digital%20Transformation) This chapter outlines the bank's significant achievements in digital transformation, including growth in online lending, mobile banking, and scenario-based financial services - As of end-June, "ABC e-Loan" balance reached **CNY 999.3 billion**, an increase of **CNY 410 billion** from the beginning of the year, with both small and micro e-loans and industry e-loans doubling[20](index=20&type=chunk) - Mobile banking monthly active users reached **78.45 million**, an increase of **6.07 million** from the beginning of the year, and the poverty alleviation mall covered **98.9%** of the **832 national key poverty-stricken counties**[20](index=20&type=chunk) - The digital risk control system continues to improve, with the intelligent anti-fraud platform successfully launched and the intelligent anti-money laundering platform upgraded[20](index=20&type=chunk) [Financial Statement Analysis](index=16&type=section&id=Financial%20Statement%20Analysis) This chapter provides an analysis of the bank's financial statements for the first half of 2020, focusing on profit, balance sheet, and off-balance sheet items [Income Statement Analysis](index=16&type=section&id=Income%20Statement%20Analysis) This chapter analyzes the bank's income statement for the first half of 2020, highlighting the decline in net profit due to increased credit impairment losses despite revenue growth Key Income Statement Items Changes (H1 2020) | Item (CNY Million) | Jan–Jun 2020 | Jan–Jun 2019 | Growth Rate (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | 258,897 | 237,632 | 8.9 | | Net Fee and Commission Income | 52,350 | 50,899 | 2.9 | | **Operating Income** | **339,774** | **324,467** | **4.7** | | Credit Impairment Losses | 99,123 | 73,475 | 34.9 | | **Net Profit** | **109,190** | **122,372** | **-10.8** | | Net Profit Attributable to Parent Company Shareholders | 108,834 | 121,445 | -10.4 | - Net Interest Margin (NIM) was **2.14%**, a year-on-year decrease of **2 basis points**; Net Interest Spread (NIS) was **1.98%**, a year-on-year decrease of **4 basis points**, primarily due to declining market interest rates and the implementation of national policies to benefit the real economy, leading to lower loan yields[24](index=24&type=chunk) - Credit impairment losses increased by **CNY 25.648 billion** year-on-year, a **34.9%** increase, mainly due to the bank's prudent provisioning for loan impairment in consideration of macroeconomic uncertainties[23](index=23&type=chunk)[45](index=45&type=chunk) [Balance Sheet Analysis](index=24&type=section&id=Balance%20Sheet%20Analysis) This chapter analyzes the bank's balance sheet as of June 30, 2020, showing steady growth in total assets and liabilities, driven by customer loans and deposits Key Balance Sheet Items (As of June 30, 2020) | Item (CNY Million) | June 30, 2020 | December 31, 2019 | Growth Rate from Beginning of Year (%) | | :--- | :--- | :--- | :--- | | **Total Assets** | **26,472,127** | **24,878,288** | **6.4** | | Net Customer Loans and Advances | 13,956,264 | 12,819,610 | 8.9 | | Financial Investments | 7,847,830 | 7,422,930 | 5.7 | | **Total Liabilities** | **24,379,118** | **22,918,526** | **6.4** | | Deposits from Customers | 20,363,098 | 18,849,155 | 8.0 | | **Total Shareholders' Equity** | **2,093,009** | **1,959,762** | **6.8** | - Total customer loans increased by **8.9%** from the beginning of the year to **CNY 14.55 trillion**, with corporate loans growing by **10.7%** and personal loans by **8.1%**[54](index=54&type=chunk)[55](index=55&type=chunk)[61](index=61&type=chunk) - Deposits from customers increased by **8.0%** from the beginning of the year to **CNY 20.36 trillion**, with the proportion of personal deposits rising to **59.1%** and demand deposits decreasing to **54.8%**[72](index=72&type=chunk) [Off-Balance Sheet Items](index=33&type=section&id=Off-Balance%20Sheet%20Items) This chapter describes the bank's off-balance sheet items, primarily credit commitments, which saw a significant increase in the first half of 2020 Composition of Credit Commitments | Item (CNY Million) | June 30, 2020 | December 31, 2019 | Growth Rate from Beginning of Year (%) | | :--- | :--- | :--- | :--- | | Loan Commitments | 1,188,499 | 1,056,796 | 12.5 | | Bank Acceptance Bills | 505,320 | 339,829 | 48.7 | | Credit Card Commitments | 682,896 | 646,134 | 5.7 | | **Total** | **2,773,340** | **2,410,028** | **15.1** | [Business Overview](index=34&type=section&id=Business%20Overview) This chapter provides a comprehensive overview of the bank's steady business development across corporate, personal, treasury, and asset management segments in the first half of 2020 [Corporate Banking Business](index=34&type=section&id=Corporate%20Banking%20Business) This chapter details the corporate banking business's focus on national strategies, steady growth in deposits and loans, and digital transformation efforts - As of end-June, corporate banking customers totaled **6.3781 million**, an increase of **380,300** from the beginning of the year; customers with loan balances reached **305,600**, an increase of **92,600**[81](index=81&type=chunk) - In the first half, underwriting volume for non-financial enterprise debt financing instruments was **CNY 271.28 billion**, a year-on-year increase of **47.0%**; investment banking business income was **CNY 6.999 billion**, a year-on-year increase of **11.3%**[85](index=85&type=chunk) [Personal Banking Business](index=36&type=section&id=Personal%20Banking%20Business) This chapter highlights the personal banking business's digital transformation, significant growth in customer base, deposits, and loans, and rapid expansion of private banking Personal Banking Business Scale (As of June 30, 2020) | Indicator | Balance (CNY Billion) | Increase from Beginning of Year (CNY Billion) | | :--- | :--- | :--- | | Domestic Personal Deposits | 11,899.686 | +994.955 | | Domestic Personal Loans | 5,830.371 | +437.898 | | Personal Housing Loans | 4,421.731 | +259.300 | | Private Banking Assets Under Management | 1,629.6 | +225.6 | [Treasury and Asset Management Businesses](index=39&type=section&id=Treasury%20and%20Asset%20Management%20Businesses) This chapter covers the treasury business's flexible investment strategies and the asset management business's progress in net-value transformation and growth in entrusted assets - As of June 30, financial investments balance was **CNY 7.85 trillion**, an increase of **CNY 424.9 billion** from the beginning of the year, representing a **5.7%** growth[94](index=94&type=chunk) - As of June 30, wealth management product balance was **CNY 1.80 trillion**, with net-value products accounting for **37.98%**; entrusted assets under management reached **CNY 10.33 trillion**, a **4.5%** increase from the beginning of the year[96](index=96&type=chunk)[97](index=97&type=chunk) [Online Finance, Inclusive Finance, and Green Finance](index=42&type=section&id=Online%20Finance%2C%20Inclusive%20Finance%2C%20and%20Green%20Finance) This chapter highlights the bank's advancements in online lending, robust growth in inclusive finance for small and micro enterprises, and significant expansion of green credit Scale of Featured Financial Businesses (As of June 30, 2020) | Business Segment | Indicator | Balance (CNY Billion) | Increase from Beginning of Year | | :--- | :--- | :--- | :--- | | Online Finance | Online Lending | 999.3 | +CNY 410 billion | | Inclusive Finance | Inclusive Small and Micro Enterprise Loans | 866.142 | +46.2% | | Green Finance | Green Credit | 1,304.0 | +9.5% | [Cross-Border, Diversified Operations, and Channel Technology](index=47&type=section&id=Cross-Border%2C%20Diversified%20Operations%2C%20and%20Channel%20Technology) This chapter details the bank's steady growth in cross-border services, profitable diversified operations, enhanced digital channels, and continued investment in financial technology - In the first half, domestic branches' international settlement volume was **USD 547.4 billion**, a year-on-year increase of **7.3%**; cross-border RMB business volume was **CNY 886.56 billion**, a year-on-year increase of **41.9%**[114](index=114&type=chunk) - Six diversified operation subsidiaries achieved a combined net profit of **CNY 1.754 billion** in the first half; ABC Wealth Management expanded its product system to a "6+N" model[115](index=115&type=chunk)[117](index=117&type=chunk) - Personal mobile banking customers reached **332 million**, with transaction volume of **CNY 34.13 trillion** in the first half, a year-on-year increase of **19.5%**[118](index=118&type=chunk) [County-Level Financial Business](index=60&type=section&id=County-Level%20Financial%20Business) This chapter highlights the steady growth of the bank's county-level financial business, with significant asset and profit increases, and strong support for poverty alleviation County-Level Financial Business Financial Status (As of June 30, 2020) | Indicator (CNY Million) | June 30, 2020 | Growth Rate from Beginning of Year (%) | | :--- | :--- | :--- | | Total Assets | 9,547,333 | 9.7 | | Total Customer Loans and Advances | 5,055,815 | 11.0 | | Deposits from Customers | 8,713,465 | 9.5 | County-Level Financial Business Profit Performance (H1 2020) | Indicator (CNY Million) | Jan–Jun 2020 | Year-on-Year Growth Rate (%) | | :--- | :--- | :--- | | Operating Income | 129,042 | 10.2 | | Total Pre-Tax Profit | 56,528 | 23.7 | - As of end-June, loan balance in **832 national key poverty alleviation counties** was **CNY 1.22 trillion**, an increase of **12.0%** from the beginning of the year; targeted poverty alleviation loan balance was **CNY 450.49 billion**, an increase of **15.1%**[147](index=147&type=chunk) - The non-performing loan ratio for county-level financial business was **1.48%**, a decrease of **0.10 percentage points** from the beginning of the year; provision coverage ratio was **325.26%**[153](index=153&type=chunk)[155](index=155&type=chunk) [Risk Management and Internal Control](index=66&type=section&id=Risk%20Management%20and%20Internal%20Control) This chapter details the bank's comprehensive risk management framework, covering credit, market, and liquidity risks, alongside internal control and anti-money laundering efforts [Credit Risk Management](index=66&type=section&id=Credit%20Risk%20Management) This chapter outlines the bank's credit risk management strategies, including loan structure optimization and asset quality maintenance, despite a slight increase in the non-performing loan ratio Loan Five-Category Classification Distribution | Category | Amount (CNY Million) | Proportion (%) | Proportion at 2019 Year-End (%) | | :--- | :--- | :--- | :--- | | Pass | 13,999,128 | 96.48 | 96.36 | | Special Mention | 303,924 | 2.09 | 2.24 | | **Non-Performing Loans** | **207,745** | **1.43** | **1.40** | | Substandard | 96,239 | 0.66 | 0.50 | | Doubtful | 95,527 | 0.66 | 0.78 | | Loss | 15,979 | 0.11 | 0.12 | - The non-performing loan ratio for corporate loans was **2.12%**, and for personal loans was **0.59%**; manufacturing and wholesale and retail industries had higher proportions of non-performing loans[170](index=170&type=chunk)[171](index=171&type=chunk) [Market and Liquidity Risk Management](index=73&type=section&id=Market%20and%20Liquidity%20Risk%20Management) This chapter details the bank's management of market and liquidity risks, demonstrating overall control and compliance with regulatory requirements through various monitoring tools - The end-of-period Value at Risk (VaR) for the trading book was **CNY 256 million**, with an average of **CNY 188 million** for the first half, an increase from the same period last year, mainly due to increased exposure to gold and silver trading portfolios and higher price volatility[176](index=176&type=chunk)[178](index=178&type=chunk) - If interest rates were to instantly rise by **100 basis points**, the bank's net interest income would decrease by **CNY 52.476 billion**, and other comprehensive income would decrease by **CNY 44.648 billion**[180](index=180&type=chunk) - As of end-June 2020, the RMB liquidity ratio was **55.53%**; the average daily Liquidity Coverage Ratio (LCR) for Q2 was **141.7%**, and the Net Stable Funding Ratio (NSFR) was **124.7%**[190](index=190&type=chunk) [Internal Control](index=80&type=section&id=Internal%20Control) This chapter details the bank's efforts to enhance internal control and compliance, including new anti-fraud plans, strengthened group-wide management, and improved anti-money laundering systems - Issued the "Sharp Arrow" plan for case prevention and control (2020–2022), setting clear three-year targets for case risk prevention across the bank[197](index=197&type=chunk) - Strengthened anti-money laundering and sanctions compliance, implemented organizational reform for the global anti-money laundering center, and successfully detected and intercepted multiple fraud and smuggling cases related to the pandemic[198](index=198&type=chunk) [Capital Management](index=82&type=section&id=Capital%20Management) This chapter describes the bank's robust capital management, including successful capital replenishment through bond issuance and continuous improvement of internal capital adequacy assessment - In May 2020, issued **CNY 40 billion** in Tier 2 capital bonds[202](index=202&type=chunk) - In May and August 2020, issued **CNY 85 billion** and **CNY 35 billion** respectively in perpetual bonds to supplement Additional Tier 1 capital[202](index=202&type=chunk) - Detailed information on capital adequacy ratios and leverage ratios can be found in Appendix I and Appendix IV[204](index=204&type=chunk) [Share Changes and Major Shareholder Holdings](index=83&type=section&id=Share%20Changes%20and%20Major%20Shareholder%20Holdings) This chapter provides an overview of the bank's share capital and major shareholder structure as of June 30, 2020, noting no changes in total shares or controlling shareholders Top Two Shareholders' Holdings | Shareholder Name | Share Class | Total Shares Held | Shareholding Percentage (%) | | :--- | :--- | :--- | :--- | | Central Huijin Investment Ltd | A-share | 140,087,446,351 | 40.03 | | Ministry of Finance | A-share | 123,515,185,240 | 35.29 | [Preferred Share Information](index=89&type=section&id=Preferred%20Share%20Information) This chapter details the bank's two outstanding domestic preferred share issues, including dividend distributions and their accounting treatment as equity instruments - On March 11, 2020, a cash dividend of **CNY 5.50 per share** was distributed to "ABC Preferred 2" shareholders, totaling **CNY 2.2 billion** (tax inclusive)[221](index=221&type=chunk) - The Board of Directors approved a cash dividend distribution of **CNY 5.32 per share** to "ABC Preferred 1" shareholders on November 5, 2020, totaling **CNY 2.128 billion** (tax inclusive)[221](index=221&type=chunk) [Directors, Supervisors, and Senior Management](index=92&type=section&id=Directors%2C%20Supervisors%2C%20and%20Senior%20Management) This chapter outlines the composition of the bank's Board of Directors, Board of Supervisors, and senior management, noting recent personnel changes - The Board of Directors consists of **13 directors** (3 executive, 5 non-executive, 5 independent non-executive); the Board of Supervisors consists of **7 supervisors**; and there are **6 senior management members**[223](index=223&type=chunk) - During the reporting period, Mr. Xu Jiandong and Mr. Chen Jianbo resigned as non-executive directors; Mr. Wang Xingchun's term as supervisor expired; and Mr. Zhou Wanfu resigned as Board Secretary[224](index=224&type=chunk) [Significant Matters](index=93&type=section&id=Significant%20Matters) This chapter covers key corporate governance events, dividend distribution, absence of major litigation, and the bank's commitment to investing in the national green development fund - The 2019 profit distribution plan was approved, with a cash dividend of **CNY 0.1819 per share** (tax inclusive) distributed to ordinary shareholders, totaling **CNY 63.662 billion**; no interim dividend for 2020 was declared[228](index=228&type=chunk) - No significant litigation or arbitration matters materially affecting operating activities occurred during the reporting period[229](index=229&type=chunk) - In July 2020, the bank signed an agreement to invest **CNY 8 billion** in the National Green Development Fund Co., Ltd[233](index=233&type=chunk) [Appendices](index=98&type=section&id=Appendices) This chapter provides detailed regulatory disclosures, including capital adequacy, liquidity coverage, net stable funding, and leverage ratios, all demonstrating the bank's robust financial health [Appendix I: Capital Adequacy Ratio Information](index=98&type=section&id=Appendix%20I%3A%20Capital%20Adequacy%20Ratio%20Information) This appendix details the bank's capital adequacy ratios, which meet regulatory requirements and improved due to recent bond issuances Capital Adequacy Ratios | Indicator (%) | June 30, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Common Equity Tier 1 Capital Adequacy Ratio | 10.87 | 11.24 | | Tier 1 Capital Adequacy Ratio | 12.60 | 12.53 | | **Capital Adequacy Ratio** | **16.42** | **16.13** | [Appendix II: Liquidity Coverage Ratio Information](index=119&type=section&id=Appendix%20II%3A%20Liquidity%20Coverage%20Ratio%20Information) This appendix presents the bank's liquidity coverage ratio for Q2 2020, which remains above the regulatory minimum, indicating strong short-term liquidity - The average daily Liquidity Coverage Ratio (LCR) for Q2 2020 was **141.7%**, a decrease of **3.5 percentage points** from the previous quarter, meeting regulatory requirements[272](index=272&type=chunk)[273](index=273&type=chunk) [Appendix III: Net Stable Funding Ratio Information](index=121&type=section&id=Appendix%20III%3A%20Net%20Stable%20Funding%20Ratio%20Information) This appendix provides the bank's net stable funding ratio for Q2 2020, demonstrating compliance with regulatory standards for long-term funding stability - The Net Stable Funding Ratio (NSFR) for Q2 2020 was **124.7%**, a decrease of **2.5 percentage points** from the previous quarter, meeting regulatory requirements[275](index=275&type=chunk)[279](index=279&type=chunk) [Appendix IV: Leverage Ratio Information](index=126&type=section&id=Appendix%20IV%3A%20Leverage%20Ratio%20Information) This appendix details the bank's leverage ratio as of June 30, 2020, which exceeds regulatory requirements, reflecting a sound capital base relative to its exposures - As of June 30, 2020, the leverage ratio was **7.17%**, an increase from **6.98%** as of March 31, 2020[281](index=281&type=chunk)

Financial Performance - Total assets reached RMB 26,472,127 million as of June 30, 2020, showing an increase from RMB 24,878,288 million at the end of 2019[12] - Net profit for the first half of 2020 was RMB 109,190 million, a decrease of 10.1% compared to RMB 122,372 million in the same period of 2019[22] - The total operating income for the first half of 2020 was CNY 339.17 billion, reflecting a growth of 4.9% compared to the same period in 2019[41] - The company's net interest income for the first half of 2020 was CNY 258.90 billion, an increase of 8.9% year-on-year[41] - The cost-to-income ratio improved to 24.64% in the first half of 2020, compared to 25.75% in the same period of 2019[23] - The basic earnings per share for the first half of 2020 was RMB 0.30, a decrease from RMB 0.34 in the same period of 2019[23] Asset Quality and Risk Management - The non-performing loan ratio increased to 1.43% as of June 30, 2020, compared to 1.40% at the end of 2019[23] - The provision coverage ratio decreased to 284.97% as of June 30, 2020, down from 288.75% at the end of 2019[23] - The bank is committed to risk management and internal control to mitigate potential impacts from market fluctuations[4] - The bank's financial performance is subject to various risks, including changes in the economic environment and regulatory policies[4] - The bank's asset quality management includes increasing provisions to enhance risk resistance capabilities[32] Loans and Advances - Total loans and advances amounted to RMB 13,360,188 million by June 30, 2020, a decrease from RMB 14,548,269 million at the end of 2019[13] - The total loans and advances amounted to RMB 14,548,269 million as of June 30, 2020, up from RMB 13,360,188 million at the end of 2019, indicating a growth of approximately 8.9%[22] - The balance of loans to private enterprises reached RMB 1,935.31 billion, an increase of RMB 308.76 billion from the end of the previous year[121] - Personal operating loans surged by 24.4%, reaching RMB 328.78 billion as of June 30, 2020[90] - Agricultural loans increased by 28.3%, totaling RMB 412.95 billion, driven by the rapid growth of the "Huinong e-loan" program[90] Deposits and Liabilities - Total deposits were RMB 18,849,155 million as of June 30, 2020, down from RMB 20,363,098 million at the end of 2018[14] - The bank's total liabilities amounted to RMB 24,379.12 billion, reflecting a growth of 6.4% or RMB 146.06 billion compared to the end of the previous year[103] - Customer deposits increased by RMB 151.39 billion, or 8.0%, reaching RMB 20,363.10 billion as of June 30, 2020[106] - The balance of corporate deposits was RMB 7,656.86 billion, up RMB 4,608.57 billion compared to the end of the previous year[121] Digital Transformation and Innovation - The bank is focusing on digital transformation to enhance operational efficiency and customer service[5] - The bank's digital platform "Zhangyin" had 78.45 million monthly active users by the end of June 2020, an increase of 6.07 million from the end of 2019[37] - The company has built an AI platform and BI platform to support full-process AI modeling and self-service analysis, enhancing data intelligence capabilities[184] - The company has initiated a blockchain BaaS platform to optimize pension business processes, reducing processing times significantly[184] - The bank's digital transformation efforts included the launch of the "i Xiangyang" APP, enhancing smart city solutions and collaborating with 30 provincial government platforms[160] Future Outlook and Strategic Initiatives - Future outlook includes potential market expansion and strategic initiatives to adapt to changing economic conditions[4] - The bank plans to enhance financial services for the real economy, focusing on low-cost credit for small and micro enterprises[32] - The company plans to continue optimizing its financial service system and enhance online and offline integration in the second half of 2020[39] - The bank plans to enhance credit support for infrastructure and new infrastructure projects, as well as high-quality development in the manufacturing sector[88] Customer Base and Market Presence - The total number of personal customers reached 847 million, an increase of 9.28 million compared to the end of the previous year[129] - The number of corporate banking customers increased to 6.3781 million, an increase of 380,300 from the end of the previous year[121] - The total number of branches includes headquarters, specialized institutions, and training academies[199] - The total number of domestic branches reached 23,064, with a distribution across various regions[199] Economic Environment and Challenges - The global economic outlook remains uncertain, with the IMF predicting a 4.9% decline in global GDP for 2020, while China is expected to be the only major economy to achieve positive growth[31] - The bank's financial performance is subject to various risks, including changes in the economic environment and regulatory policies[4]

Financial Performance - Operating income for the first quarter was RMB 186,706 million, up 7.90% from RMB 173,031 million in the same period last year[5] - Net profit for the quarter was RMB 64,365 million, representing a 3.61% increase compared to RMB 62,121 million in the previous year[5] - The bank's basic earnings per share for the quarter was RMB 0.18, an increase of 5.88% compared to RMB 0.17 in the same period last year[5] - The net profit attributable to shareholders of the parent company reached RMB 64,187 million, a year-on-year increase of 4.8% from RMB 61,251 million[44] - The total comprehensive income for the group was RMB 75,250 million, compared to RMB 64,928 million in the same period last year, marking a growth of 15.5%[44] Asset and Liability Management - Total assets reached RMB 26,226,388 million, an increase of 5.42% compared to the previous year[5] - Total liabilities amounted to RMB 241,935.51 billion, up by RMB 12,750.25 billion, reflecting a growth of 5.56%[19] - Customer deposits totaled RMB 19,539,807 million, an increase of 5.38% from RMB 18,542,861 million at the end of the previous year[5] - The bank's total equity increased to RMB 20,328.37 billion, a rise of RMB 730.75 billion or 3.73% from the end of the previous year[20] Income Sources - Net interest income was CNY 129.659 billion, an increase of 8.85% year-on-year[18] - Net fee and commission income reached CNY 31.149 billion, a year-on-year increase of 6.61%[18] - The group's fee and commission income increased to RMB 33,989 million, compared to RMB 32,350 million in the same period last year, reflecting a growth of 5.1%[43] Credit and Impairment - Credit impairment losses increased by CNY 22.86 billion year-on-year to CNY 44.852 billion[18] - The group's credit impairment losses were RMB 44,852 million, an increase from RMB 42,566 million in the same period of 2019, indicating a rise of 5.4%[43] - The non-performing loan balance was RMB 1,966.93 billion, with a non-performing loan ratio of 21.40%, unchanged from the end of the previous year[21] Capital and Liquidity - The average liquidity coverage ratio for the first quarter of 2020 was 145.2%, an increase of 19.6 percentage points from the previous quarter[34] - Core Tier 1 capital adequacy ratio stood at 11.34% as of March 31, 2020, compared to 11.24% at the end of the previous year[32] - The leverage ratio as of March 31, 2020, was 6.98%, exceeding regulatory requirements[36] - The total qualified liquid assets amounted to RMB 4,767,546 million, with a net liquidity outflow of RMB 2,974,560 million, resulting in a liquidity coverage ratio of 145.2%[35] Shareholder Information - The bank's equity attributable to shareholders reached RMB 2,021,002 million, a rise of 3.73% year-on-year[5] - The number of ordinary shareholders was 406,316, with A-share shareholders accounting for 383,624[8] - The bank's cash dividend policy was executed with a total cash dividend of RMB 2.2 billion distributed to shareholders[29] Cash Flow Management - The net cash flow from operating activities was RMB 262,567 million, slightly down from RMB 263,874 million in the first quarter of 2019[45] - The net cash flow from investment activities was negative at RMB 43,760 million, an improvement from the negative RMB 80,341 million in the same period last year[46] - Total cash inflow from financing activities was RMB 21,306 million, compared to a cash outflow of RMB 3,757 million in the previous year[46] - The total cash and cash equivalents increased by RMB 242,845 million during the period, reflecting strong liquidity management[46]