中国银行(03988) - 2020 - 年度财报

Company Overview Bank of China Introduction Bank of China, established in 1912, is China's longest continuously operating bank, having served as a central bank and international exchange bank before reorganizing as a state-owned commercial bank in 1994 and becoming the first A+H-share listed bank in 2006, now operating in 61 countries and regions as a Global Systemically Important Bank, offering comprehensive corporate, personal, and financial market services - Bank of China was established in February 1912, making it the longest continuously operating bank in China[127] - Reorganized as a state-owned commercial bank in 1994, it was the first to be listed on the Hong Kong Stock Exchange and Shanghai Stock Exchange in 2006, becoming the first 'A+H' listed bank in China[127] - Continuously selected as a Global Systemically Important Bank for 10 consecutive years since 2011, Bank of China operates in 61 countries and regions worldwide, offering comprehensive services including corporate banking, personal banking, financial markets, investment banking, insurance, and funds[127] Development Strategy Guided by Xi Jinping Thought, Bank of China focuses on serving the real economy, deepening financial supply-side structural reform, accelerating digital transformation, and developing fintech, inclusive, green, wealth, cross-border, consumer, and county-level finance, aiming to build a world-class modern banking group - Strategic Guiding Principle: Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, based on new development stages, implementing new development concepts, and serving a new development paradigm[128] - Core Development Directions: Focusing on serving the real economy, continuously developing fintech, inclusive finance, green finance, wealth management, cross-border finance, consumer finance, and county-level finance[128] - Strategic Goal: Accelerating the establishment of a strategic development pattern with domestic commercial banking as the main body and globalization and diversification as two wings, striving to build a world-class modern banking group[128] Honors and Awards In 2020, Bank of China received numerous domestic and international honors, including being consistently named a Global Systemically Important Bank, a Top 500 Global Banking Brand, and a Global 2000 company, gaining widespread industry recognition in areas such as the Belt and Road Initiative, trade finance, bond underwriting, AI applications, private banking, digital banking, inclusive finance, and social responsibility Major Honors and Awards in 2020 | Issuing Body/Media | Award | | :--- | :--- | | FSB (Financial Stability Board) | ‧Global Systemically Important Bank | | THE BANKER | ‧Top 500 Global Banking Brands | | FORTUNE | ‧2020 Fortune Global 500, Rank 43 | | FORBES | ‧2020 Forbes Global 2000, Rank 10 | | ASIAMONEY | ‧Best Financial Institution in China for Belt and Road Initiative ‧Best Trade Finance Bank ‧Best Transaction Bank ‧Best M&A Financing Bank | | FINANCE ASIA | ‧Best Bond Underwriter | | THE ASIAN BANKER | ‧Best AI Application in China ‧Cross-border Wealth Management Service of the Year in China | | ASIAN PRIVATE BANKER | ‧Best Private Bank in China (State-owned Bank Group) | | People's Bank of China | ‧First Prize for Banking Technology Development | | China Foreign Exchange Trade System | ‧Best Comprehensive Market Maker | | CBN (China Business News) | ‧Best Digital Bank | | China Business Journal | ‧Excellent Competitiveness Mobile Banking | | Financial Times | ‧Bank of the Year for Inclusive Financial Services | | Securities Times | ‧China Smart Investment Advisory (Wealth Management) Pioneer Award | | Sina | ‧Best Bank for Responsible Investment | | China Small and Medium-sized Enterprises Investment and Financing Fair | ‧Excellent Case for Financial Services to Small and Micro Enterprises | | Board Magazine | ‧Golden Round Table Award — Excellent Board of Directors Award ‧Annual Report Gold Award | | League of American Communications Professionals | ‧Annual Report Gold Award ‧Most Attractive Annual Report in Asia-Pacific | | Hong Kong Management Association | ‧Best H-share and Red-chip Annual Report Award | | China Banking Association | ‧Best Social Responsibility Manager ‧Achievement Award for Supporting the "Three Critical Battles" ‧Achievement Award for Practicing the "Belt and Road" Initiative ‧Best Social Responsibility Special Contribution Branch in China's Banking Industry | | China Newsweek | ‧Annual Responsible Enterprise | | World Brand Lab | ‧China's 500 Most Valuable Brands, Rank 12 | | Hurun Research Institute | ‧2020 Hurun China's Most Historically and Culturally Rich Brands, Rank 2 | | ChinaHR.com | ‧China's Top 100 Best Employers for University Students | Report Basic Information Definitions This section defines common terms used in the annual report, including A-shares, H-shares, the Bank/the Group, Ministry of Finance, regional branches, independent directors, Company Law, Articles of Association, basis points, SSE, HKEX, CBIRC, CNY, and subsidiary names, to ensure clear understanding of the report content - Defined A-shares (listed on Shanghai Stock Exchange, stock code 601988) and H-shares (listed on Hong Kong Stock Exchange, stock code 3988) share types[133] - Clarified that 'the Bank/the Group' refers to Bank of China Limited and all its subsidiaries[133] - Explained that 'basis points (Bp, Bps)' are units for measuring changes in interest rates or exchange rates, where 1 basis point equals 0.01 percentage points[133] - Listed major subsidiaries of Bank of China, such as BOC Insurance, BOC Fullerton, BOC International Holdings, and BOC Aviation Leasing[133] Important Notice The Bank's Board of Directors, Board of Supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the annual report; the 2020 financial report was audited by Ernst & Young Hua Ming LLP and Ernst & Young, receiving an unqualified opinion; the Board proposes a final ordinary share dividend of CNY 1.97 per 10 shares (pre-tax) for 2020, and notes that the report may contain forward-looking statements and associated risks - The Board of Directors, Board of Supervisors, and senior management guarantee the truthfulness, accuracy, and completeness of the annual report content, with no false records, misleading statements, or major omissions[134] - The 2020 annual financial report has been audited by Ernst & Young Hua Ming LLP and Ernst & Young, and an unqualified audit opinion was issued[134] - The Board of Directors proposes a final ordinary share dividend of CNY 1.97 per 10 shares (pre-tax) for 2020, pending approval by the Shareholders' Meeting[134] - The report contains forward-looking statements, and actual results may differ materially due to changes in macroeconomic, political, and economic conditions, as well as operational risks (e.g., credit risk, market risk, operational risk)[134] Financial Highlights In 2020, Bank of China Group achieved an after-tax profit of CNY 205.096 billion, a 1.59% year-on-year increase, with after-tax profit attributable to shareholders at CNY 192.870 billion, up 2.92%; year-end total assets reached CNY 24.40 trillion, total liabilities CNY 22.24 trillion, and shareholders' equity CNY 2.04 trillion, with an NPL ratio of 1.46% and a capital adequacy ratio of 16.22% Key Financial Data for 2020 (IFRS, Unit: CNY Million) | Indicator | 2020 | 2019 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | 415,918 | 390,050 | 25,868 | 6.63% | | Non-Interest Income | 151,729 | 159,960 | (8,231) | (5.15%) | | Operating Income | 567,647 | 550,010 | 17,637 | 3.21% | | Operating Expenses | (202,411) | (198,269) | (4,142) | 2.09% | | Asset Impairment Losses | (119,016) | (102,153) | (16,863) | 16.51% | | After-tax Profit | 205,096 | 201,891 | 3,205 | 1.59% | | After-tax Profit Attributable to the Bank's Shareholders | 192,870 | 187,405 | 5,465 | 2.92% | | Total Assets | 24,402,659 | 22,769,744 | 1,632,915 | 7.17% | | Total Liabilities | 22,239,822 | 20,793,048 | 1,446,774 | 6.96% | | Total Equity Attributable to the Bank's Shareholders | 2,038,419 | 1,851,701 | 186,718 | 10.08% | | Basic Earnings Per Share (CNY) | 0.61 | 0.61 | 0 | 0% | | Dividend Per Share (Pre-tax, CNY) | 0.197 | 0.191 | 0.006 | 3.14% | | Non-Performing Loan Ratio (%) | 1.46 | 1.37 | 0.09 | 6.57% | | Capital Adequacy Ratio (%) | 16.22 | 15.59 | 0.63 | 4.04% | - The average return on total assets (ROA) was 0.87%, and return on equity (ROE) was 10.61%[140] - The non-performing loan provision coverage ratio was 177.84%, a decrease of 5.02 percentage points from the end of the previous year[140] Company Basic Information This section provides Bank of China's basic information, including legal name, legal representative, board secretary, registered and office addresses, contact details, securities information, legal counsel, and auditors, as well as registered capital and preference share information, to facilitate understanding for investors and the public - The legal Chinese name is 中国银行股份有限公司, and the legal English name is BANK OF CHINA LIMITED[143] - The legal representative and Chairman is Liu Liange, and the Board Secretary and Company Secretary is Mei Feiqi[143] - The registered capital is CNY 294,387,791,241[146] - A-share stock code is 601988, H-share stock code is 3988, domestic preference shares include BOC Preferred 3 (360033) and BOC Preferred 4 (360035), and offshore preference share code is 4619[146] Management Report Chairman's Statement Chairman Liu Liange reviewed Bank of China's robust operating results in 2020 amidst the pandemic, highlighting six key areas: serving the real economy, supporting poverty alleviation, deepening business transformation, enhancing globalization and diversification, strengthening risk management, and comprehensively deepening reforms; looking to 2021, the Bank will embark on building a world-class modern banking group, focusing on fintech, inclusive finance, and green finance - In 2020, after-tax profit reached CNY 205.1 billion, a year-on-year increase of 1.59%; after-tax profit attributable to the Bank's shareholders was CNY 192.9 billion, a year-on-year increase of 2.92%[148] - At year-end, total assets were CNY 24.40 trillion, total liabilities were CNY 22.24 trillion, and equity attributable to the Bank's shareholders was CNY 2.04 trillion, representing year-on-year increases of 7.17%, 6.96%, and 10.08% respectively[148] - The non-performing loan ratio was 1.46%, an increase of 0.09 percentage points from the end of the previous year; the Board of Directors proposed an annual ordinary share cash dividend of CNY 1.97 per 10 shares, with a payout ratio of 30%[148] - Inclusive small and micro enterprise loan balance was CNY 611.7 billion, an increase of 48% from the end of the previous year; manufacturing medium and long-term loan balance increased by 34.1%[148] - Continuously advancing digital transformation, personal banking architecture reform achieved significant results, corporate banking's 'dual accounts and dual foundations' were gradually strengthened, and cross-border RMB settlement and clearing volumes maintained industry leadership[149] - In 2021, the Bank will fully embark on a new journey to build a world-class modern banking group, focusing on developing fintech, inclusive finance, green finance, cross-border finance, consumer finance, county-level finance, and wealth management[150] Supervisors' Report The Chairman of the Board of Supervisors reviewed the Board's work in 2020, emphasizing legal supervision and enhanced effectiveness, including oversight of the Board of Directors and senior management's performance, strategic and financial supervision, risk and internal control supervision, and self-improvement; the Board effectively played a constructive supervisory role, contributing to the Bank's high-quality development, and in 2021, will continue to elevate its supervisory stance, improve methods, and enhance foresight, timeliness, and professionalism - The Board of Supervisors legally performs daily duty supervision and annual performance evaluation of the Board of Directors, senior management, and their members, promoting legal and compliant performance of duties[153] - Continuously deepening strategic and financial supervision, actively offering advice and suggestions for the Bank's strategic development plan during the '14th Five-Year Plan' period, and conducting review and supervision on the preparation, audit, and disclosure of periodic reports[153] - Actively assessing the impact of the pandemic on the banking industry's operating environment, continuously tracking key risk internal control work, and regularly sending supervision suggestion letters and risk warning letters to the Board of Directors and senior management[153] - The Board of Supervisors strengthened its own construction, organized special seminars and training, enhanced supervisors' professional capabilities and performance levels, and effectively interacted with the Board of Directors and senior management to improve corporate governance capabilities[153] Management Discussion and Analysis Comprehensive Financial Review In 2020, Bank of China Group achieved an after-tax profit of CNY 205.096 billion, a 1.59% year-on-year increase, amidst a complex economic and financial environment; net interest income grew by 6.63%, while non-interest income decreased by 5.15%; asset and liability scale grew steadily, with total customer loans up 8.78% and customer deposits up 6.71%; the Group continuously optimized its asset-liability structure, strengthened risk management, and actively responded to market changes - In 2020, the Group achieved an after-tax profit of CNY 205.096 billion, a year-on-year increase of 1.59%; after-tax profit attributable to the Bank's shareholders was CNY 192.870 billion, a year-on-year increase of 2.92%[157] - At year-end, total assets amounted to CNY 24.402659 trillion, a year-on-year increase of 7.17%; total liabilities amounted to CNY 22.239822 trillion, a year-on-year increase of 6.96%[177] - At year-end, total customer loans were CNY 14.216477 trillion, a year-on-year increase of 8.78%; total customer deposits were CNY 16.879171 trillion, a year-on-year increase of 6.71%[182][191] Economic and Financial Environment In 2020, the global economy experienced a deep recession due to COVID-19, with major economies implementing loose monetary policies, and financial markets stabilizing after initial volatility; China's economy achieved positive growth, with continuous structural optimization and new achievements in high-level opening-up; Chinese banking financial institutions increased support for the real economy, with total assets growing by 10.1% and an NPL ratio of 1.84% - In 2020, the global economy experienced a deep recession, with central banks in major economies implementing large-scale asset purchases and interest rate cuts, leading to ample global liquidity[156] - China's economy achieved positive growth, with GDP increasing by 2.3% year-on-year, and value added of high-tech manufacturing increasing by 7.1% year-on-year[156] - Total assets of China's banking financial institutions reached CNY 319.7 trillion, an increase of 10.1% from the end of the previous year; year-end non-performing loan balance was CNY 2.7 trillion, with an NPL ratio of 1.84%[156] Analysis of Key Income Statement Items In 2020, Bank of China Group's net interest income was CNY 415.918 billion, a 6.63% year-on-year increase, primarily driven by increased customer loan volume; non-interest income was CNY 151.729 billion, a 5.15% year-on-year decrease, mainly due to reduced net trading gains; operating expenses were CNY 202.411 billion, up 2.09%, with a cost-to-income ratio of 26.73%; asset impairment losses were CNY 119.016 billion, up 16.51% Group Income Statement Key Items and Changes (Unit: CNY Million) | Item | 2020 | 2019 | Change | Change Rate | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | 415,918 | 390,050 | 25,868 | 6.63% | | Non-Interest Income | 151,729 | 159,960 | (8,231) | (5.15%) | | Operating Income | 567,647 | 550,010 | 17,637 | 3.21% | | Operating Expenses | (202,411) | (198,269) | (4,142) | 2.09% | | Asset Impairment Losses | (119,016) | (102,153) | (16,863) | 16.51% | | After-tax Profit | 205,096 | 201,891 | 3,205 | 1.59% | | After-tax Profit Attributable to the Bank's Shareholders | 192,870 | 187,405 | 5,465 | 2.92% | - Net interest margin was 1.85%, a year-on-year decrease of 4 basis points, mainly due to the decline in LPR and Fed rate cuts, leading to a decrease in asset yields[162] - Net fee and commission income was CNY 75.522 billion, a year-on-year increase of 2.32%, mainly benefiting from the rapid growth of fund distribution and custody businesses[169] - The Group's cost-to-income ratio (under Mainland China regulatory standards) was 26.73%, a year-on-year decrease of 1.27 percentage points[173] - Income tax expense was CNY 41.282 billion, a year-on-year decrease of 15.33%, with an effective tax rate of 16.76%[176] Analysis of Balance Sheet Items At year-end 2020, Bank of China Group's total assets were CNY 24.40 trillion, up 7.17% year-on-year; total liabilities were CNY 22.24 trillion, up 6.96%; total customer loans were CNY 14.22 trillion, up 8.78%, with RMB loans growing 11.72%; total investments were CNY 5.59 trillion, up 1.40%; total customer deposits were CNY 16.88 trillion, up 6.71%; and total shareholders' equity was CNY 2.16 trillion, up 9.42% Group Statement of Financial Position Key Items (Unit: CNY Million) | Item | Amount as of Dec 31, 2020 | Proportion | Amount as of Dec 31, 2019 | Proportion | | :--- | :--- | :--- | :--- | :--- | | Total Assets | 24,402,659 | 100.00% | 22,769,744 | 100.00% | | Net Customer Loans | 13,848,304 | 56.75% | 12,743,425 | 55.97% | | Investments | 5,591,117 | 22.91% | 5,514,062 | 24.22% | | Total Liabilities | 22,239,822 | 100.00% | 20,793,048 | 100.00% | | Customer Deposits | 16,879,171 | 75.90% | 15,817,548 | 76.07% | | Total Equity Attributable to the Bank's Shareholders | 2,038,419 | 9.17% | 1,851,701 | 8.91% | - Total customer loans were CNY 14.216477 trillion, a year-on-year increase of 8.78%; of which RMB loans totaled CNY 11.338990 trillion, a year-on-year increase of 11.72%[182] - Total investments were CNY 5.591117 trillion, a year-on-year increase of 1.40%, with RMB investments growing by 3.31%[184] - Total customer deposits were CNY 16.879171 trillion, a year-on-year increase of 6.71%, with RMB customer deposits growing by 9.03%[191] - Total shareholders' equity was CNY 2.162837 trillion, a year-on-year increase of 9.42%, mainly due to after-tax profit growth and external capital replenishment (issuance of CNY 90 billion perpetual bonds and USD 2.82 billion offshore preference shares)[196] Off-Balance Sheet Items Bank of China Group's off-balance sheet items primarily include derivative financial instruments used for trading, hedging, and asset-liability management, while contingent liabilities and commitments cover legal proceedings, pledged assets, capital commitments, and credit commitments - The Group primarily engages in derivative financial instruments for trading, hedging, asset-liability management, and client services, including foreign exchange, interest rate, equity, credit, precious metals, and other commodity derivatives[197] - Contingent liabilities and commitments include legal proceedings and arbitration, pledged assets, collateral received, capital commitments, operating leases, government bond redemption commitments, credit commitments, and securities underwriting commitments[199] Cash Flow Analysis At year-end 2020, Bank of China Group's cash and cash equivalents balance was CNY 1.494868 trillion, a year-on-year increase of CNY 148.976 billion; cash flow from operating activities shifted from a net outflow to a net inflow of CNY 73.028 billion, mainly due to increased net interbank deposits and customer deposits; net outflows from investing activities and net inflows from financing activities both decreased year-on-year - At year-end, the Group's cash and cash equivalents balance was CNY 1.494868 trillion, an increase of CNY 148.976 billion from the end of the previous year[200] - Cash flow from operating activities was a net inflow of CNY 73.028 billion, compared to a net outflow of CNY 484.266 billion in the previous year, mainly due to a net increase in interbank deposits and a year-on-year increase in customer deposits[200] - Cash flow from investing activities was a net outflow of CNY 17.066 billion, with the net outflow decreasing by CNY 148.612 billion year-on-year, mainly due to a year-on-year increase in cash received from investment disposals[200] - Cash flow from financing activities was a net inflow of CNY 126.617 billion, with the net inflow decreasing by CNY 166.494 billion year-on-year, mainly due to a year-on-year increase in cash paid for debt repayment[200] Geographical Segment Report Bank of China Group primarily operates in Mainland China, Hong Kong, Macao, Taiwan, and other countries and regions; at year-end 2020, Mainland China's total assets accounted for 75.26% of the Group's total, contributing 76.60% of pre-tax profit; Hong Kong, Macao, and Taiwan regions accounted for 16.66% of assets, contributing 20.40% of pre-tax profit, but pre-tax profit decreased by 11.60% year-on-year; other countries and regions accounted for 8.08% of assets, with pre-tax profit decreasing by 53.14% year-on-year 2020 Geographical Segment Key Financial Data (Unit: CNY Million) | Item | Mainland China | Hong Kong, Macao, Taiwan | Other Countries and Regions | Offset | Group | | :--- | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | 362,993 | 37,560 | 15,365 | – | 415,918 | | Non-Interest Income | 73,641 | 73,807 | 6,637 | (2,356) | 151,729 | | Operating Expenses | (140,087) | (56,479) | (8,201) | 2,356 | (202,411) | | Asset Impairment Losses | (107,622) | (4,981) | (6,413) | – | (119,016) | | Pre-tax Profit | 188,740 | 50,250 | 7,388 | – | 246,378 | | Total Assets | 19,454,269 | 4,306,679 | 2,090,165 | (1,448,454) | 24,402,659 | | Liabilities | 17,753,122 | 3,917,100 | 2,017,915 | (1,448,315) | 22,239,822 | - Mainland China's total assets were CNY 19.454269 trillion, accounting for 75.26% of the Group's total assets, with pre-tax profit of CNY 188.740 billion, a year-on-year increase of 5.83%, contributing 76.60% to the Group's pre-tax profit[202] - Hong Kong, Macao, and Taiwan regions' pre-tax profit was CNY 50.250 billion, a year-on-year decrease of 11.60%, contributing 20.40% to the Group's pre-tax profit[203] - Pre-tax profit from other countries and regions was CNY 7.388 billion, a year-on-year decrease of 53.14%, contributing 3.00% to the Group's pre-tax profit[203] Key Accounting Estimates and Judgments In preparing financial statements, the Group makes significant accounting estimates and judgments in key areas such as impairment losses on loans and advances, fair value of derivative and other financial instruments, provisions, retirement benefit obligations, taxes, impairment of non-financial assets, and control over structured entities, all based on historical experience and reasonable expectations of future events - The assessment of impairment losses on loans and advances relies highly on management judgment, involving criteria for significant increases in credit risk, expected credit loss measurement parameters (such as probability of default, loss given default, exposure at default), and forward-looking information[558] - For derivative financial instruments and other financial instruments without active markets, fair value is determined using valuation techniques, utilizing observable market data where possible, and regularly testing the effectiveness of valuation techniques[559][560] - The judgment of control over structured entities requires comprehensive consideration of power, variable returns, and their linkage to determine whether they are included in the scope of consolidated financial statements[563] Fair Value Measurement The Group has established a sound internal control mechanism for fair value measurement and formulated a financial instrument fair value valuation policy in accordance with relevant accounting standards and regulatory guidelines; at year-end 2020, total financial instruments measured at fair value amounted to CNY 2.612339 trillion, with Level 3 financial investments accounting for 5%, carrying higher valuation uncertainty - The Bank has established a sound internal control mechanism and formulated the 'Bank of China Limited Financial Instruments Fair Value Valuation Policy' to standardize the fair value measurement of financial instruments[205] Changes in Financial Instruments Measured at Fair Value (Unit: CNY Million) | Item | Dec 31, 2020 | Dec 31, 2019 | Annual Change | Impact on Profit | | :--- | :--- | :--- | :--- | :--- | | Financial Assets at FVTPL | | | | | | Bonds | 347,243 | 371,232 | (23,989) | | | Equity Instruments | 88,025 | 79,456 | 8,569 | 2,339 | | Funds and Others | 69,281 | 67,562 | 1,719 | | | Customer Loans and Advances at FVTPL | 362,658 | 339,687 | 22,971 | 243 | | Financial Assets at FVOCI | | | | | | Bonds | 2,086,362 | 2,196,352 | (109,990) | | | Equity Instruments and Others | 21,428 | 21,777 | (349) | (4,244) | | Derivative Financial Assets | 171,738 | 93,335 | 78,403 | | | Derivative Financial Liabilities | (212,052) | (90,060) | (121,992) | 409 | | Interbank Deposits and Placements at FVTPL | (3,831) | (14,767) | 10,936 | (30) | | Customer Deposits at FVTPL | (25,742) | (17,969) | (7,773) | – | | Issued Bonds at FVTPL | (6,162) | (26,113) | 19,951 | (9) | | Short Selling of Bonds | (17,912) | (19,475) | 1,563 | (7) | Other Financial Information The Group's 2020 financial report, prepared under International Financial Reporting Standards and Chinese Accounting Standards, shows no differences in shareholders' equity and after-tax profit - There is no difference in shareholders' equity and after-tax profit prepared by the Bank under International Financial Reporting Standards and Chinese Accounting Standards[206] Business Review In 2020, Bank of China Group steadily grew its businesses by continuously advancing its enhanced development strategy amidst a complex environment; Mainland China commercial banking operating income increased by 3.59%, with outstanding performance in personal banking; global operations steadily improved, with overseas deposits and loans maintaining growth; diversified operations showed results, with development in investment banking, asset management, insurance, direct investment, and leasing; service channels and information technology development were continuously optimized, accelerating digital transformation Group Operating Income by Major Business Segment (Unit: CNY Million) | Item | 2020 Amount | Proportion | 2019 Amount | Proportion | | :--- | :--- | :--- | :--- | :--- | | Commercial Banking Business | 507,110 | 89.33% | 497,424 | 90.44% | | Of which: Corporate Banking Business | 217,590 | 38.33% | 221,123 | 40.21% | | Personal Banking Business | 221,634 | 39.04% | 186,744 | 33.95% | | Treasury Business | 67,886 | 11.96% | 89,557 | 16.28% | | Investment Banking and Insurance Business | 41,017 | 7.23% | 35,226 | 6.40% | | Other Businesses and Offsetting Items | 19,520 | 3.44% | 17,360 | 3.16% | | Total | 567,647 | 100.00% | 550,010 | 100.00% | - Mainland China commercial banking business achieved operating income of CNY 429.033 billion, a year-on-year increase of 3.59%[210] - At year-end, overseas commercial banking customer deposits and loans totaled USD 485.144 billion and USD 407.797 billion respectively, representing year-on-year increases of 6.80% and 4.58%[236] Mainland China Commercial Banking Business In 2020, Mainland China commercial banking business achieved operating income of CNY 429.033 billion, up 3.59%; corporate banking focused on strengthening customer base and product innovation, with rapid growth in green credit; inclusive finance loan balance grew by 48%; personal banking operating income reached CNY 199.508 billion, up 22.08%, with significant development in wealth management, consumer finance, private banking, and bank card businesses; financial markets maintained advantages in bond underwriting, trading, and custody; village and township banks actively supported rural revitalization, with loan balances growing by 24.07% - Mainland China commercial banking business achieved operating income of CNY 429.033 billion, a year-on-year increase of 3.59%[210] - At year-end, Mainland China's green credit balance amounted to CNY 896.798 billion, achieving rapid growth[215] - Inclusive small and micro enterprise loan balance was CNY 4.6117 trillion, an increase of 48% from the end of the previous year, and the average interest rate for new inclusive small and micro enterprise loans issued throughout the year was 3.93%[221] - In 2020, Mainland China personal banking business achieved operating income of CNY 199.508 billion, a year-on-year increase of 22.08%[223] - At year-end, the Group's private banking customer count reached 132,900, with financial assets under management totaling CNY 1.85 trillion[227] - Village and township bank loan balance was CNY 55.169 billion, an increase of 24.07% from the end of the previous year[234] Corporate Banking Business In 2020, Mainland China corporate banking business achieved operating income of CNY 186.956 billion, a 0.48% year-on-year decrease; the Bank focused on key administrative and institutional client groups, intensified source marketing, and enhanced comprehensive service capabilities; corporate deposits and loans grew steadily, with RMB corporate deposits up 7.08% and RMB corporate loans up 12.07%; the Bank continuously promoted green finance, with rapid growth in green credit balance and significant achievements in green bond issuance and underwriting; financial institution business and transaction banking also maintained leading positions, with cross-border RMB settlement volume growing by 25.75% - In 2020, Mainland China corporate banking business achieved operating income of CNY 186.956 billion, a year-on-year decrease of 0.48%[212] - At year-end, Mainland China RMB corporate deposits were CNY 6.453523 trillion, a year-on-year increase of 7.08%; foreign currency corporate deposits amounted to USD 85.977 billion, a year-on-year increase of 10.09%[213] - At year-end, Mainland China RMB corporate loans were CNY 6.266331 trillion, a year-on-year increase of 12.07%; foreign currency corporate loans amounted to USD 39.173 billion, a year-on-year increase of 5.32%[214] - At year-end, Mainland China's green credit balance amounted to CNY 896.798 billion, achieving rapid growth[215] - In 2020, the Group achieved international settlement volume of USD 5.75 trillion, a year-on-year increase of 10.68%[217] - In 2020, the Group achieved cross-border RMB settlement volume of CNY 9.20 trillion, a year-on-year increase of 25.75%[219] Inclusive Finance Business Bank of China continuously advanced inclusive finance development, with inclusive small and micro enterprise loan balance reaching CNY 4.6117 trillion at year-end 2020, a 48% increase from the previous year, serving over 480,000 customers; the Bank leveraged fintech to innovate online financing products and deepened cross-border matchmaking services, supporting small and micro enterprises in resuming work and strengthening their operations - At year-end, inclusive small and micro enterprise loan balance was CNY 4.6117 trillion, an increase of 48% from the end of the previous year, higher than the overall loan growth rate of the Bank[221] - The number of inclusive small and micro enterprise customers exceeded 480,000, and the average interest rate for new inclusive small and micro enterprise loans issued throughout the year was 3.93%[221] - Innovated the 'BOC Enterprise E-Loan' online financing product system, launching products such as 'BOC Enterprise E-Loan · Credit Loan' and 'BOC Enterprise E-Loan · Tax Loan' to improve service efficiency[222] - In 2020, 11 cross-border matchmaking events were held, assisting over 3,000 Chinese and foreign enterprises from 64 countries and regions in matchmaking[222] Personal Banking Business In 2020, Mainland China personal banking business achieved operating income of CNY 199.508 billion, up 22.08% year-on-year; the Bank deepened account management, wealth management, consumer finance, private banking, and personal foreign exchange businesses, and accelerated the digital transformation of bank card business; mobile banking customer count reached 211 million, with annual transaction volume of CNY 32.28 trillion, growing by 16.44% and 14.14% respectively - In 2020, Mainland China personal banking business achieved operating income of CNY 199.508 billion, an increase of CNY 36.079 billion year-on-year, growing by 22.08%[223] - At year-end, entrusted pension fund scale was CNY 101.792 billion, a year-on-year increase of 94.76%; enterprise annuity individual account management reached 3.4136 million accounts, a year-on-year increase of 12.42%[223] - Mobile banking customer count reached 211 million, with annual transaction volume reaching CNY 32.28 trillion, representing year-on-year increases of 16.44% and 14.14% respectively[232] - At year-end, the Group's private banking customer count reached 132,900, with financial assets under management totaling CNY 1.85 trillion[227] Bank Card Issuance and Transaction Volume Data (Unit: 10,000 Cards / CNY 100 Million) | Item | Dec 31, 2020 | Dec 31, 2019 | Change Rate | | :--- | :--- | :--- | :--- | | Cumulative Debit Card Volume | 59,426.93 | 56,513.13 | 5.16% | | Cumulative Credit Card Volume | 13,174.39 | 12,495.01 | 5.44% | | Cumulative Social Security Cards with Financial Functions | 11,154.83 | 10,842.11 | 2.88% | | Credit Card Receivables Balance | 4,880.86 | 4,621.50 | 5.61% | | Debit Card Consumption Transaction Volume | 80,319.41 | 71,152.78 | 12.88% | | Credit Card Consumption Volume | 16,394.27 | 17,772.09 | (7.75%) | | Credit Card Installment Transaction Volume | 3,637.98 | 3,256.06 | 11.73% | Financial Markets Business Bank of China actively adapted to interest rate and exchange rate marketization and RMB internationalization, continuously deepened business structure adjustment, and maintained and consolidated its advantages in financial market business; the Bank strengthened investment business analysis, optimized investment portfolio structure, and continuously optimized its service system in trading business, leading peers in foreign exchange settlement and sales market share; investment banking leveraged its global and diversified advantages to provide comprehensive financial services to clients, with bond underwriting scale ranking among the top in the industry - The Bank underwrote CNY 1.575925 trillion in bonds in China's interbank bond market, including CNY 33.650 billion in epidemic prevention and control bonds[233] - Foreign exchange settlement and sales market share continued to lead the industry, with 39 currency pairs for quoted exchange rates and 110 types of currencies for foreign exchange trading[233] - China's offshore bond underwriting market share continued to rank first, and domestic green bond underwriting volume led the interbank market[233] Village and Township Banks BOC Fullerton Village and Township Banks actively implemented the national rural revitalization strategy, committed to providing modern financial services to county-level small and micro enterprises, individual businesses, and rural customers; at year-end 2020, BOC Fullerton controlled 124 village and township banks with 176 sub-branches, with deposit balance of CNY 46.588 billion, up 12.02% year-on-year; loan balance of CNY 55.169 billion, up 24.07%; NPL ratio of 1.43%, and after-tax profit of CNY 850 million - BOC Fullerton Community Bank Co., Ltd. officially opened on August 18, 2020, with its registered address in Xiong'an New Area, Hebei, China[234] - At year-end 2020, BOC Fullerton controlled 124 village and township banks across 22 provinces (municipalities directly under the Central Government), with 176 sub-branches, making it the largest group of village and township banks by number of institutions in China[234] BOC Fullerton Village and Township Banks Key Financial Data as of Year-End 2020 (Unit: CNY Billion) | Indicator | Amount | | :--- | :--- | | Total Assets | 75.935 | | Net Assets | 12.851 | | Deposit Balance | 46.588 | | Loan Balance | 55.169 | | NPL Ratio | 1.43% | | NPL Provision Coverage Ratio | 249.11% | | After-tax Profit | 0.850 | Global Operations Business As the most internationalized Chinese bank, Bank of China's overseas commercial banking customer deposits and loans grew by 6.80% and 4.58% respectively at year-end 2020, achieving a pre-tax profit of USD 6.728 billion; the Bank continuously optimized its global network, covering 61 countries and regions, and leveraged its cross-border advantages in corporate banking, personal banking, financial markets, and payment and clearing businesses, actively serving national strategies and the real economy - At year-end, overseas commercial banking customer deposits and loans totaled USD 485.144 billion and USD 407.797 billion respectively, representing year-on-year increases of 6.80% and 4.58%[236] - In 2020, pre-tax profit reached USD 6.728 billion, contributing 18.83% to the Group's pre-tax profit[236] - As of year-end 2020, the Bank had 559 overseas branches, covering 61 countries and regions worldwide, including 25 Belt and Road countries[236] - Holds 13 out of 27 RMB clearing bank seats globally, maintaining industry leadership; total cross-border RMB clearing volume handled throughout the year was CNY 471 trillion, a year-on-year increase of over 8%, maintaining its global leading position[242] Corporate Banking Business Bank of China's overseas corporate deposits and loans maintained stable growth, with continuous optimization of industry and customer structure; the Bank ranked first among Chinese banks in the syndicated loan markets in Asia-Pacific (excluding Japan), Europe/Africa, and the Americas; it continuously expanded its global institutional investor base and held 72 cross-border matchmaking events globally, serving 30,000 Chinese and foreign enterprises - At year-end, ranked first among peers in the syndicated loan market in Asia-Pacific (excluding Japan), and first among Chinese banks in the syndicated loan markets in Europe, Africa, and the Americas[237] - As of year-end 2020, 72 cross-border matchmaking events had been held globally, serving 30,000 Chinese and foreign enterprises from 125 countries and regions[238] Personal Banking Business Bank of China continuously optimized its overseas personal customer service system, with business covering over 30 countries and regions; the Bank improved the 'Three Easies, Three Connects' service system in the Guangdong-Hong Kong-Macao Greater Bay Area, with 'Easy Account Opening' accumulating 120,000 accounts; simultaneously, it increased promotion of overseas mobile banking, expanding coverage to 30 countries and regions, and issued debit card products in 19 countries and regions - Improved the 'Three Easies, Three Connects' service system in the Guangdong-Hong Kong-Macao Greater Bay Area, with 'Easy Account Opening' accumulating 120,000 accounts[239] - Increased promotion of overseas mobile banking, expanding coverage to 30 countries and regions[240] - Continuously improved the overseas debit card layout, issuing debit card products in 19 countries and regions, covering UnionPay, Visa, and Mastercard brands[240] Financial Markets Business Bank of China in overseas financial markets actively managed its bond investment business and enhanced its global integrated management; the Bank successfully issued MOP 5 billion equivalent dual-currency special social responsibility bonds for SMEs (epidemic prevention and control) and USD 939 million equivalent dual-currency blue bonds in the international market; in 2020, its Panda bond underwriting volume and China offshore bond underwriting volume both ranked first, and cross-border custody business continued to lead among Chinese peers - Successfully issued MOP 5 billion equivalent dual-currency special social responsibility bonds for SMEs (epidemic prevention and control) in the international market, the first anti-epidemic themed bond in the international market[241] - Successfully issued USD 939 million equivalent dual-currency blue bonds, the world's first blue bond from a commercial institution[241] - In 2020, Panda bond underwriting volume was CNY 17.4 billion, with a market share of 31.90%, ranking first; China offshore bond underwriting volume was USD 13.213 billion, with a market share of 6.26%, ranking first[241] - Cross-border custody business continued to lead among Chinese peers, with both cross-border custody scale and growth rate ranking first among the four major banks[241] Payment and Clearing Business Bank of China continuously enhanced its cross-border RMB clearing capabilities, holding 13 out of 27 RMB clearing bank seats globally, maintaining its industry-leading position; it ranked first in the market for the number of indirect participants in the Cross-border Interbank Payment System (CIPS), and processed a total cross-border RMB clearing volume of CNY 471 trillion throughout the year, a year-on-year increase of over 8%, maintaining its global leading position - Holds 13 out of 27 RMB clearing bank seats globally, maintaining industry leadership[242] - Ranked first in the market for the number of indirect participants in the Cross-border Interbank Payment System (CIPS)[242] - Total cross-border RMB clearing volume handled throughout the year was CNY 471 trillion, a year-on-year increase of over 8%, maintaining its global leading position[242] Online Service Channels Bank of China further consolidated its leading position in overseas corporate online banking among Chinese peers, covering 58 branches in 51 countries and regions and supporting 14 languages; it continuously strengthened the construction of its overseas global cash management system and increased efforts in overseas personal mobile banking development, expanding its service scope to 30 countries and regions - Overseas corporate online banking has covered 58 branches in 51 countries and regions, supporting 14 languages including Chinese, English, Korean, Japanese, German, French, and Russian[243] - The overseas global cash management system's business scope covers 33 countries and regions outside Mainland China[243] - Overseas personal mobile banking services have expanded to 30 countries and regions[243] Technology Support and Assurance Bank of China continuously increased technology investment in overseas institutions, steadily implemented infrastructure upgrades, and promoted the optimization of overseas system functions and product promotion to meet the unique needs of overseas businesses, while supporting overseas institutions in adapting to new regulatory landscapes such as Open Banking and PSD2 - Continuously increased technology investment in overseas institutions, steadily implementing infrastructure upgrades and renovations[244] - Promoted the optimization of overseas system functions and product promotion to meet the unique needs of overseas businesses[244] - Supported overseas institutions in adapting to new regulatory landscapes such as Open Banking and the revised Payment Services Directive 2 (PSD2) of the EU[244] BOC Hong Kong BOC Hong Kong actively responded to market changes and strengthened strategic execution amidst a complex operating environment; at year-end 2020, BOC Hong Kong's total assets were HKD 3.320981 trillion, with full-year after-tax profit of HKD 28.468 billion; the Bank continued to deepen its presence in the local Hong Kong market, seized new opportunities in the Guangdong-Hong Kong-Macao Greater Bay Area, improved its Southeast Asia regional layout, and accelerated digital transformation and fintech innovation - As of year-end 2020, BOC Hong Kong's total assets were HKD 3.320981 trillion, and net assets were HKD 319.655 billion[246] - Full-year after-tax profit reached HKD 28.468 billion[246] - Maintained its position as the largest arranger in the Hong Kong-Macao syndicated loan market for 16 consecutive years, and ranked first in Hong Kong IPO principal receiving bank business and new mortgage drawdowns[248] - The Yangon Branch in Myanmar opened, further expanding BOC Hong Kong's regional business to 9 Southeast Asian countries[246] - Mobile banking transaction volume and the number of applications and usage for various online services significantly increased year-on-year, with a leading market share in local 'Faster Payment System' bill payments[247] Diversified Operations Business Bank of China Group continuously improved its diversified development strategy, strengthened overall Group synergy, and promoted high-quality diversified development; investment banking, through BOC International Holdings and BOC Securities, made progress in corporate listings, bond issuance, and wealth management; asset management, through BOC Fund and BOC Wealth Management, steadily expanded its AUM; insurance business, through BOC Group Insurance, BOC Life, and BOC-Samsung Life, actively served national strategies and achieved business growth; direct investment, through BOC Group Investment and BOC Asset Management, focused on high-end manufacturing, healthcare, and other industries, and supported debt-to-equity swaps; leasing business, through BOC Aviation and BOC Financial Leasing, steadily expanded in aircraft leasing and financial leasing markets; fintech, through BOC Fintech, served the Group's development strategy and enhanced technological innovation capabilities - BOC International Holdings achieved an after-tax profit of HKD 1.488 billion in 2020, and BOC Securities achieved an after-tax profit of CNY 885 million[251] - BOC Fund's assets under management reached CNY 501.5 billion at year-end, of which public fund assets under management were CNY 357 billion[254] - BOC Wealth Management's product scale reached CNY 718.122 billion at year-end, and established Huahui Wealth Management Co., Ltd., a joint venture with Amundi Asset Management[255] - BOC Group Investment achieved an after-tax profit of HKD 4.905 billion in 2020, and BOC Asset Management's cumulative market-oriented debt-to-equity swap business reached CNY 158.803 billion[257][258] - BOC Aviation achieved an after-tax profit of USD 510 million in 2020, with an average age of 3.5 years for its owned fleet[259] - BOC Financial Leasing officially commenced operations in June 2020, with over CNY 10 billion in financing lease business deployed by year-end[260] - BOC Fintech achieved an after-tax profit of CNY 14 million in 2020, and its products won numerous awards, enhancing technological innovation capabilities[261] Investment Banking Business Bank of China conducts investment banking business through BOC International Holdings and BOC Securities; BOC International Holdings leveraged its global advantages to assist numerous US-listed Chinese concept stock companies in successful secondary listings on the Hong Kong Stock Exchange, becoming the only Chinese investment bank to participate in multiple Saudi Aramco bond issuances in 2020; BOC Securities successfully listed on the main board of the Shanghai Stock Exchange in February 2020, accelerating the technology-enabled transformation of personal wealth management and the construction of an institutional client ecosystem - BOC International Holdings achieved an after-tax profit of HKD 1.488 billion in 2020, and BOC Securities achieved an after-tax profit of CNY 885 million[251] - BOC International Holdings assisted numerous US-listed Chinese concept stock companies in successful secondary listings on the Hong Kong Stock Exchange, becoming one of the most experienced Chinese investment banks in this field[252] - BOC International Holdings was the only Chinese investment bank to participate in multiple bond issuances by Saudi Aramco in 2020[252] - BOC Securities successfully listed on the main board of the Shanghai Stock Exchange on February 26, 2020, with its bond lead underwriting scale ranking 10th in the industry[252] Asset Management Business Bank of China conducts asset management business through BOC Fund and BOC Wealth Management; BOC Fund achieved an after-tax profit of CNY 1.054 billion in 2020, with assets under management reaching CNY 501.5 billion at year-end; BOC Wealth Management achieved an after-tax profit of CNY 455 million in 2020, with product scale reaching CNY 718.122 billion at year-end, and established Huahui Wealth Management Co., Ltd., the first domestic Sino-foreign joint venture wealth management company, with Amundi Asset Management - BOC Fund achieved an after-tax profit of CNY 1.054 billion in 2020, with assets under management reaching CNY 501.5 billion at year-end[253][254] - BOC Wealth Management achieved an after-tax profit of CNY 455 million in 2020, with product scale reaching CNY 718.122 billion at year-end[255] - BOC Wealth Management established the first domestic Sino-foreign joint venture wealth management company, Huahui Wealth Management Co., Ltd., with Amundi Asset Management, which was approved for operation in September 2020[255] Insurance Business Bank of China conducts insurance business through BOC Group Insurance, BOC Life, and BOC-Samsung Life; BOC Group Insurance achieved gross premium income of HKD 2.663 billion and after-tax profit of HKD 53 million in 2020, actively expanding its Greater Bay Area business; BOC Life achieved an after-tax profit of HKD 878 million in 2020, maintaining a leading position in the Hong Kong life insurance market; BOC-Samsung Life achieved scale premium income of CNY 13.182 billion and after-tax profit of CNY 67 million in 2020, maintaining rapid business growth - BOC Group Insurance achieved gross premium income of HKD 2.663 billion and after-tax profit of HKD 53 million in 2020[254] - BOC Life achieved an after-tax profit of HKD 878 million in 2020, maintaining a leading position in the Hong Kong life insurance market[255] - BOC-Samsung Life achieved scale premium income of CNY 13.182 billion and after-tax profit of CNY 67 million in 2020, with full-year scale premium growing by 40% year-on-year[256] - BOC Insurance conducts overseas insurance business in 70 countries and regions across Asia, Africa, South America, etc., covering over 30 industries, maintaining industry leadership[256] Direct Investment Business Bank of China conducts direct investment and investment management business through BOC Group Investment and BOC Asset Management; BOC Group Investment achieved an after-tax profit of HKD 4.905 billion in 2020, focusing on key industries such as high-end manufacturing and healthcare; BOC Asset Management achieved an after-tax profit of CNY 858 million in 2020, with cumulative market-oriented debt-to-equity swap business reaching CNY 158.803 billion, of which CNY 13.169 billion was newly implemented during the year - BOC Group Investment achieved an after-tax profit of HKD 4.905 billion in 2020, and was rated among the 'Top 50 Chinese Private Equity Investment Institutions in 2020' by Zero2IPO Group[257] - BOC Asset Management achieved an after-tax profit of CNY 858 million in 2020, with cumulative market-oriented debt-to-equity swap business reaching CNY 158.803 billion, of which CNY 13.169 billion was newly implemented during the year[258] - BOC Asset Management implemented the first listed company debt-to-preference share project for market-oriented debt-to-equity swap implementing agencies, supporting the development of high-quality private enterprises[258] Leasing Business Bank of China conducts leasing business through BOC Aviation and BOC Financial Leasing; BOC Aviation achieved an after-tax profit of USD 510 million in 2020, with an average owned fleet age of 3.5 years, and leased out over 64% of its total aircraft to Belt and Road countries and regions; BOC Financial Leasing officially commenced operations in June 2020, deploying over CNY 10 billion in financing lease business by year-end, covering industries such as transportation, water conservancy, environmental protection, and energy production and supply - BOC Aviation achieved an after-tax profit of USD 510 million in 2020, with an average age of 3.5 years for its owned fleet[259] - BOC Aviation leased out aircraft to airlines in Belt and Road countries and regions, as well as Mainland China, Hong Kong, Macao, and Taiwan, accounting for over 64% of the company's total aircraft[259] - BOC Financial Leasing officially commenced operations in June 2020, with over CNY 10 billion in financing lease business deployed by year-end[260] Fintech Bank of China conducts fintech innovation, software development, platform operations, and technical consulting through BOC Fintech; BOC Fintech achieved an after-tax profit of CNY 14 million in 2020, serving the Group's development strategy, undertaking corporate credit system reform and key data governance projects, developing anti-money laundering and inclusive finance products, and comprehensively building ecosystem scenarios for elderly care, culture and tourism, transportation, and banking-healthcare; its products have won numerous awards, enhancing technological innovation capabilities - BOC Fintech achieved an after-tax profit of CNY 14 million in 2020[261] - Serving the Group's development strategy, undertaking corporate credit system reform, key data governance projects, and developing anti-money laundering and inclusive finance products[261] - Fully developing ecosystem scenarios for elderly care, culture and tourism, transportation, and banking-healthcare, supporting the construction of Smart Hainan and Digital Xiong'an[261] - 'BOC Smart Investment' won the 'Gold Award for Technological Innovation Application' at the China Fintech Innovation Competition, and 'Bank of China Smart Risk Control Platform' won 'Top Ten Smart Risk Control Innovation Award' from The Banker[261] Service Channels Bank of China adheres to the concepts of centralization, integration, sharing, intelligence, and openness, accelerating the transformation and upgrade of all channels; in 2020, electronic channels achieved a branch business substitution rate of 95.31%, with transaction volume reaching CNY 274.97 trillion, up 12.80% year-on-year; mobile banking customer count reached 211 million, with transaction volume of CNY 32.28 trillion; offline channels deepened the construction of smart service systems, promoting branch transformation and smart operations reform - In 2020, the Bank's electronic channels achieved a branch business substitution rate of 95.31%, with electronic channel transaction volume reaching CNY 274.97 trillion, a year-on-year increase of 12.80%[264] - Mobile banking customer count reached 211 million, with annual transaction volume reaching CNY 32.28 trillion, representing year-on-year increases of 16.44% and 14.14% respectively[267] Online Channel Customer Count (Unit: 10,000 Accounts) | Item | Dec 31, 2020 | Dec 31, 2019 | Growth Rate | | :--- | :--- | :--- | :---