


Important Notice The Board approved the 2025 interim report and performance announcement, and the report is unaudited - The Board of Directors approved the 2025 semi-annual report and performance announcement on August 29, 2025, with all 16 directors present5 - The report is unaudited5 - 2025 semi-annual profit distribution plan: based on 88.364 billion shares, a cash dividend of RMB 1.563 per 10 shares (tax inclusive) will be distributed to registered A and H shareholders, totaling RMB 13.811 billion5 - No bonus share or capital reserve to share capital conversion plan for this half-year period5 - The Group primarily faces credit risk, market risk, operational risk, and compliance risk in its operations, and has taken measures for effective control5 Definitions This section defines key terms used in the report, including the Bank, the Group, and the "Five Key Initiatives" in financial services - Defines "The Bank / Bank of Communications" as Bank of Communications Co., Ltd., and "The Group" as the Bank and its subsidiaries10 - Lists and explains the "Five Key Initiatives": Technology Finance, Green Finance, Inclusive Finance, Elderly Care Finance, and Digital Finance10 - Introduces several Bank of Communications financial service brands, such as "Yuntong Wealth" for corporate and interbank wealth management, "Wode Wealth" as the main retail brand, and "Jiaoyin Zhanyetong" and "Jiaoyin Yinongtong" for inclusive finance services10 Company Profile Bank of Communications, established in 1908, is a globally systemically important bank ranked 9th by Tier 1 capital, offering comprehensive financial services worldwide - Bank of Communications was founded in 1908 and restructured in 1987 as China's first national state-owned joint-stock commercial bank20 - Listed on the Hong Kong Stock Exchange in 2005 and Shanghai Stock Exchange in 2007, it was designated a Global Systemically Important Bank in 2023, ranking 9th globally by Tier 1 capital20 - Its strategic goal is to "build a world-class banking group with distinctive advantages," focusing on green finance, inclusive finance, trade finance, technology finance, and wealth finance, while implementing the "Five Key Initiatives"20 - Provides comprehensive financial services, including deposits, loans, supply chain finance, cash management, international settlement, and wealth management, to 2.95 million corporate clients and 202 million retail clients through over 2,800 domestic branches and 24 overseas branches/subsidiaries and representative offices20 - The Group engages in financial leasing, funds, wealth management, trusts, insurance, overseas securities, and debt-to-equity swaps through wholly-owned or controlled subsidiaries20 Financial Highlights This section presents key financial data and indicators for the first half of 2025, showing growth in net profit and total assets, alongside improved asset quality 2025 First Half Key Accounting Data and Financial Indicators | Indicator | 2025 Jan-Jun (RMB million) | 2024 Jan-Jun (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | 85,247 | 84,234 | 1.20 | | Net Fee and Commission Income | 20,458 | 21,000 | (2.58) | | Net Operating Income | 133,498 | 132,550 | 0.72 | | Credit Impairment Losses | 32,814 | 33,021 | (0.63) | | Operating Expenses | 39,933 | 39,621 | 0.79 | | Profit Before Tax | 46,910 | 47,678 | (1.61) | | Net Profit (Attributable to Parent Company Shareholders) | 46,016 | 45,287 | 1.61 | | Earnings Per Share (RMB) | 0.59 | 0.56 | 5.36 | | | | | | | Balance Sheet (Period-end): | 2025 Jun 30 | 2024 Dec 31 | Change (%) | | Total Assets | 15,435,405 | 14,900,717 | 3.59 | | Customer Loans | 8,998,499 | 8,555,122 | 5.18 | | Total Liabilities | 14,130,635 | 13,745,120 | 2.80 | | Customer Deposits | 9,171,358 | 8,800,335 | 4.22 | | Shareholders' Equity (Attributable to Parent Company Shareholders) | 1,293,989 | 1,144,306 | 13.08 | | Net Asset Per Share (RMB) | 12.67 | 13.06 | (2.99) | | Total Capital | 1,619,956 | 1,508,812 | 7.37 | | Common Equity Tier 1 Capital | 1,115,440 | 964,568 | 15.64 | | | | | | | Key Financial Ratios (%): | 2025 Jan-Jun | 2024 Jan-Jun | Change (percentage points) | | Annualized Return on Average Assets | 0.61 | 0.65 | (0.04) | | Annualized Weighted Average Return on Equity | 9.16 | 9.29 | (0.13) | | Net Interest Margin | 1.21 | 1.29 | (0.08) | | Cost-to-Income Ratio | 29.94 | 29.94 | – | | | | | | | Asset Quality and Capital Adequacy Ratios (%): | 2025 Jun 30 | 2024 Dec 31 | Change (percentage points) | | Non-performing Loan Ratio | 1.28 | 1.31 | (0.03) | | Provision Coverage Ratio | 209.56 | 201.94 | 7.62 | | Capital Adequacy Ratio | 16.59 | 16.02 | 0.57 | | Tier 1 Capital Adequacy Ratio | 13.21 | 12.11 | 1.10 | | Common Equity Tier 1 Capital Adequacy Ratio | 11.42 | 10.24 | 1.18 | | Leverage Ratio | 7.61 | 6.95 | 0.66 | Management Discussion and Analysis This section provides a comprehensive review of the Group's financial performance, business operations, and risk management strategies for the first half of 2025 Financial Statement Analysis The Group's net profit increased by 1.61% and net operating income by 0.72%, driven by net interest income growth, with improved asset quality and increased cash flows from operating and financing activities Analysis of Key Profit and Loss Statement Items Net interest income grew 1.20%, driving net operating income, despite a decline in net interest margin; net fee and commission income decreased 2.58%, while other non-interest income rose 1.75%, and income tax expense significantly dropped 75.45% 2025 First Half Key Profit and Loss Statement Items Changes | Item | 2025 Jan-Jun (RMB million) | 2024 Jan-Jun (RMB million) | Change (%) | | :--- | :--- | :--- | :--- | | Net Interest Income | 85,247 | 84,234 | 1.20 | | Net Non-Interest Income | 48,251 | 48,316 | (0.13) | | Net Fee and Commission Income | 20,458 | 21,000 | (2.58) | | Net Operating Income | 133,498 | 132,550 | 0.72 | | Credit Impairment Losses | (32,814) | (33,021) | (0.63) | | Operating Expenses | (39,933) | (39,621) | 0.79 | | Profit Before Tax | 46,910 | 47,678 | (1.61) | | Income Tax Expense | (455) | (1,853) | (75.45) | | Net Profit | 46,455 | 45,825 | 1.37 | | Net Profit Attributable to Parent Company Shareholders | 46,016 | 45,287 | 1.61 | - Net interest margin was 1.21%, a decrease of 8 basis points year-on-year, primarily due to LPR reductions, adjustments to existing mortgage rates, and market competition, leading to a decline in asset yields, though interest-bearing liability costs decreased year-on-year28 - Customer loan interest income was RMB 138.325 billion, a year-on-year decrease of RMB 12.396 billion, or 8.22%, mainly due to a 57 basis point year-on-year decline in the annualized average yield on customer loans32 - Net fee and commission income was RMB 20.458 billion, a year-on-year decrease of RMB 542 million, or 2.58%, with reductions in investment banking, custody and other entrusted businesses, payment and settlement, and bank card business income42 - Income tax expense was RMB 455 million, a year-on-year decrease of 75.45%, with an effective tax rate of 0.97%, primarily due to tax-exempt interest income from government and local government bonds48 Analysis of Key Balance Sheet Items Total assets reached RMB 15.44 trillion, growing 3.59% from year-end, driven by a 5.18% increase in customer loans, while total liabilities rose 2.80% with customer deposits up 4.22% Composition of Total Assets as of June 30, 2025 | Item | 2025 Jun 30 (RMB million) | Share (%) | 2024 Dec 31 (RMB million) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Customer Loans | 8,777,937 | 56.87 | 8,351,131 | 56.05 | | Financial Investments | 4,421,066 | 28.64 | 4,320,089 | 28.99 | | Cash and Balances with Central Banks | 751,611 | 4.87 | 717,354 | 4.81 | | Deposits with and Loans to Banks and Other Financial Institutions | 971,094 | 6.29 | 974,042 | 6.54 | | Other Assets | 513,697 | 3.33 | 538,101 | 3.61 | | Total Assets | 15,435,405 | 100.00 | 14,900,717 | 100.00 | - Corporate loans balance was RMB 5.931365 trillion, an increase of RMB 364.787 billion from year-end, a 6.55% growth52 - Personal consumption loans balance was RMB 385.798 billion, an increase of RMB 55.538 billion from year-end, a 16.82% growth53 - Bond investments balance was RMB 3.955194 trillion, an increase of RMB 98.149 billion from year-end, a 2.54% growth; the Group will continue to prioritize interest-rate bond investments, strengthen credit bond market analysis, and serve the real economy60 Composition of Total Liabilities as of June 30, 2025 | Item | 2025 Jun 30 (RMB million) | Share (%) | 2024 Dec 31 (RMB million) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Customer Deposits | 9,171,358 | 64.90 | 8,800,335 | 64.03 | | Deposits from and Loans from Banks and Other Financial Institutions | 2,324,674 | 16.45 | 2,431,451 | 17.69 | | Certificates of Deposit Issued | 1,515,200 | 10.72 | 1,384,372 | 10.07 | | Bonds Issued | 711,828 | 5.04 | 691,248 | 5.03 | | Other Liabilities | 407,575 | 2.89 | 437,714 | 3.18 | | Total Liabilities | 14,130,635 | 100.00 | 13,745,120 | 100.00 | - Customer deposits balance was RMB 9.171358 trillion, an increase of RMB 371.023 billion from year-end, a 4.22% growth65 Analysis of Key Cash Flow Statement Items Cash and cash equivalents increased by RMB 52.282 billion, with operating cash flow net inflow of RMB 53.479 billion and financing cash flow net inflow of RMB 100.143 billion, while investing cash flow saw a net outflow of RMB 102.296 billion - As of the end of the reporting period, cash and cash equivalents balance was RMB 214.232 billion, an increase of RMB 52.282 billion from year-end69 - Net cash flow from operating activities was a net inflow of RMB 53.479 billion, a year-on-year increase of RMB 275.921 billion, primarily due to increased cash inflows from customer deposits69 - Net cash flow from investing activities was a net outflow of RMB 102.296 billion, a year-on-year increase in outflow of RMB 200.338 billion, mainly due to net cash outflow from bond investments during the period69 - Net cash flow from financing activities was a net inflow of RMB 100.143 billion, a year-on-year increase in inflow of RMB 104.339 billion, primarily due to increased cash inflows from the issuance of additional ordinary shares during the period69 Segment Performance The Yangtze River Delta region led in profit before tax and net operating income, while corporate finance dominated business segments, despite a significant year-on-year decline in personal finance profit before tax 2025 First Half Profit Before Tax and Net Operating Income by Region | Region | 2025 Profit Before Tax (RMB million) | Share (%) | 2025 Net Operating Income (RMB million) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Yangtze River Delta | 25,385 | 54.11 | 48,610 | 36.41 | | Pearl River Delta | (3,820) | (8.14) | 12,399 | 9.29 | | Bohai Rim Region | 9,152 | 19.51 | 16,254 | 12.18 | | Central Region | 8,346 | 17.79 | 17,854 | 13.36 | | Western Region | 6,317 | 13.47 | 11,476 | 8.60 | | Northeast Region | 2,036 | 4.34 | 3,708 | 2.78 | | Overseas | 7,303 | 15.57 | 10,076 | 7.55 | | Head Office | (7,809) | (16.65) | 13,121 | 9.83 | | Total | 46,910 | 100.00 | 133,498 | 100.00 | 2025 First Half Profit Before Tax and Net Operating Income by Business Segment | Business Segment | 2025 Net Operating Income (RMB million) | Share (%) | 2025 Profit Before Tax (RMB million) | Share (%) | | :--- | :--- | :--- | :--- | :--- | | Corporate Banking Business | 64,662 | 48.44 | 25,101 | 53.51 | | Personal Banking Business | 49,584 | 37.14 | 7,461 | 15.90 | | Treasury Business | 18,632 | 13.96 | 14,273 | 30.43 | | Other Businesses | 620 | 0.46 | 75 | 0.16 | | Total | 133,498 | 100.00 | 46,910 | 100.00 | - The Yangtze River Delta region accounted for 28.89% of loan balances and 27.94% of deposit balances, ranking first among all regions7478 Business Review The Group advanced its "1-4-5" strategy, achieving significant progress in the "Five Key Initiatives," optimizing credit structure, growing corporate and personal finance, enhancing global services, and accelerating digital transformation Progress of Development Strategy The Group made significant strides in its "Five Key Initiatives" and Shanghai home-field development, with technology loans exceeding RMB 1.5 trillion, green loans over RMB 870 billion, and inclusive loans growing 12.96% - Technology Finance: Provided technology loan support to 68,000 enterprises, with loan balances exceeding RMB 1.5 trillion80 - Green Finance: Green loan balances exceeded RMB 870 billion, with energy-saving and carbon reduction industry balances growing 6.58% from year-end; cumulatively issued RMB 145 billion in green financial bonds in mainland China81 - Inclusive Finance: Inclusive loan balances reached RMB 852.401 billion, an increase of RMB 97.817 billion from year-end, a 12.96% growth82 - Elderly Care Finance: Elderly care industry loan balances grew 21.39% from year-end, with significant increases in social security card and personal pension business volumes85 - Digital Finance: Digital economy core industry loan balances exceeded RMB 286 billion, with internet loans growing 8.52% from year-end86 - Shanghai Home-field Development: Achieved over RMB 488 billion in "Bond Connect" transactions and over RMB 491 billion in "Swap Connect" transactions; added over RMB 2.7 billion in equity investments in Shanghai-based technology enterprises87 Corporate Banking Business Corporate loans grew 6.55% from year-end, with technology, inclusive micro, and elderly care loans exceeding the Group's average growth, while corporate client numbers increased 3.75% and investment banking actively served national strategies - As of the end of the reporting period, the Group's corporate loans increased by RMB 364.787 billion from year-end, a 6.55% growth88 - Loans to technology-based enterprises, inclusive micro and small enterprises, and elderly care industry loans grew by 12.73%, 11.45%, and 21.39% respectively, all exceeding the Group's average loan growth88 - The total number of corporate clients in domestic branches was 2.95 million, an increase of 3.75% from year-end89 - Inclusive micro and small enterprise loan balances reached RMB 849.317 billion, an increase of RMB 87.245 billion from year-end, a 11.45% growth; the average interest rate for newly issued inclusive micro and small enterprise loans in the first half was 2.99%92 - Supply chain finance business volume was RMB 319.163 billion, a year-on-year increase of 4.90%; serving 38,200 upstream and downstream enterprises in the supply chain, a year-on-year increase of 3.99%94 - Underwrote RMB 77.040 billion in NAFMII-standard bonds; provided investment and financing services of RMB 39.344 billion for technology-based enterprises and related industries96 Personal Banking Business Personal deposits, loans, and AUM showed stable growth, with personal consumption loans increasing 16.82%, private banking clients growing 8.94%, and elderly care industry loans rising 21.39% - Personal deposit balances grew 6.18% from year-end, and personal loan balances grew 2.83% from year-end97 - AUM reached RMB 5.792553 trillion, a 5.52% increase from year-end98 - Personal consumption loan balances were RMB 385.798 billion, a 16.82% increase from year-end101 - The Group's private banking client count was 102,600, an 8.94% increase from year-end; assets under management for private banking clients reached RMB 1.388874 trillion, a 7.20% increase from year-end103 - Elderly care industry loan balances grew 21.39% from year-end107 Interbank and Financial Market Business The Group actively supported Shanghai's international financial center development, maintaining leading positions in interbank clearing and settlement, innovating financial market products, and growing asset custody to RMB 16.84 trillion - Ranked among the top in the market for Shanghai Clearing House agency clearing volume, Shanghai Gold Exchange agency settlement volume, and settlement volumes for securities, futures, and other factor markets110 - Completed the first batch of credit derivative transactions referencing technology-based enterprises and launched the first batch of special interbank loans supporting green businesses111 - As of the end of the reporting period, assets under custody reached RMB 16.84 trillion112 Integrated Operations The Group's integrated operations, led by commercial banking, achieved RMB 4.561 billion in net profit attributable to parent company shareholders from subsidiaries, representing 9.91% of the Group's net profit, with strong performance across financial leasing, wealth management, and insurance - Subsidiaries achieved RMB 4.561 billion in net profit attributable to parent company shareholders, accounting for 9.91% of the Group's net profit113 - As of the end of the reporting period, total assets of subsidiaries were RMB 784.731 billion, accounting for 5.08% of the Group's total assets113 - BoCom Financial Leasing's total assets were RMB 467.954 billion, with shipping leasing assets of RMB 166.370 billion, maintaining its position as the world's largest financial shipowner; operating income reached RMB 16.779 billion, a year-on-year increase of 11.09%113 - BoCom Wealth Management's managed wealth management product balance was RMB 1.701318 trillion, a 5.15% increase from year-end; net profit reached RMB 773 million, a year-on-year increase of 8.73%120 - BoComm Life Insurance's insurance service income was RMB 1.412 billion, a year-on-year increase of 13.06%; operating income reached RMB 4.223 billion, a year-on-year increase of 21.17%121 Global Service Capabilities The Group expanded its global network across five continents, with overseas banking institutions contributing RMB 6.152 billion in net profit, while international settlement volume grew 24.38% and cross-border RMB settlement volume increased 56.65% - Overseas banking institutions achieved net profit of RMB 6.152 billion, accounting for 13.37% of the Group's net profit126 - As of the end of the reporting period, total assets of overseas banking institutions were RMB 1.263561 trillion, accounting for 8.19% of the Group's total assets126 - The Bank's international settlement volume was USD 299.965 billion, a year-on-year increase of 24.38%129 - Domestic banking institutions' cross-border RMB settlement volume was RMB 1.37 trillion, a year-on-year increase of 56.65%131 - As of the end of the reporting period, offshore business asset balance was USD 13.719 billion133 Channel Development and Operations The Group enhanced digital operations, with enterprise online and mobile banking showing increased client numbers and transaction volumes, personal mobile banking MAU growing 8.63%, and remote video service volume increasing 90.86% - Enterprise online banking (bank-enterprise direct connection) signed client numbers grew 4.96% from year-end, with cumulative transaction client numbers increasing 6.85% year-on-year135 - Enterprise mobile banking signed client numbers grew 5.33% from year-end, with cumulative transaction volume increasing 11.64% year-on-year135 - Personal mobile banking Monthly Active Users (MAU) reached 49.1228 million, a year-on-year increase of 8.63%136 - "Maidanba" APP accumulated 80.4867 million linked card users, with 26.5997 million monthly active users137 - Open banking online chain finance services disbursed RMB 143.564 billion, a year-on-year increase of 6.32%138 - "Cloud BoCom" remote video service provided 1.29 million transactions, a year-on-year increase of 90.86%139 - "Huimindai" credit approval efficiency improved by 63%, and loan disbursement approval efficiency improved by 75%141 FinTech and Digital Transformation The Group strengthened digital infrastructure, data governance, and AI applications, completing front-to-back integration for financial market businesses and launching an online bulk commodity trade finance platform - The phased integration of front, middle, and back offices for financial market businesses was successfully completed, covering interbank lending, repurchase, and bond businesses143 - Established an investment and financing client carbon emission measurement system, completing the latest round of measurement and for the first time including retail assets like mortgages and auto loans175 - Developed a data asset map and explored building large model-driven data analysis intelligent agents to promote data visualization and intelligent data utilization144 - Launched the "BoCom Shipping and Trade Connect" platform, innovating a fully online bulk commodity trade finance model, providing instant financial support145 - "Proactive Credit Granting" expanded coverage and efficiency, enhancing the online, batch, and credit-based nature of credit products145 Risk Management The Group maintained a "prudent, balanced, compliant, innovative" risk appetite, enhancing its risk governance and digital transformation, resulting in improved asset quality with NPL ratio down to 1.28% and provision coverage ratio up to 209.56% - The Group's overall risk appetite is "prudent, balanced, compliant, and innovative," with various risk limit indicators set146 - Non-performing loan (NPL) balance was RMB 115.036 billion, and the NPL ratio was 1.28%, an increase of RMB 3.359 billion and a decrease of 0.03 percentage points respectively from year-end150 - Provision coverage ratio was 209.56%, an increase of 7.62 percentage points from year-end24 - Accumulated disposal of non-performing loans totaled RMB 37.83 billion, a year-on-year increase of 27.9%, with actual cash recovery of RMB 20.37 billion, a year-on-year increase of 54.3%149 - The average daily Liquidity Coverage Ratio (LCR) for Q2 2025 was 135.38%, and the Net Stable Funding Ratio (NSFR) at the end of Q2 was 113.19%, both meeting regulatory requirements169 - As of the end of the reporting period, the Group's total loans to its largest single customer accounted for 3.77% of the Group's total capital, and total loans to its top ten customers accounted for 18.44% of the Group's total capital162 Risk Management Architecture The Group's risk management architecture features the Board of Directors with ultimate responsibility, supported by a Risk Management and Connected Transactions Control Committee, and a senior management-level comprehensive risk management committee - The Board of Directors bears ultimate responsibility and supreme decision-making authority for risk management, overseeing the Bank's risk profile through the Risk Management and Connected Transactions Control Committee147 - Senior management established a Comprehensive Risk Management and Internal Control Committee, along with two types of business review committees: Loan Review and Risk Asset Review147 - Provincial branches, overseas branches, and subsidiaries have established corresponding Comprehensive Risk Management and Internal Control Committees, following this framework147 Risk Management Tools The Group is advancing digital risk management, building a comprehensive digital system with a robust data foundation, enhancing strategic measurement models, and developing unified model and risk monitoring systems - Continuously advancing digital transformation of risk management, committed to building a full-process, comprehensive digital risk management system148 - Strengthening the supply of measurement models in strategic areas, building a unified model management system, and promoting the construction of a risk monitoring system148 - Exploring application scenarios for artificial intelligence technology to assist risk management, continuously enhancing the effectiveness of risk management148 Credit Risk Management The Group strengthened credit risk management, optimizing asset structure and increasing NPL disposal, resulting in an NPL ratio of 1.28%, a 0.03 percentage point decrease from year-end, with all loans overdue for over 90 days classified as non-performing - As of the end of the reporting period, non-performing loan (NPL) balance was RMB 115.036 billion, and the NPL ratio was 1.28%, an increase of RMB 3.359 billion and a decrease of 0.03 percentage points respectively from year-end150 - Accumulated disposal of non-performing loans totaled RMB 37.83 billion, a year-on-year increase of 27.9%, with actual cash recovery of RMB 20.37 billion, a year-on-year increase of 54.3%149 - Overdue loan balance was RMB 127.102 billion, an increase of RMB 9.004 billion from year-end, with an overdue ratio of 1.41%, an increase of 0.03 percentage points from year-end159 - All loans overdue for more than 90 days were classified as non-performing loans, accounting for 78.82% of total non-performing loans150 Loan Five-Category Classification Distribution as of June 30, 2025 | Category | Amount (RMB million) | Share (%) | | :--- | :--- | :--- | | Normal Loans | 8,740,366 | 97.13 | | Special Mention Loans | 143,097 | 1.59 | | Substandard Loans | 25,388 | 0.28 | | Doubtful Loans | 27,870 | 0.31 | | Loss Loans | 61,778 | 0.69 | | Total Non-Performing Loans | 115,036 | 1.28 | | Total | 8,998,499 | 100.00 | - As of the end of the reporting period, the Group's total loans to its largest single customer accounted for 3.77% of the Group's total capital, and total loans to its top ten customers accounted for 18.44% of the Group's total capital162 Market Risk Management The Group primarily manages interest rate and exchange rate risks, aiming to identify, measure, monitor, control, and report market risks within acceptable limits through various tools, while continuously enhancing its risk management system - The Group's primary market risks are interest rate risk and exchange rate risk164 - The objective of market risk management is to proactively identify, measure, monitor, control, and report market risks, keeping them within an acceptable and reasonable range through limit management, risk hedging, and risk transfer methods164 - The Group applies the standardized approach for market risk capital measurement, while non-bank subsidiaries and the Brazil subsidiary apply the simplified standardized approach during the transition period164 Liquidity Risk Management The Group maintained a robust liquidity risk management framework, with a governance structure involving the Board and senior management, and achieved a Q2 2025 average Liquidity Coverage Ratio of 135.38% and Net Stable Funding Ratio of 113.19%, both exceeding regulatory requirements - The Group's liquidity risk management governance structure includes decision-making bodies (Board of Directors and its special committees, senior management), supervisory bodies (Board of Supervisors, Audit and Supervision Bureau), and executive bodies (various departments)167 - During the reporting period, the Group continuously improved its liquidity risk management system, flexibly adjusting liquidity management strategies and business development structure and pace as appropriate167 Liquidity Ratio Indicators as of June 30, 2025 | Indicator | Standard Value | 2025 Jun 30 (%) | 2024 Dec 31 (%) | | :--- | :--- | :--- | :--- | | Liquidity Ratio | ≥25 | 77.06 | 73.34 | - The average daily Liquidity Coverage Ratio (LCR) for Q2 2025 was 135.38%, the Net Stable Funding Ratio (NSFR) at the end of Q1 was 111.64%, and at the end of Q2 was 113.19%, all meeting regulatory requirements169 Operational Risk Management The Group upheld an "internal control first, compliance-based" philosophy, continuously improving its operational risk management system, enhancing event management, self-assessment, and key indicator tools, and optimizing related systems and outsourcing mechanisms - The Group's operational risk management adheres to the philosophy of "internal control first, compliance-based," continuously improving its operational risk management system170 - Strengthening the standardized use of management tools such as operational risk event management, self-assessment, and key indicators170 - Optimizing operational risk management system functions, improving outsourcing management mechanisms, and strengthening business continuity management170 Compliance and Anti-Money Laundering The Group established a compliance management system aligned with its operations, continuously enhancing risk identification, monitoring, prevention, and resolution capabilities, while deepening anti-money laundering reforms and improving customer due diligence - The Group established a compliance management system commensurate with its operating scale, business scope, and risk level, continuously strengthening its capabilities in compliance risk identification, monitoring, prevention, and resolution171 - Further improved the internal control and compliance management system, strengthening supervision, inspection, and issue rectification171 - Deepened reforms in anti-money laundering systems and mechanisms, enhancing the effectiveness of anti-money laundering customer due diligence and strengthening integrated Group management171 Reputational Risk Management The Group adhered to a "prevention-first, effective disposal, timely restoration, comprehensive coverage" strategy for reputational risk, strengthening full-process management and normalized construction, with the system operating effectively during the period - The Group adheres to a management strategy of "prevention first, effective disposal, timely restoration, and comprehensive coverage," strengthening full-process management and normalized construction172 - Improved and optimized the Group's long-term reputational risk management mechanism, strengthening reputational risk management for overseas institutions172 - During the reporting period, the reputational risk management system operated effectively, and reputational risk was properly controlled172 Cross-Industry, Cross-Border, and Country Risk Management The Group established a comprehensive cross-industry, cross-border, and country risk management system, strengthening overseas institution risk management, enhancing consolidated management, and optimizing country-level asset-liability structures - The Group established a cross-industry and cross-border risk management system characterized by "unified management, clear division of labor, complete tools, IT support, quantified risks, and substantive consolidation"173 - Strengthened risk management for overseas institutions, improved the institutional framework, optimized risk indicator monitoring tools, and enhanced the formulation and drills of various emergency plans173 - Strengthened consolidated management, refined the full lifecycle management of subsidiaries at all levels, and deepened the transmission of Group risk appetite and management measures to subsidiaries173 - Strengthened country risk management, conducted country risk assessments, ratings, and stress tests, guiding operating units to optimize asset-liability structures from a country perspective173 Large Exposure Risk Management The Group diligently implemented regulatory requirements for large exposure risk, advancing management system construction, continuously monitoring exposures, and strictly enforcing limits, with all indicators meeting regulatory standards by period-end - The Group diligently implemented regulatory requirements, promoted the construction of management systems, and continuously monitored large exposure risks174 - Strictly implemented various limit management measures to enhance the Group's ability to prevent systemic and regional risks174 - As of the end of the reporting period, all indicators for the Group's large exposure risks complied with regulatory requirements174 Climate and Environmental Risk Management The Group actively supported "carbon peak and carbon neutrality" goals, integrating climate and environmental risks into its comprehensive risk management, enhancing carbon data management, and advancing climate risk scenario analysis and stress testing - The Group actively supports the "carbon peak and carbon neutrality" goals, promoting the further integration of climate and environmental risks into its comprehensive risk management system175 - Established an investment and financing client carbon emission measurement system, completing the latest round of measurement and for the first time including retail assets like mortgages and auto loans175 - Steadily advanced climate risk scenario analysis and stress testing, deepening research into asset portfolio transformation plans175 Outlook The Group will continue to serve the real economy and maintain financial stability, focusing on the "Five Key Initiatives," strengthening its Shanghai "home-field" advantage, advancing digitalization, optimizing business structure, enhancing client engagement, and effectively controlling risks - The Group will continue to deeply practice the political and people-centric nature of financial work, serving as the main force for the real economy and the ballast for financial stability177 - Future key tasks include: thoroughly implementing the "Five Key Initiatives" to continuously build business characteristics; vigorously consolidating the Shanghai "home-field" advantage; continuously promoting digital construction to empower transformational development177178 - Dynamically optimizing and adjusting business structure, maintaining efforts to serve the real economy, improving quality and efficiency, and promoting coordinated volume-price development and structural optimization of asset-liability businesses178 - Advancing the client base enhancement project, improving client operation and management systems and mechanisms, deepening online-offline integration, and strengthening G-B-C collaborative development179 - Upholding the bottom line and effectively preventing risks, strengthening integrated and penetrative Group management, and effectively controlling risks in key areas such as real estate and local government debt179 Other Disclosures The Group implemented its "Quality Improvement, Efficiency Enhancement, and High Returns" action plan, continuously boosting investor returns through serving the real economy, strategic execution, leveraging Shanghai's advantages, risk control, and stable cash dividends - The Group formulated the "Bank of Communications Valuation Enhancement Plan and 'Quality Improvement, Efficiency Enhancement, and High Returns' Action Plan" to continuously enhance investor returns through high-quality development180 - As of the end of the reporting period, the Group's customer loan balance was RMB 9.00 trillion, a 5.18% increase from year-end180 - Loan balances in the three major regions (Yangtze River Delta, Greater Bay Area, Beijing-Tianjin-Hebei) grew 5.57% from year-end, 0.39 percentage points higher than the Group's average loan growth180 - The Group's main asset quality indicators continued to improve, solidifying its asset quality foundation181 - The Group completed its 2024 interim and annual dividends, maintaining a dividend payout ratio of over 30% of net profit attributable to parent company shareholders for 13 consecutive years182 Corporate Governance The Group continuously enhanced its corporate governance, completing a private placement of A-shares to supplement capital, and maintaining a stable dividend policy for 13 consecutive years - The Group strictly adheres to laws and regulations such as the "Company Law," "Securities Law," and "Commercial Bank Law," continuously enhancing its corporate governance level217 - In June 2025, the Group completed a private placement of 14,101,057,578 A-shares, increasing total share capital from 74,262,726,645 shares to 88,363,784,223 shares185 - The 2025 semi-annual profit distribution plan is a cash dividend of RMB 1.563 per 10 shares (tax inclusive), totaling RMB 13.811 billion, representing 30.0% of the net profit attributable to parent company shareholders for the first half of 2025219 - The Group highly values the continuity and stability of its dividend policy, maintaining a dividend payout ratio of over 30% of net profit attributable to parent company shareholders for 13 consecutive years182 Share Changes and Shareholder Information The Group completed a private placement of 14.101 billion A-shares, increasing total share capital to 88.364 billion shares, which diluted EPS and NAV per share, with the Ministry of Finance remaining the largest shareholder - As of the end of the reporting period, the Bank's total ordinary shares were 88,363,784,223 shares, with A-shares accounting for 60.38% and H-shares for 39.62%183 - In June 2025, the Bank completed a private placement of 14,101,057,578 A-shares, raising net proceeds of approximately RMB 119.941 billion to supplement Common Equity Tier 1 capital185273 - This share change resulted in an increase in the Bank's total share capital and net assets, with a dilutive effect on earnings per share and net asset per share186 - As of the end of the reporting period, the total number of ordinary shareholders was 263,071189 - The Ministry of Finance is the Bank's controlling shareholder, with a shareholding ratio of 35.02%195196 - The Hongkong and Shanghai Banking Corporation Limited is the second largest shareholder, with a shareholding ratio of 16.00%196 - National Council for Social Security Fund is the third largest shareholder, with a shareholding ratio of 13.77%197 Corporate Governance The Group's corporate governance includes dividend distribution, issuance of green, tech innovation, and TLAC non-capital bonds, and redemption of Tier 2 capital bonds, with 95,267 employees and a consistent A-rating for information disclosure - As of the end of the reporting period, the total number of preferred shareholders was 67204 - The 2025 semi-annual profit distribution plan is a cash dividend of RMB 1.563 per 10 shares (tax inclusive), totaling RMB 13.811 billion, representing 30.0% of the net profit attributable to parent company shareholders for the first half of 2025219 - In April 2025, RMB 30 billion in green financial bonds were issued; in May, RMB 20 billion in technology innovation bonds were issued; in June, RMB 40 billion in Total Loss-Absorbing Capacity (TLAC) non-capital bonds were issued215 - In May 2025, RMB 40 billion of 2020 Tier 2 capital bonds were redeemed; in June, RMB 30 billion of 2022 special financial bonds for small and micro enterprise loans matured and were repaid215 - As of the end of the reporting period, the Group had a total of 95,267 employees229 - The Bank has been rated an A-class company for information disclosure by the Shanghai Stock Exchange for eleven consecutive years234 Environmental and Social Responsibility The Group actively promoted green finance, with green loan balances exceeding RMB 870 billion, and fulfilled social responsibilities by resolving 164,400 financial consumer complaints with a 100% resolution rate, while supporting rural revitalization - The Group's "14th Five-Year Plan" designates green as the foundation for all business operations, aiming for green loan balances of no less than RMB 800 billion by the end of the "14th Five-Year Plan" period237239 - As of the end of the reporting period, green loan balances of domestic banking institutions exceeded RMB 870 billion243 - Underwrote RMB 7.291 billion in green bonds and transition bonds243 - BoCom Financial Building won the Gold Award in the "2024 Shanghai Existing Building Green Low-Carbon Renovation Assessment"250 - In the first half, the Bank handled 164,400 financial consumer complaints, with a 100% resolution rate253 - Agricultural loan balances were RMB 761.314 billion, an increase of RMB 17.165 billion from year-end, a 2.31% growth255 Significant Matters The Group reported no material litigation or administrative penalties, disclosed related party loan agreements totaling USD 12.95 billion, and confirmed that RMB 119.941 billion in raised funds were used to supplement Common Equity Tier 1 capital - During the reporting period, the Group had no litigation or arbitration matters with a significant impact on its operations; pending litigation and arbitration involved approximately RMB 1.083 billion257 - During the reporting period, the Bank and its directors, supervisors, and senior management were not subject to any significant administrative penalties or investigations258 - Signed loan agreements with BoCom Management, BoCom Development, and Ronggang United totaling USD 5.85 billion, USD 4.1 billion, and USD 3 billion respectively268 - As of the end of the reporting period, the Bank's loan balance with related natural persons was RMB 116,700, and the total credit card overdraft limit was RMB 8.9559 million265 - Net proceeds of approximately RMB 119.941 billion were used to supplement the Bank's Common Equity Tier 1 capital273 - All commitments made by the Bank's shareholders and other relevant parties during or continuing into the reporting period were strictly fulfilled274 - China Tobacco and Shuangwei Investment participated in the Bank's A-share issuance as strategic investors and signed strategic cooperation agreements with the Bank275 Institutional Directory This section lists the Group's domestic provincial and direct branches, overseas banking institutions across major international financial centers, and key subsidiaries involved in diverse financial services - Domestic provincial and direct branches are categorized by region: Yangtze River Delta, Pearl River Delta, Bohai Rim Region, Central Region, Western Region, and Northeast Region, with specific addresses listed277 - Overseas banking institutions include branches and representative offices in Hong Kong, New York, London, Singapore, Tokyo, Frankfurt, Macau, Ho Chi Minh City, Sydney, Taipei, Luxembourg, Brazil, and other locations278 - Key subsidiaries include BoCom Schroders Fund Management, BoCom International Trust, BoCom Financial Leasing, BoCom Wealth Management, BoComm Life Insurance, BoCom Financial Asset Investment, BoCom International Holdings, and China BoCom Insurance279 Financial Statements and Others This section includes the interim financial review report, unaudited condensed consolidated financial statements, detailed notes, and supplementary financial information, providing a comprehensive view of the Group's financial position and performance - The interim financial information is unaudited, prepared in accordance with International Accounting Standard 34 – Interim Financial Reporting and the disclosure requirements of the Hong Kong Listing Rules284 - The notes to the financial statements provide detailed disclosures on significant accounting policies, financial risk management, detailed income and expense items, asset and liability composition, changes in share capital, related party transactions, and segment information281 - Supplementary financial information includes currency concentration, international claims, overdue and restructured assets, and loan distribution information282 Review Report on Interim Financial Information KPMG's review report on the 2025 interim financial information, conducted under International Review Standard 2410, found no material non-compliance with IAS 34, though it does not constitute an audit opinion - The review was conducted in accordance with International Standard on Review Engagements 2410285 - The scope of the review is less than that of an audit, and therefore no audit opinion is expressed285 - Based on the review, nothing has come to the attention of the reviewers that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 – Interim Financial Reporting286 Unaudited Condensed Consolidated Financial Statements This section presents the Group's unaudited condensed consolidated financial statements for H1 2025, including the income statement, balance sheet, statement of changes in equity, and cash flow statement, providing an overview of financial performance and position Unaudited Condensed Consolidated Income Statement and Other Comprehensive Income (For the six months ended June 30, 2025) | Item | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Net Interest Income | 85,247 | 84,234 | | Net Fee and Commission Income | 20,458 | 21,000 | | Net Operating Income | 133,498 | 132,550 | | Credit Impairment Losses | (32,814) | (33,021) | | Profit Before Tax | 46,910 | 47,678 | | Net Profit for the Period | 46,455 | 45,825 | | Net Profit Attributable to Parent Company Shareholders | 46,016 | 45,287 | Unaudited Condensed Consolidated Statement of Financial Position (As of June 30, 2025) | Item | 2025 Jun 30 (RMB million) | 2024 Dec 31 (RMB million) | | :--- | :--- | :--- | | Total Assets | 15,435,405 | 14,900,717 | | Customer Loans | 8,777,937 | 8,351,131 | | Total Liabilities | 14,130,635 | 13,745,120 | | Customer Deposits | 9,171,358 | 8,800,335 | | Total Equity Attributable to Parent Company Shareholders | 1,293,989 | 1,144,306 | | Share Capital | 88,364 | 74,263 | Unaudited Condensed Consolidated Cash Flow Statement (For the six months ended June 30, 2025) | Item | 2025 (RMB million) | 2024 (RMB million) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 53,479 | (222,442) | | Net Cash Flow from Investing Activities | (102,296) | 98,042 | | Net Cash Flow from Financing Activities | 100,143 | (4,196) | | Net Change in Cash and Cash Equivalents | 52,282 | (129,677) | | Cash and Cash Equivalents at End of Period | 214,232 | 145,784 | Notes to the Unaudited Condensed Consolidated Financial Statements This section provides detailed notes to the unaudited condensed consolidated financial statements, covering accounting policies, financial risk management, income/expense details, balance sheet items, equity changes, dividends, and related party transactions - The principal accounting policies and methods of computation used in these interim condensed consolidated financial statements are consistent with those adopted in the Group's 2024 annual consolidated financial statements304 - The Group's main financial risks include credit risk, liquidity risk, market risk, and operational risk313 - In the first half of 2025, net interest income was RMB 85.247 billion, a year-on-year increase of 1.20%416 - In the first half of 2025, net fee and commission income was RMB 20.458 billion, a year-on-year decrease of 2.58%417 - As of June 30, 2025, total customer loans were RMB 8.998499 trillion, with credit loans accounting for 39.81% and mortgage loans for 30.79%108459 - As of June 30, 2025, total customer deposits were RMB 9.171358 trillion, including corporate demand deposits of RMB 1.869774 trillion and individual time deposits of RMB 2.961890 trillion121495 - As of June 30, 2025, share capital was RMB 88.364 billion, and capital reserve was RMB 217.261 billion, primarily due to the completion of a private placement of 14.101 billion A-shares in June 2025127511513 - In the first half of 2025, dividends declared to ordinary shareholders were RMB 14.630 billion, and interest declared to perpetual bondholders was RMB 1.685 billion537539 Unaudited Supplementary Financial Information This section provides unaudited supplementary financial information for H1 2025, including currency concentration, international claims, overdue and restructured assets, and loan distribution, detailing the Group's risk exposure and asset quality - As of June 30, 2025, the Group's net (short)/long positions were (USD 127,125 million), HKD 89,554 million, and (6,322 million other currencies), totaling (43,893 million)599 - As of June 30, 2025, total international claims were RMB 1.541238 trillion, with the Asia-Pacific region accounting for the largest share at RMB 1.434962 trillion603 - As of June 30, 2025, overdue customer loan balance was RMB 127.102 billion, with an overdue ratio of 1.41%604 - As of June 30, 2025, total restructured loans were RMB 74.994 billion, of which restructured loans overdue for more than three months amounted to RMB 11.267 billion605 - As of June 30, 2025, total impaired customer loans were RMB 115.018 billion, including corporate loans of RMB 77.180 billion and personal loans of RMB 37.838 billion606611