#1⑤ 中国銀行 BANK OF CHINA 2022 Annual Results Release Sustain Steady and Long-term Growth in Building a First-class Global Banking Group March 31, 2023 ☆ DOD DOD ODE 00000 00000000#2⑤ 中国银行 BANK OF CHINA This presentation and subsequent discussions may contain forward- looking statements that involve risks and uncertainties. These statements generally use the words "believe", "expect", "anticipate", "estimate", "plan", "forecast", "target", "may", "will" and other forward- looking terms. You should not place undue reliance on such forward- looking statements, which speak only as at the date of this presentation. These forward-looking statements are based on our own information and information from other sources that we deem as reliable. They relate to future events or the future financial, business or other performance of the Bank and are subject to a number of uncertainties that could cause actual results to differ materially. 2#3| = || ⑥ 中国银行 BANK OF CHINA Annual Operating Results Progress in Plan Implementation III Outlook for the Next Stage 3#4Earning abilities enhanced steadily Operating income +2.22% PPOP +2.26% Net interest income 2022 619,139 2021 605,717 RMB million 2022 387,943 2021 379,362 RMB million Profit attributable to Profit after tax +4.47% shareholders of the Bank 2022 237,504 2021 227,339 RMB million 2022 227,439 2021 216,559 RMB million +5.02% ☑+8.36% © General and administrative expenses +1.00% 4#5Operating efficiency maitained robust Net interest margin 1.76% +1bp compared with the prior year Interest rate on newly granted domestic RMB loans decreased by 53 bps yoy, fully supporting the development of real economy Interest payment ratio of domestic RMB customer deposits decreased by 2 bps yoy, with a balanced development in deposit scale and price NIM of domestic foreign currencies and overseas institutions rose by 55 bps and 13 bps yoy respectively, as seized the opportunity of interest rate hikes of foreign currencies Fee income RMB 72,248 million 11.67% of operating income Consultancy and advisory fees totaled RMB5,651 million, up 23.49% yoy Custodian and other fiduciary service fees totaled RMB6,844 million, up 6.94% yoy Spread income from foreign exchange business totaled RMB5,788 million, up 4.86% yoy Cost-to-income ratio 27.88% -0.29 ppt compared with the prior year Continuously optimised the structure of expenditures and allocated more resources to key products, areas and regions 2022 2021 IT investment rose by 15.70% yoy, accounting for 3.49% of operating income 2020 2020 2021 2022 8% 8% 26% 7% 6% 14% 13% 18% I Agency commissions Bank card fees Settlement and clearing fees ■Credit commitment fees Consultancy and advisory fees Spread income from foreign exchange business Custodian and other fiduciary service fees Other IT investment 21,541 18,618 16,707 RMB million#6Assets & liabilities optimised continuously Assets +8.20% 2022 28,913.9 2021 26,722.4 RMB billion Liabilities +8.10% 2022 26,346.3 2021 24,371.9 RMB billion Loans +11.72% 2022 17,554.3 2021 15,712.6 RMB billion Deposits +11.35% 2022 20,201.8 2021 18,142.9 Increment reached a record high Domestic RMB loans increased by RMB1.58 trillion, up 12.50% yoy Domestic RMB deposits increased by RMB1.73 trillion, up 12.54% yoy Structure further optimised Proportion of net loans to total assets went up by 1.86 ppts to 59.20% Proportion of avergage banlance of domestic RMB medium and long-term loans to total reached 74.45% Proportion of deposits to total liabilities went up by 2.24 ppts to 76.68% Proportion of high-cost deposits decresed by 2 ppt Maintained a market leading position regarding domestic foreign currency deposits and loans RMB billion 6#7Development foundation further consolidated Corporate customers Active customers up 9.1% yoy Retail customers Personal customers nearly 510 million M ¥ Technology-based enterprises with credit granted approached 50 thousand Credit customers under the "specialized, refined, featured and innovative" service model exceeded 18 thousand Provided trade settlement services for nearly half of the enterprises with actual records of importing or exporting via customs Maintained correspondent relationships with nearly 1,200 institutions worldwide and has opened 1,438 cross-border RMB clearing accounts for correspondent banks from 112 countries and regions, securing a leading position among domestic peers Custodian service for Qualified Foreign Investors (QFI) and agency service for overseas central banks and other sovereign institutions held industry leading positions in terms of both customer base and business scale Online → customers Personal customers Monthly active mobile banking customers 76.20 million up 7.26% yoy Market share of personal customers increased AUM of personal customers approached RMB13 trillion Active customers increased by 17.91 million, up 5.33% yoy Growth rate of middle and high-end customer exceeded 14%, reached a record high Private banking customers increased by 8.41% to 159.6 thousand, and PB AUM incresed by 11.81% to RMB2.42 trillion Number of issued credit cards reached 140 million, while the activity rate of new customers reached 80.7%, up 13.9 ppts yoy Corporate customers Online banking customers reached 7,230.1 thousand up 11.55% yoy Transaction customers up 9.80% yoy Mobile banking transaction customers up 24.11% yoy Note: Personal customers, active customers, and middle and high-end customer all refer to customers of domestic branches 7#8Risk resistance capacity enhanced Major risk indicators NPL ratio 1.32% Overdue loan ratio 1.10% Special-mention loan ratio 1.35% Ratio of allowance for loan impairment losses to NPLs 188.73% ⑥ Asset quality in key sectors remained healthy and stable Loan balance NPL ratio (Unit: RMB million) at the end of 2022 Change compared with the end of 2021(ppt) Domestic corporate loans Including: 8,818,584 1.84% -0.36 Commerce & services 1,974,498 1.70% -0.19 Manufacturing 1,808,808 1.89% -1.68 Transportation, warehousing and postal services 1,744,422 0.63% -0.51 Made solid progress in risk resolution Domestic and overseas institutions resolved a total of RMB132.4 billion NPAs on/off B/S Expanded disposal channels, making steady progress in pilot programs for single corporate NPA transfers and batch individual NPA transfers Launched three batches of non-performing bank card assets- backed securities Capital adequacy ratio reached a record high CAR 17.52% +99bps Tier 1 CAR 14.11% +79bps Core Tier 1 CAR 11.84% +54bps ****#9⑥ 中国银行 BANK OF CHINA Annual Operating Results || Progress in Plan Implementation III Outlook for the Next Stage 9#10Contributed to the stability of the economy ⑧Provided financing support for key areas and weak links Leveraged a variety of monetary policy instruments, granted more special purpose loans to projects of carbon emission reduction, technological innovation, inclusive elderly care, equipment renewal, and supported development and policy-backed financial instrument Mainly granted loans to sectors such as inclusive finance, green finance, "new infrastructure, new urbanization initiatives and major projects", high-end manufacturing industry, people's livelihood and consumption, digital economy and ect. Actively answered the call for "ensuring delivery of pre-sold homes and stabilizing people's livelihood", as real estate loans increased by 12.61% and newly granted mortgage loans reached RMB562.7 billion Balance of long and mid-term manufacturing loans increased by 39.33%, and its proportion to the manufacturing industry increased by 6.23 ppts yoy. Loans to the high-tech manufacturing industry increased by 30.43%, and its proportion increased by 2.31 ppts yoy Actively supported the healthy development of private enterprises, as the loan balance increased by 19.96%. Proportion of newly granted loans to private enterprises increased by 1.72 ppts yoy Enhanced financial supply to stablise foreign trade Annual international settlement volume of domestic institutions reached USD3.4 trillion, and market share of international settlement business ranked first among peers The amount of directly provided import and export trade finance increase by 15% yoy Maintained the leading position in the industry in terms of cross- border guarantee business Actively implemented the national strategy for economic stabilization Formulated action plans to support the real economy Domestic RMB loans increased by 12.50% ③Made great effort to support the bailout of distressed entities Launched special loans and rolled out an "Inclusive Loan for Employment Promotion" action plan and the "Inclusive Employment Loan" Supported the bailout of industires such as catering, retail, tourism, transportation & logistics, and actively implemented the policy of deferring principal and interest repayment on loans Supported the supply chains to facilitate smooth freight and logistics by preparing and releasing the "BOC Smart Chain Cold Chain Logistics" branded service solution Maintained the smooth operation of local and foreign currency remittance and other basic financial services during the Covid pandemic Provided financing services via various channels Total amount of of bond underwriting in China interbank market reached RMB1.38 trillion, and that of the Panda bond underwriting and offshore China bond underwriting reached RMB21.191 billion and USD4.437 billion respectively Total assets of the group's custody business exceeded RMB16 trillion, as the market share in terms of scale and income both increased 10#11Tech- nology Green Inclu- sive Cross- border Con- sumer Wealth Supply chain County- level Made all-out efforts in 8 priority areas Technology finance Stepped up comprehensive support Comprehensive support for technology-based enterprises RMB 1.45 trillion credit support exceeded RMB1 trillion Loans to strategic emerging industries up RMB 600.5 billion ↑115% Outlets offering technology finance services Credit customers 184 nearly 50 thousand Improved product and service system Innovated quantitative assessmenet tools for technology-based enterprises Optimised business models for credit granting, improved the quality and efficiency of business approval Enriched featured product matrix, covering the entire life cycle of the enterprises Extended RMB345.0 billion of credit facilities to over 18 thousand "specialised, refined, featured and innovative" enterprises Continued to deepen cooperation with government entities Issue the Action Plan through "One Mainstay, Two Engines" of Technology Finance, meeting the financial service demands of high- tech zones and technology innovation enterprises across the country Establish a list sharing and refined management mechanism for "specialised, refined, featured and innovative" enterprises Actively expanded cooperative relationships with various scientific research institutions Supported science popularization for all Note: Technology-based enterprises refer to national high-tech enterprises and technology-based small and medium-sized enterprises 11#12Tech- nology Inclu- Cross- Green sive border Made all-out efforts in 8 Priority Areas Green finance Built the "BOC Green+” global brand Con- Wealth sumer Supply chain County- level Domestic green credit balance reached RMB1.98 trillion, up 41.08% yoy Actively participated in benchmark green projects with international influence Issued the world's first green bond based on the Common Ground Taxonomy for Sustainable Finance (Updated Version), as well as the first USD-denominated biodiversity themed green bond among the global financial institutions Green assets under custody reached RMB55.0 billion Green bond investment -Ranked 1st Green bond underwriting Ranked 1st - Green bond issuance - Ranked 1st Ranked 1st among Chinese banks on the Bloomberg Global Green Loans, Sustainability- Linked Loans and Global Offshore Green Bonds lists Actively participated in global green governance Engaged in the framework review of PRB and the preparation of China's disclosure guidelines Became the only Chinese bank in the first group of banks that joined the IFF Green Finance Working Group Became the Vice Chair of the China Council of the Sustainable Markets Initiative Participated in the formulation of standards related to the regulation of green finance Ranked 1st on NAFMII's list of investors with green bonds for 2022 Underwrote domestic green bonds for RMB259.5 billion Underwrote overseas green bonds for USD29.0 billion Scale of domestic and overseas issuance was equivalent to RMB87.7 billion Five green finance categories 35 products and services Continuously promoted green, low-carbon operation Became the first major state-owned bank to complete the operational emissions calculation work, covering its 11,000 branches in 62 countries and regions Provided carbon-neutral financial services to the Beijing 2022 Olympic and Paralympic Winter Games Enhanced customers ESG risk management SUSTAINABLE FINANCE GLOBAL Sustainable Financing in China AWARDS 2021 Asia-Pacific Outstanding Leadership in Transformation/Sustainable Related Loans, Outstanding Leadership in ESG Loans, Outstanding Leadership in Sustainable Project Financial Outstanding Leadership in ESG-related Loans THE Asset # 12 awards, including Best Issuer for Sustainable Finance, Best Sustainable Bonds, Best Carbon Neutral Green Bond NANCE 國際金融輪增 INTERNATIONAL FINANCE FORUM Global Green Finance Award - Innovation Award GIP Green Investment Best Progress Award Principles ASIAMONEY China's Best Bank for ESG Published the Management Policy for Environmental (Climate), Social, and Governance Risks Associated with Customers, completed the formulation of basic policies for single risks, and enhanced the full-process management of credit and investment 12#13Made all-out efforts in 8 Priority Areas Inclusive finance ⑥Improved service quality and efficiency Layout and scale of Tech- nology Inclu- Cross- Con- Green Wealth sive border sumer Supply chain County- level First-time borrowers * Balance RMB 1,228.3 billion 39.34% 120.87% Proportion of unsecured loans 146.1 thousand 0.71 ppt 3.81% 15 bps loans structure opti- mised continiously Proportion of medium and long term loans Proportion of accumutively renewed loans 0.40 ppt 0.32 ppt Customers 750 thousand Average interest inclusive finance improved A rate of newly granted loans 惠如愿 普惠金融 FINANCE INCLUSIVE > Accelerated digital transformation of inclusive finance Kept improving online inclusive finance product system, launched 17 products, and proportion of newly granted loans processed online exceeded 62% Launched the "Inclusive Loan" APP, provided customers with comprehensive online services including financing application, business information and business opportunities matchmaking Upgraded and launched "I-SMART - BOC Digital Inclusive Financial Services +", and improved inclusive finance service efficiency Deepened services for key customer groups Endeavoured to help ease enterprises' burdens, implemented a "loan assistance programme for SMES", and channelled more financial resources to support their development Provided service for innovative high-tech enterprises, released 3 terms of "Intellectual Property Pledge Financing Index", with both banlance and accounts of intellectual property finance maintaining leading position among peers Focused on stabilising foreign investment and foreign trade, launched the "Micro and Small Foreign Trade Services" business solutions, and helped addressing pain points and difficulties of foreign trade enterprises Innovated online products, served the individually-owned business and SMEs, increment of personal business loans exceeded one hundred billion Launched the "Benefit for Common Prosperity" service plan, granted more than ten billion personal business loans to the new citizens Served high-standard opening up, deepened cross-border matchmaking services, hosted the trade and investment matchmaking conference of CIIE for five consecutive years, attracting about 1,200 enterprises from 40 countries and regions in 2022 which reached cooperation intentions valuing more than USD6 billion Market influence enhanced steadily "Inclusive Loan for Intellectual Property" product, "Inclusive Loan for Employment Promotion" action plan, "Inclusive Loan for Low-Carbon Development” and cases of serving "specialised, refined, featured and innovative" enterprises were selected into the collection of typical cases of China Banking Association Relative cases were awarded for prizes as "specialised, refined, featured and innovative" and "New citizens" in the 5th China Digital Inclusive Finance Conference, "Innovation China" + 13#14Tech- Inclu- Cross- Con- Made all-out efforts in 8 Priority Areas Green Wealth nology sive border sumer Supply chain County- level Cross-border finance > Consolidated characteristic advantages Maintained the first position in the industry regarding international settlement, cross-border RMB business, foreign currency exchange and cross-border custody International settlement volume of the Group reached USD7.7 trillion International settlement volume of domestic institutions reached USD3.4 trillion Volume of cross-border RMB settlement of the Group reached RMB31.1 trillion, up 26.10% yoy Volume of cross-border RMB settlement of the domestic institutions reached RMB10.4 trillion, up 23.61% yoy Volume of cross-border RMB clearing of the Group reached RMB741.3 trillion, up 17.27% yoy Market share of Cross-border Wealth Management Connect contracted customers exceeded 60%, and the market share of cross- border fund transfer exceeded 50% Followed up with over 900 corporate credit projects in countries along the Belt and Road accumulatively, and granted a variety of credit facilities surpassing USD269.0 billion to countries along the route accumulatively Enhanced financial services for ensuring stable foreign trade Issued the BOC Action Plan for Supporting High-quality Development of Foreign Trade and Making Cross-cyclical Adjustments to Ensure Stable Foreign Trade Continued to provide high-quality services for CIIE, CIFTIS, Canton Fair, CICPE and other national trade fairs Held 150 "100 Activities for 10,000 Enterprises" campaigns to support the high-quality development of trade, and directly served more than 33 thousand foreign trade enterprises ③Led service innovation • Enhanced the innovation of products for new trade patterns, and settled more than RMB280.0 billion of cross-border funds for trade customers in terms of cross-border e-commerce and market procurement, representing an increase of 85% yoy Launched "BOC Cross-border Remittance Express", provided automatic crediting service in seconds for cross-border SWIFT inward remittance, with a total amount of nearly UBD100 billion Became the first and only bank to launch a self-service machine that supported the conversion of foreign currencies to e-CNY 14#15Made all-out efforts in 8 Priority Areas Consumer finance • Actively implemented relevant policies and measures for real estate industry, seized market opportunities, and promoted the stable and healthy development for real estate industry ⚫ Closely followed the strategy of expanding domestic demand, focused on housing improvements, new energy vehicles, daily household consumption and other demands, and gave full play to provide finance support in promoting consumption CreditCard Bank: 0000 0000 0000 0000 Tech- nology Green Inclu- sive Cross- border Con- sumer Wealth Supply chain County- level Promoted the synergy among consumer credit, card installment business and loan granting by BOC Consumer Finance, continuously improved financing support for household consumption and served the goal of expanding domestic demand and promoting consumption Supported COVID-19 containment, and provided a package of deferred repayment tools for those affected by the pandemic Promoted the coordinated development of government-sponsored student loans at the origins of students and schools, and implemented the policy on the interest-free and deferred repayment of loans for students Enhanced the agriculture-related financial services and the financial services for the new citizens, as well as the research and innovation of products for rural customers and young customers Non-housing consumer loans increased by 50.7%, and personal loans were transformed online with a ratio of 82.63% Auto installment loans granted via credit card stood at RMB115.4 billion, an increase of 7.2% yoy, with the annual loan amount, the increment and growth rate of outstanding accounts receivable all leading the market Loans granted by BOC Consumer Finance expanded by more than 60% 00 15 L#16Made all-out efforts in 8 Priority Areas Wealth finance Tech- nology Green Inclu- sive Cross- border Con- sumer Wealth Supply chain County- level Customer volume increased and customer quality Asset scale grew steadily improved Continuously consolidated brand advantages 中國銀行 私人银行 BANK OF CHINA CBN--"Best Bank in Wealth Management" PRIVATE BANKING China Securities Journal--"Golden Bull Award for Banking Wealth Management Sales" Global Finance--"Winner of the Stars of China Awards - Best Private Bank" Asiamoney--"China Private Banking Award - Best State-owned Bank" Asian Private Banker--"Best Private Bank in China Services for Business Entrepreneurs" Personal customers nearly 510 million of which: mid and high-end customers exceeded 14% Private banking customers 159.6 thousand up 8.41% yoy Personal customers' AUM nearly RMB13 trillion of which: domestic investment financial assets market share increased Private banking customers' AUM RMB2.42 trillion up 11.81% yoy Improved the quality of inclusive services: enriched product varieties, increased the supply of inclusive products, implemented the favorable rate policy, and ranked among top regarding the number of personal pension funds and insurance products distributed by banks as an agency as well as the number of wealth management companies in cooperation with banks Upgraded professional capabilities: enhanced the sales of asset allocation products, provided more intelligent solutions for customers in terms of asset analysis and improvement, and realised risks mitigation and investment profit growth for customers Improved customer companion: accelerated transformation from front-end transactions to full-process companion, expanded the online operation ecosystem introduced a total of 31 external institutions and published more than 10,000 news & information articles throughout the year Consolidated characteristic advantages: launched an innovative service of "Entrepreneur Office", fostered resources synergy of Group's commercial banking and investment banking business to support for enterprises all-round development, and made progress in building its Asia-Pacific private banking platform 16#17Made all-out efforts in 8 Priority Areas Tech- nology Green Inclu- sive Cross- Con- Wealth border Supply chain County- level sumer Supply chain finance එ Assisted in safeguarding the stability and security of supply chains, and reached a new high in supply chain finance credit granted Provided liquidity support for core supply chain enterprises RMB2.46 trillion 14% Provided credit support for upstream and downstream enterprises of supply chains RMB2.23 trillion 31% Online finance grew significantly in which: online bill finance increased by 35% yoy, and online factoring finance increased by 67% yoy Enhanced technology empowerment and further upgraded the experience of digital services Launched the new online finance product "BOC Smart Chain - Rong Yi Xin", provided unsecured factoring finance online services throughout the whole process for upstream suppliers at different levels in the industrial chain Launced Rong Yi Da, domestic factoring, export factoring and other new online finance services, supported online interaction via multiple channels and platforms, and facilitated a digital, scenario- based and intelligent user experience of supply chain finance for customers Launched new sub-chains of "BOC Smart Chain" to facilitate industrial transformation and upgrading Launched four new sub- chains -- BOC Cold-chain Logistics Chain, BOC Green Chain, BOC Aviation Chain and BOC Home Appliance Chain Facilitated the shortcoming improvement and advantage fortification of the modern industrial system 17#18Made all-out efforts in 8 Priority Areas County-level finance © County-level finance developed steadily Deposits of county-level outlets Tech- nology Green Inclu- sive Cross- border Con- sumer Supply Wealth chain County- level RMB3,258.0 billion 15% RMB2,757.8 billion 15% Loan balance of county-level outlets Agriculture-related loans balance RMB2,074.8 billion 20% Inclusive agriculture- RMB260.3 billion 38% related loans balance Loan balance of outlets in the 160 key counties to receive assistance in pursuing rural revitalisation 17% No. of finance services covered counties to receive assistance in pursuing rural revitalisation 157 with coverage of 98% Ⓒ Service channels gradually improved Institutions covered 1,178 counties, county-level institution coverage was over 63% Opened 28 new county-level institutions, of which 3 were in the counties to receive assistance in pursuing rural revitalisation, and built more than 550 featured outlets MAU of county-level mobile banking increased rapidly, with the "Beautiful Countryside" version launched Accelerated innovation of products and services Focused on key areas such as national food security, launched "Seed Industry Loan" and "Agricultural Machinery Loan" Supported the development of creditworthy villages under the guidance of CPC Party building, and launched online products with regional features such as "Farmer Supporter Quick Loan" Leveraging Group's advantages of the "One Mainstay, Two Engines" strategy Market influence enhanced steadily FinTech-empowered Rural Revitalization Project won the 2022 "Innovation China" Innovation Achievement Award Case of high-standard farmland was selected as a typical case of China Banking Association BOC Fullerton Community Bank gave full play to leverage advantages as the largest village bank and adhered to "focusing on county area development, and supporting farmers and small-sized enterprises" Controlled 134 village banks with 189 sub-branches 18 Outstanding loans were nearly RMB73.4 billion, which were granted to over 440 thousand customers with average amount less than RMB170 thousand#19Effectively coordinated "One Mainstay, Two Engines" © Overseas commercial banking Soundly recovered 12 255 Asset & profit contribution of overseas institutions maintaining leading position among Chinese peers Further optimised the global network, with BOC (Macau) Limited officially opened for business vising and Optimized strategical categorization of overseas operations, revising and adapting market-by-market plans as necessary to reflect the latest trends and developments © Integrated operations Developed in a standardized and orderly way Properly addressed changes in external situation with the capabilities of business development and Group-wide synergy further heightened Completed the establishment of the IPU headquarters in the EU Domestic commercial banking Steadily advanced the regional harmonious development primary role further highlighted Overseas institutions achieved safe and stable operation Contribution of overseas commercial banking institutions to the Group rebounded The profit contribution of BOCHK rose The income of Macau Branch and Taipei Branch reached a record high in recent years ➤ The income of New York Branch, London Branch and Singapore Branch grew well Set up comprehensive operation and synergy offices in 11 key national strategic regions Improved management mechanism for integrated operations Steadily grew in business scale, and enhanced market competitiveness Bank of China Consumer Finance's loan balance increased by 18% BOCL's asset lease balance increased by 26% BOC-Samsung Life's new policy premiums for risk protection and long-term savings business increased by 70% yoy BOC Wealth Management's share of the market increased BOC Asset Investment continued to increase the investment in green and technology industries 19#20Solidly promoted digital transformation Number of employees in the IT line 13,318 Proportion to the total number of the Group's employees 4.35% Built 10 teams of leading digital talents, talents for digital architecture design, talents for digital operation and IT talents, and registered more than 5,500 talents reserves for the first batch IT investment RMB21.541 billion Proportion to operating income 3.49% Patent applications submitted over 5,000 Newly licensed patents 611 6 technological achievements won PBOC Financial Technology Development Awards Foundation for digital transformation Iteratively updated the OASIS Project Continuously enriched digital procedures, data and mechanism support Data governance based on "Three Horizontals, Two Verticals": Sorted out 2.80 million data items Developed 220 thouands data dictionary items Made planning--Steadily implemented plans for all aspects Strategic Capability Map, enterprise-level business architecture and enterprise-level IT architecture Consolidated foundation--Continued to consolidate IT empowerment Oasis 绿洲工程 Stable operation of both multi-center IT infrastructure distributed in four places and distributed IT infrastructure Full-stack application of domestic software and hardware Independentce and controllability of key and core technologies Put the "3+N" technology platform system into operation to achieve the sharing and reuse of OCR, RPA and other enterprise-level technological capabilities Strengthened middle office--Continuously developed enterprise-level capabilities Integrated and unified basic public information, as the enterprise-level capabilities for product factories, contract management and services for intensive operation began to show Driving force--Furthered progress in pilot areas Launched a series of basic products such as payment & settlement, debit cards and credit cards, synchronously upgraded customer services, improved operation management, and optimized business procedure © Empowerment of digital transformation Provided more stable and robust support for business operation Established the Group-wide cyber security center and cyber attack and defense laboratory Provided effective technological support regarding financial services for Olympic and Paralympic Winter Games, CIIE and CICPE Provided effective technological support for business continuity Promoted teleworking Digital financial services became more convenient Released the mobile banking 8.0 version Upgraded services for private banking zone, set service scenarios of new citizens, payroll service and pension participants, and launched the "Beautiful Countryside" version of the mobile banking Corporate online banking: The proportion of corporate online transactions via mobile banking channels continued to increase The open ecosystem of scenario-based finance reached over 230 million users White paper of scenario-based financial services version 2.0, "digital CIIE" "smart Hainan", and BOC e-CNY Featured e-CNY in Winter Olympics scenarios, built the largest network of merchants using e-wallet services in China BOC Corporate E-manager, BOC Corporate Cloud Direct Connection Delivered more than 900 government affair services at smart counters © GTB |教育 银发 98 跨境 体育 20 20#21Continued to improve the capability of comprehensive risk management Credit risk management Improve the foresight and practicality of industry policies, and continuously optimise its credit structure Asset quality remained stable with the NPL balance and the special-mention loan balance still at low levels Achieved breakthroughs in the collection and disposal of some key non-performing projects and further improved the capacity to mitigate risks Liquidity risk management Made proper forward-looking arrangement of fund position, and optimized the scale, term and currency structure of liquidity reserves Successfully addressed the impact of unexpected interest rate hikes and balance sheet reduction by the US Federal Reserve, etc. All major risk indicators of the Group were in compliance with regulatory requirements Risk governance capacity - Standardised the operation mechanism of the Risk Management and Internal Control Committee Core capacity building - Accelerated the intelligent risk control construction and the digital transformation of risk management Continued to deepen the reform of comprehensive risk management Closed-loop research, prediction and investigation - Enforced management over the cycle of "risk analysis, risk identification, stress testing, action plans, risk response, and post evaluation" Internal control & compliance management Continuously strengthened the internal control case prevention, launched specific governance campaigns for high-risk fields regarding case prevention, and facilitated the fostering of a strict governance atmosphere Further improved the refined management of AML and sanction compliance, and solidly deepened the development of a compliance culture Market risk management Properly coped with complicated situations, actively conducted situation research and analysis Implemented three sessions of debenture investigation throughout the year to enhance the management and control of investment risk Conducted emergency drills for market risk, solidly prepared response and underpinning plans, and further improved the emergency system and contingency capability IT risk management Established an enterprise-level cybersecurity operation center to effectively handle external threats Participated in a national cybersecurity drill and ranked among the top Put an enterprise-level smart operation & maintenance platform into operation, which maintained the availability ratio of business services in information systems at a high level The continuity of business withstood the test of multiple rounds of outbreaks of COVID-19 21#22⑥ 中国银行 BANK OF CHINA Annual Operating Results || Progress in Plan Implementation III Outlook for the Next Stage 22 22#23Outlook Actively implement national strategies and improve the quality and efficiency of services for the real economy Seize strategic opportunities and fortify advantages in globalized and integrated operations Deepen integration of business and technology and continue to enhance the efficiency of operation services Reinforce comprehensive risk management and consolidate the bottom line of security for development 23 23