#1© 中國銀行 BEIJING 2022 BANK OF CHINA 北京2022年冬奥会官方合作伙伴 Official Partner of the Olympic Winter Games Beijing 2022 Forging Ahead with the Goal of Building a World-class Bank in the New Era 2019 Annual Results March 27th, 2020#2Forward-looking Statement Disclaimer This presentation and subsequent discussions may contain forward-looking statements that involve risks and uncertainties. Generally forward-looking terminologies, such as believe, expect, anticipate, estimate, plan, project, target, may and will are used in forward-looking statements. You should not place undue reliance on such forward-looking statements, which reflect our belief only as of the date of this presentation. These forward-looking statements are based on our own information and on information from other sources which we believe to be reliable. They relate to future events or our future financial, business or other performance and are subject to a number of factors and uncertainties that may cause our actual results to differ materially.#3Agenda 01 2019 Operating Results 02 20 03 Progress in Strategy Implementation Key Tasks for 2020 2#4RMB billion RMB billion Operating business delivered solid progress. Profit after-tax grew 4.91% 201.89 Profit attributable to equity holders of the Bank grew 4.06% 192.44 2018 Operating income grew 9.17% 2019 503.81 550.01 2018 2019 RMB billion 180.09 187.41 2018 2019 Pre-provision operating profit grew 7.62% 351.74 RMB billion 326.83 2018 2019 3#5④ Core financial indicators improved steadily Net interest margin maintained stable trend Fee income increased steadily 1.84% 1.84% 1.83% 1.82% RMB billion 87.2 grew 2.76% 89.6 1Q2019 1H2019 1-9M2019 2019 Cost to income ratio declined modestly down 0.09 ppt 2018 Note: Net fee and commission income 2019 Capital adequacy enhanced robustly up 0.62 ppt 28.09% 28.00% 2018 2019 Note: Cost to income ratio is calculated under domestic regulations 14.97% 2018 Note: Capital adequacy ratio 15.59% 2019 4#6> Asset structure continuously optimized Assets grew prudently grew 7.06% Proportion of loans increased up 1.82 ppts 55.97% 54.15% RMB billion 21,267.3 2018 22,769.7 2019 RMB billion 11,819.3 grew 10.57% 13,068.8 2018 2019 Proportion of bond investment increased RMB billion 23.19% 4,931.4 up 0.25 ppt 23.44% grew 8.22% 5,337.0 Loans, gross Loans, net as % of total assets Loan structure optimized Increased credit support for infrastructure, advanced manufacturing, modern services, technological innovation enterprises, green credit, consumer finance, etc. Proportion of loans granted to overcapacity industries and coal industry decreased ◆ Proportion of medium- and long-term loans increased 2018 2019 Bond Investment % of total assets 5#7Liability development continuously promoted Liabilities grew steadily grew 6.40% Deposits increased soundly grew 6.28% RMB billion 19,541.9 2018 20,793.0 2019 Customer base solidified firmly RMB billion 14,883.6 2018 15,817.5 2019 Funding costs were controlled effectively Corporate Personal Number of effective 2.00% 1.98% 1.96% 1.93% Number of customers ↑16.1% 18.7% customers 1.85% 1.82% 1.81% 1.80% RMB corporate bank Number of customers of 1.78% ↑13.4% ↑7.6% settlement accounts payroll agency service Number of cash ↑12.2% management customers Number of BOC group private banking customers 1.63% ↑17.5% -Average interest rate of interest-bearing liabilities Average interest rate of deposits Note: domestic data except BOC group private banking customers 2018 1Q2019 1H2019 1-9M2019 2019 6#8> Asset quality remained stable NPL ratio declined down 0.05 ppt Special Mention loan balance & ratio both declined down 0.68 ppt 1.42% 1.40% 1.37% 2018 1H2019 2019 Overdue loan balance & ratio both declined down 0.62 ppt RMB billion 1.87% 1.42% 220.0 178.6 2018 Overdue loans 1H2019 RBM billion 2.90% 2.73% 2.22% 342.4 342.2 289.3 2018 1H2019 2019 SML ratio Special-mention loans Credit risk indicators kept positive trend 1.25% ◆ Scissors difference between overdue loans and NPLs remarkably shrank to RMB -15.6 billion Proportion of ≥90 days-overdue loans to NPLs shrank to 56.0%, down 25 ppts from the prior year-end ◆ NPL coverage ratio increased to 182.86%, up 0.89 ppt from the prior year-end 162.6 2019 Overdue loan ratio 7#9Market position continued to enhance S&P Global MOODY'S Ratings INVESTORS SERVICE Fitch Ratings S&P upgraded the Bank's stand-alone credit profile (SACP) and preference share rating Fitch upgraded the Bank's short-term Issuer Default Rating (IDR) S&P, Moody's and Fitch all affirmed the highest rating level among comparable Chinese peers Ranked 4th in Top 1,000 World Banks by The Banker Ranked 8th in Global 2000 by Forbes, up 1 notch over the previous year World's Best Bank in the Emerging markets by Euromoney The Banker Forbes 2019 GLOBAL 2000 WORLD'S LARGEST PUBLIC COMPANIES EUROMONEY Served society with financial capacities Poverty alleviation Continued to carry out targeted poverty alleviation, focused on poverty alleviation through industrial development, enriched the models of poverty alleviation through financial services, granted RMB117.3 billion poverty alleviation loans, purchased and facilitated the sales of RMB180 million worth of agricultural products from poverty-stricken regions, and helped to eliminated poverty in the four impoverished counties of north Xianyang, Shaanxi ◆ Corporate culture and consumer protection Set up the Corporate Culture and Consumer Protection Committee under the Board of Directors, which is responsible for the corporate culture fostering, consumer rights protection, and ESG (Environmental, Social and Governance) related affairs, etc. China International Import Expo (CIIE) As the sole strategic partner of the second CIIE, deeply participated in exhibitor and business attraction, actively promoted supply-demand matchmaking, successfully held themed activities and provided comprehensive financial services ◆ Beijing 2022 Olympic and Paralympic Winter Games As the official banking partner of Beijing 2022 Olympic and Paralympic Winter Games, spared no effort to deliver financial services for the event, supported the development of winter sports industry, intensified FinTech innovation to build up a high-tech-based Olympics, carried out online and offline publicity campaigns and encouraged 300 million people to embrace winter sports 8#10Agenda 01 2019 Operating Results 02 Progress in Strategy Implementation 03 Key Tasks for 2020 9#11Launched in-depth reform on all fronts 2019 Group Reform Made all-out efforts th Achieved breakthroughs 25 major reform projects 86 specific tasks Stimulate New Vitality Built the "Strong Headquarter" Deepened the reform of human resources management Reformed the organizational structure of the personal banking line • Foster New Momentum Strengthened strategic layout in key regions Accelerated scenario ecosystem building Launched business integration of overseas institutions Established BOC Research Institute • Optimized integrated operations layout • . • Achieve New Breakthroughs Optimized corporate credit management system Established industry planning research center Implemented reform of data governance system 10#12④ Achieved notable results in serving the high-quality development of economy Constantly increased resource input Domestic RMB loan balance grew RMB1.05 trillion, up 11.7% from the end of last year Local government bonds balance grew RMB221.5 billion, up 13.4% from the end of last year Optimized financial supply Green credit Infrastructure construction Advanced Consumer manufacturing finance Tech innovation enterprises Modern services Earnestly implemented strategies for regional coordinated development Yangtze River Delta, the Beijing-Tianjin- Hebei region and the Guangdong-Hong Kong-Macao Greater Bay Area Loan proportion increased steadily #1 Yangtze River Delta: Strengthened the Shanghai RMB Trading Unit and became the first bank to launch the Comprehensive Financial Service Plan for Yangtze River Delta Integration Beijing-Tianjin-Hebei Region: Proactively served the coordinated development of the Beijing-Tianjin-Hebei region and the construction of the Xiongan New Area, and made progress in cross-border projects including the Xiongan-Hong Kong Fund and the Xiongan-Macao Fund Guangdong-Hong Kong-Macao Greater Bay Area: Issued the Plan for Business Development in Greater Bay Area, fully supported to build Shenzhen into a demonstration pilot zone for socialism with Chinese characteristics, promoted the development of Macao business as "One Body with Two Wings", and maintained a leading market share in the Greater Bay Area Soundly served inclusive finance Inclusive finance loan balance under CBIRC regulation reached RMB412.9 billion, up 38% from the prior year-end Number of customers was nearly 0.4 million, higher than the year beginning Overall financing cost modestly declined • Asset quality maintained stable Qualified for 0.5ppt and additional 1ppt RRR cut in 2020 Developed online financing product 'BOC Corporate E Loan - Unsecured Loan', launched 'BOC Corporate E Loan - Business Loan' BOC Fullerton Community Bank actively implemented the national strategy of rural revitalization, loan balance reached RMB44.5 billion Held a total of 61 SME cross-border matchmaking events to date 中国银行 Actively served private enterprises Private enterprises loan balance reached RMB1.64 trillion, up 13.3% from the prior year-end Granted RMB1.96 trillion new loans in 2019, accounting for 36.8% of total new corporate loans, up 2.2 ppts over last year Broadened financing channels for private enterprises, underwritten RMB33.6 billion private enterprises bonds, up 72.5% yoy 11#13> Accelerated digitalized transformation Scenario building as breakthrough point Enterprise-level architecture building as focus Smart operation as support FinTech system and mechanisms innovation Set up BOC Finance Technology Co., Ltd. • Established several joint laboratories, and signed strategic cooperation agreements with well-known enterprises, industry think tanks and colleges • Promoted the construction of innovative R&D bases in the Xiongan New Area, the Yangtze River Delta and the Guangdong- Hong Kong-Macao Greater Bay Area Boosted the application of new technologies such as 5G, Internet of Things, Block-chain and Virtual Reality • Invested RMB11.65 billion in information technology in 2019, accounting for approximately 2.1% of operating income Accelerate transformation Online-based Infrastructure project construction Promoted the layout of new- generation multi-center infrastructure in multiple locations, and established an agile and efficient cloud service mode Deepened the building of the three new technology platforms of Cloud Computing, Big Data and Al, and developed a cloud computing-based model of integrated enterprise-level for development, testing, and operation & maintenance ⚫ Launched the Big Data Platform Promoted the enterprise-level Al platform "BOC AI Brain" Digitalized Asset-Light Digitalization in key business fields • Built a digital channel operation system with mobile banking, smart counters and smart customer services as the core ⚫ Launched the first phase of BOC Intelligent Global Transaction Banking service platform ("iGTB platform") Implemented digital risk control projects in areas such as smart risk control, anti-money laundering and internal control • Became the first bank to launch a blockchain bond project • Strived to build the four strategic scenarios of cross-boarder, education, sports and silver economy ✓ Speeded up digitalized transformation of personal banking business • Following the principle of "Mobile First" to establish an agile front office Released Mobile Banking Version 6.0, realized over 300 improvements in terms of functionalities, user experience, scenarios, technological application, etc., and boosted the transformation of mobile banking from a transaction platform to a integrated service platform. At the end of 2019, registered users reached 181 million, up 24.4% from the end of last year, monthly active customers grew 48.7% from prior year end. Transaction amount in 2019 totaled RMB28.28 trillion, up 41.2% yoy Following the principle of "Intelligent First" to establish a centralized middle office Launched the "income/expenses recording" function in the digital account books. Introduced the personal customer rights protection system. BOC Robot Advisor, a smart investment advisor product, recorded a transaction volume of RMB12.3 billion and attracted a total of over 100 thousands customers ◆ Following the principle of "Automatic First" to establish an efficient back office • Enhance digitalized risk control capabilities, and implemented an anti-fraud on-going risk control platform at the enterprise level. Became the first bank to promote "Cellphone Shield", a mobile banking-oriented digitalized authorization tool, making fund transfer through mobile banking much easier and safer. Enhanced data integration capability, realized rapid growth of data scale in big data platform, fostered modelling capability in data sandbox and created 1,894 customer tags, thus enabling personal banking business to utilize data in an automatic, visualized and mobile manner Enhanced digitalized outlets Built "5G Intelligence + Brand" outlets, launched the "BOC 5G Intelligence + Life House" and "BOC 5G Intelligence + Livelihood House" Comprehensively pushed forward the transformation of outlets with smart counters as the core, enhanced outlets' value-creating capacity. Completed 18 upgrades of smart counters in 2019, promoted new service such as mobile version and cash version of smart counters across the Bank, improved the offline smart service system, and made the smart counter a main channel for customer attraction and service in outlets Launched the pilot smart counter in Macao Branch, taking the first step of overseas smart outlets building 12#14Pushed forward globalization development Continuously improved overseas network and enhanced global service capability Improved global service network . Overseas institutions covered 61 countries and regions Including 25 countries along the Belt and Road Supported Belt and Road Initiative Accumulatively followed up with over 600 Belt and Road projects Provided over USD160 billion credit support Launched business integration of overseas institutions Continuously improved regional management and intensive development Enhanced global online financial service capabilities Offered overseas corporate online banking services in 46 countries and regions, with 14 available languages Provided overseas mobile banking services in 27 countries and regions, supporting 10 languages Leading traditional business market Led peers in terms of overseas business contribution Proportion of overseas assets reached 26.0% Proportion of overseas profit before tax reached 28.9% Foreign Cross-border Cross-border Internetional exchange Foreign exchange RMB clearing RMB settlement settlement settlement transactions and sale Syndicated loans Offshore bond underwriting Panda bond issuance Cross-border custody V Newly-developing business highlights . . Launched the "Account Opening Witness" service in the Guangdong-Hong Kong-Macao Greater Bay Area Launched the "Cross-border Wallet" payment service for Macao residents Became the first Chinese bank to serve as a central clearing member of the London Clearing House Served as the sole settlement bank for the comprehensive promotion phase of H-share full circulation Participated in the interconnection of the Shanghai Gold Exchange 13 and Chicago Mercantile Exchange (CME)#15④ Improved integrated operations steadily Value contribution Function contribution • Integrated operations realized rapid growth and became an important engine for the Group's revenue growth. Integrated business enterprises continued to make income and profit contribution to the Group with relatively low capital occupation and high capital return ◆ Revenue of major integrated business enterprises grew 34.8% yoy, contributed 9.27% to the Group, up 1.76 ppts yoy ◆ Profit before tax of major integrated business enterprises grew 18.3% yoy, contributed 5.47% to the Group, up 0.42 ppt yoy Coverage of integrated financial services led peers •Expanded business range of integrated operations: Established BOC Finance Technology Co., Ltd. and BOC Wealth Management Co., Ltd., obtained approval for the establishment of financial leasing company and China's first wealth management Sino-foreign joint venture • Enriched financial services system: Services and products cover investment banking, asset management, insurance, direct investment, debt-for-equity swaps, aircraft leasing, consumer finance, FinTech, etc. Competitiveness of integrated financial products enhanced •Investment banking: BOCI was the only Chinese investment bank mandated to assist Saudi Aramco Oil Company's IPO, the biggest IPO ever in global capital markets •Wealth management: Balance of WMP issued by BOC and BOC Wealth Management Co., Ltd. amounted to RMB1,427.7 billion at the end of 2019. Promoted the transformation and development of wealth management business, enriched product lines and the scale of NAV products steadily increased •Fund: AUM of non-monetary public funds ranked No.1 among Chinese banks •Insurance: Net profit of domestic life insurance grew more than 50%, and premium income of domestic property insurance ranked higher position. Life and property insurance businesses in Hong Kong market kept a leading position •Direct investment: BOCG Investment's business covers private equity investment, fund investment and management, real estate investment and management and special opportunity investment. Its historical average internal rate of return (IRR) is higher than the median in the Asian market Synergies of integrated operations became more coordinated •Supported the development of key national regions: BOCG Investment and BOC Shanghai Branch jointly established the BOC Yangtze River Delta Equity Investment Fund, with a total amount of RMB30 billion •Supported the development of enterprises on the Scientific and Technological Innovation Board: BOCI China and BOCIM jointly formed professional advantages in "investment banking + investment", and successfully launched the IPO of China Railway Signal & Communication Corp on the Science and Technology Innovation Board Brand contribution එ . BOC Aviation: world's leading and Asia's largest aircraft operating leasing company, with stable operating results and increasing investor recognition BOCI: the earliest Chinese investment banking platform established in Hong Kong, with increasing international influence BOCG Investment: special platform of direct investment and asset management in Hong Kong BOCI China: successfully went public on the main board of SSE, and became the fourth listed company in the Group 14#16④ Strengthened comprehensive risk management Credit risk Optimized the corporate credit management system, speeded up response to the market and customers, and strengthened the effectiveness of risk control Established Industry Planning& Research Center and made credit policy more forward-looking Focused on key areas and strengthened potential risk control Strengthened the recovery and disposal of non-performing assets Carried out smart risk control in an all-round manner to promote the digitalized transformation of risk management Market risk Strengthened the Group's coordinated management of securities and asset management business risks, continuously carried out investigation on bond default risk and strengthened early warning of risk events Timely adjusted asset and liability structure and pricing strategy according to market changes, and controlled interest rate risk at a moderate level Aimed to match the source of funds with the currency used in exchange rate risk management, and maintained the net foreign exchange exposure at a low level by means of exchange settlement and hedging | Liquidity risk Daily average liquidity coverage ratio (LCR) was 136.36% in the fourth quarter Net stable funding ratio (NSFR) was 124.46% RMB and foreign currency liquidity ratio (LR) were 54.6% and 60.4% respectively Quota management Risk warning Stress testing Internal control and operational risk Improved AML policies and rules, optimized resource allocation Continuously improved the compliance risk governance mechanism and management process, cultivated the compliance culture, and ensured the stable development of the Group Continuously carried out internal control governance, and strengthened operational risk management and business continuity management 15#17Agenda 01 2019 Operating Results 02 92 03 Progress in Strategy Implementation Key Tasks for 2020 16#182020 Outlook Year of Enhanced Implementation Grasp development trends Strengthen confidence for development The world's profound changes unseen in a century Global economic development trend Increasing downward economic pressure due to the global spread of COVID-19 pandemics Increasing risk to financial system Adjustment and differentiation of international economic patterns Overall strategy for the great rejuvenation of the Chinese nation China's economic development trend China's economy is at the critical stage of transforming mode of development, improving economic structure and shifting drivers of growth Although the COVID-19 pandemic will have a short-term impact, fundamentals of China's long- term sound economic growth remain unchanged Deepen supply-side structural reform in the financial sector Banking Industry development trend Scenario-based development trend for products and services Intense platform-based competition Accelerated two-way opening-up of the financial industry Continuous strengthening of financial supervision 17#19④Key tasks for 2020 Year of Enhanced Implementation Stimulate vitality Fortification Make agile response Achieve breakthroughs in key areas Digestion 4 key areas Improvement Penetration Forging Ahead with the Goal of Building a World-class Bank in the New Era 5 key battles Technological Reform Key Regional Business Data Governance Push forward Key Business Areas efforts Fight Smart Operation and Outlet Transformation battles Globalized Development Integrated Operations Scenario Development Forestall and Defuse Risks Continuously generate greater value for shareholders, customers, employees and society 18#20www.boc.cn Q & A#21Financial Highlights Profit & Loss Summary (RMB million) Net interest income Balance Sheet Summary 2019 2018 Change (RMB million) 2019.12.31 2018.12.31 Change 374,250 359,706 4.04% Total assets 22,769,744 21,267,275 7.06% Non-interest income 175,760 144,100 21.97% Loans, gross 13,068,785 11,819,272 10.57% Net fee and commission income 89,612 87,208 2.76% Investments 5,514,062 5,054,551 9.09% Operating income 550,010 503,806 9.17% Total liabilities 20,793,048 19,541,878 6.40% Operating expenses -198,269 -176,979 12.03% Due to customers 15,817,548 14,883,596 6.28% Pre-provision operating profit 351,741 326,827 7.62% Capital and reserves Impairment losses on assets -102,153 -99,294 2.88% Profit before income tax Profit after-tax 201,891 250,645 229,643 192,435 9.15% attributable to equity holders of the Bank 1,851,701 1,612,980 14.80% Net asset per share 4.91% 5.61 5.14 (RMB Yuan) Profit attributable to equity holders of the Bank 187,405 180,086 4.06% Key financial ratios(%) Dividend per ten shares (RMB Yuan) 1.91 1.84 Common equity tier 1 CAR² 11.30 11.41 -11bps Key financial ratios(%) Tier 1 CAR² 12.79 12.27 52bps ROA 0.92 0.94 -2bps CAR2 15.59 14.97 62bps ROE 11.45 12.06 -61bps NPL ratio 1.37 1.42 -5bps Net interest margin 1.84 1.90 Cost to income ratio¹ 28.00 28.09 -6bps -0.09 ppt NPL coverage ratio 182.86 181.97 0.89 ppt Notes: 1. Cost to income ratio is calculated under domestic regulations. Credit cost 0.80 0.95 -15bps 2. Capital ratios are calculated under the advanced approaches in accordance with Capital Rules for Commercial Banks (Provisional) and related regulations. 20