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Investor Presentaiton

Overview of business S 中国民生银行 CHINA MINSHENG BANK During 2019, the Group took proactive measures in coping with the adjustments and changes in the internal and external operating environment and continued to promote the three major strategic positioning of becoming "a bank for the non-state-owned enterprises ("NSOES"), a fintech-based bank and a bank of comprehensive services". Operating efficiency improved steadily with continuous optimization of operation structure. The Company has seen more technology and innovations introduction, more effective risk prevention, stable asset quality and sound operation across business lines 1 2 3 4 Significant improvement in operating efficiency with steady growth in profits Operating efficiency continued to increase: operating income was RMB177,745 million, representing an increase of 15.30% yoy; net profit attributable to equity shareholders of the Company was RMB53,819 million, representing an increase of 6.94% yoy; net interest margin (restated) was 2.11%, representing an increase of 0.24ppts yoy; cost-to-income ratio was 27.14%1, representing a decrease of 3.44ppts yoy Returns to shareholders remained steady: ROAA was 0.87%1, representing an increase of 0.02ppts yoy Asset and liability scale maintained coordinated growth: total assets amounted to RMB6,681,841 million, representing an increase of 11.46% as compared with the end of the previous year; total loans and advances to customers amounted to RMB3,487,601 million, representing an increase of 14.10% as compared with the end of the previous year; total deposits from customers amounted to RMB3,604,088 million, representing an increase of 13.79% as compared with the end of the previous year Focus on NSOEs and continuous improvement in comprehensive services Implemented strategies to support NSOEs and developed and promoted services for niche NSOE customers: By the end of reporting period, strategic NSOE customers amounted to 650, representing an increase of 83.62% as compared with the end of the previous year; daily average deposit amounted to RMB359,855 million, representing an increase of 86.20% as compared with the end of the previous year; total loans amounted to RMB 436,468 million, representing an increase of 113.00% as compared with the end of the previous year Breakthrough in innovation for SME customers and enhanced value of customers of small business finance: During the reporting period, daily average deposits of SMEs amounted to RMB594,855 million, representing an increase of 12.83% as compared with the end of the previous year Business development with technologies and achievements in digitalised transformation Transformed business models with technologies and steady progress of digitalised transformation: As at the end of the reporting period, public online platform users of the Company amounted to 2,310.3 thousand, representing an increase of 27.50% as compared with the end of the previous year; retail online platform users amounted to 70,411.8 thousand, representing an increase of 18.74% as compared with the end of the previous year; total number of direct bank customers was 29,203 thousand Coordinated business development with continuous enhancement in comprehensive service capabilities Strengthened cross-selling among customers and products and enhanced synergy between the parent company and subsidiaries: during the reporting period, total operating income of subsidiaries amounted to RMB6, 141 million, representing an increase of 9.45% yoy; net profit of subsidiaries amounted to RMB2,427 million and net profit attributable to shareholders of the Bank amounted to RMB1,331 million, with an increase of 100.75% yoy 5 6 Strengthened risk prevention and control and maintained generally stable asset quality The NPL ratio was 1.56%, representing a decrease of 0.20% yoy; the allowance to NPLs and the allowance to total loans were 155.50% and 2.43%, representing increases of 21.45 ppts and 0.07 ppts respectively as compared with the end of the previous year Expanded channels to replenish capital and strengthened capital capabilities Actively grasped market opportunities and policy windows to replenish capital and successfully issued Tier-2 capital bonds of RMB40 billion, undated capital bonds of RMB40 billion and preference shares of RMB20 billion At the end of the reporting period, net capital base amounted to RMB673,741 million 1, representing an increase of 23.11% yoy; capital adequacy ratio was 13.17%, representing an increase of 1.42 ppts as compared with the end of the previous year Note: 1 Group level E3
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