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1、2 022 I NTE RI M REPORTAdd:No.69,Jianguomen Nei Avenue,Dongcheng District,Beijing,P.R.ChinaPostal Code:100005 Tel:86-10-85108888http:/2022(A joint stock company incorporated in the Peoples Republic of China with limited liability)Stock Code:1288INTERIM REPORT1Interim Report 2022Definitions2Basic Cor
2、porate Information and Major Financial Indicators4Discussion and Analysis9 Situation and Prospects10 Financial Statement Analysis11 Business Review27 County Area Banking Business44 Risk Management and Internal Control49 Capital Management63Environment and Social Responsibility64 Green Finance64 Huma
3、n Capital Development67 Consumers Interests Protection67 Privacy and Data Security68 Accessibility of Finance Services69Corporate Governance71 Operation of Corporate Governance71 Directors,Supervisors and Senior Management73 Details of Ordinary Shares74 Details of Preference Shares79Significant Even
4、ts82Appendix I Capital Adequacy Ratio Information86Appendix II Liquidity Coverage Ratio Information104Appendix III Net Stable Funding Ratio Information106Appendix IV Leverage Ratio Information110Appendix V Interim Financial Information(Unaudited)111Appendix VI Unreviewed Supplementary Financial Info
5、rmation231ContentsDefinitions2In this report,unless the context otherwise requires,the following terms shall have the meanings set out below:1.ABC/Agricultural Bank of China/the Bank/the Group/WeAgricultural Bank of China Limited,or Agricultural Bank of China Limited and its subsidiaries2.A Share(s)
6、Ordinary shares listed domestically which are subscribed and traded in Renminbi3.CASs/PRC GAAPThe Accounting Standards for Enterprises promulgated on 15 February 2006 by the Ministry of Finance of the Peoples Republic of China and other related rules and regulations subsequently issued4.CBIRCChina B
7、anking and Insurance Regulatory Commission,or its predecessors,the former China Banking Regulatory Commission and/or the former China Insurance Regulatory Commission,where the context requires5.County Area Banking DivisionAn internal division with management mechanism adopted by us for specialized o
8、peration of financial services provided to Sannong and the County Areas,as required under our restructuring into a joint stock limited liability company,which focuses on the County Area Banking Business with independence in aspects such as governance mechanism,operational decision making,financial a
9、ccounting as well as incentive and constraint mechanism to a certain extent6.CSRCChina Securities Regulatory Commission7.Global Systemically Important BanksBanks recognized as key players in the financial market with global features as announced by the Financial Stability Board8.Green FinanceEconomi
10、c activities designed to support environmental improvement,respond to climate change and efficient use of resources,that is,financial services provided for project investment and financing,project operation,risk management,etc.in the fields of environmental protection,energy saving,clean energy,gree
11、n transportation,green building,etc9.H Share(s)Shares listed on The Stock Exchange of Hong Kong Limited and subscribed and traded in Hong Kong Dollars,the nominal value of which are denominated in Renminbi10.Hong Kong Listing RulesThe Rules Governing the Listing of Securities on The Stock Exchange o
12、f Hong Kong Limited11.Hong Kong Stock ExchangeThe Stock Exchange of Hong Kong Limited12.HuijinCentral Huijin Investment Ltd.3Interim Report 2022Definitions13.MOFMinistry of Finance of the Peoples Republic of China14.PBOCThe Peoples Bank of China15.SannongAgriculture,rural areas and rural people16.SS
13、FNational Council for Social Security Fund of the Peoples Republic of ChinaBasic Corporate Information and Major Financial Indicators4Basic Corporate InformationLegal name in ChineseAbbreviation中國農業銀行股份有限公司中國農業銀行Legal name in EnglishAbbreviationAGRICULTURAL BANK OF CHINA LIMITEDAGRICULTURAL BANK OF
14、CHINA(ABC)Legal representativeGU ShuAuthorized representativeZHANG QingsongHAN GuoqiangSecretary to the Board of Directors and Company SecretaryHAN GuoqiangAddress:No.69,Jianguomen Nei Avenue,Dongcheng District,Beijing,PRCTel:86-10-85109619(Investors Relations)Fax:86-10-85126571E-mail:Selected media
15、 and websites for information disclosureChina Securities Journal()Shanghai Securities News()Securities Times()Securities Daily()Website of Shanghai Stock Exchange publishing the interim report(A Shares)Website of Hong Kong Stock Exchange publishing the interim report(H Shares)www.hkexnews.hkLocation
16、 where copies of the interim report are keptOffice of the Board of Directors of the BankListing exchange of A SharesShanghai Stock ExchangeStock name農業銀行Stock code601288Share registrarChina Securities Depository and Clearing Corporation Limited,Shanghai Branch (Address:3/F,China Insurance Building,N
17、o.166 Lujiazui East Road,New Pudong District,Shanghai,PRC)Listing exchange of H SharesThe Stock Exchange of Hong Kong LimitedStock nameABCStock code1288Share registrarComputershare Hong Kong Investor Services Limited (Address:Shops 17121716,17th Floor,Hopewell Center,183 Queens Road East,Wanchai,Hon
18、g Kong,PRC)5Interim Report 2022Basic Corporate Information and Major Financial IndicatorsTrading exchange and platform of preference sharesThe Integrated Business Platform of Shanghai Stock ExchangeStock name(stock code)農行優1(360001),農行優2(360009)Share registrarChina Securities Depository and Clearing
19、 Corporation Limited,Shanghai Branch (Address:3/F,China Insurance Building,No.166 Lujiazui East Road,New Pudong District,Shanghai,PRC)Legal advisor as to laws of Chinese mainland King&Wood MallesonsAddress1718/F,East Tower,World Financial Centre Building 1,No.1 Dongsanhuan Zhong Road,Chaoyang Distri
20、ct,Beijing,PRCLegal advisor as to laws of Hong KongClifford ChanceAddress27/F,Jardine House 1 Connaught Place,Central,Hong Kong,PRCDomestic auditorKPMG Huazhen LLPAddress8/F,Office Tower E2,Oriental Plaza,1 East Chang An Avenue,Dongcheng District,Beijing,PRCName of the undersigned accountantsSHI Jia
21、n,HUANG AizhouInternational auditorAddressKPMG8/F,Princes Building,10 Chater Road,Central,Hong Kong,PRC6Basic Corporate Information and Major Financial IndicatorsFinancial Highlights(Financial data and indicators recorded in this report are prepared in accordance with the International Financial Rep
22、orting Standards(the“IFRSs”)and denominated in RMB,unless otherwise stated)Total loans and advances to customersNet profitCost-to-income ratioAllowance to non-performing loans(in millions of RMB)(in millions of RMB)(%)(%)0.0080.00160.00240.00320.000.0010.0020.0030.00040,00080,000120,000160,00005,000
23、,00010,000,00015,000,00020,000,00031 December 202031 December 202130 June 2022Six months ended 30 June 2020Six months ended 30 June 2021Six months ended 30 June 2022Six months ended 30 June 2020Six months ended 30 June 2021Six months ended 30 June 202231 December 202031 December 202130 June 202215,1
24、70,44217,175,07318,813,552109,190122,833128,95024.6424.5424.54266.20299.73304.91Total assetsDeposits from customersNet interest marginNon-performing loan ratio(in millions of RMB)(in millions of RMB)(%)(%)09,000,00018,000,00027,000,00036,000,00027,205,04729,069,15532,426,42007,000,00014,000,00021,00
25、0,00028,000,0000.000.601.201.802.400.000.400.801.201.6031 December 202031 December 202130 June 2022Six months ended 30 June 2020Six months ended 30 June 2021Six months ended 30 June 202231 December 202031 December 202130 June 202231 December 202031 December 202130 June 202220,372,90121,907,12724,119
26、,8542.122.021.571.431.412.207Interim Report 2022Basic Corporate Information and Major Financial IndicatorsMajor Financial Data30 June 202231 December 202131 December 2020At the end of the reporting period (in millions of RMB)Total assets32,426,42029,069,15527,205,047Total loans and advances to custo
27、mers18,813,55217,175,07315,170,442Including:Corporate loans10,254,9949,168,0328,134,487 Discounted bills607,121424,329389,475 Retail loans7,483,4247,117,2126,198,743 Overseas and others424,784426,179413,416Allowance for impairment losses on loans777,380720,570618,009Loans and advances to customers,n
28、et18,036,17216,454,50314,552,433Financial investments8,965,9558,230,0437,822,659 Cash and balances with central banks2,669,5272,321,4062,437,275Deposits and placements with and loans to banks and other financial institutions924,234665,444981,133Financial assets held under resale agreements1,106,6408
29、37,637816,206Total liabilities29,900,20726,647,79624,994,301Deposits from customers24,119,85421,907,12720,372,901Including:Corporate deposits8,879,0008,037,9297,618,591 Retail deposits14,189,82912,934,17111,926,040 Overseas and others727,368623,353562,741Deposits and placements from banks and other
30、financial institutions2,505,4971,913,4711,785,176Financial assets sold under repurchase agreements20,57436,033109,195Debt securities issued1,775,5311,507,6571,371,845Equity attributable to equity holders of the Bank2,519,4962,414,6052,204,789Net capital13,226,4183,057,8672,817,924 Common Equity Tier
31、 1(CET1)capital,net12,097,3652,042,4801,875,372 Additional Tier 1 capital,net1 409,878359,881319,884 Tier 2 capital,net1719,175655,506622,668Risk-weighted assets118,880,45517,849,56616,989,668Six months ended 30 June 2022Six months ended 30 June 2021Six months ended 30 June 2020Interim operating res
32、ults(in millions of RMB)Operating income387,659366,254339,774Net interest income300,219283,357267,009Net fee and commission income49,48948,15044,238Operating expenses125,971116,691108,043Credit impairment losses105,53096,13899,123Total profit before tax156,271153,538132,555Net profit128,950122,83310
33、9,190Net profit attributable to equity holders of the Bank128,945122,278108,834Net cash flows generated from operating activities908,785161,165(323,946)8Basic Corporate Information and Major Financial IndicatorsFinancial IndicatorsSix months ended 30 June 2022Six months ended 30 June 2021Six months
34、ended 30 June 2020Profitability(%)Return on average total assets20.84*0.88*0.85*Return on weighted average net assets3 11.94*12.40*11.94*Net interest margin4 2.02*2.12*2.20*Net interest spread5 1.86*1.96*2.04*Return on risk-weighted assets1,6 1.37*1.38*1.33*Net fee and commission income to operating
35、 income12.7713.1513.02Cost-to-income ratio724.5424.54 24.64 Data per share(RMB Yuan)Basic earnings per share3 0.350.340.30 Diluted earnings per share3 0.350.340.30Net cash flows per share generated from operating activities2.600.46(0.93)30 June 202231 December 202131 December 2020Asset quality(%)Non
36、-performing loan ratio81.411.43 1.57 Allowance to non-performing loans9304.91299.73 266.20 Allowance to loan ratio104.304.30 4.17 Capital adequacy(%)Common Equity Tier 1(CET1)capital adequacy ratio111.1111.4411.04Tier 1 capital adequacy ratio113.2813.4612.92Capital adequacy ratio117.0917.1316.59Risk
37、-weighted assets to total assets ratio158.2361.4062.45Total equity to total assets ratio7.798.338.13Data per share(RMB Yuan)Net assets per ordinary share116.035.875.39Notes:1.Figures were calculated in accordance with the Capital Rules for Commercial Banks(Provisional)and other relevant regulations.
38、2.Calculated by dividing net profit by the average balances of total assets at the beginning and the end of the period.3.Calculated in accordance with the Rules for the Compilation and Submission of Information Disclosure by Companies that Offer Securities to the Public No.9 Computation and Disclosu
39、re of Return on Net Assets and Earnings per Share(2010 Revision)issued by the CSRC and International Accounting Standard 33 Earnings per share.4.Calculated by dividing net interest income by the average balances of interest-earning assets.5.Calculated as the difference between the average yield on i
40、nterest-earning assets and the average cost of interest-bearing liabilities.6.Calculated by dividing net profit by risk-weighted assets at the end of the period.The risk-weighted assets are calculated in accordance with the relevant regulations of the CBIRC.7.Calculated by dividing operating and adm
41、inistrative expenses by operating income in accordance with CASs,which is consistent with the corresponding figures as stated in the financial report of the Bank prepared in accordance with CASs.8.Calculated by dividing the balance of non-performing loans(excluding accrued interest)by the balance of
42、 total loans and advances to customers(excluding accrued interest).9.Calculated by dividing the balance of allowance for impairment losses on loans by the balance of non-performing loans(excluding accrued interest),among which,the balance of allowance for impairment losses on loans includes the allo
43、wance for impairment losses on bills and forfeiting recognized in other comprehensive income.10.Calculated by dividing the balance of allowance for impairment losses on loans by the balance of total loans and advances to customers(excluding accrued interest),among which,the balance of allowance for
44、impairment losses on loans includes the allowance for impairment losses on bills and forfeiting recognized in other comprehensive income.11.Calculated by dividing equity attributable to ordinary equity holders of the Bank(excluding other equity instruments)at the end of the period by the total numbe
45、r of ordinary shares at the end of the period.*Annualized figures.Discussion and AnalysisSituation and Prospects 10Financial Statement Analysis 11Business Review 27County Area Banking Business 44Risk Management and Internal Control 49Capital Management 6310Discussion and AnalysisSituation and Prospe
46、ctsChinas economy was generally stable in the first quarter,but was subject to increasing downward pressure in the second quarter due to the unexpected factors such as the complex changes of the international environment and the impact of COVID-19 in China.With the overall improvement in epidemic pr
47、evention and control,the orderly work resumption,and a series of measures to stabilize growth taking effect,the major economic indicators stabilized and picked up in June.In the first half of the year,Chinas GDP grew by 2.5%year on year;the aggregate financing to the real economy(flow)was RMB21 tril
48、lion,representing an increase of RMB3.2 trillion year on year;consumer prices basically remained stable,with the consumer price index(CPI)rising by 1.7%year on year;the upward pressure on industrial product prices was to certain extent eased,with the producer price index(PPI)rising by 7.7%year on ye
49、ar,and the monthly growth rate(YoY)on the decline.In the first half of the year,the Chinese government responded to COVID-19 and pursued economic and social development in a well-coordinated way and launched a number of measures of maintaining steady growth to stabilize the economic and social devel
50、opment to the maximum extent.Proactive fiscal policies were pre-arranged,accelerating the issuance of special bonds by local governments,increasing the transfer payments to local governments by central government and implementing large-scale VAT credit refunds policy.The prudent monetary policy was
51、flexible and appropriate,placing more emphasis on cross-and countercyclical policy and maintaining reasonably ample liquidity.Special re-lending tools and carbon emission reduction support tools were leveraged to support the clean and efficient use of coal,scientific and technological innovation,inc
52、lusive elderlycare,transportation and logistics,and financial institutions were encouraged to increase their support to small and micro enterprises,scientific and technological innovation,and green development.The reform in the financial sector was further deepened,releasing the benefits of the loan
53、 prime rate(LPR)reform,steadily promoting the global use of Renminbi and constantly facilitating the trading and investment activities.Looking forward to the second half of the year,supported by the policies to maintain steady growth in fiscal,financial and investment sectors,the recovery of domesti
54、c demand will be relatively certain,but will still face various challenges such as weak expectations.The Bank will actively adjust the operation strategies based on circumstances,adhere to serving the real economy,enhance the financial support to Sannong,micro and small businesses,manufacturing sect
55、or,and green economy,optimize the quality and efficiency of financial service and strengthen risk prevention and control in key areas to promote high-quality development.11Interim Report 2022Discussion and AnalysisFinancial Statement AnalysisIncome Statement AnalysisIn the first half of 2022,we achi
56、eved a net profit of RMB128,950 million,representing an increase of RMB6,117 million or 4.98%,as compared to the first half of the previous year.Changes of Significant Income Statement Items In millions of RMB,except for percentagesItemSix months ended 30 June 2022Six months ended 30 June 2021Increa
57、se/(decrease)Growth rate(%)Net interest income300,219283,35716,862 6.0 Net fee and commission income49,48948,1501,339 2.8 Other non-interest income37,95134,7473,204 9.2 Operating income387,659366,25421,405 5.8 Less:Operating expenses125,971116,6919,280 8.0 Credit impairment losses105,53096,1389,392
58、9.8 Impairment losses on other assets17314 466.7 Operating profit156,141153,4222,719 1.8 Share of results of associates and joint ventures13011614 12.1 Profit before tax156,271153,5382,733 1.8 Less:Income tax expense 27,321 30,705(3,384)-11.0 Net profit128,950122,8336,1174.98Attributable to:Equity h
59、olders of the Bank128,945122,2786,667 5.5 Non-controlling interests5555(550)-99.1 Net Interest IncomeNet interest income was the largest component of our operating income,accounting for 77.4%of the operating income in the first half of 2022.Our net interest income was RMB300,219 million in the first
60、 half of 2022,representing an increase of RMB16,862 million as compared to the first half of the previous year,among which,an increase of RMB31,407 million resulted from the increase in volume and a decrease of RMB14,545 million resulted from the changes in interest rates.In the first half of 2022,o
61、ur net interest margin and net interest spread were 2.02%and 1.86%,respectively,both representing decreases of ten basis points as compared to the first half of the previous year.The year-on-year decreases in net interest margin and net interest spread were primarily due to a decrease in average yie
62、ld on interest-earning assets as a result of the implementation of national policies on benefiting the real economy and an increase in average cost on interest-bearing liabilities as a result of the market environment.12Discussion and AnalysisThe table below presents the average balance,interest inc
63、ome/expense,and average yield/cost of interest-earning assets and interest-bearing liabilities.In millions of RMB,except for percentagesSix months ended 30 June 2022Six months ended 30 June 2021ItemAverage balanceInterest income/expenseAverage yield/cost7(%)Average balanceInterest income/expenseAver
64、age yield/cost7(%)AssetsLoans and advances to customers17,993,402377,0374.2315,966,009 336,1444.25Debt securities investments17,907,455133,3133.407,177,256 123,6433.47 Non-restructuring-related debt securities7,523,225128,0783.436,793,017 118,6533.52 Restructuring-related debt securities2384,2305,23
65、52.75384,239 4,9902.62Balances with central banks2,229,11316,5321.502,317,191 18,1501.58Amounts due from banks and other financial institutions31,780,02615,8911.801,529,242 15,5342.05Total interest-earning assets29,909,996542,7733.6626,989,698 493,4713.69Allowance for impairment losses4(810,212)(693
66、,551)Non-interest-earning assets41,545,8741,637,328 Total assets30,645,65827,933,475 LiabilitiesDeposits from customers22,235,871184,1241.6720,240,329 159,674 1.59Amounts due to banks and other financial institutions52,550,78226,1662.072,091,223 21,153 2.04Other interest-bearing liabilities62,375,84
67、032,2642.742,100,897 29,287 2.81Total interest-bearing liabilities27,162,493242,5541.8024,432,449 210,114 1.73Non-interest-bearing liabilities41,100,0671,072,873 Total liabilities28,262,56025,505,322 Net interest income300,219283,357 Net interest spread1.861.96Net interest margin2.022.12Notes:1.Debt
68、 securities investments include debt securities investments at fair value through other comprehensive income and debt securities investments at amortized cost.2.Restructuring-related debt securities include the receivable from the MOF and the special government bonds.3.Amounts due from banks and oth
69、er financial institutions primarily include deposits with banks and other financial institutions,placements with and loans to banks and other financial institutions and financial assets held under resale agreements.4.The average balances of non-interest-earning assets,non-interest-bearing liabilitie
70、s and allowance for impairment losses are the average of their respective balances at the beginning and the end of the period.5.Amounts due to banks and other financial institutions primarily include deposits from banks and other financial institutions,placements from banks and other financial insti
71、tutions as well as financial assets sold under repurchase agreements.6.Other interest-bearing liabilities primarily include debt securities issued and borrowings from central banks.7.Annualized figures.13Interim Report 2022Discussion and AnalysisThe table below presents the changes in net interest i
72、ncome due to changes in volume and interest rate.In millions of RMBIncrease/(decrease)due toNet increase/(decrease)ItemVolumeInterest rateAssets Loans and advances to customers42,482(1,589)40,893 Debt securities investments12,311(2,641)9,670 Balances with central banks(653)(965)(1,618)Amounts due fr
73、om banks and other financial institutions2,239(1,882)357 Changes in interest income56,379(7,077)49,302 LiabilitiesDeposits from customers16,524 7,926 24,450 Amounts due to banks and other financial institutions4,7142995,013 Other interest-bearing liabilities3,734(757)2,977 Changes in interest expens
74、e24,9727,46832,440 Changes in net interest income31,407(14,545)16,862 Note:Changes caused by both volume and interest rate have been allocated to changes in volume.Interest IncomeWe achieved interest income of RMB542,773 million in the first half of 2022,representing an increase of RMB49,302 million
75、 as compared to the first half of the previous year,which was primarily due to an increase of RMB2,920,298 million in the average balance of interest-earning assets.Interest Income from Loans and Advances to CustomersInterest income from loans and advances to customers increased by RMB40,893 million
76、,or 12.2%,as compared to the first half of the previous year to RMB377,037 million,which was primarily due to an increase of RMB2,027,393 million in the average balance.14Discussion and AnalysisThe table below presents the average balances,interest income and average yield of loans and advances to c
77、ustomers by business type.In millions of RMB,except for percentagesSix months ended 30 June 2022Six months ended 30 June 2021ItemAverage balanceInterest incomeAverage yield1(%)Average balanceInterest incomeAverage yield1(%)Corporate loans 9,850,570 195,623 4.00 8,736,484 176,689 4.08 Short-term corp
78、orate loans 2,926,427 51,917 3.58 2,620,768 46,901 3.61 Medium-and long-term corporate loans 6,924,143 143,706 4.19 6,115,716 129,788 4.28 Discounted bills 457,737 4,006 1.76 271,275 3,536 2.63 Retail loans 7,307,193 172,895 4.77 6,493,870 151,502 4.70 Overseas and others 377,902 4,513 2.41 464,380
79、4,417 1.92 Total loans and advances to customers 17,993,402 377,037 4.23 15,966,009 336,144 4.25 Note:1.Annualized figures.Interest Income from Debt Securities InvestmentsInterest income from debt securities investments was the second largest component of interest income.In the first half of 2022,in
80、terest income from debt securities investments increased by RMB9,670 million to RMB133,313 million as compared to the first half of the previous year,which was primarily due to an increase in investment in bonds.Interest Income from Balances with Central BanksInterest income from balances with centr
81、al banks decreased by RMB1,618 million to RMB16,532 million as compared to the first half of the previous year,which was primarily due to the decreased average yield of balances with central banks resulting from a decrease in the proportion of mandatory deposits reserves with a high yield.Interest I
82、ncome from Amounts Due from Banks and Other Financial InstitutionsInterest income from amounts due from banks and other financial institutions increased by RMB357 million to RMB15,891 million as compared to the first half of the previous year,which was primarily due to an increase in the average bal
83、ance of the financial assets held under resale agreements.Interest ExpenseInterest expense increased by RMB32,440 million to RMB242,554 million as compared to the first half of the previous year,which was mainly due to an increase of RMB2,730,044 million in the average balance of interest-bearing li
84、abilities.Interest Expense on Deposits from CustomersInterest expense on deposits from customers increased by RMB24,450 million to RMB184,124 million as compared to the first half of the previous year,which was primarily due to an increase in the scale of deposits from customers.15Interim Report 202
85、2Discussion and AnalysisAnalysis of Average Cost of Deposits by Product TypeIn millions of RMB,except for percentagesSix months ended 30 June 2022Six months ended 30 June 2021ItemAverage balanceInterest expenseAverage cost1(%)Average balanceInterest expenseAverage cost1(%)Corporate deposits Time3,33
86、3,58840,404 2.44 2,734,95133,090 2.44 Demand5,429,33527,168 1.01 5,288,86424,538 0.94 Sub-Total8,762,92367,572 1.56 8,023,81557,628 1.45 Retail deposits Time7,601,107107,392 2.85 6,430,18791,260 2.86 Demand5,871,8419,160 0.31 5,786,32710,786 0.38 Sub-Total13,472,948116,552 1.74 12,216,514102,046 1.6
87、8 Total deposits from customers22,235,871184,124 1.67 20,240,329159,674 1.59 Note:1.Annualized figures.Interest Expense on Amounts Due to Banks and Other Financial InstitutionsInterest expense on amounts due to banks and other financial institutions increased by RMB5,013 million to RMB26,166 million
88、 as compared to the first half of the previous year,which was primarily due to an increase in the scale of deposits from banks and other financial institutions.Interest Expense on Other Interest-bearing LiabilitiesInterest expense on other interest-bearing liabilities increased by RMB2,977 million t
89、o RMB32,264 million as compared to the first half of the previous year,which was principally due to an increase in the scale of interbank certificates of deposit.Net Fee and Commission IncomeIn the first half of 2022,we generated net fee and commission income of RMB49,489 million,representing an inc
90、rease of RMB1,339 million or 2.8%as compared to the first half of the previous year.In particular,bank card fees increased by 12.6%,which was primarily due to an increase in the fee income from credit card services.16Discussion and AnalysisComposition of Net Fee and Commission IncomeIn millions of R
91、MB,except for percentagesItemSix months ended 30 June 2022Six months ended 30 June 2021Increase/(decrease)Growth rate(%)Agency commissions14,14014,014126 0.9 Settlement and clearing fees6,7867,114(328)-4.6 Bank card fees8,4167,472944 12.6 Consultancy and advisory fees9,3099,757(448)-4.6 Electronic b
92、anking service fees13,78615,433(1,647)-10.7 Custodian and other fiduciary service fees2,3232,076247 11.9 Credit commitment fees1,1921,257(65)-5.2 Others275364(89)-24.5 Fee and commission income56,22757,487(1,260)-2.2 Less:Fee and commission expenses6,7389,337(2,599)-27.8 Net fee and commission incom
93、e49,48948,1501,339 2.8 Other Non-interest IncomeIn the first half of 2022,other non-interest income amounted to RMB37,951 million,representing an increase of RMB3,204 million,as compared to the first half of the previous year.In particular,net trading gain decreased by RMB597 million,primarily due t
94、o an increase in net trading loss on foreign exchange derivatives.Net gain on financial investments increased by RMB1,756 million,primarily due to a decrease in net trading loss on financial liabilities designated as at fair value through profit or loss.Other operating income increased by RMB1,945 m
95、illion,primarily due to an increase in the premium income of the subsidiary.Composition of Other Non-interest IncomeIn millions of RMBItemSix months ended 30 June 2022Six months ended 30 June 2021Net trading gain7,7628,359Net gain on financial investments3,1881,432Net gain on derecognition of financ
96、ial assets measured at amortized cost1011Other operating income26,90024,955Total37,95134,74717Interim Report 2022Discussion and AnalysisOperating ExpensesIn the first half of 2022,operating expenses increased by RMB9,280 million to RMB125,971 million as compared to the first half of the previous yea
97、r;cost-to-income ratio was 24.54%and remained flat compared to the first half of the previous year.Composition of Operating ExpensesIn millions of RMB,except for percentagesItemSix months ended 30 June 2022Six months ended 30 June 2021Increase/(decrease)Growth rate(%)Staff costs63,62461,9931,631 2.6
98、 Insurance benefits and claims26,21822,7223,496 15.4 General operating and administrative expenses21,48018,0323,448 19.1 Depreciation and amortization9,9069,663243 2.5 Tax and surcharges3,3993,188211 6.6 Others1,3441,093251 23.0 Total125,971116,6919,280 8.0 18Discussion and AnalysisCredit Impairment
99、 LossesIn the first half of 2022,our credit impairment losses increased by RMB9,392 million to RMB105,530 million.In particular,impairment losses on loans increased by RMB766 million to RMB92,777 million as compared to the first half of the previous year.Income Tax ExpenseIn the first half of 2022,o
100、ur income tax expense decreased by RMB3,384 million,or 11.0%,to RMB27,321 million as compared to the first half of the previous year.The effective tax rate was 17.48%,which was lower than the statutory tax rate.This was primarily because the interest income from the PRC treasury bonds and local gove
101、rnment bonds held by the Bank was exempted from enterprise income tax by the relevant tax laws.Segment InformationWe assessed our performance and determined the allocation of resources based on the segment reports.Segment information had been presented in the same manner with that of internal manage
102、ment and reporting.At present,we manage our segments from the aspects of business lines,geographical regions and the County Area Banking Business.The table below presents our operating income by business segment during the periods indicated.In millions of RMB,except for percentagesSix months ended 3
103、0 June 2022Six months ended 30 June 2021ItemAmountPercentage(%)AmountPercentage(%)Corporate banking business146,93437.9 149,55440.8 Retail banking business179,58146.3 138,22637.7 Treasury operations26,9627.0 46,64412.8 Other business34,1828.8 31,8308.7 Total operating income387,659 100.0 366,254 100
104、.0 The table below presents our operating income by geographic segment during the periods indicated.In millions of RMB,except for percentagesSix months ended 30 June 2022Six months ended 30 June 2021ItemAmountPercentage(%)AmountPercentage(%)Head Office3,8321.0 39,62310.8 Yangtze River Delta82,79821.
105、4 66,29218.1 Pearl River Delta59,09515.2 48,29813.2 Bohai Rim53,55113.8 45,83912.5 Central China61,26915.8 51,10614.0 Western China78,79820.3 71,45719.5 Northeastern China12,7793.3 11,4583.1 Overseas and others35,5379.2 32,1818.8 Total operating income387,659100.0366,254100.019Interim Report 2022Dis
106、cussion and AnalysisThe table below presents our operating income from the County Area Banking Business and Urban Area Banking Business during the periods indicated.In millions of RMB,except for percentagesSix months ended 30 June 2022Six months ended 30 June 2021ItemAmountPercentage(%)AmountPercent
107、age(%)County Area Banking Business159,91141.3143,23039.1 Urban Area Banking Business227,74858.7223,02460.9 Total operating income387,659100.0366,254100.0Balance Sheet AnalysisAssetsAt 30 June 2022,our total assets amounted to RMB32,426,420 million,representing an increase of RMB3,357,265 million,or
108、11.5%,as compared to the end of the previous year.In particular,net loans and advances to customers increased by RMB1,581,669 million,or 9.6%;financial investments increased by RMB735,912 million,or 8.9%;cash and balances with central banks increased by RMB348,121 million,or 15.0%;deposits and place
109、ments with and loans to banks and other financial institutions increased by RMB258,790 million,or 38.9%,which was primarily due to an increase in cooperative deposits with banks and other financial institutions;and financial assets held under resale agreements increased by RMB269,003 million,or 32.1
110、%,which was primarily due to an increase in debt securities held under resale agreements.Key Items of AssetsIn millions of RMB,except for percentages30 June 202231 December 2021ItemAmountPercentage(%)AmountPercentage(%)Total loans and advances to customers18,813,55217,175,073Less:Allowance for impai
111、rment losses on loans777,380720,570Loans and advances to customers,net18,036,17255.616,454,50356.6Financial investments8,965,95527.78,230,04328.3Cash and balances with central banks2,669,5278.22,321,4068.0Deposits and placements with and loans to banks and other financial institutions924,2342.9665,4
112、442.3Financial assets held under resale agreements1,106,6403.4837,6372.9Others723,8922.2560,1221.9Total assets32,426,420100.0 29,069,155100.0 20Discussion and AnalysisLoans and Advances to CustomersAt 30 June 2022,our total loans and advances to customers amounted to RMB18,813,552 million,representi
113、ng an increase of RMB1,638,479 million,or 9.5%,as compared to the end of the previous year.Distribution of Loans and Advances to Customers by Business TypeIn millions of RMB,except for percentages30 June 202231 December 2021ItemAmountPercentage(%)AmountPercentage(%)Loans granted by domestic branches
114、18,345,539 97.7 16,709,573 97.5 Corporate loans10,254,994 54.6 9,168,032 53.5 Discounted bills607,121 3.2 424,329 2.5 Retail loans7,483,424 39.9 7,117,212 41.5 Overseas and others424,784 2.3 426,179 2.5 Sub-Total18,770,323 100.0 17,135,752 100.0 Accrued interest43,22939,321Total18,813,55217,175,073D
115、istribution of Corporate Loans by MaturityIn millions of RMB,except for percentages30 June 202231 December 2021ItemAmountPercentage(%)AmountPercentage(%)Short-term corporate loans 3,104,531 30.32,613,74928.5Medium-and long-term corporate loans7,150,46369.76,554,28371.5Total 10,254,994 100.0 9,168,03
116、2 100.0 Distribution of Corporate Loans by IndustryIn millions of RMB,except for percentages30 June 202231 December 2021ItemAmountPercentage(%)AmountPercentage(%)Manufacturing 1,805,565 17.6 1,497,847 16.3Production and supply of electricity,heating,gas and water 1,102,905 10.8 1,017,210 11.1Real es
117、tate1 842,866 8.2 830,457 9.1Transportation,storage and postal services 2,218,049 21.6 2,092,461 22.8Wholesale and retail 593,113 5.8 493,538 5.4Water,environment and public utilities management 813,758 7.9 716,090 7.8Construction 393,778 3.8 291,573 3.2Mining 190,026 1.9 193,539 2.1Leasing and comm
118、ercial services 1,655,801 16.1 1,494,187 16.3Finance 197,143 1.9 153,577 1.7Information transmission,software and IT services 72,086 0.7 58,283 0.6Others2 369,904 3.7 329,270 3.6Total 10,254,994 100.0 9,168,032 100.0Notes:1.Classification of the loans in the above table is based on the industries in
119、 which the borrowers operate.Real estate loans include real estate development loans granted to enterprises mainly engaged in the real estate industry,mortgage loans for operating properties and other non-real estate loans granted to enterprises in the real estate industry.At the end of June 2022,th
120、e balance of real estate loans to corporate customers amounted to RMB459,831 million,representing an increase of RMB29,521 million as compared to the end of the previous year.2.Others mainly include agriculture,forestry,animal husbandry,fishery,public health,and social work,etc.21Interim Report 2022
121、Discussion and AnalysisAt 30 June 2022,the top five major industries for our corporate loans include:(1)transportation,storage and postal services;(2)manufacturing;(3)leasing and commercial services;(4)production and supply of electricity,heating,gas and water;and(5)real estate.The loan balance of t
122、he top five major industries accounted for 74.3%of our total corporate loans,representing a decrease of 1.3 percentage points as compared to the end of the previous year.Distribution of Retail Loans by Product TypeIn millions of RMB,except for percentages30 June 202231 December 2021ItemAmountPercent
123、age(%)AmountPercentage(%)Residential mortgage loans 5,344,446 71.55,242,28873.6Personal consumption loans 186,230 2.5175,7702.5Loans to private business 550,003 7.3468,6886.6Credit card balances 651,745 8.7626,7838.8Loans to rural households 750,747 10.0603,3928.5Others 253 291Total 7,483,424 100.0
124、7,117,212100.0At 30 June 2022,the retail loans increased by RMB366,212 million,or 5.1%,as compared to the end of the previous year.In particular,residential mortgage loans increased by 1.9%as compared to the end of the previous year,which was mainly due to the Banks implementation of regulatory requ
125、irements to support customers to purchase their residential properties for non-investment purpose;personal consumption loans increased by 6.0%as compared to the end of the previous year,which was primarily due to the increase in consumption loans;loans to private business increased by 17.3%as compar
126、ed to the end of the previous year,primarily due to the increase in inclusive loans;loans to rural households increased by 24.4%as compared to the end of the previous year,primarily due to the sustained rapid increase in Huinong E-loan.Distribution of Loans and Advances to Customers by Geographic Re
127、gionIn millions of RMB,except for percentages30 June 202231 December 2021ItemAmountPercentage(%)AmountPercentage(%)Head Office 423,953 2.3 313,295 1.8Yangtze River Delta 4,548,290 24.2 4,088,464 23.8Pearl River Delta 3,098,142 16.5 2,839,822 16.6Bohai Rim 2,688,214 14.3 2,461,253 14.4Central China 2
128、,928,927 15.5 2,664,937 15.6Northeastern China 611,149 3.3 592,710 3.5Western China 4,046,864 21.6 3,749,092 21.8Overseas and others 424,784 2.3 426,179 2.5Sub-Total18,770,323100.017,135,752100.0Accrued interest43,22939,321Total18,813,55217,175,073Financial InvestmentsAt 30 June 2022,our financial i
129、nvestments amounted to RMB8,965,955 million,representing an increase of RMB735,912 million,or 8.9%,as compared to the end of the previous year.In particular,investments in non-restructuring-related debt securities increased by RMB730,115 million,as compared to the end of the previous year,which was
130、primarily due to an increase in investment in local government bonds.22Discussion and AnalysisDistribution of Financial Investments by Product TypeIn millions of RMB,except for percentages30 June 202231 December 2021ItemAmountPercentage(%)AmountPercentage(%)Non-restructuring-related debt securities
131、8,230,558 93.3 7,500,443 92.7Restructuring-related debt securities 384,230 4.4 384,231 4.7Equity instruments 109,814 1.2 114,544 1.4Others 98,041 1.1 93,794 1.2Sub-Total 8,822,643 100.0 8,093,012 100.0Accrued interest 143,312 137,031 Total 8,965,955 8,230,043 Distribution of Non-restructuring-relate
132、d Debt Securities Investments by IssuerIn millions of RMB,except for percentages30 June 202231 December 2021ItemAmountPercentage(%)AmountPercentage(%)Government bonds 5,381,976 65.4 4,760,965 63.4Bonds issued by policy banks 1,670,518 20.3 1,557,354 20.8Bonds issued by other banks and financial inst
133、itutions 735,490 8.9 710,759 9.5Bonds issued by entities in public sectors 230,066 2.8 238,604 3.2Corporate bonds 212,508 2.6 232,761 3.1Total 8,230,558 100.0 7,500,443 100.0Distribution of Non-restructuring-related Debt Securities Investments by Remaining MaturityIn millions of RMB,except for perce
134、ntages30 June 202231 December 2021Remaining MaturityAmountPercentage(%)AmountPercentage(%)Overdue 39 32 Less than 3 months 404,266 4.9 255,381 3.4312 months 812,848 9.9 900,411 12.015 years 2,884,519 35.0 2,952,095 39.4More than 5 years 4,128,886 50.2 3,392,524 45.2Total 8,230,558 100.0 7,500,443 10
135、0.0Distribution of Non-restructuring-related Debt Securities Investments by CurrencyIn millions of RMB,except for percentages30 June 202231 December 2021ItemAmountPercentage(%)AmountPercentage(%)RMB 7,897,447 96.0 7,190,104 95.9USD 257,650 3.1 249,096 3.3Other foreign currencies 75,461 0.9 61,243 0.
136、8Total 8,230,558 100.0 7,500,443 100.023Interim Report 2022Discussion and AnalysisDistribution of Financial Investments by Business Models and Characteristics of Contractual Cash FlowsIn millions of RMB,except for percentages30 June 202231 December 2021ItemAmountPercentage(%)AmountPercentage(%)Finan
137、cial assets at fair value through profit or loss 459,865 5.2 460,241 5.7Debt investments at amortized cost 6,811,494 77.2 6,249,598 77.2Other debt instrument and other equity investments at fair value through other comprehensive income 1,551,284 17.6 1,383,173 17.1Sub-Total8,822,643100.0 8,093,012 1
138、00.0Accrued interest 143,312 137,031 Total 8,965,955 8,230,043 Investment in Financial BondsFinancial bonds refer to securities issued by policy banks,commercial banks and other financial institutions,the principals and interests of which are to be repaid pursuant to a pre-determined schedule.At 30
139、June 2022,the balance of financial bonds held by the Bank was RMB2,406,008 million,including bonds of RMB1,670,518 million issued by policy banks and bonds of RMB735,490 million issued by commercial banks and other financial institutions.The table below presents the top ten financial bonds held by t
140、he Bank in terms of face value at 30 June 2022.In millions of RMB,except for percentagesBondsFace valueAnnual interest rateMaturity dateAllowance12022 policy bank bond52,9403.18%2032-03-112021 policy bank bond50,9523.38%2031-07-162020 policy bank bond50,5623.74%2030-11-162020 policy bank bond48,7633
141、.79%2030-10-262021 policy bank bond46,6903.30%2031-11-052021 policy bank bond41,6323.52%2031-05-242021 policy bank bond40,8523.22%2026-05-142021 policy bank bond34,0803.48%2028-02-042017 policy bank bond33,1103.85%2027-01-062020 policy bank bond29,3403.43%2025-10-23Note:1.Allowance in this table ref
142、ers to allowance for impairment losses in stage II and stage III,not including allowance for impairment losses in stage I.LiabilitiesAt 30 June 2022,our total liabilities increased by RMB3,252,411 million,or 12.2%,to RMB29,900,207 million as compared to the end of the previous year.In particular,dep
143、osits from customers increased by RMB2,212,727 million,or 10.1%;deposits and placements from banks and other financial institutions increased by RMB592,026 million,or 30.9%,mainly due to an increase in deposits from other domestic financial institutions;financial assets sold under repurchase agreeme
144、nts decreased by RMB15,459 million,or 42.9%,which was primarily due to a decrease in debt securities sold under repurchase agreements;debt securities issued increased by RMB267,874 million,or 17.8%,which was primarily due to the increase in issuance of interbank certificates of deposit.24Discussion
145、and AnalysisKey Items of LiabilitiesIn millions of RMB,except for percentages30 June 202231 December 2021ItemAmountPercentage(%)AmountPercentage(%)Deposits from customers24,119,85480.7 21,907,12782.2 Deposits and placements from banks and other financial institutions2,505,4978.4 1,913,4717.2 Financi
146、al assets sold under repurchase agreements20,5740.1 36,0330.1 Debt securities issued1,775,5315.9 1,507,6575.7 Other liabilities1,478,7514.9 1,283,5084.8 Total liabilities29,900,207100.0 26,647,796100.0 Deposits from CustomersAt 30 June 2022,the balance of deposits from customers of the Bank increase
147、d by RMB2,212,727 million,or 10.1%,to RMB24,119,854 million as compared to the end of the previous year.In terms of customer structure,the proportion of retail deposits decreased by 0.3 percentage point to 59.6%.In terms of maturity structure,the proportion of demand deposits was 49.6%.Distribution
148、of Deposits from Customers by Business TypeIn millions of RMB,except for percentages30 June 202231 December 2021ItemAmountPercentage(%)AmountPercentage(%)Domestic deposits 23,672,562 99.5 21,479,255 99.5 Corporate deposits 8,879,000 37.4 8,037,929 37.3 Time 3,227,371 13.6 2,667,190 12.4 Demand 5,651
149、,629 23.8 5,370,739 24.9 Retail deposits 14,189,829 59.6 12,934,171 59.9 Time 8,042,285 33.8 6,993,575 32.4 Demand 6,147,544 25.8 5,940,596 27.5 Other deposits1 603,733 2.5 507,155 2.3 Overseas and others 123,635 0.5 116,198 0.5 Sub-Total 23,796,197 100.0 21,595,453 100.0Accrued interest 323,657 311
150、,674 Total 24,119,854 21,907,127 Note:1.Include margin deposits,remittance payables and outward remittance.25Interim Report 2022Discussion and AnalysisDistribution of Deposits from Customers by Remaining MaturityIn millions of RMB,except for percentages30 June 202231 December 2021ItemAmountPercentag
151、e(%)AmountPercentage(%)Demand 13,215,616 55.6 12,380,970 57.4 Less than 3 months 1,604,204 6.7 1,838,380 8.5 312 months 4,088,391 17.2 3,120,029 14.4 15 years 4,882,896 20.5 4,240,028 19.6 More than 5 years 5,090 16,046 0.1 Sub-Total 23,796,197 100.0 21,595,453 100.0 Accrued interest 323,657 311,674
152、 Total 24,119,854 21,907,127 Distribution of Deposits from Customers by Geographic RegionIn millions of RMB,except for percentages30 June 202231 December 2021ItemAmountPercentage(%)AmountPercentage(%)Head Office 68,922 0.3 99,2890.5Yangtze River Delta 5,909,978 24.9 5,228,10724.2Pearl River Delta 3,
153、406,837 14.3 3,023,02114.0Bohai Rim 4,133,485 17.4 3,787,78417.5Central China 4,072,838 17.1 3,676,92517.0Northeastern China 1,145,477 4.8 1,094,5265.1Western China 4,935,025 20.7 4,569,60321.2Overseas and others 123,635 0.5 116,1980.5Sub-Total 23,796,197 100.0 21,595,453100.0Accrued interest 323,65
154、7 311,674Total 24,119,854 21,907,127Shareholders EquityAt 30 June 2022,our shareholders equity amounted to RMB2,526,213 million,representing an increase of RMB104,854 million,as compared to the end of the previous year.Net assets per ordinary share were RMB6.03,representing an increase of RMB0.16 as
155、 compared to the end of the previous year.Composition of Shareholders EquityIn millions of RMB,except for percentages30 June 202231 December 2021ItemAmountPercentage(%)AmountPercentage(%)Ordinary shares349,98313.9 349,98314.5 Other equity instruments409,86916.2 359,87214.9 Capital reserve173,5566.9
156、173,5567.2 Investment revaluation reserve36,1301.3 34,9271.4 Surplus reserve 220,814 8.7 220,792 9.1 General reserve385,38715.3 351,61614.5 Retained earnings 943,837 37.4 925,955 38.2 Foreign currency translation reserve(80)(2,096)(0.1)Non-controlling interests 6,717 0.3 6,754 0.3 Total2,526,213100.
157、0 2,421,359100.0 26Discussion and AnalysisOff-balance Sheet ItemsOff-balance sheet items primarily include derivative financial instruments,contingent liabilities and commitments.The Bank enters into derivative transactions related to exchange rates,interest rates and precious metals for the purpose
158、s of trading,assets and liabilities management and business on behalf of customers.The Banks contingent liabilities and commitments include credit commitments,capital expenditure commitments,bond underwriting and redemption commitments,mortgaged and pledged assets,legal proceedings and other conting
159、encies.Credit commitments are the major components of off-balance sheet items and comprise loan commitments,bank acceptances,guarantees and letters of guarantee,letters of credit and credit card commitments.Composition of Credit CommitmentsIn millions of RMB,except for percentages30 June 202231 Dece
160、mber 2021ItemAmountPercentage(%)AmountPercentage(%)Loan commitments 384,380 17.4459,90022.0Bank acceptances 542,500 24.5414,93419.9Guarantees and letters of guarantee 311,664 14.1304,23814.6Letters of credit 191,302 8.7165,6397.9Credit card commitments 780,636 35.3743,59435.6Total2,210,482100.02,088
161、,305100.0Other Financial InformationChanges in Accounting PoliciesThere were no significant changes in accounting policies during the reporting period.Differences between the Consolidated Financial Statements Prepared under IFRSs and those Prepared under CASsThere were no differences between the net
162、 profit or shareholders equity in the Consolidated Interim Financial Statements of the Bank prepared under IFRSs and the corresponding figures prepared in accordance with CASs.Other Financial IndicatorsRegulatoryStandard30 June 202231 December 202131 December 2020Liquidity ratio1(%)RMB2565.2962.0159
163、.15Foreign Currency25168.54138.94122.98Percentage of loans to the largest single customer2(%)102.182.444.07Percentage of loans to the top ten customers3(%)11.3211.6712.58Loan migration ratio4(%)Normal1.41 1.10 1.39 Special mention31.18 20.23 31.86 Substandard68.75 57.43 33.92 Doubtful6.68 13.66 12.2
164、0 Notes:1.Calculated by dividing current assets by current liabilities in accordance with the relevant regulations of the CBIRC.2.Calculated by dividing total loans to the largest single customer(excluding accrued interest)by net capital.3.Calculated by dividing total loans to the top ten customers(
165、excluding accrued interest)by net capital.4.Calculated in accordance with the latest indicator definition revised by the CBIRC in 2022.The data on 30 June 2022 was annualized and the data in the comparative periods was adjusted accordingly.27Interim Report 2022Discussion and AnalysisBusiness ReviewC
166、orporate BankingDuring the reporting period,in order to promote high-quality development of our corporate banking business,we strictly implemented the national decisions and deployment of stabilizing the overall economy,actively served major national strategies and key areas of the real economy,cult
167、ivated new growth drivers of the digital transformation,established a new integrated service model,and improved our comprehensive financial service capability and customer satisfaction.At the end of June 2022,the balance of domestic corporate deposits amounted to RMB8,879,000 million,representing an
168、 increase of RMB841,071 million as compared to the end of the previous year.The balance of domestic corporate loans and discounted bills amounted to RMB10,862,115 million,representing an increase of RMB1,269,754 million as compared to the end of the previous year.The loans newly granted to the proje
169、cts included in our major marketing projects pool amounted to RMB404.2 billion.At the end of June 2022,we had 9,051.0 thousand corporate banking customers,among which 396.2 thousand customers had outstanding loan balances,representing an increase of 35.6 thousand customers as compared to the end of
170、the previous year.We provided services to support the national strategy of building a manufacturing power.Persisting in the financial service for manufacturing industry as the key focus to support the real economy,we enhanced relevant top-level designs,ensured that the necessary policies and resourc
171、es were in place and innovated the product and service model to improve the financial service system continuously.We continued to increase financial supply by focusing on key areas such as advanced manufacturing,high-end equipment manufacturing,optimization and upgrade of traditional industries and
172、quality and efficiency improvement of consumer goods industry.The balance of loans in the manufacturing industry(based on the use of loans)increased by RMB428.3 billion as compared to the end of the previous year,which was 2.18 times of the increase in the same period of the previous year.Among whic
173、h,the growth rate of medium-and long-term loans in the manufacturing industry reached 34%,while the growth rate of loans to high-tech manufacturing industries such as electronics and communication equipment,computer,pharmaceutical and aerospace equipment was 38%.We served major national strategies o
174、f regional development.We took advantage of our omni-channel,full range of products and multiple licenses to comprehensively support major strategies of regional development,such as Beijing-Tianjin-Hebei Region,Yangtze River Delta,Guangdong-Hong Kong-Macao Greater Bay Area and Chengdu-Chongqing Regi
175、on.We enhanced the support to the real economy.We strengthened the construction of key customer groups of the new economy,accelerated the construction of financial service system for science and technology innovation,and maintained the first-mover advantage in the marketing of specialized and sophis
176、ticated“little giant”enterprises that produce new and unique products.The balance of loans to strategic emerging industries increased by RMB250.8 billion as compared to the end of the previous year.We introduced policies to break the hidden barriers such as“the difficulty and the high cost in financ
177、ing”of private enterprises,accelerated the product innovation,strengthened mechanism guarantee,assisted in the bail-outs of the private enterprises to increase the financial support.At the end of June 2022,the number of private enterprises with outstanding loan balances reached 371.1 thousand,repres
178、enting an increase of 32.7 thousand as compared to the end of the previous year.The balance of loans was RMB2,873,689 million,representing an increase of RMB406,038 million as compared to the end of the previous year.We promoted the digital transformation.We promoted the construction of the middle p
179、latform for operation and management of corporate banking and the optimization of the CMM system,and introduced a series of digital marketing management tools focusing on key project research and development,data governance,and targeted chain marketing for corporate customers.We accelerated the layo
180、ut of scenarios in transportation,tourism and pension finance,and continued to enrich the application of online credit,transaction banking,pension and other products.The number of active customers for corporate online banking and corporate mobile banking increased by 645.4 thousand and 622.1 thousan
181、d,respectively.28Discussion and AnalysisTransaction BankingWe continued to improve the transaction banking system based on accounts and payment settlement,and accelerated the layout of our online products to promote the high-quality development of our transaction banking business.We implemented grad
182、ed and classified management of corporate accounts,optimized account opening services for enterprises,and improved the ability of branch outlets and online channel in customer acquisition continuously.At the end of June 2022,we had 9,549.4 thousand corporate RMB-denominated settlement accounts.We pr
183、omoted E-guarantee to achieve whole-process online services in terms of domestic non-financing electronic guarantees with low risk.We optimized the smart supervision service to safeguard the capitals of major construction projects.We iteratively upgraded smart guaranteed payment and refined the indu
184、stries and application scenarios to provide comprehensive financial service to multiple types of customers such as E-commerce platform.At the end of June 2022,we had 3,730.4 thousand active transaction banking customers.Institutional BankingWe promoted the construction of Smart Customer and continuo
185、usly improved our comprehensive service capabilities in institutional banking business.At the end of June 2022,we had 598.2 thousand institutional customers,representing an increase of 6.9%as compared to the end of the previous year.In terms of financial services provided to the governments,our cove
186、rage rate of cooperation with prefecture-level service platforms for government affairs reached 83%.We continued to improve functions such as pandemic prevention and control,rural revitalization and integration of party building on“iXiangyang”APP.We had cooperated with 13 counties in 8 provinces thr
187、ough Smart County,a smart service platform for county government affairs,whose functions and applications were further enriched.In terms of services with respect to peoples livelihood,the number of customers with electronic certificates for medical insurance through our mobile banking exceeded 50.82
188、 million.We cooperated with over 30 thousand schools on our smart campus,and over four thousand hospitals on our smart hospital.In terms of services to financial institutions,the contracted customers for third-party depository services amounted to 62,080.0 thousand at the end of June 2022,representi
189、ng an increase of 5,327.4 thousand as compared to the end of the previous year.Investment BankingPersisting in serving the real economy,we accelerated product innovation and continued to improve the“financing+financing intelligence”service solutions to meet the needs of customers for diversified fin
190、ancing.In the first half of the year,the income from our investment banking business was RMB8,019 million.We actively met the needs of customers for diversified financing.By leveraging the advantage of syndicated services,we continued to increase credit support to major projects in transportation,en
191、ergy,water conservancy and other infrastructure fields,with the balance of syndicated loans exceeding RMB2 trillion.We actively supported M&A transactions related to industrial upgrade and enterprise transformation,and maintained a leading position in the market in terms of the scale of M&A loans.We
192、 increased support for direct financing to enterprises and underwrote debt financing instruments of non-financial enterprises with an amount of over RMB200 billion.We continuously promoted business innovation.We launched a number of funds for science and technology innovation,accelerated the promoti
193、on of the advisory service of stock option arrangement,orderly promoted the enterprise listing cultivation service,and actively promoted the model of investment and loan linkage service for science and technology startups.We underwrote the first batch of science and technology innovation notes,the f
194、irst batch of transition bonds and the first high-growth asset-backed commercial paper(ABCP)in the market,and led in the market in terms of underwriting volume of rural revitalization bonds and green bonds.29Interim Report 2022Discussion and AnalysisRetail BankingIn the first half of the year,adheri
195、ng to the customers-centered principle,we further promoted the development strategy of“One Main Body with Two Wings”,improved customer service,strengthened“broad wealth management”and digital transformation,improved financial services to new urban residents and rural revitalization,and promoted the
196、high-quality development of retail banking.At the end of June 2022,the total number of our retail banking customers reached 859 million,maintaining a leading position in banking industry.We focused on sophisticated services and upgraded customer management model.To meet customers needs,we built a th
197、ree-dimensional matrix customer management system that is layered,grouped and graded.We strengthened the hierarchical service to accompany the growth of customers by providing them with exclusive rights and interests.We carried out group-based operations to provide targeted financial solutions to di
198、fferent customer groups.We implemented graded management of customer managers to improve customer satisfaction.We built an open ecosystem and developed“broad wealth management”.We have extensively cooperated with high-quality companies in wealth management,insurance,fund,precious metals and other in
199、dustries,and continued to enrich our full-spectrum product pool.We vigorously promoted asset allocation services,focused on accompanying customers during the whole process of pre-sale,sales and after-sale,and duly performed our duty as family finance advisors.We actively promoted the construction of
200、 a professional and multi-layered“broad wealth management”service team to improve our professional services capabilities.We unleashed data value and promoted the digital transformation.Focusing on data empowerment,we continued to improve the digital transformation infrastructure such as the“smart br
201、ain for retail business”,strengthened the“precise identification”,and provided customers with intelligent,accurate and predictable financial services by relying on tools such as“smart customer reception”,“smart customer retention”,“digital people”,and digital customer relationship management system.
202、We focused on social concerns and fulfilled our responsibilities in retail banking.We accelerated the promotion of products such as“Gongxin Bao”,“Mingong Xinrong”and“ABC Zhufu Card”,strengthened cooperation with Internet platforms which had attracted many new urban residents to actively serve new ur
203、ban residents.Relying on digital tools such as the full-scenario marketing service platform for rural revitalization,we extended the service focus to underserved areas,expanded the service coverage,and strengthened the promotion of exclusive products such as rural revitalization cards,Huinong wealth
204、 management and Huinong E-loan to improve the rural financial service capabilities.Retail Loans We adhered to the principle that houses are for living in,not for speculation,supported the reasonal housing need of residents and implemented city-specific policies to promote the virtuous cycle and heal
205、thy development of the real estate industry.The balance of retail residential mortgage loans increased by 1.9%as compared to the end of the previous year.In accordance with the national policy requirements to promote the continuous recovery of consumption,we actively met the comprehensive consumptio
206、n needs of individuals for car purchase,decoration,home appliances,etc.,and continued to increase consumption loans,with the balance of personal consumption loans increased by 6.0%as compared to the end of the previous year.We continued to enhance financing supports for the stable production and suf
207、ficient supply to market entities in the fields of peoples livelihood such as wholesale and retail,accommodation and catering,and resident services,and the balance of loans to private business increased by 17.3%as compared to the end of the previous year.30Discussion and AnalysisRetail Deposits We c
208、ontinued to enrich product system,optimized service process to meet diversified wealth management needs of customers and achieved sustained and steady growth in retail deposits.At the end of June 2022,the balance of domestic retail deposits of the Bank reached RMB14,189,829 million,representing an i
209、ncrease of RMB1,255,658 million as compared to the end of the previous year,maintaining a leading position in the industry.Bank Card Business We improved the innovation and service capabilities of debit cards.We launched the“Jinsui Freight Card”to support the smoothness of freight logistics with fin
210、ancial services.We carried out a variety of debit card marketing activities,and cooperated with UnionPay to organize a number of consumption promotion activities for the benefit of people covering catering and convenience stores.We fully implemented the policies of fee reduction and interest concess
211、ion,continued to waive inter-bank ATM cash withdrawal fees for all debit cards,and further waived inter-bank fees for cash withdrawal in rural areas.At the end of June 2022,we had 1,052 million existing debit cards,and 22,197.1 thousand debit cards were newly issued in the first half of the year.We
212、continuously upgraded products and services of credit cards.We launched key products such as Car Owner Cards,Constellation Cards(China trend version)and Youran Joy Platinum Card,upgraded the customized benefits of card numbers and card design,and improved the experience of customers in their online
213、card application and card use.We established a special preferential business circle and continued to carry out brand marketing activities,such as“Affectionate Companion”,“Affectionate Benefit”,“Automobile Festival”and“Home Decoration Festival”to effectively meet the residents consumption needs of cl
214、othing,food,housing,transportation and entertainment.We actively implemented the policy of benefiting people and protecting enterprises,introduced differentiated repayment services,and implemented preferential transaction fees for certain merchants.In the first half of 2022,the transaction volume of
215、 credit cards amounted to RMB1,106,223 million.Private Banking Business We continued to strengthen the marketing for private banking customers,launched the“On-the-Wing Initiative”for private banking business,continued to establish private banking centers at the head office level,and strengthened the
216、 construction of key wealth management centers and penetration supervision.We accelerated the development of family trust business,established a four-level linkage mechanism,and responded to customers needs for customized wealth inheritance in real time.We deepened the construction of the“Yi Private
217、 Banking”public welfare financial laboratory,and launched a number of charitable trusts with strong social influence such as Yuan Longping Charitable Trust.We continued to develop the private banking high-end wealth management business,practiced the concept of long-term and steady asset allocation,a
218、nd continued to strengthen the sales of steady strategic products,with the scale of agency sales of asset management and private banking exclusive wealth management products steadily increased.At the end of June 2022,the number of our private banking customers reached 191 thousand and the balance of
219、 assets under management amounted to RMB2,062.4 billion,representing an increase of 21 thousand and RMB215.9 billion,respectively,as compared to the end of the previous year.31Interim Report 2022Discussion and AnalysisTreasury OperationsTreasury operations of the Bank include money market activities
220、 and investment portfolio management.We adhered to serving the real economy,made contribution to the stabilization of the overall economy and supported green and low-carbon development.We flexibly adjusted investment strategies and strengthened flow operations on the basis of ensuring the security o
221、f bank-wide liquidity.Our investment return remained at a relatively high level in the industry.Money Market Activities We strengthened our research on monetary policies and forecasts of market liquidity,comprehensively used various financing instruments such as placement and lending,repurchases,cer
222、tificates of deposit and deposits to smoothen liquidity fluctuations and reasonably allocated maturing funds to improve the efficiency of fund utilization on the basis of ensuring the security of our liquidity.In the first half of 2022,the volume of RMB-denominated financing transactions amounted to
223、 RMB66,264,247 million,including RMB66,105,285 million in lending and RMB158,962 million in borrowing.Investment Portfolio ManagementAt 30 June 2022,our financial investments amounted to RMB8,965,955 million,representing an increase of RMB735,912 million,or 8.9%,as compared to the end of the previou
224、s year.Trading Book Activities We maintained a leading position in the industry in terms of the bond market-making business in the inter-bank market.We proactively provided market-making quotation for green bonds to support green and low-carbon development.We focused on serving the opening-up of the
225、 bond market,and our market-making transaction volume of Bond Connect approximately increased by 30%on a year-on-year basis.We continuously improved the management capability of bond trading portfolio.In the first half of 2022,the overall yields of domestic bond market were range-bound with a downwa
226、rd trend.We dynamically adjusted the portfolio considering the market trend,strictly controlled the portfolio risk exposure and appropriately used derivatives to manage the portfolio market risks.Banking Book Activities We continuously improved the quality and effectiveness of bond investment to ser
227、ve the real economy and contributed to the stability of the overall economy.We maintained the scale of our investment in local government bonds and optimized the investment structure of credit bonds.We served the national regional strategies and local economic development,and supported the infrastru
228、cture construction in water conservancy projects,transportation and other sectors and the financing demands from the industries of the real economy such as public utilities,energy and science and technology.We increased our investment in green bonds,proactively supporting the construction of green p
229、rojects related to sectors such as clean energy and infrastructure green upgrading to assist with the green transformation of the real economy.We reasonably seized the investment opportunities and dynamically adjusted the structures of investment portfolios by considering the market rate trend and b
230、ond supply.As a result,we reduced portfolio risks and achieved relatively high returns.32Discussion and AnalysisAsset ManagementWealth ManagementIn the first half of 2022,we proactively implemented the requirements for the net worth operation of wealth management products,and steadily carried out we
231、alth management investment.At the end of June 2022,the balance of the Groups wealth management products amounted to RMB1,843,806 million,of which RMB162,221 million was generated from the Bank and RMB1,681,585 million was generated from Agricultural Bank of China Wealth Management Co.,Ltd.Wealth Man
232、agement Products of the BankDuring the reporting period,our outstanding wealth management products were non-principal guaranteed wealth management products.At the end of June 2022,the balance of non-principal guaranteed wealth management products amounted to RMB162,221 million,representing a decreas
233、e of RMB87,101 million as compared to the end of the previous year.In terms of offering approach,the balance of publicly offered wealth management products amounted to RMB162,221 million,representing a decrease of RMB85,995 million as compared to the end of the previous year;the balance of privately
234、 offered wealth management products amounted to zero,representing a decrease of RMB1,106 million as compared to the end of the previous year.The table below presents the issuance,maturity and duration of our wealth management products during the reporting period.In 100 million of RMB,except for tran
235、ches31 December 2021IssuanceMaturity30 June 2022ItemTrancheAmountTrancheAmountTrancheAmountTrancheAmountNon-principal guaranteed wealth management542,493.2241871.01131,622.21Note:The amount of maturity includes redemption and maturity amount of wealth management products during the reporting period.
236、The table below presents the balances of direct and indirect investment assets under the Banks wealth management as of the date indicated.In 100 million of RMB,except for percentages30 June 2022ItemAmountPercentage(%)Cash,deposits and interbank certificates of deposit118.37 6.6Placements with and lo
237、ans to banks and other financial institutions and financial assets held under resale agreementsDebt securities993.61 55.1Non-standardized debt assets523.83 29.0Other assets167.52 9.3Total1,803.33 100.033Interim Report 2022Discussion and AnalysisWealth Management Products of Agricultural Bank of Chin
238、a Wealth Management Co.,Ltd.At the end of June 2022,the balance of wealth management products of Agricultural Bank of China Wealth Management Co.,Ltd.amounted to RMB1,681,585 million.These were all net worth wealth management products,among which publicly offered wealth management products accounted
239、 for 99.45%while privately offered wealth management products accounted for 0.55%.Custody Service In the first half of 2022,we successfully achieved the custodianship of the largest Infrastructure Public Offered REITs in the market,led in the industry in terms of quantity and scale of initial offeri
240、ng of public funds under custody.The scale of pension funds under custody exceeded RMB1 trillion,and breakthrough was achieved in the custody business of wealth management pension.Our market competitiveness was effectively enhanced.In the election of the 12th“Golden Pixiu Award”Gold Medal List,we we
241、re awarded“Gold Medal Asset Custody Bank of the Year”,and our brand influence was continuously improved.At the end of June 2022,our assets under custody amounted to RMB13,567,843 million,representing an increase of 8.9%as compared to the end of the previous year,of which the pension funds under cust
242、ody amounted to RMB1,006,145 million,representing an increase of 6.9%as compared to the end of the previous year.Pension To proactively serve the national strategy of rigorously coping with aging population and contribute to the development of a multi-layered and multi-pillar social pension insuranc
243、e system,we carried out the overall layout of pension financial services.We were committed to providing annuity asset management services to various types of institutions including micro,small and medium-sized enterprises and individual customers.The increase of the number of entrusted management cu
244、stomers of enterprise annuity and account management customers of enterprise annuity both led in the industry,with the steady growth of business scale.At the end of June 2022,our pension funds under entrusted management1 amounted to RMB187,937 million,representing an increase of RMB17,040 million,or
245、 10.0%,as compared to the end of the previous year.Precious Metals In the first half of 2022,we traded 2,092.96 tons of gold and 10,828.88 tons of silver for our own account as well as on behalf of customers and maintained the leading position in the industry in terms of transaction volume.We steadi
246、ly developed the precious metal leasing and lending businesses and continuously strengthened the support to entity customers of the precious metal industry chain to guarantee the stable operation of commodities production enterprises.We strengthened due diligence on customers in the areas such as gr
247、een and low-carbon,and improved the assessment of ESG factors.Treasury Transactions on Behalf of Customers We actively promoted the concept of exchange rate risk neutrality,continued to improve services for customers by optimizing processes and improving online service experience,and assisted enterp
248、rises in improving their capabilities in managing exchange rate risk.In the first half of 2022,the transaction volume of foreign exchange sales and settlements as well as foreign exchange trading on behalf of customers amounted to USD274,121 million,representing a year-on-year increase of 18.0%.1 In
249、cluding occupational annuity,enterprise annuity and other pension assets under entrusted management.34Discussion and Analysis The counter bond(Zhaishibao)business developed steadily.The counter bond customer group steadily expanded,with the amount of distribution of bonds exceeding RMB16 billion in
250、the first half of 2022.We strengthened our efforts to serve the real economy and support major national development strategies by proactively providing quotations of local government bonds and thematic bonds such as rural revitalization bonds.As of the end of June 2022,we provided counter quotations
251、 for more than 70 bonds including local government bonds and thematic bonds such as rural revitalization bonds in total.Agency Insurance Business In the first half of 2022,our agency insurance premium reached RMB80.9 billion,maintaining a leading position in the industry,among which the agency regul
252、ar insurance premium increased by 19.6%as compared to the same period of the previous year,and the business structure continued to be optimized.Agency Distribution of Fund Products We further deepened the cooperation with the leading fund companies to implement“the quality products strategy”in the f
253、und agency distribution.According to the market situation and the customer demands,we strengthened the agency distribution of publicly offered funds with relatively-low risks and actively explored strategic fields,such as pension FOF and publicly offered REITs and provided whole process management o
254、f products and customer services.In the first half of 2022,the number of funds distributed by the Bank amounted to 3,428,with sales volume amounted to RMB114,356 million.Agency Sales of PRC Government Bonds In the first half of 2022,we,as an agent,distributed 4 tranches of savings PRC government bon
255、ds with the actual sales amount of RMB10,656 million,including 2 tranches of savings PRC government bonds(in certificate form)of RMB4,323 million and 2 tranches of savings PRC government bonds(in electronic form)of RMB6,333 million.Internet FinanceWe implemented the online business philosophy,deeply
256、 taped into the value of traffic,and promoted the high-quality development of Internet Finance business.Smart Mobile Banking The level of intelligence was improved.We launched the 7.3 Version of Mobile Banking,which improved the electronic payroll and other highlight products and provided functions
257、such as adding accounts and real-time LPR query.We optimized the business process to improve the success rate of self-service registration and promote the intelligent interaction of Mobile Banking and interconnection between channels.We upgraded the channels including homepage and life,and optimized
258、 the information display of transfer,wealth management and other modules,which continuously improved the customer experience.As of the end of June 2022,we had more than 164 million of monthly active users(MAU)of mobile banking.The rural version of Mobile Banking was optimized.We launched exclusive f
259、inancial products of rural revitalization series and Huinong series,enriched the products of Huinong loan,and optimized the functions of line of credit measurement and loan application,which effectively improved the digitalization of financial services for county areas.35Interim Report 2022Discussio
260、n and AnalysisOnline Corporate Banking Corporate finance service platform was upgraded.We upgraded the technical framework of the platform,optimized configuration center for special versions,and enhanced the capability of the platform for customized service.We launched the Enterprise WeChat Bank to-
261、do task prompt and other functions to improve the channel collaboration service ability.We enriched the deployment of corporate banking functions,optimized corporate financing services,and upgraded the“Inclusive E-Station”channel,which enhanced our mobile financial service capabilities.The“Salary Ma
262、nager”service platform was optimized.We realized the separation of HR and finance of payroll business in financial scenarios of the Bank.We developed and launched hybrid salary function,supporting hybrid payment of salary from digital RMB accounts and basic settlement accounts.Smart Scene-based Fina
263、nce The scene-based applications with high-frequency transactions were deeply promoted.In terms of campuses,we accelerated the iteration of headquarters version of smart campus application to provide comprehensive financial and non-financial services such as campus payment,campus access control,noti
264、ce and announcement,and new student registration.In terms of canteens,we completed the R&D of ABC canteen mini apps to realize meal card query,meal card recharge,dining payment,online ordering and other functions.In terms of government affairs,we promoted the e-government dedicated zone of Mobile Ba
265、nking and accelerated the cooperation with the e-government platforms of various provinces and cities.In terms of travel,we established the car owner service zone and integrated related products,services and interests,achieving“cooperation with and sharing of external services,and seamless integrati
266、on of banking products”.The service capabilities of open banking were improved.We continued to enrich the open banking output products,and provided seven types of output services including user authentication,account services,payment and settlement,fund products,financing services,mobile banking col
267、laboration,and information services through the open banking platform.We improved the interconnection efficiency of internal and external systems,and satisfied the needs of personalized and diversified cooperation through flexible configuration.The number of open banking cooperation projects increas
268、ed by 32%as compared to the end of the previous year.36Discussion and AnalysisDigital RMB Projects The digital RMB product functions were improved.We developed finance and capital management functions for group enterprises,and realized the application of corporate“parent-child wallet”across differen
269、t legal entities,improving the Groups capital settlement efficiency.We upgraded the comprehensive cashier products,realizing quick acceptance of digital RMB business from merchants,so as to support the operation of small and medium-sized merchants.We explored the supply chain applications and export
270、ed the digital RMB functions to supply chain platforms,providing“one-stop”digital RMB services for the upstream and downstream enterprises.The construction of digital RMB scenarios was promoted.We continued to promote the scene-based construction including supermarket retail,bus,park consumption,pub
271、lic payment and rural tourism to constantly improve the stickiness of digital RMB application.Cross-border Financial ServicesWe actively provided services to support the development of the export-oriented economy and high-quality opening up,and supported the Belt and Road Initiative,RMB internationa
272、lization,the establishment of pilot free trade zone and Hainan Free Trade Port,the transformation and upgrading of foreign trade and foreign investment.As of the end of June 2022,the total assets of our overseas branches and subsidiaries reached USD162.77 billion,representing an increase of 6.6%as c
273、ompared to the end of the previous year.In the first half of 2022,the net profit of our overseas branches and subsidiaries amounted to USD0.4 billion.In the first half of 2022,the volume of international settlement by domestic branches reached USD847,655 million and the volume of international trade
274、 financing(including financing with domestic letters of credit)reached USD80,412 million.We optimized the cross-border integrated financial service system.We implemented integrated operation of RMB and foreign currency businesses to improve our cross-border financial services.We accelerated product
275、innovation and digital transformation,and optimized service process.Three online brands for cross-border business,namely,ABC Cross-border E-Remittance,ABC Cross-border E-Certificate and ABC Cross-border E-Finance,were promoted with our further enhanced customer service capabilities.We supported the
276、Belt and Road Initiative and the enterprises financial demands of“going global”.Responding to the foreign trade situation,the customer demands and new development pattern of“double cycle”,we effectively marketed and provided services for“going global”projects,with focus on Easy Construction Finance
277、series.In the first half of 2022,the volume of loans,letters of guarantee,overseas bond issuance and other businesses related to“going global”amounted to USD12,407 million,among others,the related businesses in countries along the Belt and Road amounted to USD3,095 million.We supported the developme
278、nt of pilot free trade zone and Hainan Free Trade Port.We issued an action plan to support the high-quality development of pilot free trade zone and formulated relevant measures to enhance our financial service in pilot free trade zone and Hainan Free Trade Port.In the first half of 2022,the number
279、of free trade accounts increased by 1,013,representing a year-on-year growth of 36.97%.The cross-border RMB business maintained a steady growth,notching a total volume of RMB1,148,288 million in the first half of 2022.Actively playing its role as RMB clearing bank,Dubai Branch handled RMB clearing b
280、usiness amounting to RMB43,460 million in the first half of 2022,representing a year-on-year increase of 146.65%.37Interim Report 2022Discussion and AnalysisOverseas Subsidiary BanksAgricultural Bank of China(Luxembourg)LimitedAgricultural Bank of China(Luxembourg)Limited is a wholly-owned subsidiar
281、y of the Bank incorporated in Luxembourg,with a registered capital of EUR20 million.Its scope of business includes wholesale banking business such as international settlement,corporate deposits,syndicated loans,bilateral loans,trade financing and foreign exchange trading.At the end of June 2022,its
282、total assets and net assets amounted to USD39 million and USD25 million,respectively.It recorded a net profit of USD2.18 million for the first half of 2022.Agricultural Bank of China(Moscow)LimitedAgricultural Bank of China(Moscow)Limited is a wholly-owned subsidiary of the Bank incorporated in Russ
283、ia,with a registered capital of RUB7,556 million.Its scope of business includes wholesale banking business such as international settlement,corporate deposits,syndicated loans,bilateral loans,trade financing and foreign exchange trading.At the end of June 2022,its total assets and net assets amounte
284、d to USD205 million and USD162 million,respectively.It recorded a net profit of USD1.81 million for the first half of 2022.In addition,we own Agricultural Bank of China(UK)Limited in the United Kingdom,with a share capital of USD100 million.According to our overseas business development strategy,aft
285、er the opening of the London branch of the Bank,the financial license of Agricultural Bank of China(UK)Limited was revoked,and we have been undertaking the procedures needed to dissolve Agricultural Bank of China(UK)Limited.Integrated OperationsWe have established an integrated operation platform co
286、vering fund management,securities and investment banking,financial leasing,life insurance,debt-to-equity swap and wealth management businesses.In the first half of 2022,our six subsidiaries of integrated operation focused on core businesses,delved into respective professional territory and operated
287、prudently regarding the development strategy of the Group.Their market competitiveness was steadily improved and synergy of the Groups integrated operation was achieved gradually.ABC-CA Fund Management Co.,Ltd.ABC-CA Fund Management Co.,Ltd.was established in March 2008 with a registered capital of
288、RMB1.75 billion,51.67%of which was held by the Bank.Its businesses include fund-raising,sales of fund and asset management,and its major products include stock funds,mixed funds,bond funds,monetary funds and FOF funds.At 30 June 2022,its total assets and net assets amounted to RMB4,844 million and R
289、MB4,164 million,respectively.It recorded a net profit of RMB121 million for the first half of 2022.ABC-CA constantly enhanced its investment and research capabilities,improved its product and business deployment,and strengthened risk management,with its scale of asset under management increased stea
290、dily and the structure of asset under management optimized continuously.As of the end of the reporting period,ABC-CA had 67 publicly offered funds,101 privately offered funds,and the assets under management reached RMB418.6 billion,representing an increase of RMB33.8 billion as compared to the end o
291、f the previous year.Its equity fund achieved an absolute yield rate of 4.48%in the past year,ranking 18th among 155 fund companies.38Discussion and AnalysisABC International Holdings LimitedABC International Holdings Limited was established in Hong Kong SAR in November 2009 with a share capital of H
292、KD4,113 million,100%of which was held by the Bank.ABC International Holdings Limited is eligible to engage in providing comprehensive and integrated financial services in Hong Kong SAR,including sponsor and underwriter for listing,issuance and underwriting of bonds,financial consultation,asset manag
293、ement,direct investment,institutional sales,securities brokerage and securities consultation,and is also eligible to engage in businesses including private fund management,financial consultation,investment in Chinese mainland.At 30 June 2022,its total assets and net assets amounted to HKD47,142 mill
294、ion and HKD10,751 million,respectively.It recorded a net profit of HKD183 million for the first half of 2022.ABC International maintained its leading position among its comparable peers in terms of core indicators of investment banking business.In the first half of 2022,it completed 2 IPO sponsorshi
295、p projects and 9 underwriting projects,ranking third among all domestic and foreign investment banks in Hong Kong SAR in terms of the number of underwriting projects.It underwrote 58 overseas bonds,with the underwriting scale increased by 63%compared to the same period of the previous year,ranking f
296、irst among investment banks controlled by banks in terms of overseas bond underwriting scale issued by Chinese companies.ABC Financial Leasing Co.,Ltd.ABC Financial Leasing Co.,Ltd.was established in September 2010 with a registered capital of RMB9.5 billion,100%of which was held by the Bank.Its pri
297、ncipal scope of business includes financial leasing,transfer and acceptance of financial leasing assets,fixed-income securities investment business,acceptance of leasing deposits from lessees,absorbing time deposits with a maturity of three months or above from non-bank shareholders,inter-bank lendi
298、ng,borrowing from financial institutions,overseas borrowings,selling and disposal of leased items,economic consultation,establishment of project companies in domestic bonded zones to carry out financial leasing business,provision of guarantee for external financing of controlled subsidiaries and pro
299、ject companies,and other businesses approved by the CBIRC.At 30 June 2022,its total assets and net assets amounted to RMB77,502 million and RMB10,853 million,respectively.It recorded a net profit of RMB429 million for the first half of 2022.Persisting the characteristic development,ABC Financial Lea
300、sing achieved positive results in serving the goals of“peak carbon emissions and carbon neutrality”and rural revitalization.As of the end of June,the proportion of the balance of green leasing assets and agriculture-related leasing assets amounted to 66.4%and 25.2%,respectively.ABC Financial Leasing
301、 returned to basics of leasing business,with the proportion of the balance of direct lease in the balance of financial leasing amounted to 44.4%.ABC Life Insurance Co.,Ltd.The registered capital of ABC Life Insurance Co.,Ltd.was RMB2.95 billion,51%of which was held by the Bank.Its principal scope of
302、 business includes various types of personal insurance such as life insurance,health insurance and accident insurance;reinsurance business for the above-mentioned businesses;businesses with the application of insurance funds as permitted by the laws and regulations of the PRC;and other businesses ap
303、proved by the CBIRC.At 30 June 2022,its total assets and net assets amounted to RMB136,579 million and RMB8,540 million,respectively.It recorded a net loss1 of RMB112 million for the first half of 2022.Focusing on the primary responsibilities and core businesses in insurance,the business development
304、 capability of ABC Life Insurance was significantly improved.In the first half of 2022,the total premium income reached RMB26,252 million,with a year-on-year growth of 13.4%.Among them,regular premium reached RMB4,068 million,with a year-on-year growth of 48.4%.“ABC Quick E-Compensation”won the“Mode
305、l Case of Customer Service in Insurance Industry”award by China Banking and Insurance News.1 In order to be consistent with the Groups disclosure standards,the data is in accordance with the new financial instrument standard,which is different from the data in accordance with the financial instrumen
306、t standard currently adopted by the insurance industry.Under the financial instruments standard currently adopted by the insurance industry,ABC Life Insurance recorded a net profit of RMB303 million for the first half of 2022.39Interim Report 2022Discussion and AnalysisABC Financial Asset Investment
307、 Co.,Ltd.The registered capital of ABC Financial Asset Investment Co.,Ltd.was RMB20.0 billion,100%of which was held by the Bank.Its principal scope of business includes:acquiring the creditors rights of the banks to the enterprises for the purpose of debt-to-equity swap,converting the creditors righ
308、ts into equity and managing the equity;restructuring,transferring and disposing of the creditors rights that cannot be converted into equity;investing in enterprises for the purpose of debt-to-equity swap,where the invested enterprise uses all the equity investment funds to repay the existing credit
309、ors rights;raising funds from qualified investors according to law and regulations,issuing private asset management products to support debt-to-equity swaps;issuing financial bonds;raising funds through bond repurchase,inter-bank lending and placement,inter-bank borrowing;conducting necessary invest
310、ment management for proprietary funds and raised funds,where the proprietary funds may be used for interbank deposit taking,interbank loan,purchase of national bonds or other fixed income securities and other businesses,and the use of raised funds shall conform to the purposes agreed upon in fund ra
311、ising;financial advisory and consulting services related to the debt-to-equity swap business;other business approved by the banking regulatory authority of the State Council.At 30 June 2022,its total assets and net assets amounted to RMB124,395 million and RMB26,041 million,respectively.It recorded
312、a net profit of RMB1,500 million for the first half of 2022.ABC Financial Asset Investment focused on the primary responsibilities and core businesses of debt-to-equity swap,actively served the supply-side structural reform and the real economy,and put more emphasis on rural revitalization,green and
313、 low-carbon development,risk mitigation,and scientific and technological innovation,with the new investments in above-mentioned fields accounting for more than 70%.Agricultural Bank of China Wealth Management Co.,Ltd.Agricultural Bank of China Wealth Management Co.,Ltd.was established in July 2019 w
314、ith a registered capital of RMB12.0 billion,100%of which was held by the Bank.The principal scope of business includes public offering of wealth management products to the general public,investment and management of the above-mentioned properties entrusted by the investors;private placement of wealt
315、h management products to qualified investors,investment and management of the above-mentioned properties entrusted by the investors;wealth management advisory and consulting services;and other businesses approved by the CBIRC.At 30 June 2022,its total assets and net assets amounted to RMB16,567 mill
316、ion and RMB16,293 million,respectively.It recorded a net profit of RMB1,226 million for the first half of 2022.2022 was the first year for the full net worth operation of wealth management business after the end of the transition period of the Guiding Opinions regarding Asset Management Business of
317、Financial Institutions.ABC Wealth Management maintained a leading position in the industry in terms of assets under management through various measures,such as innovating product design,enriching product functions,improving product deployment and optimizing customer experience.Prudently carrying out
318、 wealth management investment.It strengthened the study and judgment of market trends,and adjusted the asset allocation strategy in a timely manner to effectively avoid market fluctuations.In the first half of 2022,the monthly performance of multiple fixed income and hybrid products of ABC Wealth Ma
319、nagement ranked in the front of the market.Actively serving the rural revitalization.The scale of rural vitalization themed wealth management products exceeded RMB50.0 billion,and the balance of county customers accounted for more than 40%.Constantly improving the brand image.It won awards such as“T
320、rustworthy Wealth Management Institution of Banks”and“Best Green Wealth Management Company of the Year”held by media such as Economic Observer and“Sina Finance”.Besides,we own China Agricultural Finance Co.,Ltd.in Hong Kong SAR with a share capital of HKD589 million,100%of which was held by the Bank
321、.40Discussion and AnalysisFinTechDuring the reporting period,we continued to deepen the application of frontier technologies related to FinTech,further promoted the implementation of our iABC strategy in information technology,and continued to improve our capability of science and technology empower
322、ment.Focusing on FinTech InnovationActively responding to the accelerated evolution of technology transformation,we speeded up the transformation into a new-generation technology system,built a new digital infrastructure and an IT architecture base which were future-oriented,and deepened the applica
323、tion of FinTech to empower the high-quality development of business operations.Regarding the application of Big Data technology,we promoted in-depth data integration and common data accumulation and provided one-stop exclusive data services through the big data platform and the middle-end data platf
324、orm.In addition,we steadily advanced the cloud deployment of data-type applications of our branches.Regarding the application of cloud computing technology,we promoted the construction of an integrated cloud platform and completed the construction of the system for technology stack of“one cloud with
325、 multiple cores”.The physical nodes of the cloud platform of the Head Office exceeded 25,000 and the cloudification rate of computing resources reached 91%.Regarding the application of AI technology,we built a one-stop and whole-process knowledge graph platform,completed the construction and service
326、 of a ten-billion-level graphs asset,which were applied to Sannong,credit card,credit and other fields.We built a privacy computing platform to provide privacy computing basic services for AI and BI scenarios.We released 7.3 version of mobile banking,which improved the ability of smart recommendatio
327、n.Regarding the application of distributed architecture,we promoted the transformation of core system to distributed architecture,with the distributed core system accounting for more than 67%of the trading volume during the peak trading period of the Spring Festival.We established the distributed mi
328、ddle-end technology platform to provide technical support of high-availability,high-reliability and high-performance to our product and application.Regarding the application of block chain technology,we promoted the construction of the blockchain cloud service platform and established a new trusted
329、certificate system platform,which enabled us to achieve the whole-process traceability of data in the certificate chain,provide blockchain certificate scenario services and support the innovative application of digital collectible and cloud signature.Regarding the application of information security
330、 technology,we completed the promotion and deployment of the enterprise-level network Security Operation Center(SOC)in the Head Office and 37 tier-1 branches and achieved the overall access of 590 security log sources covering 20 categories,which supported the bank-wide supervision of daily network
331、security situation.Regarding the application of network technology,we continued to upgrade the stock domain name to IPv6,explored the innovative application of“IPv6+”,and built end-to-end visual SRv6 network.Regarding the application of Internet of Things and virtual technologies,we initiated the ba
332、nk-wide construction of Internet of Things,and set out a plan to construct Visual Reality(VR)and Augmented Reality(AR)platforms.41Interim Report 2022Discussion and AnalysisImproving the Level of Guarantee of Our Business ContinuityWe focused on the construction of a disaster recovery system,promoted
333、 the dual-active construction of tier-1 business,improved the take-over scope of disaster recovery business,improved the coverage of emergency drills,and comprehensively improved the level of guarantee business continuity.The construction of disaster recovery was promoted.We completed the disaster recovery construction of 537 systems/modules,equipping all the tier-1 businesses,tire-2 businesses an