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1、2022Annual ReportStock Code:1398Industrial and Commercial Bank of China was established on 1 January 1984.On 28 October 2005,the Bank was wholly restructured to a joint-stock limited company.On 27 October 2006,the Bank was successfully listed on both Shanghai Stock Exchange and The Stock Exchange of
2、 Hong Kong Limited.The Bank has devoted itself to building a world-class and modern financial enterprise with Chinese characteristics.The Bank has a high quality customer base,a diversified business structure,strong innovation capabilities and market competitiveness.The Bank regards service as the v
3、ery foundation to seek further development and adheres to creating value through services while providing abundant financial products and superior financial services to over 10 million corporate customers and 720 million personal customers around the world.It has served the high-quality development
4、of the economy and society with its own high-quality development.The Bank has been consciously integrating the social responsibilities with its development strategy and operation and management activities,and gaining wide recognition in the aspects of serving manufacturing industry,promoting inclusi
5、ve finance,backing rural revitalization,developing green finance and participating in public welfare undertakings.The Bank always keeps in mind its underlying mission of serving the real economy with its principal business,and along with the real economy it prospers,suffers and grows.Taking a risk-b
6、ased approach and never overstepping the bottom line,it constantly enhances its capability of controlling and mitigating risks.Besides,the Bank remains steadfast in understanding and following the business rules of commercial banks to strive to be a century-old bank.It also stays committed to seekin
7、g progress with innovation while maintaining stability,continuously enhances the key development strategies,actively develops the FinTech and accelerates the digital transformation.The Bank unswervingly delivers specialized services,and pioneers a specialized business model,thus making it“a craftsma
8、n in large banking”.The Bank was ranked the 1st place among the Top 1000 World Banks by The Banker,and the 1st place in the list of commercial banks of the Global 500 in Fortune for the tenth consecutive year,and took the 1st place among the Top 500 Banking Brands of Brand Finance for the seventh co
9、nsecutive year.Company ProfileStrategic ObjectiveGuided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,ICBC will adhere to the general working principle of pursuing progress while ensuring stability,fully and faithfully apply the new development philosophy on all front
10、s,modernize its governance system and capacity,and turn ICBC into a world-class and modern financial enterprise with Chinese characteristics.Strategic SignificanceAdhere to the guidance of the Party building theory and exercising rigorous corporate governanceAdhere to putting the customer first and
11、serving the real economyAdhere to technology-driven development and value creationAdhere to a broad international vision and globalized operationsAdhere to pushing for pragmatic business transformation and progressing through reformAdhere to laying a solid foundation for risk control and achieving d
12、evelopment through talent cultivationICBC upholds the Partys leadership over the financial work,and strives to improve the scientific decision-making as well as the effectiveness of corporate governance through enhanced governance system and capacity building.ICBC remains steadfast in serving the re
13、al economy and commits to satisfying peoples new expectations and demands for financial services,making every effort to build the No.1 Personal Bank.ICBC proactively taps resources from both domestic and overseas markets,and undertakes to constantly promote international development,which well-integ
14、rates with Chinas high-level opening-up.Keeping pace with changing times,ICBC endeavors to advance reforms in key areas and critical steps,seeking room for development through transformation and vitality for growth through reform.ICBC safeguards the lifeline of asset quality by reinforcing bottom-li
15、ne thinking with a combination of prevention and control measures.Meanwhile,corporate culture formation and caring for staff are strengthened to increase group cohesion.ICBC empowers its business operations and management with FinTech,and creates superior value for the real economy,shareholders,cust
16、omers,employees and the society as a whole.VALUESIntegrity Leads to ProsperityIntegrityHumanityPrudenceInnovationExcellenceVISIONTo build a world-class modern financial institution with Chinese characteristics in all aspects,and become a long-lasting and ever-prosperous bankMISSIONExcellence for You
17、Excellent services for clientsMaximum returns to shareholdersReal success for employeesGreat contribution to societyContentsDefinitions4Major Ranking and Rewards in 20225Important Notice6Corporate Information7Financial Highlights8Chairmans Statement12Presidents Statement15Discussion and Analysis18 E
18、conomic,Financial and Regulatory Environments18 Financial Statements Analysis20 Business Overview36 Corporate Banking36 Personal Banking42 Asset Management Services45 Financial Market Business46 FinTech47 Internet Finance50 Outlet Building and Service Improvement53 Human Resources Management,Employe
19、es and Institutions54 Internationalized Operation56 Diversified Operation and Subsidiary Management60 Major Controlled Subsidiaries and Equity Participating Company63 Risk Management65 Capital Management81 Outlook86 Hot Topics in the Capital Market87Details of Changes in Share Capital and Shareholdi
20、ng of Substantial Shareholders91Directors,Supervisors and Senior Management100Corporate Governance Report110Report of the Board of Directors129Report of the Board of Supervisors133Environmental and Social Responsibilities135Significant Events140Organizational Chart142Auditors Report and Financial St
21、atements143List of Domestic and Overseas Branches and Offices311Definitions4In this report,unless the context otherwise requires,the following terms shall have the meanings set out below:Articles of AssociationThe Articles of Association of Industrial and Commercial Bank of China LimitedBank ICBC(JS
22、C)Bank ICBC(joint stock company)Capital RegulationRegulation Governing Capital of Commercial Banks(Provisional)promulgated in June 2012CBIRCChina Banking and Insurance Regulatory CommissionCompany LawCompany Law of the Peoples Republic of ChinaCSRCChina Securities Regulatory CommissionHKEXHong Kong
23、Exchanges and Clearing LimitedHong Kong Listing RulesRules Governing the Listing of Securities on The Stock Exchange of Hong Kong LimitedHuijinCentral Huijin Investment Ltd.ICBC(Almaty)Industrial and Commercial Bank of China(Almaty)Joint Stock CompanyICBC(Argentina)Industrial and Commercial Bank of
24、China(Argentina)S.A.ICBC(Asia)Industrial and Commercial Bank of China(Asia)LimitedICBC(Austria)ICBC Austria Bank GmbHICBC(Brasil)Industrial and Commercial Bank of China(Brasil)S.A.ICBC(Canada)Industrial and Commercial Bank of China(Canada)ICBC(Europe)Industrial and Commercial Bank of China(Europe)S.
25、A.ICBC(Indonesia)PT.Bank ICBC IndonesiaICBC(London)ICBC(London)PLCICBC(Macau)Industrial and Commercial Bank of China(Macau)LimitedICBC(Malaysia)Industrial and Commercial Bank of China(Malaysia)BerhadICBC(Mexico)Industrial and Commercial Bank of China Mexico S.A.ICBC(New Zealand)Industrial and Commer
26、cial Bank of China(New Zealand)LimitedICBC(Peru)ICBC PERU BANKICBC(Thai)Industrial and Commercial Bank of China(Thai)Public Company LimitedICBC(Turkey)ICBC Turkey Bank Anonim irketiICBC(USA)Industrial and Commercial Bank of China(USA)NAICBC Credit Suisse Asset ManagementICBC Credit Suisse Asset Mana
27、gement Co.,Ltd.ICBC InternationalICBC International Holdings LimitedICBC InvestmentICBC Financial Asset Investment Co.,Ltd.ICBC Investments ArgentinaICBC Investments Argentina S.A.Sociedad Gerente de Fondos Comunes de InversinICBC LeasingICBC Financial Leasing Co.,Ltd.ICBC Standard BankICBC Standard
28、 Bank PLCICBC TechnologyICBC Information and Technology Co.,Ltd.ICBC Wealth ManagementICBC Wealth Management Co.,Ltd.ICBC-AXAICBC-AXA Assurance Co.,Ltd.ICBCFSIndustrial and Commercial Bank of China Financial Services LLCIFRSsThe International Financial Reporting Standards promulgated by the Internat
29、ional Accounting Standards Board,which comprise the International Accounting StandardsInversora DiagonalInversora Diagonal S.A.MOFMinistry of Finance of the Peoples Republic of ChinaNew Rules on Asset ManagementThe Guiding Opinions on Regulating the Asset Management Business of Financial Institution
30、s jointly promulgated by PBC,CBIRC,CSRC and State Administration of Foreign Exchange in 2018 and relevant rulesPBCThe Peoples Bank of ChinaPRC GAAPAccounting Standards for Business Enterprises promulgated by MOFSecurities and Futures Ordinance of Hong KongSecurities and Futures Ordinance(Chapter 571
31、 of the Laws of Hong Kong)SEHKThe Stock Exchange of Hong Kong LimitedSSEShanghai Stock ExchangeSSFNational Council for Social Security FundStandard BankStandard Bank Group LimitedState CouncilThe State Council of the Peoples Republic of ChinaThe Bank/The GroupIndustrial and Commercial Bank of China
32、Limited;or Industrial and Commercial Bank of China Limited and its subsidiariesA n n u a l R e p o r t 2 0 2 25Major Ranking and Rewards in 2022The AssetThe Asian BankerEuromoneyBest Bank for Sustainable Finance,China Best Bond Advisor,ChinaBest Custodian Bank,Onshore,ChinaThe Strongest Bank in Chin
33、aBest International Cash Management Bank in ChinaBest Data Management Initiative in ChinaGlobal Finance2022 Data Management Top 10 Brand EnterprisesIFF Global Green Finance Award Innovation AwardBest Bank in ChinaBest Corporate Bank in ChinaBest Bank for Belt and Road in ChinaChina Federation of Ele
34、ctronics and Information IndustryInternational Finance Forum(IFF)Brand FinanceChina Council for Brand DevelopmentAmong the Top 500 Banking Brands for the seventh consecutive yearIn the“Corporate Brand Value List”for the seventh timeChina Banking AssociationIn the GYROSCOPE assessment system among na
35、tional commercial banks for the second consecutive yearFortuneAmong commercial banks in the Global 500 for the tenth consecutive yearThe BankerAmong the Top 1000 World Banks for the tenth consecutive yearMSCIMSCI ESG RatingsChina Corporate Banking,SME Banking,Corporate and Social Responsibility(CSR)
36、,Environmental,Social and Governance(ESG),Digital Solutions Market LeaderRanking the st placeRanking the st placeRanking the st placeRanking the st placeRanking the st place6Important NoticeThe Board of Directors,the Board of Supervisors,Directors,Supervisors and Senior Management members of Industr
37、ial and Commercial Bank of China Limited undertake that the information in this report contains no false record,misleading statement or material omission,and assume individual and joint and several liability for the authenticity,accuracy and completeness of the information in this report.The 2022 An
38、nual Report of the Bank and its abstract have been considered and approved at the meeting of the Board of Directors of the Bank held on 30 March 2023.All directors of the Bank attended the meeting.The 2022 financial statements prepared by the Bank in accordance with PRC GAAP and IFRSs have been audi
39、ted by Deloitte Touche Tohmatsu Certified Public Accountants LLP and Deloitte Touche Tohmatsu in accordance with Chinese and International Standards on Auditing respectively,with unqualified auditors reports being issued.The Board of Directors of the Bank proposed distributing cash dividends for ord
40、inary shares of RMB3.035(pre-tax)for each ten shares for 2022.The distribution plan will be submitted for approval to the Annual General Meeting for the Year 2022.The Bank did not convert capital reserve to share capital.The Board of Directors of Industrial and Commercial Bank of China Limited30 Mar
41、ch 2023Mr.Chen Siqing,Legal Representative of the Bank,Mr.Liao Lin,President in charge of finance of the Bank,and Mr.Wang Gang,Person in charge of Finance and Accounting Department of the Bank,hereby warrant that the financial statements contained in the Annual Report are authentic,accurate and comp
42、lete.The report contains forward-looking statements on the Banks financial position,business performance and development.The statements are based on existing plans,estimates and forecasts,and bear upon future external events or the Groups future finance,business or performance in other aspects,and m
43、ay involve future plans which do not constitute substantive commitment to investors.Hence,investors and persons concerned shall be fully aware of the risks and understand the difference between plans,estimates and commitments.The Bank is primarily exposed to credit risk,market risk,interest rate ris
44、k in the banking book,liquidity risk,operational risk,reputational risk and country risk.The Bank has actively adopted measures to effectively manage various types of risks.Please refer to the section headed“Discussion and Analysis Risk Management”for detailed information.(This report is prepared in
45、 both Chinese and English.In the case of discrepancy between the two versions,the Chinese version shall prevail.)A n n u a l R e p o r t 2 0 2 27Corporate InformationLegal name in Chinese中國工商銀行股份有限公司(中國工商銀行)Legal name in EnglishINDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED(“ICBC”)Legal Representat
46、iveChen SiqingRegistered address and office address55 Fuxingmennei Avenue,Xicheng District,Beijing,ChinaPostal code:100140Telephone:86-10-66106114Business enquiry and complaint hotline:86-95588Website:,www.icbc-Principal place of business in Hong Kong SAR,China33/F,ICBC Tower,3 Garden Road,Central,H
47、ong Kong SAR,ChinaAuthorized representativesLiao Lin and Guan XueqingBoard Secretary and Company SecretaryGuan XueqingAddress:55 Fuxingmennei Avenue,Xicheng District,Beijing,ChinaTelephone:86-10-66108608Facsimile:86-10-66107571E-mail:Selected newspaper for information disclosureChina Securities Jour
48、nal,Shanghai Securities News,Securities Times,Economic Information DailyWebsite of SSE for disclosure of the annual report in respect of A The“HKEXnews”website of HKEX for disclosure of the annual report in respect of H shareswww.hkexnews.hkLegal AdvisorsChinese mainlandKing&Wood Mallesons17-18/F,Ea
49、st Tower,World Financial Center,1 East 3rd Ring Middle Road,Chaoyang District,Beijing,ChinaHaiwen&Partners20/F,Fortune Financial Center,5 East 3rd Ring Middle Road,Chaoyang District,Beijing,ChinaHong Kong SAR,ChinaAllen&Overy9/F,Three Exchange Square,Central,Hong Kong SAR,ChinaFreshfields Bruckhaus
50、Deringer55th Floor,One Island East,18 Westlands Road,Quarry Bay,Hong Kong SAR,ChinaShare RegistrarsA ShareChina Securities Depository and Clearing Corporation Limited,Shanghai Branch188 Yanggao South Road,Pudong New Area,Shanghai,ChinaTelephone:86-4008058058H ShareComputershare Hong Kong Investor Se
51、rvices Limited17M Floor,Hopewell Center,183 Queens Road East,Wanchai,Hong Kong SAR,ChinaTelephone:Facsimile:Location where copies of this annual report are keptBoard of Directors Office of the BankPlace where shares are listed,and their names and codesA ShareShanghai Stock Ex
52、changeStock name:工商銀行Stock code:601398H ShareThe Stock Exchange of Hong Kong LimitedStock name:ICBCStock code:1398Domestic Preference ShareShanghai Stock ExchangeStock name:工行優1Stock code:360011Stock name:工行優2Stock code:360036Offshore Preference ShareThe Stock Exchange of Hong Kong LimitedStock name
53、:ICBC 20USDPREFStock code:4620Name and office address of AuditorsDomestic AuditorDeloitte Touche Tohmatsu Certified Public Accountants LLP30/F,222 East Yanan Road,Huangpu District,Shanghai,ChinaCPAs(Practicing):Wu Weijun and Zeng HaoInternational AuditorDeloitte Touche Tohmatsu35/F,One Pacific Place
54、,88 Queensway,Hong Kong SAR,China8Financial HighlightsNet profitUnit:RMB100 millions3,60203,6103,5023,177Total loans and advances to customersUnit:RMB100 millions232,123232,123186,243202220212020206,672Non-performing loans(“NPLs”)ratioUnit:%01%2%3%2022202120201.38%1.42%1.58%Cost-to-income
55、 ratioUnit:%20222021202027.43%26.36%24.76%010%20%30%40%Capital adequacy ratioUnit:%04%8%12%16%20%18.02%16.88%202.26%Allowance to NPLsUnit:%050%100%150%200%250%209.47%205.84%180.68%202120202022Total assetsUnit:RMB100 millions396,097202220212020396,097351,714333,451Due to customersUnit:RMB1
56、00 millions298,705298,705202220212020264,418251,347A n n u a l R e p o r t 2 0 2 29Financial Highlights(Financial data and indicators in this annual report are prepared in accordance with IFRSs and,unless otherwise specified,are consolidated amounts of the Bank and its subsidiaries and denominated i
57、n Renminbi.)Financial Data202220218Annual operating results(in RMB millions)Net interest income693,687690,680646,765632,217593,677Net fee and commission income129,265133,024131,215130,573124,394Operating income841,441860,880800,075776,002725,121Operating expenses240,884236,227206,585207,7
58、76194,203Impairment losses on assets182,419202,623202,668178,957161,594Operating profit418,138422,030390,822389,269369,324Profit before taxation422,565424,899392,126391,789372,413Net profit361,038350,216317,685313,361298,723Net profit attributable to equity holders of the parent company360,483348,33
59、8315,906312,224297,676Net cash flows from operating activities1,404,657360,8821,557,616481,240529,911Business outlets 15,639Corporate customers10,693 thousandUp 1,002 thousandPersonal customers720 millionUp 16.72 millionLoans to manufacturingLoans to strategic emerging industrieswith balance exceedi
60、ng1.7 trillionPersonal mobile banking customers516 millionAgriculture-related loanswith balance exceeding3.3 trillionGreen loanswith balance of3.98 trillionwith balance exceeding3 trillion10Financial Highlights202220218As at the end of reporting period (in RMB millions)Total assets39,609,
61、65735,171,38333,345,05830,109,43627,699,540Total loans and advances to customers23,212,31220,667,24518,624,30816,761,31915,419,905 Corporate loans13,826,96612,194,70611,102,7339,955,8219,418,894 Personal loans8,236,5617,944,7817,115,2796,383,6245,636,574 Discounted bills1,148,785527,758406,296421,87
62、4364,437Allowance for impairment losses on loans(1)672,762603,983531,161478,730413,177Investment10,527,2929,257,7608,591,1397,647,1176,754,692Total liabilities36,095,83131,896,12530,435,54327,417,43325,354,657Due to customers29,870,49126,441,77425,134,72622,977,65521,408,934 Corporate deposits14,671
63、,15413,331,46312,944,86012,028,26211,481,141 Personal deposits14,545,30612,497,96811,660,53610,477,7449,436,418 Other deposits199,465250,349261,389234,852268,914 Accrued interest454,566361,994267,941236,797222,461Due to banks and other financial institutions3,185,5642,921,0292,784,2592,266,5731,814,
64、495Equity attributable to equity holders of the parent company3,495,1713,257,7552,893,5022,676,1862,330,001Share capital356,407356,407356,407356,407356,407Net common equity tier 1 capital(2)3,121,0802,886,3782,653,0022,457,2742,232,033Net tier 1 capital(2)3,475,9953,241,3642,872,7922,657,5232,312,14
65、3Net capital base(2)4,281,0793,909,6693,396,1863,121,4792,644,885Risk-weighted assets(2)22,225,27221,690,34920,124,13918,616,88617,190,992Per share data(in RMB yuan)Net asset value per share(3)8.818.157.486.936.30Basic earnings per share0.970.950.860.860.82Diluted earnings per share0.970.950.860.860
66、.82Credit ratingS&P(4)AAAAAMoodys(4)A1A1A1A1A1Notes:(1)Calculated by adding allowance for impairment losses on loans and advances to customers measured at amortised cost with allowance for impairment losses on loans and advances to customers measured at fair value through other comprehensive income.
67、(2)Calculated in accordance with the Capital Regulation.(3)Calculated by dividing equity attributable to equity holders of the parent company after deduction of other equity instruments at the end of the reporting period by the total number of ordinary shares at the end of the reporting period.(4)Th
68、e rating results are in the form of“long-term foreign currency deposits rating”.Financial Data(continued)A n n u a l R e p o r t 2 0 2 211Financial HighlightsFinancial Indicators202220218Profitability(%)Return on average total assets(1)0.971.021.001.081.11Return on weighted average equity
69、(2)11.4312.1511.9513.0513.79Net interest spread(3)1.731.921.972.122.20Net interest margin(4)1.922.112.152.302.36Return on risk-weighted assets(5)1.641.681.641.751.81Ratio of net fee and commission income to operating income15.3615.4516.4016.8317.15Cost-to-income ratio(6)27.4326.3624.7625.7925.71Asse
70、t quality(%)Non-performing loans(“NPLs”)ratio(7)1.381.421.581.431.52Allowance to NPLs(8)209.47205.84180.68199.32175.76Allowance to total loans ratio(9)2.902.922.852.862.68Capital adequacy(%)Common equity tier 1 capital adequacy ratio(10)14.0413.3113.1813.2012.98Tier 1 capital adequacy ratio(10)15.64
71、14.9414.2814.2713.45Capital adequacy ratio(10)19.2618.0216.8816.7715.39Total equity to total assets ratio8.879.318.738.948.47Risk-weighted assets to total assets ratio56.1161.6760.3561.8362.06Notes:(1)Calculated by dividing net profit by the average balance of total assets at the beginning and at th
72、e end of the reporting period.(2)Calculated in accordance with the Rules for the Compilation and Submission of Information Disclosure by Companies that Offer Securities to the Public No.9 Calculation and Disclosure of Return on Net Assets and Earnings per Share(Revision 2010)issued by CSRC.(3)Calcul
73、ated by the spread between yield on average balance of interest-generating assets and cost on average balance of interest-bearing liabilities.(4)Calculated by dividing net interest income by the average balance of interest-generating assets.(5)Calculated by dividing net profit by the average balance
74、 of risk-weighted assets at the beginning and at the end of the reporting period.(6)Calculated by dividing operating expenses(less taxes and surcharges)by operating income.(7)Calculated by dividing the balance of NPLs by total balance of loans and advances to customers.(8)Calculated by dividing allo
75、wance for impairment losses on loans by total balance of NPLs.(9)Calculated by dividing allowance for impairment losses on loans by total balance of loans and advances to customers.(10)Calculated in accordance with the Capital Regulation.Quarterly Financial Data20222021(In RMB millions)Q1Q2Q3Q4Q1Q2Q
76、3Q4Operating income226,858216,930207,331190,322214,120212,286217,489216,985Net profit attributable to equity holders of the parent company90,63380,87394,31694,66185,73077,74388,34896,517Net cash flows from operating activities1,207,219203,186432,146(437,894)612,669(235,123)588,904(605,568)12Chairman
77、s StatementChairman Chen SiqingA n n u a l R e p o r t 2 0 2 213Chairmans StatementThe year 2022 was a highly important year in the history of the development of the Communist Party of China(“CPC”or the“Party”)and the nation and was also an extraordinary year in the development course of ICBC.ICBC a
78、dhered to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and studied and implemented in depth the guiding principles of the 20th CPC National Congress and the decisions and plans of the CPC Central Committee and the State Council.We stayed committed to the general working
79、 principle of pursuing progress while ensuring stability and earnestly putting in place the important requirements of responding effectively to COVID-19,maintaining economic stability,and ensuring security in development.According to the“48-character”guideline of the CPC ICBC Committee,we applied th
80、e new development philosophy,served the new pattern of development and pushed for high-quality development.As a result,we achieved positive results in all work.We continued to adhere to the guidance of Party building theory and strive to improve on modernization of governance standards.Based on the
81、rectification following the disciplinary inspection by the CPC Central Committee,we revised the Articles of Association in a high quality manner pursuant to the latest guiding principles of the CPC Central Committee.While improving on corporate governance,we further strengthened the leadership of th
82、e Party,which consolidated the foundation of the financial development path with Chinese characteristics.We strengthened dynamic connections between the rules of procedure of the CPC ICBC Party Committee and the corporate governance decision-making mechanism,optimized the structure of the Board of D
83、irectors,enhanced the performance of the Board of Supervisors,and revised the Working Regulations for the Executive Committee.These efforts enabled governing subjects to be more fully-played on their roles and provided for a scientific decision-making process.We improved transparency and investor pr
84、otection,refined the communication and interaction mechanism with domestic and overseas investors,and actively promoted environmental,social and governance(ESG)practices.As a result,our governance efficiency further improved.We actively took on missions and put forth efforts on improving the quality
85、 and efficiency of services for the real economy.We earnestly followed the orientation of the central governments policies,scientifically arranged the total amount,structure,pace and price for investment and financing,and took the lead in ensuring proper countercyclical credit supply.RMB denominated
86、 loans of domestic branches increased by RMB2.6 trillion.Meanwhile,we employed financial instruments such as bond,lease and debt-for-equity swaps in a well-coordinated manner,which provided strong support to maintaining stable macroeconomic performance.We adhered to the direction of serving high-qua
87、lity development and allocated more resources to key areas concerning the national economy and the peoples livelihood as well as weak links in economic development.Our balance of loans to manufacturing exceeded RMB3 trillion and loans to strategic emerging industries,green industries,inclusive areas
88、,private sector and agriculture-related areas achieved rapid growth.The interest rate of new loans further declined,and we continued to reduce fees and offer benefits to the real economy.We upheld the people-centric development philosophy and spared no effort in resolving the pressing difficulties a
89、nd problems that concerned them most.We actively developed innovative products,enriched scenarios and improved services.We issued integrated financial service solutions for new urban residents and accelerated the digitalization of financial products and the implementation of elderly-friendly innovat
90、ion in outlets.We made new progress in the building of a bank satisfactory to the people.We pursued security in development in a well-coordinated manner and focused on strengthening the foundation for preventing and mitigating risks.We upheld the value of holistic national security,enhanced the bott
91、om-line thinking,and refined the risk governance system with pragmatic measures.We strengthened the role of the Risk Management Committee in leading and making overall planning of relevant work,expanded the coverage of accredited risk officers,highlighted the risk management responsibilities of the
92、first line of defense,and effectively strengthened internal audit and supervision.In response to new changes in the risk situation,we implemented in depth the Five-pronged Risk Management Approach,namely the overall risk management of domestic and overseas institutions,on-and off-balance sheet busin
93、esses,commercial banking and investment banking and other services,online and offline business,and Head Office and subordinate institutions.Moreover,we improved the joint prevention and control mechanism for“five major markets”,namely,monetary,foreign exchange,bond,stock,and commodity.As a result,ou
94、r risk control became more holistic and effective.Meanwhile,we steadily advanced a new round of asset quality improvement.Our NPL ratio decreased steadily.Our allowance to NPLs and capital adequacy ratio maintained at a relatively high level,further strengthening the foundation of stable development
95、.14Chairmans StatementWe continued to uphold fundamental principles and break new ground and put forth effort to unleash reform drive and vitality.We implemented in depth the Groups strategic plan and substantially advanced the strategic layout of“leveraging our strengths,tackling areas of weaknesse
96、s and solidifying the foundation”.We highlighted our strengths in operation,worked faster to shore up weak links,and strengthened the foundation.We adhered to combining serving national reforms and deepening our own reforms.We formulated a comprehensive reform plan and carried out 117 reform measure
97、s in five key areas.Every effort has been made to build a tech-empowered bank and D-ICBC.We issued the overall work plan for digitalization and launched Mobile Banking 8.0.Positive progress was made in the digitalization and the building of ecosystem of outlets.ICBC led the market in the implementat
98、ion of the pilot program of e-CNY.Closely following the national opening-up policy,we deepened global operations and increased our overseas RMB clearing network institutions to 10.We actively fulfilled our responsibilities as Chair of the BRICS Business Council Chinese Chapter,playing the optimal ro
99、le of the Belt and Road Interbank Regular Cooperation Mechanism(BRBR),and continuously enhanced our capability in serving internal and external circulations.Through the efforts of the past year,the overall quality of ICBCs business development has further improved.At the end of 2022,ICBC Groups tota
100、l assets reached RMB39.6 trillion and net profit stood at RMB361 billion,representing an increase of 3.1%compared to last year.Return on average total assets was 0.97%and return on weighted average equity maintained at a sound level at 11.43%.NPL ratio remained within a moderate range of 1.38%.Capit
101、al adequacy ratio reached 19.26%.The Banks Board of Directors proposed a dividend of RMB3.035(pre-tax)per 10 ordinary shares for 2022,which will be submitted to the Shareholders General Meeting for consideration.Here,on behalf of the Board of Directors,Id like to express my sincere appreciation to a
102、ll sectors of society for your care and assistance to ICBC,to the Board of Supervisors for your effective supervision,and to the Management and all employees for your hard work and contributions.We are forging ahead with devotion and determination and time is our witness.On 1 January 2024,ICBC will
103、celebrate its 40th anniversary of establishment.Since its establishment,ICBC has always been keeping in mind its original aspiration and mission,integrating its own development into the great cause of national progress,the peoples happiness and national rejuvenation,and adhering to professional,stea
104、dy and pragmatic practices.We have actively seized opportunities and responded to challenges,continued to deepen reform and promote transition and achieved new breakthroughs and new progress in reforms.Since the 18th CPC National Congress,we have studied and implemented in depth General Secretary Xi
105、 Jinpings important discourse on financial work and fully carried out the three tasks of serving the real economy,preventing and resolving financial risks and deepening the financial reform.We have firmly striven towards becoming a stronger,better and larger bank and achieved a new leap in the build
106、ing of a world-class and modern financial enterprise with Chinese characteristics.Standing at the historical juncture of inheriting the past and ushering in the future,we will draw nourishment from our 40 years of hard work,uphold the value of integrity leading to prosperity,pursue a path of financi
107、al development with Chinese characteristics and with greater courage,intelligence and drive,and push ICBCs high-quality development to a new level as we embark on a journey in a new era.The year 2023 is the first year to fully implement the guiding principles of the 20th CPC National Congress and a
108、critical year for ICBC to continue its strategic plan.ICBC will earnestly study and implement Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and the guiding principles of the 20th CPC National Congress and fully and faithfully apply the new development philosophy on all f
109、ronts.We will advance all our work around the task of serving Chinese modernization through finance and concentrate efforts on maintaining stable growth,adjusting the structure,fostering new drivers,preventing risks,and breaking new ground.We will further our role as a large state-owned bank in serv
110、ing the new pattern of development and supporting high-quality development,and help set the stage for building a modern socialist country in all respects,and celebrate the 40th anniversary of the establishment of ICBC with excellent performance.Chairman:Chen Siqing30 March 2023A n n u a l R e p o r
111、t 2 0 2 215Presidents StatementPresident Liao Lin16Presidents StatementIn 2022,facing the complex and severe external environment,the Bank fully and faithfully apply the new development philosophy on all fronts,centering on the 20th CPC National Congress and its guiding principles.We acted on the ge
112、neral working principle of pursuing progress while ensuring stability and fully implemented the important requirements of responding effectively to COVID-19,maintaining economic stability,and ensuring security in development.We improved our work through rectification following the disciplinary inspe
113、ction by the CPC Central Committee.We took proactive actions to overcome difficulties and promoted our own high-quality development while serving the new pattern of development.As a result,we delivered an operating performance that improves quality whilst ensuring stability.The core indicators about
114、 the“Strong,Excellent and Large”orientation of development continued to improve.The Bank maintained its position among top large global banks in terms of assets and profit.In terms of being“Strong”,the Banks capital adequacy ratio rose to 19.26%and allowance to NPLs registered 209.47%,maintaining at
115、 a sound level.The balance of asset allowance was nearly RMB800.0 billion,indicating stronger risk resistance.NPL ratio decreased to 1.38%,marking an eighth consecutive quarterly decrease.In terms of being“Excellent”,return on average total assets(“ROA”)stood at 0.97%and return on weighted average e
116、quity(“ROE”)stood at 11.43%.Net interest margin(“NIM”)recorded 1.92%,indicating more profit concessions for the real economy and maintaining at a reasonable range.In terms of being“Large”,total assets rose by 12.6%to RMB39.6 trillion,operating income was RMB841.4 billion,and net profit increased by
117、3.1%and reached a new record high of RMB361.0 billion.The foregoing performance results have fully reflected an overall balance in value creation,market position,risk control and capital constraint and again demonstrated the Banks stable operation feature and strong development resilience as well as
118、 great potential for growth in future.These results were mainly attributed to the Banks efforts in“stability,progress and reform”.“Stability”means effectively ensuring overall economic stability by serving policies and measures to stabilize the economy and effectively controlling risks.Always keepin
119、g in mind the top priorities of the country,we placed our focus of operation on serving the real economy and implemented a full range of policies and follow-up measures to stabilize the economy.Through instruments such as loans,bonds,leasing,and debt-for-equity swaps,we provided a total of over RMB6
120、.4 trillion funds of all types to the real economy.RMB denominated loans of domestic branches increased by RMB2.6 trillion,representing a year-on-year increase of RMB428.3 billion.While maintaining a reasonable growth in volume,we continued to adjust and optimize the structure to make our financial
121、services more adaptable,competitive and inclusive.The Bank maintained the lead in terms of the size of loans to manufacturing,green industries,and sci-tech innovations,and the growth rate of loans for key areas such as inclusive and agriculture-related areas was significantly higher than the growth
122、of total loans.We innovated in supply of financial services and optimized the payment environment,which helped improve the quality and expand the scale of consumption.We intensified support to ensure stable performance in foreign trade and foreign investment and actively served high-standard opening
123、 up and the high-quality development of the Belt and Road.Risk is the biggest variable in business.The Bank adheres to the coordinated development and security,and earnestly implements arrangements to prevent and resolve major economic and financial risks,and adjusts risk prevention and control stra
124、tegies based on the circumstances.Our asset quality is stable overall and all types of risks are generally under control.We advanced the Five-pronged Risk Management Approach in depth,strengthened the bonding force of the three lines of defense,and upgraded the enterprise-wide risk management system
125、.We refined the system of new rules and regulations on credit approval,enriched the application of intelligent risk control,and focused on improving risk governance in key areas and key large accounts.We enhanced joint control of market risks,which effectively responded to fluctuations in global fin
126、ancial markets.We actively share risk control technologies and tools with over 300 peers,thereby helping them to maintain financial stability.“Progress”means continuing to strengthen the foundation of high-quality development by promoting implementation of plans and basic projects.We revised the str
127、ategic plan for the development of the Group to effectively align with the national 14th Five-Year Plan.We adhered to the combination of overall advancement and breakthrough-making in key areas,and accelerated the implementation of the strategic layout of“leveraging our strengths,tackling areas of w
128、eaknesses and solidifying the foundation”.The leading strengths of business segments such as corporate finance,settlement finance,institutional finance and financial markets were consolidated.New achievements were made in strategic focuses including personal finance,foreign exchange business,key are
129、as and urban-rural collaboration and some potential segments have been growing into new growth drivers.Personal financial assets maintained the leading position in terms of scale;international settlement,cross-border RMB settlement,and foreign exchange sale and settlement saw their business value in
130、crease by about 5%,and the ICBC Xingnongtong APP covered over 1,800 counties in the year of launch.A n n u a l R e p o r t 2 0 2 217Presidents StatementWe continued our efforts in fundamental work and in areas that are good for long-term development.Based on our strength in customer base and interac
131、tions among government,business and consumer(GBC),we continued to implement fundamental projects including Net Making and Patching,fund retention,urban-rural collaboration,agency business,merchant marketing,etc.and sped up the formation of the customer ecosystem with coordinated development of micro
132、,small,medium and large enterprises and personal customers.At the end of 2022,corporate customers,cash settlement accounts and merchants all exceeded 10 million,and the number of personal customers increased by 16.72 million to 720 million.The synergistic effect became more apparent,and a record hig
133、h in annual increase in customer deposits exceeding RMB3.4 trillion was set.“Reform”means constantly energizing growth drive through reform,innovation and digitalization.We take reforms as the fundamental driving force and innovation as the first of such driving force,formulated and implemented the
134、comprehensive reform plan,and accelerated connotative development.We deepened mechanisms innovation.We refined the supervision and assessment system,optimized the competitiveness evaluation indicator system,improved the green finance management mechanism,enhanced ESG management efficiency,and booste
135、d the balanced,coordinated,sustainable high-quality development state.We deepened innovation in services,launching series service solutions for new urban residents,rolling out the first personal pension savings product,and continued to expand high-frequency service scenarios concerning peoples livel
136、ihood such as government affairs,medical and pension.We also deepened innovation in channels.We accelerated the building of“Cloud ICBC”,strengthened online and offline integrated operations,enriched functions of“ICBC Sharing Stations”for the benefit of the people,and continued to improve outlets com
137、petitiveness and customer satisfaction.We took digitalization as a new driver of growth.We sped up the development of D-ICBC,promoted digital upgrading of businesses,products and services,and continued to cultivate new growth engines.We launched Mobile Banking 8.0 and ICBC e Life 5.0 and established
138、 an open wealth community.The number of mobile banking personal customers reached 516 million and monthly active users on the mobile end exceeded 174 million,both ranking first in the industry.We upgraded the ECOS and intensified efforts to achieve breakthroughs in core technologies of key areas,fur
139、ther consolidating the technical foundation.The Bank ranked first among domestic banks in terms of new and cumulative numbers of patents granted in the year,and comprehensive technological strength continued to lead the industry.The year 2023 is the first year to fully implement the guiding principl
140、es for the 20th CPC National Congress and a critical year to continue to implement the Banks strategic plan.The greatest truths are the simplest,and hard work is the key.The Bank will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,study and implemen
141、t in depth the guiding principles for the 20th CPC National Congress,act on the political and people-centric nature of financial work,and take solid steps to serve Chinese modernization.We will,with the trust and support of shareholders,customers and all sectors of society,focus on maintaining stabl
142、e growth,adjusting the structure,cultivating new drivers of growth,preventing risks and making a good start for all tasks.We will give back to shareholders and investors and celebrate the 40th anniversary of establishment of ICBC with new progress and new performance achievements in building a world
143、-class and modern financial enterprise with Chinese characteristics.President:Liao Lin 30 March 202318Discussion and AnalysisIn 2022,the global inflation remained at a historic high,major developed economies continued to raise interest rates and scale down their balance sheets,the momentum of world
144、economic recovery weakened,and global financial markets fluctuated sharply.In the face of the complicated and severe domestic and international situation and the impact of multiple unexpected factors,Chinas economy has achieved reasonable growth,the economic aggregate has climbed to a new level,and
145、the high-quality development has achieved new results.Chinas gross domestic product(GDP),fixed asset investment(excluding rural households),and total(RMB-denominated)imports and exports of trade in goods rose by 3.0%,5.1%and 7.7%year on year respectively,while retail sales of consumer goods dropped
146、by 0.2%year on year.The value added of industrial enterprises above designated size,value added of services,and consumer price index(CPI)rose by 3.6%,2.3%and 2.0%year on year respectively.Proactive fiscal policy improved efficiency.China implemented the new combined tax and fee support policy,steppe
147、d up efforts to reduce the burden of bailout,and strengthened the vitality of market players.In 2022,the scale of new tax and fee cuts,tax rebates,and tax and fee deferral exceeded RMB4.2 trillion.It reasonably arranged the debt scale,maintained an appropriate spending intensity,and optimized the st
148、ructure of fiscal expenditure.China issued RMB750.0 billion special government bonds and increased special local government bonds by RMB4.04 trillion.It also allocated financial resources to the grassroots,supported them to“ensure peoples basic livelihood,wages and operation”,and strived to stabiliz
149、e the general macroeconomic situation.ECONOMIC,FINANCIAL AND REGULATORY ENVIRONMENTSPrudent monetary policy was more flexible and moderate.PBC lowered the reserve requirement ratio twice and turned over RMB1.13 trillion of profit to the central government.It applied multiple methods such as relendin
150、g and rediscount,medium-term lending facility and open market operation to reasonably inject liquidity in a short,medium and long term manner.With the structural monetary policy“focusing on key areas,and maintaining reasonable and appropriate pace with up and down adjustments”,PBC gave play to the t
151、riple advantages of aggregate,structure and price,and launched special relending for sci-tech innovation,inclusive elderly care services,transport and logistics sector and equipment upgrading to strengthen precise support for key areas.It guided the establishment of two batches of policy development
152、 financial instruments totaling RMB739.9 billion,to support infrastructure construction with effective investment.PBC guided the Loan Prime Rate(“LPR”)for loans with a term of one year and over five years to decline by 15 basis points and 35 basis points respectively,and promoted the reduction of co
153、mprehensive financing cost of the real economy.It built up a deposit rate market-oriented adjustment mechanism,and stabilized the cost of bank liabilities.It established the dynamic adjustment mechanism of the housing loan interest rate for first-time buyers,and pushed forward the development of a l
154、ong-term real estate mechanism in an orderly manner.The RMB exchange rate basically maintained stable at a reasonable and balanced level.A n n u a l R e p o r t 2 0 2 219Discussion and AnalysisRegulatory policies supported the steady development of the banking sector.The Administrative Measures for
155、Related Party Transactions of Banking Insurance Institutions and the Administrative Measures for the Implementation of the Expected Credit Loss Law of Commercial Banks,etc.were promulgated,and the Administrative Measures for Corporate Governance Supervision of Banking Insurance Institutions was revi
156、sed and issued,to guide financial institutions to strengthen internal governance and improve the long-term risk prevention and control mechanism.The list of systemically important banks was released to strengthen supervision over systemically important banks.The Administrative Measures for Acceptanc
157、e,Discounting and Rediscounting of Commercial Bills was revised and issued to promote the standardized and healthy development of the bill market.To support real economy with financial services,23 measures were introduced,a long-term mechanism was promoted to provide financial services to small and
158、micro enterprises that dare to lend,are willing to lend,able to lend and good at lending,and 16 measures were introduced to support the steady and healthy development of the real estate market and stabilize the overall macroeconomic performance.The individual pension system was officially launched w
159、ith supporting policies,preliminarily forming an individual pension system and management system.More facilitation measures were provided for foreign institutional investors to invest in and raise funds in the Chinese bond market,expanding the two-way opening of the financial market.The financial sy
160、stem ran smoothly.At the end of 2022,the balance of broad money supply(M2)was RMB266.43 trillion,up 11.8%year on year.The existing social financing scale size stood at RMB344.21 trillion,up 9.6%year on year.The outstanding RMB loans reached RMB213.99 trillion,increasing by 11.1%year on year.The bala
161、nce of RMB deposits amounted to RMB258.50 trillion,up 11.3%year on year.The total issuance amount of various bonds in the bond market reached RMB61.45 trillion,basically keeping flat year on year.The major index of stock market fell back,with the Shanghai Composite Index and the Shenzhen Component I
162、ndex dropping by 15.1%and 25.9%respectively over the end of last year.The central parity of RMB against the US dollar was RMB6.9646,a depreciation of 8.5%from the end of last year.Total assets of commercial banks grew steadily,with stable credit asset quality and sufficient risk offsetting capacity
163、on the whole.At the end of 2022,the RMB and foreign-currency assets of commercial banks totaled RMB319.81 trillion,up 10.8%year on year.The balance of NPLs of commercial banks reached RMB2.98 trillion,with a NPL ratio of 1.63%and allowance to NPLs of 205.85%.The capital adequacy ratio was 15.17%.Spe
164、cifically,the RMB and foreign-currency assets of large commercial banks totaled RMB156.26 trillion,up 12.9%year on year.The balance of NPLs of large commercial banks reached RMB1.21 trillion,with a NPL ratio of 1.31%and allowance to NPLs of 245.04%.The capital adequacy ratio was 17.76%.In 2022,ICBC
165、stayed true to the general principle of pursuing progress while ensuring stability,fully and faithfully applied the new development philosophy on all fronts,and worked to create a new pattern of development.The Bank has stepped into a new stage of high-quality development and taken new steps towards
166、 the building of a world-class and modern financial enterprise with Chinese characteristics.The Bank was ranked the 1st place among the Top 1000 World Banks by The Banker,and the 1st place in the list of commercial banks of the Global 500 in Fortune for the tenth consecutive year,and took the 1st pl
167、ace among the Top 500 Banking Brands of Brand Finance for the seventh consecutive year,further demonstrating ICBCs international influence.20Discussion and AnalysisIncome Statement AnalysisIn 2022,the Bank maintained steady progress,improved quality in operation,and continuously improved its capabil
168、ity to achieve balanced,coordinated and sustainable development.The Bank actively performed its responsibilities as a large bank and continued to strengthen its support for the real economy.In the year,the Bank realized a net profit of RMB361,038 million,representing an increase of RMB10,822 million
169、 or 3.1%as compared to the previous year.Return on average total assets stood at 0.97%,and return on weighted average equity was 11.43%.Operating income amounted to RMB841,441 million,representing a decrease of 2.3%.Specifically,net interest income grew by 0.4%to RMB693,687 million;non-interest inco
170、me was RMB147,754 million,down by 13.2%.Operating expenses amounted to RMB240,884 million,representing an increase of 2.0%,and the cost-to-income ratio was 27.43%.Impairment losses on assets were RMB182,419 million.Income tax expense decreased by 17.6%to RMB61,527 million.CHANGES OF KEY INCOME STATE
171、MENT ITEMSIn RMB millions,except for percentagesItem20222021Increase/(decrease)Growth rate(%)Net interest income693,687690,6803,0070.4Non-interest income147,754170,200(22,446)(13.2)Operating income841,441860,880(19,439)(2.3)Less:Operating expenses240,884236,2274,6572.0Less:Impairment losses on asset
172、s182,419202,623(20,204)(10.0)Operating profit418,138422,030(3,892)(0.9)Share of results of associates and joint ventures4,4272,8691,55854.3Profit before taxation422,565424,899(2,334)(0.5)Less:Income tax expense61,52774,683(13,156)(17.6)Net profit361,038350,21610,8223.1Attributable to:Equity holders
173、of the parent company360,483348,33812,1453.5Non-controlling interests5551,878(1,323)(70.4)FINANCIAL STATEMENTS ANALYSIS20 Income Statement Analysis Net Interest Income Interest Income Interest Expense Non-interest Income Operating Expenses Impairment Losses on Assets Share of Results of Associates a
174、nd Joint Ventures Income Tax Expense Summary Geographical Segment Information27 Balance Sheet Analysis Assets Deployment Liabilities Shareholders Equity Off-balance Sheet Items35 Analysis on Statement of Cash Flows35 Reconciliation of Differences between the Financial Statements Prepared under PRC G
175、AAP and Those under IFRSsA n n u a l R e p o r t 2 0 2 221Discussion and AnalysisNet Interest IncomeIn 2022,net interest income was RMB693,687 million,RMB3,007 million or 0.4%higher than that of last year,accounting for 82.4%of the Banks operating income.Interest income grew by RMB118,158 million or
176、 10.2%to RMB1,280,376 million and interest expenses increased by RMB115,151 million or 24.4%to RMB586,689 million.Net interest spread and net interest margin(“NIM”)came at 1.73%and 1.92%respectively,both down 19 basis points from the previous year,largely due to the Banks enhanced support for the re
177、al economy,multiple reductions in the Loan Prime Rate(“LPR”),a steady decrease in loan yield,and a rise in the average deposit interest rate driven by the increasing proportion of time deposits.AVERAGE YIELD OF INTEREST-GENERATING ASSETS AND AVERAGE COST OF INTEREST-BEARING LIABILITIESIn RMB million
178、s,except for percentagesItem20222021Average balanceInterest income/expenseAverage yield/cost(%)Average balanceInterest income/expenseAverage yield/cost(%)AssetsLoans and advances to customers22,248,094900,1494.0519,996,414832,1364.16Investment9,001,876298,7223.327,999,530262,8273.29Due from central
179、banks(2)2,991,64545,4251.522,888,38142,0271.46Due from banks and other financial institutions(3)1,866,88436,0801.931,772,52225,2281.42Total interest-generating assets36,108,4991,280,3763.5532,656,8471,162,2183.56Non-interest-generating assets2,520,5292,659,895Allowance for impairment losses on asset
180、s(683,492)(574,932)Total assets37,945,53634,741,810LiabilitiesDeposits27,364,627480,0831.7524,477,111397,6251.62Due to banks and other financial institutions(3)3,794,53270,7321.863,287,91744,3871.35Debt securities and certificates of deposit issued1,132,76735,8743.171,072,66729,5262.75Total interest
181、-bearing liabilities32,291,926586,6891.8228,837,695471,5381.64Non-interest-bearing liabilities2,030,3171,991,928Total liabilities34,322,24330,829,623Net interest income693,687690,680Net interest spread1.731.92Net interest margin1.922.11Notes:(1)The average balances of interest-generating assets and
182、interest-bearing liabilities represent their daily average balances.The average balances of non-interest-generating assets,non-interest-bearing liabilities and the allowance for impairment losses on assets represent the average of the balances at the beginning of the year and at the end of the year.
183、(2)Due from central banks mainly includes mandatory reserves and surplus reserves with central banks.(3)Due from banks and other financial institutions includes the amount of reverse repurchase agreements,and due to banks and other financial institutions includes the amount of repurchase agreements
184、etc.22Discussion and AnalysisANALYSIS OF CHANGES IN INTEREST INCOME AND EXPENSEIn RMB millionsItemComparison between 2022 and 2021Increase/(decrease)due toNet increase/(decrease)VolumeInterest rateAssetsLoans and advances to customers90,009(21,996)68,013Investment33,4952,40035,895Due from central ba
185、nks1,6651,7333,398Due from banks and other financial institutions1,8129,04010,852Changes in interest income126,981(8,823)118,158LiabilitiesDeposits50,63831,82082,458Due to banks and other financial institutions9,57716,76826,345Debt securities and certificates of deposit issued1,8434,5056,348Changes
186、in interest expenses62,05853,093115,151Changes in net interest income64,923(61,916)3,007Note:Changes in volume are measured by the changes in average balances,while the changes in interest rate are measured by the changes in average interest rates.Changes resulted from the combination of volume and
187、interest rate have been allocated to the changes resulted from business volume.Interest IncomeInterest Income on Loans and Advances to CustomersInterest income on loans and advances to customers was RMB900,149 million,RMB68,013 million or 8.2%higher as compared to that of last year,mainly due to the
188、 increase of 11.3%in the average balance of loans and advances to customers.ANALYSIS OF THE AVERAGE YIELD OF LOANS AND ADVANCES TO CUSTOMERS BY MATURITY STRUCTUREIn RMB millions,except for percentagesItem20222021Average balanceInterest incomeAverage yield(%)Average balanceInterest incomeAverage yiel
189、d(%)Short-term loans4,739,296156,7083.314,045,145142,5493.52Medium to long-term loans17,508,798743,4414.2515,951,269689,5874.32Total loans and advances to customers22,248,094900,1494.0519,996,414832,1364.16A n n u a l R e p o r t 2 0 2 223Discussion and AnalysisANALYSIS OF THE AVERAGE YIELD OF LOANS
190、 AND ADVANCES TO CUSTOMERS BY BUSINESS LINEIn RMB millions,except for percentagesItem20222021Average balanceInterest incomeAverage yield(%)Average balanceInterest incomeAverage yield(%)Corporate loans12,091,996467,3133.8610,787,207439,5754.08Discounted bills866,73515,5461.79380,67810,2662.70Personal
191、 loans7,922,153371,7404.697,415,770349,5724.71Overseas business1,367,21045,5503.331,412,75932,7232.32Total loans and advances to customers22,248,094900,1494.0519,996,414832,1364.16Interest Income on InvestmentInterest income on investment amounted to RMB298,722 million,representing an increase of RM
192、B35,895 million or 13.7%as compared to that of last year,mainly due to the increase of 12.5%in the average balance of investment.Interest Income on Due from Central BanksInterest income on due from central banks was RMB45,425 million,representing an increase of RMB3,398 million or 8.1%as compared to
193、 that of last year,principally due to the rising average interest rate of due from overseas central banks and the increased size of due from domestic central bank.Interest Income on Due from Banks and Other Financial InstitutionsInterest income on due from banks and other financial institutions was
194、RMB36,080 million,representing an increase of RMB10,852 million or 43.0%as compared to that of last year,primarily due to the ascending interest rate of foreign-currency lending funds.24Discussion and AnalysisInterest ExpenseInterest Expense on DepositsInterest expense on deposits amounted to RMB480
195、,083 million,representing an increase of RMB82,458 million or 20.7%over the previous year,primarily due to the increase of 11.8%in the average balance of due to customers and rise of 13 basis points in the average cost.ANALYSIS OF AVERAGE DEPOSIT COST BY PRODUCTSIn RMB millions,except for percentage
196、sItem20222021Average balanceInterest expenseAverage cost(%)Average balanceInterest expenseAverage cost(%)Corporate depositsTime deposits5,803,074150,0112.594,929,388121,2302.46Demand deposits7,405,87868,0240.927,133,85758,6180.82Subtotal13,208,952218,0351.6512,063,245179,8481.49Personal depositsTime
197、 deposits7,742,072223,6072.896,337,635189,1182.98Demand deposits5,407,00717,0070.315,091,92718,6780.37Subtotal13,149,079240,6141.8311,429,562207,7961.82Overseas business1,006,59621,4342.13984,3049,9811.01Total deposits27,364,627480,0831.7524,477,111397,6251.62Interest Expense on Due to Banks and Oth
198、er Financial InstitutionsInterest expense on due to banks and other financial institutions was RMB70,732 million,RMB26,345 million or 59.4%higher than that of last year,principally attributable to the 15.4%increase in the average balance of borrowing funds and the rising average cost year on year as
199、 affected by the factors such as currency and product duration.Interest Expense on Debt Securities and Certificates of Deposit IssuedInterest expense on debt securities and certificates of deposits issued was RMB35,874 million,indicating an increase of RMB6,348 million or 21.5%over last year,mainly
200、due to the ascending interest rates of debt securities,such as certificates of deposit,issued by overseas institutions.A n n u a l R e p o r t 2 0 2 225Discussion and AnalysisNon-interest IncomeIn 2022,non-interest income was RMB147,754 million,which was RMB22,446 million or 13.2%lower than that of
201、last year,accounting for 17.6%of the operating income.Specifically,net fee and commission income decreased by RMB3,759 million or 2.8%to RMB129,265 million,and other non-interest related gains fell by RMB18,687 million or 50.3%to RMB18,489 million.NET FEE AND COMMISSION INCOMEIn RMB millions,except
202、for percentagesItem20222021Increase/(decrease)Growth rate(%)Settlement,clearing business and cash management45,43941,2704,16910.1Personal wealth management and private banking services26,25330,001(3,748)(12.5)Investment banking business19,58622,416(2,830)(12.6)Bank card business17,73616,6791,0576.3C
203、orporate wealth management services14,17215,165(993)(6.5)Guarantee and commitment business8,8039,756(953)(9.8)Asset custody business8,7098,738(29)(0.3)Trust and agency services1,8941,808864.8Other3,2262,89433211.5Fee and commission income145,818148,727(2,909)(2.0)Less:Fee and commission expense16,55
204、315,7038505.4Net fee and commission income129,265133,024(3,759)(2.8)In 2022,the Banks net fee and commission income was RMB129,265 million,a decrease of RMB3,759 million or 2.8%over last year.Specifically,income from settlement,clearing business and cash management increased by RMB4,169 million,main
205、ly driven by an increase in income from third party payment,spot exchange settlement and sale as well as foreign exchange trading business;income from bank card business registered an increase of RMB1,057 million,mainly due to the increase in income from partnership services and acquiring business.A
206、ffected by the volatile capital markets,income from personal wealth management and private banking,corporate wealth management,asset custody and other businesses dropped.The decrease in fee rates for investment banking,guarantee and commitment businesses resulted in a decline in revenue from these b
207、usinesses.26Discussion and AnalysisOTHER NON-INTEREST RELATED GAINSIn RMB millions,except for percentagesItem20222021Increase/(decrease)Growth rate(%)Net trading income8,6108,955(345)(3.9)Net gains on financial investments6,31516,440(10,125)(61.6)Other operating income,net3,56411,781(8,217)(69.7)Tot
208、al18,48937,176(18,687)(50.3)Other non-interest related gains amounted to RMB18,489 million,RMB18,687 million or 50.3%lower than that of the previous year.Specifically,the decrease in net gains on financial investments was primarily due to the decreasing valuation of equity instruments as affected by
209、 volatile capital markets and the unrealized losses generated on bond investments,while the decrease in other net operating income was mainly because of the net losses on exchange and exchange rate products.Operating ExpensesIn RMB millions,except for percentagesItem20222021Increase/(decrease)Growth
210、 rate(%)Staff costs143,501139,3634,1383.0Property and equipment expenses29,03428,8222120.7Taxes and surcharges10,1009,3187828.4Amortisation3,7213,12559619.1Other54,52855,599(1,071)(1.9)Total240,884236,2274,6572.0Impairment Losses on AssetsIn 2022,the Bank set aside the impairment losses on assets of
211、 RMB182,419 million,a decrease of RMB20,204 million or 10.0%as compared to that of last year.Specifically,the impairment losses on loans were RMB143,173 million,indicating a decrease of RMB25,094 million or 14.9%.Please refer to“Note 14.to the Consolidated Financial Statements:Impairment Losses on A
212、ssets;Note 30.to the Consolidated Financial Statements:Impairment Allowance”for details.Share of Results of Associates and Joint VenturesShare of results of associates and joint ventures stood at RMB4,427 million,representing an increase of RMB1,558 million or 54.3%over last year,mainly due to the i
213、ncrease in subsidiaries share of results of associates and joint ventures.Income Tax ExpenseIncome tax expense decreased by RMB13,156 million or 17.6%to RMB61,527 million as compared to the previous year.The effective tax rate stood at 14.56%,lower than the statutory tax rate of 25%,primarily becaus
214、e the interest income on Chinese government bonds and local government bonds were exempted from tax under the relevant tax law.A n n u a l R e p o r t 2 0 2 227Discussion and AnalysisSummary Geographical Segment InformationIn RMB millions,except for percentagesItem20222021AmountPercentage(%)AmountPe
215、rcentage(%)Operating income841,441100.0860,880100.0 Head Office84,25710.0135,41915.8 Yangtze River Delta148,52717.7136,54415.9 Pearl River Delta113,45913.5107,47412.5 Bohai Rim153,82218.3145,66016.9 Central China114,80913.6105,35712.2 Western China130,80215.5126,79914.7 Northeastern China29,2143.529
216、,5823.4 Overseas and other66,5517.974,0458.6Profit before taxation422,565100.0424,899100.0 Head Office2570.158,03113.6 Yangtze River Delta98,13323.283,92019.8 Pearl River Delta59,68714.159,69914.1 Bohai Rim95,09422.564,38315.2 Central China60,07914.247,11511.1 Western China61,84114.665,47715.4 North
217、eastern China11,8782.81,2590.3 Overseas and other35,5968.545,01510.5Note:Please see“Note 49.to the Consolidated Financial Statements:Segment Information”for details.Balance Sheet AnalysisIn 2022,in response to the changes in external development trends,the Bank earnestly implemented macro-economic a
218、nd financial policies and regulatory requirements,enhanced the service efficiency for the real economy on all fronts,continued to promote the balanced,coordinated and sustainable development of asset and liability management business,and holistically arranged the aggregate amount,structure and pace
219、of assets and liabilities.While maintaining a moderate growth of the total assets and liabilities,the Bank deeply promoted the continuous optimization of the asset and liability structure,coordinated development of quantity and price,and realized effective promotion in the quality of assets and liab
220、ilities and proper growth in their quantity.Assets DeploymentAs at the end of 2022,total assets of the Bank amounted to RMB39,609,657 million,RMB4,438,274 million or 12.6%higher than that at the end of the previous year.Specifically,total loans and advances to customers(collectively referred to as“t
221、otal loans”)increased by RMB2,545,067 million or 12.3%to RMB23,212,312 million,investment increased by RMB1,269,532 million or 13.7%to RMB10,527,292 million,and cash and balances with central banks increased by RMB329,454 million or 10.6%to RMB3,427,892 million.28Discussion and Analysis2022202157.0%
222、26.6%8.7%2.6%2.2%2.9%57.2%26.3%8.8%2.4%1.9%3.4%Structure of assetsNet loans and advances to customersInvestmentCash and balances with central banksDue from banks and other financial institutionsReverse repurchase agreementsOtherIn RMB millions,except for percentagesItemAt 31 December 2022At 31 Decem
223、ber 2021AmountPercentage(%)AmountPercentage(%)Total loans and advances to customers23,212,31220,667,245Add:Accrued interest53,56045,719Less:Allowance for impairment losses on loans and advances to customers measured at amortised cost672,224603,764Net loans and advances to customers(1)22,593,64857.02
224、0,109,20057.2Investment10,527,29226.69,257,76026.3Cash and balances with central banks3,427,8928.73,098,4388.8Due from banks and other financial institutions1,042,5042.6827,1502.4Reverse repurchase agreements864,0672.2663,4961.9Other1,154,2542.91,215,3393.4Total assets39,609,657100.035,171,383100.0N
225、ote:(1)Please see“Note 23.to the Consolidated Financial Statements:Loans and Advances to Customers”.LoanThe Bank planned and managed the scale,pace and structure of credit grants,and continued to improve the quality and efficiency of serving the real economy.It actively supported the construction of
226、 ongoing infrastructure projects and major projects making up for deficiencies in new urbanization and transportation areas,and effectively implemented the rural revitalization strategy.It grasped the development opportunities of green finance comprehensively,and continued to increase its investment
227、 and financing support for key fields of the advanced manufacturing industry such as intelligent manufacturing,digital economy,strategic emerging industries and transformation and upgrading of traditional industries.As at the end of 2022,total loans amounted to RMB23,212,312 million,RMB2,545,067 mil
228、lion or 12.3%higher compared with the end of the previous year,of which,RMB denominated loans of domestic branches were RMB21,482,964 million,up by RMB2,553,039 million or 13.5%.A n n u a l R e p o r t 2 0 2 229Discussion and Analysis59.6%4.9%35.5%59.0%2.6%38.4%20222021Distribution of loans by busin
229、ess lineCorporate loansDiscounted billsPersonal loansDISTRIBUTION OF LOANS BY BUSINESS LINEIn RMB millions,except for percentagesItemAt 31 December 2022At 31 December 2021AmountPercentage(%)AmountPercentage(%)Corporate loans13,826,96659.612,194,70659.0 Short-term corporate loans3,150,51713.52,737,74
230、213.2 Medium to long-term corporate loans10,676,44946.19,456,96445.8Discounted bills1,148,7854.9527,7582.6Personal loans8,236,56135.57,944,78138.4 Residential mortgages6,431,99127.76,362,68530.8 Personal consumption loans234,3781.1187,3160.9 Personal business loans930,0404.0702,4413.4 Credit card ov
231、erdrafts640,1522.7692,3393.3Total23,212,312100.020,667,245100.0The Bank continued to strengthen its support for manufacturing,strategic emerging industries,green finance,inclusive finance,rural revitalization and other key fields,and steadily carried forward the corporate credit distribution to“New
232、manufacturing,New services,New basic industries and High-tech industries”customer groups.As a result,the Banks corporate loans in key strategic areas such as the Beijing-Tianjin-Hebei region,Yangtze River Delta,Guangdong-Hong Kong-Macao Greater Bay Area,Central China and Chengdu-Chongqing economic c
233、ircle continued to grow.Corporate loans rose by RMB1,632,260 million or 13.4%from the end of last year.Specifically,short-term corporate loans and medium to long-term corporate loans increased by RMB412,775 million and RMB1,219,485 million respectively.The Bank took full advantages of the popularity
234、 of bill business among enterprises and the flexibility in services,and dedicated efforts to meeting enterprises demands for bill discounting,boosting the development of the real economy.The amount of discounted bills increased by RMB621,027 million,a 117.7%growth of the number by the end of last ye
235、ar.Focusing on the customers,the Bank strengthened the overall planning of personal loan business,stepped up market expansion of consumption and business loan products through multiple channels,and continuously optimized the digital inclusive product system,to satisfy customers diversified financing
236、 needs and promote sustainable recovery of consumption.Personal loans increased by RMB291,780 million or 3.7%from the end of last year.Specifically,personal consumption loans grew by RMB47,062 million or 25.1%;and personal business loans increased by RMB227,599 million or 32.4%.Please see the sectio
237、n headed“Discussion and Analysis Risk Management”for detailed analysis of the Banks loans and their quality.30Discussion and AnalysisInvestmentIn 2022,the Bank supported the implementation of the national development strategies,stepped up efforts to serve the real economy,actively conducted bond inv
238、estments,and reasonably arranged the variety and term structure of the bond portfolio to enhance the efficiency of fund use.As at the end of 2022,investment amounted to RMB10,527,292 million,representing an increase of RMB1,269,532 million or 13.7%from the end of the previous year.Among these,bonds
239、rose by RMB1,242,154 million or 14.1%to RMB10,059,499 million.In RMB millions,except for percentagesItemAt 31 December 2022At 31 December 2021AmountPercentage(%)AmountPercentage(%)Bonds10,059,49995.68,817,34595.2Equity instruments190,8691.8190,1862.1Funds and other166,4341.6148,1661.6Accrued interes
240、t110,4901.0102,0631.1Total10,527,292100.09,257,760100.0DISTRIBUTION OF INVESTMENT IN BONDS BY ISSUERSIn RMB millions,except for percentagesItemAt 31 December 2022At 31 December 2021AmountPercentage(%)AmountPercentage(%)Government bonds7,419,00573.86,371,60772.3Central bank bonds56,8170.538,2070.4Pol
241、icy bank bonds761,7367.6754,7198.6Other bonds1,821,94118.11,652,81218.7Total10,059,499100.08,817,345100.0In terms of distribution by issuers,government bonds increased by RMB1,047,398 million or 16.4%over the end of last year,mainly due to the increase in local government bonds and Chinese governmen
242、t bonds;central bank bonds increased by RMB18,610 million or 48.7%;policy bank bonds went up by RMB7,017 million or 0.9%;and other bonds increased by RMB169,129 million or 10.2%,mainly because the Bank appropriately increased its investments in credit bonds with sound liquidity and high qualificatio
243、n.A n n u a l R e p o r t 2 0 2 231Discussion and AnalysisDISTRIBUTION OF INVESTMENT IN BONDS BY REMAINING MATURITYIn RMB millions,except for percentagesRemaining maturityAt 31 December 2022At 31 December 2021AmountPercentage(%)AmountPercentage(%)Undated(1)2840.01670.0Less than 3 months694,4556.9514
244、,6855.83 to 12 months1,371,87213.61,228,14413.91 to 5 years3,649,19336.33,517,41539.9Over 5 years4,343,69543.23,556,93440.4Total10,059,499100.08,817,345100.0Note:(1)Refers to overdue bonds.DISTRIBUTION OF INVESTMENT IN BONDS BY CURRENCYIn RMB millions,except for percentagesItemAt 31 December 2022At
245、31 December 2021AmountPercentage(%)AmountPercentage(%)RMB-denominated bonds9,213,23091.68,110,06192.0USD-denominated bonds559,7535.6450,4475.1Other foreign currency bonds286,5162.8256,8372.9Total10,059,499100.08,817,345100.0In terms of currency structure,RMB-denominated bonds rose by RMB1,103,169 mi
246、llion or 13.6%over the end of last year;USD-denominated bonds increased by an equivalent of RMB109,306 million or 24.3%;other foreign currency bonds increased by an equivalent of RMB29,679 million or 11.6%.During the reporting period,the Bank improved the investment portfolio structure of foreign cu
247、rrency bonds,reasonably arranged the currency structure in consideration of bond liquidity,security and profitability,and improved the efficiency of foreign-currency fund use.DISTRIBUTION OF INVESTMENT BY MEASURING METHODIn RMB millions,except for percentagesItemAt 31 December 2022At 31 December 202
248、1AmountPercentage(%)AmountPercentage(%)Financial investments measured at fair value through profit or loss714,8796.8623,2236.7Financial investments measured at fair value through other comprehensive income2,178,01820.71,803,60419.5Financial investments measured at amortised cost7,634,39572.56,830,93
249、373.8Total10,527,292100.09,257,760100.032Discussion and AnalysisAs at the end of 2022,the Group held RMB1,758,450 million of financial bonds1,including RMB761,736 million of policy bank bonds and RMB996,714 million of bonds issued by banks and non-bank financial institutions,accounting for 43.3%and
250、56.7%of financial bonds,respectively.TOP 10 FINANCIAL BONDS HELD BY THE BANKIn RMB millions,except for percentagesBond nameNominal valueAnnualinterest rate(%)Maturity dateAllowance for impairment losses(1)Policy bank bonds 201522,1174.2113 April 2025Policy bank bonds 202220,9001.655 September 2023Po
251、licy bank bonds 202019,4603.2323 March 2030Policy bank bonds 202018,4462.9617 April 2030Policy bank bonds 201918,2633.488 January 2029Policy bank bonds 201917,6413.4520 September 2029Policy bank bonds 201516,3894.297 April 2025Policy bank bonds 202015,1453.7926 October 2030Policy bank bonds 202014,2
252、443.7020 October 2030Policy bank bonds 202013,5003.7416 November 2030Note:(1)Excludes stage 1 allowance for impairment losses set aside in accordance with the expected credit loss model.Reverse Repurchase AgreementsReverse repurchase agreements amounted to RMB864,067 million,RMB200,571 million or 30
253、.2%higher than that at the end of the previous year,principally because the Bank reasonably arranged fund operation strategies based on fund changes and moderately increased the lending size.LiabilitiesThe Bank fully implemented regulatory requirements,established a liability quality management syst
254、em commensurate with the size and complexity of liabilities,set up an organizational system and governance structure for liability quality,and defined the management strategy and policy for liability quality that are consistent with the business strategy,risk appetite and overall business characteri
255、stics.The Bank attached great importance to the control of total quantity,structure and price of liabilities,and promoted the coordinated development of deposit quantity and price.It strengthened the basic work of liability quality management,consolidated the customer base,and enhanced the service c
256、apacity.As a result,the liability business achieved steady development and relevant indicators met regulatory requirements.As at the end of 2022,total liabilities reached RMB36,095,831 million,an increase of RMB4,199,706 million or 13.2%compared with the end of last year.1 Financial bonds refer to t
257、he debt securities issued by financial institutions on the bond market,including bonds issued by policy banks,banks and non-bank financial institutions but excluding debt securities related to restructuring and central bank bonds.A n n u a l R e p o r t 2 0 2 233Discussion and Analysis2022202182.8%8
258、.8%1.6%2.5%4.3%82.9%9.2%1.1%2.5%4.3%Structure of liabilitiesDue to customersDue to banks and other financial institutionsRepurchase agreementsDebt securities issuedOtherIn RMB millions,except for percentagesItemAt 31 December 2022At 31 December 2021AmountPercentage(%)AmountPercentage(%)Due to custom
259、ers29,870,49182.826,441,77482.9Due to banks and other financial institutions3,185,5648.82,921,0299.2Repurchase agreements574,7781.6365,9431.1Debt securities issued905,9532.5791,3752.5Other1,559,0454.31,376,0044.3Total liabilities36,095,831100.031,896,125100.0Due to CustomersDue to customers is the B
260、anks main source of funds.As at the end of 2022,due to customers was RMB29,870,491 million,RMB3,428,717 million or 13.0%higher than that at the end of the previous year.In terms of customer structure,corporate deposits increased by RMB1,339,691 million or 10.0%;and personal deposits increased by RMB
261、2,047,338 million or 16.4%.In terms of maturity structure,time deposits increased by RMB2,243,078 million or 17.4%,while demand deposits increased by RMB1,143,951 million or 8.9%.In terms of currency structure,RMB deposits stood at RMB28,153,014 million,an increase of RMB3,238,490 million or 13.0%.F
262、oreign currency deposits were equivalent to RMB1,717,477 million,an increase of RMB190,227 million or 12.5%.34Discussion and Analysis2022202150.4%47.3%0.9%1.4%49.1%48.7%0.7%1.5%Distribution of due to customers by business lineCorporate depositsPersonal depositsOther depositsAccrued interestDISTRIBUT
263、ION OF DUE TO CUSTOMERS BY BUSINESS LINEIn RMB millions,except for percentagesItemAt 31 December 2022At 31 December 2021AmountPercentage(%)AmountPercentage(%)Corporate deposits Time deposits6,594,89822.15,798,35321.9 Demand deposits8,076,25627.07,533,11028.5Subtotal14,671,15449.113,331,46350.4Person
264、al deposits Time deposits8,553,91928.67,107,38626.9 Demand deposits5,991,38720.15,390,58220.4Subtotal14,545,30648.712,497,96847.3Other deposits(1)199,4650.7250,3490.9Accrued interest454,5661.5361,9941.4Total29,870,491100.026,441,774100.0Note:(1)Includes outward remittance and remittance payables.DIS
265、TRIBUTION OF DUE TO CUSTOMERS BY GEOGRAPHIC AREAIn RMB millions,except for percentagesItemAt 31 December 2022At 31 December 2021AmountPercentage(%)AmountPercentage(%)Head Office35,5790.138,2900.1Yangtze River Delta6,249,75420.95,436,28220.6Pearl River Delta4,048,16413.63,495,32513.2Bohai Rim7,629,31
266、225.56,885,41126.0Central China4,455,78214.93,900,44114.8Western China4,776,28516.04,320,35516.3Northeastern China1,608,5435.41,410,3765.3Overseas and other1,067,0723.6955,2943.7Total29,870,491100.026,441,774100.0A n n u a l R e p o r t 2 0 2 235Discussion and AnalysisRepurchase AgreementsRepurchase
267、 agreements amounted to RMB574,778 million,RMB208,835 million or 57.1%higher than that at the end of the previous year,principally because the Bank moderately borrowed funds based on management needs.Shareholders EquityAs at the end of 2022,shareholders equity totaled RMB3,513,826 million,RMB238,568
268、 million or 7.3%higher than that at the end of the previous year.Equity attributable to equity holders of the parent company recorded an increase of RMB237,416 million or 7.3%to RMB3,495,171 million.Please refer to the“Consolidated Statement of Changes in Equity”for details.Off-balance Sheet ItemsTh
269、e off-balance sheet items of the Bank mainly include derivative financial instruments,contingencies and commitments.For details on the nominal amount and fair value of derivatives financial instruments,please refer to“Note 21.to the Consolidated Financial Statements:Derivative Financial Instruments”
270、.For details on contingencies and commitments,please refer to“Note 47.to the Consolidated Financial Statements:Commitments and Contingent Liabilities”.Analysis on Statement of Cash FlowsNet cash inflows from operating activities amounted to RMB1,404,657 million,representing an increase of RMB1,043,7
271、75 million as compared to last year,principally due to the increase of net increase of due to customers.Specifically,cash outflows of operating assets increased by RMB1,076,641 million;and cash inflows of operating liabilities increased by RMB2,130,320 million.Net cash outflows from investing activi
272、ties amounted to RMB910,621 million.Specifically,cash inflows were RMB3,531,388 million,representing an increase of RMB812,469 million over last year,mainly due to the increased cash proceeds from the sale and redemption of financial investments;and cash outflows were RMB4,442,009 million,representi
273、ng an increase of RMB1,048,534 million,mainly due to the increase in cash payment for financial investments.Net cash outflows from financing activities amounted to RMB64,789 million.Specifically,cash inflows were RMB955,862 million,representing a decrease of RMB19,372 million over last year,mainly b
274、ecause no new preference shares,perpetual bonds or other equity instruments were issued in the year;and cash outflows were RMB1,020,651 million,representing an increase of RMB33,864 million,mainly due to the increased cash payment for repayment of debt securities.Reconciliation of Differences betwee
275、n the Financial Statements Prepared under PRC GAAP and Those under IFRSsIn respect of the financial statements of the Bank prepared under PRC GAAP and those under IFRSs,net profit attributable to equity holders of the parent company for the year ended 31 December 2022 and equity attributable to equi
276、ty holders of the parent company as at the end of the reporting period have no differences.36Discussion and AnalysisSUMMARY OPERATING SEGMENT INFORMATIONIn RMB millions,except for percentagesItem20222021AmountPercentage(%)AmountPercentage(%)Operating income841,441100.0860,880100.0 Corporate banking3
277、88,91546.2398,37346.3 Personal banking346,10341.1346,17240.2 Treasury operations100,37412.0111,27812.9 Other6,0490.75,0570.6Profit before taxation422,565100.0424,899100.0 Corporate banking165,77139.2140,56933.1 Personal banking198,35546.9195,65846.0 Treasury operations52,74012.585,32620.1 Other5,699
278、1.43,3460.8Note:Please see“Note 49.to the Consolidated Financial Statements:Segment Information”for details.Corporate BankingInsisting on making efforts early on and making targeted and appropriate efforts,the Bank deepened the corporate credit layout of new manufacturing,new services,new basic indu
279、stries and high-tech customer groups,and constantly improved the adaptability and competitiveness of services for the real economy.The Bank increased the counter-and cross-cyclical credit supply,and carried out a series of activities to help stabilize the macro-economy.It was the first in the indust
280、ry to launch the campaign of“financing 10,000 enterprises to help stabilize the macro-economy”,and held the cloud signing activity of“trillion financing for 100 big projects to promote investment and stabilize economic growth”.The Bank strengthened the innovation of corporate digital product system,
281、upgraded the digital industrial finance platforms such as ICBC Finance Pool and ICBC Chain,built the“government service+finance”and“industry+finance”ecosystem,and effectively empowered the digital government building and corporate digital transformation.At the end of 2022,corporate loans reached RMB
282、13,826,966 million,representing an increase of RMB1,632,260 million or 13.4%since the end of last year.Corporate deposits stood at RMB14,671,154 million,representing an increase of RMB1,339,691 million or 10.0%.BUSINESS OVERVIEW36 Corporate Banking42 Personal Banking45 Asset Management Services46 Fi
283、nancial Market Business47 FinTech50 Internet Finance53 Outlet Building and Service Improvement54 Human Resources Management,Employees and Institutions56 Internationalized Operation60 Diversified Operation and Subsidiary Management 63 Major Controlled Subsidiaries and Equity Participating Company A n
284、 n u a l R e p o r t 2 0 2 237Discussion and Analysis New breakthroughs have been achieved in customer base.The Bank deeply conducted the“Net Making and Patching”program,expanded the customer base,improved customer quality,activated customer transactions,and enhanced customer expansion and maintenan
285、ce capability.While focusing on marketing to four types of high-quality customers,i.e.,central enterprises,local state-owned enterprises,multinational enterprises and listed companies,the Bank vigorously expanded medium-sized enterprise customer groups.At the end of 2022,the number of corporate cust
286、omers increased by 1,002 thousand over the end of the previous year to 10,693 thousand,maintaining a leading position among peers by total number and growth of corporate customers.The Bank served the high-quality development of the manufacturing.It carried out the campaign of“Financial Service Quali
287、ty Enhancement Program for Manufacturing”,and launched innovative measures such as“professional layout,special list,specific assessment and dedicated resources”.At Offshore wind power project in Jiazi Town,Shanwei City,Guangdong Provincethe end of 2022,loans to manufacturing exceeded RMB3 trillion,r
288、anking first among peers in terms of both the balance and increment of loans to manufacturing,medium to long-term loans to manufacturing and credit loans to manufacturing.The Bank supported self-reliance and self-enhancement in advanced science and technology.The Bank carried out the campaign of“Chu
289、nmiao Action”targeting high and new technology enterprises,enterprises featuring“Specialization,Refinement,Differentiation and Innovation”and other key customer groups,and launched the campaign of“Financial Service for National High-tech Industrial Development Zones and High-tech Enterprises”in conj
290、unction with the Torch High Technology Industry Development Center of the Ministry of Science and Technology.At the end of 2022,the balance of loans to enterprises in the high-tech fields supported by the state and that of loans to strategic emerging industries reached RMB1.23 trillion and RMB1.75 t
291、rillion respectively.38Discussion and Analysis The Bank provided comprehensive financial services for private enterprises.It cooperated with the All-China Federation of Industry and Commerce to jointly carry out the campaign of sci-tech innovation in financial services for private enterprises,to hel
292、p private enterprises accelerate sci-tech innovation.At the end of 2022,the balance of loans to private enterprises reached RMB3.77 trillion.The Bank drove green development with green finance.It actively supported green and low-carbon transformation,especially the financial needs of green industrie
293、s such as clean energy and green transportation.It took full advantage of structural monetary policy tools such as carbon emission reduction support tools and the clean and efficient use of coal.At the end of 2022,the balance of green loans(under the CBIRCs criteria)amounted to RMB3,978,458 million.
294、The Bank,as the lead underwriter,underwrote RMB56,338 million green bonds in China in the year.The Bank actively integrated into the regional coordinated development strategy.It stepped up financial support focusing on coordinated development of the Beijing-Tianjin-Hebei region,integrated developmen
295、t of the Yangtze River Delta,Guangdong-Hong Kong-Macao Greater Bay Area,the rise of Central China,and the Chengdu-Chongqing economic circle.At the end of 2022,the balance of RMB corporate loans in key regions reached RMB8.81 trillion,accounting for 71.7%of the balance of RMB corporate loans of domes
296、tic branches,representing an increase of RMB1.27 trillion over the end of the previous year.202280,762.5675,331.1074,551.6065,948.9857,983.5354,897.0020212020Corporate depositsUnit:RMB100 millionsTime depositsDemand depositsCorporate loans of domestic branchesby industry of loan customers25.1%15.5%1
297、5.1%12.0%9.6%5.8%4.2%2.9%2.7%1.8%5.3%Transportation,storage and postal servicesManufacturingLeasing and commercial servicesWater,environment and public utility managementProduction and supply of electricity,heating,gas and waterReal estateWholesale and retailConstructionScience,education,culture and
298、 sanitationMiningOtherInclusive FinanceDriven by innovation and transformation,the Bank further developed the“digital inclusive”model,improved the product system,and innovated the service model.It continuously improved the comprehensive services of inclusive finance to promote the sustainable and hi
299、gh-quality development of the inclusive finance sector.The Bank was rated the best in the regulatory evaluation of financial services of commercial banks for small and micro enterprises conducted by CBIRC for two consecutive years.At the end of 2022,inclusive small and micro enterprise loans amounte
300、d to RMB1,550,316 million,representing an increase of RMB451,304 million or 41.1%over the beginning of the year.Inclusive small and micro enterprise loan customers numbered 1,016 thousand,representing an increase of 221 thousand.The average interest rate of inclusive small and micro enterprise loans
301、 granted in 2022 was 3.84%.The balance of agriculture-related loans stood at RMB3,300,196 million,representing an increase of RMB648,976 million or 24.5%.The average interest rate of agriculture-related loans granted in 2022 was 3.86%,down 27 basis points from the previous year.The Bank had 355 smal
302、l and micro financial business centers.The Bank further developed digital inclusive services and continued to refine the three major digital inclusive product systems,namely,Online Revolving Loan,Quick Lending for Operation and Digital Supply Chain.In terms of Online Revolving Loan,the Bank launched
303、 e-Mortgage Quick Loan,an innovative online mortgage service that enables whole-process online handling of mortgage services.It enriched the online assessment function for e-Enterprise Quick Loan based on nonstandard collateral such as factory buildings and commercial buildings.In terms A n n u a l
304、R e p o r t 2 0 2 239Discussion and Analysisretailing,accommodation,catering,and foreign trade.The Bank conscientiously implemented the policy of deferred repayment of principal and interest,well conducted fund continuation services,improved online loan renewal procedures,and enabled customer self-s
305、ervice application and automatic system approval.The Bank strengthened the dual supply of credit funds and business opportunities,built a comprehensive financial service system of“financing,consulting and commercial services”for small and micro enterprises,and created a sound development ecosystem.T
306、he Bank promoted a series of activities such as“ICBC Inclusive Finance Travel”and“Ten Thousand Small and Micro Enterprises Growth Plan”,and provided small and micro enterprises with a package of comprehensive financial services,including financing,settlement and payroll payment agency service.“ICBC
307、Business Matchmaker”,a cross-border matchmaking service platform,helped small and micro enterprises access industrial and supply chains,attracted more than 170,000 enterprises from 75 countries and regions,and promoted more than 16,000 cooperation intentions.of Quick Lending for Operation,the Bank c
308、reated national scenarios such as settlement,taxation,employment and cross-border business,as well as regional scenarios including planting,breeding,and specialized markets.It launched“Merchant Loan”based on acquiring information to effectively support inclusive long-tail customers such as self-empl
309、oyed businesses.In terms of Digital Supply Chain,the Bank actively further enhanced cooperation with leading enterprises in key industries,built a financial service system for industrial chain scenarios,and launched customized online financing products to effectively meet the diversified financial n
310、eeds of production,purchase and sales.It established a supply chain-related financial service platform and accelerated the promotion of platform customization and full-scenario financing services.The Bank shouldered the responsibilities as a large bank to help enterprises solve difficulties.Focusing
311、 on key areas and weak links,the Bank refined and implemented 19 special measures to strengthen financial services and solve difficulties for small and micro customers.It improved the emergency financing service system,and enhanced the financial support for the industries such as wholesale and“ICBC
312、Xingnongtong”APP,an innovative financial product of the Bank,was launched to help improve the rural financial service system and facilitate rural revitalization.40Discussion and Analysis Following the development of“digital inclusiveness”,the Bank formed a financing risk management system characteri
313、zed by“data driven,intelligent warning,dynamic management and continuous operation”,which further consolidated the foundation of risk management.The Bank constantly optimized and iterated access,rating and credit models,and accurately judged customers substantial risk status through model control,on
314、line and offline cross-validation,and other methods.It strengthened anti-fake and anti-fraud work,selected customer groups with good credit and stable operation,and strictly controlled customer access.By comprehensively integrating internal and external data sources such as financing,settlement,just
315、ice,credit reference,taxation and customs,the Bank built a“1+N”intelligent risk control system adapted to the risk characteristics of small and micro enterprises,in order to accurately identify the risk changes during the period of financing.It strengthened the dynamic risk monitoring and early warn
316、ing,and established a risk control mechanism of“off-site warning by the Head Office+on-site verification by branches”.Institutional Banking The reform services in the key areas of China have been deepened.The Bank served the integrated fiscal budget reform,and was the first in the industry to launch
317、 a digital integrated system of fiscal budget management.The Bank exerted its utmost to render supporting financial services for the overall reform of social security,constantly improved the features of“ICBC e Social Security”service,and continued to expand the coverage of“social security and bankin
318、g integrated outlets”.The Bank energetically assisted with the building of a mobile payment and clearing system for medical insurance,and comprehensively promoted the online,convenient and information technology-based medical insurance public services.“ICBC Cloud Healthcare”,an intelligent healthcar
319、e open platform,was launched to provide“finance+industry”comprehensive intelligent healthcare scenario program for medical management departments and healthcare institutions at all levels.The Bank established an all-in-one service system “Intelligent Education”,and took the lead in the industry to l
320、aunch the“Intelligent Vocational Education Cloud”to advance the development of vocational education.The Bank established an industry-leading ICBC Anxin fund supervision platform to cooperate with education authorities in the supervision of education and training funds,and assist in supervising more
321、than 33,000 education and training institutions.Closely focusing on the reform of judicial system,the Bank took the lead in the industry to launch the“Intelligent Politics and Laws”comprehensive service platform,helped judicial agencies at all levels in China to achieve the whole-process refined man
322、agement of case funds,improve the efficiency of return of case funds,and reduce the case cycle.Financial market services were further developed in all respects.The Bank strengthened the collaboration with development financial institutions and policy banks,and gave play to the complementary advantag
323、es to meet the financing needs of national infrastructure and major projects.It enhanced the syndicate cooperation of strategic projects such as equipment manufacturing,green energy and infrastructure connectivity,and consolidated and promoted the cooperation of the Belt and Road development project
324、s.The Bank continued to strengthen the connection of financial infrastructure services,and was among those in the industry which first obtained the qualification of depository bank designated by Shanghai Futures Exchange for commodity exchange,first conducted registration cooperation in warehouse re
325、ceipt pledge and completed financing registration with Dalian Commodity Exchange,and first obtained the qualification of settlement bank for connectivity cooperation in the domestic bond market.It was also among those which were first allowed to engage the margin depository business on Guangzhou Fut
326、ures Exchange.The Bank established a new model of financial services for the real economy,strengthened the innovation of the investment and loan interconnection between banking and securities institutions,and gave play to the complementary advantages of banking and insurance institutions.The Bank wo
327、rked with Dalian Commodity Exchange to promote the establishment of the“standard delivery warehouse for pigs”in Dazhou City,Sichuan Province,in order to help upgrade the local farming industry.It provided bill brokerage services for more than 8,000 corporate customers and gathered new momentum to se
328、rve small and micro enterprises.The output of FinTech had new bright spots.The Bank provided 54 interbank customers with FinTech service programs such as anti-money laundering and risk management,and won the“Outstanding Contribution Award for Financial Risk Control”at the 2022 China Fintech Research
329、 Conference.A n n u a l R e p o r t 2 0 2 241Discussion and AnalysisSettlement and Cash Management The Bank promoted the digital transformation and development of settlement finance,pushed forward the process optimization and intelligent transformation of the operation mode,and established a new mod
330、el of ecological marketing services for settlement financial scenarios covering large,medium,small and micro customers.It actively explored supply chain,industrial chain and“financial+non-financial”services,and constantly diversified services.The Bank actively responded to and implemented the nation
331、al policy of reducing fees,and steadily promoted the reduction of fees for small and micro enterprises and self-employed businesses.The Bank independently developed a treasury information system,gave full play to the advantages of cash management products and services,met the capital management need
332、s in the building of enterprise treasury system through product output,and enabled the financial digital transformation of large domestic enterprises.In line with the development trend of global financial and asset management,the Bank boosted the global treasury management of corporate customers wit
333、h the help of“zero time lag”information decision-making support,efficient and safe global capital settlement and cross-border position management,rich and comprehensive capital appreciation products and risk mitigation tools.It was awarded the“Best International Cash Management Bank”by The Asian Banker for seven consecutive years and the“Best Global Cash Management Bank”by Treasury China for four