Industrial and Commercial Bank of China : Announcement Regarding the Audit Results Issued by the National Audit Office

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Stock Code: 1398

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ANNOUNCEMENT REGARDING THE AUDIT RESULTS

ISSUED BY THE NATIONAL AUDIT OFFICE

In 2017, the National Audit Office of the People's Republic of China (the "National Audit Office") conducted an audit on the assets, liabilities, profits and losses of Industrial and Commercial Bank of China Limited (the "Bank") for the year 2016, and conducted extensive and retrospective audit on relevant matters.

The results of such audit show that in recent years, the Bank maintained robust operations, improved industry credit policies, optimized regional layout, implemented major strategies of the State, and achieved significant growth in terms of total assets and net profits; the Bank improved its corporate governance, and effectively implemented the "major issue decision-making, important official appointment and removal, key project arrangement and large-value fund use" decision-making mechanism; the Bank promoted its internationalized development, established a global service network, and participated in the "Belt and Road" initiative; and the Bank strengthened the construction of three information system platforms (i.e., the NOVA system, the Full Function Overseas NOVA system and the Management of Value Accounting system), and improved its technological innovation capability. The audit report also identifies certain issues in relation to the operation, management and business integrity of the Bank.

The Bank attaches great importance to the audit performed by the National Audit Office. In response to the issues identified in the audit, the Bank adopted a timely study, timely deployment and timely arrangement approach to make full deployment of rectification work, conscientiously prepared rectification plans, actively identified the persons responsible for rectification work, and effectively implemented rectification measures in accordance with the principles of "immediate rectification upon result of investigation, strict and quick approach, and drawing inferences from results".

As of the date of this announcement, 98.01% of the issues identified in the audit have been rectified. Relevant risk prevention and mitigation measures have been adopted in respect of the loans involved and the risks of such loans are generally under control; adjustments have been made to financial income and expenditures involved respectively; in order to address the weakness in its operation and management, in addition to improving the relevant policies, procedures and system design, the Bank also further standardizes and strengthens its operation and management in order to achieve overall improvement in its policy execution, risk management and internal control; the Bank held relevant responsible persons accountable in accordance with applicable regulations. The Bank will continue to increase its effort in rectifying those outstanding issues until all issues are fully rectified.

The issues as identified by the audit have no impact on the overall operating results and published financial statements of the Bank.

The audit results of the National Audit Office on the assets, liabilities, profits and losses of the Bank for the year 2016 are detailed in the relevant audit result announcement published by the National Audit Office on its official website.

The Board of Directors of

Industrial and Commercial Bank of China Limited

Beijing, PRC

20 June 2018

As at the date of this announcement, the board of directors comprises Mr. YI Huiman, Mr. GU Shu, Mr. ZHANG Hongli and Mr. WANG Jingdong as executive directors, Mr. CHENG Fengchao, Mr. ZHENG Fuqing, Mr. FEI Zhoulin, Ms. MEI Yingchun, Mr. DONG Shi and Mr. YE Donghai as non-executive directors, Mr. OR Ching Fai, Mr. HONG Yongmiao, Mr. Anthony Francis NEOH, Mr. YANG Siu Shun, Ms. Sheila Colleen BAIR and Mr. SHEN Si as independent non-executive directors.