Industrial and Commrcl Bank of China : 2017 Interim Report

Stock Code: 1398‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌‌

USD Preference Shares Stock Code: 4603 EUR Preference Shares Stock Code: 4604 RMB Preference Shares Stock Code: 84602

Interim Report

2017

Industrial 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 Hong Kong Limited.

Through its continuous endeavor and stable development, the Bank has developed into the leading bank in the world, possessing an excellent customer base, a diversified business structure, strong innovation capabilities and market competitiveness. The Bank regards service as the very foundation to seek further development and has made efforts to build a "bank to the satisfaction of customers" while providing a comprehensive range of financial products and services to 6.07 million corporate customers and 546 million personal customers. The Bank consciously integrates the social responsibilities with its development strategy and operation and management activities, gaining wide recognition in the aspects of supporting targeted poverty relief, protecting environment and resources, participating in public welfare undertakings and promoting inclusive finance.

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-based approach and never overstepping the bottom line, it regards controlling and resolving risks as its iron law. 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 seeking progress with innovation while maintaining stability, continuously enhances the strategy of mega retail, mega asset management, mega investment banking as well as international and comprehensive development, and actively embraces the Internet. The Bank unswervingly delivers specialized services, and pioneers a specialized business model, thus making it "a craftsman in large banking".

The Bank was ranked the 1st place among the Top 1000 World Banks by The Banker, ranked 1st place in the Global 2000 listed by Forbes and topped the sub-list of commercial banks of the Global 500 in Fortune for the fifth consecutive year, and took the 1st place among the Top 500 Banking Brands of Brand Finance.

Definitions 2

Important Notice 3

Corporate Information 4

Financial Highlights 5

Chairman's Statement 8

President's Statement 10

Discussion and Analysis 12

• Economic, Financial and

  Regulatory Environments 12

• Financial Statements Analysis 13

• Business Overview 28

• Risk Management 47

• Capital Management 58

• Outlook 61

• Other Information Disclosed Pursuant to Regulatory

Requirements 62

Information Disclosed Pursuant to

the Capital Regulation 63

Details of Changes in Share Capital and Shareholding of Substantial

Shareholders 67

Directors, Supervisors,

Senior Management, Employees

and Institutions 74

Significant Events 76

Review Report and

Interim Financial Report 80

List of Domestic and Overseas

Branches and Offices 196

In this report, unless the context otherwise requires, the following terms shall have the meanings set out below:

Articles of Association The Articles of Association of Industrial and Commercial Bank of China Limited Bank ICBC (JSC) Bank ICBC (Joint Stock Company)

Capital Regulation Regulation Governing Capital of Commercial Banks (Provisional) promulgated by

CBRC in June 2012

CBRC China Banking Regulatory Commission

CSRC China Securities Regulatory Commission

Global Systemically Important Banks Banks undertaking key functions with global features in the financial markets as

released by the Financial Stability Board

Hong Kong Listing Rules Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong

Limited

Huijin Central Huijin Investment Ltd.

ICBC (Almaty) Industrial and Commercial Bank of China (Almaty) Joint Stock Company

ICBC (Argentina) Industrial and Commercial Bank of China (Argentina) S.A.

ICBC (Asia) Industrial and Commercial Bank of China (Asia) Limited

ICBC (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.A.

ICBC (Indonesia) PT. Bank ICBC Indonesia

ICBC (London) ICBC (London) PLC

ICBC (Macau) Industrial and Commercial Bank of China (Macau) Limited

ICBC (Malaysia) Industrial and Commercial Bank of China (Malaysia) Berhad

ICBC (Mexico) Industrial and Commercial Bank of China Mexico S.A.

ICBC (New Zealand) Industrial and Commercial Bank of China (New Zealand) Limited

ICBC (Peru) ICBC PERU BANK

ICBC (Thai) Industrial and Commercial Bank of China (Thai) Public Company Limited

ICBC (Turkey) ICBC Turkey Bank Anonim ¸Sirketi

ICBC (USA) Industrial and Commercial Bank of China (USA) NA ICBC Credit Suisse Asset Management ICBC Credit Suisse Asset Management Co., Ltd.

ICBC International ICBC International Holdings Limited

ICBC Leasing ICBC Financial Leasing Co., Ltd.

ICBC Standard Bank ICBC Standard Bank PLC

ICBC-AXA ICBC-AXA Assurance Co., Ltd.

ICBCFS Industrial and Commercial Bank of China Financial Services LLC

IFRSs The International Financial Reporting Standards promulgated by the International Accounting Standards Board, which comprise the International Accounting Standards

MOF Ministry of Finance of the People's Republic of China

PBC The People's Bank of China

PRC GAAP Accounting Standards for Business Enterprises promulgated by the Ministry of Finance

Securities and Futures Ordinance of Hong Kong

Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)

SEHK The Stock Exchange of Hong Kong Limited

SSE Shanghai Stock Exchange

Standard Bank Standard Bank Group Limited

the Bank/the Group Industrial and Commercial Bank of China Limited; or Industrial and Commercial

Bank of China Limited and its subsidiaries

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