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+CSRC
+ICBC
+6
+(This report is prepared in both Chinese and English. In the case of discrepancy between the two versions, the Chinese
+version shall prevail.)
+The Bank is primarily exposed to credit risk, market risk, interest rate risk 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.
+The report contains forward-looking statements on the Bank's financial position, business performance and development.
+The statements are based on existing plans, estimates and forecasts, and bear upon future external events or the
+Group's future finance, business or performance in other aspects, and may 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.
+Mr. Chen Siqing, Legal Representative of the Bank, Mr. Liao Lin, President in charge of finance of the Bank, and Mr.
+Liu Yagan, General Manager of the Finance and Accounting Department of the Bank, hereby warrant that the financial
+statements contained in the Annual Report are authentic, accurate and complete.
+30 March 2022
+The Board of Directors of Industrial and Commercial Bank of China Limited
+The Board of Directors of the Bank proposed distributing cash dividends for ordinary shares of RMB2.933 (pre-tax) for each
+ten shares for 2021. The distribution plan will be submitted for approval to the Annual General Meeting for the Year 2021.
+The Bank did not convert capital reserve to share capital.
+The 2021 financial statements prepared by the Bank in accordance with PRC GAAP and IFRSS have been audited by
+Deloitte Touche Tohmatsu Certified Public Accountants LLP and Deloitte Touche Tohmatsu in accordance with Chinese and
+International Standards on Auditing respectively, with standard unqualified auditors' reports being issued.
+Corporate Information
+The 2021 Annual 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 2022. There were 14 directors eligible for attending the meeting, of whom 13
+directors attended the meeting in person and 1 director by proxy, namely, Mr. Nout Wellink appointed Mr. Anthony Francis
+Neoh to attend the meeting and exercise the voting right on his behalf.
+Important Notice
+5
+Annual Report 2021
+The Asian Banker
+THE ASIAN BANKER®
+亚洲银行家
+Best Custodian Bank in China (Mega Bank)
+Best RMB Clearing Bank in Asia Pacific
+Best Asian International Cash
+Management Bank in Asia Pacific
+nt
+The Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior Management members of Industrial
+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 Asset
+Legal name in Chinese
+Legal name in English
+www.sse.com.cn
+the annual report in respect of A shares
+Website of SSE for disclosure of
+China Securities Journal, Shanghai Securities News, Securities Times,
+Securities Daily
+Selected newspaper for information disclosure
+E-mail: ir@icbc.com.cn
+Facsimile: 86-10-66107571
+Address: 55 Fuxingmennei Avenue, Xicheng District, Beijing, China
+Telephone: 86-10-66108608
+Guan Xueqing
+Board Secretary and Company Secretary
+中國工商銀行股份有限公司(「中國工商銀行」)
+Liao Lin and Guan Xueqing
+33/F, ICBC Tower, 3 Garden Road, Central, Hong Kong SAR, China
+Principal place of business in Hong Kong
+Website: www.icbc.com.cn, www.icbc-ltd.com
+Business enquiry and complaint hotline: 86-95588
+Telephone: 86-10-66106114
+55 Fuxingmennei Avenue, Xicheng District, Beijing, China
+Postal code: 100140
+Registered address and office address
+Chen Siqing
+Legal Representative
+INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED ("ICBC")
+Authorized representatives
+The "HKEXnews" website of HKEX for disclosure of
+the annual report in respect of H shares
+www.hkexnews.hk
+THE Asset
+Best Bond Advisor, China
+Ranking the
+1st place
+Brand Finance
+Brand Finance®
+consecutive year
+Among the Top 500
+Banking Brands for the sixth
+Ranking the
+1st place
+Fortune
+Among commercial banks in
+the Global 500 for the ninth
+consecutive year
+Ranking the
+1st place
+Forbes
+In the
+Forbes
+for the ninth
+consecutive year
+In the Global 2000
+Ranking the
+1st place
+The Banker
+The Banker
+consecutive year
+Banks for the ninth
+Among the Top 1000 World
+Ranking the
+1st place
+Major Ranking and Rewards in 2021
+•福布斯
+Best Insurance Custodian Bank
+in China
+"Corporate Brand Value List"
+for the sixth time
+Ranking the
+1st place
+Best Bank, China
+Finance Asia
+Best Bank in China
+Global Finance
+GLOBAL
+FINANCE
+Best Corporate Bank in China
+Best Bank in China
+Best Bank in Asia-Pacific
+World's Best Bank in
+Emerging Markets
+China Federation of Electronics and
+Information Industry
+China Council for Brand
+Development
+中国电子信息行业联合会
+CFEII
+Data Management Capability Maturity
+(DCMM)
+People's Bank of China
+FinTech Development
+Award ECOS Project
+Special Award of
+China Banking Association
+CHINA BANKING ASSOCIATION
+中国银行业协会
+national commercial banks
+In the 2021 GYROSCOPE
+assessment system among
+The highest Level 5
+certification
+ICBC
+Legal Advisors
+King & Wood Mallesons
+2019
+167,613
+2020
+186,243
+2021
+206,672
+264,418
+2019
+2020
+2021
+351,714
+206,672
+Unit: RMB100 millions
+Due to customers
+Total loans and advances to customers
+2019
+3,134
+2020
+3,177
+2021
+3,502
+351,714
+Unit: RMB100 millions
+Unit: RMB100 millions
+333,451
+264,418
+26.36%
+Down 0.16 percentage
+points
+18.02%
+32,413.64
+1.42%
+Unit: RMB100 millions
+Cost-to-income ratio
+Non-performing
+loans ratio
+Capital adequacy ratio
+Net tier 1 capital
+301,094
+24,145
+Up 23.41 million
+Up 1,048 thousand
+704 million
+9,691 thousand
+ATM
+Self-service banks
+Business outlets
+Corporate customers Personal customers
+229,777
+251,347
+15,767
+Chinese mainland
+Total assets
+2020
+Stock code: 601398
+Stock name:
+Shanghai Stock Exchange
+Place where shares are listed, and their names and codes
+A Share
+Board of Directors' Office of the Bank
+Location where copies of this annual report are kept
+Facsimile: 852-28650990
+17M Floor, Hopewell Center, 183 Queen's Road East, Wanchai,
+Hong Kong SAR, China
+Telephone: 852-28628555
+Computershare Hong Kong Investor Services Limited
+H Share
+H Share
+188 Yanggao South Road, Pudong New Area, Shanghai, China
+Telephone: 86-4008058058
+A Share
+Share Registrars
+55th Floor, One Island East, 18 Westlands Road, Quarry Bay,
+Hong Kong SAR, China
+Freshfields Bruckhaus Deringer
+9/F, Three Exchange Square, Central, Hong Kong SAR, China
+Allen & Overy
+Hong Kong SAR, China
+20/F, Fortune Financial Center, 5 East 3rd Ring Middle Road,
+Chaoyang District, Beijing, China
+Haiwen & Partners
+17-18/F, East Tower, World Financial Center, 1 East 3rd Ring
+Middle Road, Chaoyang District, Beijing, China
+China Securities Depository and Clearing Corporation Limited,
+Shanghai Branch
+2019
+The Stock Exchange of Hong Kong Limited
+Stock code: 1398
+2021
+3,502
+Unit: RMB100 millions
+Net profit
+Financial Highlights
+7
+Annual Report 2021
+35/F, One Pacific Place, 88 Queensway, Hong Kong SAR, China
+Deloitte Touche Tohmatsu
+International Auditor
+Stock name: ICBC
+Deloitte Touche Tohmatsu Certified Public Accountants LLP
+30/F, 222 East Yan'an Road, Huangpu District, Shanghai, China
+CPAs (Practicing): Wu Weijun and Zeng Hao
+Name and office address of Auditors
+Stock code: 4620
+The Stock Exchange of Hong Kong Limited
+Stock name: ICBC 20USDPREF
+Offshore Preference Share
+Stock code: 360036
+Stock name: 12
+Stock code: 360011
+Stock name: I
+Shanghai Stock Exchange
+Domestic Preference Share
+Domestic Auditor
+ICBC
+4
+The State Council of the People's Republic of China
+Shareholders
+and Shareholding of Substantial
+Hot Topics in the Capital Market
+Details of Changes in Share Capital
+34
+Corporate Banking
+34
+Business Overview
+21
+Financial Statements Analysis
+19
+Directors, Supervisors and
+Regulatory Environments
+19
+Discussion and Analysis
+84
+- Outlook
+79
+· Capital Management
+63
+Risk Management
+and Equity Participating Company 61
+- Major Controlled Subsidiaries
+Economic, Financial and
+58
+Senior Management
+91
+51
+- Outlet Development
+139
+Significant Events
+48
+- Internet Finance
+Environmental and Social Responsibilities 135
+44
+- FinTech
+133
+85
+Report of the Board of Supervisors
+Financial Market Business
+129
+Report of the Board of Directors
+41
+Asset Management Services
+112
+Corporate Governance Report
+39
+Personal Banking
+102
+42
+Organizational Chart
+Subsidiary Management
+4567825
+ICBC empowers its business operations and management
+with FinTech, and creates superior value for the real
+economy, shareholders, customers, employees and the
+society as a whole.
+ICBC remains steadfast in serving the real economy and
+commits to satisfying people's new expectations and
+demands for financial services, making every effort to build
+the No. 1 Personal Finance Bank.
+ICBC upholds the Party's 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.
+Adhere to laying a solid
+foundation for risk control
+and achieving development
+through talent cultivation:
+transformation and progressing
+through reform:
+pragmatic business
+Adhere to pushing for
+operations:
+Adhere to a broad international
+vision and globalized
+Adhere to technology-driven
+development and value
+creation:
+ICBC proactively taps resources from both domestic and
+overseas markets, and undertakes to constantly promote
+international development, which well-integrates with
+China's high-level opening-up.
+Adhere to putting the customer
+first and serving the real
+economy:
+Strategic Significance:
+Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, ICBC will adhere to the general
+principle of pursuing progress while ensuring stability, apply the new development philosophy, modernize its governance
+system and capacity, and turn ICBC into a world-class and modern financial enterprise with global competitiveness.
+Strategic Objective:
+The Bank was ranked the 1st place among the Top
+1000 World Banks by The Banker, the 1st place in the
+Global 2000 by Forbes, and the 1st place in the list of
+commercial banks of the Global 500 in Fortune for the
+ninth consecutive year, and took the 1st place among
+the Top 500 Banking Brands of Brand Finance for the
+sixth consecutive year.
+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 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 seeking 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 craftsman in large
+banking".
+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 adheres to creating
+value through services while providing a comprehensive
+range of financial products and services to over 9.691
+million corporate customers and 704 million personal
+customers. 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 supporting pandemic
+containment, promoting inclusive finance, backing
+rural revitalization, developing green finance and
+participating in public welfare undertakings.
+Company Profile
+ICBC
+H
+2021 Annual Report
+Adhere to the guidance of
+the Party building theory and
+exercising rigorous corporate
+governance:
+Diversified Operation and
+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.
+-
+15
+President's Statement
+12
+Chairman's Statement
+Financial Highlights
+Corporate Information
+Important Notice
+Major Ranking and Rewards in 2021
+Definitions
+CONTENTS
+ICBC safeguards the lifeline of asset quality by reinforcing
+bottom-line thinking with a combination of prevention and
+control measures. Meanwhile, corporate culture formation
+and caring for staff are strengthened to increase group
+cohesion.
+Excellence
+Prudence
+Humanity
+Integrity
+Integrity Leads to Prosperity
+Values
+Excellent services for clients
+Maximum returns to shareholders
+Real success for employees
+Great contribution to society
+Excellence for You
+Mission
+To build a world-class, globally
+competitive modern financial
+institution in all aspects, and
+become a long-lasting and
+ever-prosperous bank
+Vision
+Innovation
+Industrial and Commercial Bank of China Limited; or Industrial and Commercial Bank
+of China Limited and its subsidiaries
+141
+51
+PRC GAAP
+PBC
+New Rules on Asset Management
+MOF
+Inversora Diagonal
+IFRSS
+ICBCFS
+ICBC-AXA
+ICBC Wealth Management
+ICBC Technology
+Securities and Futures Ordinance of
+ICBC Standard Bank
+ICBC Investments Argentina
+ICBC Investment
+ICBC International
+ICBC Credit Suisse Asset Management ICBC Credit Suisse Asset Management Co., Ltd.
+Industrial and Commercial Bank of China (USA) NA
+Industrial and Commercial Bank of China (Thai) Public Company Limited
+ICBC Turkey Bank Anonim Şirketi
+ICBC PERU BANK
+Industrial and Commercial Bank of China (New Zealand) Limited
+Industrial and Commercial Bank of China Mexico S.A.
+Industrial and Commercial Bank of China (Malaysia) Berhad
+ICBC Leasing
+Industrial and Commercial Bank of China (Macau) Limited
+Hong Kong
+SSE
+Standard Bank Group Limited
+National Council for Social Security Fund
+Shanghai Stock Exchange
+The Stock Exchange of Hong Kong Limited
+Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
+Accounting Standards for Business Enterprises promulgated by MOF
+The People's Bank of China
+The Guiding Opinions on Regulating the Asset Management Business of Financial
+Institutions jointly promulgated by PBC, CBIRC, CSRC and State Administration of
+Foreign Exchange in 2018 and relevant rules
+Ministry of Finance of the People's Republic of China
+The International Financial Reporting Standards promulgated by the International
+Accounting Standards Board, which comprise the International Accounting Standards
+Inversora Diagonal S.A.
+SEHK
+Industrial and Commercial Bank of China Financial Services LLC
+ICBC Wealth Management Co., Ltd.
+ICBC Information and Technology Co., Ltd.
+ICBC Standard Bank PLC
+ICBC Investments Argentina S.A. Sociedad Gerente de Fondos Comunes de Inversión
+ICBC Financial Leasing Co., Ltd.
+ICBC Financial Asset Investment Co., Ltd.
+ICBC International Holdings Limited
+The Bank/The Group
+State Council
+Standard Bank
+SSF
+ICBC-AXA Assurance Co., Ltd.
+Service Improvement
+Industrial and Commercial Bank of China (Brasil) S.A.
+Industrial and Commercial Bank of China (Canada)
+Industrial and Commercial Bank of China (Europe) S.A.
+PT. Bank ICBC Indonesia
+ICBC (London) PLC
+Industrial and Commercial Bank of China (Asia) Limited
+HKEX
+Company Law
+CBIRC
+Capital Regulation
+Bank ICBC (JSC)
+Articles of Association
+In this report, unless the context otherwise requires, the following terms shall have the meanings set out below:
+Definitions
+12%
+4.62%
+Hong Kong Listing Rules
+9.12%
+Overseas Branches and Offices
+54
+― Internationalized Operation
+List of Domestic and
+52
+Employees and Institutions
+142
+Statements
+Human Resources Management,
+Auditor's Report and Financial
+307
+ICBC Austria Bank GmbH
+Huijin
+ICBC (Argentina)
+Industrial and Commercial Bank of China (Argentina) S.A.
+Industrial and Commercial Bank of China (Almaty) Joint Stock Company
+Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited
+Central Huijin Investment Ltd.
+Hong Kong Exchanges and Clearing Limited
+China Securities Regulatory Commission
+Company Law of the People's Republic of China
+China Banking and Insurance Regulatory Commission
+Regulation Governing Capital of Commercial Banks (Provisional) promulgated in June
+2012
+The Articles of Association of Industrial and Commercial Bank of China Limited
+Bank ICBC (Joint stock company)
+ICBC (USA)
+ICBC (Almaty)
+ICBC (Turkey)
+ICBC (Peru)
+ICBC (New Zealand)
+ICBC (Mexico)
+ICBC (Malaysia)
+ICBC (Macau)
+ICBC (Europe)
+ICBC (Indonesia)
+ICBC (London)
+ICBC (Canada)
+ICBC (Brasil)
+ICBC (Austria)
+ICBC (Asia)
+ICBC (Thai)
+INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED
+(A joint stock limited company incorporated in the People's Republic of China with limited liability)
+Stock Code: 1398
+ICBC E
+Details of Changes in Share Capital and Shareholding of Substantial Shareholders
+Type of offshore
+With the approval of CBIRC by its Document Yin Bao Jian Fu [2020] No. 138 and the approval of CSRC by its Document
+Zheng Jian Xu Ke [2020] No. 1391, the Bank made a non-public issuance of 145 million USD-denominated non-cumulative
+perpetual offshore preference shares (the "Offshore USD Preference Shares") on 23 September 2020 at an issuance price
+of USD20 per share (see the table below for details). The Offshore USD Preference Shares were listed on the SEHK on 24
+September 2020. All proceeds from the issuance, after deduction of commission and issuance expenses, will be used to
+replenish additional tier 1 capital and increase capital adequacy ratio.
+Issuance of offshore preference shares
+For issuance of domestic preference shares of the Bank, please refer to the announcements published by the Bank on the
+website of SSE, the "HKEXnews" website of HKEX and the website of the Bank.
+With the approval of CBIRC by its Document Yin Bao Jian Fu [2019] No. 444 and the approval of CSRC by its Document
+Zheng Jian Xu Ke [2019] No. 1048, the Bank made a non-public issuance of 700 million domestic preference shares on 19
+September 2019 at a par value of RMB100 per share. The dividend rate is the benchmark interest rate plus a fixed spread,
+remaining unchanged in the first five years. Subsequently the benchmark interest rate will be reset every five years, with
+the dividend rate kept unchanged in each reset period and the fixed spread remaining constant through the duration of
+the domestic preference shares. The initial dividend rate of the afore-mentioned domestic preference shares is set at 4.2%
+through market inquiry for the first five years. With the consent of SSE by its letter Shang Zheng Han [2019] No. 1752, the
+afore-mentioned domestic preference shares issued were listed for transfer on the Comprehensive Business Platform of SSE
+on 16 October 2019 with the stock name "2" and stock code 360036. Proceeds of the afore-mentioned domestic
+preference shares totaled RMB70.0 billion, all of which was replenished to the additional tier 1 capital of the Bank after
+deduction of issuance expenses.
+Issuance of "I¼2″
+Issuance and Listing of Preference Shares in Latest Three Years
+Preference Shares
+Details of Changes in Share Capital and Shareholding of Substantial Shareholders
+95
+Annual Report 2021
+(3) Due to rounding, percentages presented herein are for reference only.
+(2) According to the information provided by SSF to the Bank, SSF held 7,946,049,758 H shares of the Bank as at the end of the
+reporting period, accounting for 9.16% of the Bank's H shares and 2.23% of the Bank's total ordinary shares.
+Notes: (1) As confirmed by Ping An Asset Management Co., Ltd., such shares were held by Ping An Asset Management Co., Ltd. on behalf
+of certain customers (including but not limited to Ping An Life Insurance Company of China, Ltd.) in its capacity as investment
+manager and the interests in such shares were disclosed based on the latest disclosure of interests form filed by Ping An Asset
+Management Co., Ltd. for the period ended 31 December 2021 (the date of relevant event being 12 June 2019). Both Ping
+An Life Insurance Company of China, Ltd. and Ping An Asset Management Co., Ltd. are subsidiaries of Ping An Insurance
+(Group) Company of China, Ltd. As Ping An Asset Management Co., Ltd. is in a position to fully exercise the voting rights in
+respect of such shares on behalf of customers and independently exercise the rights of investment and business management
+in its capacity as investment manager, and is completely independent from Ping An Insurance (Group) Company of China, Ltd.,
+Ping An Insurance (Group) Company of China, Ltd. is exempted from aggregating the interests in such shares as a holding
+company under the aggregation exemption and disclosing the holding of the same in accordance with the Securities and Futures
+Ordinance of Hong Kong.
+2.05
+8.43
+2.43
+9.98
+Long
+position
+Long
+position
+7,317,475,731
+Interest of
+controlled
+corporations
+(Private) Limited
+Temasek Holdings
+preference shares
+USD Preference Shares
+Stock code
+4620
+Dividend rate
+3.58%
+Shares held
+Increase/
+decrease
+during the
+reporting
+period
+Class of shares
+Nature of
+shareholder
+Name of shareholder
+Unit: Share
+BANK
+PARTICULARS OF SHAREHOLDING OF THE TOP 10 OFFSHORE PREFERENCE SHAREHOLDERS (OR PROXIES) OF THE
+As at the end of the reporting period, the Bank had one offshore preference shareholder (or proxy), 25 domestic preference
+shareholders of "1" and 33 domestic preference shareholders of "12". As at the end of the month immediately
+before the annual results announcement date (28 February 2022), the Bank had one offshore preference shareholder (or
+proxy), 26 domestic preference shareholders of "11" and 33 domestic preference shareholders of "Iíƒ₹2″.
+Number of Preference Shareholders and Particulars of Shareholding
+For details on the reset dividend rate of domestic preference shares of the Bank, please refer to the announcements
+published by the Bank on the website of SSE, the "HKEXnews" website of HKEX and the website of the Bank.
+8,663,703,234
+Pursuant to relevant provisions of the Prospectus on Non-public Offering of Preference Shares of Industrial and Commercial
+Bank of China Limited, domestic preference shares non-publicly offered by the Bank in November 2015 (abbreviation "I
+1" and code "360011") were priced at a coupon dividend rate adjusted in stages, with the coupon dividend rate being
+the benchmark interest rate plus a fixed spread. The coupon dividend rate for the first five years remained unchanged from
+the date of issuance, and subsequently the benchmark interest rate will be reset every five years, and the nominal dividend
+rate during each reset period will remain unchanged. In November 2020, the Bank reset the nominal dividend rate of "I
+11" as it lasted five years from the issuance date, and the coupon dividend rate after reset became 4.58% from 23
+November 2020.
+Details of Changes in Share Capital and Shareholding of Substantial Shareholders
+ICBC
+96
+For details on the issuance of offshore preference shares of the Bank, please refer to the announcements published by the
+Bank on the website of SSE, the "HKEXnews" website of HKEX and the website of the Bank.
+The number of qualified placees for the Offshore USD Preference Shares shall not be less than six, and they shall be offered
+only to professional investors instead of retail investors, and shall be non-publicly transferred in the OTC market only.
+145 million shares
+Number of
+shares issued
+Net amount
+of proceeds
+per share
+RMB135.77
+USD20
+Full amount
+of proceeds
+per share
+Total
+issuance
+amount
+USD2.9 billion
+Reset dividend rate of “I¼1″
+Beneficial owner
+SSF(2)
+Management
+Co., Ltd. (1)
+shares (2) (%)
+Percentage of
+total ordinary
+Percentage of
+A shares (2) (%)
+45.89
+Long
+position
+123,717,852,951
+Nature of
+interests
+Number of
+A shares held
+(share)
+Capacity
+Beneficial owner
+MOF
+Huijin(1)
+shareholder
+34.71
+Name of substantial
+As at 31 December 2021, the Bank received notices from the following persons about their interests or short positions held
+in the Bank's ordinary shares and underlying shares, which were recorded in the register pursuant to Section 336 of the
+Securities and Futures Ordinance of Hong Kong as follows:
+Interests and Short Positions Held by Substantial Shareholders and Other Persons
+Substantial Shareholders and Persons Having Notifiable Interests or Short Positions
+Pursuant to Divisions 2 and 3 of Part XV of the Securities and Futures Ordinance of Hong
+Kong
+ICBC
+94
+None.
+Particulars of the De Facto Controller
+SSF. SSF owned 5.69% of the shares of the Bank as at 31 December 2021. Founded in August 2000, SSF is a public service
+institution administered by MOF, having its address at South Tower, Building 11, Fenghuiyuan Fenghui Times Building,
+Xicheng District, Beijing, China, and its legal representative being Liu Wei. With the approval of the State Council and
+pursuant to regulations of MOF and the Ministry of Human Resources and Social Security, SSF has been entrusted to manage
+the following funds: the National Social Security Fund, the subsidy from central government to individual accounts, part of
+the surplus of the enterprise employee's basic pension insurance, basic pension insurance fund and the partial state-owned
+capital transferred.
+Particulars of Other Substantial Shareholders
+The second single largest shareholder of the Bank is MOF, which held approximately 31.14% shares of the Bank as at 31
+December 2021. MOF is a department under the State Council, and is responsible for overseeing the State's fiscal revenue
+and expenditure, formulating the fiscal and taxation policies, and supervising State finance at a macro level.
+Details of Changes in Share Capital and Shareholding of Substantial Shareholders
+93
+HOLDERS OF A SHARES
+at the end
+Interest of
+controlled
+Long
+3.41
+Percentage of
+total ordinary
+shares (3) (%)
+Percentage of
+H shares (3) (%)
+14.02
+Long
+position
+manager
+12,168,809,000
+Nature of
+interests
+Number of
+H shares held
+(share)
+Capacity
+Investment
+Ping An Asset
+shareholder
+1,013,921,700
+Name of substantial
+Notes: (1) According to the register of shareholders of the Bank as at 31 December 2021, Huijin held 123,717,852,951 shares in the Bank,
+while Central Huijin Asset Management Co., Ltd., a subsidiary of Huijin, held 1,013,921,700 shares in the Bank.
+(2) Due to rounding, percentages presented herein are for reference only.
+31.14
+35.00
+46.26
+41.16
+Long
+position
+124,731,774,651
+110,984,806,678
+Beneficial owner
+corporations
+Total
+position
+0.28
+0.38
+HOLDERS OF H SHARES
+Annual Report 2021
+The Bank of New York
+Depository (Nominees) Limited person
+4.0
+18,000,000
+Domestic
+Domestic non-state-
+preference shares
+owned legal person
+of China, Ltd.
+BOCOM Schroders Asset
+None
+6.7
+30,000,000
+Domestic
+Ping An Life Insurance Company Domestic non-state-
+preference shares
+legal person
+Limited
+None
+7.8
+35,000,000
+Domestic
+State-owned
+China Life Insurance Company
+preference shares
+Corporation
+None
+Management Co., Ltd.
+owned legal person
+preference shares
+preference shares
+legal person
+None
+2.7
+12,290,000
+9,240,000
+Domestic
+State-owned
+CITIC Securities Co., Ltd.
+preference shares
+legal person
+None
+None
+15,000,000
+Domestic
+State-owned
+BOC International (China) Co.,
+Ltd.
+preference shares
+None
+3.3
+15,000,000
+Domestic
+State-owned
+legal person
+CCB Trust Co., Ltd.
+3.3
+11.1
+50,000,000
+Domestic
+Number
+of shares
+Increase/
+decrease
+Unit: Share
+PARTICULARS OF SHAREHOLDING OF THE TOP 10 DOMESTIC PREFERENCE SHAREHOLDERS OF "I1″
+Details of Changes in Share Capital and Shareholding of Substantial Shareholders
+97
+Annual Report 2021
+(4) "Shareholding percentage" refers to the percentage of offshore preference shares held by preference shareholders in total
+number of offshore preference shares.
+(3) The Bank is not aware of any connected relations or concert party action between the afore-mentioned preference shareholder
+and top 10 ordinary shareholders.
+(2) As the issuance of the offshore preference shares above was non-public offering, the register of preference shareholders
+presented the information on the registered holder of the offshore preference shares.
+Notes: (1) The above data are based on the Bank's register of offshore preference shareholders as at 31 December 2021.
+Number of
+Unknown
+shares
+on sales
+(%)
+marked
+locked-up/
+pledged/
+Number of
+Number
+of shares
+subject to
+restrictions
+Shareholding
+percentage
+of the
+period
+145,000,000
+USD offshore
+preference shares
+100
+Foreign legal
+pledged/
+Shares held
+Other entities
+China National Tobacco
+preference shares
+legal person
+Group Co., Ltd.
+None
+44.4
+200,000,000
+shares
+on sales
+marked
+during the
+restrictions
+the period
+at the end of
+reporting
+period
+Class of shares
+Domestic
+State-owned
+China Mobile Communications
+shareholder
+Name of shareholder
+Nature of
+locked-up/
+subject to
+Shareholding
+percentage (%)
+State-owned
+legal person
+(2) Except the above-mentioned controlling or equity participating enterprises, Huijin also has a wholly-owned subsidiary - Central
+Huijin Asset Management Co., Ltd. Central Huijin Asset Management Co., Ltd. was incorporated in November 2015 in Beijing.
+With a registered capital of RMB5 billion, the company runs an asset management business.
+14.54%
+Number of
+Shareholding
+Number of shares
+held at the end of
+the reporting
+period
+-
+A Share
+State-owned
+Class of
+shares
+Nature of
+shareholder
+Name of shareholder
+Huijin
+Increase/
+decrease of
+shares during
+Unit: Share
+PARTICULARS OF SHAREHOLDING OF THE TOP 10 ORDINARY SHAREHOLDERS OF THE BANK
+Details of Changes in Share Capital and Shareholding of Substantial Shareholders
+91
+Annual Report 2021
+As at the end of the reporting period, the Bank had a total number of 750,894 ordinary shareholders and no holders of
+preference shares with voting rights restored or holders of shares with special voting rights, including 113,054 holders of H
+shares and 637,840 holders of A shares. As at the end of the month immediately before the annual results announcement
+date (28 February 2022), the Bank had a total number of 721,975 ordinary shareholders and no holders of preference shares
+with voting rights restored or holders of shares with special voting rights.
+Number of Shareholders and Particulars of Shareholding
+For information on other securities issued by the Bank and its subsidiaries, please refer to "Note 35. to the Consolidated
+Financial Statements: Debt Securities Issued; Note 38. to the Consolidated Financial Statements: Other Equity Instruments"
+for details.
+For details on the issuance progress of tier 2 capital bonds and undated additional tier 1 capital bonds of the Bank during
+the reporting period, please refer to the section headed "Discussion and Analysis - Capital Management".
+For details on the issuance of preference shares of the Bank, please refer to the section headed "Details of Changes in Share
+Capital and Shareholding of Substantial Shareholders Preference Shares".
+During the reporting period, the Bank did not issue any shares, did not have any employee shares, employee stock
+ownership plan, did not issue any convertible bonds, or corporate bonds to be disclosed in accordance with Chapter II,
+Section 9 of the "No. 2 Standards on the Content and Format of Information Disclosure of Companies with Public Offerings
+· Content and Format of the Annual Report (Revision 2021)" issued by CSRC.
+Details of Securities Issuance and Listing
+(3) Due to rounding, percentages presented herein are for reference only.
+percentage
+pledged or
+reporting period
+(%)
+A Share
+Other entities
+Ping An Life Insurance Company
+of China, Ltd. Traditional —
+Ordinary insurance products
+A Share
+State-owned
+SSF(6)
+person
+Unknown
+24.17
+86,154,124,549
+-13,477,082
+(2) "Foreign shares listed overseas", namely H shares, are within the same meaning as defined in the "No. 5 Standards on the
+Content and Format of Information Disclosure of Companies with Public Offerings - Content and Format of the Report of
+Change in Corporate Shareholding" (Revision 2022) of CSRC.
+H Share
+HKSCC Nominees Limited (5)
+None
+31.14
+110,984,806,678
+A Share
+State-owned
+MOF
+None
+34.71
+123,717,852,951
+locked-up shares
+Foreign legal
+Notes: (1) The above data are based on the Equity Structure Chart issued by China Securities Depository and Clearing Corporation Limited.
+100.00
+356,406,257,089
+At 31 December 2021
+Increase/decrease
+during the
+reporting period
+Percentage
+(%)
+Unit: Share
+Number of shares
+At 31 December 2020
+DETAILS OF CHANGES IN SHARE CAPITAL
+Changes in Ordinary Shares
+Details of Changes in Share Capital and Shareholding of
+Substantial Shareholders
+ICBC
+90
+Number of shares
+III. Pushing for technology self-reliance. First, the IT
+core architecture was transformed and upgraded. The
+Bank has advanced the smart banking ecosystem project
+(ECOS) since 2015. Two core IT infrastructure platforms
+(cloud computing and distributed computing) were
+developed in-house to deal with all the core operations of
+ICBC. The two platforms provided safe and stable financial
+services to over 700 million individual customers and
+nearly 9.70 million corporate customers, with the system
+availability always above 99.99%. Second, digital new
+infrastructures were developed in a faster pace. In
+2021, the Bank became the first bank to receive a five-star
+rating for its maturity of data management capabilities. The
+Bank thoroughly implemented the development philosophy
+that "lucid waters and lush mountains are invaluable
+assets" in a bid to build a world-class green data center.
+The Bank's "National Green Data Center" recorded a daily
+peak of 868 million transactions, equivalent to a carbon
+dioxide emissions reduction of nearly 6,000 tons a year.
+Third, the Bank made a push for new technologies on
+all fronts. With a focus on cutting-edge technologies such
+as artificial intelligence, blockchain, cloud computing and
+big data, the Bank has built a series of new IT platforms,
+including ICBC Turing, ICBC Premier Chain and ICBC
+Nebula, to boost its core capabilities in new infrastructures.
+Among them, ICBC Premier Chain integrates basic
+technical services of blockchain, intelligent operations,
+and financial-level security capabilities. With more than
+150 breakthroughs achieved in security, performance and
+capacity, the Bank was included in Forbes' Blockchain
+50 2021. Fourth, data asset management and data
+security control were enhanced. The Bank developed
+a data architecture focused on "one data lake, two
+databases". It built a big data-based smart cloud platform
+that is first of its type, self-contained, controllable and with
+a distributed architecture. All the Group's data have been
+moved into the "lake".
+II. Building a GBC digital community. First, on the
+G-end, new models of digital government services
+were introduced. The Bank carried out government data
+partnership with 29 provincial or equivalent governments
+and launched more than 300 government partnership
+scenarios, proactively supporting government affairs to
+be "processed in one network". "My Ningxia" APP built
+and shaped a new brand and image for Ningxia's digital
+government. Second, B-end saw in-depth participation
+in industry digitalization. Keeping pace with digital
+transformation of leading players in modern agriculture,
+advanced manufacturing and modern service industries,
+the Bank provided services along the value chain ranging
+from upstream to downstream customers, and improved its
+financial service capabilities covering the entire industrial
+chain. The Bank launched over 20 "financial + industrial"
+cloud service ecosystem to provide over 2,600 types of
+financial services and products to the public around the
+hot areas of people's livelihood, including healthcare,
+education and mobility, ranking first among peers by
+service types and number of scenarios covered. Third,
+C-end endeavored to build a new service model
+of "ICBC on cloud". The Bank continued to upgrade
+mobile banking and offered abundant online services
+for 469 million users. It developed new models of smart
+marketing, under which Smart Brain was connected to
+channels such as ICBC e-Service, Gino (Gong Xiao Zhi)
+and cloud studios, providing more than 10 million smart
+service solutions for individual customers. The Bank actively
+promoted scenario- and ecosphere-based use of digital
+RMB, getting fully involved in digital public services. The
+the "bulk guarantee" credit enhancement mechanism
+to make financing more accessible to small and micro
+businesses. The Bank strengthened the capacity of fully
+digital operations by building a customer marketing
+system covering "targeting, attraction, engagement
+and retention". During the reporting period, the Bank
+kept deepening trade finance and cross-border finance
+in support of cooperation projects under the Belt and
+Road Initiative. The Bank developed the "ICBC Global
+Pay" product series to provide one-stop global cash
+management services, serving nearly 10,000 multinational
+corporations and helping Chinese enterprises going
+global. The "ICBC Business Matchmaker" cross-border
+matchmaking platform was developed. ICBC became
+the first bank to provide closed-loop cross-border
+matchmaking services. Nearly 80% of matched pairs
+intended to cooperate with each other.
+Discussion and Analysis
+89
+Annual Report 2021
+The Bank remained steadfast on the road of digital
+development. In shifting from "bank informatization"
+to "informatized bank", ICBC led the Digital 1.0 stage
+of digital technology-driven business development. The
+Bank keenly grasped the trends in the fresh technological
+revolution and industry transformation and made a push
+for IT architecture transition and the "smart banking
+ecosystem ECOS" project, kick-starting the Digital 2.0
+stage of digitalization-led transformation in every respect.
+During the reporting period, the Bank took the lead in
+developing a five-dimensional plan for "digital ecosystem,
+digital assets, digital technology, digital infrastructure
+and digital genes" and planned to launch a farsighted
+digital brand "D-ICBC". In addition, leveraging on the
+Group's FinTech and data strengths, the Bank deepened
+the D-ICBC development driven by "data and technology"
+on a customer-oriented basis. Keeping in mind the bigger
+picture of building a digital China, ICBC contributed to
+the healthy development of digital economy by promoting
+profound changes in business and service models,
+and improvement of quality and efficiency of product
+innovation. Significant improvements have been made in
+customer experience, service efficiency and business value.
+I. Digital transformation boosted circulation.
+According to the business model and transaction
+characteristics of small and micro customers, the Bank
+continuously upgraded its digital inclusive products and
+their operation system. Inclusive loans issued online
+accounted for 94% of the new balance. More scenarios
+were introduced for "e-Enterprise Quick Loan" to improve
+the service quality and efficiency for small and micro
+customers who hold non-residential real properties. A
+combination of tax, electricity, settlement and other
+data were used to provide credit loan support for the
+activity of small and micro businesses. The digital supply
+chain and industrial chain scenarios-based financial
+services were developed and perfected for national
+strategic sectors such as modern agriculture, "specialized,
+sophisticated, distinctive and innovative" enterprises
+and advanced manufacturing. In cooperation with the
+National Financing Guarantee Fund, the Bank introduced
+Hot Topic 2: D-ICBC
+In 2022, ICBC will adhere to the general principle of
+pursuing progress while ensuring stability, apply the new
+development philosophy in every respect and remain stable
+with sound momentum. The Bank will push for medium-
+term breakthroughs under new plans, deepen digital
+transformation and work hard to break new ground in
+ICBC's high-quality development.
+iii. Laying a solid foundation: focusing on FinTech
+and financial innovation. In terms of FinTech, the
+Bank practiced technology self-reliance, strengthened the
+"dual wheel drive" of technological innovation and system
+reform, and empowered the development of "D-ICBC"
+with technology. The intelligent banking ecosystem ECOS
+was awarded PBC's only special award of the "FinTech
+Development Awards" in 2021. The Bank had the most
+newly added and accumulated patents among Chinese
+banks. In terms of financial innovation, the Bank
+ranked first in both the balance and growth of credits to
+manufacturing, strategic emerging industries, green and
+other key fields among peers. Specifically, the Bank topped
+the RMB2 trillion mark in balance of manufacturing loans,
+a net increase of RMB319.7 billion. The balance of loans
+to strategic emerging industries exceeded RMB1 trillion.
+Outstanding green loans amounted to RMB2.48 trillion, up
+RMB634.9 billion from the beginning of the year, with the
+new green loans issued in the year hitting an all-time high.
+iv. Laying a solid base: focusing on enhancing the
+capacity of enterprise risk management, efficiency
+of GBC interactions and competitiveness of outlets
+and teams. In terms of enterprise risk management
+system, the Bank adhered to the four-pronged risk
+management approach to people, money, defense
+line and bottom line, followed the guiding principle of
+"active prevention, smart control and comprehensive
+management", incorporated investment and financing
+cooperation, secondary risks of intermediate business,
+climate risk and model risk in the enterprise risk
+management system. The "9+X" risks were generally
+under control. In terms of GBC interactions and
+coordination of channels, the Bank made solid progress
+in GBC work, fund taking, "net making and patching"
+program, payroll service, management of investment and
+financing cooperation institutions and competitiveness
+enhancement of outlets. Remarkable achievements were
+Imade in the development of key GBC scenarios. G-end
+added 12 thousand customers and RMB120.0 billion
+of deposits. B-end added 290 thousand customers and
+RMB290.0 billion of deposits. C-end acquired or activated
+52.00 million customers with a payroll service volume of
+RMB1.7 trillion.
+Tianjin-Hebei region, Yangtze River Delta, Guangdong-
+Hong Kong-Macao Greater Bay Area, Central China and
+Chengdu-Chongqing region. In terms of the Urban-
+Rural Collaborative Development Strategy, the Bank
+innovated the rural vitalization service system, introduced
+the "Xingnongtong" brand and provided stronger credit
+resource support. The balance of agriculture-related loans
+reached RMB2.66 trillion.
+Discussion and Analysis
+Bank developed special sections for key customer groups,
+becoming the first bank to establish interconnection with
+the system of the Ministry of Human Resources and Social
+Security (MOHRSS) and enabling the issuance of "physical
++ electronic" social security cards. The Bank supported
+cross-provincial processing of social security cards and
+built a "smart risk control" platform to safeguard
+customers' funds. Efforts were intensified to monitor
+unusual transactions in high-risk areas, such as sensitive
+transactions, anti-theft and the elderly's fund transfer.
+12,331,645,186
+Percentage
+(%)
+restrictions on sales
+24.35
+86,794,044,550
+75.65
+269,612,212,539
+100.00
+356,406,257,089
+100.00
+356,406,257,089
+Total number of shares
+III.
+overseas
+I. Shares subject to
+24.35
+2. Foreign shares listed
+ordinary shares
+75.65
+269,612,212,539
+RMB-denominated
+1.
+restrictions on sales
+100.00
+356,406,257,089
+Shares not subject to
+II.
+86,794,044,550
+Notes: (1) A represents A share listed company, while H represents H share listed company.
+3.46
+3,687,330,676
+8
+53.95%
+63.16%
+Hengfeng Bank Co., Ltd.
+China Everbright Group Ltd.
+7
+60
+57.11%
+64.02%
+40.03%
+34.71%
+34.68%
+Huijin's shareholding
+percentage
+China Construction Bank Corporation (A; H)
+5
+Bank of China Limited (A; H)
+4
+Agricultural Bank of China Limited (A; H)
+3
+Industrial and Commercial Bank of China (A; H)
+2
+China Development Bank Corporation
+1
+China Export & Credit Insurance Corporation
+73.63%
+9
+China Reinsurance (Group) Corporation (H)
+Guotai Junan Investment Management Co., Ltd.
+17
+13.30%
+China Galaxy Asset Management Co., Ltd.
+16
+30.76%
+Jiantou CITIC Asset Management Co., Ltd. (A; H)
+15
+40.11%
+China International Capital Corporation Limited (A; H)
+14
+Company name
+20.05%
+13
+69.07%
+China Galaxy Financial Holdings Company Limited
+12
+100.00%
+China Jianyin Investment Limited
+11
+31.34%
+New China Life Insurance Company Limited (A; H)
+10
+71.56%
+Shenwan Hongyuan Group Co., Ltd. (A; H)
+No.
+As at 31 December 2021, Huijin held approximately 34.71% shares of the Bank. It held shares directly in the institutions
+listed below:
+The largest single shareholder of the Bank is Huijin, whose full name is Central Huijin Investment Ltd. Huijin is a state-owned
+company founded by the State according to the Company Law on 16 December 2003. Its registered capital is equal to its
+paid-in capital at RMB828,209 million. Its registered address is New Poly Plaza, 1 Chaoyangmen North Street, Dongcheng
+District, Beijing. Its unified social credit code is 911000007109329615, and its legal representative is Peng Chun. Huijin is a
+wholly-owned subsidiary of China Investment Corporation. It, in accordance with authorization by the State Council, makes
+equity investments in major state-owned financial enterprises, and shall, to the extent of its capital contribution, exercise the
+rights and perform the obligations as an investor on behalf of the State in accordance with applicable laws, to achieve the
+goal of preserving and enhancing the value of state-owned financial assets. Huijin does not engage in any other business
+activities, and does not intervene in the day-to-day business operations of the key state-owned financial institutions it
+controls.
+Other entities
+China Life Insurance Company
+Limited Traditional
+None
+0.28
+1,013,921,700
+A Share
+person
+State-owned
+legal person
+Central Huijin Asset Management
+Co., Ltd.
+None
+0.39
+1,386,451,666
+A Share -34,438,403
+200,331,413
+Foreign legal
+Hong Kong Securities Clearing
+Company Limited(7)
+None
+0.68
+2,416,131,540
+-24
+A Share
+State-owned
+legal person
+China Securities Finance Co., Ltd.
+None
+1.03
+A Share
+None
+435,910,885
+None
+Controlling Shareholders
+During the reporting period, the Bank's controlling shareholders and de facto controller remained unchanged.
+Particulars of Substantial Shareholders
+Details of Changes in Share Capital and Shareholding of Substantial Shareholders
+ICBC
+92
+(7) The number of shares held by Hong Kong Securities Clearing Company Limited at the end of the period refers to the total A
+shares (Northbound shares of the Shanghai-Hong Kong Stock Connect) held by it as a nominal holder designated by and on
+behalf of Hong Kong and foreign investors as at 31 December 2021.
+(6) According to the Notice on Comprehensively Transferring Part of State-Owned Capital to Fortify Social Security Funds (Cai Zi
+[2019] No. 49), MOF transferred 12,331,645,186 A shares to the state-owned capital transfer account of SSF in a lump sum in
+December 2019. According to the relevant requirements under the Notice of the State Council on Issuing the Implementation
+Plan for Transferring Part of State-Owned Capital to Fortify Social Security Funds (Guo Fa [2017] No. 49), SSF shall perform the
+obligation of more than 3-year lock-up period as of the date of the receipt of transferred shares. At the end of the reporting
+period, according to the information provided by SSF to the Bank, SSF also held 7,946,049,758 H shares of the Bank and
+20,277,694,944 A and H shares in aggregate, accounting for 5.69% of the Bank's total ordinary shares.
+(5) The number of shares held by HKSCC Nominees Limited at the end of the period refers to the total H shares held by it as a
+nominee on behalf of all institutional and individual investors registered with accounts opened with HKSCC Nominees Limited
+as at 31 December 2021, which included H shares of the Bank held by SSF, Ping An Asset Management Co., Ltd. and Temasek
+Holdings (Private) Limited.
+(4) Except to the extent unknown to HKSCC Nominees Limited, the top 10 shareholders of the Bank did not participate in any
+margin trading, short selling or refinancing business.
+(3) HKSCC Nominees Limited is a wholly-owned subsidiary of Hong Kong Securities Clearing Company Limited. Central Huijin Asset
+Management Co., Ltd. is a wholly-owned subsidiary of Huijin. Save as disclosed above, the Bank is not aware of any connected
+relations or concert party action among the afore-mentioned shareholders.
+0.12
+(2) The Bank had no shares subject to restrictions on sales.
+products 022L- CT001 Hu
+Traditional Ordinary insurance
+None
+0.12
+426,975,751
+39,168,600
+A Share
+Other entities
+_
+Taiping Life Insurance Co., Ltd.
+- Ordinary insurance products
+―005L-CT001 Hu
+Notes: (1) The above data are based on the Bank's register of shareholders as at 31 December 2021.
+Domestic
+Hwabao Trust Co., Ltd.
+11,400,000
+11,400,000
+ICBC
+98
+(3) "Shareholding percentage" refers to the percentage of domestic preference shares of "1" held by preference shareholders
+in total number (450 million shares) of domestic preference shares of "I".
+None
+2.2
+10,000,000
+Domestic
+preference shares
+Domestic non-state-
+owned legal person
+Ping An Property & Casualty
+Insurance Company of
+China, Ltd.
+preference shares
+Corporation Heilongjiang
+Branch
+None
+2.2
+10,000,000
+Notes: (1) The above data are based on the Bank's register of domestic preference shareholders of "1" as at 31 December 2021.
+(2) China National Tobacco Corporation Shandong Branch and China National Tobacco Corporation Heilongjiang Branch are both
+wholly-owned subsidiaries of China National Tobacco Corporation. "China Life Insurance Company Limited — Traditional
+Ordinary insurance products ―005L - CT001 Hu" is managed by China Life Insurance Company Limited. "Ping An Life
+Insurance Company of China, Ltd. - Traditional — Ordinary insurance products" is managed by Ping An Life Insurance Company
+of China, Ltd. Ping An Life Insurance Company of China, Ltd. and Ping An Property & Casualty Insurance Company of China,
+Ltd. have connected relations. Save as disclosed above, the Bank is not aware of any connected relations or concert party action
+among the afore-mentioned preference shareholders and among the afore-mentioned preference shareholders and top 10
+ordinary shareholders.
+Other entities
+Domestic
+None
+China National Tobacco
+Other entities
+Domestic
+preference shares
+2.2
+China National Tobacco
+10,000,000
+preference shares
+2.5
+Corporation Shandong Branch
+None
+Female
+1964
+August 2021-August 2024
+Non-executive Director
+Male
+1966
+January 2022-January 2025
+Anthony Francis Neoh
+Independent Non-executive Director
+Dong Yang
+1955
+1946
+April 2015-April 2021
+Yang Siu Shun
+Independent Non-executive Director
+Male
+April 2016-June 2022
+Shen Si
+Independent Non-executive Director
+Male
+1953
+Non-executive Director
+Male
+Chen Yifang
+Non-executive Director
+1971
+Male
+1967
+December 2021-December 2024
+Wang Jingwu
+Executive Director, Senior Executive Vice President,
+Chief Risk Officer
+Male
+1966
+September 2021-
+September 2024
+Lu Yongzhen
+January 2020-January 2023
+March 2017–June 2023
+1967
+August 2019-August 2022
+Feng Weidong
+Non-executive Director
+Male
+1964
+January 2020-January 2023
+Cao Liqun
+Non-executive Director
+Female
+Male
+Nout Wellink
+Huang Li
+Male
+June 2016-June 2022
+Zhang Jie
+External Supervisor
+Male
+1965
+November 2021-November 2024
+Zhang Wenwu
+Senior Executive Vice President
+Male
+1973
+1952
+July 2020-
+Senior Executive Vice President
+Male
+1969
+October 2020-
+Zhang Weiwu
+Senior Executive Vice President
+Male
+1975
+June 2021-
+Wang Bairong
+Xu Shouben
+Independent Non-executive Director
+Male
+Shen Bingxi
+1943
+December 2018-December 2021
+Fred Zuliu Hu
+Independent Non-executive Director
+Male
+1963
+April 2019-April 2022
+Zhang Wei
+Shareholder Supervisor
+Male
+External Supervisor
+1962
+Executive Director, Senior Executive Vice President
+Employee Supervisor
+Male
+1964
+June 2016-June 2022
+Wu Xiangjiang
+Employee Supervisor
+Male
+1962
+September 2020-September 2023
+June 2016-June 2022
+Zheng Guoyu
+Chen Siqing
+1964
+Type of preference
+shares
+Dividend
+rate
+Dividend
+distributed(1)
+Dividend
+Domestic preference share
+4.58%
+RMB2,061 million
+rate
+4.50%
+Dividend
+distributed(¹)
+RMB2,025 million
+2019
+Dividend
+Dividend
+distributed (¹)
+RMB2,025 million
+“工行優1"
+Domestic preference share
+“工行優2"
+4.20%
+RMB2,940 million
+Offshore EUR, USD and
+6.00%
+EUR40 million
+4.20%
+6.00%
+rate
+4.50%
+2020
+2021
+The table below shows the distribution of dividends on preference shares by the Bank in latest three years:
+Increase/
+decrease
+during the
+reporting
+period
+Number
+Number of
+None
+preference shares
+Domestic
+preference shares
+15,000,000
+2.1
+None
+Notes: (1) The above data are based on the Bank's register of domestic preference shareholders of "2" as at 31 December 2021.
+(2) Shanghai Tobacco Group Co., Ltd., China National Tobacco Corporation Shandong Branch and China National Tobacco
+Corporation Heilongjiang Branch are all wholly-owned subsidiaries of China National Tobacco Corporation. "China Life Insurance
+Company Limited - Traditional — Ordinary insurance products ―005L CT001 Hu" is managed by China Life Insurance
+Company Limited. "Ping An Life Insurance Company of China, Ltd. - Traditional - Ordinary insurance products" is managed by
+Ping An Life Insurance Company of China, Ltd. Ping An Life Insurance Company of China, Ltd. and Ping An Property & Casualty
+Insurance Company of China, Ltd. have connected relations. Save as disclosed above, the Bank is not aware of any connected
+relations or concert party action among the afore-mentioned preference shareholders and among the afore-mentioned
+preference shareholders and top 10 ordinary shareholders.
+(3) "Shareholding percentage" refers to the percentage of domestic preference shares of "2" held by preference shareholders
+in total number (700 million shares) of domestic preference shares of "2".
+Dividend Distribution of Preference Shares
+As per the resolution and authorization of the General
+Meeting, the Bank reviewed and approved the Proposal on
+Distribution of Dividends for "2" and Offshore USD
+Preference Shares at the meeting of its Board of Directors
+on 27 August 2021, permitting the Bank to distribute the
+dividends on domestic preference shares "I" on
+24 September 2021 and on the offshore USD preference
+shares on 23 September 2021; the Bank reviewed and
+approved the Proposal on Distribution of Dividends for
+Offshore EUR Preference Shares and "I" at the
+meeting of its Board of Directors on 29 October 2021,
+permitting the Bank to distribute the dividends on domestic
+preference shares "1" on 23 November 2021 and
+on the offshore EUR preference shares on 10 December
+2021.
+Annual Report 2021
+99
+Details of Changes in Share Capital and Shareholding of Substantial Shareholders
+Dividends on the Bank's domestic preference shares "I
+1" and "I" are paid annually in cash, and
+calculated based on the aggregate par value of the issued
+domestic preference shares. Dividends on the Bank's
+domestic preference shares are non-cumulative. Holders of
+domestic preference shares are only entitled to dividends
+at the prescribed dividend rate, but are not entitled to any
+distribution of residual profits of the Bank together with
+the holders of ordinary shares. According to the dividend
+distribution plan in the domestic preference share issuance
+proposal, the Bank distributed dividends of RMB2,061
+million (pre-tax) on the domestic preference share "
+1" at a dividend rate of 4.58% (pre-tax); and distributed
+dividends of RMB2,940 million (pre-tax) on the domestic
+preference share "2" at a dividend rate of 4.2%
+(pre-tax).
+Dividends on the Bank's offshore EUR preference shares
+are paid annually in cash, and calculated based on the
+liquidation preference of the offshore preference shares.
+Dividends on the Bank's offshore EUR preference shares
+are non-cumulative. Holders of offshore EUR preference
+shares are only entitled to dividends at the prescribed
+dividend rate, but are not entitled to any distribution of
+residual profits of the Bank together with the holders of
+ordinary shares. According to the dividend distribution
+plan in the offshore EUR preference share issuance
+proposal, total dividends of EURO.04 billion (pre-tax) on
+the offshore EUR preference shares were distributed in EUR
+at a dividend rate of 6% (after-tax). According to relevant
+laws, when the Bank distributes dividends for offshore
+EUR preference shares, the enterprise income tax shall be
+withheld by the Bank at a rate of 10%. According to the
+requirements of the terms and conditions of the offshore
+EUR preference shares, the Bank paid the relevant taxes,
+included in the dividends for offshore EUR preference
+shares.
+Dividends on the Bank's offshore USD preference shares
+are paid annually in cash, and calculated based on the
+liquidation preference of the offshore preference shares.
+Dividends on the Bank's offshore USD preference shares
+are non-cumulative. Holders of offshore USD preference
+shares are only entitled to dividends at the prescribed
+dividend rate, but are not entitled to any distribution of
+residual profits of the Bank together with the holders of
+ordinary shares. According to the dividend distribution plan
+in the offshore USD preference share issuance proposal,
+total dividends of about USD115.3 million (pre-tax) on the
+offshore USD preference shares were distributed in USD at
+a dividend rate of 3.58% (after-tax). According to relevant
+laws, when the Bank distributes dividends for offshore
+USD preference shares, the enterprise income tax shall be
+withheld by the Bank at a rate of 10%. According to the
+requirements of the terms and conditions of the offshore
+USD preference shares, the Bank paid the relevant taxes,
+included in the dividends for offshore USD preference
+shares.
+RMB2,940 million
+EUR40 million
+July 2021-July 2024
+N/A
+6.00%
+RMB preference shares(2)
+101
+Directors, Supervisors and Senior Management
+Basic Information on Directors, Supervisors and Senior Management
+Birth
+Name
+Position
+Gender
+year
+Tenure
+Chief Business Officer
+Annual Report 2021
+Chairman, Executive Director
+1960
+May 2019-May 2022
+Liao Lin
+Vice Chairman, Executive Director, President
+Male
+1966
+July 2020-July 2023
+Huang Liangbo
+Chairman of the Board of Supervisors
+Male
+Male
+According to the Accounting Standard for Business
+Enterprises No. 22 Recognition and Measurement
+of Financial Instruments, the Accounting Standard for
+Business Enterprises No. 37 Presentation of Financial
+well
+Instruments promulgated by MOF as
+International Financial Reporting Standard 9
+Instruments and the International Accounting Standard
+32 Financial Instruments: Presentation promulgated
+by International Accounting Standards Board and other
+accounting standards and the key terms of issuance of
+the Bank's preference shares, the issued and existing
+preference shares do not contain contractual obligations
+to deliver cash or other financial assets or contractual
+obligations to deliver variable equity instruments for
+settlement, and shall be accounted for as other equity
+instruments.
+as the
+Financial
+Accounting Policy Adopted for Preference
+Shares and Rationale
+EUR40 million
+USD196 million
+RMB800 million
+Offshore USD preference
+share(3)
+About USD115.3
+3.58%
+million
+N/A
+N/A
+N/A
+N/A
+Notes: (1) Dividend distributed is tax included.
+(2)
+Offshore EUR, USD and RMB preference shares refer to EURO.6 billion preference shares, USD2.94 billion preference shares and
+RMB12.0 billion preference shares issued offshore by the Bank at a dividend rate of 6.00% in 2014. The Bank redeemed the
+above offshore USD preference shares and offshore RMB preference shares on 10 December 2019 and the above offshore EUR
+preference shares on 10 December 2021.
+(3) Offshore USD preference share refers to USD2.9 billion preference shares issued offshore by the Bank at a dividend rate of
+3.58% in 2020.
+The above-mentioned preference share dividend distribution plans have been fulfilled. For particulars of the Bank's
+distribution of dividends on preference shares, please refer to the announcements of the Bank on the website of SSE, the
+"HKEXnews" website of HKEX and the website of the Bank.
+100
+ICBC
+Details of Changes in Share Capital and Shareholding of Substantial Shareholders
+Redemption or Conversion of Preference
+Shares
+In 2014, the Bank issued EURO.6 billion offshore
+preference shares. The Board of Directors of the Bank
+reviewed and approved the Proposal on the Exercise of
+Redemption of Offshore EUR Preference Shares on 27
+August 2021. On the premise of obtaining the approval of
+CBIRC, the Bank planned to exercise the right to redeem
+all the abovementioned offshore EUR preference shares on
+10 December 2021. In October 2021, the Bank received
+a reply letter from CBIRC, which had no objection to the
+Bank's redemption of EURO.6 billion offshore preference
+shares. Pursuant to the terms and conditions of the
+offshore EUR preference shares and the reply letter from
+CBIRC, the Bank redeemed the aforementioned offshore
+EUR preference shares in whole on 10 December 2021
+at the redemption price of each offshore EUR preference
+share (being the aggregate of an amount equal to the
+liquidation preference of each offshore EUR preference
+share plus any dividends accrued but unpaid in respect of
+the period from (and including) the immediately preceding
+dividend payment date to (but excluding) the redemption
+date). Subsequent to the redemption and cancellation
+of the aforementioned offshore EUR preference shares
+on the redemption date, there are no EUR preference
+shares issued in the offshore market. Please refer to the
+announcements published by the Bank on the website of
+SSE, the "HKEXnews" website of HKEX and the website of
+the Bank.
+During the reporting period, the Bank did not convert any
+preference share.
+Restoration of Voting Rights of Preference
+Shares
+During the reporting period, the Bank did not restore any
+voting right of preference share.
+N/A
+Male
+Male
+April 2020-
+4.3
+30,000,000
+Domestic
+preference shares
+legal person
+Other entities
+Shanghai Tobacco Group
+Co., Ltd.
+None
+5.3
+37,250,000
+37,250,000
+None
+Domestic
+Jiangsu International Trust
+Co., Ltd.
+preference shares
+None
+7.1
+50,000,000
+Domestic
+Other entities
+China National Tobacco
+Corporation
+preference shares
+legal person
+State-owned
+None
+preference shares
+BOCOM Schroders Asset
+Management Co., Ltd.
+Ping An Property & Casualty
+Insurance Company of
+China, Ltd.
+Directors, Supervisors and Senior Management
+Zhang Weiwu, Senior Executive Vice President
+Mr. Zhang has served as Senior Executive Vice President of the Bank since June 2021. He joined ICBC in July 1999, and was
+appointed as General Manager of ICBC (Europe) Amsterdam Branch in January 2011, General Manager of Singapore Branch
+in February 2013 and General Manager of the International Banking Department of the Head Office of ICBC in January
+2017. Mr. Zhang graduated from the Northwest University in China and obtained Master's degree in Political Economy and
+MBA from Hitotsubashi University in Japan. He is a senior economist.
+Wang Bairong, Chief Business Officer
+Mr. Wang has served as Chief Business Officer of the Bank since April 2020. He began his career in 1986. He joined ICBC in
+1991 and previously served as Assistant to Head of Zhejiang Branch and Head of Shaoxing Branch, Deputy Head of Zhejiang
+Branch and General Manager of the Banking Department of Zhejiang Branch, Deputy Head (person in charge) and Head of
+Chongqing Branch and Chief Risk Officer. Mr. Wang graduated from the Party School of the Central Committee of CPC and
+obtained a Master's degree in Economics. He is a senior economist.
+Guan Xueqing, Board Secretary
+Mr. Guan has served as Board Secretary of the Bank since July 2016. He joined ICBC in 1984 and served as Head of Suining
+Branch in Sichuan, Representative of Frankfurt Representative Office and Deputy General Manager of Frankfurt Branch,
+Deputy Head of Sichuan Branch, Deputy Head of Sichuan Branch and General Manager of Banking Department of Sichuan
+Branch, and Head of Hubei Branch and Sichuan Branch. Previously Mr. Guan was also General Manager of Corporate
+Strategy and Investor Relations Department of the Bank. He graduated from the Southwestern University of Finance and
+Economics and obtained a Doctorate degree in Economics. He is a senior economist.
+Xiong Yan, Chief Business Officer
+Ms. Xiong has served as Chief Business Officer of the Bank since April 2020. She joined ICBC in 1984, and served as
+Deputy Director-General of Kunming Sub-bureau of the Internal Audit Bureau, Deputy General Manager of Yunnan Branch,
+Deputy Director-General of the Sub-bureau directly managed by the Internal Audit Bureau, Deputy General Manager of
+the Corporate Banking Department I (Corporate Banking Department) and General Manager of the Institutional Banking
+Department of the Head Office. Ms. Xiong graduated from Hunan University, and obtained a degree of International Master
+of Business Administration (IMBA) from Fudan University and The University of Hong Kong. She is a senior economist.
+Song Jianhua, Chief Business Officer
+Bank of Beijing Co., Ltd.
+Mr. Song has served as Chief Business Officer of the Bank since April 2020. He joined ICBC in 1987. He was appointed as
+Deputy General Manager of Jiangsu Branch and General Manager of the Personal Banking Department of the Head Office.
+Mr. Song graduated from Peking University and obtained a Doctorate degree in management science and engineering from
+Nanjing University. He is a senior economist.
+None of the Directors, Supervisors and Senior Management members of the Bank, whether they are incumbent or have left
+office during the reporting period, have been punished by the securities regulator in the past three years.
+108
+ICBC
+Domestic
+preference shares
+None
+2.9
+20,000,000
+Domestic
+Domestic non-state-
+owned legal person
+Domestic non-state-
+owned legal person
+Domestic non-state-
+owned legal person
+Mr. Lu Yongzhen, Mr. Feng Weidong, Ms. Cao Liqun, Ms. Chen Yifang and Mr. Dong Yang were recommended by Huijin to
+serve as Non-executive Directors of the Bank. Huijin holds interests in shares of the Bank. Please refer to the section headed
+"Details of Changes in Share Capital and Shareholding of Substantial Shareholders ― Interests and Short Positions Held by
+Substantial Shareholders and Other Persons" for further details.
+10.0
+70,000,000
+Domestic
+State-owned
+Hwabao Trust Co., Ltd.
+preference shares
+legal person
+Limited
+None
+17.1
+120,000,000
+Domestic
+China Life Insurance Company
+Domestic
+shares
+marked
+restrictions
+Shareholding
+percentage (%)
+the period
+at the end of
+locked-up/
+subject to
+Shares held
+pledged/
+Class of shares
+on sales
+112,750,000
+112,750,000
+16.1
+State-owned
+CCB Trust Co., Ltd.
+preference shares
+legal person
+Co., Ltd.
+None
+10.0
+70,000,000
+Domestic
+State-owned
+BOC International (China)
+preference shares
+legal person
+Group Co., Ltd.
+None
+14.3
+100,000,000
+Domestic
+State-owned
+China Mobile Communications
+preference shares
+legal person
+None
+107
+1962
+Annual Report 2021
+Xu Shouben, Senior Executive Vice President
+January 2020-March 2021
+Male
+1963
+February 2015-January 2022
+Female
+1971
+August 2017-February 2021
+Male
+1966
+December 2015-November 2021
+1963
+102
+Directors, Supervisors and Senior Management
+Notes: (1) Please refer to the section headed "Appointment and Removal".
+(2)
+The terms of Mr. Liao Lin, Mr. Zheng Guoyu and Mr. Wang Jingwu as Executive Directors of the Bank are set out in the above
+table. Please refer to the section headed "Biographies of Directors, Supervisors and Senior Management" for the starting time of
+their terms as Senior Management members of the Bank.
+(3) According to laws, regulations and the Articles of Association of the Bank, before the newly elected directors take office, the
+current directors shall continue to act as directors.
+(4) According to the regulations of CSRC, the commencement date of a re-elected director or supervisor's tenure as indicated in the
+above table shall be the day of his/her first appointment.
+(5) During the reporting period, the Bank did not implement any share incentives. None of the existing directors, supervisors and
+senior management members of the Bank or those who left office during the reporting period held shares or share options or
+were granted restricted shares of the Bank, and there was no change during the reporting period.
+(6) The full name of Mr. Nout Wellink is Arnout Henricus Elisabeth Maria Wellink.
+Biographies of Directors, Supervisors and Senior Management
+Chen Siqing, Chairman, Executive Director
+ICBC
+Mr. Chen has served as Chairman and Executive Director of the Bank since May 2019. He joined Bank of China in 1990. Mr.
+Chen Siqing previously worked in the Hunan Branch of Bank of China before he was dispatched to the Hong Kong Branch
+of China and South Sea Bank Ltd. as Assistant General Manager. Mr. Chen held various positions in Bank of China, including
+Assistant General Manager and Vice General Manager of the Fujian Branch, General Manager of the Risk Management
+Department of the Head Office, General Manager of the Guangdong Branch, Executive Vice President, President, Vice
+Chairman and Chairman of Bank of China. Mr. Chen served concurrently as Chairman of the Board of Directors of BOC
+Aviation Limited, Non-executive Director, Vice Chairman and Chairman of the Board of Directors of BOC Hong Kong
+(Holdings) Limited. Mr. Chen graduated from Hubei Institute of Finance and Economics, and obtained a Master's degree
+in Business Administration (MBA) from Murdoch University, Australia. He is a Certified Public Accountant and a senior
+economist.
+Male
+External Supervisor
+Guan Xueqing
+Board Secretary
+Male
+1963
+July 2016-
+Xiong Yan
+Chief Business Officer
+Female
+1964
+April 2020-
+of shares
+Song Jianhua
+1965
+April 2020-
+Directors, Supervisors and Senior Management Leaving Office
+Qu Qiang
+Yang Guozhong
+Chairman of the Board of Supervisors
+Zheng Fuqing
+Non-executive Director
+Mei Yingchun
+Non-executive Director
+Chief Business Officer
+Liao Lin, Vice Chairman, Executive Director, President
+Mr. Liao has served as Vice Chairman, Executive Director and President of the Bank since March 2021, Executive Director
+of the Bank since July 2020, and Senior Executive Vice President, Senior Executive Vice President and concurrently Chief
+Risk Officer since November 2019. Mr. Liao joined China Construction Bank in 1989, and was appointed as Deputy General
+Manager of Guangxi Branch of China Construction Bank, General Manager of Ningxia Branch, Hubei Branch and Beijing
+Branch of China Construction Bank, Chief Risk Officer, Executive Vice President and concurrently Chief Risk Officer of
+China Construction Bank. Mr. Liao graduated from Guangxi Agricultural University. He obtained a Doctorate degree in
+management science from Southwest Jiaotong University. Mr. Liao is a senior economist.
+Huang Liangbo, Chairman of the Board of Supervisors
+Directors, Supervisors and Senior Management
+Shen Si, Independent Non-executive Director
+Mr. Shen has served as Independent Non-executive Director of the Bank since March 2017. Previously, he served as Deputy
+Division Chief and Division Chief of Zhejiang Branch of PBC, Deputy General Director of the Investigation and Statistics
+Department of the Head Office of PBC, and Deputy President of the Hangzhou Branch of Shanghai Pudong Development
+Bank, Board Secretary of Shanghai Pudong Development Bank and Executive Director and concurrently Board Secretary of
+Shanghai Pudong Development Bank. He obtained a Master's degree in Economics from Zhejiang University and an EMBA
+degree. He is a senior economist.
+Nout Wellink, Independent Non-executive Director
+Mr. Wellink has served as Independent Non-executive Director of the Bank since December 2018. Previously, he served
+as the Treasurer General in the Dutch Ministry of Finance, member of the Executive Board and the President of the Dutch
+Central Bank, member of the Governing Council of the European Central Bank, member of the Group of Ten Central Bank
+Governors and Governor of the International Monetary Fund, member and Chairman of the Board of Directors of the Bank
+for International Settlements, Chairman of the Basel Committee on Banking Supervision, Independent Director of Bank of
+China Limited, Vice Chairman of Supervisory Board of PricewaterhouseCoopers Accountants N.V. and an Emeritus Professor
+at the Free University in Amsterdam. Mr. Wellink also served as member of the supervisory board of a bank, a reinsurance
+company and other enterprises on behalf of the Dutch authorities, Chairman of the Board of Supervisors of the Netherlands
+Open Air Museum, member and treasurer of the Royal Picture Gallery Mauritshuis and the Westeinde Hospital in The Hague.
+He was awarded a Knighthood in the Order of the Netherlands Lion in 1980 and is Commander of the Order of Orange-
+Nassau since 2011. He received a Master's degree in Law from Leiden University, a Doctorate degree in Economics from
+Erasmus University Rotterdam and an Honorary Doctorate from Tilburg University.
+Fred Zuliu Hu, Independent Non-executive Director
+Mr. Hu has served as Independent Non-executive Director of the Bank since April 2019. He previously served as a senior
+economist at the International Monetary Fund, Head of Research at the World Economic Forum, the chairman for Greater
+China and a partner at Goldman Sachs Group, Inc., an independent non-executive director of Great Wall Pan Asia Holdings
+Limited (formerly known as SCMP Group Limited), an independent non-executive director of Hang Seng Bank Limited,
+the non-executive director of China Asset Management Co., Ltd., an independent director of Dalian Wanda Commercial
+Management Group Co., Ltd., an independent director of Shanghai Pudong Development Bank and the independent non-
+executive director of Hong Kong Exchanges and Clearing Limited, etc. Mr. Hu currently serves in various positions such as
+the chairman of Primavera Capital Group, the non-executive chairman of Yum China Holdings, Inc, the independent non-
+executive director of Ant Group Co., Ltd., the director of UBS Group AG, the co-chair of The Nature Conservancy's Asia
+Pacific Council and the director of the China Medical Board. Mr. Hu is also a member of the Global Board of Advisors for
+the Council on Foreign Relations, the 21st Century Council of the Berggruen Institute, the Harvard Global Advisory Council,
+the Harvard Kennedy School Mossavar-Rahmani Center for Business and Government, the Stanford Center for International
+Development, and the Jerome A. Chazen Institute of International Business at Columbia University etc. He concurrently
+serves as the co-director of the National Center for Economic Research and a professor at Tsinghua University, and he is also
+an adjunct professor at the Chinese University of Hong Kong and Peking University. Mr. Hu obtained a master's degree in
+engineering science from Tsinghua University, and a master's degree and a PhD in economics from Harvard University.
+Zhang Wei, Shareholder Supervisor
+Mr. Zhang has concurrently served as Shareholder Supervisor and Director of the Board of Supervisors' Office of the Bank
+since June 2016. He joined ICBC in 1994, and has served as Employee Supervisor of the Board of Supervisors, General
+Manager of the Legal Affairs Department and Chief of Consumer Protection Office of the Bank. He graduated from Peking
+University with a Doctorate degree in Law and is a research fellow.
+106
+105
+ICBC
+Huang Li, Employee Supervisor
+Mr. Huang has served as Employee Supervisor of the Bank since June 2016. He joined ICBC in 1994 and is currently
+the Head of Beijing Branch of the Bank. He served as Deputy General Manager and General Manager of the Banking
+Department as well as Deputy Head and Head of Guizhou Branch of ICBC. Mr. Huang graduated from The University of
+Hong Kong with an MBA degree. He is a senior economist.
+Wu Xiangjiang, Employee Supervisor
+Mr. Wu has served as Employee Supervisor of the Bank since September 2020. He joined ICBC in 1988 and is currently the
+General Manager of Internal Control & Compliance Department of the Bank. He served such positions at the Bank as Deputy
+Head of Zhejiang Branch, General Manager of E-banking Department and General Manager of Internet Finance Department.
+Mr. Wu graduated from Zhejiang University with a Doctorate degree in Management. He is a senior economist.
+Shen Bingxi, External Supervisor
+Mr. Shen has served as External Supervisor of the Bank since June 2016. He previously served as the Deputy Chief of the
+Financial Market Division of the Financial System Reform Department, Chief of the System Reform Division and Monetary
+Policy Research Division of the Policy Study Office, and Chief of the Monetary Policy Research Division of the Research
+Bureau of the PBC, Chief Representative of the PBC Representative Office in Tokyo, Deputy Director-general and Director-
+level Inspector of Financial Market Department of the PBC, and Non-executive Director of Agricultural Bank of China. Mr.
+Shen is currently guest professor of Tsinghua University, Zhejiang University and Nankai University. Mr. Shen graduated from
+Renmin University of China, and received a Doctorate degree in Economics. He is a research fellow.
+Zhang Jie, External Supervisor
+Mr. Zhang has served as External Supervisor of the Bank since November 2021. He is currently a professor and doctoral
+supervisor of the Renmin University of China, director of the International Monetary Institute, a distinguished professor
+of the Ministry of Education's "Changjiang Scholars Program", a famous teacher of the national "Ten Thousand Talents
+Program", and a national candidate of the "New Century Talents Project". Mr. Zhang is a recipient of the special
+government allowance provided by the State Council to experts, and is engaged in research on the topics of institutional
+finance, China's financial system and financial development. He was the Dean of the School of Finance of Shaanxi Institute
+of Finance and Economics, the Associate Dean of the School of Economics and Finance of Xi'an Jiaotong University, the
+Associate Dean of the School of Finance of Renmin University of China, and the first Secretary General of the College
+Finance Teaching Steering Committee of the Ministry of Education. At present, he is concurrently a researcher of the
+Finance Research Institute of the Counsellor's Office of the State Council, and an executive director of the China Society for
+Finance and Banking. Mr. Zhang graduated from Shaanxi University of Finance and Economics with a Doctorate degree in
+Economics.
+Zhang Wenwu, Senior Executive Vice President
+Mr. Zhang has served as Senior Executive Vice President of the Bank since July 2020. He joined ICBC in 1995. He was
+appointed as Deputy General Manager of the Finance & Accounting Department of the Head Office, Deputy Head of
+Liaoning Branch, Executive Director and Chief Financial Officer of ICBC-AXA Assurance Co., Ltd., Director of the Board of
+Supervisors' Office of the Head Office, and General Manager of the Finance & Accounting Department of the Head Office.
+Mr. Zhang graduated from the University of International Business and Economics, and he obtained a Doctorate degree in
+Management from Renmin University of China. He is a senior accountant.
+Directors, Supervisors and Senior Management
+Annual Report 2021
+Mr. Yang has served as Independent Non-executive Director of the Bank since April 2016. He previously served as
+Chairman and Principal Partner of PricewaterhouseCoopers Hong Kong, Executive Chairman and Principal Partner of
+PricewaterhouseCoopers Chinese Mainland and Hong Kong, member of five-people leading group of global leadership
+committee of PricewaterhouseCoopers, Chairman of PricewaterhouseCoopers Asia-Pacific region, Director and Chairman of
+Audit Committee of Hang Seng Management College, Vice Chairman of the Council of the Open University of Hong Kong
+and a member of the Exchange Fund Advisory Committee of Hong Kong Monetary Authority. Mr. Yang currently serves
+as a member of the 13th National Committee of the Chinese People's Political Consultative Conference, a member of the
+board of directors of the Hong Kong Jockey Club and an Independent Non-executive Director of Tencent Holdings Limited.
+Mr. Yang graduated from the London School of Economics and Political Science. He was awarded the degree of Honorary
+Doctor of Social Sciences by The Open University of Hong Kong. He is a Justice of the Peace in Hong Kong. Mr. Yang holds
+the qualification of Chartered Accountants, and is a senior member of the Institute of Chartered Accountants in England and
+Wales, the Hong Kong Institute of Certified Public Accountants and the Chartered Institute of Management Accountants.
+Yang Siu Shun, Independent Non-executive Director
+Mr. Huang has served as Chairman of the Board of Supervisors of the Bank since July 2021. He served as the Deputy
+Chief of the Human Resources Department of PBC, President of Nanning Central Sub-branch of PBC and Chief of Guangxi
+Zhuang Autonomous Region Branch of State Administration of Foreign Exchange, General Manager of the Human Resources
+Department, member of the Business Committee, Assistant to President and Vice President of Export-Import Bank of
+China, and Chairman of the Board of Supervisors of the People's Insurance Company (Group) of China Limited. Mr. Huang
+graduated from Renmin University of China and obtained a Master's degree in Law, and is a senior economist.
+Zheng Guoyu, Executive Director, Senior Executive Vice President
+Mr. Zheng has served as Executive Director and Senior Executive Vice President of the Bank since December 2021 and
+as Senior Executive Vice President of the Bank since September 2021. He joined Bank of China since November 1988.
+He was appointed as Assistant to General Manager and Deputy General Manager of Hubei Branch, General Manager of
+Shanxi Branch, General Manager of Sichuan Branch, Member of Executive Committee of Bank of China, and Executive Vice
+President of Bank of China. Mr. Zheng graduated from Wuhan Institute of Water Transportation Engineering and obtained a
+Master's degree in Business Administration from Huazhong University of Science and Technology. He is a senior economist.
+Annual Report 2021
+103
+Directors, Supervisors and Senior Management
+Wang Jingwu, Executive Director, Senior Executive Vice President, Chief Risk Officer
+Mr. Wang has served as Executive Director, Senior Executive Vice President and concurrently Chief Risk Officer since
+September 2021, and as Senior Executive Vice President of the Bank since April 2020. He joined PBC in August 1985, and
+has successively served as Supervision Commissioner (Deputy Director level) of PBC Shijiazhuang Central Sub-branch, Head of
+PBC Shijiazhuang Central Sub-branch and concurrently Director of State Administration of Foreign Exchange ("SAFE") Hebei
+Branch, Head of PBC Hohhot Central Sub-branch and concurrently Director of SAFE Inner Mongolia Branch, Head of PBC
+Guangzhou Branch and concurrently Director of SAFE Guangdong Branch, and Director-General of PBC Financial Stability
+Bureau since January 2002. Mr. Wang graduated from the Hebei Banking School, and he received a doctorate degree in
+economics from Xi'an Jiaotong University. He is a research fellow.
+Lu Yongzhen, Non-executive Director
+Mr. Lu has served as Non-executive Director of the Bank since August 2019. He joined Huijin in 2019. Mr. Lu previously
+served as Deputy Director of the Administrative Office of the Economic Research Consultation Centre of the State Economic
+and Trade Commission, Director of the Specific Research Department of the Economic Research Centre of the State
+Economic and Trade Commission, Director of the Capital Markets Research Department of the Research Centre of the State-
+owned Assets Supervision and Administration Commission of the State Council, and Director Assistant of the Research
+Centre of the State-owned Assets Supervision and Administration Commission of the State Council with the concurrent post
+as the Director of the Capital Markets Research Department, and Deputy Director of the Research Centre of the State-owned
+Assets Supervision and Administration Commission of the State Council. Mr. Lu obtained a Bachelor's degree and a Master's
+degree in History from Peking University, and a Doctorate degree in Economics from Southwestern University of Finance and
+Economics. He is a researcher.
+Feng Weidong, Non-executive Director
+Mr. Feng has served as Non-executive Director of the Bank since January 2020. He joined MOF in 1986. He previously
+served as Deputy Director of Academic Affairs Division of Chinese Accounting Correspondence School of Accounting
+Department of MOF (deputy division chief level), Person in charge of Teaching Material Department of National Accountant
+Certification Examination Leading Group Office, Director of Accounting Personnel Management Division and Director of
+Institutional System Division I of Accounting Department of MOF, Deputy Director (deputy director-general level), Deputy
+Director (person in charge), Director (director-general level), Secretary of the Party Committee and Director of National
+Accountant Assessment & Certification Centre of MOF. He concurrently serves as a Managing Director of the 8th Council
+of the Accounting Society of China, a part-time professor and off-campus practice tutor for postgraduate students of the
+School of Economics and Management of Beijing Jiaotong University, and a visiting tutor for postgraduate students in the
+Accounting School of the Central University of Finance and Economics. Mr. Feng obtained a Bachelor's degree in Economics
+from Dongbei University of Finance & Economics and Doctorate degree from Beijing Jiaotong University. Mr. Feng Weidong
+is a senior accountant, researcher, non-practicing certified public accountant and is a recipient of the Special Government
+Allowance by the State Council of China.
+Cao Liqun, Non-executive Director
+Ms. Cao has served as Non-executive Director of the Bank since January 2020. She joined Huijin in 2020. Ms. Cao previously
+served as Deputy Director of Regulations Division, General Affairs Department, Director of Regulations Division, General
+Affairs Department, Director of Non-Financial Institutions Inspection Division, Supervision and Inspection Department,
+Director of General Affairs Division, Supervision and Inspection Department, Deputy Director-General of Supervision and
+Inspection Department, Inspector of General Affairs Department (Policy and Regulation Department), Level-Two Inspector of
+General Affairs Department (Policy and Regulation Department) of State Administration of Foreign Exchange, and acted as
+Deputy Director of Administrative Committee of Beijing's Zhongguancun Science Park. Ms. Cao obtained a Bachelor's degree
+in Law from China University of Political Science and Law, a Master's degree in Finance from Renmin University of China, and
+a Master's degree in Public Administration from Peking University. Ms. Cao is an economist.
+104
+ICBC
+Directors, Supervisors and Senior Management
+Chen Yifang, Non-executive Director
+Ms. Chen has served as Non-executive Director of the Bank since August 2021. She joined MOF in August 1985. She
+previously served as Deputy Division Chief of Payment Management Division and Deputy Director of Charge Bill Regulatory
+Center of General Affairs and Reform Department of MOF, Deputy Division Chief of the Charging Fund Policy Management
+Division of the Comprehensive Department of MOF, Division Chief of Charging Fund Division of Policy Planning Department
+of MOF, Division Chief of Housing and Land Division of the Comprehensive Department of MOF, Deputy Director-General of
+the Comprehensive Department of MOF, Member of the Party Group, Inspector and Deputy Secretary of the Party Group of
+Shenzhen Finance Supervision Commissioner Office of MOF, Deputy Secretary of the Party Group, Inspector and Level-one
+Inspector of Shenzhen Regulatory Bureau of MOF, and Level-one Inspector of Fiscal Notes Supervision Center of MOF. Ms.
+Chen obtained a Bachelor's degree in Economics from Jiangxi University of Finance and Economics.
+Dong Yang, Non-executive Director
+Mr. Dong has served as Non-executive Director of the Bank since January 2022. He joined MOF in August 1989. He
+previously served as assistant researcher, researcher and secretary (director level) of the Department of National Defense of
+MOF, a member of the CPC Committee, Deputy Inspector, and Discipline Inspection Team Leader of the Commissioner's
+Office of MOF in Heilongjiang, a member of the CPC Committee, Deputy Inspector and Discipline Inspection Leader of the
+Commissioner's Office of MOF in Beijing, a member of the CPC Committee, Deputy Director, and Discipline Inspection Team
+Leader of the Beijing Regulatory Bureau of MOF. Mr. Dong graduated from the Beijing Normal University and obtained a
+Master's degree in Management from Harbin Engineering University.
+Anthony Francis Neoh, Independent Non-executive Director
+Mr. Neoh has served as Independent Non-executive Director of the Bank since April 2015. He previously served as Chief
+Advisor to CSRC, a member of the International Consultation Committee of CSRC, a member of the Basic Law Committee
+of the Hong Kong Special Administrative Region under the Standing Committee of the National People's Congress of
+People's Republic of China, and Chairman of the Hong Kong Securities and Futures Commission. He was Chairman of the
+Technical Committee of the International Organization of Securities Commissions, Chairman of Hong Kong Independent
+Police Complaints Council, a Non-executive Director of Global Digital Creations Holdings Limited. He was an Independent
+Non-executive Director of Link Management Limited, which is the Manager of Link Real Estate Investment Trust. He was
+also an Independent Non-executive Director of China Shenhua Energy Company Limited, Bank of China Limited, China Life
+Insurance Company Limited and New China Life Insurance Company Ltd. Mr. Neoh currently serves as an Independent Non-
+executive Director of CITIC Limited, Treasurer and Member of Council of The Chinese University of Hong Kong and Chairman
+of the Asian Academy of International Law. He graduated from the University of London with a Bachelor's degree in Law.
+He is Honorary Doctorate of Law of Chinese University of Hong Kong and Open University of Hong Kong and Honorary
+Doctorate of Social Sciences of Lingnan University. He was elected Honorary Fellow of the Hong Kong Securities Institute,
+Fellow of the Hong Kong Academy of Finance and Academician of the International Euro-Asian Academy of Sciences. Mr.
+Neoh was appointed as Senior Counsel in Hong Kong. He is a barrister of England and Wales. He was admitted to the State
+Bar of California.
+Mr. Xu has served as Senior Executive Vice President of the Bank since October 2020. He joined ICBC in 1995. He was
+appointed as Deputy Head of Guangdong Branch and Head of Shenzhen Branch. Mr. Xu graduated from the Harbin Institute
+of Technology, and he obtained a Doctorate degree in Economics from Sun Yat-sen University. He is a senior economist.
+Nature of
+shareholder
+State-owned
+Unit: Share
+Name of shareholder
+2.1
+15,000,000
+Details of Changes in Share Capital and Shareholding of Substantial Shareholders
+PARTICULARS OF SHAREHOLDING OF THE TOP 10 DOMESTIC PREFERENCE SHAREHOLDERS OF "I"
+Fred Zuliu Hu
+3/3
+8/8
+13/13
+3/3
+Nout Wellink
+5/5
+4/4
+2/2
+4/4
+5/5
+13/13
+3/3
+Shen Si
+4/5
+4/4
+7/7
+4/4
+5/5
+5/5
+2/2
+3/3
+11/13
+99
+6/8
+Special Committees under the Board of Directors
+As at the disclosure date of the results, the composition of special committees of the Board of Directors of the Bank is as
+follows:
+The Board of Directors of the Bank has established eight special committees, namely, the Strategy Committee, the Corporate
+Social Responsibility and Consumer Protection Committee, the Audit Committee, the Risk Management Committee, the
+Nomination Committee, the Compensation Committee, the Related Party Transactions Control Committee and the US Risk
+Committee. Except the Strategy Committee and the Corporate Social Responsibility and Consumer Protection Committee,
+chairmen of all the other committees are assumed by Independent Non-executive Directors. More than half of the members
+of the Audit Committee, the Nomination Committee, the Compensation Committee and the Related Party Transactions
+Control Committee are Independent Non-executive Directors.
+Special Committees of the Board of Directors
+Special Committees of the Board of Directors
+Corporate Governance Report
+115
+Annual Report 2021
+Appointment
+-
+6/7
+(3) For the change of directors, please refer to the section headed "Directors, Supervisors and Senior Management
+and Removal".
+(2)
+Notes: (1) "Attendances in person" refers to attending meetings in person or on telephone or by video conference.
+Mei Yingchun
+¿Fuging 33 1/13 88 4455
+Zheng Fuqing
+Directors Leaving Office
+6/7
+4/4
+2/2
+5/5
+3/5
+Directors who did not attend the meetings of the Board of Directors and its special committees in person appointed other
+directors to attend the meetings and exercise the voting right on their behalf.
+4/4
+5/5
+| |
+3/3
+Feng Weidong
+2/2
+-
+4/4
+8/8
+13/13
+3/3
+Lu Yongzhen
+Non-executive Directors
+13/13
+1/2
+1/1
+4/4
+1/1
+Wang Jingwu
+Zheng Guoyu
+5/5
+3/3
+7/7
+13/13
+3/3
+1/1
+Corporate
+Social
+Responsibility
+5/5
+7/7
+13/13
+3/3
+Yang Siu Shun
+8/8
+12/13
+3/3
+Anthony Francis Neoh
+Independent Non-executive Directors
+Dong Yang ........
+3/3
+4/4
+5/5
+Chen Yifang
+5/5
+5/5
+5/5
+4/4
+5/5
+3/3
+13/13
+3/3
+Cao Liqun
+1/1
+Related Party
+and Consumer
+Strategy
+Corporate Governance Report
+ICBC
+116
+Chairman
+Committee Member
+Committee Member
+Fred Zuliu Hu
+Committee Member
+Chairman
+Committee Member
+During the reporting period, the performance of duties by the special committees of the Board of Directors is set out below:
+Committee Member
+Committee Member
+Chairman
+Chairman
+Committee Member
+Committee Member
+Committee Member
+Chairman
+Committee Member
+Committee Member
+Chairman
+Committee Member
+Committee Member Committee Member
+Nout Wellink
+Shen Si
+Committee Member
+Committee Member
+Strategy
+Committee
+Responsibility
+ICBC
+118
+The Bank has established a vertical and independent internal audit management system responsible and
+reporting to the Board of Directors. The Board of Directors regularly reviews the internal audit plan and
+hears internal audit reports on internal audit activities, audit supporting measures, internal audit team
+building, etc., thus effectively performing the function of risk management. The Audit Committee examines,
+monitors and assesses the internal audit work of the Bank, supervises the internal audit rules and their
+implementation, and makes assessment of audit procedures and results of the internal audit department.
+It is also responsible for urging the Bank to ensure adequate resources for the internal audit department
+and coordinating the communication between the internal audit department and external auditors. The
+internal audit department is accountable to and reports to the Board of Directors, is guided by the Board of
+Supervisors and is under the examination, supervision and assessment of the Audit Committee. For details of
+the internal audit, please refer to the section headed "Corporate Governance Report - Internal Audit".
+Effectiveness of the internal audit function
+The Board of Directors of the Bank is responsible for establishing, improving and effectively implementing
+internal control, assessing its effectiveness and truthfully disclosing internal control assessment reports
+according to the standard system for enterprise internal control. The objective of the internal control of the
+Bank is to reasonably assure the compliance of its operation and management with relevant laws, safety of
+its assets, as well as the authenticity and completeness of its financial reports and relevant information, in
+order to enhance operation efficiency and results, and to facilitate the realization of its development strategy.
+Due to inherent limitation of internal control, only reasonable assurance can be provided for the afore-
+mentioned objectives. The Board of Directors and the Audit Committee have reviewed and approved the
+2021 Internal Control Assessment Report of the Bank. For details of the Bank's internal control, please refer
+to the section headed "Corporate Governance Report - Internal Control".
+The Audit Committee is responsible for constantly monitoring and examining the internal control system of
+the Bank, and examining the effectiveness of the system at least on an annual basis. The Audit Committee
+performed its function of examining the Bank's internal control system through reviewing the administrative
+rules and regulations and their implementation, and examined and assessed the compliance and effectiveness
+of major operating activities of the Bank.
+Examining internal control system
+During the preparation and audit of the 2021 financial statements, the Audit Committee discussed and
+agreed with the external auditors on matters such as audit schedule and progress arrangement, followed
+the status of external audit and conducted supervision over relevant work at appropriate time by means
+of hearing reports and holding informal discussions, and reviewed the unaudited and preliminarily audited
+annual financial statements respectively. The Audit Committee held a meeting on 29 March 2022, and
+considered that the 2021 financial statements truly, accurately and completely reflected the financial position
+of the Bank.
+The Audit Committee periodically reviewed the financial reports of the Bank. It had reviewed and submitted
+to the Board of Directors to approve the annual report, interim report and quarterly reports of the Bank.
+It also organized and conducted an internal control assessment of the Group for 2020 and engaged
+external auditors to audit the assessment report of the Bank on internal control in accordance with the
+relevant regulatory requirements. Additionally, it enhanced communication with external auditors, attached
+importance to the supervision of external auditors and heard several reports of external auditors concerning
+audit results, and management proposals. The Audit Committee was also concerned with the compliant
+development of overseas institutions and heard related branches' reports on internal audit work.
+Reviewing periodic reports
+Corporate
+Social
+Corporate Governance Report
+Annual Report 2021
+Primary Responsibilities of the Audit Committee The Audit Committee is mainly responsible for
+constantly overseeing the Bank's internal control system, and supervising, inspecting and evaluating financial
+information and internal audit of the Bank, proposing the engagement or replacement of external auditors,
+reviewing the reports of external auditors, and coordinating the communication between the internal audit
+departments and external auditors, and assessing mechanisms for the Bank's staff to report misconducts
+in financial statements, internal control, etc., and assessing the mechanism for the Bank to conduct
+independent and fair investigations and take appropriate actions in relation to the reported matters.
+Performance of the Audit Committee During the reporting period, the Audit Committee held five
+meetings on 29 January, 25 March, 28 April, 26 August and 28 October 2021, respectively. At these
+meetings, the Audit Committee considered and approved 10 proposals, and heard 22 reports. The Audit
+Committee continued to oversee the Bank's internal control system, reviewed and approved the Bank's
+annual internal control assessment report, and heard reports on internal control audit results to improve the
+Group's compliant operation. It inspected and supervised the implementation of internal and external audits,
+considered and approved proposals on the internal audit plan and the amendment to the evaluation plan
+of annual performance of external auditors, heard reports on the implementation of internal audits and the
+summary of external audit to promote the formation of an effective communication mechanism between
+internal and external audits.
+Performance of the Corporate Social Responsibility and Consumer Protection Committee During
+the reporting period, the Corporate Social Responsibility and Consumer Protection Committee held three
+meetings on 25 March, 28 April and 26 August 2021, respectively. At these meetings, the Corporate
+Social Responsibility and Consumer Protection Committee considered and approved five proposals. It
+fully performed the political missions and social responsibilities as a major state-owned bank, considered
+and approved the proposals on the donation of anti-epidemic materials in 2020 and the application for
+temporary authorization limit for external donations, etc., providing continuous support for the epidemic
+prevention and control, charity, culture, education and other public-interested activities. The committee
+focused on the development of green finance and inclusive finance, considered and approved the proposals
+on the implementation of green finance and the 2021 annual business plan for inclusive finance, and actively
+practiced China's green development concept and sustainable development strategy.
+Primary Responsibilities of the Corporate Social Responsibility and Consumer Protection Committee
+The Corporate Social Responsibility and Consumer Protection Committee is mainly responsible for
+considering the Bank's fulfillment of social responsibilities with respect to environment, society, corporate
+governance, precision poverty alleviation, and corporate culture, the strategy, policy and target of consumer
+protection, green finance strategy, the development plan, basic policy, annual operating plan and assessment
+method of inclusive finance, and making recommendations to the Board of Directors.
+Performance of the Strategy Committee During the reporting period, the Strategy Committee of
+the Board of Directors held eight meetings on 29 January, 26 March, 29 April, 21 June, 27 August, 24
+September, 29 October and 25 November 2021, respectively. At these meetings, the Strategy Committee
+considered and approved 22 proposals, and heard four reports. To promote the coordination between
+bank-wide strategic planning and national strategies, the Strategy Committee considered and approved the
+Bank's 2021-2023 Development Strategy Plan as well as four sub-plans on risk management, international
+development, internal audit development, and group data governance and intelligent application. The
+Strategy Committee also paid close attention to strategic capital allocation, and reviewed and approved
+several proposals including the proposals on issuing tier 2 capital instruments and the 2020 capital adequacy
+ratio management report, providing a driving force for the Bank to promote sustainable development,
+enhance capital strength, and strengthen risk resistance capacity on all fronts.
+Primary Responsibilities of the Strategy Committee The Strategy Committee is mainly responsible for
+considering the Bank's strategic development plan, risk events that bear material influence on the overall
+situation, business and institutional development plan, major investment and financing plan, annual social
+responsibility report and other major matters critical to the Bank's development, making recommendations to
+the Board of Directors, and examining and assessing the soundness of the corporate governance framework
+to ensure financial reporting, risk management and internal control are compliant with corporate governance
+criteria of the Bank.
+Committee
+Audit
+Protection
+Committee
+and Consumer
+117
+Yang Siu Shun
+Committee Member
+Committee Member
+Committee Member
+Committee Member Committee Member
+Zheng Guoyu
+Committee Member
+Chairman
+Committee Member
+Liao Lin
+Chairman
+Chen Siging
+Committee
+Wang Jingwu
+US Risk
+Compensation
+Committee
+Nomination
+Committee
+Transactions
+Risk
+Management
+Committee
+Committee
+Committee
+Committee
+Directors
+Audit
+Protection
+Control
+Committee
+Committee Member
+Committee Member Committee Member
+Lu Yongzhen
+Anthony Francis Neoh
+Committee Member
+Committee Member
+Committee Member
+Dong Yang
+Committee Member
+Committee Member
+Committee Member
+Chen Yifang
+Committee Member
+Committee Member
+Committee Member
+Committee Member
+Cao Liqun
+Committee Member
+Committee Member
+Committee Member
+Committee Member
+Feng Weidong
+Committee Member
+Committee Member
+Committee Member
+Committee Member
+Liao Lin
+6/8
+11/13
+3/3
+Yes
+Yes
+No
+13.65
+3.33
+ICBC
+10.32
+110
+Qu Qiang
+Mei Yingchun
+16.32
+Zheng Fuqing
+Directors, Supervisors and Senior Management Leaving Office
+No
+124.01
+27.97
+96.04
+Song Jianhua
+No
+124.94
+28.90
+96.04
+Yang Guozhong
+Xiong Yan
+16.32
+Directors, Supervisors and Senior Management
+Primary reporting line
+Secondary reporting line
+General Meeting
+Shareholders'
+Board of
+Directors
+Committee
+Corporate Social
+Responsibility and
+Consumer Protection
+Strategy
+Committee
+coordinated the implementation of the "Three Tasks" of
+financial work. Focusing on key missions such as service
+for the high-quality development in manufacturing, self-
+reliance and self-improvement in science and technology,
+rural revitalization, inclusive finance, and "carbon peak
+and carbon neutrality", the Board of Directors formulated
+overall strategic development plans to provide more
+adaptive, competitive, and inclusive financial services.
+The Board of Supervisors gave full play to its supervisory
+function. It focused on how the Board of Directors and the
+Senior Management implemented the important decisions
+and arrangements of the Party Central Committee and
+the State Council, national economic and financial policies
+and regulatory requirements, etc. The Board of Supervisors
+conducted sound supervision on duty performance,
+financial management, risk management, internal control
+and compliance and other aspects, putting its important
+role in corporate governance into good use. There is
+no material divergence between the actual corporate
+governance of the Bank, relevant laws and administrative
+regulations, and the corporate governance-related rules
+issued by CSRC.
+Corporate Governance Framework
+During the reporting period, the Bank refined the modern
+corporate governance framework, mechanism and culture.
+The Bank further developed the corporate governance
+structure which was led by the Bank's Party Committee
+with the Board of Directors acting as the decision-
+making organ, the Board of Supervisors responsible for
+compliance supervision, and the Management in charge
+of operation. Under the working guideline of "adhere to
+the guidance of the Party building theory and exercising
+rigorous corporate governance", the Bank strengthened
+the organic connection between the rules of procedure of
+the Party Committee and the decision-making mechanism
+for corporate governance, deeply applied its institutional
+advantages to the construction of modern governance
+system, and constantly improved the governance efficiency
+and high-quality development capability. The Board of
+Directors continued to improve corporate frameworks
+and strengthen strategic guidance. In alignment with
+the national "14th Five-Year Plan" and the long-range
+objectives through the year 2035, the Board of Directors
+No
+Overview of Corporate Governance
+111
+Annual Report 2021
+For the change of the Bank's Directors, Supervisors and Senior Management, please refer to the section headed "Appointment
+and Removal".
+(7)
+(6) As the Bank's Independent Non-executive Directors served as directors or senior management of other legal persons or
+organizations other than the Bank or the controlled subsidiaries of the Bank, such legal persons or organizations became
+related parties of the Bank. During the reporting period, Independent Non-executive Directors obtained remuneration from such
+related parties. Except to the extent of the afore-mentioned circumstances, none of the Bank's Directors, Supervisors and Senior
+Management was paid by the Bank's related parties during the reporting period.
+(5) Fees of Mr. Huang Li and Mr. Wu Xiangjiang are their allowances obtained as Employee Supervisors of the Bank, excluding their
+remuneration with the Bank in accordance with the employee remuneration system.
+(4) During the reporting period, Mr. Lu Yongzhen, Mr. Feng Weidong, Ms. Cao Liqun, Ms. Chen Yifang, Mr. Zheng Fuqing and Ms.
+Mei Yingchun did not obtain remuneration from the Bank during their tenure as directors of the Bank.
+(3) In accordance with applicable national regulations, the incentive income for 2018-2020 was paid to the Chairman, the President
+and Senior Executive Vice President of the Bank in 2021 based on their specific tenure and performance appraisal results.
+Accordingly, the Bank accrued RMB16 thousand, RMB9.4 thousand, RMB6.5 thousand, RMB5 thousand and RMB3.6 thousand
+for Mr. Chen Siqing, Mr. Liao Lin, Mr. Wang Jingwu, Mr. Zhang Wenwu and Mr. Xu Shouben respectively, as additional
+contribution to the Annuity Plan in 2021.
+(2) During the reporting period, the total remuneration amount paid to Directors, Supervisors and Senior Management members
+was RMB14,157.7 thousand. According to the requirements of relevant government authorities, the total final remuneration
+payable to the Chairman of the Board of Directors, the President, the Chairman of the Board of Supervisors, Executive Directors,
+Shareholder Supervisors and other Senior Management members is still subject to final confirmation by relevant government
+authorities. Additional details of remuneration will be disclosed when they have been determined.
+Notes: (1) Since January 2015, the remuneration to the Chairman of the Board of Directors, the President, the Chairman of the Board of
+Supervisors and other executives of the Bank has followed the State's policies relating to the remuneration reform on executives
+of central enterprises.
+Corporate Governance Report
+Board of
+Supervisors
+No
+29.43
+2.43
+2.43
+Zhang Jie
+Shen Bingxi
+Wu Xiangjiang
+No
+5.00
+5.00
+No
+Fred Zuliu Hu
+222
+No
+5.00
+5.00
+Huang Li
+121.74
+27.79
+93.95
+Zhang Wei
+Yes
+41.00
+41.00
+122
+130.45
+No
+Zhang Wenwu
+101.02
+Guan Xueqing
+No
+No
+No
+No
+2222
+126.12
+28.42
+97.70
+No
+Wang Bairong
+15.80
+41.81
+Zhang Weiwu
+75.10
+19.36
+55.74
+Xu Shouben
+75.10
+19.36
+55.74
+57.61
+No
+Risk Management
+Committee
+Compensation
+Committee
+The Board of Directors highly valued the fulfillment of
+social responsibility and endeavored to maximize the
+comprehensive value of economy, environment and
+society. It reviewed and approved proposals on the
+Donations for extreme heavy rainfall in Henan Province, the
+Application for Temporary Authorization Limit for External
+Donations, the Corporate Social Responsibility Report 2020
+(ESG Report), the 2021 Business Plan for Inclusive Finance,
+the Report on the Implementation of Green Finance, the
+2020 Work Report on and 2021 Work Plan for Consumer
+Protection, etc.
+Corporate Governance Report
+ICBC
+114
+The Board of Directors improved asset management and
+continued to meet the capital needs of supporting the
+real economy and the regulatory requirements on capital
+management. It reviewed and approved proposals on the
+2020 Risk and Capital Adequacy Assessment Report, the
+2020 Capital Adequacy Ratio Report, issuing eligible tier 2
+capital instruments, etc.
+The Board of Directors attached great importance to the
+enterprise risk management, continuously improved risk
+management systems, and prevented the systemic risk
+with all strength. It revised the Rules on Enterprise Risk
+Management and the Measures for the Reputational Risk
+Management, reviewed and approved proposals including
+the 2020 and 2021 Interim Risk Management Reports,
+the Liquidity Risk Management Strategy for 2021, the
+Management Strategy of Interest Rate Risk in the Banking
+Book for 2021, and heard reports such as Report on
+Technology Risk Management in 2020.
+The Board of Directors made scientific decisions on, and
+reviewed and approved such proposals as development
+strategy plans for 2021-2023 and establishment of the
+Rural Revitalization Office in accordance with economic
+and financial policies and major objectives, including
+development strategies, preventing and controlling
+financial risks, serving the real economy, deepening
+inclusive finance, and supporting rural revitalization.
+During the reporting period, the Board of Directors of
+the Bank held 13 meetings on 29 January, 25 February,
+26 March, 29 April, 21 June, 8 July, 19 July, 24 July, 27
+August, 24 September, 29 October, 25 November and
+17 December 2021, respectively. At these meetings, the
+Board of Directors considered 78 proposals, and heard 30
+reports.
+Meetings of the Board of Directors
+―
+For major proposals reviewed by the Board of Directors,
+please refer to the announcements of the Bank on the
+website of SSE, the "HKEXnews" website of HKEX or the
+website of the Bank.
+Mr. Liao Lin took office as President of the Bank on 16
+March 2021. Please refer to the section headed "Corporate
+Governance Report Corporate Governance Code" for
+details.
+Chairman Mr. Chen Siqing is the legal representative of the
+Bank, and is responsible for leading the Board of Directors
+in considering and formulating business development
+strategies, risk management, internal control and other
+significant matters of the Bank.
+Pursuant to Code Provision C.2.1 of the Corporate
+Governance Code (Appendix 14 to the Hong Kong Listing
+Rules) and the Articles of Association of the Bank, the roles
+of Chairman and President should be held by two persons,
+and the Chairman shall not concurrently hold the position
+of legal representative or chief responsible officer of the
+controlling shareholder.
+Chairman and President
+Mr. Chen Siqing was Chairman of the Board of Directors.
+Mr. Liao Lin was Vice Chairman of the Board of Directors.
+The Executive Directors have worked in the areas of
+banking and management for a long time, possesses
+extensive professional expertise and experience in those
+areas and are familiar with operation and management
+of the Bank. Non-executive Directors have worked in the
+fiscal, economic, financial and governing sectors for many
+years, and they have rich practical experience and relatively
+high level of understanding of policies and theories.
+All of the Independent Non-executive Directors are
+prestigious Chinese or foreign experts in their respective
+areas, e.g. economy, financial supervision, finance, audit
+and law, and they are familiar with Chinese and foreign
+regulatory rules and have a good knowledge of corporate
+governance, finance and bank management. The number
+of Independent Non-executive Directors of the Bank
+accounted for more than one third of the total members of
+the Board of Directors, complying with relevant regulatory
+requirements.
+The Bank formulated relatively complete procedures
+for nominating and electing Directors. With diversified
+backgrounds, the Directors of the Bank complemented
+each other on one hand with regard to their expertise,
+professional competence and experience, which ensured
+scientific decision-making of the Board of Directors. As at
+the disclosure date of the results, the Board of Directors of
+the Bank consisted of 14 directors, including four Executive
+Directors: Mr. Chen Siqing, Mr. Liao Lin, Mr. Zheng Guoyu
+and Mr. Wang Jingwu; five Non-executive Directors: Mr. Lu
+Yongzhen, Mr. Feng Weidong, Ms. Cao Liqun, Ms. Chen
+Yifang and Mr. Dong Yang; and five Independent Non-
+executive Directors: Mr. Anthony Francis Neoh, Mr. Yang
+Siu Shun, Mr. Shen Si, Mr. Nout Wellink and Mr. Fred Zuliu
+Hu.
+Composition of the Board of Directors
+The Board of Directors of the Bank earnestly and fully
+implemented the resolutions adopted by the Shareholders'
+General Meeting during the reporting period.
+Implementation of Resolutions of the
+Shareholders' General Meeting by the
+Board of Directors
+Corporate Governance Report
+113
+President Mr. Liao Lin is responsible for the daily
+management of the business operations of the Bank. The
+President is appointed by and accountable to the Board of
+Directors, and performs his responsibilities as stipulated in
+the Articles of Association of the Bank and as authorized
+by the Board of Directors.
+Annual Report 2021
+The attendance of each of the Directors in Shareholders'
+General Meetings and meetings of the Board of Directors
+and the special committees of the Board of Directors
+during the reporting period is set out below:
+Corporate
+Social
+Responsibility
+Executive Directors
+Committee
+Committee
+Committee Committee Committee
+Committee
+Committee
+Committee
+of Directors
+Meeting
+Directors
+Attendances in person/Number of meetings that should be attended
+Special Committees of the Board of Directors:
+US Risk
+Nomination Compensation
+Transactions
+Risk
+Management
+Audit
+Protection
+Board Strategy
+General
+and Consumer
+Shareholders'
+Related Party
+Control
+Nomination
+Committee
+As the decision-making organ of the Bank, the Board of
+Directors of the Bank is accountable to, and shall report
+its work to, the Shareholders' General Meeting. The Board
+of Directors is responsible for, among others, convening
+the Shareholders' General Meeting; implementing
+the resolutions of the Shareholders' General Meeting;
+deciding on the business plans, investment proposals
+and development strategies of the Bank; formulating
+annual financial budget and final accounts of the
+Bank; formulating plans for profit distribution and loss
+recovery of the Bank; formulating plans for the increase
+or decrease of the Bank's registered capital, capital
+replenishment and financial restructuring of the Bank;
+formulating basic management systems of the Bank such
+as risk management system and internal control system,
+and supervising the implementation of such systems;
+appointing or removing President and the Board Secretary,
+and appointing or removing Senior Executive Vice
+Presidents and other senior management members (except
+the Board Secretary) who shall be appointed or removed
+by the Board of Directors under relevant laws according
+to the nomination of the President and deciding on their
+compensation, bonus and penalty matters; deciding on or
+authorizing the President to decide on the establishment
+of relevant offices of the Bank; regularly evaluating and
+improving corporate governance of the Bank; managing
+information disclosure of the Bank; and supervising and
+ensuring the President and other Senior Management
+members to perform their management duties effectively.
+During the reporting period, the Bank convened the
+Annual General Meeting for the Year 2020 on 21 June
+2021, the First Extraordinary General Meeting of 2021
+on 29 July 2021, and the Second Extraordinary General
+Meeting of 2021 on 25 November 2021. The afore-
+mentioned Shareholders' General Meetings were convened
+and held in strict compliance with relevant laws and
+regulations and the Articles of Association of the Bank.
+The Bank made announcements on the resolutions and
+disclosed legal opinions in a timely manner in accordance
+with regulatory requirements. For details of the above
+meetings, please refer to the announcements of the Bank
+dated 21 June 2021, 29 July 2021 and 25 November
+2021 respectively on the website of SSE, the "HKEXnews"
+website of HKEX and the website of the Bank.
+Service
+Management
+Committee
+Financial Assets
+and Digital
+Development
+Committee
+Financial Technology
+Committee
+Risk
+Management
+Promotion
+Committee
+Institutional Banking
+Corporate &
+Investment Banking
+Promotion Committee
+Committee
+Inclusive Finance
+Consumer Protection
+Promotion
+Personal Banking
+Committee
+Management
+Asset & Liability
+Management
+Senior
+Audit Committee
+US Risk
+Committee
+Related Party
+Transactions Control
+Committee
+Committee
+Board of Directors and Special Committees
+Responsibilities of the Board of Directors
+and Rural
+Revitalization
+Internal Audit
+Convening of the Shareholders' General
+Meeting
+As the organ of power of the Bank, the Shareholders'
+General Meeting involves all shareholders. The
+Shareholders' General Meeting is responsible for, among
+others, deciding on business policies and significant
+investment plans of the Bank; examining and approving
+the Bank's annual financial budget, final account
+proposals, plans for profit distribution and loss make-up;
+electing and replacing directors, supervisors appointed
+from the shareholder representatives and external
+supervisors; examining and approving work report of
+the Board of Directors and work report of the Board of
+Supervisors; adopting resolutions on merger, division,
+dissolution, liquidation, change of corporate form, increase
+or decrease of the Bank's registered capital, issuance of
+corporate bonds or other securities and public listing,
+repurchase of the shares and issuance of preference shares;
+and amending the Articles of Association of the Bank.
+Responsibilities of the Shareholders' General
+Meeting
+Shareholders' General Meeting
+With regard to the compliance with Article C.2.1 of the
+Corporate Governance Code (Appendix 14 to the Hong
+Kong Listing Rules), Mr. Gu Shu resigned from his position
+as President of the Bank on 31 December 2020. The Board
+of Directors of the Bank deliberated and decided that Mr.
+Chen Siqing, Chairman of the Board of Directors, should
+perform the duties of acting President from the date when
+Mr. Gu Shu does not perform the management duties in
+the Bank due to job change to the date when the new
+President appointed by the Board of Directors of the Bank
+formally takes office. On 16 March 2021, Mr. Liao Lin took
+office as President of the Bank, and since that date, Mr.
+Chen Siqing had ceased to serve as acting President.
+During the reporting period, save as disclosed below, the
+Bank fully complied with the principles, code provisions
+and recommended best practices stipulated in the
+Corporate Governance Code (Appendix 14 to the Hong
+Kong Listing Rules).
+Corporate Governance Code
+The Bank has made constant efforts to improve the
+corporate governance and checks and balances mechanism
+comprising the Shareholders' General Meeting, the Board
+of Directors, the Board of Supervisors and the Senior
+Management featuring clearly-defined responsibilities
+and accountability, coordination and effective checks and
+balances, and to optimize responsibilities of the authority
+organ, decision-making organ, supervisory organ and
+executive organ. As a result, the corporate governance
+operation mechanism with scientific decision-making
+process, effective supervision and steady operation has
+been in place.
+Corporate Governance Report
+ICBC
+Promotion Committee
+112
+Overseas
+Institutions
+Domestic
+Institutions
+Directly
+Controlled
+Institutions
+Supporting
+Departments
+Comprehensive
+Administration
+Departments
+Risk
+Management
+Department
+Profitability
+Units
+Marketing
+Management
+Departments
+Internal Audit
+Sub-bureau
+Bureau
+Note: The above is the corporate governance framework chart as of the disclosure date of this report.
+Chen Siging
+47.00
+Directors
+Lu Yongzhen
+Yes
+Feng Weidong
+Yes
+Cao Liqun
+Chen Yifang
+Dong Yang
+Anthony Francis Neoh
+Yang Siu Shun
+Shen Si
+No
+Yes
+Yes
+52.00
+52.00
+Yes
+47.00
+47.00
+Yes
+47.00
+47.00
+Yes
+Yes
+75.10
+19.36
+55.74
+Appointment and Removal
+(5)=(1)+(2)+(3)+(4)
+Chen Siging
+61.94
+20.05
+81.99
+No
+Liao Lin
+19.70
+81.12
+No
+Huang Liangbo
+30.97
+10.06
+41.03
+Zheng Guoyu
+18.58
+6.48
+25.06
+22
+No
+No
+Wang Jingwu
+Nout Wellink
+47.00
+61.42
+(before tax)
+Unit: RMB10,000
+by the employer
+to social insurance,
+Contribution
+Remuneration from the Bank
+Annual Remuneration
+Directors, Supervisors and Senior Management
+Obtain
+remuneration
+109
+On 25 February 2021, the Board of Directors appointed
+Mr. Liao Lin as President of the Bank, and his qualification
+was approved by CBIRC in March 2021. Mr. Liao Lin
+ceased to act as Chief Risk Officer of the Bank after he
+took office as President. On 29 April 2021, the Board of
+Directors appointed Mr. Zhang Weiwu as Senior Executive
+Vice President of the Bank, and his qualification was
+approved by CBIRC in June 2021. On 24 September 2021,
+the Board of Directors appointed Mr. Zheng Guoyu as
+Senior Executive Vice President of the Bank and Mr. Wang
+Jingwu as Chief Risk Officer of the Bank.
+Senior Management Members
+In March 2021, Mr. Yang Guozhong ceased to act as
+Shareholder Supervisor and Chairman of the Board of
+Supervisors of the Bank due to change of job assignments.
+In November 2021, Mr. Qu Qiang ceased to act as External
+Supervisor of the Bank due to change of job assignments.
+At the First Extraordinary General Meeting of 2021 held
+on 29 July 2021, Mr. Huang Liangbo was elected as
+Shareholder Supervisor of the Bank, and his term of office
+as Shareholder Supervisor of the Bank started from the
+day of approval by the Shareholders' General Meeting,
+and his term of office as Chairman of the Board of
+Supervisors of the Bank took effect simultaneously. At the
+Second Extraordinary General Meeting of 2021 held on
+25 November 2021, Mr. Zhang Jie was elected as External
+Supervisor of the Bank, and his term of office as External
+Supervisor of the Bank started from the day of approval by
+the Shareholders' General Meeting.
+Supervisors
+In February 2021, Ms. Mei Yingchun ceased to act as
+Non-executive Director of the Bank due to expiration of
+her term of office. In January 2022, Mr. Zheng Fuqing
+ceased to act as Non-executive Director of the Bank due to
+expiration of his term of office.
+Annual Report 2021
+from shareholder
+(4)
+(3)
+annuities, and
+additional medical
+Other
+monetary
+Total
+entities or
+remuneration
+other related
+Name
+housing allowance,
+insurances
+Fees
+income
+before tax
+parties or not
+(1)
+(2)
+On 25 February 2021, the Board of Directors of the Bank
+elected Mr. Liao Lin as Vice Chairman of the Bank, and
+his qualification was approved by CBIRC in March 2021.
+At the Annual General Meeting for the Year 2020 held
+on 21 June 2021, Ms. Chen Yifang was elected as Non-
+executive Director of the Bank, and her qualification
+was approved by CBIRC in August 2021. At the First
+Extraordinary General Meeting of 2021 held on 29 July
+2021, Mr. Wang Jingwu was elected as Executive Director
+of the Bank, and his qualification was approved by
+CBIRC in September 2021. At the Second Extraordinary
+General Meeting of 2021 held on 25 November 2021,
+Mr. Zheng Guoyu was elected as Executive Director of
+the Bank, and his qualification was approved by CBIRC
+in December 2021; Mr. Dong Yang was elected as Non-
+executive Director of the Bank, and his qualification was
+approved by CBIRC in January 2022. On 30 March 2022,
+the Board of Directors of the Bank nominated Mr. Chen
+Siqing as the candidate for Executive Director of the Bank
+and to be re-elected as Executive Director of the Bank,
+and agreed him to consecutively serve as Chairman of the
+Bank after his re-election as Executive Director is approved
+by the Shareholders' General Meeting of the Bank. The
+appointment of Mr. Chen Siqing as Executive Director of
+the Bank shall be submitted to the Shareholders' General
+Meeting of the Bank for deliberation and voting, and his
+new term of office shall start from the date of review and
+approval by the Shareholders' General Meeting.
+paid
+Remuneration
+Directors, Supervisors and Senior Management
+Training of Board Secretary
+As the supervisory organ of the Bank, the Board of
+Supervisors is accountable to, and shall report its work
+to, the Shareholders' General Meeting. The Board of
+Supervisors is responsible for, among others, supervising
+the performance and due diligence of Directors and Senior
+Management members; supervising the performance
+of duties by the Board of Directors and the Senior
+Management; conducting exit audits on Directors and
+Senior Management members when necessary; inspecting
+and supervising financial activities of the Bank; examining
+financial information such as financial report, business
+report and profit distribution plan to be submitted to
+the Shareholders' General Meeting by the Board of
+Directors; inspecting and supervising the business decision-
+making, risk management and internal control of the
+Bank and guiding the internal audit department of the
+Bank; formulating performance evaluation measures
+of the Board of Directors and the Senior Management
+and their members as well as supervisors; evaluating the
+performance of the Board of Directors and the Senior
+Management and their members as well as supervisors,
+and reporting to the Shareholders' General Meeting
+for approval; presenting proposals to the Shareholders'
+General Meeting; proposing to convene an extraordinary
+general meeting, and convening and presiding over
+the extraordinary general meeting in case the Board
+of Directors fails to perform its duty of convening
+Shareholders' General Meeting; proposing to convene an
+interim meeting of the Board of Directors.
+Composition of the Board of Supervisors
+As at the disclosure date of the results, the Board of
+Supervisors of the Bank consisted of six members, including
+two Shareholder Supervisors, namely Mr. Huang Liangbo
+and Mr. Zhang Wei; two Employee Supervisors, namely
+Mr. Huang Li and Mr. Wu Xiangjiang; and two External
+Supervisors, namely Mr. Shen Bingxi and Mr. Zhang Jie.
+Meetings of the Board of Supervisors
+During the reporting period, the Board of Supervisors held
+nine meetings, reviewed 20 proposals including the Report
+on the Work of the Board of Supervisors for 2020 and the
+Report on Performance Evaluation, heard nine reports on
+the business operation, development strategy planning, the
+Group's anti-money laundering and other contents, and
+reviewed 43 documents including the documents on the
+supervision in each quarter of 2021 and relevant survey
+reports of the Board of Supervisors.
+Attendance of supervisors of the Bank in meetings during the reporting period is as follows:
+Attendances in person/Number of meetings that should be attended
+Supervisor
+Huang Liangbo
+Zhang Wei
+Huang Li
+Wu Xiangjiang
+Shen Bingxi
+Shareholders'
+General
+Meeting
+Responsibilities of the Board of Supervisors
+Introduction trainings for newly-appointed directors
+Board of Supervisors
+ICBC
+During the reporting period, the Board Secretary of the
+Bank attended the relevant specialized trainings, with
+the training hours over 15 hours, which meets relevant
+regulatory requirements.
+Independence and Performance of Duties
+of Independent Non-executive Directors
+The qualifications, number and proportion of the Bank's
+Independent Non-executive Directors comply with
+regulatory requirements. The Bank's Independent Non-
+executive Directors do not have any business or financial
+interests in the Bank or its subsidiaries, and they have not
+assumed any managerial position in the Bank. The Bank
+has received the annual confirmation on independence
+from all Independent Non-executive Directors and
+considered that they were independent.
+Annual Report 2021
+121
+Corporate Governance Report
+During the reporting period, Chairman Chen Siqing held
+discussions with the Bank's Independent Non-executive
+Directors, who provided suggestions with respect to the
+Bank's development strategies, business transformation
+and risk control, etc. The Bank's Independent Non-
+executive Directors earnestly attended the meetings of the
+Board of Directors and special committees, and during
+consideration of issues, gave independent opinions on
+improving the abilities of serving national strategies,
+focusing on risk control and compliance development, and
+speeding up FinTech innovation, etc. They also carried out
+active discussions or surveys on financial support for the
+real economy, climate risk management, green finance
+development, etc., exchanged ideas, and put forward
+Anti-money Laundering
+comments and suggestions. The Bank paid close attention
+to the relevant comments and suggestions, and organized
+the implementation thereof according to the actual
+conditions.
+During the reporting period, the Bank's Independent Non-
+executive Directors did not raise any objection on proposals
+of the Board of Directors and special committees of the
+Board of Directors.
+For the details on performance of duties of Independent
+Non-executive Directors of the Bank during the reporting
+period, please refer to the Work Report of Independent
+Directors for 2021 issued by the Bank on 30 March 2022.
+Independent Non-executive Directors' Special Explanation and Independent
+Opinions on External Guarantees of the Bank
+In accordance with relevant provisions and requirements of CSRC, we, in the capacity of Independent Non-executive
+Directors of the Bank, reviewed external guarantees of the Bank on the principles of fairness, impartiality and
+objectivity, and hereby give our specific explanation and opinions as follows: upon review, external guarantees
+provided by the Bank mainly focus on issuance of letters of guarantee and standby letters of credit, which is part of
+the ordinary banking services within the business scope of the Bank as approved by relevant regulatory authorities.
+As at 31 December 2021, the balance of letters of guarantee and standby letters of credit issued by the Bank totaled
+RMB494,532 million.
+The Bank has attached great importance to the management of risks arising from such business, formulated strict rules
+on the credit ratings of the entities to which the guarantee was provided and on the operation process and duration
+management of provision of guarantee services, and carried out relevant business on such basis.
+Independent Non-executive Directors of Industrial and Commercial Bank of China Limited
+Anthony Francis Neoh, Yang Siu Shun, Shen Si, Nout Wellink and Fred Zuliu Hu
+122
+Corporate Governance Report
+Climate risk management and green finance
+Trainings on business of the Bank
+During the reporting period, the Bank acted on the
+regulatory requirements on the industry, implemented
+risk-oriented audit activities and fully accomplished the
+annual audit plan according to the development strategies
+and central tasks of the Bank. The audit activities covered
+domestic and overseas key institutions of the Group, major
+areas, key processes and the main responsible persons
+of domestic and overseas institutions. The audit activities
+focused on the Bank's performance in supporting national
+policies, meeting regulatory requirements, strengthening
+risk prevention and control, promoting strategy
+implementation and other aspects, covering such key areas
+as financial benefit, credit business, emerging business,
+FinTech, operation management, capital management
+and internal control. The Bank also paid close heed to and
+made full use of audit findings and recommendations,
+with the aim of continuously improving risk management,
+internal control and corporate governance.
+The Listed Companies Association of Beijing:
+"Compliance Operation", "Investor Protection"
+"Innovative Development", "Capital Operation"
+119
+Annual Report 2021
+The Articles of Association of the Bank specifies methods and procedures to nominate Directors. Please refer
+to Article 118 of the Articles of Association. During the reporting period, the Bank appointed and renewed
+the appointments of Directors of the Bank in strict accordance with the Articles of Association of the Bank.
+The Nomination Committee reviews the qualifications of candidates for Directors based on whether the
+candidate complies with applicable laws, administrative rules, regulations and the Articles of Association of
+the Bank. The Bank attached importance to diversified sources and backgrounds of Directors and continued
+the efforts to enhance the professionalism of the Board of Directors, thus laying the foundation for the
+effective operation and scientific decision-making of the Board of Directors. According to the requirement
+on diversified composition of the Board of Directors in the Rules for Recommendation and Nomination of
+Board Candidates of the Bank, the Nomination Committee shall pay attention to the complementarity of
+the candidates in terms of expertise, professional competence and experience, cultural and educational
+background, gender, etc., to ensure the members of the Board of Directors are well equipped, experienced
+and have diversified perspectives and views. In order to implement the diversity policy, the Nomination
+Committee discusses and designs measurable goals according to actual conditions and assesses the
+improvement of diversified composition of the Board of Directors during the course of its yearly assessment
+on the framework, number of Directors and composition of the Board of Directors. As at the disclosure date
+of the results, there were five Independent Non-executive Directors, accounting for more than one third of
+the total members of the Board of Directors.
+Primary Responsibilities of the Nomination Committee The Nomination Committee is mainly responsible
+for making recommendations to the Board of Directors on candidates for Directors and Senior Management
+members, nominating candidates for chairmen and members of special committees of the Board of
+Directors, formulating the standards and procedures for selection and appointment of Directors and Senior
+Management members, and formulating the training and development plans for Senior Management
+members and key reserved talents. The Nomination Committee is also responsible for assessing the structure,
+size and composition of the Board of Directors on a yearly basis and making recommendations to the Board
+of Directors based on the Bank's development strategy.
+The Risk Management Committee is responsible for constantly monitoring and examining the risk
+management system of the Bank, and examining the effectiveness of the system at least on an annual basis.
+Under the enterprise risk management system structure of the Bank, the Risk Management Committee
+performed its function of examining the Bank's risk management system through reviewing and revising the
+risk strategy, risk management policy, risk appetite and the enterprise risk management structure, monitoring
+and evaluating the setup, mode of organization, work procedures and results of risk management
+departments, regularly assessing the risk policy, risk appetite and enterprise risk management status,
+supervising and assessing risk control activities conducted by the Senior Management members in terms of
+credit risk, market risk, operational risk, liquidity risk, compliance risk, reputational risk and interest rate risk
+in the banking book. For details of the risk management, please refer to the section headed "Discussion and
+Analysis - - Risk Management".
+Examining the risk management system
+•
+Performance of the Risk Management Committee During the reporting period, the Risk Management
+Committee held four meetings on 25 March, 28 April, 26 August and 28 October 2021, respectively.
+At these meetings, the Risk Management Committee considered and approved 16 proposals, and heard
+five reports. The Risk Management Committee continuously supervised enterprise risk management. It
+considered and approved proposals on the 2020 and 2021 Interim Risk Management Report, the 2020
+Report on Management of Interest Rate Risk in the Banking Book, the 2020 Report on the Risk Appetite
+Implementation and Assessment, the 2020 Compliance Risk Management Report of the Group and the 2020
+Case Prevention Report and heard reports on technology risk management and the Group's anti-money
+laundering in 2020. It has become more foresighted in preventing and controlling financial risks and refining
+the risk management mechanism, in a bid to assist the Board of Directors in improving its risk management,
+prevention and control capabilities.
+Primary Responsibilities of the Risk Management Committee The Risk Management Committee
+is primarily responsible for constantly overseeing the Bank's risk management system, reviewing and
+revising the strategy, policy and procedures of risk management and internal control process of the Bank,
+and supervising and evaluating the performance of Senior Management members and risk management
+departments in respect of risk management.
+Nomination
+Committee
+Management
+Committee
+Corporate Governance Report
+Risk
+The Board of Directors of the Bank conducted an
+assessment on the effectiveness of the Group's internal
+control during the reporting period in accordance with
+the Basic Standard for Enterprise Internal Control and
+its supporting guidelines issued by five ministries and
+commissions including MOF, and relevant regulatory
+requirements of SSE and CBIRC. No significant or material
+deficiencies were detected in the Bank's internal control
+system during the assessment. Risks that may arise from
+ordinary deficiencies are controllable and corrective actions
+have been or are being taken, which have no material
+impact on the fulfillment of internal control objectives
+of the Bank. The Bank had maintained effective internal
+control in all material aspects in accordance with the
+standard system for enterprise internal control and relevant
+rules.
+Corporate Governance Report
+During the reporting period, the Group paid Deloitte
+Touche Tohmatsu and its member institutions a total fee
+of RMB176 million for the audit of financial statements
+(including the audit of financial statements of subsidiaries
+and overseas branches). Of which, RMB104 million
+(including fee for internal control audit of RMB8.80 million)
+was paid by the Bank.
+During the reporting period, Deloitte Touche Tohmatsu
+and its member institutions provided the Group with non-
+audit services including professional services for asset
+securitization and bonds issuance etc., and received RMB7
+million for such professional non-audit services.
+Management on Subsidiaries
+For the information of management and control on
+subsidiaries, please refer to "Discussion and Analysis
+-
+Business Overview
+Diversified Operation and Subsidiary
+Management, Major Controlled Subsidiaries and Equity
+Participating Company".
+Remediation of Problems in the Self-
+inspection amid the Governance
+Improvement Campaign of Listed
+Companies
+During the reporting period, in accordance with the
+relevant notices of CSRC, the Bank conducted a self-
+inspection amid the governance improvement campaign
+of listed companies. The self-inspection results showed
+that, from 2018 to 2020, the Bank had complete
+internal rules and regulations for corporate governance,
+sound organizational structure, standardized operation
+procedures, smooth mechanism for the communication
+with investors, and stable cash dividend ratio.
+Corporate Governance Report
+Board of
+Supervisors
+Compensation
+Committee
+Committee
+Interpretation of Guidelines on Corporate Governance of Banking and Insurance Institutions and
+Measures for Evaluating the Performance of Directors and Supervisors of Banks and Insurance
+Institutions (Pilot)
+China Banking Association:
+Follow-up training for independent directors of listed companies
+Internal trainings
+SSE:
+External trainings
+Subject matters of the trainings attended by the Directors of the Bank during the reporting period were mainly as follows:
+During the reporting period, the Bank developed an overall
+training plan, increased training resources, and encouraged
+and actively organized the Directors to attend trainings
+in many ways, with the aim of assisting the Directors in
+continuing to improve their ability to perform their duties.
+Directors of the Bank attended relevant trainings according
+to work needs.
+During the reporting period, Directors of the Bank
+proactively conducted surveys on departments of the
+Bank, branches and subsidiaries concerning such topics as
+serving the new development paradigm, supporting rural
+revitalization, FinTech, green finance, wealth management,
+and pension finance. In the form of survey reports
+and briefs, such investigations provide the Bank with
+constructive suggestions and opinions.
+Investigation and Training of Directors
+Corporate Governance Report
+Related Party
+Transactions
+Control
+The Directors of the Bank acknowledged that they are
+responsible for the preparation of the financial statements
+of the Bank. During the reporting period, in strict
+compliance with relevant provisions, the Bank published
+the 2020 Annual Report, the First Quarterly Report of
+2021, the 2021 Interim Report and the Third Quarterly
+Report of 2021 as scheduled.
+In accordance with the Articles of Association of the
+Bank, Directors are elected by the Shareholders' General
+Meeting with a term of three years, and the appointment
+shall take effect from the date of approval by CBIRC or
+upon completion of relevant procedures according to the
+requirements of CBIRC. Directors may be re-appointed
+through re-election at the Shareholders' General Meeting
+after expiry of their term.
+Term of Directors
+ICBC
+120
+Performance of the US Risk Committee During the reporting period, the US Risk Committee held
+five meetings on 25 March, 21 June, 26 August, 28 October and 17 December 2021, respectively.
+At these meetings, the US Risk Committee considered and approved four proposals, and heard
+12 reports. It attached importance to and strengthened the compliance management of overseas
+institutions, reviewed and approved the proposals including the risk management framework and the
+annual audit of risk appetite in the US, and the liquidity stress testing, funding contingency plans,
+key business lines and product liquidity risks in the US, heard the reports on the risk management
+and liquidity risk management in the US in 2020, and assisted the Board of Directors in urging the
+Management to well perform in compliance and risk prevention and control in international operation.
+Performance of the Related Party Transactions Control Committee During the reporting period, the
+Related Party Transactions Control Committee held four meetings on 25 March, 21 June, 26 August and
+17 December 2021, respectively. At these meetings, the Related Party Transactions Control Committee
+considered and approved four proposals including the proposal on identification of related parties of the
+Bank, and heard two reports including the report on related party transactions in 2020 and the identification
+of related parties of the Bank in 2020. The Related Party Transactions Control Committee focused on
+reviewing the fairness and objectivity of related party transactions, urged the Bank to strengthen the
+management of related party transactions and inside transactions, and assisted the Board of Directors in
+ensuring the Bank's related party transactions are carried out in compliance with laws and regulations.
+Primary Responsibilities of the US Risk Committee In accordance with the relevant requirements
+in the Enhanced Prudential Standards for Bank Holding Companies and Foreign Banking Organizations
+established by the Federal Reserve Board, the US Risk Committee supervised the implementation of the
+US business-related risk management framework and relevant policies.
+Primary Responsibilities of the Related Party Transactions Control Committee The Related Party
+Transactions Control Committee is mainly responsible for developing the basic policies governing the
+management of related party transactions, identifying the Bank's related parties, approving related party
+transactions and other related matters within the authority granted by the Board, receiving related party
+transaction statistics for filing purpose, reviewing the related party transactions that are subject to the
+approval of the Board of Directors or the Shareholders' General Meeting, and reporting to the Board
+of Directors on the implementation of the related party transaction management policies as well as the
+conditions on these transactions.
+Performance of the Compensation Committee During the reporting period, the Compensation
+Committee held two meetings on 25 March and 26 August 2021, respectively. At these meetings, the
+Compensation Committee considered and approved five proposals including the proposals on the payment
+of remuneration to Directors and Senior Management members for 2020, the Senior Management
+performance evaluation plan for 2021, the coverage of directors, supervisors and officers liability insurance
+for 2021-2022 and the Employment Plan of the Group for 2022, and heard the 2020 assessment report
+on the performance of duties of Directors by the Board of Directors. The Compensation Committee,
+in accordance with regulatory requirements, drafted the remuneration of directors, and improved the
+performance evaluation indicators and the incentive and constraint mechanism.
+Primary Responsibilities of the Compensation Committee The Compensation Committee is mainly
+responsible for formulating assessment measures on the performance of duties and compensation plans
+for Directors, organizing the assessment on the performance of duties of Directors, putting forth proposal
+on remuneration distribution for Directors, formulating and reviewing the assessment measures and
+compensation plans for Senior Management members of the Bank and evaluating the performance and
+behaviors of Senior Management members.
+Performance of the Nomination Committee During the reporting period, the Nomination Committee held
+seven meetings on 29 January, 25 February, 28 April, 8 July, 26 August, 24 September and 25 November
+2021, respectively. Through the seven meetings, the Nomination Committee considered and approved
+13 proposals including the proposals on the election of Mr. Liao Lin as Vice Chairman of the Bank, the
+nomination of Mr. Zheng Guoyu and Mr. Wang Jingwu as candidates for Executive Directors of the Bank,
+the nomination of Ms. Chen Yifang and Mr. Dong Yang as candidates for Directors of the Bank, and the
+appointment of Mr. Liao Lin as President of the Bank, Mr. Zheng Guoyu and Mr. Zhang Weiwu as Senior
+Executive Vice Presidents of the Bank, and Mr. Wang Jingwu concurrently as Chief Risk Officer of the Bank,
+and heard the report on the framework of the Board of Directors in 2020. The Nomination Committee
+prudently assessed the organizational structure of the Bank's Board of Directors and its special committees,
+promoted the change of directors in an orderly manner and continuously improved the composition of
+special committees of the Board of Directors.
+US Risk
+Committee
+Responsibilities of Directors in Respect of
+Financial Statements
+1/1
+8/8
+3/3
+During the reporting period, the Bank proactively carried
+out frequent "online + offline" and "face-to-face +
+screen-to-screen" investor exchanges, and held annual
+and interim results releases through "on-site meetings
++ global teleconferencing + public opinion collection +
+livestreaming". The Bank made constant and extensive
+communication with institutional investors and minority
+investors through online and offline channels like press
+conferences in relation to periodic results announcements,
+reverse roadshows, domestic and overseas non-deal
+roadshows, investor hotline, investor relations mailbox,
+investor relations website and the online platform of sns.
+sseinfo.com. In this way, the Bank presented its operational
+quality, efficiency and strategic achievements to the
+capital market, actively responded to the concerns from
+investors and analysts, and strove to deliver the values
+of ICBC. Besides, it enhanced investors' comprehensive
+and objective understanding and cognition in economic
+development of China and high-quality development of the
+Bank and helped bring the market value in line with the
+long-term intrinsic value of the Bank. The Bank improved
+investor relations information collection and market
+information feedback mechanism, followed and analyzed
+spotlight issues of the capital market, and effectively
+enhanced the quality of communication with the investors.
+The Bank actively understood and solicited the comments
+and suggestions of the capital market on the Bank, and
+assisted the Management in making timely reaction with
+the help of many operation and communication strategies,
+so as to continuously strengthen the level of corporate
+governance and core values of the Bank.
+In 2021, with the consistent adherence to the investor-
+centered approach, the Bank strove to improve the quality
+of investor relations services and generate stable return to
+shareholders following the principle of serving investors
+in a comprehensive, proactive, precise, coordinated and
+efficient manner.
+Effective Communication with Shareholders
+and Review of Investor Relations Activities
+Investor Relations
+of insider lists and regularly conducted insider transaction
+self-inspections. After self-inspections, none of the insiders
+of the Bank were found to be involved in dealings in
+shares of the Bank who have taken advantage of inside
+information during the reporting period.
+The Bank manages inside information and insiders in
+accordance with regulatory requirements of the exchanges
+on which the Bank is listed and the Bank's rules, and
+conducts the collection, delivery, sorting, preparation
+and disclosure of relevant information in compliance
+with applicable laws and regulations. During the
+reporting period, the Bank continued to strengthen inside
+information management, timely organized the completion
+Inside Information Management
+Ordinary shareholders of the Bank have the right to
+collect dividends and other forms of benefits distributed
+on the basis of the number of shares held by them;
+preference shareholders shall be entitled to rights to
+dividends in priority to payment of dividends to ordinary
+shareholders. Shareholders have other rights conferred by
+laws, administrative regulations, rules and the Articles of
+Association of the Bank.
+Other Rights
+In the event that the Bank failed to pay the agreed
+dividend to preference shareholders for three years in
+aggregate or for two consecutive years, from the next
+day following the date of approval of the proposal not
+paying the agreed dividend for the current year by the
+Shareholders' General Meeting, preference shareholders
+shall be entitled to attend and vote (together with ordinary
+shareholders) at the Shareholders' General Meeting. For
+preference shares the dividend of which is non-cumulative,
+the voting rights shall be temporarily restored until the full
+payment of the agreed dividend for the current year by the
+Bank.
+amendments to the Articles of Association which relate
+to preference shares; (2) the reduction of the registered
+capital of the Bank by more than 10% (either separately
+or in aggregate); (3) merger, division and dissolution or
+change of corporate form of the Bank; (4) issuance of
+preference shares; and (5) other events specified in the
+Articles of Association that will change or abrogate the
+rights of preference shareholders. If any of the above
+circumstances occurs, the notice of a Shareholders' General
+Meeting shall be given to preference shareholders in
+accordance with the notification procedures applicable
+to ordinary shareholders as specified in the Articles of
+Association.
+In the following circumstances, preference shareholders
+of the Bank have the right to attend the Shareholders'
+General Meeting and exercise voting rights: (1)
+Special Provisions on Rights of Preference
+Shareholders
+Corporate Governance Report
+ICBC
+124
+etc.
+Primary reporting line
+Beijing Tanin Shenyang Shanghai Nariling Wuhan Guangzhou Chengdu Kumming Vie
+In 2022, the Bank will further and proactively deepen the
+communication and exchange with investors to enhance
+investors' understanding and recognition of the Bank and
+continue to protect legitimate interests of the investors,
+and at the same time hope to receive more support from,
+and attention of the investors.
+Annual Report 2021
+125
+Corporate Governance Report
+During the reporting period, internal audit of the Bank
+actively adapted to the changes in the risk management
+conditions, properly responded to the COVID-19 pandemic,
+refined the audit management mechanism, optimized the
+audit mode, accelerated digital transformation, promoted
+the deep integration between technologies and businesses,
+improved audit efficiency and value, strengthened the
+audit team's ability to perform duties, and constantly
+enhanced the audit service capacity and professionalism.
+Engagement of Auditors
+Deloitte Touche Tohmatsu Certified Public Accountants
+LLP was the domestic auditors of the Bank for the financial
+statements audit in 2021, and Deloitte Touche Tohmatsu'
+was the international auditors of the Bank for the financial
+statements audit in 2021. Deloitte Touche Tohmatsu
+Certified Public Accountants LLP was also the auditors of
+internal control of the Bank in 2021. KPMG Huazhen LLP¹
+and KPMG resigned from the positions of providers of
+audit services for the Bank after serving a maximum term
+of eight consecutive years from 2013 to 2020.
+1 Deloitte Touche Tohmatsu Certified Public Accountants LLP and KPMG Huazhen LLP are Recognized Public Interest Entity Auditor under
+Hong Kong's Financial Reporting Council Ordinance. Deloitte Touche Tohmatsu and KPMG are Registered Public Interest Entity Auditor
+under Hong Kong's Financial Reporting Council Ordinance.
+Annual Report 2021
+127
+While disclosing the annual report, the Bank also disclosed
+the 2021 Internal Control Assessment Report of Industrial
+and Commercial Bank of China Limited in accordance
+with the requirements of MOF, CSRC and SSE. The report
+stated that the Bank had maintained effective internal
+control over financial reporting in all material aspects
+in accordance with the standard system for enterprise
+internal control and relevant rules as at 31 December 2021
+(benchmark date). Deloitte Touche Tohmatsu Certified
+Public Accountants LLP has audited the effectiveness of
+the Bank's internal control over financial reporting as at
+31 December 2021 and issued the standardized audit
+report on internal control. For details, please refer to the
+announcements published by the Bank on the website of
+SSE, the "HKEXnews" website of HKEX and the website of
+the Bank.
+Internal Control Assessment Report and
+Internal Control Audit
+Board of Supervisors
+development of data assets, and boosted the collection,
+processing and analysis of information, ensuring smooth
+and effective internal and external communication. The
+Bank deeply coordinated supervision and inspection,
+optimized the internal control evaluation system, and
+strengthened the dual closed-loop remediation of
+problems, making all-round efforts to implement the new
+accountability mechanism for violations, and enhancing the
+synergistic supervision of the "three lines of defense", in
+an endeavor to ensure stable operations.
+The Board of Directors is responsible for formulating
+the basic regulations for internal control and supervising
+the implementation of such regulations. The Audit
+Committee of the Board of Directors supervises the
+development of the internal control system and evaluates
+the compliance and effectiveness of the major operation
+and management activities of the Bank. The Bank has set
+up the Internal Audit Bureau and the Internal Audit Sub-
+bureau, which adopt a hierarchical management system
+and are responsible to and report to the Board of Directors.
+The Senior Management of the Bank is responsible for
+formulating systematic policies, procedures and methods,
+as well as taking risk control measures. Under the Senior
+Management, the Operational Risk and Internal Control
+Management Committee subordinated to the Risk
+Management Committee, performs the responsibilities
+related to internal control and evaluates the sufficiency
+and effectiveness of internal control. The Head Office
+and branches have internal control and compliance
+departments which are responsible for the organization,
+promotion and coordination of internal control.
+Internal Control
+Postal code: 100140
+Address: Corporate Strategy and Investor Relations
+Department, Industrial and Commercial Bank of China
+Limited, 55 Fuxingmennei Avenue, Xicheng District,
+Beijing, China
+E-mail: ir@icbc.com.cn
+Facsimile: 86-10-66107571
+Telephone: 86-10-66108608
+If an investor wishes to enquire any questions related to
+operation performance of the Bank, please contact:
+Investor Enquiries
+During the reporting period, the Bank continued to
+optimize its internal control mechanism for higher
+quality and efficiency of the Group. The Bank formulated
+and implemented the 2021-2023 Development Plan
+for Internal Control System and continuously refined
+the internal control environment. The Bank improved
+the "9+X" risk assessment technologies and methods,
+focused on case and compliance risk control, and
+enhanced prospective risk identification and response
+capabilities. The Bank optimized the system governance
+mechanism and authorization management, strengthened
+the management on key positions and personnel, and
+improved the process and system management for key
+areas and business links, thus developing better capacities
+in the process control of risk. The Bank advanced the
+4/4
+Internal Audit Bureau
+Board of Directors
+Annual Report 2021
+Appointment and
+Secondary reporting line
+1/1
+-
+Note: For the change of supervisors, please refer to the section headed "Directors, Supervisors and Senior Management
+Removal".
+3/3
+Qu Qiang
+Yang Guozhong
+Supervisor Leaving Office
+Zhang Jie
+1/1
+9/9
+3/3
+9/9
+3/3
+9/9
+3/3
+9/9
+123
+Corporate Governance Report
+Securities Transactions of Directors and
+Supervisors
+The Bank has adopted a set of codes of conduct
+concerning the securities transactions by directors and
+supervisors which are no less stringent than the standards
+set out in the Model Code for Securities Transactions by
+Directors of Listed Issuers, Appendix 10 to the Hong Kong
+Listing Rules. After making enquiries to all Directors and
+Supervisors of the Bank, each Director and Supervisor
+confirmed that he/she has complied with the provisions
+of the afore-said codes of conduct during the reporting
+period.
+Senior Management
+The Bank established a vertical and independent internal audit management system responsible and reporting to the Board
+of Directors. The chart below illustrates the internal audit management and reporting framework of the Bank:
+Corporate Governance Report
+Internal Audit
+ICBC
+126
+There was no factor that affected the assessment
+conclusion of internal control effectiveness from the
+benchmark date to the issuance date of the internal control
+assessment report.
+128
+Shareholders are entitled to supervise business operation
+of the Bank and put forward suggestions or inquiries
+accordingly. Shareholders are entitled to review the
+information of the Bank such as the Articles of Association,
+the register of shareholders, documents on status of share
+capital and minutes of Shareholders' General Meetings,
+Audit Committee
+Putting Forward Suggestions and
+Reviewing Documents
+Powers and Functions of the Senior
+Management
+Shareholders who hold more than three percent (3%)
+of shares of the Bank, either individually or jointly, may
+prepare an interim proposal and submit it in writing to the
+Board of Directors ten (10) days before the Shareholders'
+General Meetings convened. The Board of Directors shall
+issue a supplementary notice for the Shareholders' General
+Meeting within two (2) days upon receipt of the proposal
+and submit such proposal to the Shareholders' General
+Meeting for approval.
+Submitting Interim Proposals for the
+Shareholders' General Meeting
+An extraordinary general meeting should be convened
+within two (2) months from the date when shareholders
+holding more than ten percent (10%) of the voting
+shares of the Bank, either individually or jointly, request
+to convene in writing. Proposing shareholders shall have
+the right to request the Board of Directors in writing to
+convene an extraordinary general meeting. The Board of
+Directors shall make a written response as to whether
+or not it agrees to convene such a meeting within ten
+(10) days upon receipt of the request in accordance with
+laws, administrative regulations, rules and the Articles of
+Association of the Bank. Reasonable expenses incurred
+from the case where shareholders convene the meeting
+by themselves due to the failure of the Board of Directors
+to convene the meeting shall be borne by the Bank, and
+deducted from the payment to those negligent directors.
+Proposing the Convening of an Extraordinary
+General Meeting
+Shareholders' Rights
+As the executive organ of the Bank, the Senior
+Management is accountable to the Board of Directors.
+The Senior Management is responsible for, among others,
+the operation and management of the Bank; organizing
+the implementation of operation and investment plans
+approved by the Board of Directors; formulating specific
+rules and regulations of the Bank; determining plans for
+compensation distribution and performances evaluation of
+persons in charge of internal departments and branches
+of the Bank (except the internal audit department);
+truthfully reporting to the Board of Directors or the Board
+of Supervisors on the business performance; drafting
+the annual financial budget plan, final account plan,
+profit distribution plan and loss make-up plan, plans for
+increase or reduction of the registered capital, the issuance
+of bonds or other securities and listing, and making
+suggestions in that respect to the Board of Directors.
+Responsibilities of the Senior Management
+Senior Management
+The powers of the Board of Directors and the Senior
+Management are separated in strict compliance with the
+Articles of Association and other corporate governance
+documents of the Bank. During the reporting period, the
+Bank made an inspection on the implementation of the
+plan on authorization of the Board of Directors to the
+President, and no matter was found to be beyond the
+approval authority of the President.
+ICBC
+Internal Control Evaluation and Defects
+Annual Report 2021
+Report of the Board of Supervisors
+technology and other aspects, and gave full play to the
+supervision efficiency to effectively improve the Group's
+internal control compliance management.
+Independent Opinions of the Board of
+Supervisors on Relevant Issues
+Compliant Operation During the reporting period,
+the Board of Directors and the Senior Management
+of the Bank continued to operate in compliance with
+applicable laws and regulations, and the decision-making
+procedures complied with applicable laws and regulations
+and the Articles of Association of the Bank. Members
+of the Board of Directors and the Senior Management
+diligently and faithfully performed their duties, and the
+Board of Supervisors did not find any violation of laws
+and regulations, or any circumstance that contravened the
+interests of the Bank in their performance of duties during
+the reporting period.
+Preparation of Annual Report Preparation and
+review procedures of the Bank's Annual Report were in
+compliance with laws, regulations and regulatory rules.
+Contents of this report reflected the actual conditions of
+the Bank truly, accurately and completely.
+Use of Proceeds from Fundraising Activities During
+the reporting period, the use of proceeds from the Bank's
+fundraising activities was consistent with the purpose
+stated in the prospectuses.
+Purchase and Sale of Assets During the reporting
+period, the Board of Supervisors did not find any insider
+trading or any circumstance that contravened the
+shareholders' interests or caused the loss of the Bank's
+assets in the process of the Bank's purchase or sale of
+assets.
+Connected Transactions During the reporting period,
+the connected transactions of the Bank were conducted
+on normal commercial terms. The Board of Supervisors
+did not find any circumstance that infringed upon the
+interests of the Bank. The approval, voting, disclosure
+and implementation of connected transactions complied
+with applicable laws and regulations and the Articles of
+Association of the Bank.
+Implementation of Resolutions Passed at the
+Shareholders' General Meeting During the reporting
+period, the Board of Supervisors had no objection to the
+reports or proposals presented by the Board of Directors to
+the Shareholders' General Meeting for consideration. The
+Board of Directors earnestly implemented the resolutions
+approved at the Shareholders' General Meetings.
+Review of the Internal Control Assessment
+Report The Board of Supervisors reviewed the 2021
+Internal Control Assessment Report of the Bank and had
+no objection to the report.
+Implementation of Information Disclosure
+Rules During the reporting period, the Bank performed
+its duty of information disclosure in compliance with the
+regulatory requirements, implemented the information
+disclosure management rules in earnest, and disclosed
+information in a timely and fair manner. Information
+disclosed was authentic, accurate and complete.
+134
+ICBC
+Environmental and Social Responsibilities
+133
+Fulfillment of Environmental and
+Corporate Social Responsibilities
+Annual Report 2021
+Risk supervision. The Board of Supervisors supervised
+the effectiveness and soundness of the risk management
+system and mechanism. It paid close attention to the risk
+management strategies, the formulation and transmission
+of risk appetite, and improvement and implementation of
+risk management policies and procedures. It supervised
+capital management, consolidated management, stress
+testing management and regulatory indicators, and
+tracked changes in major risks such as credit risk, market
+risk and liquidity risk. It concerned about the impact
+of continued spreading of pandemic on the domestic
+economy and finance as well as relevant risk prevention
+and control measures taken by the Bank, and strengthened
+the supervision of key regions, key institutions and key
+businesses, to analyze and expose the potential risks and
+hazards as early as possible.
+Major Customers In 2021, the aggregate
+interest income and other operating income from top five
+customers of the Bank did not exceed 30% of the interest
+income and other operating income of the Bank for the
+year.
+Use of Proceeds from Fundraising
+Activities
+The funds raised from the Bank's fundraising activities were
+used for the purposes as disclosed in the prospectuses,
+namely, strengthening the capital base to support the
+ongoing business growth of the Bank.
+For future planning disclosed in the public disclosure
+documents such as previous offering prospectuses and
+fund raising prospectuses issued by the Bank which has
+continued during the reporting period, its implementation
+progress conformed to the planning as described after
+verification and analysis.
+130
+ICBC
+Report of the Board of Directors
+Equity-linked Agreement The Bank had no
+equity-linked agreements required to be disclosed by the
+Hong Kong Listing Rules.
+Management Contracts
+During the reporting
+period, the Bank did not enter into or have any contract
+regarding the management and administration of the
+whole or any important business.
+Directors' and Supervisors' Interests in
+Transactions, Agreements or Contracts
+of Significance During the reporting period,
+none of the Directors or Supervisors of the Bank had
+any material interests, whether directly or indirectly, in
+any transaction, arrangement or contract of significance
+regarding the Bank's business to which the Bank, its
+subsidiaries, its controlling shareholders or subsidiaries
+of its controlling shareholders was a party. None of the
+Directors or Supervisors of the Bank have entered into any
+service contract with the Bank, which is not determinable
+by the Bank within one year without payment of
+compensation (other than statutory compensation).
+Directors' Interests in Competing
+Business None of the Bank's Directors held any
+interests in any business competes or competed or is or
+was likely to compete, either directly or indirectly, with the
+Bank.
+six key areas", facilitated the inclusive finance and green
+finance development, prevented and defused financial
+risks, and handled information disclosure. It ensured the
+Bank could well-perform the political, social and economic
+responsibilities as a large state-owned bank.
+Financial supervision. The Board of Supervisors
+supervised the Bank's financial activities as well as
+decisions on and implementation of material financial
+issues. It paid close attention to the major accounting
+issues, expected credit loss, financial approval issues, and
+relevant accounting items of the Bank, kept alert to the
+impact of domestic and overseas pandemic situations
+on the Bank's business operation, and conducted in-
+depth analysis on the major factors affecting the Group's
+profitability. It carefully reviewed periodic reports, final
+accounts and profit distribution plan, learned about and
+kept watchful eye on the external audit work, and oversaw
+and evaluated the quality of external audit. It focused on
+the allocation of financial resources and the operation of
+financial management mechanism to intensify supervision
+constantly.
+Supervision on internal control. The Board of
+Supervisors supervised the effectiveness of the internal
+control system, the performance of internal control duties
+and the business compliance with laws and regulations.
+It paid close attention to the operation of internal control
+mechanism, policy system building, implementation of
+regulatory opinions, remediation of inspection findings,
+management of material risk events and accountability
+for operating losses, among other aspects. The Board
+of Supervisors effectively supervised key institutions and
+business areas, paid continuous attention to internal
+control in case prevention management, AML, information
+During the reporting period, being fully committed to
+the strategic plan of carbon peak and carbon neutrality,
+the Bank established and improved the green financial
+development system, issued the Work Plan of Industrial
+and Commercial Bank of China Limited for Carbon Peak
+and Carbon Neutrality (Trial), and set up the Steering
+Group for Carbon Peak and Carbon Neutrality to carry
+out the systematic planning and overall deployment of
+the Bank's carbon neutrality efforts. Leveraging on the
+investment and financing toolkit of "loan, bond, stock,
+agency, lease and consultant", the Bank promoted
+investment and financing restructuring across all regions,
+increased financial support for green technology, and
+made every effort to drive innovation in financial products
+and services. Progress was made in approaching the
+national carbon emissions trading market by offering it
+comprehensive financial services. ICBC Credit Suisse, one
+of the Bank's subsidiaries, launched an ESG-themed ETF
+that was the first one of the kind approved in the industry,
+and ICBC Wealth Management released the first ESG-
+themed net worth-based wealth management product in
+the industry. The Bank actively supported the innovation-
+driven development of the national pilot zone for green
+finance reform and innovation, and further strengthened
+the environmental and social risk prevention and control.
+It also launched the "ICBC ESG" column on its official
+website, through which the 2021 interim ESG special
+report was released for the first time globally. Moreover,
+further progress was made in exchange, cooperation and
+prospective studies on green finance.
+Green Finance
+The Bank continuously refined the green finance policy
+system, intensified the implementation of green finance
+planning, and strengthened the policy guidance of
+differentiated investment and financing to positively
+advance the green adjustment of investment and
+financing structure. As part of its efforts to intensify the
+management of environment (climate) and social risks, the
+Bank fully implemented the green-classified management
+of investment and financing business, actively advanced
+systematic control over environment (climate) and social
+risks of investment and financing, and took the initiative to
+conduct the climate risks studies. As at the end of 2021,
+the Bank recorded a balance of RMB2,480,621 million
+a
+"Three-to-One" paired assistance mechanism, and
+organized 12 branches to pair up with targeted assistance
+counties to help attract investment and high-caliber
+professionals. It insisted on promoting poverty assistance
+through healthcare and education, business development,
+and consumption growth, in a way to help the invigoration
+of high-caliber talents.
+Service was further delivered in lower-tier market. The
+Bank developed an online-offline integrated rural services
+delivery system highlighting online, streamlined and
+efficient operation. In terms of offline channels, relying
+on rural service sites for inclusive finance, it built a light-
+asset and flexible ICBC messenger operation and service
+model to effectively fill the gap of rural financial services. In
+terms of online channels, the Bank built a comprehensive
+service platform - ICBC "Xingnongtong" APP, effectively
+realizing the service downward penetration of "one-point
+access, borderless rural revitalization".
+Innovation was made in rural revitalization product.
+Nearly 100 credit and non-credit products and services
+were launched to form a product and service system
+with ICBC characteristics, covering rural industry, rural
+development, inclusive finance, farmer services, GBC
+interaction and technology empowerment. It made
+breakthrough in launching an online agriculture-related
+inclusive loan product, i.e., "ICBC Prosperous Agriculture
+Loan", and cooperated with the Ministry of Agriculture
+and Rural Affairs to carry out various activities such as
+the "agricultural matchmaking" activity and the "serving
+thousands of villages and accompanying ten thousands
+of households" campaign. It also launched a series of
+training for rural customers on "practical skills for poverty
+alleviation of Jinyang", and promoted the brand of
+"ICBC Training for Rural Revitalization", with the aim to
+create an integrated rural revitalization service with ICBC
+characteristics that combined financing, consulting and
+commercial services.
+As at the end of 2021, the Bank's balance of agriculture-
+related loans exceeded RMB2.6 trillion, an increase of over
+RMB400.0 billion from the beginning of the year. The
+balance of loans placed at areas that have been lifted out
+of poverty was RMB782.0 billion, up over RMB100 billion
+from the beginning of the year. The balance of loans in
+granted for key poverty assistance counties exceeded
+RMB100.0 billion, an increase higher than the average of
+the Bank's loans.
+Consumer Protection
+The Bank conscientiously implemented the laws,
+regulations and regulatory requirements regarding
+consumer protection, took various measures to
+improve the consumer protection governance system,
+and comprehensively enhance its ability to protect
+the legitimate rights and interests of consumers. It
+strengthened the guidance and coordination of the
+consumer protection work of the Board of Directors,
+the Board of Supervisors and the Senior Management,
+and continuously consolidated the management
+groundwork of corporate governance. It incorporated
+the risks of consumer protection into a comprehensive
+risk management system, refined the key rules and
+regulations for consumer protection, and continuously
+improved the systematization and standardization of
+consumer protection. Moreover, it optimized the system
+functions of financial information protection and sales of
+financial products, and enhanced the level of intelligent
+management and control of consumer protection risks
+137
+Environmental and Social Responsibilities
+in a targeted manner. The Bank also strengthened the
+management of third-party cooperation agencies and
+continuously improved the level of compliance operations.
+By creating the "ICBC with You" elderly customer
+service brand, it worked to make the elderly customers
+more satisfied and happier with financial service and
+to contribute to the effective implementation of the
+national strategy of responding to population aging. It
+also continued to conduct reviews and risk warning on
+policies, procedures, financial products and services related
+to consumer protection, actively protected consumer rights
+and enhanced consumer experience.
+The Bank highly valued the integration of online and
+offline efforts, launching consumer protection promotion
+activities such as "March 15th Consumer Protection
+Publicity Week", "Financial Knowledge Publicity Month,
+Household Financial Knowledge, Be a Rational Investor
+and a Good Financial Internet User ", "Spreading Financial
+Knowledge, Protecting Your Pocket" and "Publicizing
+Financial Knowledge to Walk Ten Thousand Miles",
+where the efforts were especially directed at key contents
+and special groups with an aim to continuously enhance
+consumers' financial literacy and risk prevention capability.
+The Bank designed itself a uniform consumer protection
+logo, established a library of consumer protection materials
+and gave full play to its advantages in channels, brands
+and talented staff. It also made sustained efforts to
+enhance the standardization, quality and efficiency of
+consumer protection promotion endeavors, in an effort to
+build a publicity brand with the Bank's own characteristics.
+The Bank widely rolled out the series of "Chunxun Action"
+training ("Spring Training Action") for consumer protection
+to promote more effective implementation of the laws,
+regulations and regulatory requirements of consumer
+protection in key areas such as personal banking, credit
+cards and Internet finance. Ongoing efforts were made
+to strengthen special training, where corresponding
+training content and focus of consumer protection were
+set in accordance with the management level, profession
+and job responsibilities of the targeted groups, in a bid
+to constantly improve the accuracy and effectiveness of
+training.
+Adhering to putting the customer first, the Bank took
+special measures to tackle the pain points of customer
+experience, carried out "I do practical things for the
+public" service improvement campaign, and implemented
+root-cause rectification in terms of rules and regulations
+formulation, products improvement, processes
+optimization and systems refinement to continuously
+improve the quality of financial services. The Bank also
+established a customer complaint management system
+that is more compatible with customer demands and
+regulatory requirements, and strengthened the full-
+chain management covering monitoring and early
+warning, standardized processing, and supervision and
+implementation. In 2021, the Bank further broadened its
+complaint acceptance channels and optimized the relevant
+process, as part of its effort to listen more to customers'
+voices and respond to and resolve customer appeals in
+a more comprehensive way, with customer satisfaction
+reaching 86.8%.
+138
+ICBC
+Targeted assistance for poverty alleviation was continuously
+improved to help the targeted regions realize rural
+revitalization. The Bank formulated and released the Work
+Plan on Targeted Poverty Alleviation for 2021, established
+A rural financial service system was built and relevant
+systems and mechanisms were further refined. The Bank
+established a specialized institution of Rural Vitalization
+Office which was designed to coordinate financial services
+for rural revitalization, and set up the specialized line of
+financial services for rural revitalization. With all these
+efforts, the Bank was committed to building an all-
+round rural financial service system covering agriculture,
+rural areas and farmers, offering rural customer groups
+with meticulous, warm and convenient customer
+experience, and delivering readily available, intelligent and
+wholehearted financial services to boost prosperity in rural
+areas, rural industries and livelihood of rural residents.
+Achievements made in poverty alleviation were
+consolidated and expanded. The Bank continued to provide
+all kinds of support for poverty alleviation with financial
+services, optimized micro loan products for poverty
+alleviation, and strongly supported the financing needs
+of key counties for national rural revitalization assistance.
+Furthermore, the Bank launched the specialized rural
+revitalization recruitment of "ICBC Stars Supporting Rural
+Residents and Enabling Dreams", targeting at college
+students from families that have shaken off poverty, people
+involved in "three supports and one assistance" and
+other key targeted groups and areas of national poverty
+alleviation efforts as well as groups providing support for
+agriculture, rural areas and farmers.
+Environmental and Social Responsibilities
+ICBC
+of domestic loans granted to such green fields as energy
+saving and environmental protection, clean production,
+clean energy, ecological environment, green upgrade of
+infrastructures and green services, representing an increase
+of RMB634,902 million over the end of the previous year.
+In 2021, green projects supported by the Bank's green
+loans converted into savings of 47,381.3 thousand tons of
+standard coal, a reduction of 98,846.9 thousand tons in
+carbon dioxide emissions.
+The Bank was actively engaged in the issuance,
+underwriting and investment of green bonds, and provided
+green financial support for the key areas of ecological
+civilization development, such as ecological protection
+and clean energy. In 2021, it completed the issuance of
+67 green bonds of various categories as lead underwriter,
+and assisted other issuers in raising funds of RMB140,130
+million with a lead underwriting scale of RMB63,637
+million, including 24 carbon-neutral bonds with a lead
+underwriting scale of RMB24,909 million which ranked
+No.1 in the market. In 2021, the total amount of offshore
+green bonds issued by the Bank reached USD13.06 billion,
+with 11 international awards received by the Bank.
+The Bank made sustained efforts to scale up lending to
+new energy, resource recycling, advanced manufacturing
+and other areas of transformation and upgrading, with
+a focus on providing financing support to small and
+micro enterprises in green and low-carbon industries.
+Taking into account the new types of financing needs
+arising from the low-carbon transformation of small and
+micro enterprise customers, the Bank actively developed
+supporting products to promote innovation of small and
+micro financing products. It remained committed to the
+development approach of "digital inclusive finance",
+accelerated the digital transformation of traditional
+credit products for small and micro enterprises, and
+progressively guided and promoted the digital and low-
+carbon transformation of production and operation of
+micro and small enterprises. By actively taking advantage of
+innovative financial instruments such as digital credit note,
+it worked to increase the supply of funds and support for
+small and micro enterprises in green industry chains such as
+clean energy, pollution control and resource recycling.
+Green Office
+The Bank made steady progress in promoting carbon
+footprint management. It established an information
+statistics and analysis system for carbon footprint
+Annual Report 2021
+135
+Environmental and Social Responsibilities
+As at the latest practicable date before the disclosure date
+of the results, the Bank has maintained the minimum
+public float of 23.45%, based on the publicly available
+information and to the best knowledge of the Board of
+Directors of the Bank.
+management in its operation, made use of information
+technology to collect, analyze and summarize historical
+carbon emission data, and provided strong support for
+continuous digital carbon emission management. On the
+basis of the pilot carbon emission inventory conducted
+by the Head Office, Beijing Branch and Hunan Branch,
+the Bank launched the relevant work to find out the real
+carbon emissions data in the past five years. According to
+the total amount and structure of carbon emissions in the
+past, the Bank studied and developed the implementation
+roadmap for carbon neutrality in its operation as well as
+the energy saving and emission reduction pathway, and
+gradually advanced the carbon neutrality in its operation.
+Remarkable results were achieved in green office. The Bank
+implemented independent and controllable localization of
+office platform, optimized the system functions of official
+document processing and business trip reimbursement,
+integrated and upgraded mobile office functions, with the
+daily active users of mobile office increasing by more than
+50% year-on-year.
+The Bank conducted in-depth researches on topics such as
+low-carbon transformation of commercial banks, financial
+support for carbon market development, and business
+promotion of pilot zones for green finance reform and
+innovation, explored quantitative assessment methods
+for corporate green development, and established an
+assessment mechanism of green finance development
+under the framework of Paris Agreement. It also updated
+and published the 2021 edition of the Belt and Road Green
+Finance (Investment) Indexes Report, launched China's
+first industry standard for environmental information
+disclosure by financial institutions, and developed the
+CERAT online instrument for environmental risk analysis
+to help enterprises and financial institutions quantify
+the environmental risks of overseas projects. It actively
+participated in the global financial governance of the
+Task Force on Climate-Related Financial Disclosures,
+and spared no efforts to push forward climate change
+response and "dual carbon" work through international
+platforms such as United Nations Environment Programme
+Finance Initiative (UNEP FI), Global Investors for Sustainable
+Development Alliance (GISD), Green Investment Principles
+(GIP) for the Belt and Road, and the Belt and Road Inter-
+bank Regular Cooperation Mechanism (BRBR).
+For details of the Bank's fulfillment of corporate social
+responsibilities, please refer to the 2021 Corporate Social
+Responsibility (ESG) Report of Industrial and Commercial
+Bank of China Limited published by the Bank on the
+website of SSE, the "HKEXnews" website of HKEX and the
+website of the Bank.
+Scan for access to the 2021 Corporate Social Responsibility
+(ESG) Report of Industrial and Commercial Bank of China
+Limited
+Consolidation of Achievements in
+Poverty Alleviation and Services for
+Rural Revitalization
+The Bank fully implemented the national strategic plans for
+rural revitalization, and resolutely followed the regulatory
+requirements of financial services for rural revitalization. To
+"address the country's needs, give full play to finance and
+tap into ICBC strengths", the Bank put in place the urban-
+rural collaborative development strategy and made all-
+round efforts to consolidate and expand the achievements
+made in poverty alleviation in coordination with the
+extensive drive for rural vitalization.
+The urban-rural collaborative development strategy was
+put in place. The Bank established the "Steering Group
+for Financial Services for Rural Revitalization" headed
+by the chairman of the Bank and the "Committee for
+Promoting Financial Services for Rural Revitalization"
+with the president of the Bank serving as the director.
+Leveraging the advantages in urban finance, technological
+development and integrated services, the Bank
+formulated and implemented the urban-rural collaborative
+development strategy, released the Action Plan for
+Financial Support to Rural Revitalization, and introduced
+15 action measures. It also launched a uniform brand
+of financial services for rural revitalization "ICBC
+Xingnongtong" to strengthen the urban-rural collaborative
+financial services to rural areas featuring urban areas
+helping rural areas and urban-rural complementarity and
+boost the comprehensive extension of industrial chain,
+supply chain and capital chain from urban to rural areas.
+136
+International Exchange and Cooperation
+Changes in the share capital of the Bank for the year
+ended 31 December 2021 are set out in "Note 37. to the
+Consolidated Financial Statements: Share Capital".
+Save as disclosed above, the Board of Supervisors had no
+objection to any other matters during the reporting period.
+Subsidiaries Particulars of the Bank's major
+subsidiaries as at 31 December 2021 are set out in the
+sections headed "Discussion and Analysis Business
+Overview" and "Note 25. to the Consolidated Financial
+Statements: Investments in Subsidiaries" in this annual
+report.
+Non-executive Directors: Mr. Lu Yongzhen,
+Mr. Feng Weidong, Ms. Cao Liqun, Ms. Chen Yifang and
+Mr. Dong Yang;
+Independent Non-executive Directors:
+Report of the Board of Directors
+Principal Business The principal business of the
+Bank and its subsidiaries is the provision of banking and
+related financial services. Please refer to the section headed
+"Discussion and Analysis" for the business review of the
+Bank.
+Profits and Dividends Distribution
+The profit and financial status of the Bank during the
+reporting period are presented in the Auditor's Report and
+Financial Statements of the Annual Report.
+As approved at the Annual General Meeting for the Year
+2020 held on 21 June 2021, the Bank has distributed cash
+dividends of about RMB94,804 million, or RMB2.660 per
+ten shares (pre-tax) for the period from 1 January 2020
+to 31 December 2020 to the ordinary shareholders whose
+names appeared on the share register after the close of
+market on 5 July 2021.
+The Board of Directors of the Bank proposed distributing
+cash dividends of RMB2.933 (pre-tax) for each ten shares
+of 356,406,257,089 ordinary shares for 2021, totaling
+about RMB104,534 million. The distribution plan will be
+submitted for approval to the Annual General Meeting
+for the Year 2021. Once approved, the above-mentioned
+dividends will be paid to the holders of A shares and H
+shares whose names appeared on the share register of
+the Bank after the close of market on 11 July 2022. The
+Bank will suspend the registration procedures of H share
+ownership transfer on 6 July 2022 (inclusive) through 11
+July 2022 (inclusive). The holders of H shares of the Bank
+that desire to receive the proposed cash dividends but
+have not registered the ownership transfer documents
+are requested to hand over their ownership transfer
+documents together with the H shares to the Bank's H
+share registrar Computershare Hong Kong Investor
+Services Limited that is located at Room 1712-1716,
+17 Floor, Hopewell Center, 183 Queen's Road East,
+Wanchai, Hong Kong no later than 4:30 p.m. of 5 July
+2022. Pursuant to relevant regulatory requirements and
+operational rules, dividends on A shares and H shares will
+be paid on 12 July 2022 and 27 July 2022, respectively.
+For dividend-related tax and tax reduction, please refer to
+the announcements on dividend distribution of the Bank.
+The Bank did not convert any capital reserve to share capital in the last three years. The table below sets out the dividend
+distribution of ordinary shares of the Bank for the last three years:
+Item
+Dividend per ten shares (pre-tax, in RMB yuan)
+Cash dividends (pre-tax, in RMB millions)
+Percentage of cash dividends (1) (%)
+Executive Directors: Mr. Chen Siqing, Mr. Liao Lin,
+Mr. Zheng Guoyu and Mr. Wang Jingwu;
+2021
+As at the disclosure date of the results, the composition of
+the Board of Directors of the Bank is as follows:
+Management The Bank has clearly documented
+the remuneration policy for Directors, Supervisors and
+Senior Management members, and has continuously
+improved its performance assessment system and incentive
+restriction mechanism. From the perspectives of economic
+benefit, prevention and control of financial risks and
+support for the real economy and social responsibilities,
+the Bank adopted a system composed of the Bank's
+overall operation and management based indicators for
+the Management and duties allocation based indicators
+for individuals. The remuneration to the Chairman of
+the Board of Directors, the President, the Chairman
+of the Board of Supervisors and other executives of
+the Bank has followed the State's policies relating
+to the remuneration reform on executives of central
+enterprises, which consists of basic annual remuneration,
+performance-based remuneration and incentive income
+linked to term appraisal. The remuneration to other Senior
+Management members and Shareholder Supervisors
+consists of basic annual remuneration and performance-
+based remuneration, and part of performance-based
+remuneration is paid in a deferred manner. The Bank has
+contributed to statutory retirement programs organized by
+Chinese governmental organizations at different levels for
+Directors, Supervisors and Senior Management members
+concurrently as the employees of the Bank. Upon obtaining
+all applicable approvals, the Bank will implement a long-
+term incentive program. As at 31 December 2021, the
+Bank had not granted any share appreciation rights to
+any Director, Supervisor, Senior Management member, or
+other core business personnel designated by the Board of
+Directors.
+Interests in Shares, Underlying Shares,
+and Debentures Held by Directors
+and Supervisors As at 31 December 2021,
+none of the Directors or Supervisors of the Bank had
+any interests or short positions in the shares, underlying
+shares or debentures of the Bank or any of its associated
+corporations (as defined in Part XV of the Securities and
+Futures Ordinance of Hong Kong) which have to be
+notified to the Bank and SEHK under Divisions 7 and 8 of
+Directors' and Supervisors' Rights to
+Acquire Shares or Debentures None of
+the Bank, its subsidiaries, its controlling shareholders or
+subsidiaries of its controlling shareholders entered into
+any agreement or arrangement enabling the Directors and
+Supervisors to acquire benefits by means of the acquisition
+of shares in or debentures of the Bank or any other body
+corporate.
+Part XV of the Securities and Futures Ordinance of Hong
+Kong (including interests or short positions therein that
+they shall be deemed to have pursuant to such provisions
+of the Securities and Futures Ordinance of Hong Kong), or
+any interests or short positions which have to be recorded
+in the register under Section 352 of the Securities and
+Futures Ordinance of Hong Kong, or any interests or short
+positions which have to be notified to the Bank and SEHK
+pursuant to the Model Code for Securities Transactions by
+Directors of Listed Issuers as set out in Appendix 10 to the
+Hong Kong Listing Rules.
+Connected Transactions
+In 2021, the Bank carried out standardized management
+of the Group's connected transactions in strict accordance
+with the regulations of CBIRC and CSRC as well as
+listing rules in Shanghai and Hong Kong, and had no
+connected transaction to be submitted to the Board
+of Directors or the Shareholders' General Meeting for
+review. All connected transactions occurred complied
+with the disclosure exemptions under the Listing Rules of
+the Shanghai Stock Exchange and the Hong Kong Listing
+Rules. The disclosure exemptions abided by the provisions
+of SSE for disclosure of connected transactions as well as
+the provisions of SEHK for reporting and announcement of
+connected transactions.
+Share Capital and Public Float
+Please refer to "Note 47. to the Consolidated Financial
+Statements: Related Party Disclosures" for details of
+the related party transactions defined under the laws,
+regulations and accounting standards of China.
+Participation in Investing in National
+Financing Guarantee Fund Co., Ltd. In
+July 2018, the Bank signed the Promoter's Agreement
+of the National Financing Guarantee Fund Co., Ltd.
+In October 2018, upon the approval of CBIRC, the
+Bank planned to contribute RMB3.0 billion to National
+Financing Guarantee Fund Co., Ltd., which shall be paid by
+instalments. In May 2021, the Bank completed the entire
+contribution. For details on the investment, please refer to
+the announcements published by the Bank on the website
+of SSE, the "HKEXnews" website of HKEX and the website
+of the Bank.
+Annual Report 2021
+131
+Report of the Board of Directors
+Participation in Investing in National
+Green Development Fund Co, Ltd. In
+July 2020, the Bank signed the Promoter's Agreement of
+the National Green Development Fund Co, Ltd. In April
+2021, upon the approval of CBIRC, the Bank planned to
+contribute RMB8.0 billion to National Green Development
+Fund Co, Ltd., which shall be paid by instalments. In May
+2021, the Bank completed the first contribution of RMB0.8
+billion. For details on the investment, please refer to the
+announcements published by the Bank on the website of
+SSE, the "HKEXnews" website of HKEX and the website of
+the Bank.
+Liability Insurance of Directors,
+Supervisors and Senior Management
+Members Pursuant to the Articles of Association
+of the Bank, where conditions permit, the Bank may
+establish the professional liability insurance system of
+Directors, Supervisors and Senior Management members
+upon approval of the Shareholders' General Meeting.
+The Bank will use its own assets to compensate each
+Director, Supervisor and Senior Management member for
+any liability arising during their performance period to the
+maximum extent permitted by laws and administrative
+regulations or within the scope not prohibited by laws and
+administrative regulations, unless the Directors, Supervisors
+and Senior Management members are otherwise proved
+to have failed to act honestly or in good faith during their
+duty performance. During the reporting period, the Bank
+purchased liability insurance for Directors, Supervisors and
+Senior Management members.
+Relations among Directors, Supervisors
+and Senior Management Directors, Supervisors
+and Senior Management members of the Bank are not
+related to one another with respect to finance, business,
+family, or other material relationships which are required to
+be disclosed.
+Remuneration Policy for Directors,
+Supervisors and Senior
+Members of the Board of Directors
+2020
+During the reporting period, the Bank's connected
+transactions under the rules of CBIRC mainly included
+inter-bank lending, bond repurchase, bond investment,
+loans, deposits and financial market derivative transactions
+etc., with a total amount of RMB1,430,056 million
+accumulatively.
+2.933
+For details on the distribution of dividends on preference
+shares of the Bank, please refer to the section headed
+"Details of Changes in Share Capital and Shareholding of
+Substantial Shareholders Preference Shares".
+_
+Formulation and Implementation of
+Cash Dividend Policy
+The Articles of Association of the Bank explicitly stipulates
+that the Bank's profit distribution policy shall maintain
+its continuity and stability and meanwhile have regard to
+the long-term interest of the Bank, the overall interests of
+all shareholders and the sustainable development of the
+Bank. It emphasizes the priority to adopt cash dividend
+as the profit distribution method and provides that the
+Bank's adjustment to the profit distribution policy shall be
+discussed by the Board of Directors as a special proposal
+and the grounds for adjustment shall be substantiated and
+proved in detail and presented in a written substantiating
+report for Independent Non-executive Directors to issue
+their opinions, and then the report will be submitted to the
+Shareholders' General Meeting for approval as a special
+resolution.
+Annual Report 2021
+129
+Report of the Board of Directors
+The formulation and implementation of the Bank's cash
+dividend policy accords with the provisions stipulated in
+the Articles of Association and the requirements provided
+in the resolutions of the Shareholders' General Meeting,
+the dividend distribution standards and proportion are
+clear and explicit, and the decision-making procedure and
+mechanism are complete. Moreover, Independent Non-
+executive Directors had issued their opinions for it. Minority
+shareholders can fully express their opinions and appeals,
+to completely safeguard their legitimate rights.
+Purchase, Sale and Redemption of
+Shares During the reporting period, except the
+redemption of offshore EUR preference shares, neither
+the Bank nor any of its subsidiaries purchased, sold or
+redeemed any listed shares of the Bank. For details on
+the redemption of offshore EUR preference shares, please
+refer to the section headed "Details of Changes in Share
+Capital and Shareholding of Substantial Shareholders
+Preference Shares".
+Distributable
+Financial Summary The summary of results,
+assets and liabilities for the five years ended 31 December
+2021 is set out in the section headed "Financial
+Highlights" of this annual report.
+Pre-emptive Rights The Articles of Association
+of the Bank does not have any mandatory provision
+regarding pre-emptive rights. Pursuant to the Articles of
+Association, the Bank may increase its registered capital
+after obtaining approval of the Shareholders' General
+Meeting and of relevant authorities, by issuing shares
+through public or non-public offering, issuing bonus shares
+to the existing shareholders, converting capital reserve
+to share capital or using other methods as allowed by
+applicable laws and administrative regulations or approved
+by relevant authorities.
+Donations During the reporting period, the Group
+made external donations of RMB114.81 million equivalent.
+2019
+Note: (1) Calculated by dividing cash dividends on ordinary shares (pre-tax) by net profit attributable to ordinary shareholders of the parent
+company for the period.
+30.4
+Reserves Details of the
+distributable reserves of the Bank as at 31 December 2021
+are set out in "Note 39. to the Consolidated Financial
+Statements: Reserves" of this annual report.
+Performance of the Board of Supervisors. In 2021, the
+Board of Supervisors held nine meetings, considered 20
+proposals including proposals on the 2020 work report
+of the Board of Supervisors and assessment report on
+the duty performance, heard nine reports on the topics
+including the operation, development strategy planning
+and the Group's AML work, and reviewed 43 reports
+including reports on the quarterly supervision and relevant
+surveys of the Board of Supervisors in 2021. It issued
+opinions in an objective and fair manner and appropriately
+exercised voting rights. The members of the Board of
+Supervisors diligently and faithfully fulfilled their duties,
+attended three Shareholders' General Meetings, and
+attended nine meetings of the Board of Directors and 36
+meetings of special committees as non-voting attendees.
+They input adequate time and effort in supervisory
+inspections, attached equal importance to theoretical
+learning and experience summary from practice, with an
+aim to further build up their duty performance ability.
+External supervisors of the Bank worked for more than
+15 working days in the Bank, complying with the relevant
+requirements.
+Supervision on the performance of duties. The Board
+of Supervisors supervised the Board of Directors, Senior
+Management and their members on their compliance
+with the laws and regulations, the Articles of Association
+of the Bank, and the implementation of the resolutions
+of the Shareholders' General Meeting and the Board
+of Directors and the regulatory opinions. It paid close
+attention to how the Board of Directors and the Senior
+Management implemented the economic and financial
+policies of the state and regulatory requirements,
+served the implementation of major national strategies,
+responded to the COVID-19 pandemic, supported the
+real economy, promoted the key tasks of "ensuring
+stability on six key fronts" and "maintaining security in
+104,534
+94,804
+2.628
+93,664
+30.9
+30.9
+Mr. Anthony Francis Neoh, Mr. Yang Siu Shun,
+2.660
+132
+ICBC
+Industrial and Commercial Bank of China Limited
+Board of Directors
+Report of the Board of Supervisors
+Work of the Board of Supervisors
+Mr. Shen Si, Mr. Nout Wellink and Mr. Fred Zuliu Hu.
+During the reporting period, the Board of Supervisors,
+pursuant to relevant laws and regulations, regulatory
+requirements and the Articles of Association, performed
+supervision duties earnestly. Relying on a variety of
+methods such as onsite surveying and offsite monitoring,
+it carried out supervision of duty performance and due
+diligence, financial activities, risk management and internal
+control, etc. in a down-to-earth way. With its important
+role in corporate governance exploited adequately, it
+promoted the legal, compliant operation and development
+across the Bank.
+Mar
+144
+INDEPENDENT AUDITOR'S REPORT
+Pages
+Pages
+CONTENTS
+Aug
+Nov
+Oct
+Sep
+July
+June
+27. Property and Equipment
+Apr
+Dec
+May
+211
+AUDITED FINANCIAL STATEMENTS
+Other Comprehensive Income
+213
+Feb
+154
+Fair Value Through Profit or Loss
+Financial Liabilities Designated as at
+208
+30.
+Statement of Profit or Loss
+Statement of Profit or Loss and
+Other Assets
+29.
+Consolidated:
+209
+28. Deferred Tax Assets and Liabilities
+153
+Jan
+Culture
+Department
+Party-related
+Affairs
+Department
+9
+31. Due to Banks and Other Financial
+ICBC Credit Suisse
+Asset Management
+ICBC-AXA
+Overseas Branches
+and their Institutions
+(54)
+Overseas Subsidiaries
+and their Institutions
+(367)
+D D D D D D G D
+Finance & Accounting
+Department
+} }
+CHROMBRER
+Corporate Strategy and
+Financial Technology
+Department
+Operation
+Management
+Department
+Information
+Management
+Department
+Corporate
+Modern Finance
+Research Institute
+10
+11
+12
+Auditor's Report and
+Financial 
+Statements
+Secondary reporting line
+Primary reporting line
+8
+Rural Banks
+ICBC Investment
+141
+Staff Union Working
+Committee
+Retired Staff
+Service and Management
+Department
+Security Department
+Inspection Office of
+the Party Committee
+ICBC Wealth Management
+Statement of Financial Position
+229
+Institutions
+218
+4.
+Summary of Significant Accounting Policies
+164
+39. Reserves
+223
+5. Significant Accounting Judgements and
+40.
+Other Comprehensive Income
+224
+Estimates
+183
+41.
+Cash and Cash Equivalents
+225
+6.
+Net Interest Income
+11. Operating Expenses
+ICBC Leasing
+185
+Net Trading Income
+8.
+227
+Other Equity Instruments
+Transferred Financial Assets
+185
+Net Fee and Commission Income
+7.
+226
+42. Interests in Structured Entities
+184
+43.
+38.
+162
+50. Fair Value of Financial Instruments
+191
+34. Due to Customers
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+214
+Certificates of Deposit
+33.
+214
+159
+214
+Repurchase Agreements
+32.
+157
+Statement of Changes in Equity
+213
+Statement of Cash Flows
+155
+1.
+161
+Amendments to IFRSS
+217
+Share Capital
+37.
+Application of the New and
+3.
+Corporate Information
+217
+36.
+161
+Basis of Preparation
+2.
+214
+35. Debt Securities Issued
+Other Liabilities
+Grassroots Branches
+(15,508)
+Supervisory Board Office
+(including Directly Managed Branches)
+(36)
+Design and operating effectiveness of key internal
+controls
+•
+understood, assessed and tested the design
+and operating effectiveness of key internal
+controls relating to approval, recording,
+monitoring and regular evaluation of internal
+credit risk ratings which are relevant inputs to
+the ECL model;
+understood, assessed and tested the design
+and operating effectiveness of key internal
+controls of ECL model, including the selection,
+approval, and application of ECL model
+methodology, on-going model monitoring,
+input of underlying data and parameters, and
+loan staging based on customer asset quality,
+cash flow projection used in the discounted
+cash flow method, and the review and
+approval of forward-looking information;
+understood, assessed and tested the
+information technology system and design and
+operating effectiveness of the related controls,
+including general information technology
+controls, data transmission between systems,
+mapping of parameters of ECL model, and
+system calculation of loss allowance.
+Annual Report 2021
+145
+Independent Auditor's Report
+Key audit matters (continued)
+Key audit matter
+Expected credit loss allowance of loans and advances
+to customers measured at amortised cost (continued)
+Due to the significance of allowance for impairment losses
+of loans and advances to customers measured at amortised
+cost and the associated ECL allowance and the significant
+judgements and estimation exercised by management in
+estimating ECL, we identified this as a key audit matter.
+Refer to Note 4 (10), Note 5, Note 14, Note 23, and Note
+49(a) to the consolidated financial statements for relevant
+disclosures.
+How our audit addressed the key audit matter
+(2)
+ECL model
+assessed the reliability and appropriateness
+of the ECL model and the reasonableness of
+key parameters used in the model, including:
+PD, LGD, EAD, discount rate, forward-looking
+adjustments, and evaluated the rationality of
+the key management judgements on those key
+parameters;
+assessed the internal credit risk rating
+benchmark used in the ECL model by reviewing
+its periodic validation and monitoring report to
+evaluate the reasonableness of the validation
+approach, completeness of the validation
+scope and accuracy of the validation, and
+selected samples to verify the accuracy of
+internal rating calculation;
+verified, on a sample basis, the accuracy of
+ECL model data input such as loan agreement
+amount, due date, interest rate, guarantee
+method;
+assessed the reasonableness of the selection
+and weighting of economic indicators, multiple
+macro-economic scenarios, and other inputs
+and assumptions used by management in the
+forward-looking adjustments; assessed the
+reasonableness of forecasted macro-economic
+indicators and industry data by comparing to
+available third party information, and reviewed
+the sensitivity analysis of economic indicators;
+verified, on a sample basis, the calculation of
+ECL model, and tested whether the model
+reasonably reflected management's modelling
+methodology;
+performed back-testing, and verified the results
+of the model using actual observable data, and
+evaluated whether there was any indication of
+management bias.
+146
+ICBC
+Independent Auditor's Report
+Key audit matters (continued)
+Key audit matter
+Expected credit loss allowance of loans and advances
+to customers measured at amortised cost (continued)
+How our audit addressed the key audit matter
+(1)
+(3)
+Our audit procedures in respect of expected credit loss
+allowance of loans and advances to customers measured at
+amortised cost included the following:
+The management exercised significant judgements and
+estimation in its assessment of ECL allowance of loans and
+advances to customers measured at amortised cost. They
+include the determination of staging of loans and advances
+to customers including determining whether the credit risk
+has increased significantly and credit impairment events
+have occurred; the determination of key parameters used
+in the ECL model including probability of default (PD), loss
+given default (LGD), exposure at default (EAD), discount
+rate, and forward-looking information for stage 1 and
+2 corporate loans and advances, discounted bills and all
+personal loans and advances; the determination of key
+parameters used in discounted cash flow assessment in
+respect of stage 3 corporate loans and advances including
+recoverable cash flows and discount rates.
+205
+26. Investments in Associates and
+Joint Ventures
+207
+Annual Report 2021
+143
+Independent Auditor's Report
+Deloitte.
+To the Shareholders of Industrial and Commercial Bank of China Limited
+(Incorporated in the People's Republic of China with limited liability)
+Opinion
+德勤
+We have audited the consolidated financial statements of Industrial and Commercial Bank of China Limited (the "Bank")
+and its subsidiaries (collectively referred to as the "Group") set out on pages 153 to 274, which comprise the consolidated
+statement of financial position as at 31 December 2021, the consolidated statement of profit or loss, the consolidated
+statement of profit or loss and other comprehensive income, the consolidated statement of changes in equity and the
+consolidated statement of cash flows for the year then ended, and a summary of significant accounting policies and other
+explanatory information.
+In our opinion, the consolidated financial statements give a true and fair view of the financial position of the Group as at
+31 December 2021, and of its consolidated financial performance and its consolidated cash flows for the year then ended
+in accordance with International Financial Reporting Standards ("IFRSS") issued by the International Accounting Standards
+Board ("IASB") and have been properly prepared in compliance with the disclosure requirements of the Hong Kong
+Companies Ordinance.
+Basis for opinion
+We conducted our audit in accordance with International Standards on Auditing ("ISAS"). Our responsibilities under those
+standards are further described in the Auditor's responsibilities for the audit of the consolidated financial statements section
+of our report. We are independent of the Group in accordance with the Code of Ethics for Professional Accountants issued
+by International Ethics Standards Board for Accountants ("the Code"), and we have fulfilled our other ethical responsibilities
+in accordance with the Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
+basis for our opinion.
+Key audit matters
+Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
+consolidated financial statements of the current period. These matters were addressed in the context of our audit of the
+consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion
+on these matters.
+144
+ICBC
+Independent Auditor's Report
+Key audit matters (continued)
+Key audit matter
+Expected credit loss allowance of loans and advances
+to customers measured at amortised cost
+The Group uses an expected credit loss ("ECL") model
+to calculate the loss allowance for loans and advances to
+customers measured at amortised cost in accordance with
+IFRS 9.
+As at 31 December 2021, the Group's loans and
+advances to customers measured at amortised cost was
+RMB20,174,699 million, and the related impairment
+provision was RMB603,764 million.
+How our audit addressed the key audit matter
+Risk based sample selection for credit review
+selected samples for credit review by focusing
+on industries that are significantly affected
+by fluctuations of economic cycle and policy
+regulations, regions with high credit risk
+exposure, and loans with other high-risk
+characteristics such as non-performing loans,
+overdue performing loans, rescheduled loans
+and borrowers with negative publicity;
+•
+analysed the borrower's financial and non-
+financial information, and other available
+information, and evaluated the reasonableness
+of management's judgement on staging,
+including whether credit risk has increased
+significantly since initial recognition and
+whether credit impairment events have
+occurred by reviewing the credit files,
+interviewing management, independently
+searching for publicly available information and
+exercising professional judgement;
+Lease During the reporting period, the Bank had not
+held on trust to a material extent or entered into any
+material sub-contract or lease arrangement in respect
+of assets of other corporations, which were subject to
+disclosure, and no other corporation had held on trust to
+a material extent or entered into any material sub-contract
+or lease arrangement in respect of the Bank's assets, which
+were subject to disclosure.
+Material Guarantees The provision of guarantees
+is in the ordinary course of business of the Bank. During
+the reporting period, the Bank did not have any material
+guarantee that needs to be disclosed except for the
+financial guarantee services within the business scope as
+approved by PBC and the CBIRC.
+Other Material Contracts During the reporting
+period, the Bank did not have any other material contracts
+which were subject to disclosure.
+14. Impairment Losses on Assets
+242
+49. Financial Risk Management
+191
+13. Five Highest Paid Individuals
+237
+48. Segment Information
+187
+12. Directors' and Supervisors' Remuneration
+231
+47. Related Party Disclosures
+186
+44. Assets Pledged as Security
+228
+9.
+Net Gains on Financial Investments
+185
+45. Share Appreciation Rights Plan
+228
+10. Other Operating Income, Net
+186
+46. Commitments and Contingent Liabilities
+Material Trust, Sub-contract and
+Material Contracts and Performance of
+Obligations thereunder
+Please refer to "Note 47. to the Consolidated Financial
+Statements: Related Party Disclosures" for details of
+the related party transactions defined under the laws
+and regulations of China and the relevant accounting
+standards.
+Implementation of Share Incentive Plan
+and Employee Stock Ownership Plan
+during the Reporting Period During the
+reporting period, the Bank did not implement any share
+incentive plan or any employee stock ownership plan.
+performed credit assessments on borrower's
+and guarantor's financial information,
+collateral valuation and other sources of
+repayment for the selected stage 3 credit-
+impaired corporate loans and advances, tested
+the recalculation of impairment provision
+based on the recoverable cash flows and
+discount rates, and evaluated whether there
+was any material misstatement.
+Annual Report 2021
+147
+Independent Auditor's Report
+Key audit matters (continued)
+Key audit matter
+Consolidation of structured entities
+Structured entities mainly include wealth management
+products, investment funds, trust plans, asset management
+plans and asset-backed securities in which the Group has
+interests in them through their initiation, management or
+investment.
+In determining whether the Group has control and
+therefore should consolidate a structured entity,
+management is required to consider the power it
+possesses, its exposure to variable returns, and its ability
+to use its power to affect returns. The Group is required
+to collectively consider the relevant facts and substance to
+assess whether it has control over the structured entity.
+We identified the consolidation of structured entities as a
+key audit matter because the amount involved is significant
+and the evaluation on whether the Group has control
+over the structured entities requires significant accounting
+judgement.
+Refer to Note 4(2), Note 5 and Note 42 to the consolidated
+financial statements for relevant disclosures.
+How our audit addressed the key audit matter
+Banking Departments of Tier-one
+Branches and Tier-two Branches (459)
+Our audit procedures in respect of consolidation of
+structured entities included the following:
+Selected samples to perform the following audit
+procedures:
+inspected agreements relating to the structured
+entity and understood the purpose of its set
+up; assessed the power the Group has over the
+structured entity according to the Group's rights and
+obligations under different transaction structures and
+its involvement with the structured entity;
+verified the analysis on the Group's variable
+return which includes, but is not limited to, fixed
+management fee and performance fees obtained
+through acting as asset manager, as well as the
+returns obtained from holding an interest in a
+structured entity, and providing liquidity support or
+other support;
+analysed the scope of the Group's decision-
+making power over the structured entity, the level
+of remuneration obtained from providing asset
+management services, the risk of variable return
+borne by holding other interests in the structured
+entity and the substantive rights held by other
+participants, checked the Group's analysis on the
+magnitude and variability of variable return, and
+assessed whether the Group acts as principal or
+agent in the structured transaction;
+assessed
+the management's decision on the
+consolidation of structured entities through carrying
+out the above procedures.
+148
+ICBC
+Significant Events
+Material Lawsuits or Arbitration
+Cases During the reporting period, the Bank incurred
+no material lawsuits or arbitration cases. It was involved
+in several legal disputes in its ordinary course of business.
+Most of these cases were initiated by the Bank to recover
+non-performing loans, while some were related to disputes
+with clients. As at 31 December 2021, the amount of
+cases pending judgements or arbitrations awards in which
+the Bank and/or its subsidiaries are defendants totaled
+RMB6, 165 million, and the Bank does not expect any
+material adverse effect from the above-mentioned cases on
+the Bank's business, financial position or operating results.
+Material Assets Acquisition, Sale and
+Merger During the reporting period, the Bank had no
+material assets acquisition, sale and merger.
+Credit Standing During the reporting period,
+neither the Bank nor its controlling shareholders had
+ever failed to fulfil obligations provided in effective legal
+documents issued by court for material lawsuits, nor had
+there been any outstanding debt of significant amount.
+Understood, assessed and tested the related design and
+operating effectiveness of the internal controls relating to
+the consolidation of structured entities.
+201
+25. Investments in Subsidiaries
+199
+Sub-bureau
+Internal Audit Bureau
+Internal Audit
+US Risk Committee
+Audit Committee
+Related Party
+Transactions Control
+Committee
+Nomination
+Committee
+Responsibility and Consumer
+Protection Committee
+Corporate Social
+Compensation
+Committee
+Management
+Committee
+Risk
+Strategy
+Committee
+Board of Directors
+Annual Report 2021
+Office
+Board of Directors'
+ICBC
+140
+During the reporting period, the Bank was not subject to any case filing investigation for
+suspected crime, nor was any of its controlling shareholders, Directors, Supervisors and Senior Management members
+subject to coercive measures for suspected crime; neither the Bank nor its controlling shareholders, Directors, Supervisors
+and Senior Management members were subject to any criminal penalty or any case filing investigation by CSRC for
+suspected illegality or irregularity or administrative penalty by CSRC or material administrative penalty by other competent
+authority; none of its controlling shareholders, Directors, Supervisors and Senior Management members was held in
+retention by the disciplinary inspection and supervision organ because of suspected serious illegality or irregularity or
+work-related crime, which affected their duty performance; none of its Directors, Supervisors and Senior Management
+members was subject to coercive measures taken by other competent authority for suspected illegality or irregularity, which
+affected their duty performance; neither the Bank nor any of its controlling shareholders, Directors, Supervisors and Senior
+Management members was subject to any administrative or regulatory measures taken by CSRC or disciplinary sanction
+imposed by stock exchanges.
+Disciplinary Actions
+and did not
+do anything in
+violation of the
+commitment.
+SSF strictly
+fulfilled the above
+commitment
+December 2021,
+As at 31
+Internal departments and directly managed
+24. Financial Investments
+institutions of the Head Office
+Board of Supervisors
+Tier-one Branches
+Domestic Subsidiaries
+and their Branches
+Domestic Branches
+Data Center
+Software
+Development Center
+Business Research &
+Development Center
+of Financial Managers
+Hangzhou Institute
+Changchun Institute
+of Financial Managers
+Department
+Private Banking
+Organizational Chart
+Overseas Institutions
+Domestic Institutions
+Financial Assets Service
+Management Committee
+Senior Management
+Risk Management
+Committee
+Asset & Liability
+Management Committee
+Institutional Banking
+Promotion Committee
+Inclusive Finance and
+Rural Revitalization
+Promotion Committee
+Corporate &
+Investment Banking
+Promotion Committee
+Committee
+Consumer Protection
+Financial Technology and
+Digital Development
+Committee
+Personal Banking
+Promotion Committee
+Shareholders'
+General Meeting
+Fulfillment of
+commitment
+As at 31
+December 2021,
+Huijin strictly
+fulfilled the above
+commitment
+and did not
+do anything in
+violation of the
+commitment.
+Provided that Huijin continues to hold
+any share of the Bank or is deemed as
+the controlling shareholder of the Bank
+or the related party of the controlling
+shareholder of the Bank according to
+the laws or listing rules of China or
+the listing place of the Bank, Huijin
+will not engage in or participate in any
+competitive commercial banking business
+including but not limited to granting
+loans, attracting deposits and providing
+settlement, fund custody, bank card
+and money exchange services. However,
+Huijin can engage in or participate in
+some competitive businesses by investing
+in other commercial banks. In this regard,
+Huijin has committed that it will: (1)
+fairly treat the investments in commercial
+banks and will not make any decision or
+judgment that will have adverse impact
+on the Bank or be beneficial to other
+commercial banks by taking advantage
+of the status of being a shareholder of
+the Bank or information obtained by
+taking advantage of the status of being a
+shareholder of the Bank; and (2) perform
+the shareholders' rights for the maximum
+interests of the Bank.
+of the Bank
+273
+17. Dividends
+193
+52. Events After the Reporting Period
+274
+18. Earnings Per Share
+193
+53. Comparative Amounts
+274
+19. Cash and Balances with Central Banks
+194
+54. Approval of the Consolidated Financial
+20. Due From Banks and Other
+Statements
+274
+Financial Institutions
+194
+UNAUDITED SUPPLEMENTARY INFORMATION
+21. Derivative Financial Instruments
+195
+TO THE CONSOLIDATED FINANCIAL STATEMENTS 275
+22. Reverse Repurchase Agreements
+198
+23. Loans and Advances to Customers
+According to the Notice of the State
+Council on Issuing the Implementation
+Plan for Transferring Part of State-Owned
+Capital to Fortify Social Security Funds
+(Guo Fa [2017] No. 49), SSF shall perform
+the obligation of more than 3-year lock-
+up period as of the date of the receipt of
+transferred shares.
+of the Parent Company
+192
+16. Profit Attributable to Equity Holders
+Commitment
+Simplified Report of
+Changes in Equity of
+National Council for
+Social Security Fund
+Prospectus of
+Industrial and
+Commercial Bank
+of China Limited
+on Initial Public
+Offering (A Share)
+Prospectus on A
+Share Rights Issue
+of Industrial and
+Commercial Bank
+of China Limited
+commitment is
+made
+Legal document
+under which the
+Taking effect from
+December 2019/
+Above three years
+November 2010/
+No specific term
+Time and term of
+commitment
+October 2006/
+No specific term
+Commitment of
+performing the
+obligation of
+lock-up period
+for A shares
+SSF
+non-competition
+Statement of Changes in Equity
+Shareholder
+Huijin
+Type of
+commitment
+Commitment of
+Commitments
+51. Statement of Financial Position and
+192
+15. Income Tax Expense
+As at 31 December 2021, all of the continuing commitments made by the shareholders were properly fulfilled, and were
+listed as follows:
+Key Audit Matters The Audit Committee
+has reviewed the key audit matters in the audit report
+and concluded that it is unnecessary to provide a
+supplementary explanation.
+266
+Material Related Party Transactions
+During the reporting period, the Bank did not enter into
+any material related party transactions.
+Occupation of Fund by Controlling
+Shareholders and Other Related
+Parties During the reporting period, none of the
+controlling shareholders and other related parties of the
+Bank occupied any fund of the Bank. The auditors have
+issued the Special Explanation on the Occupation of Fund
+by Controlling Shareholders and Other Related Parties of
+Industrial and Commercial Bank of China Limited in 2021.
+Annual Report 2021
+139
+Significant Events
+External Guarantees During the reporting
+period, the Bank did not enter any guarantee contract
+against the resolution procedures for external guarantees
+that are prescribed by laws, administrative regulations or
+CSRC.
+Includes the appropriation made by overseas branches and subsidiaries in the amounts of RMB11 million and RMB1,435
+million, respectively.
+ICBC
+158
+The accompanying notes form part of these consolidated financial statements.
+(ii)
+218
+(i)
+Other comprehensive income (after tax, net):
+(a) Items that will not be reclassified to profit or loss:
+Note
+2021
+2020
+350,216
+317,685
+40
+(i) Changes in fair value of equity instruments designated as at
+fair value through other comprehensive income
+(1,180)
+1,289
+(ii) Other comprehensive income recognised under
+the equity method
+15
+(5)
+(iii) Other
+28
+8
+(b) Items that may be reclassified subsequently to profit or loss:
+(i) Changes in fair value of debt instruments measured at
+fair value through other comprehensive income
+(ii) Credit losses of debt instruments measured at fair value through
+other comprehensive income
+1,623
+(3,042)
+1,827
+1,051
+(iii) Reserve from cash flow hedging instruments
+442
+(253)
+Profit for the year
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Consolidated Statement of Profit or Loss and Other Comprehensive Income
+(202,623)
+(202,668)
+422,030
+390,822
+2,869
+1,304
+424,899
+392,126
+15
+(74,683)
+(74,441)
+350,216
+317,685
+(iv) Other comprehensive income recognised under the equity
+method
+00 00
+18
+The accompanying notes form part of these consolidated financial statements.
+348,338
+315,906
+1,878
+350,216
+1,779
+317,685
+0.95
+0.86
+0.95
+0.86
+Annual Report 2021
+153
+18
+14
+541
+(v) Foreign currency translation differences
+Reverse repurchase agreements
+Loans and advances to customers
+Financial investments
+Financial investments measured at fair value through
+profit or loss
+21
+22223 2
+19
+20
+3,098,438
+827,150
+3,537,795
+1,081,897
+76,140
+663,496
+20,109,200
+134,155
+739,288
+24
+9,257,760
+18,136,328
+8,591,139
+623,223
+784,483
+Financial investments measured at fair value through
+other comprehensive income
+1,803,604
+1,540,988
+― Financial investments measured at amortised cost
+Investments in associates and joint ventures
+6,830,933
+6,265,668
+26
+61,782
+Derivative financial assets
+Due from banks and other financial institutions
+Cash and balances with central banks
+ASSETS
+(12,353)
+(16,212)
+(vi) Other
+885
+1,311
+Subtotal of other comprehensive income for the year
+(8,172)
+(15,839)
+Total comprehensive income for the year
+342,044
+301,846
+Total comprehensive income for the year attributable to:
+Equity holders of the parent company
+14
+340,089
+Non-controlling interests
+1,955
+1,310
+342,044
+301,846
+The accompanying notes form part of these consolidated financial statements.
+154
+ICBC
+Consolidated Statement of Financial Position
+As at 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes
+31 December 2021 31 December 2020
+300,536
+41,206
+(206,585)
+11
+ICBC
+Independent Auditor's Report
+Other information
+The Directors are responsible for the other information. The other information comprises all the information included in the
+annual report, other than the consolidated financial statements and our auditor's report thereon.
+Our opinion on the consolidated financial statements does not cover the other information and we do not express any form
+of assurance conclusion thereon.
+In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and,
+in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or
+our knowledge obtained in the audit or otherwise appears to be materially misstated.
+If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we
+are required to report that fact. We have nothing to report in this regard.
+Responsibilities of the directors for the consolidated financial statements
+The Directors are responsible for the preparation of the consolidated financial statements that give a true and fair view in
+accordance with IFRSS issued by IASB and the disclosure requirements of the Hong Kong Companies Ordinance, and for such
+internal control as the Directors determine is necessary to enable the preparation of consolidated financial statements that
+are free from material misstatement, whether due to fraud or error.
+In preparing the consolidated financial statements, the Directors are responsible for assessing the Group's ability to continue
+as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
+accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative
+but to do so.
+The Directors are assisted by the Audit Committee in discharging their responsibilities for overseeing the Group's financial
+reporting process.
+Auditor's responsibilities for the audit of the consolidated financial statements
+Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
+from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion solely
+to you, as a body, and for no other purpose. We do not assume responsibility towards or accept liability to any other person
+for the contents of this report.
+Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS
+will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
+material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users
+taken on the basis of these consolidated financial statements.
+As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism
+throughout the audit. We also:
+•
+Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud
+or error, design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient
+and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
+fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
+misrepresentations or the override of internal control.
+Annual Report 2021
+151
+Independent Auditor's Report
+Auditor's responsibilities for the audit of the consolidated financial statements (continued)
+•
+Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
+appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's
+internal control.
+Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
+disclosures made by the Directors.
+Conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the
+audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
+doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
+required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or,
+if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
+up to the date of our auditor's report. However, future events or conditions may cause the Group to cease to continue
+as a going concern.
+Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
+disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a
+manner that achieves fair presentation.
+Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
+within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
+supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
+150
+understood, assessed and tested the design and
+operating effectiveness of controls over cyber
+security management mechanism, the operational
+security of key information infrastructure, data and
+customer information management, and system
+operation monitoring and emergency management.
+understood, assessed and tested the design and
+operating effectiveness of automated controls
+relevant to significant accounts and assertions or risk
+of material misstatement, and such IT automated
+controls include accuracy of system calculation
+logic and consistency of data transmission, covering
+business in corporate banking, personal banking,
+and financial markets, as well as financial reporting
+process;
+understood, assessed and tested the design and
+operating effectiveness of key internal controls of the
+IT systems relevant to financial reporting;
+Independent Auditor's Report
+Key audit matters (continued)
+Key audit matter
+Fair value of financial instruments
+The valuation of the Group's financial instruments
+measured at fair value is based on readily available market
+data or valuation models. For financial instruments without
+readily available market data such as debt securities,
+equities, over-the-counter derivative contracts and
+structured deposits, fair values are measured based on
+valuation techniques. The selection of valuation techniques
+and significant unobservable input data requires significant
+accounting judgement and estimation by management.
+As at 31
+December 2021, the Group's financial
+assets that were measured at fair value amounted to
+RMB3,198,887 million, representing 9.10% of total
+assets; financial liabilities that were measured at fair value
+amounted to RMB454,645 million, representing 1.43%
+of total liabilities. Level 3 financial assets and liabilities
+with significant unobservable input data amounted to
+RMB153,164 million and RMB1,993 million respectively.
+We identified fair value assessment of financial instruments
+as a key audit matter because the amount involved is
+significant and the valuation requires significant judgement
+and estimation, and particularly for level 3 financial
+instruments due to the uncertainty arising from the use of
+unobservable input data.
+Refer to Note 4(7), Note 5, Note 21, Note 22, Note 23,
+Note 24, Note 30, and Note 50 to the consolidated
+financial statements for relevant disclosures.
+How our audit addressed the key audit matter
+Our audit procedures in respect of fair value assessment of
+financial instruments included the following:
+Understood, assessed and tested the design and operating
+effectiveness of internal controls relating to the valuation
+of financial instruments, independent pricing validation,
+and valuation model validation and approval.
+Selected samples to perform the following audit
+procedures:
+.
+We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit
+and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
+We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements regarding
+independence and communicate with them all relationships and other matters that may reasonably be thought to bear on
+our independence and, where applicable, actions taken to eliminate threats or safeguards applied.
+evaluated the fair value of level 1 financial
+instruments by comparing the fair value with publicly
+available market observable data;
+assessed and verified the valuation techniques used
+in the valuation of complex financial instruments
+valuation, selected samples to perform independent
+valuation and compared the results with the Group's
+valuation.
+Annual Report 2021
+149
+Independent Auditor's Report
+Key audit matters (continued)
+Key audit matter
+IT systems and controls over financial reporting
+As a large banking group, the Group's IT systems are
+complex.
+To ensure the accuracy of financial reports, IT over
+financial reporting and its related general controls and
+automated controls are required to be designed and
+operated effectively. The related general controls include
+IT governance, controls over program development and
+changes, access to programs and data and IT operations.
+Automated controls include system calculations and data
+logic relating to significant accounts, as well as interfaces
+between business management systems and accounting
+systems.
+With the rapid increase in the volume of on-line
+transactions of the Group, as well as the continuous
+development and application of new technologies and
+open banking that increased third party network access,
+the Group faces increasing challenges on cyber security
+and data protection that warrant close monitoring of their
+potential impact on financial reporting related IT systems.
+We identified IT systems and controls over financial
+reporting as a key audit matter because the Group's
+financial accounting and reporting systems are highly
+reliant on complex IT systems and control processes,
+and the IT systems are required to serve the Group's
+global customer base, handle large volumes of frequent
+transactions, and continue to develop in response to
+changing business needs.
+How our audit addressed the key audit matter
+Our audit procedures in respect of IT systems and controls
+over financial reporting included the following:
+•
+evaluated the appropriateness of the Group's
+valuation techniques, inputs and assumptions for
+level 2 and 3 financial instruments, and compared
+the observable market data with publicly available
+market data;
+(236,227)
+From the matters communicated with the Audit Committee, we determine those matters that were of most significance in
+the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe
+these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in
+extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse
+consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
+The engagement partner on the audit resulting in this independent auditor's report is Wu Wei Jun, David.
+Certified Public Accountants
+Hong Kong
+2020
+66
+1,162,218
+1,092,521
+(471,538)
+(445,756)
+6
+690,680
+646,765
+77
+148,727
+146,668
+(15,703)
+(15,453)
+7
+133,024
+131,215
+819
+8,955
+2,222
+16,440
+11,829
+10
+11,781
+8,044
+860,880
+800,075
+2021
+Notes
+Diluted (RMB yuan)
+Basic (RMB yuan)
+30 March 2022
+152
+ICBC
+Consolidated Statement of Profit or Loss
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Interest income
+Interest expense
+NET INTEREST INCOME
+Fee and commission income
+Fee and commission expense
+NET FEE AND COMMISSION INCOME
+Net trading income
+Deloitte Touche Tohmatsu
+Net gains on financial investments
+OPERATING INCOME
+Operating expenses
+Impairment losses on assets
+OPERATING PROFIT
+Share of results of associates and joint ventures
+PROFIT BEFORE TAXATION
+Income tax expense
+PROFIT FOR THE YEAR
+Profit for the year attributable to:
+Equity holders of the parent company
+Non-controlling interests
+PROFIT FOR THE YEAR
+EARNINGS PER SHARE
+Other operating income, net
+Includes the appropriation made by overseas branches and subsidiaries in the amounts of RMB101 million and RMB935
+million, respectively.
+Property and equipment
+290,296
+334
+(334)
+Balance as at 31 December 2021
+356,407 354,331 148,703 357,169 438,952 24,628 (39,999) (4,243) 1,165
+926,375 1,620,642 3,257,755 17,503 3,275,258
+139,730
+139,730
+63
+(11,155)
+(11,155)
+(465) (465)
+(ii)
+Includes the appropriation made by overseas branches and subsidiaries in the amounts of RMB56 million and RMB1,764
+million, respectively.
+Includes the appropriation made by overseas branches and subsidiaries in the amounts of RMB47 million and RMB1,746
+million, respectively.
+The accompanying notes form part of these consolidated financial statements.
+Annual Report 2021
+157
+Consolidated Statement of Changes in Equity
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Attributable to equity holders of the parent company
+Reserves
+Foreign
+Share
+Balance as at 1 January 2020
+Other
+equity Capital
+capital instruments
+356,407 206,132 149,139 292,291
+Surplus
+reserve
+334
+transferred to retained earnings
+Other comprehensive income
+Dividends to non-controlling shareholders
+hedging Other
+controlling
+reserve reserves Subtotal earnings Total interests equity
+(27,882) (4,725) (304) 800,718 1,510,558 2,893,502 16,013 2,909,515
+348,338 348,338 1,878 350,216
+1,469 (8,249)
+(8,249)
+1,469 (8,249) 348,338 340,089
+Retained
+Total
+77 (8,172)
+1,955 342,044
+Dividends ordinary shares 2020 final
+(note 17)
+(94,804) (94,804)
+(94,804)
+Distributions to other equity instrument
+holders (note 17)
+(9,607) (9,607)
+(9,607)
+reserve
+Appropriation to surplus reserve (i)
+Capital injection by
+34,258
+99,251
+34,258
+(34,258)
+99,251
+(99,251)
+139,730
+other equity instrument holders
+Capital reduction by
+other equity instrument holders
+(11,218)
+63
+Appropriation to general reserve (ii)
+482
+482
+reserve
+reserve
+19,687
+19,687
+Change in shareholding in subsidiaries
+(499)
+(499)
+(499)
+(780)
+(1,279)
+Dividends to non-controlling shareholders
+(337)
+(337)
+Other comprehensive income transferred
+to retained earnings
+Other
+(865)
+(221)
+(10) 6,439
+(221)
+(3)
+3
+(34) 5,530 (5,432)
+98
+98
+Balance as at 31 December 2020
+356,407
+225,819 148,640 322,911 339,701 22,377 (27,882) (4,725)
+(304) 800,718 1,510,558 2,893,502
+16,013 2,909,515
+19,687
+instrument holders
+Capital injection by other equity
+(34,682)
+305,019 23,280 (18,568)
+Profit for the year
+Other comprehensive income
+(672)
+Total comprehensive income
+(672)
+៩៩
+(15,753)
+(15,753)
+(272) 1,327 (15,370)
+(272) 1,327 (15,370)
+Cash flow
+hedging Other
+Retained
+reserve reserves Subtotal earnings Total interests equity
+(4,453) (1,597) 745,111 1,368,536 2,676,186 15,817 2,692,003
+315,906 315,906 1,779 317,685
+(15,370) (469) (15,839)
+315,906 300,536 1,310
+301,846
+Non-
+controlling
+Investment currency
+General revaluation translation
+reserve
+Total
+(93,664) (93,664)
+(93,664)
+Distributions to other equity instrument
+holders (note 17)
+(8,839) (8,839)
+(8,839)
+Appropriation to surplus reserve (i)
+Appropriation to general reserve (ii)
+31,485
+34,682
+31,485
+(31,485)
+34,682
+Dividends ordinary shares 2019 final
+(note 17)
+27
+(12,117)
+Total comprehensive income
+Due to banks and other financial institutions
+31
+2,921,029
+2,784,259
+Repurchase agreements
+32
+365,943
+293,434
+Certificates of deposit
+33
+290,342
+335,676
+Due to customers
+Income tax payable
+Deferred tax liabilities
+34
+26,441,774
+25,134,726
+28
+92,443
+5,624
+89,785
+2,881
+35
+791,375
+798,127
+36
+789,355
+140,973
+71,337
+21
+Derivative financial liabilities
+286,279
+Deferred tax assets
+28
+79,259
+67,713
+Other assets
+29
+TOTAL ASSETS
+707,862
+35,171,383
+729,258
+33,345,058
+The accompanying notes form part of these consolidated financial statements.
+Annual Report 2021
+712,770
+155
+As at 31 December 2021
+(In RMB millions, unless otherwise stated)
+LIABILITIES
+Notes
+31 December 2021
+31 December 2020
+Due to central banks
+39,723
+54,974
+Financial liabilities designated as at fair value through profit or loss
+30
+87,180
+87,938
+Consolidated Statement of Financial Position
+1,917
+31,896,125
+Debt securities issued
+and President
+The accompanying notes form part of these consolidated financial statements.
+156
+ICBC
+Liu Yagan
+Finance and Accounting Department
+Consolidated Statement of Changes in Equity
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(i)
+Attributable to equity holders of the parent company
+Reserves
+Foreign
+Other
+Share equity
+Investment currency Cash flow
+Non-
+Capital Surplus
+capital instruments
+reserve
+reserve
+Balance as at 1 January 2021
+356,407 225,819 148,640 322,911
+reserve
+339,701
+General revaluation translation
+reserve reserve
+22,377
+Profit for the year
+Other comprehensive income
+1,917
+(12,117)
+Liao Lin
+Vice Chairman
+Chen Siqing
+Chairman
+33,345,058
+35,171,383
+Other liabilities
+TOTAL LIABILITIES
+EQUITY
+Equity attributable to equity holders of the parent company
+Share capital
+37
+356,407
+356,407
+Other equity instruments
+38
+354,331
+225,819
+Reserves
+30,435,543
+39
+800,718
+Retained earnings
+1,620,642
+1,510,558
+3,257,755
+2,893,502
+Non-controlling interests
+TOTAL EQUITY
+TOTAL EQUITY AND LIABILITIES
+17,503
+16,013
+3,275,258
+2,909,515
+926,375
+General Manager of
+202,623
+168
+Proceeds from disposal of property and equipment and other assets
+(other than repossessed assets)
+Purchases of financial investments
+Proceeds from sale and redemption of financial investments
+Investments in associates and joint ventures
+Proceeds from disposal of associates and joint ventures
+Investment returns received
+Net cash flows from investing activities
+CASH FLOWS FROM FINANCING ACTIVITIES
+Proceeds from issuance of other equity instruments
+Proceeds from issuance of debt securities
+Interest paid on debt securities
+(27,584)
+(38,005)
+13,008
+(3,344,684)
+8,539
+(3,191,273)
+2,423,298
+1,845,743
+(21,207)
+Purchases of property and equipment and other assets
+(11,690)
+CASH FLOWS FROM INVESTING ACTIVITIES
+2021
+311,773
+82,547
+1,756,321
+2,942,248
+Net cash flows from operating activities before tax
+443,536
+1,642,168
+Income tax paid
+Net cash flows from operating activities
+(82,654)
+360,882
+(84,552)
+1,557,616
+The accompanying notes form part of these consolidated financial statements.
+Annual Report 2021
+159
+Consolidated Statement of Cash Flows
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Note
+2020
+2,219,487
+206
+(674,556)
+Cash payment for other financing activities
+(7,813)
+(6,310)
+Net cash flows from financing activities
+(11,553)
+(46,949)
+NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS
+(325,227)
+375,570
+Cash and cash equivalents at beginning of the year
+1,791,122
+1,450,413
+Effect of exchange rate changes on cash and cash equivalents
+(29,138)
+(34,861)
+CASH AND CASH EQUIVALENTS AT END OF THE YEAR
+41
+1,436,757
+1,791,122
+(337)
+282,407
+(465)
+(8,839)
+627
+250,962
+(1,135,097)
+139,793
+19,716
+835,441
+927,759
+(26,320)
+(25,137)
+Repayment of debt securities
+(836,623)
+(858,858)
+Cash payment for redemption of other equity instruments
+(11,155)
+Acquisition of non-controlling interests
+(1,279)
+Dividends paid on ordinary shares
+(94,804)
+(93,664)
+Dividends or interest paid to other equity instrument holders
+(9,607)
+Dividends paid to non-controlling shareholders
+1,261,998
+Other liabilities
+Due to customers
+Dividend income
+(2,869)
+(1,304)
+28,194
+27,046
+11
+3,125
+2,607
+14
+202,668
+(22,300)
+(12,642)
+27,673
+25,549
+(1,964)
+(1,710)
+(18,349)
+(9,814)
+(262,827)
+other assets (other than repossessed assets)
+(245,294)
+Net gains on disposal and stocktake of property and equipment and
+Interest income on financial investments
+Consolidated Statement of Cash Flows
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes
+2021
+2020
+CASH FLOWS FROM OPERATING ACTIVITIES
+Profit before taxation
+424,899
+392,126
+Adjustments for:
+Share of results of associates and joint ventures
+Depreciation
+Amortisation
+Impairment losses on assets
+Unrealised gains on foreign exchange
+Interest expense on debt securities issued
+Accreted interest on impaired loans
+Net gains on financial investments
+Net gains on changes in fair value
+(14,473)
+(12,797)
+(2,077)
+(51,517)
+(1,671,052)
+(1,662,922)
+Net (decrease)/increase in operating liabilities:
+Financial liabilities designated as at fair value through profit or loss
+(853)
+(7,530)
+Due to central banks
+(15,161)
+53,959
+Due to banks and other financial institutions
+158,557
+563,361
+Repurchase agreements
+77,427
+ICBC
+Certificates of deposit
+(37,420)
+269
+(43,570)
+Other assets
+(2,079,400)
+(2,184,611)
+(1,238)
+9
+(3,388)
+(2,355)
+358,267
+362,842
+Net decrease/(increase) in operating assets:
+Due from central banks
+155,880
+NET CASH FLOWS FROM OPERATING ACTIVITIES INCLUDE:
+Interest received
+75,762
+157,890
+(16,064)
+Financial assets measured at fair value through profit or loss
+143,496
+284,342
+Reverse repurchase agreements
+99,863
+123,955
+Loans and advances to customers
+Due from banks and other financial institutions
+Interest paid
+30,155
+902,804
+Where goodwill forms part of a CGU or group of CGUs and part of the operation within that unit is disposed of, the
+goodwill associated with the operation disposed of is included in the carrying amount of the operation when determining
+the gain or loss on disposal of the operation. Goodwill disposed of in this circumstance is measured based on the relative
+values of the operation disposed of and the portion of the CGU or group of CGUS retained.
+(6) Related parties
+A party is considered to be related to the Group if:
+(a)
+the party is a person or a close member of that person's family and that person:
+(i)
+has control or joint control over the Group;
+(ii)
+has significant influence over the Group; or
+or
+(b)
+(iii)
+is a member of the key management personnel of the Group or of a parent of the Group;
+the party is an entity where any of the following conditions applies:
+the entity and the Group are members of the same group;
+(ii)
+one entity is an associate or joint venture of the other entity (or of a parent, subsidiary or fellow subsidiary of the
+other entity);
+(iii)
+the entity and the Group are joint ventures of the same third party;
+Impairment is determined by assessing the recoverable amount of the CGU or group of CGUS to which the goodwill relates.
+Where the recoverable amount of the CGU or group of CGUS is less than the carrying amount, an impairment loss is
+recognised. An impairment loss recognised for goodwill is not reversed in subsequent period.
+(iv) one entity is a joint venture of a third entity and the other entity is an associate of the third entity;
+After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is tested for
+impairment annually or more frequently if events or changes in circumstances indicate that the carrying value may be
+impaired. The Group performs its annual impairment test of goodwill at year end date. For the purpose of impairment
+testing, goodwill arising in a business combination is, from the acquisition date, allocated to each of the Group's cash-
+generating units ("CGU"), or group of CGUS, that are expected to benefit from the synergies of the combination,
+irrespective of whether other assets or liabilities of the Group are assigned to those units or groups of units.
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(3) Non-controlling interests
+Non-controlling interests represent the equity in a subsidiary not attributable directly or indirectly to a parent.
+Non-controlling interests are presented in the consolidated statement of financial position within equity, separately from
+equity attributable to the equity holders of the Bank. Non-controlling interests in the results of the Group are presented
+on the face of the consolidated statement of profit or loss and the consolidated statement of profit or loss and other
+comprehensive income as an allocation of the total profit or loss and total comprehensive income for the year between non-
+controlling interests and the equity holders of the Bank.
+Changes in the Group's interests in a subsidiary that do not result in a loss of control are accounted for as equity
+transactions, whereby adjustments are made to the amounts of controlling and non-controlling interests within consolidated
+statement of equity to reflect the change in relative interests, but no adjustments are made to goodwill and no gain or loss
+is recognised.
+(4) Associates and joint ventures
+An associate is an entity in which the Group has significant influence. A joint venture is an arrangement whereby the
+Group and other parties contractually agree to share control of the arrangement, and have rights to the net assets of the
+arrangement. Other than those measured at fair value through profit or loss, the Group's investments in associates or joint
+ventures are accounted for using the equity method.
+Under the equity method, an investment in an associate or joint venture is carried in the consolidated statement of financial
+position at cost plus post-acquisition changes in the Group's share of the net assets of the associate or joint venture, less any
+impairment losses. The consolidated statement of profit or loss reflects the share of the results of operations of the associate
+or joint venture. Unrealised profits and losses resulting from transactions between the Group and the associates or joint
+ventures are eliminated to the extent of the Group's interests in the associates or joint ventures.
+If an investment in an associate becomes an investment in a joint venture, the retained interest is not re-measured. Instead,
+the investment continues to be accounted under the equity method, and vice versa.
+In the Bank's statement of financial position, investments in associates and joint ventures are stated at cost less impairment
+losses.
+(5) Business combination and goodwill
+Business combinations are accounted for by applying the acquisition method. The Group can elect to apply an optional
+concentration test, on a transaction-by-transaction basis, that permits a simplified assessment of whether the acquired set
+of assets is not a business. If the concentration test is met, the set of assets is determined not to be a business; otherwise,
+the Group shall then perform an assessment in accordance with the requirements of business. The consideration transferred
+is measured at acquisition date fair value which is the sum of the acquisition date fair values of assets transferred by the
+Group, liabilities assumed by the Group to the former owners of the acquiree and the equity interests issued by the Group in
+exchange for control of the acquiree. Any costs directly attributable to the combination are recognised in profit or loss when
+incurred.
+When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and
+designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition
+date. This includes the separation of embedded derivatives from host contracts of the acquiree.
+If the business combination is achieved in stages, the acquirer's previously-held equity interest in the acquiree is re-measured
+to the acquisition date fair value through profit or loss.
+Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. Subsequent
+changes to the fair value of the contingent consideration that is classified as a financial asset or financial liability, is
+recognised in profit or loss. If the contingent consideration is classified as equity, it shall not be re-measured, and its
+subsequent settlement is accounted for within equity.
+Annual Report 2021
+165
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred, the amount
+recognised for non-controlling interests and the fair value of the acquirer's previously-held equity interest in the acquiree
+over the net of the acquisition-date amounts of the identifiable assets and liabilities acquired. If the sum of this consideration
+and other items is lower than the fair value of the net assets of the subsidiary acquired, the difference is, after reassessment,
+recognised in profit or loss as gains on bargain purchase.
+(v)
+the entity is a post-employment benefit plan for the benefit of employees of either the Group or an entity
+related to the Group;
+(vii) a person identified in (a)(i) has significant influence over the entity or is a member of the key management
+personnel of the entity (or of a parent of the entity); or
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+The business model refers to how the Group manages its financial assets in order to generate cash flows. That is, the
+Group's business model determines whether cash flows will result from collecting contractual cash flows, selling financial
+assets or both. The Group determines the business model for managing the financial assets according to the facts and based
+on the specific business objective for managing the financial assets determined by the Group's key management personnel.
+In assessing whether the contractual cash flows are solely payments of principal and interest on the principal amount
+outstanding, the Group considers the contractual terms of the instrument. For the purposes of this assessment, principal is
+defined as the fair value of the financial asset on initial recognition. Interest is defined as consideration for the time value
+of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for
+other basic lending risks and costs, as well as a profit margin. The Group also assesses whether the financial asset contains
+a contractual term that could change the timing or amount of contractual cash flows such that it would not meet the above
+contractual cash flows characteristics.
+Subsequent measurement of financial assets
+Financial assets measured at FVTPL
+These financial assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend
+income, are recognised in profit or loss unless the financial assets are part of a hedging relationship.
+Financial assets measured at amortised cost
+These assets are subsequently measured at amortised cost using the effective interest method. A gain or loss on a financial
+asset that is measured at amortised cost and is not part of a hedging relationship shall be recognised in profit or loss when
+the financial asset is derecognised, through the amortisation process or in order to recognise impairment gain or loss.
+Debt instruments measured at FVTOCI
+These assets are subsequently measured at fair value. Interest income calculated using the effective interest method,
+impairment and foreign exchange gains and losses are recognised in profit or loss. Other net gains and losses are recognised
+in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are
+reclassified to profit or loss.
+Equity instruments measured at FVTOCI
+These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss. Other net
+gains and losses are recognised in other comprehensive income. On derecognition, gains and losses accumulated in other
+comprehensive income are reclassified to retained earnings.
+(iii) Classification and subsequent measurement of financial liabilities
+Financial liabilities are classified as measured at FVTPL and other financial liabilities.
+Financial liabilities measured at FVTPL
+A financial liability is classified as measured at FVTPL if it is classified as held-for-trading (including derivative financial liability)
+or it is designated as such on initial recognition.
+Financial liabilities measured at FVTPL are subsequently measured at fair value and net gains and losses (including any
+interest expense) are recognised in profit or loss, unless the financial liabilities are part of a hedging relationship.
+939,737
+167
+Annual Report 2021
+On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present
+subsequent changes in the investment's fair value in other comprehensive income. This election is made on an investment-
+by-investment basis, and the investment should meet the definition of an equity instrument from perspective of the issuer.
+All financial assets not classified as measured at amortised cost or FVTOCI as described above are measured at FVTPL. On
+initial recognition, the Group may irrevocably designate a financial asset that otherwise meets the requirements to be
+measured at amortised cost or at FVTOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch
+that would otherwise arise.
+its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the
+principal amount outstanding.
+(viii) the entity, or any member of a Group of which it is a part, provides key management personnel services to the
+Group or to the Group's parent.
+166
+ICBC
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(7) Financial instruments
+A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
+instrument of another entity.
+(i) Initial recognition and measurement of financial instruments
+At initial recognition, financial assets and financial liabilities are measured at fair value. For financial assets and financial
+liabilities measured at fair value through profit or loss ("FVTPL"), any related directly attributable transaction costs are
+charged to profit or loss; for other categories of financial assets and financial liabilities, any related directly attributable
+transaction costs are included in their initial recognised value.
+ICBC
+Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
+market participants at the measurement date.
+(ii) Classification and subsequent measurement of financial assets
+Classification of financial assets
+The classification of financial assets is generally based on the business model in which a financial asset is managed and its
+contractual cash flow characteristics. On initial recognition, a financial asset is classified as measured at amortised cost, at
+fair value through other comprehensive income ("FVTOCI"), or at FVTPL.
+Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for
+managing financial assets in which case all affected financial assets are reclassified on the first day of the first reporting
+period following the change in the business model.
+A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
+it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
+its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the
+principal amount outstanding.
+A financial asset is measured at FVTOCI if it meets both of the following conditions and is not designated as at FVTPL:
+-
+it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling
+financial assets; and
+When measuring fair value, the Group shall take into account the characteristics of the asset or liability if market participants
+would take those characteristics into account when pricing the asset or liability at the measurement date (including the
+condition of the asset; and restrictions, if any, on the sale or use of the asset), and use valuation techniques that are
+appropriate in the circumstances and for which sufficient data and other information are available to measure fair value. The
+adopted valuation techniques mainly include market approach, income approach and cost approach.
+164
+(vi) the entity is controlled or jointly controlled by a person identified in (a);
+An investment in a subsidiary is consolidated into the consolidated financial statements from the date that control
+commences until the date that control ceases. Intra-group balances, transactions and any unrealised profit or loss arising
+from intra-group transactions are eliminated in full in preparing the consolidated financial statements.
+(In RMB millions, unless otherwise stated)
+3.
+APPLICATION OF THE NEW AND AMENDMENTS TO IFRSS
+(1) Mandatory amendments to IFRSS effective for the current year
+In the current year, the Group has applied, for the first time, the following amendments to IFRSS issued by the IASB which
+are mandatorily effective for the annual periods beginning on or after 1 January 2021 for the preparation of the Group's
+consolidated financial statements:
+Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: Interest Rate Benchmark Reform (Phase 2)
+Changes in the basis for determining the contractual cash flows as a result of interest rate
+benchmark reform
+For changes in the basis for determining the contractual cash flows of a financial asset or financial liability as a result of
+interest rate benchmark reform, the Group applies the practical expedient to account for these changes by updating the
+effective interest rate. Such change in effective interest rate normally has no significant effect on the carrying amount of the
+relevant financial asset or financial liability.
+A change in the basis for determining the contractual cash flows is required by interest rate benchmark reform if and only if,
+both these conditions are met:
+the change is necessary as a direct consequence of interest rate benchmark reform; and
+the new basis for determining the contractual cash flows is economically equivalent to the previous basis.
+For other changes made to a financial asset or financial liability in addition to changes to the basis for determining the
+contractual cash flows required by interest rate benchmark reform, the Group first applies the practical expedient to
+the changes required by interest rate benchmark reform by updating the effective interest rate. The Group then applies
+the applicable requirements in IFRS 9 Financial Instruments on modification of a financial asset or a financial liability for
+additional changes to which the practical expedient does not apply.
+Transition and summary of effects
+The Group's business impacted by interest rate benchmark reform are mainly those linked with London Interbank Offered
+Rate, consisting of loans, debt investments and derivatives. The Group considered the application of this amendment had no
+material impact on the Group's financial positions and performance for the current period.
+_
+The Group has early adopted amendments to IFRS 16 COVID 19 Related Rent Concession Beyond 30 June 2021. The
+amendment has no significant financial and operational impacts to the Group.
+162
+ICBC
+Notes to the Consolidated Financial Statements
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+161
+The preparation of financial statements in conformity with IFRSS requires management to make judgements, estimates and
+assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses.
+Actual results may differ from these estimates. Judgements made by management in the application of IFRSS that have
+significant effect on the financial statements and major sources of estimation uncertainty are disclosed in Note 5.
+(351,322)
+In the Bank's statement of financial position, investments in subsidiaries are stated at cost less impairment losses.
+(393,080)
+The accompanying notes form part of these consolidated financial statements.
+160
+ICBC
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+1. CORPORATE INFORMATION
+Industrial and Commercial Bank of China Limited (the "Bank"), which was previously known as Industrial and Commercial
+Bank of China ("ICBC"), used to be a wholly-state-owned commercial bank established on 1 January 1984 based on
+the authorisation of the State Council and the People's Bank of China (the "PBOC") of the People's Republic of China
+(the "PRC"). On 28 October 2005, with the approval of the State Council, ICBC was restructured and incorporated as
+a joint-stock limited company. The joint-stock limited company undertook all the assets and liabilities of ICBC upon the
+restructuring. On 27 October 2006, the Bank was listed on both Shanghai Stock Exchange and The Stock Exchange of Hong
+Kong Limited.
+The Bank obtained authorisation to carry out banking business with an institution code of No. B0001H111000001 from the
+China Banking and Insurance Regulatory Commission (the "CBIRC") of the PRC. The Bank obtained its business license with
+unified social credit code 91100000100003962T from the State Administration for Industry and Commerce of the PRC. The
+legal representative is Mr. Chen Siqing and the registered office is located at No. 55 Fuxingmennei Avenue, Xicheng District,
+Beijing, the PRC.
+The Bank's stock codes of A Shares and H Shares listed on Shanghai Stock Exchange and The Stock Exchange of Hong Kong
+Limited are 601398 and 1398, respectively. The Bank's offshore preference shares are listed on The Stock Exchange of Hong
+Kong Limited and the stock code is 4620. The Bank's domestic preference shares are listed on Shanghai Stock Exchange and
+the stock codes are 360011 and 360036.
+The principal activities of the Bank and its subsidiaries (collectively referred to as the "Group") comprise corporate and
+personal financial services, treasury operations, investment banking, asset management, trust, financial leasing, insurance
+and other financial services. Domestic establishments refer to the Head Office of the Bank, branches and subsidiaries
+established in Chinese mainland. Overseas establishments refer to branches and subsidiaries established in jurisdictions
+outside Chinese mainland.
+2. BASIS OF PREPARATION
+(1) Statement of compliance
+The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards
+("IFRSS") promulgated by the International Accounting Standards Board (the "IASB"), and the disclosure requirements of the
+Hong Kong Companies Ordinance and the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong
+Limited.
+(2) Basis of preparation of the financial statements
+The consolidated financial statements have been prepared under the historical cost convention, except for certain financial
+instruments, and certain non-financial assets measured at fair value, as further explained in the respective accounting policies
+below.
+Annual Report 2021
+(2) Issued but not yet effective IFRSS and amendments to IFRSS
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+make financial performance easier to explain; and
+ease transition by deferring the effective date of IFRS 17 to 2023 and by providing additional relief to reduce the effort
+required when applying IFRS 17 for the first time.
+Other new and revised IFRSS that have been issued but are not yet effective are expected to have no material impact on the
+financial position and financial performance of the Group.
+Annual Report 2021
+163
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+4.
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
+reduce costs by simplifying certain requirements in the IFRS 17;
+(1) Functional currency and foreign currency translation
+The functional currency of the Group's domestic establishments is Renminbi ("RMB"). The overseas establishments
+determine their own functional currencies which best represent the economic environment they operate in. These financial
+statements are presented in RMB millions except when otherwise indicated.
+Foreign currency translation
+Foreign currency transactions are initially recorded in the functional currency using the exchange rates at the dates of the
+transactions or deemed exchange rates. Monetary assets and liabilities denominated in foreign currencies are retranslated
+into the functional currency at the applicable exchange rates ruling at the end of the reporting period. Exchange differences
+arising on the settlement of monetary items or on translating monetary items at period end rates are recognised in profit or
+loss, with the exception that they are taken directly to other comprehensive income when the monetary items are designated
+as part of the hedge of the Bank's net investment in a foreign entity, and the aggregate exchange differences are not
+recognised in profit or loss until the disposal of such net investment.
+Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as
+at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated
+using the exchange rates as at the date when the fair value is determined. Any goodwill arising on the acquisition of a
+foreign operation and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition
+are treated as foreign assets and liabilities of the foreign operation and translated at the deemed rates at the end of the
+reporting period. The exchange differences are recognised in profit or loss or in other comprehensive income, depending on
+the nature of non-monetary items.
+As at the end of the reporting period, the assets and liabilities of foreign operations are translated into the presentation
+currency of the Bank at the exchange rates ruling at the end of the reporting period. For overseas business not operating in a
+hyperinflationary economy, all items within equity except for retained earnings are translated at the exchange rates ruling at
+the dates of the initial transactions. Income and expenses in the statement of profit or loss are translated using the exchange
+rates at the date of the transactions or deemed exchange rates. The exchange differences arising on the above translation
+are taken to other comprehensive income. On disposal of a foreign operation, the deferred cumulative amount recognised
+in other comprehensive income relating to that particular foreign operation is recognised in profit or loss. The effect of
+exchange rate changes on cash and cash equivalents is presented separately in the statement of cash flows.
+(2) Subsidiaries
+The Group has not applied the following new and revised IFRSS that have been issued but are not yet effective.
+Subsidiaries are entities (including structured entities) controlled by the Group. The Group controls an entity if it is exposed,
+or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its
+power over the entity. The Group reassesses whether it has control if there are changes to one or more of the elements of
+control. This includes circumstances in which protective rights held (e.g. those resulting from a lending relationship) become
+substantive and lead to the Group having power over an entity.
+A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding
+who controls the entity, and the relevant activities are directed by means of contractual or other arrangements.
+Functional currency
+The IASB issued the amendments to IFRS 17 in 2020 to provide response to the stakeholders and are designed to:
+The Group is currently assessing the impact of the standard and its amendments on the Group's financial position and
+financial performance.
+IFRS 17 is issued to resolve the comparability issues created by IFRS 4 Insurance Contracts by setting out a single principle-
+based standard for the recognition, measurement, presentation and disclosure of insurance contracts in the financial
+statements of the issuers of those contracts.
+IFRS 17: Insurance Contracts and the related Amendments
+2
+Amendments to IFRS 3: Reference to the Conceptual Framework'
+Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture³
+Amendments to IAS 1: Classification of Liabilities as Current or Non-current²
+Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting Policies²
+Amendments to IAS 8: Definition of Accounting Estimates²
+Amendments to IAS 16: Property, Plant and Equipment: Proceeds before Intended Use¹
+Amendments to IAS 37: Onerous Contracts
+Cost of Fulfilling a Contract¹
+Amendments to IAS 12: Deferred Tax related to Assets and Liabilities arising from a Single Transaction²
+1
+Effective for annual periods beginning on or after 1 January 2022.
+2
+Effective for annual periods beginning on or after 1 January 2023.
+3
+Effective for annual periods beginning on or after a date to be determined.
+IFRS 17 Insurance Contracts and the related amendments
+Amendments to IFRSS: Annual Improvements to IFRSS 2018-2020¹
+Further information about those changes that are expected to affect the Group:
+The Group has elected not to recognise right-of-use assets and lease liabilities for short-term leases that have a lease term of
+12 months or less and leases of low-value assets. The Group recognises the lease payments associated with these leases in
+profit or loss or as the cost of the assets where appropriate using the straight-line method over the lease term.
+When the lease liability is re-measured, a corresponding adjustment is made to the carrying amount of the right-of-use asset,
+or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
+there is a change in the assessment of whether the Group will exercise a purchase, extension or termination option, or
+there is a change in the exercise of the extension or termination option.
+Annual Report 2021
+there is a change in the amounts expected to be payable under a residual value guarantee;
+Under the following circumstances after the commencement date, the Group re-measures lease liabilities based on the
+present value of revised lease payments:
+The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
+date. In calculating the present value of lease payments, the Group uses the incremental borrowing rate if the interest rate
+implicit in the lease is not readily determinable. Each institution of the Group uses an interest rate that a lessee would have
+to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to
+the right-of-use asset in a similar economic environment as the incremental borrowing rate.
+A constant periodic rate is used to calculate the interest on the lease liability in each period during the lease term with a
+corresponding charge to profit or loss or included in the cost of assets where appropriate. Variable lease payments not
+included in the measurement of the lease liability are charged to profit or loss or included in the cost of assets where
+appropriate as incurred.
+there is a change in future lease payments resulting from a change in an index or a rate used to determine those
+payments;
+175
+where the insurance risk and other risks cannot be distinguished from each other, or can be distinguished but cannot
+be separately measured, an umbrella contract applies and a significant insurance risk test shall be performed based on
+it. If the insurance risk is significant, the contract is accounted for as an insurance contract; otherwise, it is accounted
+for as a non-insurance contract.
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(ii) As a lessor
+The Group determines at lease inception whether each lease is a finance lease or an operating lease. A lease is classified as
+a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset irrespective
+of whether the legal title to the asset is eventually transferred. An operating lease is a lease other than a finance lease.
+When the Group is a sub-lessor, it assesses the lease classification of a sub-lease with reference to the right-of-use asset
+arising from the head lease, not with reference to the underlying asset. If the head lease is a short-term lease to which the
+Group applies practical expedient described above, then it classifies the sub-lease as an operating lease.
+Under a finance lease, at the commencement date, the Group recognises the finance lease receivable and derecognises the
+finance lease asset. The finance lease receivable is initially measured at an amount equal to the net investment in the lease.
+The net investment in the lease is measured at the aggregate of the unguaranteed residual value and the present value of
+the lease receivable that are not received at the commencement date, discounted using the interest rate implicit in the lease.
+The Group recognises finance income over the lease term, based on a pattern reflecting a constant periodic rate of return.
+The impairment and derecognition of the finance lease receivable are recognised in accordance with the accounting policy
+in Note 4(10) and 4(12). Variable lease payments not included in the measurement of net investment in the lease are
+recognised as income as they are earned.
+Lease receipts from operating leases is recognised as income using the straight-line method over the lease term. The initial
+direct costs incurred in respect of the operating lease are initially capitalised and subsequently amortised in profit or loss over
+the lease term on the same basis as the lease income. Variable lease payments not included in lease receipts are recognised
+as income as they are earned.
+(17) Financial guarantee contracts
+The Group issues financial guarantee contracts, including letters of credit, letters of guarantee and acceptance. These
+financial guarantee contracts provide for specified payments to be made to reimburse the holders for the losses they incur
+when a guaranteed party defaults under the original or modified terms of a debt instrument, loan or any other obligation.
+The Group initially measures all financial contracts at fair value, in other liabilities, being the premium received. This
+amount is recognised ratably over the period of the contract as fee and commission income. Subsequently, the liabilities are
+measured at the higher of the amount of the loss allowance determined in accordance with impairment policies of financial
+instruments and the amount initially recognised less the cumulative amount of income. Any increase in the liability relating
+to a financial guarantee is taken to the statement of profit or loss.
+The right-of-use asset is depreciated using the straight-line method. If the lessee is reasonably certain to exercise a purchase
+option by the end of the lease term, the right-of-use asset is depreciated over the remaining useful lives of the underlying
+asset. Otherwise, the right-of-use asset is depreciated from the commencement date to the earlier of the end of the useful
+life of the right-of-use asset or the end of the lease term. Impairment losses of right-of-use assets are accounted for in
+accordance with the accounting policy described in Note 4(23).
+(18) Fiduciary activities
+Notes to the Consolidated Financial Statements
+The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is
+initially measured at cost, which comprises the initial amount of the lease liability, any lease payments made at or before
+the commencement date (less any lease incentives received), any initial direct costs incurred and an estimate of costs to
+dismantle and remove the underlying asset or to restore the site on which it is located or restore the underlying asset to the
+condition required by the terms and conditions of the lease.
+Insurance premium income is recognised when:
+For a contract that contains more than one separate lease components, the lessee and the lessor separate lease components
+and account for each lease component as a lease separately. For a contract that contains lease and non-lease components,
+the lessee and the lessor separate lease components from non-lease components. However, for the leases in which the
+Group is a lessee, the Group has elected not to separate lease components from non-lease components and accounts for the
+lease and non-lease components as a single lease component.
+When the Group acts in a fiduciary capacity such as custodian or agent, assets arising thereon together with related
+undertakings to return such assets to customers are excluded from the statement of financial position.
+Insurance income recognition
+(i)
+the insurance contract is issued, and related insurance risk is taken on by the Group;
+(ii)
+the related economic benefits are likely to flow to the Group; and
+(iii) related income can be reliably measured.
+Insurance contract liabilities
+When measuring insurance contract liabilities, the Group classifies insurance contracts whose insurance risks are of similar
+nature as a measurement unit. Insurance contract liabilities are measured based on a reasonably estimated amount of
+payment that the Group is obliged to pay to fulfill relevant obligations under the insurance contract. At the end of each
+reporting period, the adequacy of liability is tested. If the insurance contract liabilities re-calculated with the insurance
+actuarial method exceed their carrying amounts on the date of the liability adequacy test, an additional provision shall be
+Imade for the respective insurance contract liabilities based on the difference. Otherwise, no adjustment is made to the
+respective insurance contract liabilities.
+(i) As a lessee
+(16) Leases
+At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease
+if the contract conveys the right to control the use of one or more identified assets for a period of time in exchange for
+consideration.
+To assess whether a contract conveys the right to control the use of an identified asset, the Group assesses whether:
+the contract involves the use of an identified asset. An identified asset may be specified explicitly or implicitly in a
+contract and should be physically distinct, or a capacity portion or other portion of an asset that is not physically
+distinct but represents substantially all of the capacity of the asset and thereby provides the customer with the right to
+obtain substantially all of the economic benefits from the use of the asset. If the supplier has a substantive substitution
+right throughout the period of use, then the asset is not identified;
+ICBC
+174
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+the lessee has the right to obtain substantially all of the economic benefits from use of the asset throughout the
+period of use;
+the lessee has the right to direct the use of the asset.
+A lease is when the lessor conveys the right to control the use of an asset for a period of time in exchange for the
+consideration of the lessee.
+The asset custody services of the Group refer to the business that the Group as trustee approved by regulatory authorities,
+signs custody agreement with clients and takes the responsibility of trustee in accordance with relevant laws and regulations.
+The assets under custody are not recorded on the statement of financial position as the Group merely fulfils the responsibility
+as trustee and charges fees in accordance with these agreements without retaining any risks or rewards of the assets under
+custody.
+where the contingency involves a large population of items, the best estimate is determined by weighting all possible
+outcomes by their associated probabilities.
+ICBC
+Annual Report 2021
+177
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(21) Land use rights
+Land use rights are recognised at cost, being the fair value at the time of injection from the central government of the PRC
+(the "Government") during the Group's restructuring or the consideration paid. The rights are amortised using the straight-
+line method over the periods of the leases. When the prepaid land lease payments cannot be allocated reliably between the
+land and buildings elements, the entire lease payments are included in the costs of properties and buildings as finance leases
+in property and equipment.
+(22) Repossessed assets
+Repossessed assets are initially recognised at fair value of assets not retained plus related costs, and are subsequently
+measured at the lower of the carrying value and net recoverable amount. If the recoverable amount is lower than the
+carrying value of the repossessed assets, the assets are written down to the recoverable amount.
+An item of property and equipment is derecognised upon disposal or when no future economic benefits are expected from
+its use or disposal. Any gain or loss arising from derecognition of the asset (calculated as the difference between the net
+disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss in the year the asset is
+derecognised.
+(23) Non-financial asset impairment
+An assessment is made at the end of each reporting period as to whether there is any indication that previously recognised
+impairment losses may no longer exist or may have decreased. If such an indication exists, the recoverable amount is
+estimated. A previously recognised impairment loss is reversed only if there has been a change in the estimates used to
+determine the asset's recoverable amount since the last impairment loss was recognised. If that is the case, the carrying
+amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that
+I would have been determined, net of any depreciation or amortisation, had no impairment loss been recognised for the asset
+in prior years. Any such reversal is recognised in profit or loss. After such a reversal, the depreciation or amortisation charge
+is adjusted in future periods to allocate the asset's revised carrying amount, less any residual value, on a systematic basis over
+its remaining useful life.
+(24) Provisions
+Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that an
+outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be
+made of the amount of the obligation.
+A provision is initially measured at the best estimate of the expenditure required to settle the related present obligation.
+When the effect of the time value of money is material, the best estimate is determined by discounting the related future
+cash outflows. When determining the best estimate, the Group considers factors pertaining to a contingency such as
+risks, uncertainties and time value of money. Where there is a range of possible outcome, and each possible outcome in
+that range is as likely as any other, the best estimate is the mid-point of that range. In other cases, the best estimate is
+determined according to the following circumstances:
+where the contingency involves a single item, the best estimate is the most likely outcome;
+The Group reviews the carrying amount of a provision at the end of reporting period. The carrying amount is adjusted to the
+current best estimate.
+178
+ICBC
+where the insurance risk and other risks can be distinguished from each other and separately measured, the insurance
+risk is separated from other risks. The insurance risk is accounted for as an insurance contract and other risks are
+accounted for according to the relevant accounting standards;
+The Group assesses at the end of each reporting period whether there is any indication that property and equipment,
+land use rights, right-of-use assets, associates and joint ventures and other non-financial assets may be impaired. If any
+such indication exists, or when impairment testing for an asset is required, the Group makes an estimate of the asset's
+recoverable amount. An asset's recoverable amount is the higher of its fair value less costs to sell and its value in use and
+is determined on an individual basis, unless the asset does not generate cash inflows that are largely independent of those
+from other assets or groups of assets, in which case the recoverable amount is determined for the CGU to which the asset
+belongs. Where the gross carrying amount of an asset exceeds its recoverable amount, the asset is considered to be impaired
+and is written down to its recoverable amount. In assessing value in use of an asset, the estimated future cash flows are
+discounted to their present values using a pre-tax discount rate that reflects current market assessments of the time value of
+money and the risks specific to the asset.
+Residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at least at each financial
+year end.
+For an impaired fixed asset, the depreciation is calculated based on the carrying value less the cumulative impairment loss.
+Where parts of an item of property and equipment have different useful lives, the cost of that item is allocated on a
+reasonable basis among the parts and each part is depreciated separately.
+Equipment under operating leases where the Group is the lessor contains aircraft, aircraft engines and vessels. The estimated
+useful lives and depreciation methods are determined according to the conditions of individual aircraft and vessel. The
+residual values are assessed by an independent appraiser based on historical data. The estimated useful lives range from 15
+to 25 years.
+176
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(19) Precious metals
+Precious metals comprise gold, silver and other precious metals. Precious metals that are not related to the Group's precious
+metals trading activities are initially measured at acquisition cost and subsequently measured at the lower of cost and
+net realisable value. Precious metals acquired by the Group for trading purposes are initially measured at fair value and
+subsequent changes in fair value are recorded in the statement of profit or loss.
+The Group records the precious metals received as an asset. A liability to return the amount of precious metals deposited is
+also recognised. The precious metals deposited with the Group are measured at fair value both on initial recognition and in
+subsequent measurement.
+(20) Property and equipment
+Property and equipment, other than construction in progress are stated at costs less accumulated depreciation and
+any impairment loss. The cost of an item of property and equipment comprises its purchase price, tax and any directly
+attributable costs of bringing the asset to its present working condition and location for its intended use. Expenditure
+incurred after items of property and equipment have been put into operation, such as repairs and maintenance, is normally
+charged to profit or loss in the period in which it is incurred. In situations where the recognition criteria are satisfied, the
+expenditure for a major inspection is capitalised in the carrying amount of the asset as a replacement.
+Construction in progress comprises the direct costs of construction during the period of construction and is not depreciated.
+Construction in progress is reclassified to the appropriate category of property and equipment when completed and ready
+for use.
+The carrying values of property and equipment are reviewed for impairment when events or changes in circumstances
+indicate that the carrying values may not be recoverable.
+Depreciation is calculated on the straight-line basis to write off the cost of each item of property and equipment, less any
+estimated residual value, over the estimated useful life. The estimated useful life, estimated residual value and the annual
+depreciation rate of each item of property and equipment (excluding aircraft and vessels) are as follows:
+Properties and buildings
+Office equipment and motor vehicles
+(excluding aircraft and vessels)
+Leasehold improvements
+Estimated
+useful life
+5-50 years
+Estimated residual
+value rate
+0%-3%
+Annual
+depreciation rate
+1.94%-20%
+2-7 years
+14.29%-50%
+The shorter of the economic useful
+lives and remaining lease terms
+The Group grants entrusted loans on behalf of trustors, which are recorded off-balance sheet. The Group, as a trustee,
+grants such entrusted loans to borrowers under the direction of those trustors who fund these loans. The Group has been
+contracted by those trustors to manage the administration and collection of these loans on their behalf. Those trustors
+determine both the underwriting criteria for and the terms of all entrusted loans including their purposes, amounts, interest
+rates, and repayment schedules. The Group charges a commission related to its activities in connection with entrusted loans
+which are recognised ratably over the period in which the service is provided. The risk of loss is borne by those trustors.
+(ii)
+The Group will reclassify all related financial assets when it changes its business model for managing financial assets, and
+the reclassification applies prospectively from the reclassification date (the first day of the first reporting period following the
+change in business model).
+The Group's insurance subsidiary executes the contract with the policyholder. Where the Group undertakes insurance risk
+(other than financial risk) transferred from the policyholders, the contract is classified as an insurance contract. Insurance risk
+refers to the risk that the combined cost of claims, administration and policy acquisitions may exceed the aggregate amount
+of premiums received and investment income over time. Where the Group undertakes the risks other than insurance risk, the
+contract is classified as a non-insurance contract. Where the Group undertakes both insurance risk and other risks, forming a
+contract with mixed risks, the following stipulations are applied:
+The Group's method of measuring ECL of financial instruments reflects the following elements: (i) unbiased weighted
+average probability determined by the results of evaluating a range of possible outcomes; (ii) time value of money; (iii)
+reasonable and evidence-based information about past events, current conditions, and future economic forecasts that are
+available at no additional cost or effort at the end of the reporting period.
+The maximum period considered when estimating ECL is the maximum contractual period (including extension options) over
+which the Group is exposed to credit risk.
+Lifetime ECL is the ECL that result from all possible default events over the expected life of a financial instrument.
+12-month ECL is the portion of ECL that result from default events that are possible within the 12 months after the end of
+the reporting period (or a shorter period if the expected life of the instrument is less than 12 months).
+The Group classifies financial instruments into three stages and provides provisions for ECL accordingly, depending on
+whether credit risk on that financial instrument has increased significantly since initial recognition.
+The three risk stages are defined as follows:
+Stage 1: A financial instrument of which the credit risk has not significantly increased since initial recognition. The amount
+that equals to 12-month ECL is recognised as loss allowance.
+Stage 2: A financial instrument with a significant increase in credit risk since initial recognition but is not considered to be
+credit-impaired. The amount that equals to lifetime ECL is recognised as loss allowance. Refer to Note 49(a) credit risk for
+the description of how the Group determines when a significant increase in credit risk has occurred.
+Stage 3: A financial instrument is considered to be credit-impaired as at the end of the reporting period. The amount that
+equals to lifetime ECL is recognised as loss allowance. Refer to Note 49(a) credit risk for the definition of credit-impaired
+financial assets.
+(In RMB millions, unless otherwise stated)
+Presentation of allowance for ECL
+Write-off
+The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic
+prospect of recovery. A write-off constitutes a derecognition event. This is generally the case when the Group determines
+that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts
+subject to the write-off. However, financial assets that are written off could still be subject to enforcement activities in order
+to comply with the Group's procedures for recovery of amounts due. Subsequent recoveries of an asset that was previously
+written off are recognised as a reversal of impairment in profit or loss in the period in which the recovery occurs.
+(11) Modification of financial assets contracts
+In some cases (such as renegotiating loans), the Group may renegotiate or otherwise modify the financial assets contracts.
+The Group would assess whether or not the new contractual terms are substantially different to the original terms. If the
+terms are substantially different, the Group derecognises the original financial asset and recognises a new asset under the
+revised terms. If the renegotiation or modification does not result in derecognition, but leads to changes in contractual cash
+flows, when assessing whether a significant increase in credit risk has occurred, the Group compares the risk of a default
+occurring under the revised terms as at the end of the reporting period with that as at the date of initial recognition under
+original terms.
+170
+ICBC
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(12) Derecognition of financial assets and liabilities
+Derecognition of financial assets
+Financial asset is derecognised when one of the following conditions is met:
+ECL is re-measured at the end of each reporting period to reflect changes in the financial instrument's credit risk since
+initial recognition. Any change in the ECL amount is recognised as an impairment gain or loss in profit or loss. The Group
+recognises impairment gains or losses for financial instruments measured at amortised cost with a corresponding adjustment
+to their carrying amount through allowance for impairment loss. For debt instruments that are measured at FVTOCI, the
+loss allowance is recognised in other comprehensive income, which does not decrease the carrying amount of the financial
+assets. The Group recognises loss allowance for loan commitments and financial guarantee contracts through other liabilities
+(provisions for credit commitments).
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+169
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+For the financial liabilities designated as at FVTPL, the gains and losses from changes in fair value of the financial liability
+arising from changes in the Group's own credit risk are included in other comprehensive income; other changes in fair value
+of the financial liabilities are recognised in profit or loss. If the treatment of the impact of changes in the financial liabilities'
+own credit risk will create or enlarge the accounting mismatch in profit or loss, the Group shall recognise the entire gains
+or losses of the financial liabilities (including the amount of the impact of changes in its own credit risk) in profit and loss.
+When these liabilities are derecognised, the cumulative gains or losses previously recognised in other comprehensive income
+are reclassified from reserve to retained earnings.
+Other financial liabilities
+Other financial liabilities are subsequently measured at amortised cost using the effective interest method.
+(iv) Financial instruments reclassification
+(8) Trade date accounting
+All regular way purchases and sales of financial assets are recognised at the trade date, which is the date that the Group
+commits to purchase or sell the assets. A regular way purchase or sale is the purchase or sale of financial assets that requires
+delivery of assets within the time frame generally established by regulation or convention in the marketplace.
+Financial assets and financial liabilities are generally presented separately in the statement of financial position and shall not
+be offset. However, a financial asset and a financial liability are offset and the net amount is presented in the statement of
+financial position when both the following conditions are satisfied:
+-
+the Group currently has a legally enforceable right to set off the recognised amounts; and
+the Group intends either to settle on a net basis, or to realise the financial asset and settle the financial liability
+simultaneously.
+(10) Impairment of financial assets
+The Group recognises loss allowances for expected credit loss ("ECL") on:
+financial assets measured at amortised cost;
+debt instruments measured at FVTOCI; and
+loan commitments and financial guarantee contracts.
+Financial assets measured at fair value, including debt or equity instruments measured at FVTPL, equity instruments
+designated as at FVTOCI and derivative financial assets, are not subject to ECL assessment.
+Measurement of ECL
+ECL is a probability-weighted amount that is determined with the respective risks of default occurring as the weight. Credit
+losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in
+accordance with the contract and the cash flows that the Group expects to receive).
+Annual Report 2021
+the Group's contractual rights to the cash flows from the financial asset expire;
+(i)
+the financial asset has been transferred and the Group transfers substantially all of the risks and rewards of ownership
+of the financial asset; or
+Where the Group has transferred its rights to receive cash flows from an asset or has retained its rights to receive cash
+flows from the asset but assumed the obligation to pay those cash flows to the eventual recipients and meanwhile meet the
+conditions of the transfer of financial assets, and has neither transferred nor retained substantially all the risks and rewards
+of the asset nor transferred control of the asset, the asset is recognised to the extent of the Group's continuing involvement
+in the asset. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower
+of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to
+repay.
+172
+ICBC
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Cash flow hedges
+Cash flow hedges are hedges of the Group's exposure to variability in cash flows that is attributable to a particular risk
+associated with a recognised asset or liability, a highly probable forecast transaction or a component of any such item, and
+could affect profit or loss. For designated and qualifying cash flow hedges, the effective portion of the gain or loss on the
+hedging instrument is initially recognised directly in other comprehensive income. The ineffective portion of the gain or loss
+on the hedging instrument is recognised immediately in profit or loss.
+When the hedged cash flow affects profit or loss, the gain or loss on the hedging instrument recognised directly in other
+comprehensive income is recycled in the corresponding income or expense line of the statement of profit or loss. When
+the hedging relationship ceases to meet the qualifying criteria after taking into account any rebalancing of the hedging
+relationship, including the hedging instrument has expired or has been sold, terminated or exercised, any cumulative gains or
+losses existing in other comprehensive income at that time remains in other comprehensive income until the hedged forecast
+transaction ultimately occurs. When a forecast transaction is no longer expected to occur, the cumulative gain or loss that
+was reported in other comprehensive income is immediately transferred to profit or loss.
+Net investment hedges
+A net investment hedge is a hedge of the currency risk of a net investment in a foreign institution operation.
+Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the
+hedging instrument relating to the effective portion of the hedge is recognised directly in other comprehensive income; the
+gain or loss relating to the ineffective portion is recognised in profit or loss immediately. Gains and losses accumulated in
+other comprehensive income are included in profit or loss when the foreign operation is disposed of as part of the gains or
+losses on the disposal.
+(14) Repurchase and reverse repurchase transactions (including securities borrowing and
+lending)
+Assets sold under agreements to repurchase at a specified future date ("repos") are not derecognised from the statement
+of financial position. The corresponding cash received, including accrued interest, is recognised on the statement of financial
+position as a "repurchase agreement". The difference between the sale and repurchase prices is treated as an interest
+expense and is amortised over the life of the agreement using the effective interest method.
+Conversely, assets purchased under agreements to resell at a specified future date ("reverse repos") are not recognised on
+the statement of financial position. The corresponding cash paid, including accrued interest, is recognised on the statement
+of financial position as a "reverse repurchase agreement".
+According to the policy of classification of financial assets, the reverse repurchase agreements held by the Group were
+divided into different classifications according to the entity's business model for managing the financial instruments and the
+contractual cash flow characteristics of the assets: financial assets measured at amortised cost and financial assets measured
+at FVTPL. The difference between the purchase and resale prices of reverse repurchase agreements measured at amortised
+cost is treated as an interest income and is amortised over the life of the agreement using the effective interest method.
+Securities borrowing and lending transactions are usually collateralised by securities or cash. The transfer of the securities
+to counterparties is only reflected on the statement of financial position if the risks and rewards of ownership are also
+transferred. Cash advanced or received as collateral is recorded as an asset or liability.
+Securities borrowed are not recognised in the statement of financial position, unless they are then sold to third parties, in
+which case the obligation to return the securities is recorded as a financial liability held for trading and measured at fair
+value with any gains or losses included in profit or loss.
+Annual Report 2021
+173
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(15) Insurance contracts
+Insurance contracts classification
+The Group discontinues fair value hedge accounting when the hedging relationship ceases to meet the qualifying criteria
+after taking into account any rebalancing of the hedging relationship, including the hedging instrument has expired or has
+been sold, terminated or exercised. If the hedged items are derecognised, the unamortised adjustment to carrying amount is
+recorded in profit or loss.
+the financial asset has been transferred, although the Group neither transfers nor retains substantially all of the risks
+and rewards of ownership of the financial asset, it does not retain control over the transferred asset.
+When an unrecognised firm commitment is designated as a hedged item, the subsequent cumulative change in fair value of
+the firm commitment attributable to the hedged risk is recognised as an asset or liability with a corresponding gain or loss
+recognised in profit or loss. The changes in fair value of the hedging instrument are also recognised in profit or loss.
+Fair value hedges are hedges of the Group's exposure to changes in fair value of a recognised asset or liability or an
+unrecognised firm commitment, or an identified portion of such an asset, liability or unrecognised firm commitment, that
+is attributable to a particular risk and could affect the profit or loss or other comprehensive income. Among them, the
+circumstances affecting other comprehensive income are limited to the hedging for the risk exposure from fair value change
+of non-trading equity investment designated as at FVTOCI. For fair value hedges, the carrying amount of the hedged item
+not already measured at fair value is adjusted for the gain or loss attributable to the risk being hedged and is taken to profit
+or loss or other comprehensive income. The gains or losses for hedging instrument re-measured at fair value are taken to
+profit or loss or other comprehensive income.
+Securitisation
+As part of its operational activities, the Group securitises credit assets. When a securitisation of financial assets does not
+qualify for derecognition, the relevant financial assets are not derecognised, and the consideration paid by third parties are
+recorded as a financial liability; when the securitisation of financial assets partially qualifies for derecognition, the Group
+continues to recognise the transferred assets to the extent of its continuing involvement, and derecognises the remaining
+portion. The carrying amount of the transferred assets is apportioned between the derecognised portion and the retained
+portion based on their relative fair values, and the difference between the carrying amount of the derecognised portion and
+the total consideration paid for the derecognised portion is recorded in profit or loss.
+Sales of assets on condition of repurchase
+The derecognition of financial assets sold on condition of repurchase is determined by the economic substance of the
+transaction. If a financial asset is sold under an agreement to repurchase the same or substantially the same asset at a
+fixed price or at the sale price plus a reasonable return, the Group will not derecognise the asset. If a financial asset is
+sold together with an option to repurchase the financial asset at its fair value at the time of repurchase, the Group will
+derecognise the financial asset.
+Derecognition of financial liabilities
+The Group derecognises a financial liability (or part of it) only when its contractual obligation (or part of it) is extinguished.
+(13) Derivatives and hedge accounting
+Derivatives
+Derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered
+into and are subsequently re-measured at fair value. Derivatives are carried as assets when the fair value is positive and as
+liabilities when the fair value is negative.
+When the hedged item in a fair value hedge is measured at amortised cost, any hedge adjustment to its carrying amount is
+amortised to profit or loss. The amortisation is based on a recalculated effective interest rate at the date when amortisation
+begins.
+Annual Report 2021
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+If the host contract included in the hybrid contract is a financial asset, the embedded derivative is no longer split from the
+main contract of the financial asset, and the hybrid financial instrument as a whole is related to the classification of the
+financial asset provision. If the host contract included in the hybrid contract is not a financial asset, when the embedded
+derivative's economic characteristics and risks are not closely related to those of the hybrid contract, those separate
+instruments with the same terms as the embedded derivative would meet the definition of a derivative, and the hybrid
+instrument is not carried at FVTPL, derivatives embedded in other financial instruments should be split from the hybrid
+contract and treated as separate derivatives. These embedded derivatives are measured at fair value with the changes in fair
+value recognised in profit or loss.
+Any gains or losses arising from changes in fair value on derivatives that do not qualify for hedge accounting are taken
+directly to profit or loss.
+For less complex derivative products, the fair values are principally determined by valuation models which are commonly used
+by market participants. Inputs to valuation models are determined from observable market data wherever possible, including
+foreign exchange spot and forward rates and interest rate yield curves. For more complex derivative products, the fair values
+are mainly determined by quoted prices from dealers.
+Hedge accounting
+At the inception of a hedging relationship, the Group formally designates the hedging instruments and the hedged items,
+and documents the hedging relationship to which the Group wishes to apply hedge accounting and the risk management
+objective and strategy for undertaking the hedge. The documentation includes identification of the hedging instrument, the
+hedged item or transaction, the nature of the risk being hedged and how the entity will assess the hedging instrument's
+effectiveness in offsetting the exposure to changes in the hedged item's fair value or cash flows attributable to the hedged
+risk. Such hedges are expected to meet the hedge effectiveness in achieving offsetting changes in fair value or cash
+flows and are assessed on an on-going basis to analyse the sources of hedge ineffectiveness which are expected to affect
+the hedging relationship in remaining hedging period. If a hedging relationship ceases to meet the hedge effectiveness
+requirement relating to the hedge ratio, but the risk management objective for that designated hedging relationship remains
+the same, the Group would rebalance the hedging relationship.
+Certain derivative transactions, while providing effective economic hedges under the Group's risk management positions,
+do not qualify for hedge accounting and are therefore treated as derivatives held for trading with fair value gains or losses
+recognised in profit or loss.
+Fair value hedges
+171
+(9) Presentation of financial instruments
+188
+ICBC
+Held at the year end
+In November 2021, Mr. Qu Qiang ceased to act as External Supervisor of the Bank due to change of job assignments.
+690,680
+646,765
+(i)
+Includes interest income on reverse repurchase agreements.
+(ii) Includes interest expense on due to central banks and repurchase agreements.
+The above interest income and expense are related to financial instruments which are not measured at fair value through
+profit or loss.
+184
+ICBC
+7.
+NET FEE AND COMMISSION INCOME
+(i)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+2021
+2020
+Settlement, clearing business and cash management
+41,270
+39,101
+Personal wealth management and private banking services (i)
+Investment banking business
+30,001
+29,630
+22,416
+21,460
+Bank card business
+Net interest income
+16,679
+(445,756)
+(30,106)
+436,520
+353,733
+318,272
+10,430
+11,615
+Financial investments
+262,827
+243,545
+Due from central banks
+42,027
+42,022
+Due from banks and other financial institutions (i)
+25,228
+40,547
+1,162,218
+1,092,521
+Interest expense on:
+Due to customers
+(397,625)
+(364,173)
+Due to banks and other financial institutions (ii)
+(44,387)
+(51,477)
+Debt securities issued and certificates of deposit
+(29,526)
+(471,538)
+18,623
+Corporate wealth management services (i)
+15,165
+6,781
+5,964
+2,370
+(6,938)
+(196)
+3,196
+8,955
+2,222
+The above amounts mainly include gains and losses arising from the buying and selling of, the interest income and expense
+on, and the changes in fair value of financial assets and liabilities held for trading.
+9. NET GAINS ON FINANCIAL INVESTMENTS
+2021
+2020
+Dividend income from equity investments designated as at FVTOCI, including:
+Derecognised during the year
+3,388
+2,355
+291
+133
+3,097
+2,222
+Gains on financial instruments measured at FVTPL, net, including:
+10,739
+7,402
+Net losses on financial instruments designated as at FVTPL
+(17,674)
+(8,859)
+2020
+2021
+Equity investments
+Derivatives and other
+15,554
+Guarantee and commitment business
+9,756
+10,101
+Asset custody business (i)
+Trust and agency services (i)
+Other
+Fee and commission income
+8,738
+7,545
+1,808
+1,617
+467,973
+2,894
+148,727
+146,668
+Fee and commission expense
+(15,703)
+(15,453)
+133,024
+131,215
+Net fee and commission income
+Included in personal wealth management and private banking services, corporate wealth management services, asset
+custody business and trust and agency services above is an amount of RMB20,999 million (2020: RMB16,584 million)
+with respect to trust and other fiduciary activities for 2021.
+8.
+NET TRADING INCOME
+Debt securities
+3,037
+Net gains on disposal of financial instruments measured at FVTOCI, net
+766,407
+Discounted bills
+(ii)
+the customer simultaneously receives and consumes the benefits provided by the Group's performance as the
+Group performs;
+the customer controls the service provided by the Group in the course of performance; or
+the Group does not provide service with an alternative use to the Group, and the Group has an enforceable right
+to payment for performance completed to date.
+In other cases, the Group recognises revenue at a point in time at which a customer obtains control of the promised
+services.
+Dividend income
+Dividend income is recognised when the Group's right to receive payment is established, it is probable that the related
+economic benefits will flow to the Group and the related income can be reliably measured.
+(30) Employee benefits
+Employee benefits refer to all forms of consideration and other related expenditure given by the Group in exchange for
+services rendered by employees. The benefits payable are recognised as liabilities during the period in which the employees
+have rendered services to the Group. If the effect of discounting the benefits payable which are payable after one year from
+the end of the reporting period is significant, the Group will present them at their present value.
+180
+ICBC
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Short-term employee benefits
+Employee wages or salaries, bonuses, social security contributions such as medical insurance, work injury insurance,
+maternity insurance and housing fund, measured at the amount incurred or at the applicable benchmarks and rates, are
+recognised as a liability as the employee provides services, with a corresponding charge to profit or loss or included in the
+cost of assets where appropriate.
+All eligible employees outside Chinese mainland participate in local defined contribution schemes. The Group contributes to
+these defined contribution schemes based on the requirements of the local regulatory bodies and charge to profit or loss or
+included in the cost of assets where appropriate.
+Post-employment benefits-defined contribution plans
+Pursuant to the relevant laws and regulations of the PRC, the Group participates in a defined contribution basic pension
+insurance and unemployment insurance in the social insurance system established and managed by government
+organisations. The Group makes contributions to basic pension insurance and unemployment insurance plans based on
+the applicable benchmarks and rates stipulated by the government. Basic pension insurance and unemployment insurance
+contributions are recognised as liabilities with a corresponding charge to profit or loss or included in the cost of assets where
+appropriate as the related services are rendered by the employees.
+In addition, employees in Chinese mainland also participate in a defined contribution retirement benefit plan established
+by the Group (the "Annuity Plan"). The Group and its employees are required to contribute a certain percentage of the
+employees' previous year basic salaries to the Annuity Plan. The Group pays a fixed contribution into the Annuity Plan and
+has no obligation to pay further contributions if the Annuity Plan does not hold sufficient assets to pay all employee benefits.
+The contribution is charged to profit or loss when it is incurred.
+Termination benefits
+Termination benefits are payable as a result of either the Group's decision to terminate an employee's employment before
+the due date of labor contract or an employee's decision to accept an offer of benefits in exchange for the termination of
+employment. The Group recognises termination benefits in profit or loss at the earlier of:
+when the Group can no longer withdraw an offer of those benefits;
+when the Group has a specific, formal restructure plan involving payment of termination benefits, and the plan has
+started or informed each affected party about the influence of the plan, therefore each party formed reasonable
+expectations.
+Early retirement benefits
+According to the Bank's policy on early retirement benefits, certain employees are entitled to take leave of absence and
+in return receive a certain level of staff salaries and related benefits from the Bank. The salaries and benefit payments are
+made from the date of early retirement to the normal retirement date. Differences arising from changes in assumptions and
+estimates of the present value of the liabilities are recognised in profit or loss.
+(i) The Group recognises income over time by measuring the progress towards the complete satisfaction of a
+performance obligation, if one of the following criteria is met:
+(31) Income tax
+The Group earns fee and commission income from a diverse range of services it provides to its customers. The fee and
+commission income recognised by the Group reflects the amount of consideration to which the Group expects to be entitled
+in exchange for transferring promised services to customers, and income is recognised when its performance obligation in
+contracts is satisfied.
+purchased or originated financial assets that are not credit-impaired but have subsequently become credit-impaired,
+whose interest income is calculated by applying the effective interest rate to their amortised cost (i.e. net of the
+expected credit loss provision). If, in a subsequent period, the financial assets quality improve so that they are no
+longer credit-impaired and the improvement in credit quality is related objectively to a certain event occurring after the
+application of the above-mentioned rules, then the interest income is calculated by applying the effective interest rate
+to their gross carrying amount.
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(25) Contingent liabilities
+A contingent liability is a possible obligation that arises from past events and whose existence will only be confirmed by
+the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Group. It
+can also be a present obligation arising from past events that is not recognised because it is not probable that an outflow
+of economic resources will be required or the amount of obligation cannot be measured reliably. Contingent liabilities are
+disclosed in the notes to the financial statements. When a change in the probability of an outflow occurs so that outflow is
+probable and can be reliably estimated, it will then be recognised as a provision.
+(26) Convertible instruments
+Convertible instruments issued by the Group that can be converted to equity shares, where the number of shares to be
+issued and the value of consideration to be received at that time do not vary, are accounted for as compound financial
+instruments containing both liability and equity components.
+The initial carrying amount of a compound financial instrument is allocated to its equity and liability components. The
+amount recognised in equity is the difference between the fair value of the instrument as a whole and the separately
+determined fair value of the liability component (including the value of any embedded derivatives other than the equity
+component). Transaction costs that relate to the issue of a compound financial instrument are allocated to the liability and
+equity components in proportion to the allocation of proceeds.
+Subsequent to initial recognition, the liability component is measured at amortised cost using the effective interest method,
+unless it is designated upon recognition at FVTPL. The equity component is not re-measured.
+If the convertible instrument is converted, the liability component, together with the equity component, are transferred
+to equity. If the convertible instrument is redeemed, the consideration paid and transaction fees for the redemption are
+allocated to the liability and equity components. The method used to allocate the consideration and transaction costs is
+the same as that used for issuance. After allocating the consideration and transaction costs, the difference between the
+allocated and carrying amounts is charged to profit and loss if it relates to the liability component or directly recognised in
+equity if it relates to the equity component.
+(27) Preference shares and perpetual bonds
+At initial recognition, the Group classifies the preference shares, perpetual bonds issued or their components as financial
+liabilities or equity instruments based on their contractual terms and their economic substance after considering the
+definition of financial liabilities and equity instruments. Preference shares and perpetual bonds issued containing both equity
+and liability components are accounted for using the accounting policy for convertible instruments containing an equity
+component.
+Preference shares and perpetual bonds issued that should be classified as equity instruments are recognised in equity based
+on the actual amount received. Any distribution of dividends or interests during the instrument's duration is treated as profit
+appropriation. When the preference shares and perpetual bonds are redeemed according to the contractual terms, the
+redeemed amount is charged to equity.
+(28) Cash and cash equivalents
+Cash and cash equivalents refer to monetary assets, which are short-term, highly liquid, readily convertible into known
+amounts of cash and subject to an insignificant risk of changes in value. Cash and cash equivalents comprise cash,
+unrestricted balances with central banks, amounts due from banks and other financial institutions and reverse repurchase
+agreements with original maturity of less than three months.
+Annual Report 2021
+179
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(29) Revenue recognition
+Interest income
+For all financial instruments measured at amortised cost and interest-generating financial instruments classified as financial
+assets measured at FVTOCI, interest income is recorded at the effective interest rate, which is the rate that exactly discounts
+estimated future cash receipts or payments through the expected life of the financial instrument, where appropriate, to the
+gross carrying amount of the financial asset, or the amortised cost of financial liability. The calculation takes into account all
+contractual terms of the financial instrument (for example, prepayment options) and includes any fees or incremental costs
+that are directly attributable to the instrument and are an integral part of the effective interest rate, but not expected credit
+losses.
+Interest income is calculated by applying the effective interest rate to the gross carrying amount of financial assets and is
+recognised as interest income, except for:
+(i)
+(ii)
+purchased or originated credit-impaired financial assets, whose interest income is calculated, since initial recognition,
+by applying the credit adjusted effective interest rate to their amortised cost; and
+Fee and commission income
+Income tax comprises current and deferred tax. Income tax is recognised in the statement of profit or loss except that it
+relates to items recognised directly in equity, in which case it is recognised in equity.
+Current tax
+Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from
+or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or
+substantively enacted by the end of each reporting period.
+Measurement of the ECL allowance
+The measurement of the ECL allowance for financial assets measured at amortised cost and FVTOCI and with exposure
+arising from loan commitments and financial guarantee contracts, is an area that requires the use of complex models and
+significant assumptions about future economic conditions and credit behavior (the likelihood of customers defaulting and
+the resulting losses). Refer to Note 49(a) credit risk for the explanation of the inputs, assumptions and estimation techniques
+used in measuring ECL.
+Impairment of goodwill
+The Group assesses whether goodwill is impaired at least on an annual basis and when circumstances indicate that the
+carrying value may be impaired. The Group allocates the goodwill to the CGU or group of CGUS and makes an estimate
+of the expected future cash flows from the CGU or group of CGUS and also to choose a suitable discount rate in order to
+calculate the present value of those cash flows.
+Income tax
+Determining income tax provisions requires the Group to estimate the future tax treatment of certain transactions. The
+Group evaluates tax implications of transactions in accordance with prevailing tax regulations and makes tax provisions
+accordingly. In addition, deferred tax assets are recognised to the extent that it is probable that future taxable profit will be
+available against which the deductible temporary differences can be utilised. This requires significant judgement on the tax
+treatments of certain transactions and also significant assessment on the probability that adequate future taxable profits will
+be available for the deferred tax assets to be recovered.
+Fair value of financial instruments
+If the market for a financial instrument is not active, the Group determines the fair value by using valuation technique,
+including using recent arm's length market transactions between knowledgeable and willing parties, if available, reference to
+the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing
+models. Valuation technique makes maximum use of observable market input. However, where observable market inputs are
+not available, management makes estimates on such unobservable market inputs.
+Determination of control over investees
+Management applies its judgement to determine whether the control indicators set out in Note 4(2) indicate that the Group
+controls securitisation vehicles, wealth management products, investment funds, trust plans, asset management plans and
+asset-backed securities.
+Annual Report 2021
+183
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Securitisation vehicles
+Certain securitisation vehicles sponsored by the Group under its securitisation programme are run according to
+predetermined criteria at the initial set up of the vehicles. In addition, the Group is exposed to variability of returns from the
+vehicles through holding interests in the vehicles and the day-to-day servicing of the underlying assets in the vehicles which
+is carried out by the Group under a servicing contract. Key decisions are usually required only when underlying assets go into
+default. Therefore, in considering whether it has control, the Group considers whether it can use its power to influence these
+vehicles' returns.
+Wealth management products, investment funds, trust plans, asset management plans and
+asset-backed securities
+The Group acts as manager or investor in a number of wealth management products, investment funds, trust plans, asset
+management plans and assets-backed securities. When assessing whether the Group controls such a structured entity, the
+Group would determine whether it exercises the decision-making rights as a principal or an agent and usually focuses on the
+assessment of the aggregate economic interests of the Group in the entity (comprising any carried interests and expected
+management fees) and the decision-making authority of the entity. The Group would also determine whether another entity
+with decision-making rights is acting as an agent for it.
+6. NET INTEREST INCOME
+2021
+2020
+Interest income on:
+Loans and advances to customers:
+Corporate loans and advances
+Personal loans
+In the process of applying the Group's accounting policies, management is required to make judgements, estimates and
+assumptions of the effects of uncertain future events on the financial statements. The most significant use of judgements,
+estimates and assumptions concerning the uncertainty of the future at the end of the reporting period that have a significant
+risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are
+described below.
+SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES
+5.
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Annual Report 2021
+181
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Deferred tax
+Deferred tax is provided using the balance sheet liability method on temporary differences at the end of the reporting period
+between the tax bases of assets and liabilities and their carrying amounts.
+Deferred tax liabilities are recognised for all taxable temporary differences, except:
+(i)
+where the taxable temporary difference arises from the initial recognition of goodwill;
+(ii)
+where the taxable temporary difference arises from the initial recognition of assets and liabilities in a transaction that
+is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable
+income (or deductible expenses).
+832,136
+In respect of taxable temporary differences associated with investments in subsidiaries, associates and joint ventures,
+deferred tax liabilities are recognised except where the timing of the reversal of the temporary differences can be controlled
+and it is probable that the temporary differences will not be reversed in the foreseeable future.
+(i)
+(ii)
+transaction is not a business combination;
+at the time of the transaction, it affects neither the accounting profit nor taxable income (or deductible expenses).
+In respect of deductible temporary differences associated with investments in subsidiaries, associates and joint ventures,
+deferred tax assets are recognised only to the extent that it is probable that the temporary differences will be reversed in the
+foreseeable future and taxable profit will be available against which the temporary differences can be utilised.
+Deferred tax assets and deferred tax liabilities are measured at the tax rates that are expected to apply to the period when
+the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively
+enacted by the end of the reporting period, and reflect the corresponding tax effect.
+The carrying amount of deferred tax assets is reviewed at the end of the reporting period and reduced to the extent that
+it is no longer probable that sufficient taxable income will be available to allow all or part of the deferred tax asset to be
+utilised. When it is virtually probable that sufficient taxable income will be available, the reduced amount can be reversed
+accordingly.
+Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets
+against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
+(32) Dividends
+Dividends are recognised as a liability and deducted from equity when they are approved by the Bank's shareholders in
+general meetings and declared. Interim dividends are deducted from equity when they are approved and declared, and
+no longer at the discretion of the Bank. A dividend for the year that is approved after the end of the reporting period is
+disclosed as an event after the reporting period.
+182
+ICBC
+Notes to the Consolidated Financial Statements
+Deferred tax assets are recognised for all deductible temporary differences, carry forward of unused tax credits and unused
+tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary
+differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except that deferred tax assets
+are not recognised if the temporary difference arises from the initial recognition of assets and liabilities in a transaction and
+that:
+2,084
+In February 2021, Ms. Mei Yingchun ceased to act as Non-executive Director of the Bank due to expiration of her term
+of office.
+Other
+Yang Siu Shun
+Shen Si
+Nout Wellink
+Independent Non-executive Director
+Independent Non-executive Director
+Independent Non-executive Director
+Independent Non-executive Director
+Fred Zuliu Hu
+Independent Non-executive Director
+Zhang Wei
+Shareholder Supervisor
+939
+278
+Huang Li
+Employee Supervisor
+222222
+520
+520
+470
+470
+470
+470
+470
+470
+410
+Anthony Francis Neoh
+Non-executive Director
+Non-executive Director
+Dong Yang (vi)
+197
+811
+Huang Liangbo (ii)
+Chairman of the Board of Supervisors
+310
+100
+410
+Zheng Guoyu (iii)
+2,389
+Vice President
+186
+65
+410
+251
+Executive Director, Senior Executive
+Vice President, Chief Risk Officer
+557
+194
+351
+751
+Lu Yongzhen
+Feng Weidong
+Cao Liqun
+Non-executive Director
+Non-executive Director
+Non-executive Director
+Chen Yifang (v)
+Wang Jingwu (iv)
+614
+1,217
+50
+187
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+In accordance with applicable national regulations, the incentive income for 2018-2020 was paid to the Chairman, the
+President and Senior Executive Vice President of the Bank in 2021 based on their specific tenure and performance appraisal
+results. Accordingly, the Bank accrued RMB16 thousand, RMB9 thousand and RMB7 thousand for Mr. Chen Siqing, Mr. Liao
+Lin and Mr. Wang Jingwu respectively, as additional contribution to the Annuity Plan in 2021.
+Fees of Mr. Huang Li and Mr. Wu Xiangjiang are their allowances obtained as Employee Supervisors of the Bank, excluding
+their remuneration with the Bank in accordance with the employee remuneration system.
+As at the approval date of these financial statements, changes of directors and supervisors of the Bank were as follows:
+(i)
+(ii)
+(iv)
+(v)
+(vi)
+(vii)
+On 25 February 2021, the Board of Directors elected Mr. Liao Lin as Vice Chairman of the Bank and appointed Mr. Liao
+Lin as President of the Bank, and his qualification was approved by CBIRC in March 2021. Mr. Liao Lin ceased to act as
+Chief Risk Officer of the Bank after he took office as President.
+At the First Extraordinary General Meeting of 2021 held on 29 July 2021, Mr. Huang Liangbo was elected as
+Shareholder Supervisor of the Bank, and his term of office as Shareholder Supervisor of the Bank started from the day
+of approval by the Shareholders' General Meeting, and his term of office as Chairman of the Board of Supervisors of
+the Bank took effect simultaneously.
+On 24 September 2021, the Board of Directors appointed Mr. Zheng Guoyu as Senior Executive Vice President of the
+Bank. At the Second Extraordinary General Meeting of 2021 held on 25 November 2021, Mr. Zheng Guoyu was elected
+as Executive Director of the Bank, and his qualification was approved by CBIRC in December 2021.
+At the First Extraordinary General Meeting of 2021 held on 29 July 2021, Mr. Wang Jingwu was elected as Executive
+Director of the Bank, and his qualification was approved by CBIRC in September 2021. On 24 September 2021, the
+Board of Directors appointed Mr. Wang Jingwu as Chief Risk Officer of the Bank.
+At the Annual General Meeting for the Year 2020 held on 21 June 2021, Ms. Chen Yifang was elected as Non-
+executive director of the Bank, and her qualification was approved by CBIRC in August 2021.
+At the Second Extraordinary General Meeting of 2021 held on 25 November 2021, Mr. Dong Yang was elected as Non-
+executive Director of the Bank, and his qualification was approved by CBIRC in January 2022.
+At the Second Extraordinary General Meeting of 2021 held on 25 November 2021, Mr. Zhang Jie was elected as
+External Supervisor of the Bank, and his term of office as External Supervisor of the Bank started from the day of
+approval by the Shareholders' General Meeting.
+(viii) In March 2021, Mr. Yang Guozhong ceased to act as Shareholder Supervisor and Chairman of the Board of Supervisors
+of the Bank due to change of job assignments.
+(ix)
+(x)
+(xi)
+In January 2022, Mr. Zheng Fuqing ceased to act as Non-executive Director of the Bank due to expiration of his term of
+office.
+Annual Report 2021
+The total compensation packages for the Chairman of the Board of Directors, President, Chairman of the Board of
+Supervisors, Executive Directors, and Shareholder Representative Supervisors of the Bank have not been finalised in
+accordance with the regulations of the PRC relevant authorities. The remuneration not yet accrued is not expected to have a
+significant impact on the Group's 2021 consolidated financial statements. The total compensation packages will be further
+disclosed when determined by the relevant authorities.
+Note: Since January 2015, the remuneration to the Chairman of the Board of Directors, the President, the Chairman of the Board
+of Supervisors and other executives of the Bank has followed the State's policies relating to the remuneration reform on
+executives of central enterprises.
+7,024
+Wu Xiangjiang
+Employee Supervisor
+50
+50
+Shen Bingxi
+External Supervisor
+Zhang Jie (vii)
+External Supervisor
+24
+24
+Yang Guozhong (viii)
+Former Chairman of the Board of Supervisors
+50
+104
+137
+Zheng Fuqing (ix)
+Former Non-executive Director
+Mei Yingchun (x)
+Qu Qiang (xi)
+Former Non-executive Director
+Former External Supervisor
+Total
+3,329
+1,068
+163
+163
+2,627
+33
+Vice Chairman, Executive Director, President
+Executive Director, Senior Executive
+820
+Staff costs:
+2021
+2020
+Salaries and bonuses
+90,250
+82,416
+Staff benefits
+30,800
+29,915
+Post-employment benefits
+defined contribution plans (i)
+18,313
+14,241
+139,363
+126,572
+Property and equipment expenses:
+Liao Lin (i)
+14,596
+13,689
+Depreciation charge for right-of-use assets and other leasing expense
+8,173
+8,348
+Repairs and maintenance charges
+4,106
+4,086
+11. OPERATING EXPENSES
+Utility expenses
+8,044
+(242)
+229
+(317)
+16,440
+11,829
+Annual Report 2021
+185
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+10. OTHER OPERATING INCOME, NET
+2021
+2020
+Net premium income
+46,024
+47,573
+Operating cost of insurance business
+(49,706)
+(53,366)
+Lease income
+13,016
+12,756
+Net gains on disposal of property and equipment, repossessed assets and other
+Other
+2,182
+1,323
+265
+11,781
+1,947
+Depreciation charge for property and equipment
+28,822
+annuities, and
+Remuneration
+additional
+Total
+paid
+medical
+remuneration
+Name
+1,837
+before tax
+insurances
+Fees
+before tax
+RMB'000
+RMB'000
+RMB'000
+RMB'000
+(1)
+(2)
+(3)
+(4)=(1)+(2)+(3)
+Chen Siqing
+Chairman, Executive Director
+619
+201
+allowance,
+housing
+Position
+to social
+27,960
+Amortisation
+insurance,
+2,607
+Other administrative expenses (ii)
+Taxes and surcharges
+26,539
+25,686
+9,318
+8,524
+Other
+29,060
+15,236
+3,125
+206,585
+236,227
+the employer
+Details of the directors' and supervisors' remuneration before tax, as disclosed pursuant to the Rules Governing the Listing of
+Securities on The Stock Exchange of Hong Kong Limited and the Hong Kong Companies Ordinance, are as follows:
+12. DIRECTORS' AND SUPERVISORS' REMUNERATION
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+Year ended 31 December 2021
+Contribution by
+186
+(ii) The principal auditor's remuneration of RMB183 million for the year (2020: RMB224 million) is included in other
+administrative expenses.
+The defined contribution plans mainly include pension insurance, unemployment insurance and the Annuity Plan.
+(i)
+ICBC
+Annual Report 2021
+Such resilience is built upon our solid measures for
+safeguarding the bottom line of risk management
+and continuously enhancing our ability to defuse
+risks. The Bank placed equal emphasis on development
+and security, adopted a holistic risk management
+approach to people, money and policy system, and
+upgraded the enterprise risk management system through
+"active prevention, smart control and comprehensive
+management". We strengthened the implementation
+of policies and fully implemented new credit review
+regulations across domestic institutions. We carried out
+special actions to improve asset quality, systematically
+inspected and managed risks in key areas and related to
+key customers, and redoubled efforts in the collection and
+disposal of NPLs. The overdue rate, overdue amount and
+price scissors between overdue loans and NPLs continued
+to decline. We overdid the task of reducing existing wealth
+management products. We stayed vigilant against market
+risk and took effective measures to forestall emerging risks
+such as climate risk and model risk. We comprehensively
+improved the effectiveness of internal control and case
+prevention, and achieved notable results in customer
+complaint management.
+15
+President's Statement
+In 2021, in the face of the complicated and severe external
+environment, the Bank conscientiously implemented the
+decisions and arrangements of the CPC Central Committee
+and the State Council, acted upon the "48-character"
+guideline, stepped foot in the new development stage,
+applied the new development philosophy in full, in
+the right way and in all fields, and actively served and
+integrated into the new development paradigm. We
+coordinated COVID-19 containment efforts and financial
+work, went to all lengths to accomplish the "Three
+Tasks" of financial work, and achieved stable and even
+more remarkable business performance. We made great
+headway in our new development plan and took solid
+steps toward high-quality development.
+In 2021, the Group recorded RMB860.9 billion in
+operating income, representing an increase of 7.6%
+from the previous year. Profit before provision was
+RMB627.5 billion, representing an increase of 5.5% from
+the previous year. Net profit reached RMB350.2 billion,
+representing an increase of 10.2% from the previous year.
+Return on total average assets and return on weighted
+average equity were both higher than the previous year.
+Capital adequacy ratio stood at 18.02%. NPL ratio was
+1.42%, down 0.16 percentage points from the end of
+the previous year. Allowance to NPLs reached 205.84%.
+These indicators fully reflect the balance and coordination
+between value creation, market standing, risk management
+and capital constraints and demonstrate the Bank's strong
+momentum for high-quality development and extraordinary
+development resilience.
+Such resilience is firmly rooted in our commitments
+to fulfilling our original aspirations and serving
+the real economy. According to the cross-cyclical and
+counter-cyclical policy adjustments, the Bank earnestly
+implemented the requirements for "ensuring stability on
+six key fronts" and "maintaining security in six key areas".
+We arranged the aggregate volume, pace and structure of
+investment and financing in a well-coordinated way, and
+continuously improved the adaptability, competitiveness
+and inclusiveness of financial services, so as to better meet
+the diversified financial needs of the real economy and
+the general public. The Bank registered new domestic
+RMB loans of RMB2.12 trillion, RMB243.3 billion more
+than the increment last year, hitting the new high for the
+same period. Bond investments grew by RMB763.2 billion,
+with the balance remaining at the first position among
+peers. We took precise and targeted actions to support
+the key fields and weak areas of the real economy. Loans
+to manufacturing increased by RMB319.7 billion, with the
+medium to long-term loans to manufacturing growing
+by RMB242.7 billion. We improved financial service
+modes for sci-tech enterprises, and the balance of loans
+to key state-supported high-tech fields surpassed RMB1
+trillion. We actively pushed forward green and low-carbon
+transformation and witnessed the total amount of green
+loans exceeding RMB2.4 trillion, indicating a growth rate
+of 34.4%. We made vigorous efforts in the development
+of digital inclusive finance and supply chain finance,
+and scaled up small and micro loans. We launched the
+"ICBC Xingnongtong" brand, to expand the breadth and
+depth of our financial support for the endeavor of rural
+revitalization. Our inclusive loans grew by over 50% in the
+year.
+16
+Annual Report 2021
+President's Statement
+Such resilience stems from our thorough efforts
+to advance transformation and innovation and
+continuously inspire business vitality and growth
+momentum. In alignment with the 14th Five-Year Plan,
+the Bank launched its new development plan, followed
+through on the pattern of "bringing out our strengths to
+make up for our weaknesses and laying a solid foundation
+and base" and pushed forward the implementation of
+the No.1 Personal Bank Strategy, the Preferred Bank
+Strategy for Foreign Exchange Business, the Strategy for
+Sharpening Competitive Edge in Key Regions and the
+Urban-Rural Collaborative Development Strategy. We
+worked hard to cultivate and shape new advantages for
+high-quality development, advanced the transformation of
+asset management, private banking, bank card and other
+businesses in an orderly manner, and comprehensively
+improved our service quality. We accelerated digital
+transformation and deepened the fusion of technology
+and business. We vigorously developed service scenarios in
+smart government, smart social security, smart education
+and other fields with a focus to help improve people's
+livelihoods, further strengthened the interactions among
+government, business and consumption ("GBC"), and
+achieved substantial results in fundamental work such as
+fund taking and "net making and patching" program.
+With more than 700 million personal customers and
+9.69 million corporate customers, the Bank has a well-
+coordinated customer ecosystem encompassing large,
+medium, small and micro customers, laying a solid
+foundation for high-quality development.
+2022 is of great significance in the development progress
+of the Party and the country, as the Communist Party
+of China will hold its 20th National Congress. The Bank
+will continue to fully implement the decisions and
+arrangements of the CPC Central Committee and the
+State Council, and stick to the general principle of
+pursuing progress while ensuring stability. In light of the
+"48-character" guideline, we, with the trust and support
+of all shareholders and people from all walks of society,
+will concentrate on our core responsibilities and businesses,
+place a greater emphasis on integrity and innovation, focus
+on "action, implementation and promotion", and adhere
+to the pattern of "bringing out our strengths to make
+up for our weaknesses and laying a solid foundation and
+base". We will strive for mid-term breakthroughs in the
+implementation of our new plan, step up efforts to build
+a world-class modern financial institution, and stick to the
+path of financial development with Chinese characteristics.
+We will welcome the convening of the Party's 20th National
+Congress with concrete actions aimed at serving the
+new development paradigm and promoting high-quality
+development.
+President: Liao Lin
+30 March 2022
+17
+Chairman of the Board of Supervisors Huang Liangbo
+18
+ICBC
+Liao Lin
+ICBC
+FinTech input
+FinTech personnel
+to operating income
+199.32
+1.52
+175.76
+1.55
+154.07
+Allowance to total loans ratio (9)
+2.92
+2.85
+2.86
+2.68
+2.39
+Capital adequacy (%)
+Core tier 1 capital adequacy ratio (10)
+13.31
+13.18
+13.20
+12.98
+12.77
+Tier 1 capital adequacy ratio (10)
+14.94
+14.28
+14.27
+180.68
+13.45
+205.84
+1.43
+1.64
+1.75
+1.81
+1.89
+Ratio of net fee and commission income
+15.45
+16.40
+16.83
+17.15
+20.67
+2,127,491
+Cost-to-income ratio(6)
+26.36
+24.76
+25.79
+25.71
+26.45
+Asset quality (%)
+Non-performing loans ("NPLs") ratio (7)
+1.42
+1.58
+Allowance to NPLs (8)
+1.68
+13.27
+18.02
+Quarterly Financial Data
+(In RMB millions)
+Operating income
+Q1
+214,120
+2021
+Q2
+Q3
+Q4
+Q1
+2020
+Q2
+Q3
+Q4
+Net profit attributable to equity
+holders of the parent
+company
+212,286 217,489 216,985
+85,730 77,743 88,348 96,517
+206,187
+196,159 197,901 199,828
+84,494
+64,296 79,885 87,231
+Net cash flows from operating
+activities
+612,669 (235,123) 588,904 (605,568) 1,907,890 (34,157) 146,709 (462,826)
+Annual Report 2021
+(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.
+Capital adequacy ratio (10)
+(8) Calculated by dividing allowance for impairment losses on loans by total balance of NPLs.
+(6) Calculated by dividing operating expenses (less taxes and surcharges) by operating income.
+16.88
+16.77
+15.39
+15.14
+Total equity to total assets ratio
+9.31
+8.73
+8.94
+8.47
+8.21
+Risk-weighted assets to total assets
+61.67
+60.35
+61.83
+62.06
+60.96
+ratio
+Notes: (1) Calculated by dividing net profit by the average balance of total assets at the beginning and at the 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) Calculated 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 of risk-weighted assets at the beginning and at the end of the
+reporting period.
+(7) Calculated by dividing the balance of NPLs by total balance of loans and advances to customers.
+Return on risk-weighted assets(5)
+2.22
+2.36
+20,124,139
+18,616,886
+17,190,992
+15,902,801
+Per share data (in RMB yuan)
+Net asset value per share(3)
+8.15
+7.48
+6.93
+6.30
+5.73
+Basic earnings per share
+0.95
+0.86
+0.86
+0.82
+0.79
+Diluted earnings per share
+0.95
+0.86
+0.86
+21,690,349
+0.82
+Risk-weighted assets (2)
+2,644,885
+356,407
+356,407
+356,407
+356,407
+356,407
+Net core tier 1 capital (2)
+2,886,378
+2,653,002
+2,457,274
+2,232,033
+2,030,108
+Net tier 1 capital(2)
+3,241,364
+2,872,792
+2,657,523
+2,312,143
+2,110,060
+Net capital base(2)
+3,909,669
+3,396,186
+3,121,479
+2,406,920
+0.79
+Credit rating
+S&P(4)
+1.02
+1.00
+1.08
+1.11
+1.14
+Return on weighted average equity(2)
+12.15
+11.95
+13.05
+13.79
+14.35
+Net interest spread (3)
+1.92
+1.97
+2.12
+2.20
+2.10
+Net interest margin (4)
+2.11
+2.15
+2.30
+Return on average total assets (1)
+Profitability (%)
+2017
+2018
+Moody's (4)
+A
+A
+A
+A
+A
+A1
+A1
+A1
+A1
+11
+A1
+(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) The rating results are in the form of "long-term foreign currency deposits rating”.
+10
+ICBC
+Financial Indicators
+Financial Highlights
+2021
+2020
+2019
+Notes: (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.
+Chairman's Statement
+12
+Chairman Chen Siqing
+298,723
+313,361
+317,685
+350,216
+Net profit
+364,641
+372,413
+391,789
+392,126
+424,899
+Profit before taxation
+361,691
+369,324
+389,269
+390,822
+422,030
+Operating profit
+127,769
+161,594
+178,957
+202,668
+287,451
+202,623
+Net profit attributable to equity holders
+of the parent company
+315,906
+Total assets
+(in RMB millions)
+As at the end of reporting period
+2017
+2018
+2019
+2020
+2021
+Financial Data (continued)
+Financial Highlights
+9
+Annual Report 2021
+770,864
+529,911
+481,240
+1,557,616
+360,882
+Net cash flows from operating activities
+286,049
+297,676
+312,224
+348,338
+35,171,383
+Impairment losses on assets
+194,203
+2019
+2020
+2021
+Financial Data
+(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 in Renminbi.)
+2.628
+2019
+USD 245.4 billion
+35 thousand
+259.87
+Up 21.68
+2.660
+2020
+2.933
+2021
+RMB 2.933
+Unit: RMB yuan
+Dividend per 10 shares
+(pre-tax)
+Financial Highlights
+[011]
+Unit: RMB100 millions
+Market value
+2018
+186,194
+2017
+Net interest income
+207,776
+206,585
+236,227
+Operating expenses
+675,654
+725,121
+776,002
+800,075
+860,880
+Operating income
+139,625
+124,394
+130,573
+131,215
+133,024
+Net fee and commission income
+522,078
+593,677
+632,217
+646,765
+690,680
+Annual operating results (in RMB millions)
+Share capital
+Total loans and advances to customers
+33,345,058
+18,624,308
+2,330,001
+2,676,186
+2,893,502
+3,257,755
+Equity attributable to equity holders
+institutions
+1,706,549
+1,814,495
+2,266,573
+2,784,259
+2,921,029
+Due to banks and other financial
+222,461
+236,797
+267,941
+361,994
+Accrued interest
+288,554
+268,914
+234,852
+261,389
+President
+President's Statement
+30 March 2022
+Chairman: Chen Siqing
+ICBC
+Chairman's Statement
+The year 2021 was a milestone in the history of the
+Communist Party of China ("CPC" or the "Party") and
+the country as we celebrated the 100th anniversary of the
+founding of the Party. ICBC adhered to Xi Jinping Thought
+on Socialism with Chinese Characteristics for a New Era,
+earnestly implemented the decisions and arrangements
+of the CPC Central Committee and the State Council,
+stayed committed to the general principle of pursuing
+progress while ensuring stability, and continued to uphold
+the "48-character" guideline. Based on the reality of the
+new development stage, we applied the new development
+philosophy, actively served and integrated into the new
+development paradigm, responded to COVID-19 and
+pursued financial security and business development in
+a well-coordinated way, and contributed to high-quality
+economic development while striving to pursue our own
+high-quality development. As a result, we delivered a solid
+performance to celebrate the Party's centenary.
+We kept in mind national priorities and did our best
+to serve high-quality development. In line with the
+new development paradigm and the requirements for the
+implementation of the 14th Five-Year Plan, we implemented
+the guidance of macro policies, and promoted high-
+level coordination of investment and financing in terms
+of quality, scale, pace and price. We continued to refine
+financial services in key areas and weak links, and led
+the market in terms of credit scale in manufacturing,
+technological innovation and green sectors, with the
+growth of inclusive finance loans topping the rankings. To
+promote common prosperity, we set up special agencies
+to serve rural revitalization, launched the brand "ICBC
+Xingnongtong", and delivered helpful assistance to micro,
+small and medium-sized enterprises and industries in
+need. We strengthened global service synergy, and actively
+promoted opening-up at a higher level and the high-quality
+development of the Belt and Road Initiative. We ensured
+financial support for epidemic prevention and control,
+energy supply, flood control and relief, and vigorously built
+up our image as a responsible large bank.
+We adhered to the bottom-line thinking and spared
+no effort to promote high-quality risk control. We
+continued to plan ahead, see the big from the small,
+remedy in time and draw inferences. By doing so we
+improved the enterprise risk management system, and
+helped maintain economic and financial stability. We
+planned in a well-coordinated way, and managed with
+clear accounting. We improved the risk identification,
+early-warning and risk mitigation mechanism across the
+entire chain, and coordinated efforts to guard against
+and control traditional and emerging risks, risks on and
+off the balance sheet, domestic and overseas, online and
+offline. We tightened control over all kinds of credit risks,
+and increased efforts to improve the asset quality, with
+continuous improvement in the operating capacity of
+risk assets, and simultaneous decline in the NPL ratio and
+overdue loan ratio. We stayed alert to the volatility of the
+financial market, adhered to prudent trading strategies,
+strictly controlled the risk exposure, and kept the market
+risk at an overall stable level.
+We advanced reform more vigorously and strived
+to achieve high-quality development. We focused
+on improving the governance system and capacity, and
+deepened the organic integration of Party leadership
+and corporate governance. We pushed forward the
+arrangements of "bringing out our strengths to make
+up for our weaknesses and laying a solid foundation
+and base." Headways were made in our implementation
+of key strategies such as the No.1 Personal Bank, the
+Preferred Bank for Foreign Exchange Business, Sharpening
+Competitive Edge in Key Regions and Urban-Rural
+Collaborative Development. We accelerated the bank-
+wide digital transformation. Our intelligent banking
+ecosystem ECOS project was awarded PBC's special
+award of the "FinTech Development Awards", and our
+data management capability was given the highest rating
+by the Ministry of Industry and Information Technology.
+Last year, we delivered financial services for the China
+International Import Expo, the China Import and Export
+Fair, the China International Fair for Trade in Services and
+the China International Consumer Products Expo. We
+initiated the China-Europe Business Council, and promoted
+the development of Belt and Road Bankers Roundtable
+("BRBR"). We played an active part in international
+governance of green finance and launched the Beijing
+Initiative on Climate-Friendly Banks.
+We made every effort to promote the head start of the
+new development plan. We acted swiftly and efficiently
+to implement key strategies and tasks, with notable
+achievements made. We performed well in major operating
+indicators and we became "stronger, better and bigger."
+The foundation for strong development was
+further consolidated. Our capital strength was further
+strengthened. The capital adequacy ratio exceeded 18%,
+one of the highest among the large banks in the world.
+The balance of provisions surpassed RMB600.0 billion, and
+the allowance to NPLs rebounded to over 200% for the
+first time in the past seven years. For the ninth consecutive
+year, the Bank ranked first among Global 2000 by Forbes
+and the Top 1000 World Banks by The Banker.
+Annual Report 2021
+13
+250,349
+Chairman's Statement
+Our scale merits were further augmented. Our assets
+exceeded RMB35 trillion, operating income topped
+RMB860.0 billion, and net profit surpassed RMB350.0
+billion, consolidating our lead in the banking sector. We
+maintained the first place in assets, capital, deposits and
+loans among banks in the world, and the first place in
+market value and total dividends among Chinese banks.
+On behalf of the Board of Directors, I would like to express
+my sincere gratitude to people from all walks of society for
+their care and support to ICBC, to the Board of Supervisors
+for its effective supervision, and to the Management and
+all employees for their dedication and contribution. Based
+on our good business performance, the Board of Directors
+proposed a dividend of RMB2.933 per ten ordinary shares
+for 2021, which will be submitted to the Shareholders'
+General Meeting for deliberation.
+From our practices in the past year, we have deepened
+our understanding on improving our financial work. We
+will always follow the guidance of Party building, firmly
+carry out financial work in the right direction, adhere to
+the people-centered principle, and fulfill our responsibility
+of serving the real economy. We will foster and uphold
+the correct view on business performance, unswervingly
+follow the qualitative development path of quality-first,
+efficiency-prioritized and innovation-driven development,
+and strive to become stronger, better and bigger. We will
+stick to the bottom-line thinking, take the initiative to
+guard against and defuse risks, and promote the realization
+of the dynamic balance between high-quality development
+and high-level security. We shall actively shoulder our
+due responsibilities, address difficulties on development
+through reform, and stick to the path of financial
+development with Chinese characteristics.
+At present, as the world is experiencing a pandemic and
+changes unseen in the past century, a fast-changing global
+political and economic landscape, and chain reactions
+arising from geopolitical conflicts, the global finance,
+energy, transportation and supply chain stability are faced
+with great shocks, and the global banks are facing an ever-
+complex external environment and new challenges in their
+operations. However, the fundamentals of the Chinese
+economy remain unchanged, and they will maintain long-
+term growth and demonstrate strong resilience and vitality.
+As China moves faster to construct a new development
+pattern and implements macro policies in full, the Chinese
+economy is being stimulated on all fronts for steady, sound
+and high-quality growth. The domestic banking sector is
+facing a favorable environment for development.
+In 2022, we will continue to follow the guidance of Xi
+Jinping Thought on Socialism with Chinese Characteristics
+for a New Era, make economic stability our top priority and
+pursue progress while ensuring stability, thus contributing
+to the goal of achieving a stable performance of the
+macro economy. We will further improve the quality and
+efficiency of services for the real economy, and make
+more progress in achieving high-quality development. We
+will remedy problems identified by the central inspection
+team, and in the course push forward the implementation
+of various reforms to produce real effects. We will work
+hard to build the Bank into a world-class modern financial
+enterprise with Chinese characteristics and set the stage
+for the Party's 20th National Congress with concrete actions
+and remarkable achievements.
+th
+の
+情
+14
+ICBC
+The quality of business performance was further
+improved. Our operating efficiency continued to improve,
+with the return on assets ("ROA") and return on equity
+("ROE") reaching 1.02% and 12.15% respectively.
+Through meticulous management and internal potential
+tapping, the change in our net interest margin ("NIM")
+was better than most peers, and the cost-to-income ratio
+was 26.36%, lower than most large banks in the world.
+20,667,245
+Other deposits
+9,436,418
+351,126
+364,437
+421,874
+406,296
+527,758
+Discounted bills
+4,945,458
+5,636,574
+6,383,624
+7,115,279
+7,944,781
+Personal loans
+8,936,864
+9,418,894
+9,955,821
+11,102,733
+12,194,706
+Corporate loans
+15,419,905 14,233,448
+16,761,319
+30,109,436 27,699,540 26,087,043
+Allowance for impairment losses
+8,568,917
+603,983
+478,730
+10,477,744
+11,660,536
+12,497,968
+Personal deposits
+10,705,465
+11,481,141
+12,028,262
+12,944,860
+13,331,463
+531,161
+Corporate deposits
+8,591,139 7,647,117
+30,435,543 27,417,433
+25,134,726 22,977,655
+26,441,774
+Due to customers
+31,896,125
+Total liabilities
+9,257,760
+Investment
+on loans (1)
+340,482
+413,177
+6,754,692 5,756,704
+25,354,657 23,945,987
+21,408,934 19,562,936
+of the parent company
+58,190
+Zhang Wei
+Name
+2,805
+115
+37
+37
+37
+115
+115
+Former Independent Non-executive Director
+Former Employee Supervisor
+Hui Ping (viii)
+Sheila Colleen Bair (vii)
+Former Non-executive Director
+Former Non-executive Director
+Mei Yingchun (vi)
+Dong Shi
+Ye Donghai
+77
+77
+13
+37
+1,988
+3,264
+878
+8,935
+(vi)
+(v)
+(iv)
+(iii)
+(ii)
+(i)
+As at the approval date of the consolidated financial statements for the year ended 31 December 2020, changes of directors
+and supervisors of the Bank were as follows:
+(In RMB millions, unless otherwise stated)
+27
+For the year ended 31 December 2021
+189
+Annual Report 2021
+Fees of Mr. Huang Li, Mr. Wu Xiangjiang and Mr. Hui Ping were their allowances obtained as Employee Supervisors of the
+Bank, excluding their remuneration with the Bank in accordance with the employee remuneration system.
+Pursuant to the PRC relevant regulations, a portion of the discretionary bonus payments for the Chairman of the Board
+of Directors, the President, the Chairman of the Board of Supervisors, Executive Directors and other senior management
+members are deferred based on the future performance.
+The remuneration before tax payable to Directors and Supervisors for 2020 set out in the table above represents the total
+amount of annual remuneration for each of these individuals, which include the amounts disclosed in the 2020 Annual
+Report.
+Note: Since January 2015, the remuneration to the Chairman of the Board of Directors, the President, the Chairman of the Board
+of Supervisors and other executives of the Bank has followed the State's policies relating to the remuneration reform on
+executives of central enterprises.
+8,420
+515
+Notes to the Consolidated Financial Statements
+27
+410
+1,011
+Qu Qiang
+13
+13
+13
+Employee Supervisor
+Wu Xiangjiang (iii)
+50
+50
+External Supervisor
+50
+Huang Li
+1,584
+515
+2,099
+234
+1,285
+580
+Shareholder Supervisor
+Employee Supervisor
+(vii)
+250
+250
+159
+498
+354
+1,011
+1,011
+159
+498
+354
+250
+Former Non-executive Director
+Former Chairman of the Board of Supervisors
+of Directors, Executive Director, President
+Former Vice Chairman of the Board
+Hu Hao
+Yang Guozhong (v)
+Gu shu (iv)
+External Supervisor
+Shen Bingxi
+Former Executive Director, Senior Executive
+Vice President
+At the Annual General Meeting of the Bank for the Year 2019 held on 12 June 2020, Mr. Liao Lin was elected as
+Executive Director of the Bank, and his qualification was approved by CBIRC in July 2020. On 25 February 2021,
+the Board of Directors of the Bank elected Mr. Liao Lin as Vice Chairman of the Bank and appointed Mr. Liao Lin as
+President of the Bank, and his qualification was approved by CBIRC in March 2021. Mr. Liao Lin ceased to act as Chief
+Risk Officer of the Bank after he took office as President.
+At the Annual General Meeting of the Bank for the Year 2019 held on 12 June 2020, Mr. Shen Si was re-elected as
+Independent Non-executive Director of the Bank, and his new term of office started from the day of approval at the
+Annual General Meeting.
+410
+Fees Remuneration
+bonuses
+insurances
+RMB'000
+RMB'000
+RMB'000
+RMB'000
+before tax
+RMB'000
+remuneration
+payment
+RMB'000
+RMB'000
+(1)
+(2)
+(3)
+(4) (5)=(1)+(2)+(3)+(4)
+(6)
+(7)=(5)-(6)
+paid before tax
+354
+deferred
+medical
+Position
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Year ended 31 December 2020
+Contribution
+by the
+employer to
+social
+emoluments
+insurance,
+allowance,
+annuities and
+Actual
+additional
+Total
+Of which:
+amount of
+Discretionary
+housing
+410
+498
+1,011
+520
+Yang Siu Shun
+Independent Non-executive Director
+470
+470
+470
+Shen Si (ii)
+Independent Non-executive Director
+520
+470
+470
+Nout Wellink
+Independent Non-executive Director
+470
+470
+470
+Fred Zuliu Hu
+Independent Non-executive Director
+470
+159
+520
+Anthony Francis Neoh
+1,011
+319
+448
+154
+921
+921
+Chen Siging
+Liao Lin (i)
+Independent Non-executive Director
+Lu Yongzhen
+Vice Chairman, Executive Director, President
+Non-executive Director
+Zheng Fuqing
+Non-executive Director
+Feng Weidong
+Non-executive Director
+Cao Liqun
+Non-executive Director
+Chairman, Executive Director
+1,011
+(308,298)
+1
+Less: Allowance for impairment losses
+523,404
+346,806
+4,294
+2,347
+82,807
+(349)
+90,511
+2,728
+10,508
+Other financial institutions operating in Chinese mainland
+433,575
+243,440
+Banks operating in Chinese mainland
+Banks and other financial institutions operating outside Chinese mainland
+Accrued interest
+(491)
+346,457
+522,913
+Less: Allowance for impairment losses
+559,720
+481,435
+3,279
+3,364
+262,922
+192,030
+Banks and other financial institutions operating outside Chinese mainland
+Accrued interest
+204,585
+188,935
+Other financial institutions operating in Chinese mainland
+88,934
+97,106
+Banks operating in Chinese mainland
+Placements with banks and other financial institutions:
+Deposits with banks and other financial institutions:
+2020
+2021
+31 December
+2021
+31 December
+Fiscal deposits and other
+Surplus reserves (ii)
+Mandatory reserves (i)
+Balances with central banks
+Cash on hand
+19. CASH AND BALANCES WITH CENTRAL BANKS
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+193
+Annual Report 2021
+0.86
+0.95
+31 December
+(742)
+2020
+64,833
+31 December
+20. DUE FROM BANKS AND OTHER FINANCIAL INSTITUTIONS
+Surplus reserves with the PBOC include funds for the purpose of cash settlement and other kinds of unrestricted
+deposits.
+The Group is required to place mandatory reserve deposits and other restricted deposits with the PBOC and certain
+central banks of overseas countries or regions where it has operations. They are not available for use in the Group's
+daily operations. As at 31 December 2021, the mandatory deposit reserve ratios of the domestic branches of the Bank
+in respect of customer deposits denominated in RMB and foreign currencies were 10% (31 December 2020: 11%) and
+9% (31 December 2020: 5%) respectively. The mandatory reserve funds placed by domestic subsidiaries of the Group
+are determined by the PBOC. The amounts of mandatory reserve deposits placed with the central banks of those
+countries or regions outside Chinese mainland are determined by local jurisdictions.
+1,402
+3,098,438
+Accrued interest
+(!!)
+(i)
+3,537,795
+1,501
+249,836
+619,968
+338,551
+236,211
+2,601,657
+2,459,402
+62,872
+480,693
+827,150
+(736)
+558,984
+1,081,897
+Over one
+Over three
+Fair values
+Notional amounts with remaining maturity of
+31 December 2021
+Included in the above derivative financial instruments, those designated as hedging instruments in cash flow hedges are set
+out below:
+The Group's cash flow hedges consist of interest rate swap contracts, currency swap contracts, equity and other derivatives
+that are used to protect against exposures to variability of future cash flows.
+(1) Cash flow hedges
+(140,973)
+134,155
+8,784,445
+(71,337)
+76,140
+8,100,994
+(24,166)
+Within
+15,893
+three
+year but
+8,352
+127
+5,283
+2,878
+64
+Interest rate swap contracts
+Liabilities
+Assets
+Total
+five years
+five years
+one year
+months
+Over
+within
+months
+but within
+0.86
+804,987
+15,478
+Liabilities
+Fair values
+Notional
+Fair values
+Assets
+amounts
+Notional
+31 December 2020
+31 December 2021
+The notional amounts and fair values of derivative financial instruments held by the Group are set out below:
+A derivative is a financial instrument, the value of which changes in response to the changes in a specified interest rate,
+financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or credit index, or
+other similar variables. The Group uses derivative financial instruments including forwards, swaps, options and futures.
+The notional amount of a derivative represents the underlying amount of the specific financial instruments mentioned above.
+It indicates the volume of business transacted by the Group but does not reflect the risk.
+21. DERIVATIVE FINANCIAL INSTRUMENTS
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+ICBC
+194
+amounts
+(14,302)
+Assets
+Exchange rate contracts
+975,169
+Commodity derivatives and other
+(25,248)
+23,002
+2,199,849
+(15,457)
+15,706
+2,018,010
+Interest rate contracts
+(91,559)
+95,260
+5,779,609
+(41,578)
+44,956
+5,107,815
+Liabilities
+0.95
+356,407
+356,407
+ICBC
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+13. FIVE HIGHEST PAID INDIVIDUALS
+The five highest paid individuals of the Group are employees of the Bank's subsidiaries. Their emoluments were determined
+based on the prevailing market rates in the respective countries/regions where the subsidiaries are operating. None of them
+are directors, supervisors or key management personnel of the Bank whose emoluments are disclosed in notes 12 and 47(g)
+to the consolidated financial statements. Details of the emoluments in respect of the five highest paid individuals are as
+follows:
+2021
+RMB'000
+2020
+RMB'000
+Salaries and allowances
+Discretionary bonuses
+Other
+15,998
+15,889
+66,495
+39,256
+349
+8,772
+82,842
+190
+63,917
+In 2021, no emolument was paid by the Group to any of the Directors or Supervisors as an inducement to join or upon
+joining the Group or as a compensation for loss of office (2020: Nil).
+The Non-executive Directors of the Bank who were recommended by Huijin received emoluments from Huijin in respect of
+their services during the year.
+(3,704)
+(8,494)
+78,145
+83,177
+2,347
+1,950
+1,776
+1,768
+74,022
+At the special meeting of the first session of employee representative assembly of the Bank held on 15 September
+2020, Mr. Wu Xiangjiang was elected as Employee Supervisor of the Bank, and his term of office started from the day
+of approval by the employee representative assembly.
+In December 2020, Mr. Gu Shu ceased to act as Vice Chairman, Executive Director and President of the Bank due to
+change of job assignments.
+At the First Extraordinary General Meeting of 2020 held on 8 January 2020, Mr. Yang Guozhong was elected as
+Shareholder Supervisor of the Bank, and his new term of office started from the day of approval by the Shareholders'
+General Meeting, and his term of office as Chairman of the Board of Supervisors of the Bank took effect
+simultaneously. In March 2021, Mr. Yang Guozhong ceased to act as Shareholder Supervisor and Chairman of the
+Board of Supervisors of the Bank due to change of job assignments.
+In February 2021, Ms. Mei Yingchun ceased to act as Non-executive Director of the Bank due to expiration of her term
+of office.
+In March 2020, Ms. Sheila Colleen Bair ceased to act as Independent Non-executive Director of the Bank due to
+expiration of her term of office.
+(viii) In September 2020, Mr. Hui Ping ceased to act as Employee Supervisor of the Bank due to his age.
+In 2021, there was no arrangement under which a Director or a Supervisor of the Bank waived or agreed to waive any
+remuneration (2020: Nil).
+74,683
+The number of these individuals whose emoluments fell within the following bands is set out below:
+2021
+34,356
+202,623
+30,838
+202,668
+Annual Report 2021
+191
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+15. INCOME TAX EXPENSE
+(a) Income tax expense
+Current income tax expense:
+Chinese mainland
+Hong Kong SAR and Macau SAR
+Other overseas jurisdictions
+Deferred income tax expense
+171,830
+Number of employees
+2020
+Other
+2020
+RMB10,500,001 Yuan to RMB11,000,000 Yuan
+RMB11,000,001 Yuan to RMB11,500,000 Yuan
+RMB11,500,001 Yuan to RMB12,000,000 Yuan
+RMB13,500,001 Yuan to RMB14,000,000 Yuan
+RMB14,000,001 Yuan to RMB14,500,000 Yuan
+RMB14,500,001 Yuan to RMB15,000,000 Yuan
+RMB23,500,001 Yuan to RMB24,000,000 Yuan
+RMB25,000,001 Yuan to RMB25,500,000 Yuan
+1
+2
+79,459
+1
+1
+1
+1
+1
+1
+5
+5
+In 2021, no emoluments were paid by the Group to any of these non-director and non-supervisor individuals as an
+inducement to join or upon joining the Group (2020: Nil).
+14. IMPAIRMENT LOSSES ON ASSETS
+Loans and advances to customers (note 23)
+2021
+168,267
+Currency swap contracts
+74,441
+PRC statutory income tax rate is 25%. Taxes on profits assessable elsewhere have been calculated at the applicable rates
+of tax prevailing in the countries/regions in which the Group operates in. The Group has reconciled income tax expense
+applicable to profit before taxation at the PRC statutory income tax rate to actual income tax expense for the Group as
+follows:
+Final dividend on ordinary shares for 2021: RMB0.2933 per share
+(2020: RMBO.2660 per share)
+(not recognised as at 31 December):
+Dividends on ordinary shares proposed for approval
+2020
+2021
+8,839
+9,607
+3,560
+3,560
+Interests on perpetual bonds
+5,279
+6,047
+Dividends or interests declared and paid to other equity instrument holders:
+Dividends on preference shares
+93,664
+94,804
+104,534
+Final dividend on ordinary shares for 2020: RMB0.2660 per share
+(2019: RMBO.2628 per share)
+94,804
+2021
+Basic and diluted earnings per share were calculated using the profit for the year attributable to ordinary shareholders of the
+parent company divided by the weighted average number of ordinary shares in issue.
+Diluted earnings per share (RMB yuan)
+Basic earnings per share (RMB yuan)
+Weighted average number of ordinary shares in issue (in million shares)
+307,067
+338,731
+Profit for the year attributable to ordinary shareholders of the parent company
+Shares:
+(8,839)
+(9,607)
+holders of the parent company
+315,906
+348,338
+Profit for the year attributable to equity holders of the parent company
+Less: Profit for the year attributable to other equity instrument
+Earnings:
+2020
+18. EARNINGS PER SHARE
+(b) Reconciliation between income tax and accounting profit
+2020
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(51,427)
+Effects of non-taxable income (ii)
+20,478
+22,319
+(1,521)
+(827)
+Effects of different applicable rates of tax prevailing in other countries/regions
+Effects of non-deductible expenses (i)
+98,032
+106,225
+Tax at the PRC statutory income tax rate
+392,126
+424,899
+Profit before taxation
+2020
+2021
+(42,803)
+2021
+Effects of profits attributable to associates and joint ventures
+(326)
+Dividends on ordinary shares declared and paid:
+17. DIVIDENDS
+ICBC
+192
+The consolidated profit attributable to equity holders of the parent company for the year ended 31 December 2021 includes
+a profit of RMB323,100 million (2020: RMB304,267 million) which has been dealt with in the financial statements of the
+Bank (Note 51).
+16. PROFIT ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT COMPANY
+(ii) The non-taxable income mainly represents interest income arising from the PRC government bonds and municipal
+debts.
+The non-deductible expenses mainly represent non-deductible impairment provision and write-offs.
+(i)
+74,441
+74,683
+Income tax expense
+581
+(890)
+Effects of other
+(717)
+2021
+47,204
+1,391
+Assets
+58,827
+(5,062)
+6,908
+Liabilities
+(237)
+5,435
+1,462
+13,289
+(10,028)
+166
+68
+77,551
+(15,090)
+8,536
+(169)
+Liabilities
+(i)
+Assets
+Carrying amount of hedged items
+955
+(6,954)
+(1)
+59
+66,164
+(7,293)
+(1)
+56
+(i)
+Debt securities are included in financial investments measured at FVTOCI, financial investments measured at amortised
+cost and debt securities issued.
+(ii)
+Other hedged items are included in due from banks and other financial institutions, repurchase agreements and
+customer deposits.
+Debt securities (i)
+Loans and advances to customers
+Other (ii)
+31 December 2020
+Accumulated adjustments
+to the fair value of hedged items
+(21)
+(ii)
+Other hedged items are included in reverse repurchase agreements, due to banks and other financial institutions,
+repurchase agreements and certificates of deposit.
+51,690
+39,839
+(5) Counterparty credit risk-weighted assets of derivative financial instruments
+The credit risk-weighted assets in respect of the above derivatives of the Group as at the end of the reporting period are as
+follows:
+Counterparty credit default risk-weighted assets
+Including: Non-netting settled credit default risk-weighted assets
+Netting settled credit default risk-weighted assets
+Credit value adjustment risk-weighted assets
+Central counterparties credit risk-weighted assets
+31 December
+31 December
+2021
+2020
+126,653
+147,747
+120,128
+37,045
+Debt securities are included in financial investments measured at FVTOCI, financial investments measured at amortised
+cost and debt securities issued.
+Net amounts
+Net amounts
+25,442
+31,014
+(3) Net investment hedges
+The Group's consolidated statement of financial position is affected by exchange differences between the functional
+currency of the Bank and functional currencies of its branches and subsidiaries. The Group hedges such exchange exposures
+under certain circumstances. Hedging is undertaken by using customer deposits taken in the same currencies as the
+functional currencies of related branches and subsidiaries which are accounted for as hedges of certain net investments in
+foreign operations.
+As at 31 December 2021, an accumulated net gains from the hedging instrument of RMB1,650 million was recognised in
+other comprehensive income (31 December 2020: accumulated net gains of RMB889 million). As at 31 December 2021,
+there was no ineffectiveness in profit or loss that arises from the net investment hedges (31 December 2020: Nil).
+Annual Report 2021
+197
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(4) Offsetting of financial instruments
+In accordance with the principle of offsetting financial instruments, the Group offsets certain derivative financial assets and
+derivative financial liabilities, and presents the net amounts after offsetting in the financial statements.
+Derivative financial assets
+Derivative financial liabilities
+31 December 2021
+Gross amounts
+36,220
+41,792
+31 December 2020
+Gross amounts
+48,896
+76,703
+2,441
+Liabilities
+2020
+2,207
+(2,258)
+(51)
+(1,486)
+1,437
+(49)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Included in the above derivative financial instruments, those designated as hedging instruments in fair value hedges are
+interest rate swaps and the details are set out below:
+Notional amounts with remaining maturity of
+Fair values
+31 December 2021
+31 December 2020
+Over three
+Over one
+Within
+2021
+months
+ICBC
+Hedged risk relating to the hedged items
+(19)
+(4,524)
+119,466
+(323,077)
+(146)
+(4,637)
+(i)
+Debt securities are included in financial investments measured at FVTOCI, financial investments measured at amortised
+cost and debt securities issued.
+Other hedged items are included in due from banks and other financial institutions, other assets, due to banks and
+other financial institutions, certificates of deposit, customer deposits and other liabilities.
+There was no ineffectiveness recognised in profit or loss that arises from the cash flow hedges in 2021 (2020: Nil).
+(2) Fair value hedges
+Fair value hedges are used by the Group to protect against changes in fair value of financial assets and financial liabilities
+due to movements in market interest rates. The Group mainly used interest rate swaps as hedging instruments to hedge the
+interest risk of financial assets and financial liabilities.
+The changes in fair value of the hedging instruments and net gains or losses arising from the hedged risk relating to the
+hedged items are set out below:
+Gain/(loss) arising from fair value hedges, net:
+Hedging instruments
+196
+(3)
+three
+year but
+within
+277
+(3,119)
+Details of the Group's hedged risk exposures in fair value hedges are set out below:
+Debt securities (i)
+Loans and advances to customers
+Other (ii)
+31 December 2021
+Accumulated adjustments
+Carrying amount of hedged items
+to the fair value of hedged items
+Assets
+Liabilities
+Assets
+62,768
+(339)
+21
+97,444
+but within
+24,984
+31,267
+Over
+months
+one year
+five years
+five years
+Total
+4,623
+7,187
+41,439
+21,108
+74,357
+Assets
+627
+Liabilities
+(1,071)
+3,074
+38,119
+43,049
+6,525
+67,911
+9,974
+93,691
+71,728
+(546)
+(1,243)
+(15)
+61
+4,150
+150,480
+68
+242
+3
+25,087
+239
+8,730
+1,211
+Liabilities
+Assets
+Total
+33
+175,635
+4,211
+(1,804)
+comprehensive
+Accumulated
+effect on other
+Hedging instruments
+Effect on other
+comprehensive
+income during
+the current year
+Liabilities
+Assets
+Carrying amount of hedged items
+31 December 2021
+Loans and advances to customers
+Other (ii)
+Debt securities (i)
+Details of the Group's hedged risk exposures in cash flow hedges and the corresponding effect on equity are as follows:
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+195
+Annual Report 2021
+five years
+Over
+within
+five years
+one year
+15,909
+77,779
+3
+131
+6,723
+47,170
+51,651
+(96)
+5,679
+4
+49
+1,243
+4,383
+Equity and other derivatives
+(948)
+(146)
+8
+436
+91,644
+105,675
+income
+444
+31 December 2020
+29
+Equity derivatives
+71,490
+Currency swap contracts
+209
+Interest rate swap contracts
+months
+year but
+months
+but within
+three
+Within
+Over one
+Over three
+Fair values
+Notional amounts with remaining maturity of
+(1,190)
+71,044
+19,617
+192
+59
+69
+(128)
+(117)
+505,841
+584,676
+Measured at FVTPL:
+Reverse repurchase agreements-securities
+114,994
+126,192
+Cash advanced as collateral on securities borrowing
+42,661
+28,420
+157,655
+154,612
+398,535
+663,496
+186,189
+2020
+48,366
+1,751
+2,351
+196,315
+198,464
+The credit risk-weighted assets of derivative financial instruments were calculated with reference to Regulation Governing
+Capital of Commercial Banks (Provisional).
+22. REVERSE REPURCHASE AGREEMENTS
+Measured at amortised cost:
+Reverse repurchase agreements-bills
+Reverse repurchase agreements-securities
+Accrued interest
+Less: Allowance for impairment losses
+31 December
+31 December
+2021
+96,863
+409,047
+(35,786)
+739,288
+ICBC
+(ii)
+Debt securities are included in financial investments measured at FVTOCI, financial investments measured at amortised
+cost and debt securities issued.
+(i)
+(4,263)
+374
+(64,319)
+38,352
+(4,416)
+108
+(28,533)
+14,027
+(8)
+74
+4,708
+161
+Other hedged items are included in due from banks and other financial institutions, other assets, due to banks and
+other financial institutions, customer deposits and other liabilities.
+198
+Debt securities (i)
+31 December 2020
+(82)
+(65)
+2,278
+(31)
+(62)
+(14,779)
+58,998
+Loans and advances to customers
+Other (ii)
+income
+income during
+the current year
+Liabilities
+Assets
+Accumulated
+effect on other
+Hedging instruments
+Effect on other
+comprehensive
+Carrying amount of hedged items
+comprehensive
+2020
+(i)
+5,205,346
+Based on master repurchase agreements and related supplementary agreements, the Group offsets certain reverse
+repurchase agreements and repurchase agreements, and presents net asset (or liability) amounts as reverse repurchase
+agreements (or repurchase agreements) in the consolidated financial statements in accordance with the accounting
+policy of offsetting.
+1,704,164
+1,067,060
+1,355,305
+219,291
+229,406
+172,667
+119,453
+1,540,988
+1,803,604
+81,970
+99,440
+1,459,018
+1,704,164
+19,398
+17,343
+509,422
+551,757
+281,215
+310,160
+169,478
+171,130
+479,505
+653,774
+2020
+31 December
+Listed outside Hong Kong SAR
+Unlisted
+Listed in Hong Kong SAR
+Equity investments:
+Unlisted
+1,459,018
+2,656
+2,385
+5,414
+44
+(44)
+― to stage 3
+12
+(12)
+2,468
+240
+22
+222
+Total
+Stage 3
+Stage 2
+Stage 1
+2,206
+― to stage 2
+Listed outside Hong Kong SAR
+to stage 1
+Balance at 1 January 2021
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+203
+Annual Report 2021
+The Group designates certain non-trading equity investments as financial investments measured at FVTOCI. In 2021,
+dividend income from such equity investments was RMB3,388 million (2020: RMB2,355 million). There was RMB291 million
+dividend income from equity investments derecognised in 2021 (2020: RMB133 million). In 2021, the value of equity
+investments disposed of was RMB6,963 million (2020: RMB2,247 million) and the cumulative losses transferred into retained
+earnings from other comprehensive income after disposal was RMB334 million (2020: cumulative gains of RMB221 million).
+Movements of the allowance for impairment loss on financial investments measured at FVTOCI are accounted for in the
+following way. Allowance for impairment losses on financial investments measured at FVTOCI is recognised in other
+comprehensive income without decreasing the carrying amount of financial investments presented in the consolidated
+statement of financial position, and any impairment gain or loss is recognised in the profit or loss.
+1,540,988
+1,803,604
+81,970
+99,440
+71,016
+91,370
+8,569
+Transfer:
+Listed in Hong Kong SAR
+Debt securities:
+Analysed into:
+31,675
+Listed outside Hong Kong SAR
+2,493
+1,783
+Listed in Hong Kong SAR
+Equity investments:
+465,812
+420,283
+432,163
+395,818
+Unlisted
+30,847
+21,164
+Listed outside Hong Kong SAR
+20,122
+2,802
+Listed in Hong Kong SAR
+Debt securities:
+784,483
+623,223
+354,451
+331,097
+70,167
+90,403
+83,231
+81,329
+201,053
+159,365
+1,827
+4,536
+3,301
+Charge for the year
+Unlisted
+71,113
+Equity investments
+Accrued interest
+Corporate entities
+Banks and other financial institutions
+Policy banks
+Governments and central banks
+Debt securities, analysed by type of issuers:
+31 December
+2021
+(b) Financial investments measured at FVTOCI
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+ICBC
+202
+57,288
+784,483
+224,943
+112,194
+220,368
+106,629
+Unlisted
+1,226
+1,521
+Listed outside Hong Kong SAR
+3,349
+4,044
+Listed in Hong Kong SAR
+Funds and other investments:
+93,728
+90,746
+623,223
+585
+322
+1,070
+Other investments:
+Unlisted
+36,094
+38,018
+Accrued interest
+6,830,933
+38,018
+6,265,668
+Market value of listed securities
+179,807
+123,820
+204
+ICBC
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+6,227,650
+Movements of the allowance for impairment losses on financial investments measured at amortised cost are as follows:
+Transfer:
+to stage 1
+Stage 1
+2,234
+Stage 2
+2,718
+402
+(402)
+Stage 3
+121
+Total
+5,073
+to stage 2
+to stage 3
+Charge/(reverse) for the year
+3,008
+(116)
+Balance at 1 January 2021
+2,892
+6,794,839
+6,615,869
+559,808
+528,587
+432,980
+370,300
+61,257
+46,759
+84,598
+78,888
+6,800,427
+6,229,880
+Other investments (iii)
+Accrued interest
+38,341
+122
+40,699
+6,106,393
+38,463
+6,838,890
+Less: Allowance for impairment losses
+(7,957)
+6,830,933
+6,270,741
+(5,073)
+6,265,668
+Analysed into:
+Debt securities:
+Listed in Hong Kong SAR
+31,439
+42,226
+Listed outside Hong Kong SAR
+147,531
+79,031
+Unlisted
+162
+40,861
+188,144
+Other movements
+(3)
+Other movements
+Charge for the year
+― to stage 3
+2
+(2)
+(78)
+78
+― to stage 2
+― to stage 1
+Transfer:
+2,056
+198
+80
+1,778
+Balance at 31 December 2020
+Balance at 1 January 2020
+Stage 3
+Stage 2
+Stage 1
+4,370
+1,341
+355
+2,674
+Balance at 31 December 2021
+(75)
+(13)
+(1)
+(61)
+Other movements
+1,977
+Total
+(5)
+406
+48
+(8)
+Balance at 31 December 2021
+5,639
+2,200
+118
+7,957
+Stage 1
+Stage 2
+Stage 3
+Total
+Balance at 1 January 2020
+2,255
+1,339
+Corporate entities
+18
+Banks and other financial institutions (ii)
+Governments and central banks (i)
+Debt securities, analysed by type of issuers:
+31 December
+2020
+2021
+31 December
+(c) Financial investments measured at amortised cost
+2,468
+240
+22
+2,206
+(60)
+(6)
+(54)
+472
+Policy banks
+143,637
+11,082
+11,192
+Balance at 31 December 2021
+(3,460)
+(2,268)
+(564)
+(628)
+Other movements
+9,020
+9,020
+previously written off
+Recoveries of loans and advances
+168,351
+(100,447)
+(100,447)
+Write-offs and transfer out
+67,614
+269,376
+58,906
+Charge for the year
+38,853
+(35,319)
+(3,534)
+― to stage 3
+(4,200)
+14,056
+(9,856)
+to stage 2
+(2,279)
+(15,581)
+17,860
+530,300
+Total
+41,831
+Stage 3
+217,446
+110,649
+603,764
+(120,317)
+(7)
+Write-offs and transfer out
+171,201
+95,941
+78,244
+(2,984)
+(Reverse)/charge for the year
+58,592
+(53,754)
+(4,838)
+― to stage 3
+(2,398)
+9,311
+223,739
+(6,913)
+(1,495)
+(22,507)
+24,002
+― to stage 1
+Transfer:
+478,498
+184,688
+78,494
+215,316
+Balance at 1 January 2020
+Total
+Stage 3
+Stage 2
+Stage 1
+― to stage 2
+(120,324)
+89,151
+to stage 1
+18,248,422
+20,174,699
+3,091
+42,311
+2,370
+45,707
+Accrued interest
+7,115,279
+173,757
+11,087,741
+10,913,984
+12,181,841
+12,000,191
+181,650
+7,944,781
+31 December
+2020
+2021
+31 December
+Discounted bills
+Personal loans
+Less: Allowance for impairment losses of loans and advances to customers
+― Finance lease
+Measured at amortised cost:
+23.1 Loans and advances to customers by type of measurement:
+23. LOANS AND ADVANCES TO CUSTOMERS
+As part of the reverse repurchase agreements, the Group has received securities that it is allowed to sell or repledge in
+the absence of default by their owners. As at 31 December 2021, the Group had received securities with a fair value
+of approximately RMB143,559 million on such terms (31 December 2020: RMB184,324 million). Of these, securities
+with a fair value of approximately RMB107,698 million had been repledged under repurchase agreements (31
+December 2020: RMB119,984 million). The Group has an obligation to return the securities to its counterparties at the
+maturity of the contract. If the collateral received declines in value, the Group may, in certain circumstances, require
+additional collateral.
+131,182
+236,536
+263,394
+(ii)
+218,583
+31 December 2020
+Net amounts
+Gross amounts
+203,791
+Net amounts
+104,765
+131,623
+Reverse repurchase agreements
+Repurchase agreements
+31 December 2021
+Gross amounts
+116,390
+Corporate loans and advances
+Loans
+223,703
+measured at amortised cost (note 23.2(a))
+(530,300)
+Transfer:
+Balance at 1 January 2021
+Stage 2
+Stage 1
+(a) Movements of the allowance for impairment losses on loans and advances to customers
+measured at amortised cost are as follows:
+23.2 Impairment provision
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+199
+Annual Report 2021
+As at 31 December 2021, the Group's allowance for impairment losses on loans and advances to customers measured at
+FVTOCI was RMB219 million, refer to note 23.2(b) (31 December 2020: RMB861 million).
+3,914
+18,136,328
+3,594
+20,109,200
+(603,764)
+Loans
+414,292
+534,671
+9
+12
+11,078
+403,205
+9,271
+525,388
+Measured at FVTPL:
+Accrued interest
+Discounted bills
+― Loans
+Corporate loans and advances
+Measured at FVTOCI:
+17,718,122
+19,570,935
+Corporate loans and advances
+5,661,784
+Recoveries of loans and advances
+Other movements
+12,670
+73,219
+97,364
+2020
+31 December
+31 December
+2021
+Financial investments designated as at FVTPL
+Equity investments
+Corporate entities
+Banks and other financial institutions
+Policy banks
+Financial investments held for trading
+Debt securities, analysed by type of issuers:
+Governments and central banks
+(a) Financial investments measured at FVTPL
+(In RMB millions, unless otherwise stated)
+14,794
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+Annual Report 2021
+8,591,139
+9,257,760
+6,265,668
+6,830,933
+1,540,988
+1,803,604
+(b)
+784,483
+623,223
+이 회
+2020
+2021
+31 December
+201
+31 December
+58,218
+92,666
+Analysed into:
+Funds and other investments
+Equity investments
+Corporate entities
+Banks and other financial institutions
+Policy banks
+Debt securities, analysed by type of issuers:
+Other financial investments measured at FVTPL
+172,778
+21,791
+154,776
+21,791
+Funds and other investments
+18,002
+56,114
+19
+3,370
+1,755
+12,858
+Banks and other financial institutions
+Policy banks
+Governments and central banks
+Debt securities, analysed by type of issuers:
+257,254
+270,335
+10,497
+9,417
+246,757
+260,918
+102,630
+Corporate entities
+previously written off
+Financial investments measured at amortised cost
+Financial investments measured at FVTPL
+861
+Total
+Stage 3
+650
+211
+Stage 2
+Stage 1
+Balance at 31 December 2021
+Other movements
+Write-offs and transfer out
+Reverse for the year
+to stage 3
+― to stage 2
+to stage 1
+Transfer:
+(13)
+Balance at 1 January 2021
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+ICBC
+200
+530,300
+217,446
+89,151
+223,703
+Balance at 31 December 2020
+(4,052)
+4,977
+4,977
+(2,542)
+(630)
+(880)
+(b) Movements of the allowance for impairment losses on loans and advances to customers
+measured at FVTOCI are as follows:
+Financial investments measured at FVTOCI
+(7)
+(71)
+(551)
+24. FINANCIAL INVESTMENTS
+861
+650
+211
+Balance at 31 December 2020
+(0)
+(0)
+629
+645
+(16)
+Other movements
+(Reverse)/charge for the year
+to stage 3
+_
+191
+to stage 2
+Transfer:
+232
+5
+227
+Balance at 1 January 2020
+Total
+Stage 3
+Stage 2
+Stage 1
+219
+28
+(7)
+(551)
+(84)
+to stage 1
+36,094
+Notes to the Consolidated Financial Statements
+92.84
+Delaware and
+New York, United States
+Toronto, Canada
+Broker dealer and
+margin trading
+Commercial banking
+Industrial and Commercial Bank of China
+Mexico S.A.
+100
+Industrial and Commercial Bank of China
+100
+10
+10
+100
+100
+180
+100
+MXN1,597 million
+MXN1,597 million
+Mexico City, Mexico
+Commercial banking
+Real202 million
+100
+ICBC Peru Bank ("ICBC Peru")
+(Argentina) S.A
+Commercial banking
+Buenos Aires, Argentina
+USD904 million
+CAD218.66 million
+ARS28,415 million
+100
+Industrial and Commercial Bank of China
+(Brasil) S.A.
+Commercial banking
+Sao Paulo, Brazil
+Real202 million
+100
+100
+CAD208 million
+80
+Industrial and Commercial Bank of China
+(USA) NA
+88888
+100
+100
+100
+888888
+USD200 million
+USD1,083 million
+RUB10,810 million
+USD200 million
+USD839 million
+RUB10,810 million
+London, United Kingdom
+London, United Kingdom
+Commercial banking
+Banking
+Moscow, Russia
+Commercial banking
+TRY860 million
+USD425 million
+Istanbul, Turkey
+Commercial banking
+80
+80
+Industrial and Commercial Bank of China
+(Canada)
+USD50.25 million
+USD50 million
+100
+80
+100
+Commercial banking
+Commercial banking
+New York, United States
+Vienna, Austria
+EUR200 million
+USD306 million
+USD369 million
+EUR200 million
+Industrial and Commercial Bank of China
+Financial Services LLC
+ICBC Credit Suisse Asset Management Co., Ltd.*
+80
+80
+Commercial banking
+Commercial banking
+*
+These subsidiaries incorporated in Chinese mainland are all limited liability companies.
+As at 31 December 2021 and 31 December 2020, the Group held 97.98% voting rights of ICBC Thai. Apart from ICBC Thai,
+voting rights of other subsidiaries of the Group are in line with the Group's equity interests.
+The above table lists the principal subsidiaries of the Bank. To give details of other subsidiaries would, in the opinion of the
+management, result in particulars of excessive length.
+There is no subsidiary of the Group which has material non-controlling interests during the reporting period.
+206
+ICBC
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+26. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
+Interests in associates
+Interests in joint ventures
+Share of net assets
+Goodwill
+Less: Allowance for impairment losses
+31 December
+2021
+9,444
+15,039
+32,110
+47,108
+2020
+2021
+Zhejiang, the PRC
+Chongqing, the PRC
+31 December
+41,206
+1,430
+1,210
+61,782
+2020
+39,776
+60,572
+31 December
+31 December
+RMB120 million
+RMB100 million
+RMB200 million
+RMB100 million
+100
+100
+100
+ICBC Financial Asset Investment Co., Ltd.*
+RMB12,505 million
+60
+60
+RMB27,000 million
+ICBC-AXA Assurance Co., Ltd.*
+Lima, Peru
+Beijing, the PRC
+Tianjin, the PRC
+RMB433 million
+RMB11,000 million
+USD120 million
+USD120 million
+RMB200 million
+RMB18,000 million
+100
+ICBC Financial Leasing Co., Ltd.*
+("ICBC Leasing")
+100
+RMB7,980 million
+RMB27,000 million
+("ICBC Investment")
+100
+Chongqing Bishan ICBC Rural Bank Co., Ltd.*
+60
+60
+Zhejiang Pinghu ICBC Rural Bank Co., Ltd.*
+Wealth
+management
+Shanghai, the PRC
+Nanjing, the PRC
+Insurance
+Financial asset
+investment
+Beijing, the PRC
+RMB16,000 million
+RMB16,000 million
+100
+100
+ICBC Wealth Management Co., Ltd.*
+Commercial banking
+Fund management
+Leasing
+62,147
+ICBC Austria Bank GmbH
+ICBC Turkey Bank Anonim Şirketi
+2021
+2020
+2,712
+2,712
+160,571
+144,671
+163,283
+147,383
+Annual Report 2021
+205
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Particulars of the Group's principal subsidiaries as at the end of the reporting period are as follows:
+Nominal value
+of issued share/
+Percentage of equity interest %
+paid-in capital
+Place of
+incorporation/
+registration
+invested
+by the Bank
+HKD54,738 million
+2021
+HKD44,188 million
+100
+100
+2020
+31 December
+2021
+Industrial and Commercial Bank of China
+Name
+31 December
+31 December
+31 December
+Amount
+(Asia) Limited ("ICBC Asia")
+and operations
+Hong Kong SAR, the PRC
+31 December
+25. INVESTMENTS IN SUBSIDIARIES
+127
+3,721
+Transfer:
+― to stage 1
+to stage 2
+― to stage 3
+Charge/(reverse) for the year
+Other movements
+3
+(3
+(19)
+19
+16
+1,572
+(21)
+(209)
+2,234
+Other investments include debt investment plans, asset management plans and trust plans with fixed or determinable
+payments. They will mature from January 2022 to November 2032 and bear interest rates ranging from 4.25% to
+6.60% per annum.
+This includes a special government bond, which is a non-negotiable bond with a nominal value of RMB85,000 million
+(31 December 2020: RMB85,000 million) issued by the Ministry of Finance of the People's Republic of China (the
+"MOF") to the Bank in 1998. The bond will mature in 2028 and bears interest at a fixed rate of 2.25% per annum.
+This includes Huarong bonds of RMB90,309 million (31 December 2020: RMB90,309 million). Huarong bonds are a
+series of long-term bonds issued by China Huarong Asset Management Co., Ltd. ("Huarong") in the year of 2000
+and 2001 to the Bank, with an aggregate amount of RMB312,996 million. The proceeds from the issuance of the
+bonds were used to purchase non-performing loans of the Bank. The bonds are non-negotiable, with a tenure of 10
+years and bear interest at a fixed rate of 2.25% per annum. The MOF provides funding support for the repayment
+of principal and interest of the bonds. In 2010, the Bank received a notice from the MOF that the maturity dates of
+the Huarong bonds were extended for ten years. In 2020, the Bank received a notice from the MOF to adjust the
+interest rate of the Huarong bonds, starting from 1 January 2020. Interest rate would be determined on yearly basis
+with reference to the average level of five-year government bond yield in the previous year. In January 2021, the Bank
+received notice from the MOF that the maturity dates of Huarong bonds were further extended for ten years. As at
+31 December 2021, the Bank had received accumulated early repayments amounting to RMB222,687 million (31
+December 2020: RMB222,687 million).
+(iii)
+(ii)
+(i)
+Balance at 31 December 2020
+Listed investments, at cost
+Unlisted investments, at cost
+5,073
+(235)
+1,587
+(1)
+GE
+(5)
+2,718
+121
+Principal
+activities
+Commercial banking
+100
+00
+100
+10
+KZT8,933 million
+KZT8,933 million
+Almaty, Kazakhstan
+Commercial banking
+(Almaty) Joint Stock Company
+Industrial and Commercial Bank of China
+100
+100
+NZD234 million
+NZD234 million
+Auckland, New Zealand
+Commercial banking
+(New Zealand) Limited ("ICBC New Zealand")
+100
+Bank ICBC (Joint stock company)
+ICBC Standard Bank PLC
+100
+ICBC (London) PLC
+(Europe) S.A.
+Industrial and Commercial Bank of China
+Commercial banking
+EUR437 million
+EUR437 million
+80
+100
+100
+Industrial and Commercial Bank of China
+Luxembourg
+(Thai) Public Company Limited ("ICBC Thai")
+Commercial banking
+Bangkok, Thailand
+Macau SAR, the PRC
+MOP12,064 million
+MOP589 million
+89.33
+89.33
+Industrial and Commercial Bank of China
+Commercial banking
+("ICBC International")
+Hong Kong SAR, the PRC
+HKD5,963 million
+HKD5,963 million
+100
+100
+ICBC International Holdings Limited
+Investment banking
+92.84
+(Macau) Limited ("ICBC Macau")
+98.61
+THB23,711 million
+THB20,132 million
+97.86
+97.86
+Industrial and Commercial Bank of China
+(Malaysia) Berhad
+PT. Bank ICBC Indonesia
+Commercial banking
+Commercial banking
+USD361 million
+MYR833 million
+IDR3,706,100 million
+MYR833 million
+100
+100
+Industrial and Commercial Bank of China
+98.61
+Jakarta, Indonesia
+Kuala Lumpur, Malaysia
+41,554
+100
+(348)
+12,825
+79,885
+169,173
+465,403
+Additions
+1,143
+8,521
+997
+9,212
+10,527
+30,400
+CIP transfer in/(out)
+19,850
+(24,915)
+51
+5,014
+Disposals
+Accumulated depreciation and impairment:
+481,332
+(365)
+81,632
+13,590
+18,216
+35,211
+186,949
+(14,471)
+(3,769)
+(7,516)
+(232)
+(601)
+(2,353)
+At 31 December 2021
+168,309
+At 31 December 2020 and 1 January 2021
+(25,221)
+454,878
+164,941
+76,898
+11,928
+39,752
+161,359
+Additions
+At 1 January 2020
+Total
+vessels
+vehicles
+Aircraft and
+and motor
+Leasehold
+improvements
+Cost:
+At 1 January 2020
+1,221
+1,108
+(15,469)
+(7,163)
+(211)
+(301)
+(2,077)
+Disposals
+12,277
+8,573
+(16,517)
+7,806
+CIP transfer in/out)
+35,746
+11,128
+10,012
+138
+in progress
+65,704
+9,983
+(1,374)
+(4)
+(159)
+(6,555)
+(2,779)
+(10,871)
+At 31 December 2021
+75,803
+34
+11,493
+62,340
+41,366
+191,036
+Carrying amount:
+At 31 December 2020
+97,485
+35,173
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+ICBC
+208
+290,296
+139,579
+19,292
+Disposals
+2,097
+111,146
+At 31 December 2021
+286,279
+133,211
+18,371
+2,039
+18,182
+2,286
+2,282
+4
+(979)
+Disposals
+3,691
+3,691
+Impairment charge for the year
+19,243
+(104)
+5,554
+907
+6,099
+Depreciation charge for the year
+168,317
+30,801
+61,791
+6,683
+38
+(6,960)
+(12,127)
+Impairment charge for the year
+20,497
+5,901
+7,377
+866
+6,353
+(4,084)
+Depreciation charge for the year
+35,962
+61,514
+10,786
+38
+70,824
+At 31 December 2020 and 1 January 2021
+179,124
+Construction
+180,945
+equipment
+Net assets of the associate attributable to the parent company
+Group's effective interest
+82,364
+81,530
+20.06%
+20.06%
+Group's share of net assets of the associate
+16,522
+16,355
+Goodwill
+8,447
+9,408
+Balance of the Group's interest in Standard Bank in the
+consolidated financial statements
+24,969
+25,763
+Annual Report 2021
+207
+Balance
+at beginning
+investee
+Name of
+Balance of
+allowance for
+Declared
+recognised
+Equity method of the associate
+income
+Movements during 2021
+Movements of associates and joint ventures investments of the Group are as follows:
+(b)
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+Investment
+under
+5,459
+Profit from continuing operations
+61,782
+41,206
+Properties and
+buildings
+Standard Bank
+Other
+31 December
+31 December
+2021
+2020
+24,621
+25,415
+37,161
+15,791
+61,782
+41,206
+Standard Bank Group Limited ("Standard Bank") is a listed commercial bank registered in Johannesburg, the Republic of
+South Africa with an issued capital of ZAR162 million and a strategic partner of the Group. As at 31 December 2021 and 31
+December 2020, the Group's equity interest and voting rights were 20.06%.
+The accounting policies of Standard Bank are consistent with those of the Group. Its financial information is significant to
+the Group and summarised as follows:
+As at/
+95,979
+97,216
+1,033,331
+993,965
+1,129,310
+1,091,181
+10,725
+Net assets
+Assets
+The associate
+2020
+2021
+As at/
+year ended
+31 December
+year ended
+31 December
+Liabilities
+Other
+(a) Carrying value of the Group's associates and joint ventures are as follows:
+Balance
+14,361
+21,200
+(13)
+696
+16
+(38)
+(254)
+35,968
+(17)
+Subtotal
+40,124
+21,200
+(13)
+2,797
+553
+(913)
+(2,811)
+distribution of
+Office
+(365)
+62,147
+(2,818)
+(1,015)
+Other
+556
+(206)
+21,207
+41,554
+Total
+(365)
+60,937
+2,869
+(348)
+27. PROPERTY AND EQUIPMENT
+(2,557)
+Increase
+impairment
+Decrease
+the equity
+comprehensive cash dividends
+at end
+at end
+of the year
+24,969
+in capital
+method
+income
+or profits
+Others
+of the year
+in capital
+Joint ventures
+(875)
+537
+of the year
+2,101
+25,763
+Associates
+1,210
+Standard Bank
+(102)
+3
+72
+(193)
+7
+1,430
+(7)
+(assets)
+liabilities/
+differences
+(assets)
+differences
+Allowance for impairment losses
+measured at FVTPL
+(268)
+(3,273)
+(937)
+Change in fair value of financial instruments
+15,692
+(535)
+temporary
+271,766
+temporary
+319,327
+79,259
+67,713
+Deferred tax liabilities:
+31 December 2021
+31 December 2020
+liabilities/
+Taxable/
+Taxable/
+Deferred
+(deductible)
+tax
+(deductible)
+tax
+Deferred
+3,635
+12,251
+1,809
+income
+2021
+(1,122)
+comprehensive
+Recognised in
+profit or loss
+2021
+1 January
+31 December
+in other
+Recognised
+Deferred tax assets:
+(b) Movements of deferred income tax
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+209
+Annual Report 2021
+Change in fair value of financial instruments
+measured at FVTOCI
+2,737
+690
+4,823
+1,149
+7,236
+Other
+1,567
+3,465
+860
+24,179
+5,624
+2,881
+6,285
+(5,106)
+(taxable)
+(7,847)
+(a) Analysed by nature
+28. DEFERRED TAX ASSETS AND LIABILITIES
+As at 31 December 2021, the construction in progress for aircraft and vessels was RMB9, 101 million (31 December 2020:
+RMB12,623 million).
+As at 31 December 2021, the carrying amount of aircraft and vessels owned by the Group that have been pledged as
+security for liabilities due to banks and other financial institutions was RMB92,426 million (31 December 2020: RMB77,858
+million).
+As at 31 December 2021, the carrying amount of aircraft and vessels leased out by the Group under operating leases was
+RMB139,579 million (31 December 2020: RMB133,211 million).
+As at 31 December 2021, the process of obtaining the legal titles for the Group's properties and buildings with an aggregate
+carrying amount of RMB12,798 million (31 December 2020: RMB11,203 million) was still in progress. Management is of the
+view that the aforesaid matter would neither affect the rights of the Group to these assets nor have any significant impact
+on the business operation of the Group.
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+341,718
+ICBC
+218
+The Bank shall distribute dividends for Offshore and Domestic Preference Shares in cash, based on the liquidation preference
+amount for the issued and outstanding Offshore Preference Shares or total amount of issued and outstanding Domestic
+Preference Shares during the corresponding period (i.e. the product of the issue price of Preference Shares and the number
+of the issued and outstanding Preference Shares).
+Non-cumulative dividend is a dividend on Offshore and Domestic Preference Shares which does not cumulate upon omission
+of payment and the passed or omitted dividend of one year is not carried to the following year. After receiving a dividend at
+the agreed dividend rate, preference shareholders of the Bank will not participate in the distribution of residual profits with
+ordinary shareholders.
+For Offshore and Domestic Preference Shares, if the Bank cancels all or part of the dividends to the Preference Shares, the
+Bank shall not make any dividend distribution to ordinary shareholders before the Bank pays the dividends to the preference
+shareholders in full for the current dividend period.
+Deferred tax assets:
+(iii) Dividend stopper and setting mechanism
+(ii) Conditions to distribution of dividends
+Offshore and domestic dividends are set at a fixed rate for 5 years after issuance, and are reset every 5 years thereafter to
+the sum of the benchmark rate and the fixed spread. The fixed spread is equal to the spread between the initial dividend
+rate and the benchmark rate at the time of issuance. The fixed spread remains unchanged throughout the term of the
+Preference Shares.
+Offshore and domestic dividends are paid annually.
+(i) Dividend
+(b) Main clauses and basic information
+134,614
+Book value
+(102)
+Less: issue fees
+134,716
+Total
+No
+Mandatory No
+Mandatory
+Allowance for impairment losses
+The Bank can pay offshore and domestic dividends when it has distributable after-tax profit after making up previous years'
+losses, contributing to the statutory reserve and making general provisions, and the Bank's capital adequacy ratios meet
+regulatory requirements. Preference shareholders of the Bank are senior to the ordinary shareholders in respect of the right
+to dividends. The order of payment of Domestic Preference Shares is equal to Offshore Preference Shares. The Bank may
+elect to cancel all or part of offshore and domestic dividends and this shall not constitute a default for any purpose, but such
+cancellation will require a shareholder's resolution to be passed.
+31 December 2021
+Deductible/
+Deferred
+31 December 2020
+Deductible/
+Deferred
+Other
+6,628
+26,512
+8,684
+34,823
+Accrued staff costs
+(5,417)
+(21,224)
+(5,635)
+(22,620)
+measured at FVTOCI
+Change in fair value of financial instruments
+(2,470)
+(9,858)
+(3,455)
+(13,823)
+measured at FVTPL
+temporary
+tax
+assets/
+(taxable)
+temporary
+tax
+assets/
+differences
+(liabilities)
+(1,997)
+differences
+Allowance for impairment losses
+328,794
+81,662
+281,442
+70,094
+Change in fair value of financial instruments
+(liabilities)
+70,094
+7,874
+274,446
+81,662
+1 January
+in other
+Recognised
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+Deferred tax liabilities:
+ICBC
+210
+67,713
+257
+4,920
+62,536
+(1,122)
+(107)
+Recognised in
+(1,005)
+Other
+6,628
+338
+6,290
+Accrued staff costs
+(5,417)
+364
+(5,781)
+measured at FVTOCI
+Change in fair value of financial instruments
+(2,470)
+(1,619)
+(851)
+measured at FVTPL
+(10)
+comprehensive
+31 December
+2020
+70,000 None
+2021
+31 December
+31 December
+29. OTHER ASSETS
+As at 31 December 2021, the Group did not have significant unrecognised deferred tax assets (31 December 2020: Nil).
+2,881
+(208)
+1,216
+1,873
+860
+445
+415
+Other
+1,149
+(208)
+1,357
+profit or loss
+income
+2020
+Allowance for impairment losses
+(535)
+(402)
+Change in fair value of financial instruments
+(937)
+measured at FVTPL
+636
+1,173
+1,809
+Change in fair value of financial instruments
+measured at FVTOCI
+Change in fair value of financial instruments
+11,568
+70,094
+62,888
+2021
+31 December
+comprehensive
+Recognised in
+1 January
+Recognised
+in other
+Deferred tax liabilities:
+79,259
+(150)
+11,696
+67,713
+(1,997)
+68
+(943)
+profit or loss
+(1,122)
+8,684
+2,056
+6,628
+Accrued staff costs
+(5,635)
+(218)
+(5,417)
+measured at FVTOCI
+Change in fair value of financial instruments
+(3,455)
+(985)
+(2,470)
+measured at FVTPL
+Change in fair value of financial instruments
+Other
+income
+2021
+Allowance for impairment losses
+Allowance for impairment losses
+2020
+income
+profit or loss
+2020
+31 December
+Recognised
+in other
+comprehensive
+Recognised in
+1 January
+Deferred tax assets:
+5,624
+(459)
+3,202
+2,881
+1,567
+707
+860
+(937)
+669
+(268)
+Change in fair value of financial instruments
+measured at FVTPL
+1,809
+7,206
+1,826
+Change in fair value of financial instruments
+measured at FVTOCI
+1,149
+(459)
+690
+Other
+3,635
+70,000
+Carrying amount:
+45,000
+2,283
+1,985
+Other
+110,574
+28,858
+717,915
+734,335
+7,357
+Less: Allowance for impairment losses
+(5,077)
+707,862
+729,258
+Annual Report 2021
+211
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(10,053)
+(In RMB millions, unless otherwise stated)
+6,211
+8,242
+shares)
+(million)
+(million) Maturity
+condition
+Conversion
+Offshore Preference
+Shares:
+8,878
+USD
+278,429
+31,913
+34,068
+15,593
+16,225
+8,518
+8,945
+23/09/2020
+(i) Right-of-use assets
+Leased
+properties
+Leased
+(3,367)
+At 31 December 2020 and 1 January 2021
+30,529
+16,550
+946
+48,025
+Additions
+(775)
+6,926
+7,017
+Decreases
+(3,191)
+(441)
+(680)
+(4,312)
+At 31 December 2021
+91
+(1,341)
+(1,251)
+Decreases
+Leased office
+and buildings
+aircraft
+and vessels
+equipment and
+motor vehicles
+Total
+Cost:
+At 1 January 2020
+22,463
+16,534
+1,628
+40,625
+Additions
+9,317
+1,357
+93
+10,767
+Issue price
+34,264
+rate
+In RMB
+8,090
+6,749
+6,515
+4,542
+5,658
+5,210
+6,008
+8,315
+5,113
+29,929
+32,492
+28,340
+29,825
+Ending balance of lease liabilities
+(ii) There were no overdue payment for staff salaries, bonuses, allowances and subsidies payable as at 31 December 2021 (31
+December 2020: Nil).
+37. SHARE CAPITAL
+6,221
+Issued and fully paid:
+2020
+31 December
+Early retirement benefits
+32
+490
+Other
+155,200
+789,355
+48,424
+712,770
+2021
+(i)
+Less than one year
+One to two years
+Two to three years
+Three to five years
+More than five years
+Undiscounted lease liabilities
+31 December
+Lease liabilities
+H shares of RMB1 Yuan each
+A shares of RMB1 Yuan each
+31 December 2020
+Number
+Annual Report 2021
+217
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+38. OTHER EQUITY INSTRUMENTS
+(1) Preference shares
+Except for the dividends for H shares which are payable in Hong Kong dollars, all of the ordinary A shares and H shares rank
+pari passu with each other in respect of dividends on ordinary shares.
+(a) Preference shares outstanding ("Preference Shares"):
+In original
+Financial instrument
+outstanding
+Issue date
+Accounting
+classification
+Dividend
+(million
+currency
+Amount
+356,407
+356,407
+356,407
+Nominal
+of shares
+value
+(millions)
+Nominal
+value
+31 December 2021
+Number
+of shares
+(millions)
+86,795
+86,795
+86,795
+86,795
+269,612
+269,612
+269,612
+269,612
+356,407
+Conversion
+1,193
+16,109
+50,730
+251
+219
+32
+At 31 December 2021
+(65)
+316
+None
+At 31 December 2020
+119
+| || |
+(55)
+(10)
+Decreases
+274
+42
+At 31 December 2020 and 1 January 2021
+197
+101
+At 31 December 2021
+14,549
+8,945
+2020
+2021
+Net carrying amount
+Less: Allowance for impairment losses
+Subtotal
+Exchange difference
+18,392
+At 1 January
+(ii)
+31,662
+139
+13,815
+17,708
+33,752
+811
+Goodwill
+18
+Impairment charge for the year
+173
+12,095
+At 31 December 2020 and 1 January 2021
+(813)
+(60)
+(39)
+(714)
+Decreases
+1,727
+7,803
+623
+7,089
+Depreciation charge for the year
+6,967
+Accumulated depreciation:
+At 1 January 2020
+5,720
+91
+135
+13,957
+Depreciation charge for the year
+24
+At 1 January 2020
+Impairment:
+18,817
+218
+2,075
+16,524
+At 31 December 2021
+(2,837)
+(33)
+(222)
+(2,582)
+Decreases
+7,697
+116
+570
+7,011
+9,517
+357
+(427)
+8,518
+Annual Report 2021
+2,784,259
+468,616
+489,340
+2,921,029
+4,613
+3,968
+304,413
+213
+258,465
+226,907
+Banks and other financial institutions operating in Chinese mainland
+Banks and other financial institutions operating outside Chinese mainland
+Accrued interest
+Money market takings:
+2,179,522
+134,346
+1,775
+2,315,643
+2,431,689
+143,928
+1,269
+2,286,492
+159,590
+Banks and other financial institutions operating in Chinese mainland
+Banks and other financial institutions operating outside Chinese mainland
+Accrued interest
+Notes to the Consolidated Financial Statements
+(In RMB millions, unless otherwise stated)
+Equity
+3.58% 20USD/Share
+145
+2,900
+19,716
+None
+8,110
+For the year ended 31 December 2021
+2020
+31 December
+31 December
+Accrued interest
+Cash received as collateral on securities lending
+Repurchase agreements-securities
+Repurchase agreements-bills
+32. REPURCHASE AGREEMENTS
+2021
+31 December
+2020
+2021
+31 December
+Debt securities issued
+and account-based investment products
+Financial liabilities related to precious metals
+Interbank wealth management products
+30. FINANCIAL LIABILITIES DESIGNATED AS AT FAIR VALUE THROUGH PROFIT OR LOSS
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+Other
+ICBC
+The recoverable amount of the CGU is determined based on the discounted future cash flows of the CGU. The cash flow
+projections are based on financial forecasts approved by management of the subsidiaries. The average growth rates are
+projected based on the similar rates which do not exceed the long-term average growth rate for the business in which the
+CGU operates in. The discount rate is the before-tax rate and reflects the specific risk associated with the CGU.
+Goodwill arising from business combinations has been allocated to the Group's CGU, which is not larger than the reportable
+segment of the Group, for impairment testing.
+8,586
+8,169
+(359)
+(349)
+8,945
+212
+€ €
+31 December
+31 December
+Deposits:
+31. DUE TO BANKS AND OTHER FINANCIAL INSTITUTIONS
+For 2021 and 2020, there were no significant changes in the credit spread of the Group and therefore the amounts of
+changes in fair value of the financial liabilities arising from changes in the credit risk and the accumulated amounts as at the
+end of the respective years were not significant. The changes in fair value of the financial liabilities were mainly attributable
+to changes in other market factors.
+Financial liabilities related to precious metals and account-based investment products, and certain issued debt
+securities have been matched with precious metals and derivatives of the Group as part of a documented risk
+management strategy to mitigate market risk. An accounting mismatch would arise if these financial liabilities were
+accounted for at amortised cost, whereas the related precious metals and derivative were measured at fair value with
+movements in fair value taken through the statement of profit or loss. By designating these financial liabilities at
+FVTPL, the movement in their fair values is recorded in the statement of profit or loss. As at 31 December 2021 and 31
+December 2020, the difference between the fair values of the financial liabilities related to precious metals, account-
+based investment products and issued debt securities and the amounts that the Group would be contractually required
+to pay to the holders of the financial liabilities related to precious metals, account-based investment products and
+issued debt securities upon maturity was not significant.
+The principal-guaranteed interbank wealth management products issued by the Group and the financial assets which
+the aforesaid products held form part of a group of financial instruments that were managed together on a fair
+value basis, and were classified as financial liabilities and financial assets designated as at FVTPL, respectively. As at
+31 December 2020, the fair value of the interbank wealth management products was approximately the same as the
+amount that the Group would be contractually required to pay to the holders of the wealth management products
+upon maturity.
+(i)
+87,938
+87,180
+10,771
+4,283
+11,574
+18,409
+60,704
+64,488
+4,889
+2020
+2021
+(572)
+1,143
+1,081
+15,595
+(In RMB million)
+rate
+Value date
+11 ICBC 01
+29/06/2011
+100 Yuan
+38,000
+(In RMB)
+5.56%
+date Circulation date
+30/06/2031
+30/08/2011
+12 ICBC 01
+11/06/2012
+100 Yuan
+20,000
+4.99%
+30/06/2011
+13/06/2012
+Issue date
+Maturity
+320,569
+368,063
+791,375
+798,127
+As at 31 December 2021, the amount of debt securities issued that were due within one year was RMB124,031 million (31
+December 2020: RMB120,429 million).
+214
+ICBC
+Name
+Notes to the Consolidated Financial Statements
+(a) Subordinated bonds and tier 2 capital bonds
+The Bank:
+As approved by the PBOC and the CBIRC, the Bank issued callable subordinated bonds and tier 2 capital bonds through
+open market bidding. These subordinated bonds and tier 2 capital bonds were traded on the National Interbank Bond
+Market. The relevant information is set out below:
+Issued and
+Issue price
+nominal amount
+Coupon
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+13/06/2027
+13/07/2012
+17 ICBC 01 Tier 2 Bond
+25/03/2029
+26/03/2019
+19 ICBC 02 Tier 2 Bond
+21/03/2019
+100 Yuan
+10,000
+4.51%
+25/03/2019
+25/03/2019 25/03/2034
+19 ICBC 03 Tier 2 Bond
+24/04/2019
+100 Yuan
+45,000
+4.40%
+26/04/2019
+26/04/2029
+26/03/2019
+4.26%
+45,000
+100 Yuan
+06/11/2017
+100 Yuan
+44,000
+4.45%
+08/11/2017
+08/11/2027
+10/11/2017
+17 ICBC 02 Tier 2 Bond
+20/11/2017
+100 Yuan
+44,000
+4.45%
+22/11/2017
+22/11/2027
+23/11/2017
+19 ICBC 01 Tier 2 Bond
+21/03/2019
+1,669
+28/04/2019
+1,768
+130,558
+33. CERTIFICATES OF DEPOSIT
+Certificates of deposit issued by certain of the Bank's overseas branches and subsidiaries are measured at amortised cost.
+34. DUE TO CUSTOMERS
+Demand deposits:
+Corporate customers
+Personal customers
+Time deposits:
+293,434
+Corporate customers
+Other
+Accrued interest
+31 December
+2021
+31 December
+2020
+7,533,110
+7,455,160
+5,390,582
+Personal customers
+5,196,607
+190
+16,015
+100
+365,943
+45,000
+680
+700
+4.20% 100RMB/Share
+Equity
+19/09/2019
+RMB2019
+10,924
+450
+Equity
+18/11/2015
+RMB2015
+Shares:
+Domestic Preference
+No
+Mandatory
+4.58% 100RMB/Share
+12,923,692
+12,651,767
+5,798,353
+이
+31 December
+31 December
+2021
+2020
+458,688
+419,032
+Accrued interest
+4,116
+8,002
+6,747
+470,806
+430,064
+(b)
+188,243
+232,356
+4,285
+Issued by subsidiaries
+Issued by the Bank
+Other debt securities
+5,489,700
+7,107,386
+6,463,929
+12,905,739
+11,953,629
+250,349
+261,389
+361,994
+267,941
+26,441,774
+25,134,726
+As at 31 December 2021, pledged deposits included in above amounted to RMB228,227 million (31 December 2020:
+RMB249,915 million).
+35. DEBT SECURITIES ISSUED
+Subordinated bonds and tier 2 capital bonds
+Issued by the Bank
+Issued by subsidiaries
+Accrued interest
+134,038
+Promissory notes
+19 ICBC 04 Tier 2 Bond
+100 Yuan
+(i)
+(ii)
+Head Office issued debt securities denominated in RMB at fixed interest rates amounting to RMB20,075 million in total
+with maturities between 2023 and 2024.
+Sydney Branch issued notes denominated in AUD, RMB, HKD and USD at fixed or floating interest rates amounting to
+an equivalent of RMB11,372 million in total with maturities between 2022 and 2026.
+(iii) Singapore Branch issued notes denominated in RMB, USD and EUR at fixed or floating interest rates amounting to an
+equivalent of RMB48,080 million in total with maturities between 2022 and 2025.
+(iv) Tokyo Branch issued notes denominated in JPY at fixed interest rate amounting to an equivalent of RMB249 million in
+total that will mature in 2022.
+(v)
+The Bank:
+New York Branch issued notes denominated in USD at fixed interest rates amounting to an equivalent of RMB14,572
+million in total with maturities between 2022 and 2027.
+(vii) Dubai (DIFC) Branch issued notes denominated in USD at floating interest rates amounting to an equivalent of
+RMB13,415 million in total with maturities between 2022 and 2024.
+(viii) Hong Kong Branch issued notes denominated in USD at fixed or floating interest rates amounting to an equivalent of
+RMB45,726 million in total with maturities between 2022 and 2026.
+(ix) London Branch issued notes denominated in GBP, USD and EUR at fixed or floating interest rates amounting to an
+equivalent of RMB13,401 million in total with maturities between 2022 and 2025.
+(x)
+Macau Branch issued notes denominated in MOP at fixed interest rates amounting to an equivalent of RMB3,239
+million in total with maturities between 2022 and 2023.
+Subsidiaries:
+(i)
+(vi) Luxembourg Branch issued notes denominated in USD and EUR at fixed or floating interest rates amounting to an
+equivalent of RMB18,114 million in total with maturities between 2022 and 2024.
+(ii)
+(b) Other debt securities issued
+For the year ended 31 December 2021
+Repossessed assets
+Interest receivable
+267,342
+349,590
+267,239
+15 USD
+Tier 2 capital bonds
+(In RMB millions, unless otherwise stated)
+The bonds cannot be redeemed before maturity.
+Subsidiaries:
+On 23 March 2018, ICBC Thai issued a tier 2 capital bond with an aggregate nominal amount of THB5,000 million, bearing
+a fixed interest rate of 3.5%. The bond will mature on 23 September 2028.
+On 12 September 2019, ICBC Macau issued a tier 2 capital bond with an aggregate nominal amount of USD500 million,
+bearing a fixed interest rate of 2.875% per annum. The bond will mature on 12 September 2029.
+The above tier 2 capital bonds are separately listed on the Thai Bond Market Association and The Stock Exchange of Hong
+Kong Limited. ICBC Thai and ICBC Macau have not had any defaults of principal or interest or other breaches with respect to
+the tier 2 capital bonds in 2021 (2020: Nil).
+Annual Report 2021
+215
+Notes to the Consolidated Financial Statements
+The Bank has not had any defaults in respect of payments of principal or interest or other breaches with respect to the
+subordinated bonds and tier 2 capital bonds in 2021 (2020: Nil).
+(iii)
+ICBC Asia issued medium-term debt securities and notes denominated in RMB and USD at fixed or floating interest
+rates amounting to an equivalent of RMB8,469 million in total with maturities between 2022 and 2024.
+ICBC Leasing issued medium-term debt securities and notes denominated in RMB and USD at fixed or floating interest
+rates amounting to an equivalent of RMB70,528 million in total with maturities between 2022 and 2031.
+317,591
+394,880
+213,457
+170,846
+(i)
+28,340
+29,825
+Lease liabilities
+Provisions for credit commitments
+26,710
+Salaries, bonuses, allowances and subsidies payables
+(ii)
+32,751
+24,807
+Sundry tax payables
+16,454
+24,449
+Insurance contract liabilities
+Settlement and clearing balances
+2020
+ICBC Thai issued medium-term debt securities and notes denominated in THB at fixed interest rates amounting to an
+equivalent of RMB8,367 million in total with maturities between 2022 and 2026.
+(iv)
+ICBC International issued medium-term debt securities and notes denominated in USD at fixed interest rates
+amounting to an equivalent of RMB12,709 million in total with maturities between 2022 and 2025.
+(v)
+ICBC New Zealand issued medium-term debt securities and notes denominated in NZD at fixed or floating interest
+rates amounting to an equivalent of RMB2,331 million in total with maturities between 2022 and 2024.
+(vi)
+ICBC Investment issued medium-term debt securities and notes denominated in RMB at fixed interest rates amounting
+to RMB28,000 million in total with maturities between 2022 and 2025.
+(vii) ICBC Peru issued short-term debt securities denominated in PEN at fixed interest rates amounting to an equivalent of
+RMB154 million in total that will mature in 2022.
+216
+ICBC
+36. OTHER LIABILITIES
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+31 December
+31 December
+2021
+Advance payments
+24/04/2019
+Goodwill (ii)
+Right-of-use assets (i)
+17/11/2020
+20 ICBC 03 Tier 2 Bond
+12/11/2020
+100 Yuan
+10,000
+4.45%
+16/11/2020
+16/11/2030
+16/11/2035
+21 ICBC 01 Tier 2 Bond
+19/01/2021
+100 Yuan
+30,000
+4.15%
+21/01/2021
+21/01/2031
+17/11/2020
+22/01/2021
+16/11/2020
+30,000
+10,000
+4.69%
+26/04/2019
+26/04/2034
+28/04/2019
+20 ICBC 01 Tier 2 Bond
+22/09/2020
+4.15%
+100 Yuan
+4.20%
+24/09/2020
+24/09/2030
+25/09/2020
+20 ICBC 02 Tier 2 Bond
+12/11/2020
+100 Yuan
+60,000
+21 ICBC 02 Tier 2 Bond
+13/12/2021
+100 Yuan
+Coupon
+rate
+Value date
+Maturity date
+Circulation date
+21/09/2015
+USD
+99.189
+(In RMB)
+(million)
+2,000
+4.875%
+21/09/2015
+21/09/2025
+22/09/2015
+2020
+Settlement and clearing balances
+Precious metals
+12,700
+(In original
+currency)
+(million)
+Currency Issued price
+Issue date
+50,000
+3.48%
+14/12/2021
+15/12/2031
+15/12/2021
+21 ICBC 03 Tier 2 Bond
+13/12/2021
+100 Yuan
+10,000
+3.74%
+14/12/2021 15/12/2036
+15/12/2021
+The Bank has the option to redeem these bonds on specific dates at par value in future upon the approval of the relevant
+regulatory authorities.
+In 2015, the Bank issued tier 2 capital bonds denominated in USD. The bonds were approved for listing and dealing by The
+Stock Exchange of Hong Kong Limited. The relevant information is set out below:
+Name
+Issued
+amount
+Ending
+balance
+Land use rights
+104
+(600)
+(iv) Order of distribution and liquidation method
+31 December 2020
+Carrying
+amount of
+Carrying
+amount of
+transferred
+associated
+assets
+liabilities
+transferred
+assets
+associated
+liabilities
+Repurchase agreements
+33,039
+32,012
+42,124
+40,760
+Securities lending agreements
+361,344
+255,660
+394,383
+32,012
+297,784
+40,760
+Securitisation transactions
+The Group transfers credit assets to structured entities which issue asset-backed securities to investors. The Group may
+acquire some asset-backed securities at the subordinated tranche level and accordingly, may retain parts of the risks and
+rewards of the transferred credit assets. The Group would determine whether or not to derecognise the associated credit
+assets by evaluating the extent to which it retains the risks and rewards of the assets.
+For those in which the Group has neither transferred nor retained substantially all the risks and rewards of the transferred
+credit assets, and retained control of the credit assets, the Group recognises the assets on the consolidated statement
+of financial position to the extent of the Group's continuing involvement and the rest is derecognised. The extent of the
+Group's continuing involvement is the extent of the risks and rewards undertaken by the Group with value changes of the
+transferred financial assets. As at 31 December 2021, loans with an original carrying amount of RMB619,736 million at the
+time of derecognition (31 December 2020: RMB521,314 million) have been securitised by the Group under arrangements in
+which the Group retained a continuing involvement in such assets. The carrying amount of assets that the Group continues
+to recognise on the consolidated statement of financial position was RMB74,121 million as at 31 December 2021 (31
+December 2020: RMB63,808 million).
+As at 31 December 2021, the carrying amount of asset-backed securities held by the Group in securitisation transactions
+that were qualified for derecognition was RMB973 million (31 December 2020: RMB1,029 million), and its maximum
+exposure approximated to the carrying amount.
+With respect to the securitisation of financial assets that do not qualify for derecognition, the relevant financial assets are
+not derecognised, and the consideration received is recorded as a financial liability. As at 31 December 2021, transferred
+credit assets that were not qualified for derecognition of the Group amounted to RMB132 million at the time of transfer (31
+December 2020: Nil).
+44. ASSETS PLEDGED AS SECURITY
+Financial assets of the Group including securities and bills have been pledged as collateral for liabilities or contingent
+liabilities, mainly for repurchase agreements and derivative contracts. As at 31 December 2021, the carrying amount of the
+financial assets of the Group pledged as collateral amounted to approximately RMB319,877 million (31 December 2020:
+approximately RMB249,499 million).
+Carrying
+amount of
+31 December 2021
+Carrying
+amount of
+The following table analyses the carrying amount of the aforementioned financial assets transferred to third parties that did
+not qualify for derecognition and their associated financial liabilities:
+(In RMB millions, unless otherwise stated)
+Wealth management products
+32,100
+311
+Asset management plans and asset-backed securities
+Trust plans
+204,344
+7,975
+45,658
+22,807
+21,397
+259,562
+7,975
+67,055
+226
+ICBC
+45. SHARE APPRECIATION RIGHTS PLAN
+Notes to the Consolidated Financial Statements
+(b) Structured entities sponsored by the Group in which the Group does not consolidate
+but holds an interest
+The types of unconsolidated structured entities sponsored by the Group include non-principal-guaranteed wealth
+management products and investment funds. The nature and purpose of these structured entities are to generate fees from
+managing assets on behalf of investors. These structured entities are financed through the issuance of investment products
+to investors. Interest held by the Group includes investments in the products issued by these unconsolidated structured
+entities and fees charged for providing management services. As at 31 December 2021 and 31 December 2020, the carrying
+amounts of the investments in the products issued by these structured entities and fee receivables being recognised were
+not material in the consolidated financial statements. Management income earned by the Group was included in fee and
+commission income of personal wealth management and private banking services and corporate wealth management
+services set out in Note 7.
+As at 31 December 2021, the amount of assets held by the unconsolidated non-principal-guaranteed wealth management
+products and investment funds, which are sponsored by the Group, were RMB2,586,393 million (31 December 2020:
+RMB2,708,427 million) and RMB1,810,281 million (31 December 2020: RMB1,462,393 million) respectively.
+In 2021, the amount of the average exposure of financing transactions through placements and reverse repurchase
+agreements from the Group with non-principal-guaranteed wealth management products sponsored by the Group was
+RMB26,699 million (2020: RMB72,587 million). The transactions were conducted in the ordinary course of business under
+normal terms and conditions and at market rates.
+(c) Consolidated structured entities
+The consolidated structured entities of the Group are primarily the principal-guaranteed wealth management products,
+certain investment funds, asset-backed securities and asset management plans issued or initiated and invested by the Group
+or purchased due to regulatory requirements related to wealth management business. The Group controls these entities
+because the Group has power over, is exposed to, or has rights to variable returns from its involvement with these entities
+and has the ability to use its power over these entities to affect the amount of the Group's returns.
+1,951
+The Group enters into transactions in the ordinary course of business by which it transfers recognised financial assets to
+third parties or structured entities. In some cases these transfers may give rise to full or partial derecognition of the financial
+assets concerned. In other cases where the transferred assets do not qualify for derecognition as the Group has retained
+substantially all the risks and rewards of these assets, the Group continues to recognise the transferred assets.
+Repurchase transactions and securities lending transactions
+Transferred financial assets that do not qualify for derecognition mainly include debt securities held by counterparties as
+collateral under repurchase agreements and debt securities lent to counterparties under securities lending agreements.
+The counterparties are allowed to sell or repledge those securities in the absence of default by the Group, but has an
+obligation to return the securities at the maturity of the contract. If the securities increase or decrease in value, the Group
+may in certain circumstances require additional cash collateral from counterparties or return part of the cash collateral
+to counterparties. The Group has determined that it retains substantially all the risks and rewards of these securities and
+therefore has not derecognised them. In addition, it recognises a financial liability for cash received as collateral.
+Annual Report 2021
+227
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+The Bank's share appreciation rights plan was approved in 2006, which allows share appreciation rights to be granted to
+eligible participants including directors, supervisors, senior management and other key personnel designated by the board of
+directors. The share appreciation rights will be granted and exercised based on the price of the Bank's H shares and will be
+valid for 10 years. As at the approval date of these financial statements, no share appreciation rights have been granted.
+228
+ICBC
+The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial
+statements of the subsidiaries and branches incorporated outside Chinese mainland.
+(e) Foreign currency translation reserve
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+223
+Annual Report 2021
+The investment revaluation reserve records the fair value changes and impairment provision of financial investments
+measured at FVTOCI.
+(d) Investment revaluation reserve
+The Bank's subsidiaries appropriate their profits to the general reserve according to the applicable local regulations.
+Pursuant to the resolution of the board of directors' meeting held on 30 March 2022, the total appropriation to general
+reserve of the Bank was RMB97,505 million (2020: RMB33,247 million), The general reserve balance of the Bank as at 31
+December 2021 amounted to RMB426,714 million, which reached 1.5% of the year-end balance of the Bank's risk assets.
+In accordance with the "Administrative Measures for the Provision of Reserves of Financial Enterprises" (Cai Jin [2012] No.
+20) issued by the MOF, the Bank maintains a general reserve within equity, through the appropriation of profit, which should
+not be less than 1.5% of the period-end balance of its risk assets, to partially cover unidentified possible losses.
+(c) General reserve
+The Bank's overseas entities appropriate their profits to other surplus reserves or statutory reserve in accordance with the
+relevant laws and regulations promulgated by the local regulatory bodies.
+(iii) Other surplus reserve
+After making the appropriation to the statutory surplus reserve, the Bank may also appropriate its profit for the year
+determined under the PRC GAAP to the discretionary surplus reserve upon approval by the shareholders in general meeting.
+Subject to the approval by the shareholders, the discretionary surplus reserve may be used to offset accumulated losses of
+the Bank, if any, and may be converted into capital.
+(f) Cash flow hedge reserve
+(ii) Discretionary surplus reserve
+Subject to the approval of the shareholders, the statutory surplus reserve may be used to offset accumulated losses of the
+Bank, if any, and may also be converted into capital of the Bank, provided that the balance of the statutory surplus reserve
+after such capitalisation is not less than 25% of the registered capital immediately before capitalisation.
+The Bank is required to appropriate 10% of its profit for the year, as determined under the Accounting Standards for
+Business Enterprises and other relevant requirements ("PRC GAAP"), pursuant to the Company Law of the PRC and the
+Articles of the Bank to the statutory surplus reserve until the reserve balance reaches 50% of its registered capital.
+(i) Statutory surplus reserve
+(b) Surplus reserves
+Capital reserve mainly includes share premium arising from the issuance of new shares at prices in excess of par value.
+(a) Capital reserve
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+39. RESERVES
+ICBC
+222
+(2) Equity attributable to other equity instrument holders of non-controlling interests
+16,013
+17,503
+Pursuant to the resolution of the board of directors' meeting held on 30 March 2022, the total appropriation to surplus
+reserve of the Bank was RMB32,494 million (2020: RMB30,550 million), among which an appropriation of 10% of the profit
+of the Bank for the year determined under the PRC GAAP to the statutory surplus reserve, in the amount of RMB32,438
+million (2020: RMB30,449 million) was approved and a total surplus reserve made by overseas branches was RMB56 million
+(2020: RMB101 million) pursuant to the requirements of local authorities.
+Investment funds
+The cash flow hedge reserve comprises the effective portion of the gains or losses on the hedging instruments.
+Other reserves represent reserves other than the items listed above, including other comprehensive income recognised under
+the equity method.
+(12,117)
+2,251
+Movement during 2021
+(10,428)
+(4,923)
+(27,882)
+22,377
+31 December 2020 and 1 January 2021
+(9,162)
+1,055
+(9,314)
+(903)
+Movement during 2020
+(1,266)
+(g) Other reserves
+(5,978)
+23,280
+1 January 2020
+Total
+Other
+differences
+revaluation
+translation
+Investment
+currency
+Foreign
+(a) Other comprehensive income attributable to equity holders of the parent company in
+the consolidated statement of financial position
+40. OTHER COMPREHENSIVE INCOME
+The Bank's distributable profit is based on its retained earnings as determined under PRC GAAP and IFRSS, whichever is
+lower. The amount that the Bank's subsidiaries can legally distribute is determined by referring to their profits as reflected
+in their financial statements prepared in accordance with the accounting regulations and principles promulgated by the
+local regulatory bodies. These profits may differ from those dealt with in these financial statements, which are prepared in
+accordance with IFRSS.
+(h) Distributable profits
+(18,568)
+Financial
+investments
+measured at
+amortised cost
+FVTOCI
+31 December 2020
+Financial
+investments
+measured at
+(iii) Reserve from cash flow hedging instruments Gain/(loss) during the year
+Less: Income tax effect
+374
+(146)
+68
+(107)
+442
+(253)
+(v)
+(iv) Other comprehensive income recognised under the equity method
+Foreign currency translation differences
+(vi) Other
+541
+14
+(12,353)
+885
+(8,172)
+(16,212)
+1,311
+(15,839)
+1,051
+41. CASH AND CASH EQUIVALENTS
+31 December
+2021
+2020
+Cash on hand
+62,872
+64,833
+Balances with central banks other than restricted deposits
+Deposits with banks and other financial institutions with
+338,551
+619,968
+original maturity of three months or less
+228,082
+241,109
+Placements with banks and other financial institutions with
+original maturity of three months or less
+31 December
+157,323
+1,827
+(3,042)
+(39,999)
+24,628
+31 December 2021
+(7,915)
+(2,972)
+(18,343)
+224
+ICBC
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(b) Other comprehensive income in the consolidated statement of profit or loss and other
+comprehensive income
+Items that will not be reclassified to profit or loss:
+2021
+2020
+(ii) Credit losses of debt instruments measured at FVTOCI
+(i)
+(1,180)
+1,289
+15
+(5)
+28
+8
+Items that may be reclassified subsequently to profit or loss:
+(i)
+Changes in fair value of debt instruments measured at FVTOCI
+Less: Amount transferred to profit or loss from other comprehensive
+income and income tax effect
+5,777
+(5,036)
+(4,154)
+1,994
+1,623
+Changes in fair value of equity instruments designated as at FVTOCI
+(ii) Other comprehensive income recognised under the equity method
+(iii) Other
+(1) Equity attributable to ordinary shareholders of non-controlling interests
+239,428
+649,929
+Trust plans
+20,903
+20,903
+44,204
+44,204
+135,602
+135,602
+334,592
+334,592
+The maximum loss exposures in the above investment funds, wealth management products, asset management plans and
+asset-backed securities, trust plans are the carrying amounts which are measured at amortised cost or the fair value of the
+investments held by the Group at the reporting date.
+The following tables set out an analysis of the line items in the consolidated statement of financial position in which assets
+were recognised relating to the Group's interests in structured entities sponsored by third party institutions:
+31 December 2021
+Financial
+investments
+measured at
+Financial
+investments
+measured at
+257,977
+FVTPL
+Financial
+investments
+measured at
+amortised cost
+Investment funds
+36,702
+Asset management plans and asset-backed securities
+Trust plans
+18,661
+2,740
+56,596
+1,435
+19,468
+56,798
+2,740
+76,064
+Financial
+investments
+measured at
+FVTPL
+FVTOCI
+Reverse repurchase agreements with original maturity of three months or less
+257,977
+77,997
+625,784
+1,436,757
+1,791,122
+Annual Report 2021
+225
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+42. INTERESTS IN STRUCTURED ENTITIES
+(a) Structured entities sponsored by third party institutions in which the Group holds an
+interest
+The Group holds an interest in some structured entities sponsored by third party institutions through investments in
+the products issued by these structured entities. Such structured entities include investment funds, wealth management
+products, asset management plans and asset-backed securities, trust plans and the Group does not consolidate these
+structured entities. The nature and purpose of these structured entities are to generate fees from managing assets on behalf
+of investors and are financed through the issuance of investment products to investors.
+The following table sets out an analysis of the carrying amounts and maximum exposure of interests held by the Group in
+the structured entities sponsored by third party institutions:
+31 December 2021
+Carrying
+Maximum
+77,997
+31 December 2020
+Carrying
+exposure
+amount
+Investment funds
+36,702
+36,702
+32,100
+Wealth management products
+311
+Maximum
+exposure
+32,100
+311
+Asset management plans and
+asset-backed securities
+amount
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+16,013
+225,819
+USD Perpetual bond
+Offshore
+Conversion
+Conversion
+In RMB
+(million) Maturity condition
+(million)
+units)
+Issue price
+Interest rate
+classification
+Issue date
+outstanding
+currency
+(million
+Accounting
+instrument
+In original
+Amount
+Financial
+(a) Perpetual bond outstanding
+(2) Perpetual bond
+The Bank redeemed all of the EUR Offshore Preference Shares on 10 December 2021.
+134,716
+(4,558)
+70,000
+70,000
+700
+45,000
+45,000
+24/09/2021
+Equity
+3.20%
+Note (i)
+None
+70,000
+70,000
+00
+700
+100RMB/Unit
+4.04%
+Equity
+04/06/2021
+Perpetual bond Series 1
+RMB2021
+No
+None
+None
+450
+80,000
+800
+100RMB/Unit
+4.45%
+Equity
+26/07/2019
+Perpetual bond
+RMB2019
+Domestic
+No
+None
+None
+39,793
+6,160
+N/A
+80,000
+139,274
+Total
+70,000
+Amount
+In RMB
+currency
+Amount
+In RMB
+In original
+31 December 2021
+In original
+In original
+currency
+(million)
+(million shares)
+outstanding
+Amount
+instrument
+Financial
+currency
+Movement during the year
+(c) Changes in preference shares outstanding
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+219
+Annual Report 2021
+Under the premise of obtaining the approval of the CBIRC and compliance with relevant requirements, the Bank has the
+right to redeem all or part of Domestic Preference Shares, after five years having elapsed since the date of issuance/the date
+of closing. The redemption period of Domestic Preference Shares is from the start date of redemption to the date of full
+redemption or conversion. Redemption price of Domestic Preference Shares is equal to book value plus any declared but
+unpaid dividend in current period.
+Subject to obtaining the approval of the CBIRC and satisfying the conditions of redemption, the Bank has the right to
+redeem all or part of the Offshore Preference Shares at the first call date and subsequent any dividend payment date.
+Redemption price of Offshore Preference Shares is equal to liquidation preference price plus any declared but unpaid
+dividend in current period. The first redemption date of Offshore Preference Shares is five years after issuance.
+(vi) Redemption
+The initial mandatory conversion prices are HKD5.73 for Offshore Preference Shares per H share; RMB3.44 for Domestic
+2015 Preference Shares and RMB5.43 for Domestic 2019 Preference Shares. In case of stock dividends distribution of H or A
+shares of the Bank or other circumstances, the Bank will make cumulative adjustment to the compulsory conversion price in
+turn.
+For Offshore Preference Shares, upon the occurrence of any Non-Viability Trigger Event, the Bank shall have the right
+to irrevocably and compulsorily convert all or part of the outstanding Offshore Preference Shares into H shares, under
+the consent of the CBIRC but without the need for the consent of the offshore preference shareholders or the ordinary
+shareholders. If the Offshore Preference Shares were converted into H shares, they cannot be converted to Preference Shares
+again under any circumstances.
+For Domestic Preference Shares, upon the occurrence of an Additional Tier 1 Capital Trigger Event (Core Tier 1 Capital
+Adequacy Ratio of the Bank falling to 5.125% or below), the Bank shall have the right without the need for the consent of
+the domestic preference shareholders to convert all or part of the outstanding face value of Domestic Preference Shares into
+A shares, in order to restore the Core Tier 1 Capital Adequacy Ratio of the Bank to above 5.125%. If Domestic Preference
+Shares were converted into A shares, they cannot be converted to Preference Shares again under any circumstances. Upon
+the occurrence of a Tier 2 Capital Trigger Event, the Bank shall have the right without the need for the consent of the
+domestic preference shareholders to convert all the outstanding face value of Domestic Preference Shares into A shares. If
+Domestic Preference Shares were converted into A share, they cannot be converted to Preference Shares again under any
+circumstances.
+(v) Mandatory conversion trigger events
+The offshore preference shareholders and domestic preference shareholders will rank equally for payment. The preference
+shareholders will be subordinated to the depositors, general creditors and holders of convertible bonds, holders of
+subordinated debts, holders of tier 2 capital bonds and holders of other tier 2 capital instruments of the Bank, but will be
+senior to the ordinary shareholders of the Bank.
+1 January 2021
+None
+In RMB
+(million shares)
+70,000
+700
+RMB2019
+20
+45,000
+45,000
+450
+RMB2015
+Shares:
+Domestic Preference
+19,716
+2,900
+45
+145
+(million)
+19,716
+145
+USD
+(4,558)
+(40)
+4,558
+600
+40
+EUR
+Shares:
+Offshore Preference
+(million)
+(million)
+(million) (million shares)
+(million)
+2,900
+No
+RMB2021
+Perpetual bond Series 2
+80,000
+80,000
+800
+Total
+Series 2
+RMB2021 Perpetual bond
+Series 1
+RMB2021 Perpetual bond
+80,000
+80,000
+800
+RMB2019 Perpetual bond
+Domestic
+USD2021 Perpetual bond
+000
+USD2016 Perpetual bond(i)
+outstanding
+39,793
+6,160
+NA
+N/A
+39,793
+6,160
+N/A
+(6,691)
+(1,000)
+(1)
+6,691
+1,000
+1
+Offshore
+In RMB
+(million)
+700
+70,000
+354,331
+2,667,683
+2,903,424
+(1) Equity attributable to ordinary shareholders of the parent company
+(2) Equity attributable to other equity instrument holders of the parent company
+Total equity attributable to non-controlling interests
+2.
+2,893,502
+3,257,755
+Total equity attributable to equity holders of the parent company
+1.
+2020
+2021
+Items
+31 December
+31 December
+70,000
+(3) Interests attributable to equity instruments' holders
+(i)
+219,793
+133,102
+86,691
+30,000
+30,000
+300
+30,000
+30,000
+300
+70,000
+70,000
+n0
+700
+The Group exercised its call option to redeem all of the outstanding USD2016 Perpetual Bond on 21 July 2021.
+17,503
+(million)
+(million)
+(ii) Interest stopper and setting mechanism
+The interest rate of Offshore Perpetual Bond for the first five years is 3.20%, resetting every 5 years. The rate is determined
+by a benchmark rate plus a fixed spread. The dividend shall be paid semi-annually.
+Each Domestic Perpetual Bond has a par value of RMB100, and the interest rate of the bonds for the first five years are
+4.45% for 2019 Domestic Perpetual Bond, 4.04% for 2021 Domestic Perpetual Bond Series 1, and 3.65% for 2021
+Domestic Perpetual Bond Series 2, resetting every 5 years. The rates are determined by a benchmark rate plus a fixed spread.
+The initial fixed spreads are the difference between the interest rate and the benchmark rate as determined at the time
+of issuance. The fixed spread will not be adjusted once determined during the duration period. The interest of Domestic
+Perpetual Bond shall be paid annually.
+(i) Interest
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+ICBC
+220
+The Bank issued USD6.16 billion of undated capital bonds (hereinafter referred to as "Offshore Perpetual Bond") on The
+Stock Exchange of Hong Kong Limited on 24 September 2021. The funds raised by the Bank from the bonds will be used
+to supplement additional tier 1 capital of the Bank in accordance with the relevant laws and approvals by regulatory
+authorities.
+With the approvals of relevant regulatory authorities, the Bank issued RMB80 billion, RMB70 billion and RMB30 billion of
+undated capital bonds on 26 July 2019, 4 June 2021 and 24 November 2021 (hereinafter referred to as "2019 Domestic
+Perpetual Bond", "2021 Domestic Perpetual Bond Series 1" and "2021 Domestic Perpetual Bond Series 2" respectively,
+collectively "Domestic Perpetual Bonds") in the National Interbank Bond Market.
+(b) Main clauses and basic information
+Offshore USD Perpetual Bonds were issued in specific denomination of USD200,000 and integral multiplies of
+USD1,000 in excess thereof at an issue price of 100%.
+Book value
+(i)
+The interest payment for both the Domestic Perpetual Bonds and Offshore Perpetual Bond is non-cumulative. The Bank
+shall have the right to cancel, in whole or in part, distributions on the interest payment and any such cancellation shall not
+constitute an event of default. The Bank may, at its sole discretion, use the proceeds from the cancelled distributions to meet
+other obligations as they fall due. However, the Bank shall not distribute profits to ordinary shareholders until resumption of
+full interest payment.
+219,717
+Less: issue fees
+219,793
+Total
+No
+DO
+None
+None
+30,000
+30,000
+00
+300
+3.65% 100RMB/Unit
+Equity
+24/11/2021
+(76)
+(million units)
+(iii) Order of distribution and liquidation method
+(iv) Write down conditions
+(million)
+(million units)
+(million)
+(million)
+(million units)
+currency
+Amount
+In RMB
+currency
+Amount
+In RMB
+currency
+Amount
+31 December 2021
+In original
+The claims in respect of Domestic Perpetual Bonds will be subordinated to claims of depositors, general creditors, and
+subordinated indebtedness that rank senior to Domestic Perpetual Bonds, and will rank in priority to all classes of shares held
+by shareholders of the Bank. The claims in respect of Offshore Perpetual Bonds will be subordinated to claims of depositors,
+general creditors, tier 2 capital bond holders and subordinated indebtedness that rank senior to the Offshore Perpetual
+Bond, and will rank in priority to all classes of shares held by shareholders of the Bank. Domestic Perpetual Bond and
+Offshore Perpetual Bond will rank pari passu with the claims in respect of any other Additional Tier 1 Capital instruments of
+the Bank that rank pari passu with the perpetual bonds.
+Movement during the year
+In original
+1 January 2021
+instrument
+Financial
+(c) Changes in perpetual bond outstanding
+The duration of the Domestic Perpetual Bonds and Offshore Perpetual Bond is the same as the continuing operation of the
+Bank. Five years after the issuance date of the Domestic Perpetual Bonds and Offshore Perpetual Bond, the Bank shall have
+the right to redeem them in whole or in part on each distribution payment date (including the fifth distribution payment
+date since the issuance). In the event that the perpetual bond is not classified as additional tier 1 capital due to unpredicted
+changes in regulations, the Bank shall have the right to redeem Domestic Perpetual Bonds and Offshore Perpetual Bond fully
+instead of partly.
+(v) Redemption
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+221
+Annual Report 2021
+For Offshore Perpetual Bond, upon the occurrence of a Non-Viability Trigger Event, the Bank has the right to write down all
+the perpetual bonds issued and outstanding at that time up to the total nominal value without the need for the consent of
+the bond holders.
+For 2021 Domestic Perpetual Bond Series 1 and 2021 Domestic Perpetual Bond Series 2, upon the occurrence of a Non-
+Viability Trigger Event, the Bank has the right to write down all or part of the nominal amount of the outstanding perpetual
+bonds without the need for the consent of the bond holders.
+For 2019 Domestic Perpetual Bond, upon the occurrence of an Additional Tier 1 Capital Trigger Event (Core Tier 1 Capital
+Adequacy Ratio of the Bank falling to 5.125% or below), the Bank has the right to write down all or part of the total
+nominal amount of the outstanding 2019 Domestic Perpetual Bond with the consent of the CBIRC but without the need for
+the consent of the bond holders, in order to restore the Core Tier 1 Capital Adequacy Ratio of the Bank to above 5.125%.
+Upon the occurrence of a Tier 2 Capital Trigger Event, without the need for consent of the bond holders, the Bank has the
+right to write down all of the total nominal amount of the outstanding 2019 Domestic Perpetual Bond.
+In original
+43. TRANSFERRED FINANCIAL ASSETS
+305,742
+140,569
+Transactions between the Group and the associates and their affiliates were conducted under normal commercial terms and
+conditions and priced based on market rates.
+(f) Joint ventures and affiliates
+Balances at end of the year:
+Loans and advances to customers
+Due to customers
+Transactions during the year:
+Interest income on loans and advances to customers
+Interest expense on amounts due to customers
+31 December
+31 December
+2021
+2020
+65
+18
+7
+2021
+2020
+0
+2
+0
+0
+0
+95
+638
+3
+2,436
+3,283
+6,145
+3,023
+2021
+2020
+Transactions during the year:
+Interest income on debt securities purchased
+387
+479
+Interest income on amounts due from banks and other financial institutions
+181
+80
+Interest income on loans and advances to customers
+33
+62
+Interest expense on amounts due to banks and other financial institutions
+Interest expense on amounts due to customers
+186
+0
+Transactions between the Group and joint ventures and their affiliates were conducted in the ordinary course of business
+under normal terms and conditions and priced based on market rates.
+234
+(In RMB millions, unless otherwise stated)
+(h) Annuity Fund
+Apart from the obligations for defined contributions to the Annuity Fund established by the Bank, Annuity Fund held A
+shares of the Bank with market value of RMB3.16 million (31 December 2020: RMB39.17 million), and bonds issued by the
+Bank of RMB324.13 million as at 31 December 2021 (31 December 2020: RMB10.00 million).
+(i) Transactions with state-owned entities in the PRC
+The Group operates in an economic environment predominated by enterprises directly or indirectly owned and/or controlled
+by the Government through its authorities, affiliates or other organisations (collectively the "state-owned entities"). During
+the year, the Group entered into extensive banking transactions with these state-owned entities including, but are not
+limited to, lending and deposit taking, taking and placing of interbank balances, entrusted lending and the provision of
+intermediary services, the sale, purchase, underwriting and redemption of bonds issued by other state-owned entities, and
+the sale, purchase, and leasing of properties and other assets.
+The transactions with state-owned entities are activities conducted in the ordinary course of business under normal terms
+and conditions and priced based on market rates, and that the dealings of the Group have not been significantly or unduly
+affected by the fact that the Group and those state-owned entities are ultimately controlled or owned by the Government.
+The Group has also established pricing policies for products and services and such pricing policies do not depend on whether
+or not the customers are state-owned entities.
+(j) Proportion of major related party transactions
+The major balances and transactions with subsidiaries have been eliminated in the consolidated financial statements. When
+calculating the proportion of related party transactions, transactions with the subsidiaries are excluded.
+31 December 2021
+Balance Percentage
+31 December 2020
+Balance
+Percentage
+Financial investments
+2,178,011
+23.53%
+2,214,553
+25.78%
+Due from banks and other financial institutions
+212,450
+25.68%
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+235
+Annual Report 2021
+ICBC
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(g) Key management personnel
+The key management personnel are those persons who have the authority and responsibility to plan, direct and control the
+activities of the Group, directly or indirectly, including members of the board of directors and the board of supervisors, and
+executive officers.
+The aggregate compensation of key management personnel for the year, other than those disclosed in note 12 above, is as
+follows:
+Salaries and other short-term employment benefits
+Post-employment benefits
+2021
+2020
+6,051
+In RMB'000
+In RMB'000
+9,154
+216
+7,142
+9,370
+The above remuneration before tax payable to key management personnel for 2020 represents the total amount of their
+annual remunerations, which includes the amount disclosed in the 2020 annual report.
+The total compensation packages for senior management have not been finalised in accordance with the regulations of the
+PRC relevant authorities. The total remuneration not yet accrued is not expected to have a significant impact on the Group's
+2021 financial statements. The total compensation packages will be further disclosed when determined by the relevant
+authorities.
+Related parties of the Group include key management personnel of the Group and their close relatives, as well as companies
+controlled, jointly controlled or significantly influenced by key management personnel or their close relatives.
+In 2021, there were no material transactions and balances with key management personnel individually or in the aggregate
+(2020: Immaterial). The Group entered into banking transactions with key management personnel in the ordinary course of
+business.
+The aggregate balance of loans and credit card overdrafts to the persons who are considered as related parties according
+to the relevant rules of Shanghai Stock Exchange was RMB12.23 million as at 31 December 2021 (31 December 2020:
+RMB15.29 million).
+The transactions between the Group and the aforementioned parties were conducted in the ordinary course of business
+under normal terms and conditions and priced based on market rates.
+6,787
+355
+9,858
+3,244
+1,797
+38,000
+30,000
+2021
+2020
+1,284
+775
+31 December
+2021
+31 December
+2020
+33,753
+30,425
+437,377
+375,028
+45,269
+45,958
+7,897
+4,945
+151,307
+183,059
+31 December
+2020
+31 December
+2021
+Credit commitments
+Derivative financial liabilities
+1,026
+1,068
+10
+54
+232
+ICBC
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(c) National Council for Social Security Fund of the People's Republic of China
+National Council for Social Security Fund (the 'SSF') is a public institution managed by the MOF. It is the management and
+operating organisation of the national social security fund. As at 31 December 2021, the SSF held 5.69% (31 December
+2020: 5.69%) of the Bank's issued share capital. The Group entered into banking transactions with the SSF in the ordinary
+course of business under normal commercial terms and the transactions are priced based on market rates. Details of the
+major transactions are as follows:
+8,519
+Balances at end of the year:
+Transactions during the year:
+Interest expense on amounts due to customers
+(d) Subsidiaries
+Balances at end of the year:
+Financial investments
+Due from banks and other financial institutions
+Loans and advances to customers
+Derivative financial assets
+Due to banks and other financial institutions
+Due to customers
+260,127
+5,004
+53,161
+Balances at end of the year:
+Debt securities purchased
+Due from banks and other financial institutions
+Loans and advances to customers
+Derivative financial assets
+Due to banks and other financial institutions
+Due to customers
+Derivative financial liabilities
+Credit commitments
+31 December
+31 December
+2021
+2020
+13,162
+12,680
+13,843
+8,549
+3,672
+983
+(e) Associates and affiliates
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+2021
+2020
+Transactions during the year:
+Interest income on financial investments
+1,386
+982
+Interest income on amounts due from banks and other financial institutions
+728
+523
+60,280
+Interest income on loans and advances to customers
+681
+Interest expense on amounts due to banks and other financial institutions
+Fee and commission income
+599
+993
+5,636
+6,233
+The major balances and transactions with subsidiaries have been eliminated in the consolidated financial statements.
+Annual Report 2021
+233
+653
+Interest expense on amounts due to banks and other financial institutions
+Interest expense on amounts due to customers
+24.04%
+7,466
+Impairment losses on assets
+(236,227)
+(3,346)
+(16,885)
+(121,173)
+(94,823)
+Operating expenses
+860,880
+5,057
+111,278
+346,172
+398,373
+Operating income
+37,176
+5,057
+24,292
+(2,800)
+10,627
+Other income/(expense), net (i)
+(162,981)
+133,024
+(29,341)
+(1,234)
+Profit for the year
+(74,683)
+Income tax expense
+424,899
+3,346
+85,326
+195,658
+140,569
+Profit before taxation
+2,869
+2,869
+Share of results of associates and joint ventures
+422,030
+477
+85,326
+195,658
+ICBC
+Operating profit
+(202,623)
+(9,067)
+1,182
+53,760
+78,082
+Transactions between segments mainly represent the provision of funding to and from individual segments. The internal
+transfer pricing of these transactions are determined with reference to the market rates and have been reflected in the
+performance of each segment. Net interest income and expense arising on internal fund transfer are referred to as "internal
+net interest income or expense". Net interest income and expense relating to third parties are referred to as "external net
+interest income or expense".
+Management monitors the operating results of the Group's business units separately for the purpose of making decisions
+about resources allocation and performance assessment. Segment information is prepared in conformity with the accounting
+policies adopted for preparing and presenting the financial statements of the Group.
+This segment covers the Group's assets, liabilities, income and expenses that are not directly attributable or cannot be
+allocated to a segment on a reasonable basis.
+Other
+The treasury operations segment covers the Group's treasury operations which include money market transactions,
+investment securities, foreign exchange transactions and the holding of derivative positions, for its own accounts or on
+behalf of customers.
+Treasury operations
+The personal banking segment covers the provision of financial products and services to individual customers. The products
+and services include personal loans, deposit-taking activities, card business, personal wealth management services and
+various types of personal intermediary services.
+Personal banking
+The corporate banking segment covers the provision of financial products and services to corporations, government agencies
+and financial institutions. The products and services include corporate loans, trade financing, deposit-taking activities,
+corporate wealth management services, custody activities and various types of corporate intermediary services.
+Corporate banking
+The Group is organised into different operating segments, namely corporate banking, personal banking and treasury
+operations, based on internal organisation structure, management requirements and internal reporting system.
+(a) Operating segments
+48. SEGMENT INFORMATION
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+0.50%
+6.08%
+66,479
+2,232
+Percentage
+Annual Report 2021
+237
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(165,563)
+148,301
+17,262
+Net fee and commission income
+Internal net interest income/(expense)
+690,680
+251,367
+146,911
+292,402
+350,216
+External net interest income
+Other
+Treasury
+operations
+banking
+banking
+Personal
+Corporate
+2021
+Segment revenues, expenses, results, assets and liabilities include items directly attributable to a segment as well as those
+that can be allocated on a reasonable basis. The basis for allocation is mainly based on occupation of or contribution to
+resources. Income taxes are managed on a group basis and are not allocated to operating segments.
+(In RMB millions, unless otherwise stated)
+Total
+Other segment information:
+Depreciation and amortisation
+Capital expenditure
+0.55%
+15,713
+0.58%
+2021
+Interest income
+Interest expense
+Amount Percentage
+64,456
+3,214
+5.55%
+0.68%
+236
+ICBC
+238
+2,730,369
+98,067
+31,896,125
+31,798,058
+198,061
+4,425,332
+13,213,984
+14,895
+Credit commitments
+0.19%
+47,032
+0.04%
+15,663
+0.09%
+Derivative financial assets
+9,172
+12.05%
+23,913
+17.82%
+Due to banks and other financial institutions
+13,960,681
+299,519
+10.98%
+Derivative financial liabilities
+8,754
+12.27%
+23,290
+16.52%
+Due to customers
+99,904
+0.38%
+10.25%
+Loans and advances to customers
+35,171,383
+80,661
+10,901
+10,452
+Includes intangible assets, goodwill, long-term deferred expenses, right-of-use assets and other non-current assets.
+(ii)
+Includes net trading income, net gains on financial investments and other net operating income.
+(i)
+1,055,600
+1,674,769
+Credit commitments
+Other segment information:
+Total liabilities
+Unallocated liabilities
+Segment liabilities
+Total assets
+Unallocated assets
+Other non-current assets (ii)
+Property and equipment
+Including: Investments in associates and joint ventures
+Segment assets
+3,370
+125
+24,848
+18,219
+9,944
+6,304
+20,945
+290,296
+19,546
+37,432
+120,366
+112,952
+43,468
+61,782
+79,259
+61,782
+169,482
+14,086,517
+8,399,240
+12,436,885
+31 December 2021
+43,331
+215
+5,870
+19,027
+35,092,124
+Amount
+110
+Interest income on loans and advances to customers
+17,218
+16,451
+2020
+31 December
+31 December
+2021
+(d) Legal proceedings and arbitrations
+Over three years but within five years
+Over five years
+Over two years but within three years
+Over one year but within two years
+Within one year
+At the end of the reporting period, the Group's total future minimum lease receivables in respect of non-cancellable
+operating leases of assets are as follows:
+(c) Operating leases
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+229
+Annual Report 2021
+1,106,377
+2020
+15,920
+16,043
+15,937
+18,975
+2,361,289
+2,783,961
+2,783,778
+2,361,366
+2020
+31 December
+31 December
+2021
+Designated loans
+Designated funds
+(f) Designated funds and loans
+2021
+1,082,099
+As at 31 December 2021, the Group's outstanding securities underwriting commitments were RMB6,350 million (31
+December 2020: Nil).
+(e) Redemption commitments of government bonds and securities underwriting
+commitments
+In the opinion of management, the Group has made adequate allowance for any probable losses based on the current facts
+and circumstances, and the ultimate outcome of these lawsuits and arbitrations will not have a significant impact on the
+financial position or operations of the Group.
+The Group is involved in lawsuits and arbitrations during its normal course of operations. As at 31 December 2021, there
+were a number of legal proceedings and arbitrations outstanding against the Bank and/or its subsidiaries with a total claimed
+amount of RMB6, 165 million (31 December 2020: RMB4,928 million).
+158,054
+135,796
+73,626
+59,648
+32,192
+27,840
+As an underwriting agent of the MOF, the Bank underwrites certain PRC government bonds and sells the bonds to the
+general public. The Bank is obliged to redeem these bonds at the discretion of the holders at any time prior to maturity. The
+redemption price for the bonds is based on the nominal value of the bonds plus any interest accrued up to the redemption
+date. The MOF will not provide funding for the early redemption of these PRC government bonds on a back-to-back basis
+but is obliged to repay the principal and the respective interest upon maturity. The redemption obligations, which represent
+the nominal value of government bonds underwritten and sold by the Group, but not yet matured as at 31 December 2021
+were RMB75,553 million (31 December 2020: RMB81,112 million). Management expects that the redemption obligation of
+these PRC government bonds by the Bank prior to maturity will not be material.
+The designated funds represent the funding that the trustors have instructed the Group to use to make loans to third parties
+as designated by them. The credit risk remains with the trustors.
+31 December
+2,711,454
+- Non-financing letters of guarantees
+- Financing letters of guarantees
+Guarantees issued
+Bank acceptances
+The contractual amounts of credit commitments by category are set out below. The amounts disclosed in respect of loan
+commitments and undrawn credit card limits are under the assumption that the amounts will be fully advanced. The
+amounts for bank acceptances, letters of credit and guarantees represent the maximum potential losses that would be
+recognised at the end of the reporting period had the counterparties failed to perform as contracted.
+The Group has outstanding commitments to extend credit including approved loans and undrawn credit card limits.
+The Group provides letters of credit and financial guarantees to guarantee the performance of customers to third parties.
+Bank acceptances comprise undertakings by the Group to pay bills of exchange drawn on customers. The Group expects
+most acceptances to be settled simultaneously with the reimbursement from the customers.
+(b) Credit commitments
+42,797
+2020
+31 December
+31,307
+2021
+31 December
+Contracted but not provided for
+At the end of the reporting period, the Group had capital commitments as follows:
+46. COMMITMENTS AND CONTINGENT LIABILITIES
+(a) Capital commitments
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+52
+Sight letters of credit
+Usance letters of credit and other commitments
+Loan commitments
+With an original maturity of under one year
+With an original maturity of one year or over
+Undrawn credit card limits
+Credit risk-weighted assets of credit commitments
+2,730,369
+1,021,038
+1,069,406
+574,420
+497,892
+91,410
+50,199
+129,015
+114,733
+31 December
+51,517
+446,460
+444,418
+54,361
+50,114
+2020
+343,233
+449,141
+2021
+31 December
+31 December
+54,466
+The designated loans represent the loans granted to specific borrowers designated by the trustors on their behalf according
+to the entrust agreements signed by the Group and the trustors. The Group does not bear any risk.
+2020
+ICBC
+31 December
+31 December
+2021
+Credit commitments
+Due to customers
+Derivative financial liabilities
+Due to banks and other financial institutions
+Derivative financial assets
+Loans and advances to customers
+Due from banks and other financial institutions
+Debt securities purchased
+Balances at end of the year:
+Huijin holds equity interests in certain other banks and financial institutions under the direction of the State Government.
+The Group enters into transactions with these banks and financial institutions in the ordinary course of business under
+normal commercial terms and the transactions are priced based on market rates. Management considers that these banks
+and financial institutions are competitors of the Group. Details of major transactions during the year conducted with these
+banks and financial institutions are as follows:
+149
+799
+561
+74
+2,360
+2,306
+Interest income on loans and advances to customers
+Interest expense on amounts due to customers
+2020
+536,655
+633,728
+198,607
+230
+665
+Interest income on amounts due from banks and other financial institutions
+18,634
+17,805
+Interest income on debt securities purchased
+Transactions during the year:
+2020
+2021
+Interest income on debt securities purchased
+12,690
+20,007
+6,318
+917
+8,750
+299,691
+289,661
+20,669
+7,375
+10,610
+3,794
+251,578
+1,065
+Transactions during the year:
+582
+2021
+42,953
+2020
+2021
+1,495,673
+1,563,353
+31 December
+2020
+31 December
+2021
+Transactions during the year:
+The PRC government bonds and the special government bond
+Balances at end of the year:
+The MOF is a ministry under the State Council of the PRC, primarily responsible for, among others, state fiscal revenues,
+expenses and taxation policies. As at 31 December 2021, the MOF directly owned approximately 31.14% (31 December
+2020: approximately 31.14%) of the issued share capital of the Bank. The Group enters into banking transactions with the
+MOF in its ordinary course of business. Details of the major transactions are as follows:
+(a) The MOF
+In addition to the transactions detailed elsewhere in these consolidated financial statements, the Group had the following
+transactions with related parties during the year:
+47. RELATED PARTY DISCLOSURES
+The Group provides custody, trust and asset management services to third parties. Revenue from such activities is included in
+"net fee and commission income" set out in Note 7. Those assets held in a fiduciary capacity are not included in the Group's
+consolidated statement of financial position.
+(g) Fiduciary activities
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+2020
+43,609
+Other related party transactions between the Group and enterprises under the control or joint control of the MOF are
+disclosed in note 47(i) "transactions with state-owned entities in the PRC".
+Interest income on the government bonds
+Central Huijin Investment Ltd. ("Huijin") is a wholly-owned subsidiary of China Investment Corporation, and in accordance
+with the authorisation of the State Government, Huijin makes equity investments in major state-owned financial enterprises,
+and shall, to the extent of its capital contribution, exercise the rights and perform the obligations as an investor on behalf
+of the Government in accordance with applicable laws, to achieve the goal of preserving and enhancing the value of state-
+owned financial assets. Huijin does not conduct any other businesses or commercial activities nor intervene in the day-to-
+day business operations of the financial enterprises in which it invests. Huijin was established on 16 December 2003 with a
+total registered and paid-in capital of RMB828,209 million. As at 31 December 2021, Huijin directly owned approximately
+34.71% (31 December 2020: approximately 34.71%) of the issued share capital of the Bank.
+15,957
+(b) Huijin
+4,005
+72,472
+64,841
+2020
+2021
+31 December
+31 December
+Due to customers
+60,331
+Debt securities purchased
+Loans and advances to customers
+231
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+Annual Report 2021
+The Group entered into banking transactions with Huijin in the ordinary course of business under normal commercial terms
+and the transactions are priced based on market rates. Details of the major transactions are as follows:
+Balances at end of the year:
+As at 31 December 2021, bonds issued by Huijin ("the Huijin Bonds") held by the Group are of an aggregate face value
+of RMB63.66 billion (31 December 2020: RMB71.39 billion), with terms ranging from one to thirty years and coupon rates
+ranging from 2.15% to 4.38% per annum. The Huijin Bonds are government-backed bonds, short-term bills and medium-
+term notes. The Group's subscription of the Huijin Bonds was conducted in the ordinary course of business, in compliance
+with relevant regulatory and the corporate governance requirements of the Group.
+(In RMB millions, unless otherwise stated)
+ventures
+58,031
+2,869
+2,869
+Profit for the year
+Income tax expense
+Profit before taxation
+Share of results of associates and joint
+47,115
+42,146
+1,259
+65,477
+64,383
+59,699
+83,920
+58,031
+Operating profit
+83,920
+422,030
+59,699
+4,639
+47,115
+3,845
+(202,623)
+6,089
+Capital expenditure
+24,848
+2,155
+1,450
+4,040
+3,358
+3,939
+2,584
+3,412
+3,910
+Depreciation and amortisation
+Other segment information:
+350,216
+(74,683)
+424,899
+45,015
+1,259
+65,477
+64,383
+(10,715)
+74,045
+(22,896)
+136,544
+135,488
+Operating income
+37,176
+1,503
+25,059
+114
+(2,675)
+(1,428)
+107,474
+(2,275)
+(3,641)
+22,780
+Other income/(expense), net (i)
+133,024
+(1,572)
+12,120
+3,710
+2,361
+11,540
+(2,261)
+(15,400)
+145,660
+126,799
+(25,034)
+(44,135)
+(21,724)
+(17,638)
+(45,081)
+Impairment losses on assets
+(236,227)
+69
+(21,184)
+105,357
+(12,923)
+(33,208)
+(37,142)
+(26,051)
+(34,986)
+(32,376)
+Operating expenses
+860,880
+(69)
+29,582
+(38,426)
+4,100
+13,729
+1,501
+5,645,178
+8,944,022
+5,470,908
+Liabilities by geographical areas
+35,171,383
+Total assets
+79,259
+Unallocated assets
+80,661
+23,613
+2,317
+9,685
+8,457
+7,087
+6,075
+7,371
+16,056
+Other non-current assets (ii)
+290,296
+7,928,583
+3,568,847
+3,745,729
+1,539,014
+Includes net trading income, net gains on financial investments and other net operating income.
+Includes intangible assets, goodwill, long-term deferred expenses, right-of-use assets and other non-current assets.
+(ii)
+2,730,369
+631,815 (3,200,118)
+147,856
+611,013
+450,171
+791,688 1,001,597
+1,172,580
+157,573
+1,123,767
+Other segment information:
+31,896,125
+Total liabilities
+8,623
+98,067
+Unallocated liabilities
+31,798,058
+(6,133,218)
+1,088,995
+Credit commitments
+8,865
+23,331
+18,911
+China
+Rim
+River Delta
+River Delta
+Head Office
+Overseas
+Northeastern
+Western
+Central
+China
+Bohai
+Yangtze
+Chinese mainland (HO and domestic branches)
+31 December 2021
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+ICBC
+240
+43,331
+14,822
+Pearl
+4,625
+China
+Eliminations
+20,726
+33,190
+13,971
+Property and equipment
+61,782
+61,782
+joint ventures
+Including: Investments in associates and
+35,092,124
+and other
+(6,133,218)
+1,333,077
+4,553,489
+3,786,925
+5,186,815
+5,870,705
+8,248,981
+8,145,032
+Assets by geographical areas
+Total
+4,100,318
+(i)
+(3,508)
+ICBC
+Total assets
+67,713
+Unallocated assets
+82,523
+25,969
+2,256
+33,345,058
+9,950
+7,534
+7,817
+14,352
+Other non-current assets (ii)
+286,279
+154,731
+8,580
+Liabilities by geographical areas
+7,250,493
+7,840,257
+1,077,366
+Credit commitments
+Other segment information:
+30,435,543
+Total liabilities
+92,666
+Unallocated liabilities
+30,342,877
+(6,356,682)
+838,331
+1,360,916
+3,811,490
+3,203,936
+7,507,515
+4,886,621
+9,088
+23,164
+18,374
+21,477
+and other
+China
+China
+China
+Rim
+River Delta
+River Delta
+Head Office
+Overseas
+Northeastern
+Western
+Central
+Bohai
+Pearl
+Yangtze
+Eliminations
+999,018
+Total
+7,183,515
+12,791
+32,725
+13,929
+Property and equipment
+41,206
+41,206
+joint ventures
+33,277,345
+(6,356,671)
+4,024,527
+1,246,742
+4,249,027
+3,334,445
+4,994,061
+4,935,763
+9,665,936
+Chinese mainland (HO and domestic branches)
+683,005
+371,823
+It is probable that the borrower will be insolvent or carry out other financial restructurings;
+•
+•
+In light of economic, legal or other factors, the Group has made concessions to a borrower in financial difficulties,
+which would otherwise have been impossible under normal circumstances;
+It has been overdue for more than 90 days;
+A financial asset is generally considered to be credit-impaired if:
+Due to serious financial difficulties, the financial asset cannot continue to be traded in an active market;
+Impairment assessment
+(iii)
+(ii) Write-offs of loan; or
+The principal or interest of loan is past due more than 90 days to the Group;
+(i)
+The Group defines a retail business borrower as in default when any single credit asset of a borrower meets one or more of
+the following criteria:
+The corporate borrower has the matters refer to in (i) or (ii) above in other financial institutions.
+The Group considers the borrower is unlikely to pay its credit obligations to the Group in full.
+There are other objective evidences that indicate the financial asset is impaired.
+Parameters, assumptions and estimation techniques
+ECL for a financial instrument is measured at an amount equal to 12-month ECL or lifetime ECL depending on whether a
+significant increase in credit risk on that financial instrument has occurred since initial recognition and whether an asset is
+considered to be credit-impaired. The loss allowance for loans and advances to customers, other than those corporate loans
+and advance to customers which are credit-impaired, is measured using the risk parameters method. The key parameters
+include Probability of Default ("PD"), Loss Given Default ("LGD"), and Exposure at Default ("EAD"), considering the time
+value of money.
+The estimated recoverable cash flows from projects and liquidation;
+•
+The borrower's ability to improve performance when a financial difficulty arises;
+•
+The sustainability of the borrower's business plan;
+The impairment loss on credit-impaired corporate loans and advance to customers applied discounted cash flow method. If
+there is objective evidence that an impairment loss on a loan or advance has incurred, the amount of the loss is measured as
+the difference between the asset's gross carrying amount and the present value of estimated future cash flows discounted
+at the asset's original effective interest rate. The allowance for impairment loss is deducted in the carrying amount. The
+impairment loss is recognised in the consolidated statement of profit or loss. In determining allowances on an individual
+basis, the following factors are considered:
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+ICBC
+244
+There have been no significant changes in estimation techniques or significant assumptions adopted in ECL calculation
+during the year.
+The assumptions underlying the ECL calculation, such as how the PDs and LGDs of different maturity profiles change are
+monitored and reviewed on a quarterly basis by the Group.
+EAD refers to the total amount of on- and off-balance sheet exposures in the event of default and is determined based on
+the historical repayment records.
+LGD is the magnitude of the likely loss if there is a default in light of forward-looking information. LGD depends on the type
+of counterparty, the method and priority of the recourse, and the type of collaterals, taking the forward-looking adjustments
+into account.
+PD is the possibility that a customer will default on its obligation within a certain period of time in light of forward-looking
+information. The Group's PD is adjusted based on the results of the Internal Ratings-Based Approach under the New Basel
+Capital Accord, taking the forward-looking information into account and deducting the prudential adjustment to reflect the
+debtor's point-in-time PD under the current macro-economic environment.
+The corporate borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to
+actions such as liquidation against collateral; or
+(iii)
+(ii)
+The principal or interest of loan is past due more than 90 days to the Group;
+ICBC
+242
+The Bank maintains a dual-reporting risk management structure at the branch level. Under this structure, the risk
+management department of the branches report to both the Group risk management department and the management of
+the branches.
+The Group has clearly defined the roles of each department in monitoring financial risks within the Group. The Credit and
+Investment Management Department monitors credit risk, the Risk Management Department together with the Asset and
+Liability Management Department monitor market and liquidity risks, and the Internal Control and Compliance Department
+monitors operational risk. The Risk Management Department is primarily responsible for establishing and coordinating a
+comprehensive risk management framework, preparing consolidated reports on credit risk, market risk and operational risk
+and reporting directly to the Chief Risk Officer.
+The President supervises risk management and reports directly to the Board. He chairs two management committees
+including the Risk Management Committee and the Asset and Liability Management Committee, which set the risk
+management strategies and appetite, evaluate and formulate risk management policies and procedures, and make
+recommendations through the President to the Risk Management Committee of the Board. The Chief Risk Officer assists the
+President to supervise the Bank's risk management.
+The board of directors (the "Board") has the ultimate responsibility for risk management and oversees the Group's risk
+management functions through the Risk Management Committee and the Audit Committee of the Board.
+49. FINANCIAL RISK MANAGEMENT
+(ii) Includes intangible assets, goodwill, long-term deferred expenses, right-of-use assets and other non-current assets.
+Includes net trading income, net gains or losses on financial investments and other net operating income.
+(i)
+2,711,454
+(2,592,541)
+675,725
+145,460
+565,802
+(a) Credit risk
+785,796
+Notes to the Consolidated Financial Statements
+Definition and scope
+(i)
+The Group defines a corporate borrower as in default when it meets one or more of the following criteria:
+Definition of default
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+243
+Annual Report 2021
+The assessment of significant increase in credit risk and whether the assets have been impaired since initial recognition is
+performed at least on a quarterly basis for financial instruments held by the Group. The Group takes into consideration all
+reasonable and supportable information (including forward-looking information) that reflects significant change in credit
+risk for the purposes of classifying financial instruments. The main considerations are regulatory and operating environment,
+internal and external credit risk rating, debt-servicing capacity, operating capabilities, contractual terms, and repayment
+records. The Group compares the risk of default of a single financial instrument or a portfolio of financial instruments with
+similar credit risk characteristics as at the end of the reporting period and its risk of default at the date of initial recognition
+to determine changes in the risk of default over the expected lifetime of a financial instrument or a portfolio of financial
+instruments. In determining whether credit risk of a financial instrument has increased significantly since initial recognition,
+the Group considers factors indicating whether the probability of default has risen sharply, whether the financial instrument
+has been past due for more than 30 days, whether the market price has been falling continuously and other indicators.
+The Group has provided credit facilities for further extension of deferral in principal repayment and interest payment to the
+inclusive loans to micro and small-sized businesses in accordance with the government's regulations. The Group classifies the
+credit risk based on the actual situation of the borrower and the judgement of the substantive risk of the business for those
+loans with deferred principal repayment and interest payment. However, the temporary deferral in principal repayment and
+interest payment are not considered as an automatic trigger event for a significant increase in credit risk.
+Significant increase in credit risk
+The Group classifies financial instruments into three stages and makes provisions for expected credit loss accordingly,
+depending on whether credit risk on that financial instrument has increased significantly and whether the assets have been
+impaired since initial recognition. Refer to Note 4(10) Impairment of financial assets for the definition of the three stages.
+Stage of financial instruments
+Credit risk assessment method
+The Group is also exposed to credit risk in other areas. The credit risk arising from derivative financial instruments is limited
+to derivative financial assets recorded in the consolidated statement of financial position. In addition, the Group provides
+guarantees for customers and may therefore be required to make payments on their behalf. These payments would be
+recovered from customers in accordance with the terms of the agreement. Therefore, the Group assumes a credit risk similar
+to that arising from loans and applies the same risk control procedures and policies to reduce risks.
+Credit risk is the risk of loss arising from a borrower or counterparty's failure to perform its obligations. Operational failures
+which result in unauthorised or inappropriate guarantees, financial commitments or investments by the Group may also give
+rise to credit risk. The Group's credit risk is mainly attributable to its loans, due from banks and other financial institutions
+and financial investments.
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+•
+31 December 2020
+Assets by geographical areas
+(3,455)
+2020
+Chinese mainland (HO and domestic branches)
+Yangtze
+Pearl
+Bohai
+(1,997)
+Central
+Northeastern
+Overseas
+Head Office
+River Delta
+River Delta
+Rim
+Western
+(2,936)
+2,902
+16,324
+(22,438)
+Operating expenses
+800,075
+(100)
+60,588
+32,342
+121,336
+98,851
+145,927
+102,902
+130,424
+107,805
+Operating income
+22,095
+1,169
+China
+China
+China
+and other
+13,027
+1,587
+Net fee and commission income
+42,859
+23,086
+15,433
+16,336
+8,646
+12,950
+2,445
+10,729
+(1,269)
+131,215
+Other income/(expense), net (i)
+14,900
+15,508
+(30,917)
+20,533
+14,623
+Eliminations
+Total
+External net interest income
+270,017
+69,071
+74,150
+20,128
+71,669
+95,814
+13,968
+31,948
+646,765
+Internal net interest (expense)/income
+(219,971)
+41,775
+112,918
+Including: Investments in associates and
+(23,339)
+(29,820)
+3,382
+3,849
+2,533
+3,168
+2,883
+Depreciation and amortisation
+3,931
+Other segment information:
+(74,441)
+392,126
+11
+27,188
+2,593
+66,598
+317,685
+1,425
+2,277
+23,448
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+241
+Annual Report 2021
+51,530
+20,457
+1,356
+5,413
+4,072
+6,346
+3,925
+5,269
+4,692
+Capital expenditure
+42,655
+76,322
+67,383
+75,295
+(202,668)
+(14,543)
+(17,622)
+(19,625)
+(26,376)
+(36,824)
+(12,180)
+(24,212)
+(51,286)
+Impairment losses on assets
+(206,585)
+111
+(20,161)
+(12,127)
+(35,113)
+Operating profit
+(32,781)
+34,081
+67,383
+34,081
+1,304
+1,304
+Profit for the year
+Income tax expense
+Profit before taxation
+ventures
+Share of results of associates and joint
+390,822
+11
+25,884
+2,593
+66,598
+42,655
+76,322
+75,295
+(1,304)
+The availability of other financial support and the realisable value of collateral; and
+The timing of the expected cash flows.
+6,988,877
+2020
+31 December
+31 December
+2021
+Total
+Loans secured by mortgages
+Pledged loans
+6,259,230
+Guaranteed loans
+The composition of the Group's gross loans and advances to customers (excluding accrued interest) by collaterals is analysed
+as follows:
+By collaterals
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+247
+Unsecured loans
+2,459,887
+2,260,445
+9,497,898
+Overdue
+for over
+31 December 2021
+Overdue
+for 1 to
+3 years
+1 year
+90 days
+91 days to
+for 1 to
+Overdue for
+Overdue
+The composition of the Group's gross overdue loans and advances to customers (excluding accrued interest) by collaterals is
+as follows:
+Overdue loans and advances to customers
+18,624,308
+20,667,245
+1,401,565
+1,720,583
+8,703,068
+18,624,308
+Annual Report 2021
+20,667,245
+Total for loans and advances to customers
+239,155
+Mining
+272,189
+312,352
+Science, education, culture and sanitation
+292,748
+343,860
+Construction
+310,559
+357,229
+Finance
+549,412
+559,559
+Wholesale and retail
+958,314
+219,701
+3 years
+Other
+341,885
+406,296
+527,758
+Discounted bills
+7,115,279
+7,944,781
+Subtotal for personal loans
+865,326
+879,655
+Other
+6,249,953
+7,065,126
+Personal mortgage and business loans
+11,102,733
+12,194,706
+Subtotal for corporate loans
+349,997
+932,390
+Total
+22,405
+66,039
+7,639
+18,985
+20,100
+19,315
+Guaranteed loans
+Loans secured by mortgages
+79,246
+16,796
+23,590
+34,753
+Unsecured loans
+Total
+3 years
+4,107
+40,909
+27,878
+31,687
+248
+267,507
+21,257
+72,467
+74,820
+98,963
+Total
+13,587
+1,350
+4,999
+3,252
+3,986
+Pledged loans
+108,635
+8,161
+3 years
+1 year
+90 days
+Overdue
+for over
+8,546
+33,485
+30,029
+38,491
+Loans secured by mortgages
+57,880
+6,117
+26,406
+15,031
+10,326
+Guaranteed loans
+77,491
+3,269
+29,315
+22,502
+110,551
+Unsecured loans
+Pledged loans
+2,495
+Overdue
+for 1 to
+91 days to
+for 1 to
+Overdue for
+Overdue
+31 December 2020
+254,901
+19,153
+93,247
+70,057
+72,444
+Total
+8,979
+1,221
+4,041
+1,222
+•
+Real estate
+1,152,584
+Financial investments
+18,136,328
+739,288
+134,155
+76,140
+663,496
+20,109,200
+1,081,897
+Financial investments measured at FVTPL
+827,150
+3,035,566
+Loans and advances to customers
+Reverse repurchase agreements
+Derivative financial assets
+Due from banks and other financial institutions
+Balances with central banks
+3,472,962
+465,064
+Financial investments measured at FVTOCI
+1,704,164
+35,016,818
+36,737,042
+2,711,454
+2,730,369
+(ii) Risk concentrations
+Total maximum credit risk exposure
+Credit commitments
+32,305,364
+34,006,673
+377,563
+294,960
+6,265,668
+6,830,933
+― Financial investments measured at amortised cost
+Other
+638,485
+1,459,018
+2020
+2021
+31 December
+31 December
+2021
+19,134
+31 December
+31 December
+Impaired loans and advances to customers included in above
+Rescheduled loans and advances to customers
+The following table includes carrying amount of rescheduled loans and advance to customers:
+Such modifications include restructuring the loan to provide extended payment term arrangements, payment holidays
+or payment forgiveness. Restructuring policies and practices are based on indicators or criteria which, in the judgement
+of management, indicate that payment will most likely continue, and reviewed regularly. Such restructures are especially
+common for medium-term loans. The classification of a rescheduled loan shall not be upgraded unless it has met certain
+criteria and after an observation period of at least 6 months.
+The Group might modify the terms of loan with a customer based on commercial renegotiations, or when the customer is in
+financial difficulty, with a view to maximise the recovery of loan.
+Financial assets contract modification
+The Group has carried out sensitivity analysis of macro-economic indicators used in forward-looking measurement. As at
+31 December 2021, when the key economic indicators in the neutral scenario moved up or down by 10%, the ECL did not
+change by more than 5% (31 December 2020: less than 5%).
+As at 31 December 2021, the Group has taken into account different macro-economic scenarios, combined with the impact
+of factors such as COVID-19 on economic development trends, and made forward-looking forecasts of macro-economic
+indicators. Of which, the year-on-year GDP growth rate used to estimate ECL is 5.5% in the neutral scenario for 2022.
+When calculating the weighted average ECL provision, the Group determines the optimistic, neutral and pessimistic scenarios
+and their weightings through a combination of macro-statistical analysis and expert judgement.
+The calculation of ECL incorporates forward-looking information. The Group has performed historical data analysis and
+identified Gross Domestic Product ("GDP"), Consumer Price Index ("CPI"), Purchasing Managers' Index ("PMI") and other
+macro-economic indicators as impacting the ECL for each portfolio. The impact of these economic variables on the PD and
+LGD has been determined by performing statistical regression analysis to understand the correlations among the historical
+changes of the economic variables, PD and LGD. Forecasts of these economic variables are carried out at least quarterly by
+the Group that provide the best estimate view of the economy over the next year.
+Forward-looking information contained in ECL
+It may not be possible to identify a single, or discrete events that result in the impairment, but it may be possible to identify
+impairment through the combined effect of several events. The impairment losses are evaluated at the end of each reporting
+period, unless unforeseen circumstances require more careful attention.
+2020
+Credit risk is often greater when counterparties are concentrated in one single industry or geographic location, or have
+comparable economic features. In addition, different geographic areas and industrial sectors have their unique characteristics
+in terms of economic development, and could present a different credit risk.
+11,960
+4,504
+As at the end of the reporting period, the maximum credit risk exposure of the Group without taking into account of any
+collateral and other credit enhancements is set out below:
+Maximum exposure to credit risk without taking into account of any collateral and other
+credit enhancements
+(i)
+In 2021, the Group took possession of collateral held as security with a carrying amount of RMB41 million (2020: RMB377
+million).
+The Group monitors the market value of the collaterals and when needed, require additional collateral according to
+agreements. The Group disposes of repossessed assets in an orderly manner.
+The Group prefers more liquid collateral with relatively stable market value and does not accept collateral that is illiquid, with
+difficulties in registration or high fluctuations in market value. The value of collateral should be appraised and confirmed by
+the Group or valuation specialists engaged by the Group. The value of collateral should adequately cover the outstanding
+balance of loans. The Group takes into consideration the types of collateral, state of condition, liquidity, price volatility and
+realisation cost to determine the loan-to-value ratio of collateral. All collateral has to be registered in accordance with the
+relevant laws and regulations. The credit officers inspect the collateral and assess the changes in the value of collateral
+regularly.
+Retail loans are mainly collateralised by residential properties. As at 31 December 2021, the gross carrying amount of retail
+loans amounted to RMB7,944,781 million (31 December 2020: RMB7,115,279 million), of which credit exposure covered by
+collateral amounted to RMB7,056,652 million (31 December 2020: RMB6,269,321 million).
+Reverse repurchase business is mainly collateralised by bills and investment securities. As part of certain reverse repurchase
+agreements, the Group has received securities that it is allowed to sell or repledge in the absence of default by their owners.
+Corporate loans and discounted bills are mainly collateralised by properties or other assets. As at 31 December 2021, the
+gross carrying amount of corporate loans and discounted bills amounted to RMB12,722,464 million (31 December 2020:
+RMB11,509,029 million), of which credit exposure covered by collateral amounted to RMB3,849,616 million (31 December
+2020: RMB3,534,852 million).
+The amount and type of collateral required depends on the assessment of credit risk of the counterparty. Guidelines are in
+place specifying the types of collateral and valuation parameters which can be accepted.
+Collaterals and other credit enhancements
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+245
+Annual Report 2021
+7,455
+1,085,151
+246
+Notes to the Consolidated Financial Statements
+100.00%
+8.01%
+1,492,087
+6.92%
+1,429,769
+20,667,245
+Total
+18,624,308
+Overseas and other
+841,595
+4.33%
+895,238
+Northeastern China
+18.09%
+3,369,916
+4.52%
+100.00%
+By industry distribution
+The composition of the Group's gross loans and advances to customers (excluding accrued interest) by industry is analysed as
+follows:
+Production and supply of electricity, heating, gas and water
+1,177,193
+1,388,883
+Water, environment and public utility management
+1,517,265
+1,739,367
+Leasing and commercial services
+1,718,400
+1,801,933
+Manufacturing
+2,659,916
+3,017,397
+Transportation, storage and postal services
+31 December
+2020
+31 December
+2021
+18.13%
+3,746,867
+Western China
+14.98%
+791,994
+Bohai Rim
+Pearl River Delta
+Yangtze River Delta
+Head Office
+Percentage
+Amount
+Percentage
+Amount
+31 December 2020
+31 December 2021
+The composition of the Group's gross loans and advances to customers (excluding accrued interest) by geographical
+distribution is analysed as follows:
+By geographical distribution
+(1) Loans and advances to customers
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+3.83%
+ICBC
+772,372
+4,163,732
+2,789,085
+15.16%
+3,133,539
+Central China
+16.27%
+3,030,552
+16.31%
+3,371,325
+14.74%
+2,746,019
+15.17%
+3,134,781
+19.24%
+3,582,682
+20.15%
+4.15%
+17,067
+6,065
+21,368
+317,685
+Profit for the year
+(74,441)
+Income tax expense
+392,126
+2,555
+68,199
+174,469
+146,903
+Other segment information:
+Profit before taxation
+1,304
+Share of results of associates and joint ventures
+390,822
+1,251
+68,199
+174,469
+146,903
+Operating profit
+(202,668)
+1,304
+(532)
+Depreciation and amortisation
+9,262
+Property and equipment
+41,206
+41,206
+Including: Investments in associates and joint ventures
+33,277,345
+117,239
+14,366,145
+7,454,567
+11,339,394
+10,360
+Segment assets
+51,530
+600
+7,696
+20,475
+22,759
+Capital expenditure
+23,448
+317
+3,509
+31 December 2020
+110,846
+(1,002)
+(161,027)
+(164,766)
+131,818
+32,948
+Internal net interest income/(expense)
+646,765
+240,078
+131,043
+275,644
+External net interest income
+Net fee and commission income
+Total
+operations
+banking
+banking
+Treasury
+Personal
+Corporate
+2020
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+Other
+(40,107)
+76,173
+1,281
+Impairment losses on assets
+(206,585)
+(2,642)
+(14,730)
+(103,482)
+(85,731)
+Operating expenses
+800,075
+4,425
+53,761
+83,931
+393,661
+Operating income
+22,095
+4,425
+7,338
+1,436
+8,896
+Other income, net (i)
+131,215
+318,058
+101,573
+14,503
+36,616
+China
+China
+China
+Rim
+River Delta
+River Delta
+Head Office
+Overseas
+Northeastern
+and other
+Western
+Bohai
+Pearl
+Yangtze
+2021
+Chinese mainland (HO and domestic branches)
+ventures.
+Branches located outside Chinese mainland, domestic and overseas subsidiaries, and investments in associates and joint
+Overseas and other
+including Liaoning, Heilongjiang, Jilin and Dalian.
+Central
+including Chongqing, Sichuan, Guizhou, Yunnan, Guangxi, Shaanxi, Gansu, Qinghai, Ningxia,
+Xinjiang, Inner Mongolia and Tibet; and
+Eliminations
+External net interest income
+37,244
+47,014
+Net fee and commission income
+(2,025)
+15,066
+12,805
+20,293
+106,166
+11,381
+Total
+39,174
+Internal net interest (expense)/income
+690,680
+38,891
+12,041
+105,129
+77,869
+24,702
+83,851
+79,643
+(202,860)
+including Shanxi, Henan, Hubei, Hunan, Anhui, Jiangxi and Hainan;
+268,554
+including Guangdong, Shenzhen, Fujian and Xiamen;
+Total liabilities
+92,666
+Unallocated liabilities
+30,342,877
+107,487
+4,376,074
+12,126,286
+13,733,030
+Segment liabilities
+30,435,543
+Total assets
+Unallocated assets
+82,523
+15,357
+6,601
+18,012
+42,553
+Other non-current assets (ii)
+286,279
+including Beijing, Tianjin, Hebei, Shandong and Qingdao;
+67,713
+Other segment information:
+33,345,058
+1,716,094
+including Shanghai, Jiangsu, Zhejiang and Ningbo;
+Credit commitments
+the HO business divisions (including institutions directly managed by the HO and its offices);
+Northeastern China:
+Western China:
+Bohai Rim:
+Central China:
+Pearl River Delta:
+Chinese mainland (Head Office and domestic branches)
+The Group operates principally in Chinese mainland, and also has branches and subsidiaries operating outside Chinese
+mainland. The distribution of the geographical areas is as follows:
+(b) Geographical information
+(In RMB millions, unless otherwise stated)
+Head Office ("HO"):
+Yangtze River Delta:
+For the year ended 31 December 2021
+2,711,454
+(i)
+Includes net trading income, net gains or losses on financial investments and other net operating income.
+(ii) Includes intangible assets, goodwill, long-term deferred expenses, right-of-use assets and other non-current assets.
+995,360
+239
+Notes to the Consolidated Financial Statements
+Annual Report 2021
+10,659,555
+244,359
+79,888
+27,728
+240,195
+21,033
+10,868
+- Financial investments measured at FVTPL
+Financial investments
+18,136,328
+110,426
+3,038,875
+25,841
+743,562
+943,639
+36,494
+Loans and advances to customers
+134,155
+10,377
+16,793
+59,392
+20,613
+160,412
+1,139
+2,603,777
+784,483
+Other
+77,937
+Derivative financial assets
+138,401
+179,867
+324,947
+286,279
+286,279
+Property and equipment
+41,206
+41,206
+Investments in associates and joint ventures
+6,265,668
+-Financial investments measured at FVTOCI
+2,210
+2,751,810
+642,382
+199,800
+108,859
+- Financial investments measured at
+amortised cost
+1,540,988
+81,970
+325,957
+683,550
+269,234
+102,340
+2,560,607
+1,821,185
+6,429,388
+538,067 14,692,050
+36,773
+One to
+Overdue/
+31 December 2020
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+ICBC
+252
+(***) Undated loans and advances to customers and financial investments are impaired or not impaired but overdue for more than
+one month.
+Includes repurchase agreements.
+(**)
+Includes reverse repurchase agreements.
+repayable
+(*)
+3,190,277
+31,896,125
+643,248
+28,909
+887,422
+124,894
+173,032
+170,157
+5,130,013
+(377,347)
+117,672
+1,935,469
+(415,735)
+(89,448)
+(14,262,606)
+3,275,258
+5,289
+Less than
+Three
+months to
+345,966
+339,155
+866,392
+227,610
+Due from banks and other financial institutions (*)
+3,537,795
+2,601,656
+20,301
+3,238
+2,101
+910,499
+three
+Cash and balances with central banks
+Total
+(***)
+five years
+five years
+one year
+months
+one month
+on demand
+Undated
+Over
+One to
+Assets:
+18,471
+154,694
+67,268
+5,645,015
+4,777,861
+(563,541)
+(209,780)
+335,580
+(14,309,956)
+Net liquidity gap
+1,789,845
+1,884,861
+15,821,513
+Total liabilities
+805,436
+516,448
+33,956
+298,621
+81,164
+167,625
+128,581
+Other
+798,127
+418,831
+258,867
+90,158
+19,554
+10,717
+95,489
+Debt securities issued
+30,435,543
+3,351,427
+Undated
+Over
+five years
+One to
+five years
+31 December 2021
+Three
+months to
+one year
+three
+months
+one month
+on demand
+Less than
+One to
+Overdue/
+repayable
+The tables below summarise the maturity profile of the Group's financial instruments based on the undiscounted contractual
+cash flows. The balances of some items in the tables below are different from the balances in the consolidated statement
+of financial position as the tables incorporate all cash flows relating to both principal and interest. The Group's actual cash
+flows on these instruments may vary significantly from the following analysis. For example, demand deposits from customers
+are expected to maintain a stable or increasing balance although they have been classified as repayable on demand in the
+following tables.
+981,145 13,324,640
+Maturity analysis of undiscounted contractual cash flows
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+253
+Annual Report 2021
+(***) Undated loans and advances to customers and financial investments are impaired or not impaired but overdue for more than
+one month.
+Includes repurchase agreements.
+(**)
+Includes reverse repurchase agreements.
+(*)
+2,909,515
+(ii)
+39,108
+25,134,726
+5,194,433
+4,540
+14,535
+1,212
+5,268
+1,669
+60,714
+Financial liabilities designated as at FVTPL
+54,974
+1,995
+52,373
+555
+87,938
+51
+Liabilities:
+33,345,058
+3,351,427
+13,841,088
+6,626,160
+4,214,320
+1,580,065
+2,220,441
+1,511,557
+Total assets
+796,971
+Due to central banks
+20,908
+Derivative financial liabilities
+21,579
+3,849,682
+1,336,721
+1,233,220
+13,499,762
+Due to customers
+335,676
+9,944
+Net liquidity gap
+111,560
+59,478
+Certificates of deposit
+1,738
+3,077,693
+54,030
+272,281
+202,816
+390,573
+2,130,667
+Due to banks and other financial institutions (**)
+140,973
+10,887
+15,722
+58,840
+32,207
+27,326
+2,421,997
+64,944
+Total liabilities
+(i) Maturity analysis of assets and liabilities
+Maintaining an efficient internal fund transfer mechanism to ensure sufficient liquidity at branch level.
+―
+Projecting cash flows and evaluating the level of current assets; and
+-
+Maintaining the stability of the deposit base;
+Optimising the structure of assets and liabilities;
+The Group manages its liquidity risk through the Asset and Liability Management Department and aims at:
+Liquidity risk is the risk that funds will not be sufficient or funds will not be raised at a reasonable cost in a timely manner to
+meet the need of asset growth or repayment of debts due, although the Group remains solvent. This may arise from amount
+or maturity mismatches of assets and liabilities.
+(b) Liquidity risk
+(In RMB millions, unless otherwise stated)
+The tables below summarise the maturity profile of the Group's assets and liabilities. The Group's expected remaining
+maturity of its financial instruments may vary significantly from the following analysis. For example, demand deposits from
+customers are expected to maintain a stable or increasing balance although they have been classified as repayable on
+demand in the following tables.
+For the year ended 31 December 2021
+251
+Annual Report 2021
+(26,710)
+(1,732)
+(2,957)
+(22,021)
+2,711,454
+4,389
+24,509
+2,682,556
+Credit commitments
+Notes to the Consolidated Financial Statements
+(3,329)
+Overdue/
+repayable
+Less than
+one month
+Loans and advances to customers
+261
+Derivative financial assets
+1,490,646
+3,041
+39,484
+204,230
+3,098,438
+2,459,402
+6,220
+1,965
+225,730
+on demand
+9,741
+778,638
+Due from banks and other financial institutions (*)
+621,110
+Cash and balances with central banks
+Assets:
+Total
+(***)
+Undated
+Over
+five years
+One to
+five years
+31 December 2021
+Three
+months to
+one year
+One to
+three
+months
+239,523
+17,882
+(890)
+(2,417)
+Stage 2
+Stage 1
+Provision for ECL
+Gross carrying amount
+31 December 2020
+Financial assets measured
+(537,420)
+(217,671)
+(92,002)
+(227,747)
+(703)
+Stage 3
+(104)
+(479)
+178,693
+951
+161
+393,200 293,640 29,903,568
+29,216,728
+Total
+177,581
+and lending
+Precious metal leasing
+(5,073)
+(121)
+(2,718)
+(120)
+(22)
+Total
+Stage 2
+1,873,310
+712
+326
+1,872,272
+Total
+(2,468)
+(240)
+(22)
+(2,206)
+1,459,018
+53
+Stage 1
+326
+Financial investments
+(861)
+(650)
+(211)
+414,292
+659
+413,633
+to customers
+at FVTOCI
+Total
+Stage 3
+1,458,639
+15,336,010
+12,784
+1,097,463
+29,509
+2,268,162
+Due to banks and other financial institutions (**)
+71,337
+7,195
+12,768
+26,766
+13,773
+10,670
+165
+Derivative financial liabilities
+87,180
+488,000
+4,243
+12,378
+1,304
+622
+(***)
+Financial liabilities designated as at FVTPL
+39,723
+2,360
+36,252
+1,111
+Due to central banks
+Liabilities:
+3,689
+35,171,383
+175,347
+52,944
+791,375
+464,341
+203,003
+86,298
+28,189
+9,544
+301,667
+Other
+Debt securities issued
+26,441,774
+18,860
+5,972,715
+278,804
+4,409,851
+1,546,301
+13,002,739
+Due to customers
+290,342
+8,877
+109,507
+106,765
+65,193
+Certificates of deposit
+3,286,972
+23,715
+1,491,308
+14,924
+3,190,277
+102,151
+702,386
+347,980
+206,666
+66,225
+- Financial investments measured at FVTOCI
+623,223
+91,585
+167,956
+81,410
+163,412
+23,625
+380,896
+6,662
+-Financial investments measured at FVTPL
+Financial investments
+20,109,200
+83,219
+11,723,988
+3,219,890
+3,116,875
+849,883
+76,140
+6,666
+11,996
+88,573
+787,121
+99,451
+-Financial investments measured at
+23,055
+15,335,298
+80,479
+6,967,455
+136,411
+4,752,666
+59,652
+1,519,734
+2,332,549
+1,073,404
+Total assets
+279,318
+106,055
+Other
+290,296
+1,803,604
+290,296
+61,782
+61,782
+Investments in associates and joint ventures
+6,830,933
+2,391
+3,029,696
+2,831,810
+748,029
+137,289
+81,718
+amortised cost
+Property and equipment
+Total
+167,261
+Financial assets:
+255
+Annual Report 2021
+(*) Includes repurchase agreements.
+7,077
+(47)
+(581)
+6,822
+(1,860)
+553,739
+3,068,289
+(2,514,550)
+655,210 1,119,090 189,256 26,883
+(494,113) (846,380) (179,399) (25,437)
+161,097 272,710
+9,857
+1,446
+Notes to the Consolidated Financial Statements
+980,305
+(873,719)
+106,586
+Cash outflow
+Including: Cash inflow
+Derivative financial instruments settled on gross basis
+Derivative financial instruments settled on net basis
+Derivative cash flows:
+2,743
+30,723,617
+582,365
+5,902,378
+619,198
+28,620
+97,545
+(95,502)
+2,043
+62,143
+For the year ended 31 December 2021
+(iii) Analysis of credit commitments by contractual expiry date
+Three
+months to
+one year
+One to
+three months
+Less than
+one month
+Repayable
+on demand
+31 December 2020
+Credit commitments
+2,730,369
+280,085
+420,178
+497,709
+215,011
+(In RMB millions, unless otherwise stated)
+105,556
+Credit commitments
+Total
+Over
+five years
+One to
+five years
+Three
+months to
+one year
+three months
+One to
+Less than
+one month
+Repayable
+on demand
+31 December 2021
+Management does not expect all of the commitments to be drawn down before the expiry of the commitments.
+1,211,830
+One to
+995,804
+353,643
+1,212
+5,278
+1,671
+61,159
+Financial liabilities designated as at FVTPL
+54,968
+1,987
+52,403
+526
+52
+Due to central banks
+14,658
+Financial liabilities:
+Total
+Undated
+Over
+five years
+One to
+five years
+31 December 2020
+Three
+months to
+one year
+One to
+three
+months
+Less than
+one month
+on demand
+Overdue/
+repayable
+(***) Undated loans and advances to customers and financial investments are impaired or not impaired but overdue for more than
+one month.
+terms.
+Non-derivative cash flows:
+495,458
+4,540
+Due to banks and other financial institutions (*)
+112,222
+23,469
+5,647 14,894
+1,728,787 4,569,431
+25,497,225
+21,395
+5,401,402
+3,957,547
+337,635
+10,474
+154,446
+113,008
+59,707
+1,233,820 1,376,867
+11,012
+9,467
+1,707,120
+88,518
+498,427
+16,233,536
+Debt securities issued
+13,506,194
+Due to customers
+Certificates of deposit
+3,130,269
+32,352
+58,071
+276,707
+203,992
+391,443
+2,167,704
+Other
+The maturity profile of the rescheduled loans' undiscounted contractual cash flows is determined according to the negotiated
+five years
+Total
+Annual Report 2021
+VaR relies heavily on historical data to provide information and may not clearly predict the future changes and
+modifications of the risk factors, especially those of an exceptional nature due to significant market moves.
+Even though positions may change throughout the day, VaR only represents the risk of the portfolios at the close of
+each business day, and it does not account for any losses that may occur beyond the 99% confidence level; and
+VaR does not reflect liquidity risk. In the VaR model, a one-day holding period assumes that it is possible to hedge
+or dispose positions within that period without restriction, the price of the financial instruments will fluctuate in the
+specified range, and the correlation between these market prices will remain unchanged. This may not fully reflect
+the market risk arising at times of severe illiquidity, when a one-day holding period may be insufficient to liquidate or
+hedge all positions fully;
+(3)
+(2)
+(1)
+Although VaR is an important tool for measuring market risk under normal market environment, the assumptions on which
+the model is based do give rise to some limitations, mainly including the following:
+VaR.
+VaR for each risk factor is the derived largest potential loss due to fluctuations solely in that risk factor. As there is a
+diversification effect due to the correlation amongst the risk factors, the individual VaRs do not add up to the total portfolio
+73
+257
+284
+94
+62
+268
+29
+Minimum
+171
+264
+40
+41
+157
+230
+14
+49
+Notes to the Consolidated Financial Statements
+(In RMB millions, unless otherwise stated)
+ICBC
+258
+(1,552)
+(402)
+(448)
+(1,331)
+(155)
+306
+566
+-1%
+HKD
+(210)
+-1%
+For the year ended 31 December 2021
+31 December
+2020
+31 December
+2020
+2021
+31 December
+Change in
+currency rate
+Currency
+USD
+Effect on equity
+Effect on profit
+before taxation
+The tables below indicate a sensitivity analysis of exchange rate changes to which the Group had significant on- and off-
+balance sheet exposure on its monetary assets and liabilities and its forecasted cash flows. The analysis calculates the effect
+of a reasonably possible movement in the currency rates against RMB, with all other variables held constant, on profit before
+taxation and equity. A negative amount in the table reflects a potential net reduction in profit before taxation or equity,
+while a positive amount reflects a potential net increase. While the table below indicates the effect on profit before taxation
+and equity of a 1% depreciation of USD and HKD against RMB, there will be an opposite effect with the same amount if
+the currencies appreciate by the same percentage. This effect, however, is based on the assumption that the Group's foreign
+exchange exposures as at the end of the reporting period are kept unchanged and, therefore, have not incorporated actions
+that would be taken by the Group to mitigate the adverse impact of this currency risk.
+The Group manages its currency risk through various methods, including limit management and risk hedging to hedge
+currency risk, and performs currency risk sensitivity analysis and stress testing regularly.
+The Group conducts its businesses mainly in RMB, with certain transactions denominated in USD, HKD, and other currencies
+to a lesser extent. The exchange rate of RMB to USD is managed under a floating exchange rate system. The HKD exchange
+rate has been pegged to the USD and therefore the exchange rate of RMB to HKD has fluctuated in line with the changes in
+the exchange rate of RMB to USD. Transactions in foreign currencies mainly arise from the Group's foreign currency treasury
+operations, foreign exchange dealings and overseas investments.
+(ii) Currency risk
+31 December
+2021
+Over
+five years
+Average
+1111
+Total portfolio VaR
+Commodity risk
+Currency risk
+Interest rate risk
+A summary of VaRs by risk type of trading portfolios is as follows:
+VaR analysis is a statistical technique which estimates the potential maximum losses that could occur on risk positions taken
+due to movements in interest rates, foreign exchange rates or prices over a specified time horizon and at a specified level
+of confidence. The Bank adopts a historical simulation model to calculate and monitor trading portfolio VaR with 250 days'
+historical market data (with a 99% confidence level, and one-day holding period) on a daily basis.
+(i) VaR
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+ICBC
+256
+2021
+Sensitivity analysis, interest rate repricing gap analysis and foreign exchange risk concentration analysis are the major market
+risk management tools used by the Group. The Bank monitors market risk separately in respect of trading and other non-
+trading portfolios. The Value-at-risk ("VaR") analysis is a major tool used by the Bank to measure and monitor the market
+risk of its trading portfolios. The following sections include a VaR analysis by risk type of the Group's trading portfolios and a
+sensitivity analysis based on the Group's currency risk exposure and interest rate risk exposure (both trading and non-trading
+portfolios).
+The Group's currency risk mainly results from the risk arising from exchange rate fluctuations on its foreign exchange
+exposures. Foreign exchange exposures include the mismatch of foreign currency assets and liabilities, and off-balance sheet
+foreign exchange positions arising from derivative transactions.
+The Group is primarily exposed to structural interest rate risk arising from commercial banking and interest rate risk arising
+from treasury business positions. Interest rate risk is inherent in many of its businesses and largely arises from mismatches
+between the repricing dates of interest-generating assets and interest-bearing liabilities. The analysis of the interest rate risk
+in the banking book is disclosed in note 49(d).
+Market risk is the risk of loss, in respect of the Group's on- and off-balance sheet activities, arising from adverse movements
+in market rates including interest rates, foreign exchange rates, commodity prices and stock prices. Market risk arises from
+both the Group's trading and non-trading businesses.
+(c) Market risk
+2,711,454
+314,306
+361,217
+528,653
+214,884
+113,370
+1,179,024
+The Group considers the market risk arising from stock price fluctuations in respect of its investment portfolios to be
+immaterial.
+Year end
+64
+Year end
+Maximum
+161
+Maximum
+2020
+Total portfolio VaR
+Commodity risk
+Currency risk
+Interest rate risk
+80
+347
+198
+144
+Average
+12
+37
+14
+71
+288
+172
+95
+46
+153
+88
+72
+Minimum
+105
+Non-derivative cash flows:
+(**)
+(*)
+five years
+Over
+One to
+five years
+31 December 2021
+Three
+months to
+one year
+One to
+three
+months
+Less than
+one month
+on demand
+Overdue/
+repayable
+Undated loans and advances to customers and financial investments are impaired or not impaired but overdue for more than
+one month.
+The maturity profile of the rescheduled loans' undiscounted contractual cash flows is determined according to the negotiated
+terms.
+(***)
+Undated
+(**)
+(*)
+48,425,127
+3,123,357
+23,794,660
+5,657,784 10,613,859
+1,708,257
+2,456,896
+1,070,314
+644,069
+3
+5,041
+Includes reverse repurchase agreements.
+83,643
+Total
+Financial liabilities:
+290,018
+175,898
+488,702
+65,201
+1,551,479
+10,862
+286,731
+2,403,599
+15,337,379
+Other
+Debt securities issued
+13,003,897
+Due to customers
+Certificates of deposit
+87,299
+4,249
+Non-derivative cash flows:
+3,701
+1,306
+623
+64,944
+2,268,538
+Due to banks and other financial institutions (*)
+Financial liabilities designated as at FVTPL
+40,089
+2,360
+36,614
+1,114
+1
+Due to central banks
+12,476
+61,495
+128,358
+279,659
+32,238,213
+468,472
+19,491,028
+6,198,405
+3,837,204
+1,025,340
+1,194,834
+22,930
+Loans and advances to customers (**)
+1,500,873
+3,340
+Financial investments
+42,720
+227,507
+779,758
+239,524
+Due from banks and other financial institutions (*)
+3,098,594
+2,459,402
+6,356
+1,978
+9,748
+621,110
+Cash and balances with central banks
+208,024
+49,188
+-Financial investments measured at FVTPL
+6,717
+98,177
+Other
+8,276,626
+3,147
+3,666,299
+3,404,308
+919,230
+(2,234)
+116,381
+-Financial investments measured at amortised cost
+1,989,126
+88,573
+99,726
+777,859
+385,083
+212,545
+69,799
+-Financial investments measured at FVTOCI
+677,626
+92,607
+184,838
+106,924
+173,529
+24,438
+444,114
+Includes reverse repurchase agreements.
+24,381
+106,862
+1,510,507 4,519,399
+82,953
+-Financial investments measured at FVTOCI
+826,026
+150,441
+271,393
+115,710
+227,824
+28,274
+21,431
+10,953
+-Financial investments measured at FVTPL
+104,163
+Financial investments
+298,328
+17,121,574
+40,478
+20,301
+352,359
+3,570,003 6,424,534
+983,897
+1,041,610
+41,245
+Loans and advances to customers (**)
+341,302
+867,500
+227,824
+Due from banks and other financial institutions (*)
+2,601,656 3,541,307
+2,127,791
+527,557 29,710,420
+6,750
+290,770
+386,509
+46,122,858
+3,359,551
+660,910
+791
+88
+9,248
+8,449
+5,231,400 10,687,256 21,214,128
+1,691,662
+2,152,760
+1,786,101
+19,349
+765,296
+27,405
+Other
+7,550,757
+3,150
+3,136,236
+3,331,990
+761,694
+207,927
+109,760
+-Financial investments measured at amortised cost
+1,705,647
+75,956
+595,580
+3,309,032
+2,101
+Cash and balances with central banks
+Cash outflow
+4,414
+260
+493
+2,138
+1,308
+215
+Derivative financial instruments settled on net basis
+Derivative financial instruments settled on gross basis
+Including: Cash inflow
+Derivative cash flows:
+32,040,784
+592,293
+65,958 1,097,393 450,359 647,297 179,297
+(65,601) (1,080,685) (449,200) (638,174) (181,812)
+357
+16,708
+1,159 9,123 (2,515)
+447,509
+100,695
+984,572
+535,026
+298,841
+31,300 108,543
+36,804 16,089
+1,863,791 5,093,002 6,750,720
+26,881,281
+21,447
+6,274,552
+291,002
+9,076
+109,863
+7,190
+910,499
+23,254
+(22,948)
+306
+Financial assets:
+Total
+(***)
+five years
+Over Undated
+One to
+five years
+Three
+months to
+one year
+months
+one month
+on demand
+three
+2,463,558
+(2,438,420)
+Less than
+One to
+Overdue/
+31 December 2020
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+Non-derivative cash flows:
+ICBC
+254
+Includes repurchase agreements.
+(*)
+25,138
+repayable
+(530,300)
+Loans and advances
+(89,151)
+754,719
+Banks and other
+financial institutions
+380,276
+382,264
+Corporate entities
+Total
+6,409,814
+165,078
+3,133,938
+5,259,285
+12,010
+4,868
+41,550
+103,667
+98,708
+233,289
+64,556
+56,685
+149,283 8,817,345
+384,700
+Below A
+28,011
+31
+12,167
+6,324
+8,054,193
+By rating distribution
+The Group adopts a credit rating approach to manage the credit risk of the debt securities portfolio held. The ratings are
+obtained from Bloomberg Composite, or major rating agencies where the issuers of debt securities are located. The carrying
+amounts of debt securities investments (excluding accrued interest) analysed by rating as at the end of the reporting period
+are as follows:
+Unrated
+AAA
+31 December 2021
+AA
+A
+Governments and central banks
+1,890,581
+4,454,127
+18,348
+18,747
+Policy banks
+698,003
+38,194
+942,773
+710,039
+6,148,761
+Annual Report 2021
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+1,233
+725,625
+Banks and other
+financial institutions
+333,991
+372,867
+11,822
+23,110
+72,925
+898,658
+Corporate entities
+141,253
+3,012,983
+369,783
+5,317
+95,765
+1,703
+710,867
+Policy banks
+(In RMB millions, unless otherwise stated)
+31 December 2020
+Unrated
+AAA
+AA
+A
+Below A
+Total
+Governments and central banks
+1,826,872
+3,878,911
+13,444
+23,941
+26,272
+5,769,440
+249
+1,439,620
+465,812
+660,470
+97,364
+653,774
+5,658,676
+6,409,814
+Policy banks
+23,862
+Governments and central banks
+171,130
+754,719
+Banks and other financial institutions
+201,855
+310,160
+430,758
+942,773
+559,727
+Total
+amortised cost
+FVTOCI
+(217,446)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(2) Debt securities investments
+By issuers distribution
+The following tables present an analysis of debt securities (excluding accrued interest) by types of issuers and investments:
+31 December 2021
+Financial
+Financial
+investments
+Financial
+investments
+investments
+measured at
+measured at
+measured at
+FVTPL
+Corporate entities
+97,202
+551,757
+61,080
+Total
+5,769,440
+Policy banks
+27,631
+169,478
+528,516
+725,625
+Banks and other financial institutions
+247,628
+281,215
+369,815
+898,658
+Corporate entities
+104,476
+509,422
+46,572
+5,203,858
+81,893
+479,505
+amortised cost
+710,039
+420,283
+1,686,821
+6,710,241
+8,817,345
+Financial
+investments
+31 December 2020
+Financial
+Financial
+investments
+investments
+measured at
+measured at
+measured at
+FVTPL
+FVTOCI
+Governments and central banks
+62,224
+86,077
+4,621,561
+(1,369)
+(4,589)
+Credit commitments
+2,711,256
+17,598
+1,515 2,730,369
+(355)
+(19,881)
+(987)
+(24,449)
+250
+ICBC
+Financial assets measured
+at amortised cost
+(3,581)
+(2,865)
+341 2,238,835
+630
+534,671
+(191)
+(28)
+(219)
+Financial investments
+1,703,228
+630
+306
+1,704,164
+(2,674)
+(355)
+(1,341)
+(4,370)
+Total
+2,237,864
+Cash and balances
+35
+Stage 1
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(1,227)
+Reverse repurchase agreements
+584,793
+584,793
+(117)
+(117)
+(13)
+Loans and advances
+Financial investments
+17,580,020
+6,262,762
+375,083
+7,819
+293,319 18,248,422
+160 6,270,741
+660,470
+(223,703)
+to customers
+(1,214)
+1,083,124
+9,347
+31 December 2020
+Gross carrying amount
+Provision for ECL
+Stage 2
+Total
+Stage 1
+Stage 2
+Stage 3
+Total
+with central banks
+3,537,795
+3,537,795
+Due from banks and
+other financial institutions
+1,073,777
+Notes to the Consolidated Financial Statements
+534,636
+Stage 3
+Loans and advances
+with central banks
+3,098,438
+3,098,438
+Due from banks and
+other financial institutions
+828,241
+Cash and balances
+828,241
+(1,091)
+Reverse repurchase agreements
+505,969
+505,969
+(128)
+(128)
+(1,091)
+at amortised cost
+Financial assets measured
+Stage 3
+43,574
+213,421
+to customers
+162,654
+8,054,193
+(iii) Three-stage analysis of financial instruments' risk exposure
+The Group's credit risk stages of financial instruments are as follows:
+31 December 2021
+Stage 1
+Gross carrying amount
+Stage 2
+Provision for ECL
+Stage 3
+Total
+Stage 1
+Stage 2
+Loans and advances
+to customers
+Total
+19,380,019
+6,832,308
+(277,411)
+(112,907)
+(223,878)
+(614,196)
+Financial assets measured
+Gross carrying amount
+(1,256)
+Provision for ECL
+Stage 2 Stage 3
+Total
+Stage 1
+Stage 2
+Financial investments
+Stage 3
+Stage 1
+(21)
+31 December 2021
+(1,177)
+501,286
+6,425
+293,394 20,174,699 (269,376) (110,649)
+157 6,838,890 (5,639) (2,200)
+(58)
+(223,739)
+(603,764)
+(118)
+at FVTOCI
+(7,957)
+Precious metal leasing
+Total
+and lending
+166,184
+Total
+30,811,159
+298
+508,009
+24 166,506
+293,575 31,612,743
+ICBC
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+The following is a description of the fair value of financial instruments measured at fair value which are determined using
+valuation techniques. They incorporate the Group's estimate of assumptions that a market participant would make when
+valuing the instruments.
+Financial investments
+Financial investments that use valuation techniques for their valuation include debt securities, asset-backed securities and
+unlisted equity instruments. The Group values such securities by incorporating either only observable data or both observable
+and unobservable data. Observable inputs include assumptions regarding current interest rates; unobservable inputs include
+assumptions regarding expected future default rates, prepayment rates and market liquidity discounts.
+The majority of the debt securities classified as level 2 are RMB bonds. The fair value of these bonds are determined based
+on the valuation results provided by China Central Depository & Clearing Co., Ltd., which are determined based on a
+valuation technique for which all significant inputs are observable market data.
+Derivatives
+Derivatives that use valuation techniques with market observable inputs are mainly interest rate swaps, foreign exchange
+forwards, swaps and options. The most frequently applied valuation techniques include discounted cash flow model and
+Black-Scholes model. The models incorporate various inputs including foreign exchange spot and forward rates, foreign
+exchange rate volatility, interest rate yield curves.
+Loans and advances to customers
+Structured products are mainly valued using dealer's quotations.
+266
+The loans and advances to customers that use valuation techniques are mainly the bill business and discounted cash flow
+model is used. For bank acceptance bill, based on the different credit risk of the acceptor, interest rate yield curve is set up
+using the actual market data; for commercial bill, based on the interbank offered rate, interest rate yield curve is constructed
+according to the credit risk and liquidity point difference adjustment.
+Other liabilities at fair value through profit or loss
+For unquoted other liabilities at FVTPL, discounted cash flow model is used based on current yield curve appropriate for
+the remaining term to maturity adjusted for market liquidity and credit spreads; and Heston model is applied based on
+parameters including yields, foreign exchange forward rates, foreign exchange rate volatilities, which are calibrated by active
+market quotes of standard European option with the same underlying items.
+Annual Report 2021
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+(a) Financial instruments measured at fair value
+(In RMB millions, unless otherwise stated)
+267
+13.18%
+Level 2 inputs: valuation techniques for which all inputs that have a significant effect on the recorded fair value are
+observable, either directly or indirectly; and
+3,396,186
+Risk-weighted assets (i)
+3,909,669
+Financial assets:
+21,690,349
+20,124,139
+Core tier 1 capital adequacy ratio
+13.31%
+Tier 1 capital adequacy ratio
+Level 3 inputs: valuation techniques for which certain inputs that have a significant effect on the recorded fair value are not
+based on observable market data.
+14.94%
+Capital adequacy ratio
+18.02%
+16.88%
+(i)
+Refers to risk-weighted assets after the capital floor and adjustments.
+50. FAIR VALUE OF FINANCIAL INSTRUMENTS
+The Group has established policies and internal controls with respect to the measurement of fair values, specifically the
+framework of fair value measurement of financial instruments, fair value measurement methodologies and procedures. Fair
+value measurement policies specify valuation techniques, parameter selection and relevant concepts, models and parameter-
+seeking methods. Operating procedures specify measurement procedures, timing of valuation, market parameter selection
+and corresponding allocation of responsibilities. In the process of fair value measurement, front office is responsible for daily
+transaction management. The Financial Accounting Department plays a lead role in formulating accounting policies of fair
+value measurement, valuation methodologies and system implementation. The Risk Management Department is responsible
+for verifying trade details and validating models.
+Fair value estimates are generally subjective in nature, and are made as of a specific point in time based on the characteristics
+of the financial instruments and relevant market information. The Group uses the following hierarchy for determining and
+disclosing the fair value of financial instruments:
+Level 1 inputs: quoted (unadjusted) prices in active markets for identical assets or liabilities;
+14.28%
+Level 1
+32,799
+Level 3
+15,308
+16,751
+58,687
+90,746
+Funds and other investments
+52,995
+26,400
+112,194
+92,733
+435,164
+95,326
+623,223
+Financial investments measured at FVTOCI
+Debt securities
+293,759
+1,407,578
+Net capital base
+2,827
+1,704,164
+Equity investments
+420,283
+3,840
+392,013
+Total
+Derivative financial assets
+4,440
+70,634
+1,066
+76,140
+Reverse repurchase agreements measured
+at FVTPL
+157,655
+157,655
+31 December 2021
+Level 2
+Loans and advances to customers measured
+at FVTPL
+106
+3,594
+Loans and advances to customers measured
+at FVTOCI
+534,671
+534,671
+Financial investments measured at FVTPL
+Debt securities
+24,430
+3,488
+1,114
+265
+Valid portion of minority interests
+(In RMB millions, unless otherwise stated)
+The core tier 1 capital adequacy ratio, the tier 1 capital adequacy ratio and the capital adequacy ratio calculated after
+implementation of the advanced capital measurement approaches approved by the CBIRC are as follows:
+Core tier 1 capital
+Paid-in capital
+Valid portion of capital reserve
+Surplus reserve
+General reserve
+Retained profits
+Valid portion of minority interests
+For the year ended 31 December 2021
+Other
+31 December 2021
+31 December 2020
+2,903,516
+2,669,055
+356,407
+356,407
+148,597
+148,534
+356,849
+Core tier 1 capital deductions
+322,692
+Notes to the Consolidated Financial Statements
+The capital adequacy ratios and related components of the Group are calculated based on the statutory financial statements
+of the Group prepared under the PRC GAAP. During the year, the Group has complied in full with all its externally imposed
+regulatory capital requirements.
+Equity investments
+Includes repurchase agreements.
+The data set out in the above table includes trading book data.
+264
+ICBC
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(e) Capital management
+The Group has set the following capital management objectives:
+•
+Annual Report 2021
+•
+Maintain sound capital adequacy to meet regulatory requirements on capital, keep stable capital base to ensure the
+Group's business growth and the implementation of business development and strategic plans in order to achieve
+comprehensive, balanced, and sustainable development;
+Adopt the advanced capital measurement approach, improve the internal capital adequacy assessment process
+(ICAAP), publicly disclose information on capital management, cover all types of material risks, and ensure stable
+operations of the Group;
+Leverage on the results of quantitative assessments of material risks for daily risk management, establish a bank-
+wide value management mechanism with a core of economic capital, improve the aligned policies, processes, and
+applications in business management, strengthen the capital constraints and capital incentives mechanism, enhance
+the product pricing and decision-making support, and improve the capital allocation efficiency; and
+Make effective use of various capital instruments, continuously enhance capital strengths, refine the capital structure,
+improve capital quality, reduce capital costs, and maximise shareholders' returns.
+The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the risk
+profiles of its business operations. In order to maintain or adjust the capital structure, the Group may adjust its profit
+distribution policies, issue or repurchase its own shares, qualified additional tier 1 capital instruments, eligible tier 2 capital
+instruments, or convertible bonds.
+The management monitors the capital adequacy ratios regularly based on regulations issued by the CBIRC. The required
+information is semi-annually and quarterly filed with the CBIRC by the Group and the Bank.
+Since 1 January 2013, the Group commenced calculating the capital adequacy ratios in accordance with the Regulation
+Governing Capital of Commercial Banks (Provisional) and other relevant regulations. In April 2014, the CBIRC officially
+approved the Bank to adopt the advanced capital management approach. Within the approved scope of risk exposures that
+meet the regulatory requirements, the Bank can adopt the foundation internal ratings-based (IRB) approach for its corporate
+credit risk exposures, the IRB approach for its retail credit risk exposures, the internal model approach (IMA) for its market
+risk exposures, and the standardised approach for its operational risk exposures.
+According to Regulation Governing Capital of Commercial Banks (Provisional), Measures for the Assessment of Systemically
+Important Banks, Additional Regulation of Systemically Important Banks (Provisional), and the capital surcharge applied to
+global systemically important banks as required by the Basel Committee on Banking Supervision, the minimum core tier 1
+capital adequacy ratio, the tier 1 capital adequacy ratio and the capital adequacy ratio shall not be lower than 9%, 10% and
+12% respectively. In addition, overseas entities are directly regulated by local banking regulators, and the required capital
+adequacy ratios differ by countries or regions.
+The Group calculates the following core tier 1 capital adequacy ratio, the tier 1 capital adequacy ratio and the capital
+adequacy ratio in accordance with the Regulation Governing Capital of Commercial Banks (Provisional) and relevant
+requirements. The requirements pursuant to these regulations may be different from those applicable in Hong Kong SAR and
+other jurisdictions.
+.
+1,116
+438,640
+1,618,142
+354,986
+219,790
+Additional tier 1 capital instruments and related premiums
+354,331
+219,143
+Valid portion of minority interests
+655
+647
+Net tier 1 capital
+Additional tier 1 capital
+3,241,364
+Tier 2 capital
+668,305
+523,394
+Valid portion of tier 2 capital instruments and related premiums
+418,415
+351,568
+Surplus provision for loan impairment
+248,774
+170,712
+2,872,792
+339,486
+2,653,002
+Net core tier 1 capital
+1,508,562
+3,539
+3,552
+(18,658)
+(10,178)
+17,138
+16,053
+Goodwill
+7,691
+2,886,378
+8,107
+5,669
+4,582
+Cash flow hedge reserve that relates to the hedging of items that
+are not fair-valued on the balance sheet
+(4,202)
+(4,616)
+Investments in core tier 1 capital instruments issued by financial
+institutions that are under control but not subject to consolidation
+7,980
+7,980
+Other intangible assets other than land use rights
+5,855
+6,265,668
+53,839
+1,055,920
+446,262
+2,332,753
+29,510,123
+796,971
+251,608
+6,613
+157,713
+381,037
+Liabilities:
+Total assets
+Other
+286,279
+2,023
+713
+136,037
+147,506
+Property and equipment
+41,206
+33,345,058
+Due to central banks
+50,796
+523
+3,077,693
+175,394
+32,959
+686,933
+2,182,407
+Due to banks and other financial institutions (**)
+140,973
+13,686
+10,787
+25,664
+32,326
+Derivative financial liabilities
+87,938
+68,369
+179
+6,207
+13,183
+Financial liabilities designated as at FVTPL
+54,974
+3,655
+84,174
+169
+1,019
+14,354
+16,643,324
+Loans and advances to customers
+134,155
+13,988
+10,693
+31,640
+77,834
+Derivative financial assets
+1,821,185
+822,891
+121,927
+591,437
+1,083,840
+Due from banks and other financial institutions (*)
+3,537,795
+114,873
+21,381
+143,125
+ICBC
+3,258,416
+23,981
+Certificates of deposit
+337,456
+18,136,328
+Investments in associates and joint ventures
+(**)
+69,609
+10,743
+107,089
+6,078,227
+― Financial investments measured at amortised cost
+1,540,988
+110,915
+332,657
+29,136
+1,089,386
+― Financial investments measured at FVTOCI
+784,483
+12,656
+5,377
+30,251
+736,199
+-Financial investments measured at FVTPL
+Financial investments
+311,551
+39,224
+178,537
+23,957
+447,815
+1,993
+454,645
+268
+The Group measures interest rate risk mainly by analysing the sensitivity of projected net interest income under various
+interest rate movements (scenario analysis). The Group aims to mitigate the impact of prospective interest rate movements
+which might reduce future net interest income, while balancing the cost of hedging on the current revenue.
+Hedging: using interest rate derivatives for hedging management in a timely manner.
+•
+Limit management: optimising the positions of interest-generating assets and interest-bearing liabilities and controlling
+the impact on profit or loss and equity; and
+Pricing management: managing the deviation of the pricing of interest-generating assets and interest-bearing liabilities
+from the benchmark interest rates or market interest rates;
+4,837
+Duration management: optimising the differences in timing between contractual repricing (maturities) of interest-
+generating assets and interest-bearing liabilities;
+•
+•
+•
+The Group manages the interest rate risk in the banking book through the Asset and Liability Management Department, and
+the following methods have been adopted:
+Due to changes in expected default levels or market liquidity, the market's assessment of the credit quality of financial
+instruments changes, leading to changes in credit spreads.
+The Bank or the counterparty can elect to change the level or the maturity of future cash flows of financial instruments
+when the Bank holds equity derivative or when there are embedded option terms or implied options in the on- and
+off-banking book businesses; and
+Despite the similarities in maturity periods, changes in the benchmark interest rate vary among on- and off-balance
+sheet business with different pricing benchmark interest rates;
+The repricing period of different financial instruments are different when the interest rate changes;
+•
+Interest rate prediction: analysing the macro-economic factors that may impact the PBOC benchmark interest rates and
+market interest rates;
+•
+71,337
+65,089
+99,440
+299,614
+1,447,324
+56,666
+1,803,604
+396,787
+2,648,936
+153,164
+3,198,887
+1,426
+Financial liabilities:
+296,128
+296,128
+Financial liabilities designated as at FVTPL
+15
+86,598
+567
+87,180
+Derivative financial liabilities
+4,822
+Due to customers
+39,746
+Interest rate risk in the banking book is defined as the risk of loss in the overall return and the economic value of the
+banking book arising from adverse movements in interest rate and term structure. This type of risk may occur in the
+following situations:
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+805,436
+14,669
+11,170
+196,560
+583,037
+Other
+798,127
+42,747
+4,744
+Total liabilities
+272,067
+Debt securities issued
+25,134,726
+301,916
+377,699
+883,119
+23,571,992
+Due to customers
+335,676
+93,958
+478,569
+(d) Interest rate risk in the banking book
+27,003,382
+461,495
+Notes to the Consolidated Financial Statements
+ICBC
+260
+(**) Includes repurchase agreements.
+Includes reverse repurchase agreements.
+(*)
+2,711,454
+175,595
+70,784
+2,256,272
+464,057
+Credit commitments
+2,909,515
+341,526
+(15,233)
+76,481
+2,506,741
+Net long/(short) position
+30,435,543
+714,394
+2,001,018
+Includes reverse repurchase agreements.
+Notes to the Consolidated Financial Statements
+N/A
+44,383
+20,109,200
+Financial investments
+-Financial investments
+measured at FVTPL
+33,045
+150,390
+69,283
+164,957
+205,548
+623,223
+-Financial investments
+measured at FVTOCI
+334,480
+340,866
+642,215
+369,260
+116,783
+1,803,604
+327,354
+386,803
+11,830,293
+7,520,367
+five years
+bearing
+Total
+Assets:
+Cash and balances with central banks
+2,786,830
+311,608
+3,098,438
+Due from banks and
+-Financial investments
+other financial institutions (*)
+202,551
+36,170
+3,041
+41,362
+1,490,646
+Derivative financial assets
+76,140
+76,140
+Loans and advances to customers
+1,207,522
+measured at amortised cost
+350,431
+735,724
+Financial liabilities
+designated as at FVTPL
+1,108
+36,252
+2,360
+1,069
+7,214
+1,066
+3
+Due to central banks
+39,723
+87,180
+Derivative financial liabilities
+71,337
+71,337
+Due to banks and other financial
+institutions (**)
+2,919,746
+302,294
+31,688
+77,831
+five years
+Liabilities:
+1,947,036
+2,718,515
+2,939,372
+86,891
+6,830,933
+Investments in associates and
+joint ventures
+61,782
+61,782
+Property and equipment
+35,171,383
+290,296
+Other
+4,385
+Total assets
+12,232,675
+13,264,209
+70,493
+3,923,479
+712,243
+787,121
+3,803,984
+290,296
+1,547
+Non-
+interest-
+One to
+43,662
+USD
+1,551
+(5,873)
+(1,551)
+6,126
+HKD
+(958)
+(140)
+958
+142
+Other
+1,029
+(1,661)
+(1,029)
+1,694
+Total
+(25,728)
+(47,643)
+27,350
+(39,969)
+(27,350)
+RMB
+Cash and balances with central banks
+The following tables demonstrate the sensitivity to a reasonably possible change in interest rate, with all other variables held
+constant, on the Group's net interest income and equity.
+The effect on net interest income is the impact of the assumed changes in interest rates on the net interest income, arising
+from the financial assets and financial liabilities held at the end of the reporting period that are subject to repricing within
+the coming year, including the effect of hedging instruments. The effect on equity is the impact of the assumed changes in
+interest rates on other comprehensive income, calculated by revaluing fixed rate financial assets measured at FVTOCI held at
+the end of the reporting period, including the effect of any associated hedges.
+Annual Report 2021
+261
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+31 December 2021
+25,728
+Increased by 100 basis points
+Effect on
+net interest
+Effect on
+Effect on
+net interest
+Effect on
+Currency
+income
+equity
+income
+equity
+Decreased by 100 basis points
+51,624
+31 December 2020
+Currency
+(68)
+1,734
+68
+(30)
+(29,219)
+(1,766)
+30
+1,769
+(40,883)
+29,219
+(1,734)
+43,935
+262
+ICBC
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+The tables below summarise the contractual repricing or maturity dates, whichever is earlier, of the Group's assets and
+liabilities.
+31 December 2021
+Less than
+three
+months
+Three
+months to
+one year
+The interest rate sensitivities set out in the tables above are for illustration only and are based on simplified scenarios. The
+figures represent the effect of the expected movements in net interest income and equity based on the projected yield curve
+scenarios and the Group's current interest rate risk profile. This effect, however, does not incorporate actions other than
+hedging that would be taken by management to mitigate the impact of interest rate risk. The projections above also assume
+that interest rates of all maturities move by the same degree and, therefore, do not reflect the potential impact on net
+interest income and equity in the case where some rates change while others remain unchanged.
+Over
+7,345
+(7,340)
+Increased by 100 basis points
+Effect on
+net interest
+Decreased by 100 basis points
+Effect on
+Effect on
+net interest
+Effect on
+income
+equity
+income
+169
+equity
+USD
+HKD
+Other
+Total
+(27,286)
+(31,709)
+27,286
+34,753
+(169)
+RMB
+31,697
+3,286,972
+Certificates of deposit
+3,357,478
+2,048,907
+33,345,058
+Liabilities:
+Due to central banks
+Financial liabilities
+designated as at FVTPL
+574
+52,373
+1,992
+35
+54,974
+4,972
+63
+11,618
+14
+71,271
+87,938
+Derivative financial liabilities
+3,816,039
+11,836,908
+12,285,726
+796,971
+1,540,988
+-Financial investments
+measured at amortised cost
+384,141
+638,819
+2,688,862
+2,553,846
+6,265,668
+Investments in associates and
+140,973
+joint ventures
+41,206
+Property and equipment
+286,279
+286,279
+Other
+Total assets
+3,121
+70
+793,780
+41,206
+140,973
+Due to banks and other financial
+institutions (**)
+Other
+2,625
+5,987
+16,703
+6,426
+773,695
+805,436
+Total liabilities
+18,664,582
+798,127
+4,350,806
+472,750
+1,570,851
+30,435,543
+Interest rate mismatch
+(6,378,856)
+7,486,102
+(1,560,515)
+2,884,728
+N/A
+5,376,554
+81,970
+418,829
+60,501
+2,715,947
+268,836
+52,264
+27,239
+13,407
+3,077,693
+Certificates of deposit
+174,300
+154,366
+149,678
+7,010
+Due to customers
+15,597,045
+3,808,680
+5,137,289
+20,242
+571,470
+25,134,726
+Debt securities issued
+169,119
+335,676
+314,100
+614,011
+258,282
+483,674
+9,770
+782,369
+1,634,210
+791,375
+887,422
+31,896,125
+Interest rate mismatch
+(6,440,087)
+8,383,705
+(2,301,496)
+6,224,975
+3,320,310
+N/A
+(*)
+Includes reverse repurchase agreements.
+(**)
+Includes repurchase agreements.
+The data set out in the above table includes trading book data.
+Annual Report 2021
+263
+For the year ended 31 December 2021
+N/A
+(In RMB millions, unless otherwise stated)
+4,880,504
+Total liabilities
+174,720
+109,344
+5,947
+331
+Due to customers
+15,457,811
+4,353,175
+5,951,386
+18,530
+18,672,762
+660,872
+Debt securities issued
+Other
+116,340
+1,968
+62,391
+146,410
+456,464
+9,834
+86,118
+7,133
+290,342
+26,441,774
+(*)
+31 December 2020
+Three
+134,155
+Loans and advances to customers
+6,912,607
+10,463,879
+406,172
+336,693
+16,977
+18,136,328
+Financial investments
+134,155
+-Financial investments
+117,682
+130,810
+71,188
+147,550
+317,253
+784,483
+-Financial investments
+measured at FVTOCI
+272,625
+measured at FVTPL
+Less than
+Derivative financial assets
+29,611
+Non-
+three
+months
+months to
+one year
+One to
+five years
+Over
+interest-
+five years
+bearing
+Total
+1,821,185
+Assets:
+3,190,119
+347,676
+3,537,795
+Due from banks and other
+financial institutions (*)
+1,405,431
+345,048
+35,806
+5,289
+Cash and balances with central banks
+Assets:
+equivalent)
+(in RMB
+equivalent)
+35,768
+Investments in associates and joint ventures
+6,830,933
+76,910
+6,607
+106,016
+6,641,400
+1,010
+-Financial investments measured at amortised cost
+109,918
+54,886
+338,301
+1,300,499
+- Financial investments measured at FVTOCI
+623,223
+12,505
+1,803,604
+6,913
+130
+61,782
+2,210,620
+31,467,893
+787,121
+230,044
+23,585
+79,085
+454,407
+24,874
+Liabilities:
+Other
+290,296
+2,137
+673
+143,589
+143,897
+Property and equipment
+Total assets
+37,844
+565,961
+- Financial investments measured at FVTPL
+66,652
+174,831
+2,724,409
+Cash and balances with central banks
+Total
+(in RMB
+equivalent)
+Other
+(in RMB
+equivalent)
+HKD
+(in RMB
+equivalent)
+132,546
+(in RMB
+equivalent)
+USD
+Assets:
+31 December 2021
+A breakdown of the assets and liabilities analysed by currency is as follows:
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+(in RMB
+equivalent)
+RMB
+3,098,438
+Due from banks and other financial institutions (*)
+871,298
+Financial investments
+20,109,200
+303,298
+319,687
+780,912
+18,705,303
+Loans and advances to customers
+76,140
+11,577
+5,804
+33,808
+24,951
+Derivative financial assets
+1,490,646
+78,487
+25,637
+515,224
+510,574
+982,296
+366,861
+Due to central banks
+Credit commitments
+3,275,258
+301,414
+64,390
+79,225
+2,830,229
+Net long position
+2,085,604
+31,896,125
+446,184
+2,131,395
+28,637,664
+887,422
+18,879
+9,600
+117,020
+680,882
+395,773
+76,881
+172,111
+(in RMB
+equivalent)
+35,171,383
+RMB
+(in RMB
+Total
+Other
+HKD
+31 December 2020
+USD
+(In RMB millions, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+259
+Annual Report 2021
+Includes repurchase agreements.
+Includes reverse repurchase agreements.
+(*)
+2,730,369
+741,923
+Total liabilities
+(**)
+791,375
+2,354,265
+Due to banks and other financial institutions (**)
+71,337
+10,922
+5,687
+35,831
+18,897
+702,938
+Derivative financial liabilities
+6,719
+611
+Financial liabilities designated as at FVTPL
+39,723
+2,363
+Other
+37,360
+79,850
+42,953
+87,180
+3,286,972
+593
+186,816
+227,278
+35,127
+528,377
+Debt securities issued
+296,163
+864,226
+26,441,774
+Due to customers
+Certificates of deposit
+41,707
+24,914,524
+20,490
+177,383
+290,342
+50,762
+1.
+The consolidated financial statements were approved by the board of directors on 30 March 2022.
+53. COMPARATIVE AMOUNTS
+274
+54. APPROVAL OF THE CONSOLIDATED FINANCIAL STATEMENTS
+ICBC
+Unaudited Supplementary Information To The Consolidated Financial
+Statements
+For the year ended 31 December 2021
+Certain comparative amounts have been reclassified to conform to the current year's presentation.
+(In RMB millions, unless otherwise stated)
+Statement of differences between the financial statements prepared under IFRSS and
+those prepared in accordance with PRC GAAP
+Forward purchases
+2.
+Currency concentrations
+USD
+Spot assets
+Spot liabilities
+2,066,021
+31 December 2021
+HKD
+509,771
+Other
+955,285
+(2,115,377)
+A final dividend of RMBO.2933 (pre-tax) per share after the appropriation of statutory surplus reserve and general reserve,
+was approved at the board of directors' meeting held on 30 March 2022, and is subject to the approval of the Bank's
+shareholders at the forthcoming annual general meeting. Based on the number of ordinary shares issued as at 31 December
+2021, the final dividend amounted to approximately RMB104,534 million in total. The dividend payable was not recognised
+as a liability in the consolidated financial statements.
+Total
+3,531,077
+There are no differences between the profit attributable to equity holders of the parent company under PRC GAAP and IFRSS
+for year ended 31 December 2021 and 2020. There are no differences between the equity attributable to equity holders of
+the parent company under PRC GAAP and IFRSS as at 31 December 2021 and 31 December 2020.
+Includes the appropriation made by overseas branches in the amount of RMB47 million (2020: RMB11 million).
+52. EVENTS AFTER THE REPORTING PERIOD
+other equity instrument holders
+(ii)
+97,505
+(446,184)
+(9,607)
+(9,607)
+32,494
+(32,494)
+97,505
+(97,505)
+Capital injection by
+139,730
+139,730
+Includes the appropriation made by overseas branches in the amount of RMB56 million (2020: RMB101 million).
+Capital reduction by
+(4,542)
+63
+63
+(4,479)
+Balance as at 31 December 2021
+356,407
+354,331 153,348 350,397 426,714 24,106
+(4,773)
+(3,996)
+2 945,798 1,486,265 3,142,801
+(i)
+other equity instrument holders
+(680,182)
+(461,495)
+2,112,979
+Net (short)/long position
+Net structural position
+USD
+2,195,697
+31 December 2020
+HKD
+445,380
+Other
+1,028,233
+Total
+3,669,310
+(2,240,038)
+32,494
+(713,341)
+(3,414,874)
+Net option position
+2,856,506
+457,654
+3,641,381
+(2,864,682)
+(208,738)
+(754,429)
+(3,827,849)
+(14,060)
+3,651
+(1,597)
+(12,006)
+(66,577)
+327,221
+(3,241,743)
+Forward sales
+Spot liabilities
+166,543
+385,249
+2,664,771
+Forward sales
+(2,210,989)
+(153,095)
+(580,802)
+(2,944,886)
+Net option position
+1,342
+2,443
+Forward purchases
+32
+Net (short)/long position
+(146,024)
+79,478
+79,582
+13,036
+Net structural position
+128,581
+803
+26,055
+155,439
+Spot assets
+3,817
+Appropriation to general reserve (ii)
+33,247
+(note 17)
+304,267 304,267
+Other comprehensive income
+(1,396) (2,021)
+157
+152
+(3,108)
+(3,108)
+Total comprehensive income
+Dividends ordinary shares 2019 final
+(note 17)
+Distributions to
+Profit for the year
+(1,396)
+157
+152
+(3,108) 304,267
+301,159
+(93,664)
+(93,664)
+other equity instrument holders
+(note 17)
+Appropriation to surplus reserve (i)
+Appropriation to general reserve (ii)
+Capital injection by
+(2,021)
+other equity instrument holders
+756,163 1,259,397 2,571,423
+(4,239)
+(In RMB millions, unless otherwise stated)
+The statement of changes in equity of the Bank are set out below.
+Reserves
+Foreign
+Other
+Share
+equity
+capital instruments
+Investment currency
+Capital Surplus General revaluation translation
+Cash flow
+hedging
+Other
+(89)
+reserve
+reserve
+reserve
+reserve
+reserve
+reserves
+Retained
+Total
+Subtotal earnings equity
+Balance as at 1 January 2020
+356,407 199,456
+153,303
+287,353 295,962 23,949
+(76)
+reserve
+Appropriation to surplus reserve (i)
+Other comprehensive income
+Other
+22,342
+(2,097)
+(4,082)
+63
+816,623
+1,397,575 2,789,748
+323,100
+323,100
+1,764
+(2,676)
+86
+(61)
+329,209
+(887)
+1,764
+(2,676)
+86
+(61)
+(887) 323,100
+322,213
+1
+1
+(94,804)
+(94,804)
+other equity instrument holders
+(887)
+transferred to retained earnings
+153,285 317,903
+356,407
+Balance as at 31 December 2020 and
+1 January 2021
+Profit for the year
+Other comprehensive income
+Total comprehensive income
+Dividends ordinary shares 2020 final
+(note 17)
+Distributions to
+19,687
+(8,839)
+(8,839)
+219,143
+30,550
+(30,550)
+106,019
+--- - 33,247
+(33,247)
+19,687
+(211)
+(211)
+211
+(18)
+(18)
+(18)
+30,550
+16,520
+0.17%
+120,822
+138,356
+public reserve)
+За
+Capital reserve
+148,597
+148,534
+X19
+3b
+Other
+(18,658)
+(10,178)
+X24
+4
+Valid portion to core tier 1 capital during the transition
+period (only applicable to non-joint stock companies.
+Fill in 0 for joint stock banks)
+56
+Valid portion of minority interests
+3,539
+Core tier 1 capital before regulatory adjustments
+2,903,516
+3,552
+2,669,055
+X25
+129,939
+Accumulated other comprehensive income (and other
+3
+X23
+Reference
+1
+Paid-in capital
+356,407
+356,407
+X18
+2
+Retained earnings
+2,413,631
+2,170,740
+2a
+Core tier 1 capital: Regulatory adjustments
+Surplus reserve
+322,692
+X21
+2b
+General reserve
+438,640
+339,486
+X22
+2c
+Retained profits
+1,618,142
+1,508,562
+356,849
+7
+Prudential valuation adjustments
+8
+tax liabilities)
+16
+17
+7
+Direct or indirect investments in own ordinary shares
+Reciprocal cross-holdings in core tier 1 capital between
+banks, or between banks and other financial institutions
+Annual Report 2021
+277
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Item
+18
+Defined-benefit pension fund net assets (net of deferred
+Deductible amount of non-significant minority
+20
+21
+22
+23
+24
+25
+investments in core tier 1 capital instruments issued
+by financial institutions that are not subject to
+consolidation
+Deductible amount of significant minority investments
+in core tier 1 capital instruments issued by financial
+institutions that are not subject to consolidation
+Mortgage servicing rights
+Deductible amount exceeding the 15% threshold for
+significant minority capital investments in core tier 1
+capital instruments issued by financial institutions
+that are not subject to consolidation and undeducted
+portion of deferred tax assets arising from temporary
+differences (net of deferred tax liabilities)
+Including: Deductible amount of significant minority
+investments in core tier 1 capital
+instruments issued by financial institutions
+Including: Deductible amount of mortgage servicing
+rights
+Including: Deductible amount in deferred tax assets
+arising from temporary differences
+31 December
+2021
+31 December
+19
+31 December
+2020
+15
+| | |
+Goodwill (net of deferred tax liabilities)
+7,691
+8,107
+X16
+9
+Other intangible assets other than land use rights (net of
+deferred tax liabilities)
+5,669
+4,582
+X14-X15
+10
+Deferred tax assets that rely on future profits excluding
+risk on fair-valued liabilities
+those arising from temporary differences (net of
+deferred tax liabilities)
+Cash flow hedge reserve that relates to the hedging of
+items that are not fair-valued on the balance sheet
+(4,202)
+(4,616)
+X20
+12
+234
+Shortfall of provision for loan impairment
+13
+Gain on sales related to asset securitisation
+14
+Unrealised gains and losses due to changes in own credit
+11
+31 December
+2021
+Core tier 1 capital:
+Item
+42,492
+Over 12 months
+112,400
+93,724
+182,457
+168,544
+As a percentage of the total gross loans and advances to customers:
+Between 3 and 6 months
+0.14%
+For the year ended 31 December 2021
+Between 6 and 12 months
+Over 12 months
+41,849
+0.20%
+0.54%
+0.50%
+0.88%
+0.90%
+The definition of overdue loans and advances to customers is set out as follows:
+Loans and advances with a specific repayment date are classified as overdue when the principal or interest is overdue.
+For loans and advances repayable by regular instalments, if part of the instalments is overdue, the whole amount of the
+loans and advances would be classified as overdue.
+(ii) Overdue loans and advances to customers by geographical distribution
+Head Office
+Bohai Rim
+Western China
+Central China
+0.23%
+Pearl River Delta
+Between 6 and 12 months
+28,208
+882
+26,634
+148,338
+The net option position is calculated using the delta equivalent approach required by the Hong Kong Monetary Authority.
+The net structural position of the Group includes the structural positions of the Bank's overseas branches, banking
+subsidiaries and other subsidiaries substantially involved in foreign exchange. Structural assets and liabilities include:
+•
+property and equipment, net of depreciation charges;
+•
+capital and statutory reserves of overseas branches; and
+•
+investments in overseas subsidiaries, associates and joint ventures.
+Annual Report 2021
+32,328
+275
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+3.
+(i)
+Loans and advances to customers (excludes accrued interest)
+Overdue loans and advances to customers
+Gross loans and advances to customers of the Group which have been overdue
+with respect to either principal or interest for periods of:
+31 December
+31 December
+2021
+2020
+Between 3 and 6 months
+Unaudited Supplementary Information To The Consolidated Financial Statements
+55,962
+Yangtze River Delta
+Overseas and other
+% of total
+loans and
+advances
+11,960
+0.06%
+Less: Rescheduled loans and advances
+overdue for more than three months
+Rescheduled loans and advances overdue
+for less than three months
+(2,301)
+(0.01%)
+(2,055)
+(0.01%)
+16,833
+% of total
+loans and
+advances
+0.09%
+0.08%
+0.05%
+276
+ICBC
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+4.
+Exposures to non-bank entities in Chinese mainland
+The Bank is a commercial bank incorporated in Chinese mainland with its banking business primarily conducted in Chinese
+mainland. As at 31 December 2021 and 31 December 2020, substantial amounts of the Bank's exposures arose from
+businesses with entities or individuals in Chinese mainland. Analyses of various types of exposures by counterparty have been
+disclosed in the respective notes to the financial statements.
+5. Correspondence between balance sheet in published financial statements and capital
+composition
+The disclosure of correspondence between balance sheet in published financial statements and capital composition is based
+on the Notice on Issuing Regulatory Documents on Capital Regulation for Commercial Banks (Yin Jian Fa, No. 33, 2013)
+Appendix 2 Notice on Enhancing Disclosure Requirements for Composition of Capital.
+(i) Capital composition
+9,905
+Northeastern China
+19,134
+31 December 2020
+(iii) Rescheduled loans and advances to customers
+31 December
+31 December
+2021
+2020
+35,969
+36,358
+50,790
+46,167
+33,400
+40,207
+Rescheduled loans and advances
+37,461
+28,978
+28,398
+30,210
+41,772
+27,324
+25,489
+10,769
+10,705
+254,901
+267,507
+31 December 2021
+38,411
+Notes to the Consolidated Financial Statements
+Income tax payable
+Annual Report 2021
+2,827
+Equity investments
+59,216
+(2,898)
+10,733
+(6,894)
+(6,318)
+53,839
+227,018
+1,040
+(2,937)
+621
+25,737
+(74,585)
+153,164
+Financial liabilities:
+Financial liabilities designated as at FVTPL
+(615)
+48
+Derivative financial liabilities
+(1,596)
+(82)
+(2,211)
+(34)
+(23,109)
+Financial assets:
+(311)
+(39)
+Debt securities
+66,046
+(154)
+1,001
+(356)
+(62,697)
+3,840
+Equity investments
+73,710
+(2,826)
+1,878
+2,092
+(9,187)
+58,687
+Funds and other investments
+25,563
+4,220
+9,976
+(5,559)
+(1,401)
+32,799
+Financial investments measured at FVTOCI
+Debt securities
+464
+(4,888)
+Financial investments measured at FVTPL
+(567)
+203
+(760)
+328
+Financial investments measured at FVTPL
+Debt securities
+52,913
+1,679
+13,909
+(2,436)
+(19)
+66,046
+Equity investments
+(61)
+64,172
+12,604
+(2,203)
+(2,182)
+73,710
+Funds and other investments
+55,444
+(117)
+6,575
+(24,268)
+(12,071)
+25,563
+1,319
+(28)
+1,149
+Loans and advances to customers
+77
+(1,426)
+(28)
+203
+77
+(1,993)
+1 January
+Total
+gains/(losses)
+recorded in
+Total
+effect
+in other
+2020
+profit or loss
+measured at FVTPL
+comprehensive
+income
+Disposals and
+settlements
+Transfer
+in/(out) of
+level 3
+31 December
+2020
+Derivative financial assets
+1,010
+782
+33
+(345)
+211
+1,691
+Additions
+Financial investments measured at FVTOCI
+16
+(213)
+66,046
+465,812
+Equity investments
+17,300
+2,718
+73,710
+93,728
+Funds and other investments
+24,128
+175,252
+25,563
+392,186
+224,943
+570,156
+165,319
+784,483
+Financial investments measured at FVTOCI
+Debt securities
+349,978
+1,108,576
+464
+1,459,018
+Equity investments
+8,504
+49,008
+358,482
+7,580
+Financial investments measured at FVTPL
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+31 December 2020
+Level 1
+Level 2
+Level 3
+Total
+Financial assets:
+Derivative financial assets
+4,691
+127,773
+Debt securities
+Reverse repurchase agreements measured
+at FVTPL
+1,691
+134,155
+154,612
+Loans and advances to customers measured
+at FVTPL
+3,586
+328
+3,914
+Loans and advances to customers measured
+at FVTOCI
+414,292
+414,292
+154,612
+106
+14,250
+1,122,826
+81,970
+(In RMB millions, unless otherwise stated)
+(b) Movement of level 3 financial instruments measured at fair value
+The following table shows the movement of level 3 financial assets and financial liabilities measured at fair value during the
+year:
+Financial assets:
+1 January
+2021
+Total
+(losses)/gains
+recorded in
+profit or loss
+Total
+effects
+in other
+comprehensive
+income
+Additions
+Disposals and
+settlements
+For the year ended 31 December 2021
+Transfer
+in/(out) of
+level 3
+Derivative financial assets
+1,691
+(191)
+57
+(589)
+98
+1,066
+Loans and advances to customers
+measured at FVTPL
+328
+(9)
+31 December
+2021
+59,216
+Notes to the Consolidated Financial Statements
+Annual Report 2021
+59,680
+1,540,988
+412,181
+2,393,245
+227,018
+3,032,444
+Financial liabilities:
+Due to customers
+693,173
+693,173
+Financial liabilities designated as at FVTPL
+269
+331
+615
+87,938
+Derivative financial liabilities
+5,846
+133,531
+1,596
+140,973
+6,177
+913,696
+2,211
+922,084
+86,992
+Debt securities
+47
+464
+1,265,920
+Financial investments measured at amortised cost
+6,643,792
+6,108,146
+Investments in subsidiaries
+163,283
+147,383
+Investments in associates
+35,042
+34,242
+Property and equipment
+1,522,578
+133,698
+Deferred tax assets
+Other assets
+TOTAL ASSETS
+LIABILITIES
+76,066
+65,858
+630,440
+642,714
+33,440,403
+31,630,879
+Due to central banks
+131,865
+39,648
+Financial investments measured at FVTOCI
+396,261
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+51. STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CHANGES IN EQUITY OF
+THE BANK
+The statement of financial position of the Bank are set out below.
+31 December 2021
+31 December 2020
+ASSETS
+Cash and balances with central banks
+Due from banks and other financial institutions
+Derivative financial assets
+Reverse repurchase agreements
+Loans and advances to customers
+574,295
+Financial investments
+2,959,034
+998,406
+3,459,273
+1,242,972
+47,218
+90,669
+523,897
+560,271
+19,310,688
+17,307,271
+8,562,631
+7,948,361
+Financial investments measured at FVTPL
+Notes to the Consolidated Financial Statements
+54,304
+70,256
+28,841,131
+356,407
+356,407
+Other equity instruments
+354,331
+219,143
+Reserves
+945,798
+816,623
+Retained earnings
+1,486,265
+30,297,602
+1,397,575
+3,142,801
+2,789,748
+TOTAL LIABILITIES AND EQUITY
+33,440,403
+31,630,879
+Chen Siqing
+Chairman
+Liao Lin
+Vice Chairman and President
+Liu Yagan
+General Manager of
+Finance and Accounting Department
+TOTAL EQUITY
+Financial liabilities designated as at FVTPL
+461,743
+658,765
+70,938
+Derivative financial liabilities
+39,994
+94,891
+Due to banks and other financial institutions
+2,821,165
+2,707,115
+Repurchase agreements
+178,256
+Certificates of deposit
+238,632
+503,623
+90,113
+277,683
+25,659,484
+24,338,306
+2020
+91,029
+87,273
+Debt securities issued
+Other liabilities
+TOTAL LIABILITIES
+EQUITY
+Share capital
+655,515
+Due to customers
+ICBC
+272
+All of the aforementioned assumptions and methods provide a consistent basis for the calculation of the fair values of the
+Group's financial assets and financial liabilities. However, other institutions may use different assumptions and methods.
+Therefore, the fair values disclosed by different financial institutions may not be entirely comparable.
+377
+(1,027)
+(1,596)
+(2)
+377
+(1,027)
+(2,211)
+270
+ICBC
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(2)
+Net gains or losses on level 3 financial instruments are set out below:
+(c) Transfers between levels
+(i)
+Transfers between level 1 and level 2
+2021
+2020
+296
+1,012
+710
+2,675
+1,006
+3,687
+Realised
+Unrealised
+Due to changes in market conditions for certain securities, quoted prices in active markets were available for these securities.
+Therefore, these securities were transferred from level 2 to level 1 of the fair value hierarchy as at the end of the reporting
+period.
+(615)
+85
+(47)
+464
+Equity investments
+44,895
+(528)
+18,298
+(2,025)
+(1,424)
+59,216
+219,630
+3,602
+22
+(528)
+(32,084)
+(15,485)
+227,018
+Financial liabilities:
+Financial liabilities designated as at FVTPL
+(592)
+(23)
+Derivative financial liabilities
+(1,052)
+108
+(1,644)
+51,883
+Due to changes in market conditions for certain securities, quoted prices in active markets were no longer available for
+these securities. However, there was sufficient information available to measure the fair values of these securities based on
+observable market inputs. Therefore, these securities were transferred from level 1 to level 2 of the fair value hierarchy as at
+the end of the reporting period.
+In 2021, the transfers between level 1 and level 2 of the fair value hierarchy for financial assets and liabilities of the Group
+were not significant.
+(ii) Transfers between level 2 and level 3
+481,954
+31 December 2020
+Carrying
+amount
+Fair value
+Level 1
+Level 2
+Level 3
+Financial assets
+Financial investments measured at amortised cost
+6,265,668
+6,299,526
+481,954
+88,094
+138,662
+Financial liabilities
+Subordinated bonds and tier 2 capital bonds
+430,064
+432,954
+432,954
+Subject to the existence of an active market such as an authorised stock exchange, the market value is the best reflection
+of the fair value of a financial instrument. As there is no available market value for certain financial assets held and financial
+liabilities issued by the Group, discounted cash flow or other valuation methods described below are adopted to determine
+the fair values of these financial assets and financial liabilities:
+(i)
+(ii)
+The fair values of financial investments measured at amortised cost relating to the restructuring of the Bank are
+estimated on the basis of the stated interest rates and the consideration of the relevant special clauses of the
+instruments evaluated in the absence of any other relevant observable market data, and the fair values approximate
+to their carrying amounts. The fair values of financial investments measured at amortised cost irrelevant to the
+restructuring of the Bank are determined based on the available market values. If quoted market prices are not
+available, fair values are estimated on the basis of pricing models or discounted cash flows.
+The fair values of subordinated bonds and tier 2 capital bonds are determined with reference to the available market
+values. If quoted market prices are not available, fair values are estimated on the basis of pricing models or discounted
+cash flows.
+6,072,770
+470,806
+Subordinated bonds and tier 2 capital bonds
+Financial liabilities
+At the end of the reporting period, certain financial instruments were transferred out from level 2 to level 3 of the fair
+value hierarchy for financial assets and liabilities when significant inputs used in their fair value measurements, which was
+previously observable became unobservable.
+At the end of the reporting period, certain financial instruments were transferred out from level 3 of the fair value hierarchy
+for financial assets and liabilities, when significant inputs used in their fair value measurements, which was previously
+unobservable became observable, or when there was a change in valuation technique.
+(d) Valuation of financial instruments with significant unobservable inputs
+Financial instruments valued with significant unobservable inputs primarily include certain structured derivatives, certain debt
+securities and asset-backed securities. These financial instruments are valued using discounted cash flow model. The models
+incorporate various unobservable assumptions such as discount rates and market rate volatilities.
+As at 31 December 2021, the effects of changing the significant unobservable assumptions to reasonably possible alternative
+assumptions were not significant (31 December 2020: not significant).
+Annual Report 2021
+271
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+(e) Fair value of financial assets and financial liabilities not carried at fair value
+There are no significant differences between the carrying amount and the fair value of financial assets and financial liabilities
+not measured at fair value, except for the following items:
+31 December 2021
+Carrying
+amount
+Fair value
+Level 1
+Level 2
+Level 3
+Financial assets
+Financial investments measured at amortised cost
+6,830,933
+6,886,188
+29,158
+6,644,213
+212,817
+273
+Reference
+Deferred tax assets arising from temporary differences
+(amount above 10% threshold, net of deferred tax
+liabilities)
+N/A
+354,331
+219,143
+X28+X32
+32
+33
+Invalid instruments to additional tier 1 capital after the
+transition period
+34
+Valid portion of minority interests
+655
+647
+Including: Portion classified as equity
+X26
+Including: Invalid portion to additional tier 1 capital
+after the transition period
+354,986
+219,790
+36 Additional tier 1 capital before regulatory
+adjustments
+Additional tier 1 capital: Regulatory adjustments
+37
+Direct or indirect investments in own additional tier 1
+instruments
+278
+ICBC
+N/A
+35
+31
+Including: Portion classified as liabilities
+354,331
+219,143
+N/A
+N/A
+26a
+Investments in core tier 1 capital instruments issued by
+financial institutions that are under control but not
+subject to consolidation
+7,980
+7,980
+X11
+Shortfall in core tier 1 capital instruments issued by
+financial institutions that are under control but not
+subject to consolidation
+26c
+27
+26b
+additional tier 1 capital and tier 2 capital
+30
+Other that should be deducted from core tier 1 capital
+Undeducted shortfall that should be deducted from
+Additional tier 1 capital:
+2,653,002
+Core tier 1 capital
+2,886,378
+16,053
+Additional tier 1 capital instruments and related premiums
+17,138
+Total regulatory adjustments to core tier 1 capital
+28
+29
+Consolidated
+balance sheet
+as in published
+financial
+statements*
+Balance sheet
+31 December 2020
+scope of
+Consolidated
+balance sheet
+as in published
+financial
+statements*
+31 December 2020
+31 December 2021
+Balance sheet
+consolidation*
+under
+under
+regulatory
+regulatory
+225,819
+Equity
+Share capital
+Other equity instruments
+356,407
+356,407
+356,407
+356,407
+354,331
+354,331
+225,819
+31 December 2021
+Capital reserve
+scope of
+consolidation*
+(In RMB millions, unless otherwise stated)
+Total liabilities
+Unaudited Supplementary Information To The Consolidated Financial Statements
+32,073
+108,897
+108,871
+105,380
+105,356
+Debt securities issued
+791,375
+791,375
+798,127
+798,127
+Deferred tax liabilities
+5,624
+Other liabilities
+731,818
+148,597
+31,896,125
+4,648
+508,191
+31,656,178
+2,881
+664,715
+30,435,543
+1,994
+483,519
+30,242,073
+(*)
+Prepared in accordance with PRC GAAP.
+Annual Report 2021
+281
+For the year ended 31 December 2021
+148,597
+438,952
+148,534
+Total equity
+3,275,258
+3,264,113
+16,013
+2,909,515
+9,159
+2,900,481
+(*) Prepared in accordance with PRC GAAP.
+(iii) Description of related items
+Item
+Loans and advances to customers
+31 December 2021
+Balance sheet
+under regulatory
+scope of
+consolidation
+20,107,266
+Reference
+Total loans and advances to customers
+20,711,030
+Less: Provision for loan impairment under the weighted approach
+Including: Valid cap of surplus provision for loan impairment in tier 2
+capital under the weighted approach
+24,545
+X01
+15,909
+X02
+Less: Provision for loan impairment under the internal ratings-based approach
+Including: Valid cap of surplus provision for loan impairment in tier 2
+capital under the internal ratings-based approach
+579,219
+X03
+232,865
+X04
+9,805
+148,534
+17,503
+parent company
+Other comprehensive income
+(18,343)
+(18,658)
+(10,428)
+(10,178)
+Surplus reserve
+357,169
+356,849
+322,911
+322,692
+General reserve
+32,460
+438,640
+339,701
+339,486
+Retained profits
+1,620,642
+1,618,142
+1,510,558
+1,508,562
+Equity attributable to equity holders of the
+3,257,755
+3,254,308
+2,893,502
+2,891,322
+Minority interests
+40,659
+282,458
+25,134,726
+― Financial investments measured at
+1,803,604
+1,743,097
+1,540,988
+1,498,008
+FVTOCI
+― Financial investments measured at
+amortised cost
+6,830,933
+6,756,647
+6,265,668
+6,198,842
+Long-term equity investments
+61,782
+69,762
+41,206
+49,186
+Fixed assets
+270,017
+269,952
+249,067
+249,008
+Construction in progress
+18,182
+18,172
+35,173
+FVTPL
+35,166
+732,478
+560,683
+480,693
+480,693
+558,984
+558,984
+76,140
+76,140
+134,155
+134,155
+Reverse repurchase agreements
+663,496
+662,544
+739,288
+738,958
+Loans and advances to customers
+20,109,200
+20,107,266
+18,136,328
+18,134,777
+Financial investments
+9,257,760
+9,060,427
+8,591,139
+8,429,328
+-Financial investments measured at
+623,223
+784,483
+41,083
+Deferred tax assets
+79,259
+87,180
+87,180
+87,938
+87,938
+Derivative financial liabilities
+71,337
+71,337
+140,973
+140,973
+Repurchase agreements
+365,943
+351,049
+293,434
+Financial investments
+Certificates of deposit
+290,342
+290,342
+335,676
+335,676
+Due to customers
+Employee benefits payable
+Taxes payable
+26,441,774
+26,441,774
+25,134,726
+Financial liabilities measured at FVTPL
+Other assets
+institutions
+468,616
+79,259
+67,713
+67,713
+443,997
+430,485
+453,592
+440,548
+Total assets
+35,171,383
+34,920,291
+33,345,058
+33,142,554
+Liabilities
+Due to central banks
+39,723
+39,723
+54,974
+Due to banks and other financial institutions
+2,431,689
+2,431,689
+2,315,643
+54,974
+2,315,643
+Placements from banks and other financial
+489,340
+489,340
+468,616
+Financial investments measured at FVTPL
+Including: Non-significant minority investments in tier 2
+capital instruments issued by financial institutions that
+are not subject to consolidation
+Including: Eligible to the parent
+company/group level
+Instrument type
+Amount recognised in regulatory capital
+(in millions, as at the latest reporting date)
+Par value of instrument (in millions)
+Accounting treatment
+Original date of issuance
+Perpetual or dated
+Including: Original maturity date
+Issuer call (subject to prior supervisory approval)
+Including: Optional call date, contingent
+call dates and redemption amount
+Parent company/Group
+Parent company/Group
+Additional tier 1 capital
+Additional tier 1 capital
+instrument
+Parent company/Group
+Additional tier 1 capital
+instrument
+RMB69,981
+RMB equivalent 19,687
+RMB70,000
+Other equity
+19 September 2019
+Perpetual
+USD2,900
+Other equity
+23 September 2020
+Perpetual
+instrument
+RMB79,987
+RMB80,000
+Commercial Banks (Provisional)
+Other equity
+Regulation Governing Capital of
+Additional tier 1 capital
+Retained profits
+Minority interests
+Including: Valid portion of core tier 1 capital
+Including: Valid portion of additional tier 1 capital
+Including: Valid portion of tier 2 capital
+(iv) Main features of eligible capital instruments
+Main features of regulatory
+capital instrument
+Issuer
+Unique identifier
+Governing law(s) of the instrument
+Regulatory treatment
+Including: Transition arrangement
+31 December 2021
+Balance sheet
+under regulatory
+scope of
+consolidation
+Reference
+(752)
+(39,707)
+1,609
+356,849
+X21
+438,640
+X22
+1,618,142
+ICBC
+Additional tier 1 capital
+General reserve
+26 July 2019
+No maturity date
+Yes
+Coupons/dividends
+Including: Fixed or floating dividend/coupon
+Including: Coupon rate and any related index
+Including: Existence of a dividend stopper
+Including: Fully discretionary, partially
+discretionary or mandatory cancellation
+of coupons/dividends
+Including: Redemption incentive mechanism
+Including: Non-cumulative or cumulative
+Convertible or non-convertible
+Including: If convertible, conversion trigger(s)
+Including: If convertible, fully or partially
+No
+Non-cumulative
+Yes
+Additional Tier 1 Capital
+Trigger Event or Tier 2 Capital
+Trigger Event
+Fully or partially convertible
+when an Additional Tier 1
+Capital Trigger Event occurs;
+fully convertible when a Tier 2
+Capital Trigger Event occurs
+No
+No
+Non-cumulative
+Non-cumulative
+Yes
+No
+Non-viability Trigger Event
+N/A
+Fully or partially convertible
+when a Non-viability Trigger
+Event occurs
+NA
+N/A
+288
+Fully discretionary
+Perpetual
+Fully discretionary
+Yes
+The First Redemption Date is
+24 September 2024, in
+full or partial amount
+No maturity date
+Yes
+The First Redemption Date is
+23 September 2025, in
+full or partial amount
+No maturity date
+Yes
+The First Redemption Date is
+30 July 2024, in
+full or partial amount
+Annual Report 2021
+287
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Main features of regulatory
+capital instrument
+Including: Subsequent call dates, if applicable
+Preference shares
+(Domestic)
+Commences on the
+First Redemption Date
+(24 September 2024) and
+ends on the completion date
+of redemption or conversion
+of all the Domestic Preference
+Shares
+Preference shares
+(Offshore)
+23 September in each year
+after the First Redemption
+Date
+Undated additional tier 1
+capital bonds (Domestic)
+Redemption of present bonds
+in full or in part on each
+Distribution Payment Date
+since the First Redemption
+Date (30 July 2024).
+The Issuer has the right to
+redeem the present bonds in
+full rather than in part if the
+present bonds are no longer
+qualified as additional tier 1
+capital after
+they are issued due to
+unpredictable changes in
+regulatory rules
+Fixed to floating
+4.45% (interest rate)
+before 30 July 2024
+Fixed to floating
+4.2% (dividend rate)
+before 24 September 2024
+Yes
+Fixed to floating
+3.58% (dividend rate)
+before 23 September 2025
+Yes
+Fully discretionary
+Surplus reserve
+Other
+Foreign currency translation reserve
+Balance sheet
+under regulatory
+scope of
+consolidation
+1,743,097
+13,052
+Reference
+X09
+2,468
+X10
+X29
+6,756,647
+X30
+X31
+Long-term equity investments
+69,762
+Including: Investments in core tier 1 capital instruments issued by financial
+institutions that are under control but not subject to consolidation
+7,980
+X11
+Including: Undeducted portion of non-significant minority
+1,686
+X12
+investments in capital instruments issued by
+financial institutions that are not subject to consolidation
+Including: Undeducted portion of significant minority investments in
+capital instruments issued by financial institutions that
+26,284
+X13
+31 December 2021
+are not subject to consolidation
+capital instruments issued by financial institutions that
+are not subject to consolidation
+capital instruments issued by financial institutions that
+are not subject to consolidation
+282
+560,683
+206
+X05
+Including: Significant minority investments in core tier 1
+21
+X06
+capital instruments issued by financial institutions that
+are not subject to consolidation
+Including: Non-significant minority investments in additional tier 1
+capital instruments issued by financial institutions that
+are not subject to consolidation
+277,705
+X07
+140,871
+X08
+capital instruments issued by financial institutions that
+are not subject to consolidation
+ICBC
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Item
+Financial investments measured at FVTOCI
+Including: Non-significant minority investments in core tier 1
+capital instruments issued by financial institutions that
+are not subject to consolidation
+Including: Significant minority investments in core tier 1
+capital instruments issued by financial institutions that
+are not subject to consolidation
+Including: Non-significant minority investments in tier 2
+capital instruments issued by financial institutions that
+are not subject to consolidation
+Financial investments measured at amortised cost
+Including: Non-significant minority investments in tier 2
+Including: Significant minority investments in tier 2
+Other asset
+Interest receivable
+430,485
+X28
+Including: Perpetual bonds
+219,717
+X32
+Capital reserve
+148,597
+X19
+Other comprehensive income
+(18,658)
+X24
+Reserve for changes in fair value of financial assets
+24,435
+Reserve for cash flow hedging
+(4,243)
+Including: Cash flow hedge reserve that relates to the hedging of
+items that are not fair-valued on the balance sheet
+(4,202)
+X20
+Annual Report 2021
+283
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Item
+Changes in share of other owners' equity of associates and joint ventures
+134,614
+Including: Preference shares
+354,331
+Other equity instruments
+2,283
+Intangible assets
+21,175
+X14
+Including: Land use rights
+15,506
+X15
+Other receivables
+274,468
+Goodwill
+7,691
+X16
+Including: Non-significant minority investments in core tier 1
+Long-term deferred expenses
+Repossessed assets
+3,946
+Other
+115,381
+Debt securities issued
+791,375
+Including: Valid portion of tier 2 capital instruments and their premiums
+418,415
+X17
+Share capital
+356,407
+X18
+5,541
+277,705
+Precious metals
+265,962
+N/A
+Including: Coupon rate and any related index
+Floating
+Floating
+Including: Fixed or floating dividend/coupon
+Coupons/dividends
+N/A
+N/A
+N/A
+N/A
+if applicable
+Including: Subsequent call dates,
+dates and redemption amount
+Including: Optional call date, contingent call
+approval)
+Issuer call (subject to prior supervisory
+Yes
+No maturity date
+No maturity date
+No
+No
+No maturity date
+Perpetual
+Perpetual
+18 November 2015
+Other equity
+N/A
+RMB45,000
+Including: Existence of a dividend stopper
+N/A
+No
+Non-cumulative
+Non-cumulative
+Non-cumulative
+No
+No
+No
+Fully discretionary
+Yes
+and 22 November 2025
+between 23 November 2020
+23 November 2020,
+4.58% (dividend rate)
+4.5% (dividend rate) before
+Fixed to floating
+conversion of all the
+Domestic Preference Shares
+redemption or
+First Redemption Date
+(18 November 2020) and ends
+on the completion date of
+Commences on the
+is 18 November 2020,
+in full or partial amount
+The First Redemption Date
+Including: Non-cumulative or cumulative
+Convertible or non-convertible
+partially discretionary or mandatory
+cancellation of coupons/dividends
+Including: Redemption incentive mechanism
+Fully discretionary
+Fully discretionary
+Including: Fully discretionary,
+N/A
+No
+RMB44,947
+RMB86,795
+Commercial Banks (Provisional)
+Regulation Governing Capital of
+Additional tier 1 capital
+Core tier 1 capital
+Core tier 1 capital
+Including: Post-transition arrangement of
+of Regulation Governing Capital
+of Commercial Banks (Provisional)
+Additional tier 1 capital
+Core tier 1 capital
+Core tier 1 capital
+Commercial Banks
+to Replenish Tier 1
+Capital/China
+the Issuance of
+Preference Shares of
+Guidance on
+Preference Shares,
+Administrative Measures on
+Shares Pilot, Trial
+State Council on
+Launch of Preference
+Guidance of the
+Securities Law of the
+People's Republic of China.
+Company Law of the
+People's Republic of China,
+360011
+The Bank
+Securities and Futures
+Ordinance of Hong Kong/
+Hong Kong SAR, China
+Securities Law of the
+People's Republic of
+China/China
+The Bank
+1398
+284
+Share capital,
+capital reserve
+19 October 2006
+ICBC
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+capital instrument
+RMB168,374
+Core tier 1
+capital instrument
+Additional tier 1
+Group
+Preference shares
+(Domestic)
+Parent company/
+Share capital,
+capital reserve
+19 October 2006
+Perpetual
+RMB269,612
+capital instrument
+RMB336,554
+Including: Original maturity date
+Perpetual or dated
+Original date of issuance
+Accounting treatment
+Par value of instrument (in millions)
+(in millions, as at the latest reporting date)
+Amount recognised in regulatory capital
+Instrument type
+Group
+Group
+Core tier 1
+Ordinary shares
+(H share)
+Parent company/
+Parent company/
+Including: Eligible to the parent company/
+group level
+Ordinary shares
+(A share)
+capital instrument
+Main features of regulatory
+Unaudited Supplementary Information To The Consolidated Financial Statements
+Preference shares
+(Domestic)
+Yes
+285
+No
+No
+N/A
+Including: If yes, specify non-compliant features
+Non-compliant transitioned features
+undated additional
+tier 1 capital bonds
+tier 2 capital bonds and
+Subordinated to deposits,
+general debts,
+subordinated debts,
+preference shareholders
+preference shareholders
+debts and
+debts and
+subordinated
+general creditor,
+creditor of the
+general creditor,
+creditor of the
+subordinated
+senior to instrument)
+(specify instrument type immediately
+Subordinated to depositor,
+Subordinated to depositor,
+Position in subordination hierarchy in liquidation
+description of write-up mechanism
+N/A
+N/A
+름름
+N/A
+N/A
+N/A
+N/A
+No
+286
+Additional tier 1 capital
+Including: Post-transition arrangement of
+Additional tier 1 capital
+Additional tier 1 capital
+Additional tier 1 capital
+of Regulation Governing Capital
+of Commercial Banks (Provisional)
+Including: Transition arrangement
+Regulatory treatment
+Bond Issuance in China's
+Inter-bank Bond Market, as
+well as other applicable laws,
+regulations and normative
+documents/China
+Republic of China, the
+Regulation Governing
+Capital of Commercial Banks
+(Provisional) and the Measures
+for Administration of Financial
+Governed by the Commercial
+Banking Law of the People's
+The creation and issue of the
+Offshore Preference Shares
+and the rights and obligations
+(including non-contractual
+rights and obligations)
+attached to them are governed
+by, and shall be construed in
+accordance with, PRC law
+Company Law of the People's
+Republic of China, Securities
+Law of the People's Republic
+of China, Guidance of the
+State Council on Launch of
+Preference Shares Pilot, Trial
+Administrative Measures on
+Preference Shares, Guidance
+on the Issuance of Preference
+Shares of Commercial Banks to
+Replenish Tier 1 Capital/China
+The Bank
+1928018
+Undated additional tier 1
+capital bonds (Domestic)
+Preference shares
+(Offshore)
+The Bank
+4620
+Preference shares
+(Domestic)
+The Bank
+360036
+Governing law(s) of the instrument
+Unique identifier
+Issuer
+capital instrument
+Main features of regulatory
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Unaudited Supplementary Information To The Consolidated Financial Statements
+ICBC
+N/A
+Annual Report 2021
+N/A
+N/A
+instrument it converts into
+Including: If convertible, specify issuer of
+type convertible into
+Including: If convertible, specify instrument
+optional conversion
+Including: If convertible, mandatory or
+N/A
+N/A
+Including: If convertible, conversion rate
+N/A
+N/A
+Including: If convertible, fully or partially
+Trigger Event or Tier 2
+Additional Tier 1 Capital
+N/A
+N/A
+Including: If convertible, conversion trigger(s)
+Preference shares
+(Domestic)
+Ordinary shares
+(H share)
+Ordinary shares
+(A share)
+capital instrument
+Main features of regulatory
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Unaudited Supplementary Information To The Consolidated Financial Statements
+Write-down feature
+N/A
+름름름
+N/A
+N/A
+N/A
+N/A
+N/A
+Including: If temporary write-down,
+Including: If write-down, permanent or temporary
+Including: If write-down, full or partial
+Including: If write-down, write-down trigger(s)
+No
+No
+No
+3
+N/A
+N/A
+The Bank
+Core tier 1 capital
+Mandatory
+The initial conversion price
+is equal to the average
+trading price of the A shares
+of the Bank for the
+20 trading days preceding
+25 July 2014, the date of
+publication of the Board
+resolution in respect of
+the issuance plan
+Trigger Event occurs;
+fully convertible when
+a Tier 2 Capital Trigger
+Event occurs
+convertible when an
+Additional Tier 1 Capital
+Fully or partially
+Capital Trigger Event
+N/A
+름름
+N/A
+N/A
+Ordinary shares
+(H share)
+Ordinary shares
+(A share)
+The Bank
+601398
+X27
+8.0%
+8.0%
+Amounts below the thresholds for deduction
+72
+73
+74
+75
+Undeducted portion of non-significant minority
+investments in capital instruments issued by financial
+institutions that are not subject to consolidation
+Undeducted portion of significant minority investments
+in capital instruments issued by financial institutions
+that are not subject to consolidation
+Mortgage servicing rights (net of deferred tax liabilities)
+Deferred tax assets arising from temporary differences
+(net of deferred tax liabilities)
+155,815
+138,247
+X05+X07+X08+
+X09+X12+X29+X30
+28,773
+32,452
+X06+X10+X13
+N/A
+74,611
+N/A
+65,719
+Valid caps of surplus provision for loan impairment in
+tier 2 capital
+76
+77
+Provision for loan impairment under the weighted approach
+Valid cap of surplus provision for loan impairment in
+24,545
+23,204
+X01
+15,909
+6.0%
+7,802
+6.0%
+5.0%
+18.02%
+16.88%
+64
+Institution specific buffer requirements
+4.0%
+4.0%
+65
+Including: Capital conservation buffer requirements
+2.5%
+2.5%
+66
+Including: Countercyclical buffer requirements
+67
+Including: G-SIB buffer requirements
+1.5%
+1.5%
+68 Percentage of core tier 1 capital meeting buffers to
+risk-weighted assets
+8.31%
+8.18%
+Domestic minima for regulatory capital
+69
+Core tier 1 capital adequacy ratio
+70
+Tier 1 capital adequacy ratio
+71 Capital adequacy ratio
+5.0%
+Capital adequacy ratio
+X02
+tier 2 capital under the weighted approach
+Surplus provision for loan impairment under the internal
+ratings-based approach
+31 December 2021
+Balance sheet
+under
+regulatory
+scope of
+consolidation*
+31 December 2020
+Consolidated
+balance sheet
+as in published
+financial
+statements*
+31 December 2020
+Balance sheet
+under
+regulatory
+scope of
+consolidation*
+Assets
+Cash and balances with central banks
+Due from banks and other financial
+institutions
+Placements with banks and
+other financial institutions
+Derivative financial assets
+3,098,438
+3,098,438
+3,537,795
+3,537,795
+346,457
+301,191
+522,913
+489,231
+31 December 2021
+78
+(ii) Consolidated financial statements
+Unaudited Supplementary Information To The Consolidated Financial Statements
+579,219
+507,096
+X03
+79
+232,865
+162,910
+X04
+Valid cap of surplus provision for loan impairment in
+tier 2 capital under the internal ratings-based approach
+Capital instruments subject to phase-out arrangements
+Valid cap to core tier 1 capital instruments for
+80
+81
+the current period due to phase-out arrangements
+Excluded from core tier 1 capital due to cap
+82
+Valid cap to additional tier 1 capital instruments for the
+current period due to phase-out arrangements
+83
+84
+85
+Excluded from additional tier 1 capital due to cap
+Valid cap to tier 2 capital instruments for the current
+period due to phase-out arrangements
+Excluded from tier 2 capital for the current period
+20,285
+40,570
+37,740
+67,463
+due to cap
+ICBC
+280
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+63
+14.28%
+14.94%
+31 December
+2021
+31 December
+2020
+Reference
+capital
+44
+Additional tier 1 capital
+354,986
+219,790
+45
+Tier 1 capital (core tier 1 capital + additional tier 1
+capital)
+3,241,364
+2,872,792
+Tier 2 capital:
+46
+Tier 2 capital instruments and related premiums
+418,415
+351,568
+X17
+47
+Invalid instruments to tier 2 capital after the transition
+20,285
+40,570
+period
+48
+Total regulatory adjustments to additional tier 1
+Valid portion of minority interests
+capital
+by financial institutions that are under control but not
+subject to consolidation
+1,116
+X26
+655
+X25
+3,539
+9,805
+X23
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Item
+38
+39
+40
+40
+41a
+41b
+41c
+42
+43
+Reciprocal cross-holdings in additional tier 1 capital
+between banks, or between banks and other financial
+institutions
+Deductible amount of non-significant minority
+investments in additional tier 1 capital instruments
+issued by financial institutions that are not subject to
+consolidation
+Significant minority investments in additional tier 1
+capital instruments issued by financial institutions that
+are not subject to consolidation
+Investments in additional tier 1 capital instruments issued
+by financial institutions that are under control but not
+subject to consolidation
+Shortfall in additional tier 1 capital instruments issued
+Other that should be deducted from additional tier 1 capital
+Undeducted shortfall that should be deducted from tier 2
+1,116
+1,114
+X27
+31 December
+2021
+31 December
+2020
+Reference
+56c
+Other that should be deducted from tier 2 capital
+57
+Total regulatory adjustments to tier 2 capital
+58
+Tier 2 capital
+668,305
+59
+Total capital (tier 1 capital+ tier 2 capital)
+3,909,669
+523,394
+3,396,186
+60
+Total risk-weighted assets
+21,690,349
+20,124,139
+Requirements for capital adequacy ratio and reserve capital
+61
+Core tier 1 capital adequacy ratio
+13.31%
+13.18%
+62
+Tier 1 capital adequacy ratio
+Item
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Unaudited Supplementary Information To The Consolidated Financial Statements
+49
+Including: Invalid portion to tier 2 capital after the
+transition period
+50
+51
+Valid portion of surplus provision for loan impairment
+Tier 2 capital before regulatory adjustments
+248,774
+170,712
+X02+X04
+668,305
+523,394
+Tier 2 capital: Regulatory adjustments
+52
+265,962
+53
+Direct or indirect investments in own tier 2 instruments
+Reciprocal cross-holdings in tier 2 capital between banks,
+or between banks and other financial institutions
+Deductible portion of non-significant minority investments
+in tier 2 capital instruments issued by financial
+institutions that are not subject to consolidation
+55
+Significant minority investments in tier 2 capital
+56a
+56b
+instruments issued by financial institutions that are not
+subject to consolidation
+Investments in tier 2 capital instruments issued by financial
+institutions that are under control but not subject to
+consolidation
+Shortfall in tier 2 capital instruments issued by financial
+institutions that are under control but not subject to
+consolidation
+X31
+Annual Report 2021
+279
+54
+Consolidated
+balance sheet
+as in published
+financial
+statements*
+Unaudited Supplementary Information To The Consolidated Financial Statements
+892,484
+Add: Accrued interest
+Total loans and advances to customers
+Item
+Discussion and Analysis
+27
+Annual Report 2021
+As at the end of 2021, total assets of the Bank amounted
+to RMB35,171,383 million, RMB1,826,325 million or
+5.5% higher than that at the end of the previous year.
+Specifically, total loans and advances to customers
+(collectively referred to as "total loans") increased by
+RMB2,042,937 million or 11.0% to RMB20,667,245
+million, investment increased by RMB666,621 million or
+7.8% to RMB9,257,760 million, and cash and balances
+with central banks decreased by RMB439,357 million or
+12.4% to RMB3,098,438 million.
+Assets Deployment
+In 2021, in response to the changes in external
+development trends, the Bank earnestly implemented
+macro-economic and financial policies and regulatory
+requirements, and continued to enhance the foresight,
+scientificity and initiative of asset and liability management,
+and appropriately arranged the aggregate amount,
+structure and pace of assets and liabilities. While
+maintaining a moderate growth of the total assets and
+liabilities, the Bank earnestly followed the regulatory
+orientation, continued to promote liability quality
+management, and gradually established a liability quality
+management system that is commensurate with the
+development of liability business. Besides, it strived to
+cement the foundation for deposit development, and
+maintained steady development of liability business. The
+Bank deeply promoted the continuous optimization of the
+asset and liability structure and coordinated development
+of quantity and price, and enhanced the adaptability,
+competitiveness and inclusiveness of serving the real
+economy.
+Balance Sheet Analysis
+Note: Please see "Note 48. to the Consolidated Financial Statements: Segment Information" for details.
+6.9
+27,188
+10.5
+45,015
+Overseas and other
+0.7
+2,593
+0.3
+1,259
+Northeastern China
+Less: Allowance for impairment losses on
+loans and advances to customers
+measured at amortised cost
+In RMB millions, except for percentages
+At 31 December 2020
+At 31 December 2021
+8.8
+3,098,438
+Cash and balances with central banks
+25.8
+8,591,139
+26.3
+9,257,760
+54.4
+18,136,328
+57.2
+17.0
+20,109,200
+Percentage
+(%)
+530,300
+42,320
+Amount
+18,624,308
+(%)
+603,764
+45,719
+20,667,245
+Amount
+Percentage
+Net loans and advances to customers(1)
+Investment
+66,598
+15.4
+65,477
+100.0
+392,126
+100.0
+424,899
+Profit before taxation
+7.6
+60,588
+8.6
+74,045
+Overseas and other
+Head Office
+4.0
+3.4
+29,582
+Northeastern China
+15.2
+121,336
+14.7
+126,799
+Western China
+12.4
+98,851
+32,342
+3,537,795
+58,031
+34,092
+Western China
+10.9
+42,655
+11.1
+47,115
+Central China
+19.4
+76,322
+15.2
+64,383
+13.6
+Bohai Rim
+67,383
+14.1
+59,699
+Pearl River Delta
+19.2
+75,295
+19.8
+83,920
+Yangtze River Delta
+8.7
+17.2
+10.6
+Due from banks and other
+827,150
+3.3
+692,339
+Credit card overdrafts
+2.8
+521,638
+3.4
+702,441
+Personal business loans
+0.9
+183,716
+681,610
+0.9
+Personal consumption loans
+30.8
+5,728,315
+30.8
+6,362,685
+Residential mortgages
+38.2
+7,115,279
+38.4
+7,944,781
+187,316
+Personal loans
+Total
+100.0
+FINANCIAL STATEMENTS ANALYSIS
+ICBC
+20
+In 2021, ICBC steadily pushed forward the strategic
+pattern of "bringing out our strengths to make up for
+our weaknesses and laying a solid foundation and base",
+reinforced the working method of "Three Comparisons,
+Three Reviews and Three Improvements" and achieved
+operating results of making progress while maintaining
+stability and improving quality. The Bank continued
+to consolidate its scale advantage, and ranked first in
+the industry in terms of asset scale, green loans, loans
+to strategic emerging industries, balance of loans to
+manufacturing and balance of deposits. The Bank
+continued to enhance its profitability, and maintained a
+leading position among peers in terms of income scale and
+total profit. Asset quality continued to be consolidated and
+the risk offsetting capacity continued to be enhanced. The
+Bank maintained its advantage in international influence,
+ranking the 1st place among the Top 1000 World Banks by
+The Banker, the 1st place in the Global 2000 by Forbes, and
+the 1st place in the list of commercial banks of the Global
+500 in Fortune for the ninth consecutive year.
+The asset scale of commercial banks grew steadily,
+with continuously improving asset quality, stronger
+risk offsetting capacity, robust profitability and steadily
+enhanced global competitiveness. At the end of 2021,
+the RMB and foreign-currency assets of commercial banks
+totaled RMB288.6 trillion, up 8.6% year on year. The
+balance of NPLs reached RMB2.8 trillion, with a NPL ratio
+of 1.73% and allowance to NPLs of 196.9%. The capital
+adequacy ratio was 15.13%. Specifically, the RMB and
+foreign-currency assets of large commercial banks totaled
+RMB138.4 trillion, accounting for 48.0%. The balance of
+NPLs of large commercial banks reached RMB1.1 trillion,
+with a NPL ratio of 1.37% and allowance to NPLs of
+239.2%. The capital adequacy ratio was 17.29%. Among
+the Top 1000 World Banks 2021 by The Banker, six major
+state-owned commercial banks ranked in the top 15.
+The financial system ran smoothly. At the end of 2021,
+the balance of broad money supply (M2) was RMB238.3
+trillion, up 9.0% year on year. The existing social financing
+scale size stood at RMB314.1 trillion, up 10.3% year on
+year. The outstanding RMB loans reached RMB192.7
+trillion, increasing by 11.6% year on year. The balance
+of RMB deposits amounted to RMB232.3 trillion, up
+9.3% year on year. The total issuance amount of various
+bonds in the bond market reached RMB61.4 trillion, up
+7.8% year on year. The stock market index fluctuated
+upward, with the Shanghai Composite Index and the
+Shenzhen Component Index increasing by 4.8% and
+2.7% respectively over the end of last year. The central
+parity of RMB against the US dollar was RMB6.3757, an
+appreciation of 2.3% from the end of last year.
+Regulatory policies have
+supported high-quality
+development. The real estate loan concentration
+management, green finance evaluation plan, education
+opinion of "easing the burden of excessive homework and
+off-campus tutoring for students undergoing compulsory
+education" and measures for regulating the economic
+development of internet platforms were promulgated and
+implemented to prevent risks and monopolies in promoting
+development. The Guidelines on Macro Prudential Policies
+(Trial), the Measures for Regulatory Rating of Commercial
+Banks and the Additional Regulation on Systemically
+Important Banks (Trial) were successively issued to enhance
+risk management capability and prudential operation
+of banks. The Guidelines on Corporate Governance of
+Banking and Insurance Institutions and other regulations
+were issued to strengthen shareholder equity supervision
+and regulate the performance of directors and supervisors.
+The pilot program of pension wealth management
+products was launched, and relevant policies on equity-
+convertible capital bonds were improved to support capital
+replenishment of small and medium-sized banks.
+Discussion and Analysis
+19
+Annual Report 2021
+20,667,245
+The prudent monetary policy was flexible, targeted and
+appropriate. PBC maintained reasonable and adequate
+liquidity by comprehensive use of various tools such as
+reserve requirement ratio (RRR) cut and structural policies.
+It created tools supporting carbon emission reduction,
+launched special relending for clean and efficient utilization
+of coal, and made good use of relending for supporting
+agriculture and small enterprises and two directly targeting
+instruments, to strengthen support for key areas such as
+scientific and technological innovation, manufacturing,
+small and micro enterprises and green development.
+By playing a role of the Loan Prime Rate (LPR), PBC
+pushed forward to reduce comprehensive financing cost
+of enterprises while maintaining it at an overall stable
+level, and optimized the method of determining the self-
+disciplined capping of deposit interest rate, to improve the
+freedom and accuracy of independent pricing of deposit
+interest rate of commercial banks and promote orderly
+competition in the industry. Besides, PBC deepened the
+market-oriented reform of exchange rates and kept the
+flexibility of RMB exchange rates.
+Proactive fiscal policy was implemented to improve quality
+and efficiency. China deepened the reform of the fiscal
+and tax systems, carried out the tax and fee reduction
+policy, optimized the management of special bonds of
+local governments, and improved the regular mechanism
+for targeted allocation of fiscal funds. It continuously
+increased investment in science and technology and
+people's livelihood, and stabilized the industrial chain and
+China's economy continued to recover steadily. In 2021,
+China's gross domestic product (GDP), retail sales of
+consumer goods, fixed asset investment (excluding rural
+households), industrial added value of enterprises above
+designated size, and total (RMB-denominated) imports
+and exports of trade in goods rose by 8.1%, 12.5%,
+4.9%, 9.6% and 21.4% year on year respectively, while
+consumer price index (CPI) increased mildly by 0.9% year
+on year.
+In 2021, the global economy recovered on the whole, but
+in the second half of the year, affected by the impact of
+the epidemic, energy shortage, supply chain bottleneck
+and other factors, the economic recovery momentum
+witnessed marginal slowdown and rising inflation. The
+monetary policy shift of major developed economies
+accelerated, with increasing fluctuation in the international
+financial market.
+ECONOMIC, FINANCIAL AND REGULATORY ENVIRONMENTS
+Discussion and Analysis
+1.01
+ICBC
+28
+100.0
+18,624,308
+supply chain. Moreover, China promoted coordinated
+development between urban and rural areas, and
+supported the effective link between the achievements of
+poverty alleviation and rural revitalization.
+12.2
+2.2
+2.6
+The Bank continued to improve the quality and efficiency
+of serving the real economy, actively supported the
+construction of ongoing infrastructure projects and major
+projects for making up shortcomings, and implemented
+strategic arrangements such as new urbanization initiatives
+and building a country with strong transportation
+network. It fully supported the high-quality development
+of the manufacturing industry, served the state's energy
+supply security and low-carbon transformation strategy,
+Loan
+Note: (1) Please see "Note 23. to the Consolidated Financial Statements: Loans and Advances to Customers".
+100.0
+33,345,058
+100.0
+35,171,383
+3.8
+1,258,611
+3.4
+and grasped the development opportunities of green
+finance comprehensively. It mainly supported the state's
+food security, stable production and supply of important
+agricultural products, transformation and upgrading
+of agricultural industries and integrated development
+of industrial chains. As at the end of 2021, total loans
+amounted to RMB20,667,245 million, RMB2,042,937
+million or 11.0% higher compared with the end of the
+previous year, of which RMB denominated loans of
+domestic branches were RMB18,929,925 million, up by
+RMB2,124,707 million or 12.6%.
+1,215,339
+739,288
+1.9
+663,496
+Total assets
+Other
+Reverse repurchase agreements
+financial institutions
+3.2
+1,081,897
+2.4
+2.2
+406,296
+DISTRIBUTION OF LOANS BY BUSINESS LINE
+In RMB millions, except for percentages
+At 31 December 2020
+527,758
+Discounted bills
+45.4
+8,459,521
+45.8
+9,456,964
+Medium to long-term corporate loans
+14.2
+2,643,212
+13.2
+At 31 December 2021
+2,737,742
+59.6
+(%)
+Amount
+11,102,733
+59.0
+(%)
+Amount
+12,194,706
+Corporate loans
+Item
+Percentage
+Percentage
+Short-term corporate loans
+Discussion and Analysis
+105,357
+18.1
+12,791
+126,572
+139,363
+Staff costs
+(%)
+In RMB millions, except for percentages
+Increase/ Growth rate
+(decrease)
+2020
+2021
+Item
+Operating Expenses
+Other non-interest related gains amounted to RMB37,176 million, RMB15,081 million or 68.3% higher than that of the
+previous year. Specifically, the increase in net trading income was mainly attributable to the increase in gains on derivative
+financial instruments; the increase in net gains on financial investments was primarily due to the increase in gains on equity
+instruments and bond investments; and the increase in other net operating income was mainly because of the increase in net
+gains on exchange and exchange rate products.
+68.3
+15,081
+22,095
+37,176
+Total
+46.5
+3,737
+8,044
+11,781
+Other operating income, net
+10.1
+Property and equipment expenses
+28,822
+27,960
+29,642
+206,585
+236,227
+Asset custody business
+35.9
+14,677
+40,922
+55,599
+Total
+Other
+39.0
+19.9
+2,607
+3,125
+Amortisation
+9.3
+794
+8,524
+9,318
+Taxes and surcharges
+3.1
+862
+518
+4,611
+11,829
+16,440
+15,453
+15,703
+Less: Fee and commission expense
+1.4
+2,059
+146,668
+148,727
+Fee and commission income
+(4.7)
+(143)
+250
+3,037
+Other
+11.8
+191
+1,617
+1,808
+Trust and agency services
+15.8
+1,193
+7,545
+8,738
+2,894
+14.3
+1.6
+133,024
+Net gains on financial investments
+303.0
+6,733
+2,222
+8,955
+Net trading income
+(%)
+(decrease)
+2020
+2021
+Net fee and commission income
+Item
+Increase/
+In RMB millions, except for percentages
+Other Non-Interest Related Gains
+Discussion and Analysis
+25
+Annual Report 2021
+In 2021, the Bank's net fee and commission income was RMB133,024 million, an increase of RMB1,809 million over last
+year. Specifically, income from settlement, clearing business and cash management increased by RMB2, 169 million, mainly
+driven by the growth of third party payment business income; income from investment banking business registered an
+increase of RMB956 million, mainly due to the income increase from securitization service etc.; asset custody business
+income increased by RMB1,193 million, principally attributable to the increasing income from mutual fund custody business.
+The Bank adhered to the business transformation and implemented the policy of fee reduction and profit concessions,
+resulting in the income decrease on bank card, corporate wealth management, guarantee and commitment businesses.
+1.4
+1,809
+131,215
+Growth rate
+In 2021, operating expenses amounted to RMB236,227 million, an increase of RMB29,642 million or 14.3% over last year.
+Impairment Losses on Assets
+In 2021, the Bank set aside the impairment losses on assets of RMB202,623 million, a decrease of RMB45 million as
+compared to that of last year. Specifically, the impairment losses on loans was RMB168,267 million, indicating a decrease
+of RMB3,563 million or 2.1%. Please refer to "Note 23. to the Consolidated Financial Statements: Loans and Advances to
+Customers; Note 14. to the Consolidated Financial Statements: Impairment Losses on Assets" for details.
+22,670,373
+364,173
+1.61
+24
+24
+ICBC
+Discussion and Analysis
+Interest Expense on Due to Banks and Other Financial Institutions
+Interest expense on due to banks and other financial institutions was RMB44,387 million, RMB7,090 million or 13.8% lower
+than that of last year, principally attributable to the decline in cost as affected by the factors such as market interest rates
+and product maturities.
+Interest Expense on Debt Securities Issued
+1.62
+Interest expense on debt securities issued was RMB29,526 million, indicating a decrease of RMB580 million or 1.9% over
+last year. Please refer to "Note 35. to the Consolidated Financial Statements: Debt Securities Issued" for the debt securities
+issued by the Bank.
+In 2021, non-interest income was RMB170,200 million, RMB16,890 million or 11.0% higher than that of last year,
+accounting for 19.8% of the operating income. Specifically, net fee and commission income increased by 1.4% to
+RMB133,024 million, and other non-interest related gains rose by 68.3% to RMB37,176 million.
+Net Fee and Commission Income
+Item
+2021
+2020
+In RMB millions, except for percentages
+Increase/
+(decrease)
+Growth rate
+(%)
+Settlement, clearing business and
+41,270
+Non-interest Income
+39,101
+397,625
+Total deposits
+145,927
+16.9
+145,660
+Bohai Rim
+12.9
+102,902
+12.5
+107,474
+Pearl River Delta
+16.3
+24,477,111
+130,424
+136,544
+Yangtze River Delta
+13.5
+107,705
+15.8
+135,419
+Head Office
+100.0
+14,048
+1.57
+15.9
+Central China
+2,169
+cash management
+800,075
+100.0
+860,880
+Operating income
+(%)
+Amount
+(%)
+Amount
+Item
+Percentage
+(3.4)
+Percentage
+2020
+In RMB millions, except for percentages
+Discussion and Analysis
+Summary Geographical Segment Information
+ICBC
+26
+Income tax expense increased by RMB242 million or 0.3% to RMB74,683 million as compared to the previous year. The
+effective tax rate stood at 17.58%. Please see "Note 15. to the Consolidated Financial Statements: Income Tax Expense" for
+the reconciliation of income tax expense applicable to profit before tax at the PRC statutory income tax rate and the effective
+income tax expense.
+Income Tax Expense
+Share of results of associates and joint ventures stood at RMB2,869 million, representing an increase of RMB1,565 million
+or 120.0% over last year, mainly due to the increase in the Bank's share of results from Standard Bank, an associate of the
+Bank.
+Share of Results of Associates and Joint Ventures
+2021
+5.5
+(345)
+9,756
+Personal wealth management and
+30,001
+29,630
+371
+1.3
+private banking services
+Investment banking business
+22,416
+21,460
+956
+10,101
+4.5
+16,679
+18,623
+(1,944)
+(10.4)
+Corporate wealth management services
+15,165
+15,554
+(389)
+(2.5)
+Guarantee and commitment business
+Bank card business
+21 Income Statement Analysis
+3.7
+• Interest Income
+Interest Income
+Note: 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 interest rate have been allocated to the changes
+resulted from business volume.
+43,915
+(25,013)
+68,928
+Changes in net interest income
+25,782
+(11,338)
+37,120
+Changes in interest expenses
+(580)
+(1,852)
+Interest Income on Loans and Advances to Customers
+1,272
+(7,090)
+(11,753)
+4,663
+Due to banks and other financial institutions
+33,452
+2,267
+31,185
+Deposits
+Liabilities
+69,697
+• Net Interest Income
+106,048
+Debt securities issued
+Interest income on loans and advances to customers was RMB832,136 million, RMB65,729 million or 8.6% higher as
+compared to that of last year, mainly due to the increase in the size of loans and advances to customers.
+ANALYSIS OF THE AVERAGE YIELD OF LOANS AND ADVANCES TO CUSTOMERS BY MATURITY STRUCTURE
+In RMB millions, except for percentages
+19,996,414
+Total loans and
+4.44
+623,364
+14,044,578
+4.32
+689,587
+15,951,269
+Medium to long-term loans
+3.64
+143,043
+3,934,831
+3.52
+142,549
+4,045,145
+Short-term loans
+(%)
+Average yield
+Interest
+income
+balance
+(%)
+Average
+Average yield
+2020
+2021
+Interest
+income
+Average
+balance
+Item
+Changes in interest income
+(15,319)
+(12,023)
+(3,296)
+1.92
+Net interest spread
+646,765
+690,680
+Net interest income
+2,114,998
+28,752,429
+1,991,928
+30,829,623
+Total liabilities
+Non-interest-bearing liabilities
+1.67
+445,756
+26,637,431
+1.64
+471,538
+28,837,695
+Total interest-bearing liabilities
+2.93
+30,106
+1,028,929
+2.75
+29,526
+1,072,667
+Debt securities issued
+financial institutions(3)
+1.75
+51,477
+2,938,129
+1.97
+832,136
+Net interest margin
+2.15
+Due from banks and other financial institutions
+5
+(570)
+575
+Due from central banks
+19,282
+(5,779)
+25,061
+Investment
+65,729
+(17,979)
+83,708
+Loans and advances to customers
+Net increase/
+(decrease)
+Interest rate
+Volume
+Comparison between 2021 and 2020
+Increase/(decrease) due to
+In RMB millions
+Discussion and Analysis
+Assets
+Item
+ANALYSIS OF CHANGES IN INTEREST INCOME AND EXPENSE
+ICBC
+22
+(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 etc.
+(2) Due from central banks mainly includes mandatory reserves and surplus reserves with central banks.
+Notes: (1) The average balances of interest-generating assets and 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.
+2.11
+1.35
+4.16
+766,407
+0.82
+58,618
+7,133,857
+Demand deposits
+2.35
+111,977
+4,757,009
+2.46
+121,230
+4,929,388
+Time deposits
+Corporate deposits
+Subtotal
+(%)
+In RMB millions, except for percentages
+2020
+Interest
+expense
+Average
+balance
+(%)
+Average cost
+Interest
+expense
+Average
+balance
+Item
+2021
+ANALYSIS OF AVERAGE DEPOSIT COST BY PRODUCTS
+Interest expense on deposits amounted to RMB397,625 million, representing an increase of RMB33,452 million or 9.2%
+over the previous year, principally due to the expansion in the size of due to customers.
+Interest Expense on Deposits
+Interest Expense
+Average cost
+12,063,245
+179,848
+1.49
+9,981
+984,304
+Overseas business
+1.80
+184,396
+10,233,676
+1.82
+0.38
+17,243
+4,509,984
+0.37
+2.92
+167,153
+2.98 5,723,692
+189,118
+18,678
+207,796
+11,429,562
+Subtotal
+5,091,927
+Demand deposits
+6,337,635
+Time deposits
+Personal deposits
+1.44
+165,729
+0.79
+53,752
+6,787,204
+11,544,213
+Interest income on due from banks and other financial institutions was RMB25,228 million, representing a decrease of
+RMB15,319 million or 37.8% as compared to that of last year, principally due to the factors such as reduced lending size
+and low interest rate environment.
+Interest Income on Due from Banks and Other Financial Institutions
+Interest income on investment amounted to RMB262,827 million, representing an increase of RMB19,282 million or 7.9% as
+compared to that of last year, mainly due to the increased scale in investment.
+Interest Income on Investment
+9,461,995
+4.08
+439,575
+10,787,207
+Corporate loans
+(%)
+income
+balance
+(%)
+income
+balance
+Item
+Average yield
+Interest
+Average
+Average yield
+Interest
+Average
+2020
+2021
+In RMB millions, except for percentages
+ANALYSIS OF THE AVERAGE YIELD OF LOANS AND ADVANCES TO CUSTOMERS BY BUSINESS LINE
+Discussion and Analysis
+23
+Annual Report 2021
+advances to customers
+4.26
+400,605
+17,979,409
+4.23
+380,678
+advances to customers
+4.26
+766,407
+17,979,409
+4.16
+832,136
+19,996,414
+Total loans and
+2.66
+38,979
+1,466,753
+2.32
+32,723
+1,412,759
+Overseas business
+4.77
+314,940
+6,606,897
+4.71
+349,572
+7,415,770
+Personal loans
+2.68
+11,883
+443,764
+2.70
+10,266
+Discounted bills
+44,387
+(36,351)
+Due to banks and other
+joint ventures
+• Off-balance Sheet Items
+120.0
+1,565
+1,304
+2,869
+Share of results of associates and
+8.0
+31,208
+390,822
+422,030
+Operating profit
+(0.0)
+(45)
+202,668
+202,623
+Less: Impairment losses on assets
+Profit before taxation
+14.3
+424,899
+32,773
+of the parent
+10.3
+32,432
+315,906
+348,338
+Attributable to: Equity holders
+10.2
+32,531
+317,685
+350,216
+0.3
+242
+74,441
+74,683
+Less: Income tax expense
+Net profit
+33 Analysis on Statement of
+Cash Flows
+8.4
+392,126
+company
+29,642
+236,227
+Increase/ Growth rate
+In RMB millions, except for percentages
+CHANGES OF KEY INCOME STATEMENT ITEMS
+In 2021, facing the complicated and tough business environment, the
+Bank maintained sound business quality, constantly elevated the quality
+and efficiency of financial services, and further improved its capability in
+balancing and coordinating sustainable development. In the year, the Bank
+realized a net profit of RMB350,216 million, representing an increase of
+RMB32,531 million or 10.2% as compared to the previous year. Return
+on average total assets stood at 1.02%, and return on weighted average
+equity was 12.15%. Operating income amounted to RMB860,880 million,
+representing an increase of 7.6%, of which, net interest income grew
+by 6.8% to RMB690,680 million; non-interest income was RMB170,200
+million, up by 11.0%. Operating expenses amounted to RMB236,227
+million, representing an increase of 14.3%, and the cost-to-income ratio
+was 26.36%. Impairment losses on assets were RMB202,623 million.
+Income tax expense rose by 0.3% to RMB74,683 million.
+Income Statement Analysis
+• Shareholders' Equity
+• Assets Deployment
+• Liabilities
+27 Balance Sheet Analysis
+Summary Geographical
+Segment Information
+•
+• Income Tax Expense
+• Share of Results of
+Associates and Joint
+Ventures
+• Impairment Losses on
+Assets
+Operating Expenses
+•
+• Non-interest Income
+• Interest Expense
+Item
+206,585
+2021
+2020
+Less: Operating expenses
+7.6
+60,805
+800,075
+860,880
+Operating income
+11.0
+153,310
+170,200
+Non-interest income
+6.8
+43,915
+646,765
+690,680
+Net interest income
+(%)
+(decrease)
+3,287,917
+33 Reconciliation of Differences
+between the Financial
+16,890
+under PRC GAAP and Those
+under IFRSS
+30,055,472
+3.56
+32,656,847
+Total interest-generating assets
+financial institutions(3)
+2.02
+40,547
+2,003,882
+1.42
+25,228
+1,772,522
+Due from banks and other
+1.48
+42,022
+2,848,543
+1.46
+42,027
+1.61
+2,888,381
+364,173
+1.62
+3.64
+Non-interest-generating assets
+2,659,895
+1,092,521
+2,865,115
+Allowance for impairment losses on
+(574,932)
+(506,316)
+assets
+Total assets
+34,741,810
+32,414,271
+Liabilities
+Deposits
+Statements Prepared
+24,477,111
+397,625
+22,670,373
+Due from central banks (2)
+1,162,218
+243,545
+1,878
+1,779
+99
+5.6
+Annual Report 2021
+21
+3.37
+Discussion and Analysis
+Net Interest Income
+In 2021, net interest income was RMB690,680 million, RMB43,915 million or 6.8% higher than that of last year, accounting
+for 80.2% of the Bank's operating income. Interest income grew by RMB69,697 million or 6.4% to RMB1,162,218 million
+and interest expenses increased by RMB25,782 million or 5.8% to RMB471,538 million. Net interest spread and net interest
+margin ("NIM") came at 1.92% and 2.11% respectively, down 5 basis points and 4 basis points respectively from the
+previous year, mainly because the Bank continued to provide favorable fee policy for the real economy and further reduced
+the financing cost of enterprises.
+AVERAGE YIELD OF INTEREST-GENERATING ASSETS AND AVERAGE COST OF INTEREST-BEARING LIABILITIES
+expense
+balance
+Average
+income/ Average yield/
+Average
+Interest
+2021
+Interest
+Non-controlling
+interests
+2020
+In RMB millions, except for percentages
+cost (%)
+832,136
+4.16
+Item
+Assets
+income/ Average yield/
+expense
+balance
+Loans and advances to customers
+17,979,409
+4.26
+Investment
+7,999,530
+cost (%)
+262,827
+3.29
+7,223,638
+766,407
+19,996,414
+Including: Post-transition
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Main features of regulatory
+Tier 2 capital bonds
+The Bank
+1928007
+Governed by the Commercial
+Banking Law of the People's
+Republic of China, the
+Regulation Governing
+Capital of Commercial Banks
+(Provisional) and the Measures
+for Administration of Financial
+Bond Issuance in China's
+Inter-bank Bond Market, as
+well as other applicable laws,
+regulations and normative
+documents
+Tier 2 capital bonds
+The Bank
+1928011
+Governed by the Commercial
+Banking Law of the People's
+Republic of China, the
+Regulation Governing
+Capital of Commercial Banks
+(Provisional) and the Measures
+for Administration of Financial
+Bond Issuance in China's
+Inter-bank Bond Market, as
+well as other applicable laws,
+Tier 2 capital
+Tier 2 capital
+Tier 2 capital
+capital instrument
+regulations and normative
+documents
+No
+Tier 2 capital bonds
+The Bank
+1928006
+Governed by the Commercial
+Banking Law of the People's
+Republic of China, the
+Regulation Governing
+Capital of Commercial Banks
+(Provisional) and the Measures
+for Administration of Financial
+pari passu with other
+subordinated debts
+Tier 2 capital bonds
+Subordinated to depositor and
+general creditor; but senior
+to equity capital, additional
+tier 1 capital instruments and
+Tier 2 capital bonds
+Tier 2 capital
+hybrid capital bonds; pari
+passu with other subordinated
+debts that have been issued by
+the Issuer and are pari passu
+with the present bonds; and
+pari passu with other tier 2
+capital instruments that will
+possibly be issued in the future
+and are pari passu with the
+present bonds
+Tier 2 capital bonds
+Subordinated to depositor and
+general creditor; but senior
+to equity capital, additional
+tier 1 capital instruments and
+hybrid capital bonds; pari
+passu with other subordinated
+debts that have been issued by
+the Issuer and are pari passu
+with the present bonds; and
+pari passu with other tier 2
+capital instruments that will
+possibly be issued in the future
+and are pari passu with the
+present bonds
+Non-compliant transitioned features
+No
+Including: If yes, specify non-compliant features
+N/A
+Main features of regulatory
+capital instrument
+Issuer
+Unique identifier
+Governing law(s) of the instrument
+Regulatory treatment
+Including: Transition arrangement
+of Regulation Governing Capital
+of Commercial Banks (Provisional)
+294
+ICBC
+N/A
+No
+N/A
+Bond Issuance in China's
+Inter-bank Bond Market, as
+well as other applicable laws,
+regulations and normative
+documents
+Tier 2 capital bonds
+Tier 2 capital
+25 March 2029
+arrangement of Regulation
+26 April 2029
+Yes
+Including: Optional call date, contingent call dates 25 March 2024, in full amount 25 March 2029, in full amount
+26 April 2024, in full amount
+and redemption amount
+Including: Subsequent call dates, if applicable
+N/A
+N/A
+N/A
+Coupons/dividends
+Including: Fixed or floating dividend/coupon
+Including: Coupon rate and any related index
+Including: Existence of a dividend stopper
+Including: Fully discretionary, partially discretionary
+or mandatory cancellation of coupons/dividends
+Including: Redemption incentive mechanism
+Including: Non-cumulative or cumulative
+Convertible or non-convertible
+Including: If convertible, conversion trigger(s)
+Fixed
+4.26%
+Fixed
+4.51%
+Fixed
+4.40%
+No
+No
+No
+Mandatory
+Mandatory
+Mandatory
+Including: If convertible, fully or partially
+senior to instrument)
+Yes
+Yes
+Issuer call (subject to prior supervisory approval)
+25 March 2034
+Governing Capital of Commercial
+Banks (Provisional)
+Including: Eligible to the parent
+company/group level
+Instrument type
+Amount recognised in regulatory capital
+(in millions, as at the latest reporting date)
+Par value of instrument (in millions)
+Accounting treatment
+Original date of issuance
+Parent company/Group
+Parent company/Group
+Parent company/Group
+Tier 2 capital bonds
+Tier 2 capital
+Tier 2 capital instrument
+Tier 2 capital instrument
+RMB45,000
+RMB10,000
+RMB45,000
+RMB10,000
+RMB45,000
+RMB45,000
+Debt securities issued
+24 April 2019
+Dated
+Perpetual or dated
+Debt securities issued
+21 March 2019
+Dated
+Debt securities issued
+21 March 2019
+Dated
+Including: Original maturity date
+Tier 2 capital instrument
+general creditor,
+Including: If convertible, mandatory or
+Tier 2 capital bonds
+Subordinated to depositor and
+Mandatory
+No
+No
+No
+Non-cumulative
+Non-cumulative
+Non-cumulative
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Main features of regulatory
+No
+capital instrument
+Including: If convertible, conversion trigger(s)
+Including: If convertible, fully or partially
+Including: If convertible, conversion rate
+Tier 2 capital bonds
+Tier 2 capital bonds
+Tier 2 capital bonds
+No
+No
+No
+N/A
+N/A
+Convertible or non-convertible
+No
+Mandatory
+No
+Mandatory
+4.45%
+Including: If convertible, conversion rate
+ICBC
+USD2,000
+Debt securities issued
+21 September 2015
+Dated
+RMB44,000
+RMB44,000
+Debt securities issued
+6 November 2017
+Dated
+RMB44,000
+RMB44,000
+Debt securities issued
+20 November 2017
+Dated
+21 September 2025
+No
+8 November 2027
+Yes
+22 November 2027
+N/A
+N/A
+8 November 2022, in full
+amount
+N/A
+Yes
+22 November 2022, in full
+amount
+N/A
+Fixed
+4.875%
+Fixed
+4.45%
+Fixed
+N/A
+(specify instrument type immediately
+N/A
+N/A
+Issuer would become
+non-viable
+Partial or full
+write-down
+Whichever occurs earlier:
+(i) CBIRC having decided that
+a write-down is necessary,
+without which the Issuer
+would become non-viable;
+or (ii) any relevant authority
+having decided that a public
+sector injection of capital
+or equivalent support is
+necessary, without which the
+Issuer would become
+non-viable
+Partial or full
+write-down
+Including: If write-down, permanent or temporary
+Permanent write-down
+Permanent write-down
+Permanent write-down
+Whichever occurs earlier:
+(i) CBIRC having decided that
+a write-down is necessary,
+without which the Issuer
+would become non-viable;
+or (ii) any relevant authority
+having decided that a public
+sector injection of capital
+or equivalent support is
+necessary, without which the
+Including: If temporary write-down,
+N/A
+N/A
+N/A
+Annual Report 2021
+293
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Main features of regulatory
+capital instrument
+Position in subordination hierarchy in liquidation
+description of write-up mechanism
+Yes
+Issuer would become
+non-viable
+Partial or full
+write-down
+(i) CBIRC having decided that
+a write-down is necessary,
+without which the Issuer
+would become non-viable;
+or (ii) any relevant authority
+having decided that a public
+sector injection of capital
+or equivalent support is
+necessary, without which the
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+optional conversion
+Including: If convertible, specify instrument type
+N/A
+N/A
+N/A
+convertible into
+Including: If convertible, specify issuer of
+N/A
+N/A
+N/A
+instrument it converts into
+Write-down feature
+Including: If write-down, write-down trigger(s)
+Yes
+Whichever occurs earlier:
+Yes
+Including: If write-down, full or partial
+N/A
+Including: If convertible, mandatory or
+capital instrument
+Including: If convertible, specify instrument type
+Accounting treatment
+Par value of instrument (in millions)
+capital (in millions, as at the latest reporting date)
+Amount recognised in regulatory
+USD6,160
+Other equity
+RMB equivalent 39,742
+RMB70,000
+Other equity
+Parent company/Group
+Additional tier 1 capital
+instrument
+instrument
+RMB69,992
+Additional tier 1 capital
+Parent company/Group
+Including: Eligible to the parent company/group level
+Instrument type
+Banks (Provisional)
+Governing Capital of Commercial
+Original date of issuance
+Additional tier 1 capital
+Additional tier 1 capital
+Additional tier 1 capital
+Additional tier 1 capital
+Additional tier 1 capital
+Bond Issuance in China's
+Inter-bank Bond Market, as
+well as other applicable laws,
+regulations and normative
+documents/China
+Republic of China, the
+Regulation Governing
+Capital of Commercial Banks
+(Provisional) and the Measures
+for Administration of Financial
+Governed by the Commercial
+Banking Law of the People's
+The Bank
+2128044
+Undated additional tier 1
+capital bonds (Domestic)
+and construed in accordance
+with PRC law and regulations
+ISIN: XS2383421711
+The Notes and any other non-
+contractual obligations arising
+out of or in connection with
+them shall be governed by
+and construed in accordance
+with English law. However,
+the provisions in the terms
+and conditions of the Notes
+relating to subordination of
+the Notes shall be governed by
+The Bank
+Regulation S
+Undated additional tier 1
+capital bonds (Offshore)
+documents/China
+Additional tier 1 capital
+Bond Issuance in China's
+Inter-bank Bond Market, as
+well as other applicable laws,
+regulations and normative
+Perpetual or dated
+Issuer call (subject to prior supervisory approval)
+Including: Optional call date, contingent call dates
+and redemption amount
+Coupons/dividends
+capital instrument
+Main features of regulatory
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Unaudited Supplementary Information To The Consolidated Financial Statements
+ICBC
+290
+regulatory rules
+in full or in part on each
+Distribution Payment Date
+since the First Redemption
+Date (26 November 2026).
+The Issuer has the right to
+redeem the present bonds in
+full rather than in part if the
+present bonds are no longer
+qualified as additional tier 1
+capital after
+they are issued due to
+unpredictable changes in
+26 November 2026
+in full or partial amount
+Redemption of present bonds
+No maturity date
+Yes
+The First Redemption Date is
+Perpetual
+24 November 2021
+RMB30,000
+Other equity
+Including: Original maturity date
+RMB29,997
+Parent company/Group
+Additional tier 1 capital
+capital after
+they are issued due to
+unpredictable changes in
+regulatory rules
+The Issuer has the right to
+redeem the present bonds in
+full rather than in part if the
+present bonds are no longer
+qualified as additional tier 1
+24 September 2026,
+in full or partial amount
+Redemption of present bonds
+in full or in part on each
+Distribution Payment Date
+since the First Redemption
+Date (24 September 2026).
+The First Redemption Date is
+No maturity date
+Yes
+24 September 2021
+Perpetual
+they are issued due to
+unpredictable changes in
+regulatory rules
+capital after
+Date (8 June 2026).
+The Issuer has the right to
+redeem the present bonds in
+full rather than in part if the
+present bonds are no longer
+qualified as additional tier 1
+in full or in part on each
+Distribution Payment Date
+since the First Redemption
+The First Redemption
+Date is 8 June 2026,
+in full or partial amount
+Redemption of present bonds
+4 June 2021
+Perpetual
+No maturity date
+Yes
+Including: Subsequent call dates, if applicable
+instrument
+Including: Fixed or floating dividend/coupon
+Including: Coupon rate and any related index
+Governed by the Commercial
+Banking Law of the People's
+Republic of China, the
+Regulation Governing
+Capital of Commercial Banks
+(Provisional) and the Measures
+for Administration of Financial
+Undated additional tier 1
+capital bonds (Domestic)
+N/A
+description of write-up mechanism
+Position in subordination hierarchy in liquidation
+(specify instrument type immediately
+senior to instrument)
+Including: If temporary write-down,
+or temporary
+Including: If write-down, permanent
+Trigger Event occurs
+Permanent write-down
+Trigger Event occurs; full write-
+down when a Tier 2 Capital
+Additional Tier 1 Capital
+write-down when an
+Full or partial
+N/A
+N/A
+Trigger Event
+Trigger Event or Tier 2 Capital
+N/A
+Additional Tier 1 Capital
+N/A
+Yes
+No
+No
+N/A
+The Bank
+The Bank
+N/A
+Core tier 1 capital
+Core tier 1 capital
+Mandatory
+Including: If write-down, full or partial
+Including: If write-down, write-down trigger(s)
+Write-down feature
+N/A
+The Bank
+2128021
+Subordinated to deposits,
+general debts, subordinated
+N/A
+arrangement of Regulation
+Including: Post-transition
+of Commercial Banks (Provisional)
+Including: Transition arrangement
+of Regulation Governing Capital
+Regulatory treatment
+Governing law(s) of the instrument
+Unique identifier
+Issuer
+capital instrument
+Main features of regulatory
+(In RMB millions, unless otherwise stated)
+For the year ended 31 December 2021
+Unaudited Supplementary Information To The Consolidated Financial Statements
+289
+debts, tier 2 capital bonds
+and undated additional tier 1
+Annual Report 2021
+N/A
+No
+No
+capital bonds
+N/A
+capital bonds
+No
+Including: If yes, specify non-compliant features
+Non-compliant transitioned features
+general debts, subordinated
+debts and tier 2 capital bonds
+Subordinated to deposits,
+N/A
+debts, tier 2 capital bonds
+and undated additional tier 1
+Subordinated to deposits,
+general debts, subordinated
+N/A
+N/A
+Including: Existence of a dividend stopper
+Including: Fully discretionary,
+partially discretionary or
+mandatory cancellation of coupons/dividends
+Including: Redemption incentive mechanism
+Including: Non-cumulative or cumulative
+Bond Issuance in China's
+Inter-bank Bond Market, as
+well as other applicable laws,
+regulations and normative
+documents
+Republic of China, the
+Regulation Governing
+Capital of Commercial Banks
+(Provisional) and the Measures
+for Administration of Financial
+Governed by the Commercial
+Banking Law of the People's
+ISIN: USY39656AC06
+The Notes and the Fiscal
+Agency Agreement shall be
+governed by, and shall be
+construed in accordance with
+New York law, except that
+the provisions of the Notes
+relating to subordination shall
+be governed by, and construed
+in accordance with PRC law
+ISIN: US455881AD47
+Regulation S
+Rule 144A
+Tier 2 capital bonds
+The Bank
+1728022
+Tier 2 capital bonds
+The Bank
+1728021
+Tier 2 capital bonds
+The Bank
+Including: Transition arrangement
+of Regulation Governing Capital
+Regulatory treatment
+Governing law(s) of the instrument
+Unique identifier
+Issuer
+Governed by the Commercial
+Banking Law of the People's
+Republic of China, the
+Regulation Governing
+Capital of Commercial Banks
+(Provisional) and the Measures
+for Administration of Financial
+capital instrument
+(In RMB millions, unless otherwise stated)
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+291
+Annual Report 2021
+N/A
+N/A
+N/A
+No
+No
+optional conversion
+debts and tier 2 capital bonds
+general debts, subordinated
+Subordinated to deposits,
+Subordinated to deposits,
+general debts, subordinated
+debts and tier 2 capital bonds
+Main features of regulatory
+Subordinated to deposits,
+general debts, subordinated
+debts and tier 2 capital bonds
+Bond Issuance in China's
+Inter-bank Bond Market, as
+well as other applicable laws,
+regulations and normative
+documents
+Tier 2 capital
+292
+Including: Fixed or floating dividend/coupon
+Including: Coupon rate and any related index
+Including: Existence of a dividend stopper
+Including: Fully discretionary, partially discretionary
+or mandatory cancellation of coupons/dividends
+Including: Redemption incentive mechanism
+Including: Non-cumulative or cumulative
+call dates and redemption amount
+Including: Subsequent call dates, if applicable
+Coupons/dividends
+Including: Optional call date, contingent
+Issuer call (subject to prior supervisory approval)
+Including: Original maturity date
+Perpetual or dated
+Original date of issuance
+Accounting treatment
+Par value of instrument (in millions)
+Amount recognised in regulatory capital
+(in millions, as at the latest reporting date)
+Instrument type
+company/group level
+RMB equivalent 10,127
+Tier 2 capital
+Tier 2 capital instrument
+Tier 2 capital instrument
+Parent company/Group
+Parent company/Group
+Parent company/Group
+Including: Eligible to the parent
+Banks (Provisional)
+Governing Capital of Commercial
+arrangement of Regulation
+Tier 2 capital
+Tier 2 capital
+Tier 2 capital
+Including: Post-transition
+of Commercial Banks (Provisional)
+Tier 2 capital
+Tier 2 capital instrument
+N/A
+Including: If yes, specify non-compliant features
+Non-compliant transitioned features
+N/A
+N/A
+N/A
+N/A
+N/A
+No
+No
+No
+Non-cumulative
+Non-cumulative
+Non-cumulative
+No
+No
+No
+N/A
+Fully discretionary
+3.65% (interest rate) before
+26 November 2026
+Fixed to floating
+Undated additional tier 1
+capital bonds (Domestic)
+Fully discretionary
+Yes
+Fixed to floating
+3.20% (interest rate) before
+24 September 2026
+Undated additional tier 1
+capital bonds (Offshore)
+Fully discretionary
+4.04% (interest rate) before
+8 June 2026
+Yes
+Fixed to floating
+Undated additional tier 1
+capital bonds (Domestic)
+Including: If convertible, fully or partially
+Including: If convertible, conversion trigger(s)
+Convertible or non-convertible
+Yes
+N/A
+N/A
+N/A
+(specify instrument type immediately senior to
+instrument)
+Position in subordination hierarchy in liquidation
+description of write-up mechanism
+Including: If temporary write-down,
+Non-viability Trigger Event
+Full or partial write-down
+when a Non-viability Trigger
+Event occurs
+Permanent write-down
+N/A
+Yes
+N/A
+Non-viability Trigger Event
+Full or partial write-down
+when a Non-viability Trigger
+Event occurs
+Permanent write-down
+Yes
+N/A
+N/A
+Non-viability Trigger Event
+Full or partial write-down
+when a Non-viability Trigger
+Event occurs
+Permanent write-down
+Yes
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+Including: If convertible, conversion rate
+Including: If convertible, mandatory or
+optional conversion
+issuer of instrument it converts into
+Including: If convertible, specify instrument
+Including: If convertible, specify issuer of
+instrument it converts into
+Write-down feature
+Including: If write-down, write-down trigger(s)
+Including: If write-down, full or partial
+Including: If write-down, permanent or temporary
+type convertible into
+Including: If convertible, specify
+No
+Including: If convertible, specify
+Including: Transition arrangement
+of Regulation Governing Capital
+Regulatory treatment
+as other applicable
+laws, regulations and
+normative documents
+and the Measures
+for Administration of
+Financial Bond Issuance
+in China's Inter-bank
+Bond Market, as well
+Governed by the
+Commercial Banking
+Law of the People's
+Republic of China, the
+Regulation Governing
+Capital of Commercial
+Banks (Provisional)
+The Bank
+2028050
+as other applicable
+laws, regulations and
+normative documents
+in China's Inter-bank
+Bond Market, as well
+and the Measures
+for Administration of
+Financial Bond Issuance
+Banks (Provisional)
+Governed by the
+Commercial Banking
+Law of the People's
+Republic of China, the
+Regulation Governing
+Capital of Commercial
+The Bank
+2028049
+Tier 2 capital bonds Tier 2 capital bonds
+as other applicable
+laws, regulations and
+normative documents
+of Commercial Banks (Provisional)
+as other applicable
+laws, regulations and
+normative documents
+Governed by the
+Commercial Banking
+Law of the People's
+Republic of China, the
+Regulation Governing
+Capital of Commercial
+Banks (Provisional)
+and the Measures
+for Administration of
+Financial Bond Issuance
+Governing law(s) of the instrument
+Unique identifier
+Issuer
+Tier 2 capital bonds
+The Bank
+1928012
+capital instrument
+Main features of regulatory
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Unaudited Supplementary Information To The Consolidated Financial Statements
+ICBC
+296
+N/A
+No
+pari passu with other tier 2
+capital instruments that will
+possibly be issued in the future
+and are pari passu with the
+present bonds
+in China's Inter-bank
+Bond Market, as well
+hybrid capital bonds; pari
+passu with other subordinated
+debts that have been issued by
+the Issuer and are pari passu
+with the present bonds; and
+Including: Post-transition
+Governing Capital of Commercial
+Banks (Provisional)
+Debt securities issued
+12 November 2020
+Dated
+RMB30,000
+instrument
+RMB30,000
+Tier 2 capital
+Tier 2 capital
+RMB60,000
+instrument
+RMB60,000
+Tier 2 capital
+instrument
+RMB10,000
+Tier 2 capital
+Parent company/Group Parent company/Group Parent company/Group Parent company/Group
+Tier 2 capital
+Tier 2 capital
+Tier 2 capital
+arrangement of Regulation
+Tier 2 capital
+Tier 2 capital
+Tier 2 capital
+Tier 2 capital
+call dates and redemption amount
+Including: Subsequent call dates, if applicable
+Coupons/dividends
+Issuer call (subject to prior supervisory approval)
+Including: Optional call date, contingent
+Including: Original maturity date
+Perpetual or dated
+Original date of issuance
+Accounting treatment
+Par value of instrument (in millions)
+(in millions, as at the latest reporting date)
+Amount recognised in regulatory capital
+Instrument type
+Including: Eligible to the parent
+company/group level
+Tier 2 capital
+instrument
+RMB10,000
+Subordinated to depositor and
+general creditor; but senior
+to equity capital, additional
+tier 1 capital instruments and
+pari passu with other tier 2
+capital instruments that will
+possibly be issued in the future
+and are pari passu with the
+present bonds
+No
+N/A
+(In RMB millions, unless otherwise stated)
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+295
+Annual Report 2021
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+Main features of regulatory
+N/A
+No
+No
+No
+Non-cumulative
+Non-cumulative
+Non-cumulative
+No
+No
+No
+convertible into
+N/A
+N/A
+instrument type convertible into
+N/A
+N/A
+N/A
+Including: If convertible, specify issuer of
+Write-down feature
+hybrid capital bonds; pari
+passu with other subordinated
+debts that have been issued by
+the Issuer and are pari passu
+with the present bonds; and
+Subordinated to depositor and
+general creditor; but senior
+to equity capital, additional
+tier 1 capital instruments and
+the Issuer and are pari passu
+with the present bonds; and
+pari passu with other tier 2
+capital instruments that will
+possibly be issued in the future
+and are pari passu with the
+present bonds
+No
+N/A
+hybrid capital bonds; pari
+passu with other subordinated
+debts that have been issued by
+Subordinated to depositor and
+general creditor; but senior
+to equity capital, additional
+tier 1 capital instruments and
+Including: If yes, specify non-compliant features
+Non-compliant transitioned features
+Including: If write-down, permanent or temporary
+Including: If temporary write-down, description
+of write-up mechanism
+Position in subordination hierarchy in liquidation
+(specify instrument type immediately
+senior to instrument)
+Including: If write-down, full or partial
+Permanent write-down
+Partial or full
+write-down
+non-viable
+Issuer would become
+without which the Issuer
+would become non-viable;
+or (ii) any relevant authority
+having decided that a public
+sector injection of capital
+or equivalent support is
+necessary, without which the
+instrument it converts into
+Whichever occurs earlier:
+(i) CBIRC having decided that
+a write-down is necessary,
+Issuer would become
+non-viable
+Partial or full
+write-down
+Permanent write-down
+N/A
+N/A
+Issuer would become
+non-viable
+Partial or full
+write-down
+Permanent write-down
+Whichever occurs earlier:
+(i) CBIRC having decided that
+a write-down is necessary,
+without which the Issuer
+would become non-viable;
+or (ii) any relevant authority
+having decided that a public
+sector injection of capital
+or equivalent support is
+necessary, without which the
+Yes
+Whichever occurs earlier:
+(i) CBIRC having decided that
+a write-down is necessary,
+without which the Issuer
+would become non-viable;
+or (ii) any relevant authority
+having decided that a public
+sector injection of capital
+or equivalent support is
+necessary, without which the
+Yes
+N/A
+N/A
+N/A
+Tier 2 capital bonds
+Tier 2 capital bonds
+Tier 2 capital bonds
+Including: If write-down, write-down trigger(s)
+Yes
+RMB10,000
+Tier 2 capital bonds
+The Bank
+2028041
+Governed by the
+Commercial Banking
+Law of the People's
+Republic of China, the
+Regulation Governing
+Capital of Commercial
+Banks (Provisional)
+and the Measures
+for Administration of
+Financial Bond Issuance
+in China's Inter-bank
+Bond Market, as well
+RMB10,000
+Whichever occurs
+Yes
+Including: If write-down,
+N/A
+Including: If temporary write-down,
+description of
+permanent or temporary
+Permanent write-down
+non-viable
+Partial or full
+write-down
+relevant authority
+having decided that a
+public sector injection
+of capital or equivalent
+support is necessary,
+without which the
+Issuer would become
+Whichever occurs
+earlier: (i) CBIRC having
+decided that a write-
+down is necessary,
+without which the
+Issuer would become
+non-viable; or (ii) any
+Yes
+Including: If write-down, full or partial
+Including: If write-down, write-down trigger(s)
+N/A
+earlier: (i) CBIRC having
+decided that a write-
+down is necessary,
+without which the
+Issuer would become
+non-viable; or (ii) any
+NA
+N/A
+N/A
+N/A
+름름
+N/A
+N/A
+N/A
+름름
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+relevant authority
+having decided that a
+public sector injection
+of capital or equivalent
+support is necessary,
+without which the
+Issuer would become
+non-viable
+Partial or full
+write-down
+Permanent write-down
+N/A
+Yes
+Including: If convertible, mandatory or
+optional conversion
+N/A
+N/A
+Undated additional tier 1
+capital bonds (Domestic)
+the issuance plan
+Preference shares
+(Offshore)
+The initial conversion price is
+equal to the average trading
+price of the H shares of the
+Bank for the 20 trading days
+preceding 30 August 2018,
+the date of publication of the
+Board resolution in respect of
+issuance plan
+Mandatory
+equal to the
+average trading price of the
+A shares of the Bank for the
+20 trading days preceding
+30 August 2018, the date
+of publication of the Board
+resolution in respect of the
+The initial conversion price is
+Preference shares
+(Domestic)
+Including: If convertible, conversion rate
+capital instrument
+Main features of regulatory
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Unaudited Supplementary Information To The Consolidated Financial Statements
+ICBC
+298
+Whichever occurs
+earlier: (i) CBIRC having
+decided that a write-
+down is necessary,
+without which the
+Issuer would become
+non-viable; or (ii) any
+relevant authority
+having decided that a
+public sector injection
+of capital or equivalent
+support is necessary,
+without which the
+Issuer would become
+Yes
+Whichever occurs
+earlier: (i) CBIRC having
+decided that a write-
+down is necessary,
+without which the
+Issuer would become
+non-viable; or (ii) any
+relevant authority
+having decided that a
+public sector injection
+of capital or equivalent
+support is necessary,
+N/A
+without which the
+Issuer would become
+non-viable
+Partial or full
+write-down
+Permanent write-down
+Permanent write-down
+N/A
+N/A
+Debt securities issued
+12 November 2020
+Dated
+non-viable
+Partial or full
+write-down
+N/A
+write-up mechanism
+N/A
+297
+Annual Report 2021
+mandatory cancellation of coupons/dividends
+partially discretionary or
+Mandatory
+No
+No
+Mandatory
+4.45%
+4.15%
+4.20%
+No
+Mandatory
+Mandatory
+Including: Fully discretionary,
+No
+Including: Existence of a dividend stopper
+Unaudited Supplementary Information To The Consolidated Financial Statements
+4.69%
+Fixed
+Fixed
+Fixed
+Including: Fixed or floating dividend/coupon
+Including: Coupon rate and any related index
+N/A
+N/A
+full amount
+16 November 2035
+Yes
+16 November 2030, in
+26 April 2029, in full 24 September 2025, in 16 November 2025, in
+full amount
+full amount
+amount
+N/A
+16 November 2030
+Yes
+Debt securities issued
+24 April 2019
+Dated
+26 April 2034
+Yes
+N/A
+Debt securities issued
+22 September 2020
+Dated
+24 September 2030
+Yes
+Fixed
+For the year ended 31 December 2021
+N/A
+Main features of regulatory
+N/A
+N/A
+N/A
+(In RMB millions, unless otherwise stated)
+N/A
+N/A
+N/A
+No
+No
+No
+Non-cumulative
+Non-cumulative
+Non-cumulative
+Non-cumulative
+No
+No
+convertible into
+Including: Redemption incentive mechanism
+Including: Non-cumulative or cumulative
+Convertible or non-convertible
+Including: If convertible, conversion rate
+Including: If convertible, mandatory or
+Including: If convertible, conversion trigger(s)
+Including: If convertible, fully or partially
+optional conversion
+Including: If convertible, specify instrument type
+No
+capital instrument
+instrument it converts into
+Write-down feature
+Tier 2 capital bonds Tier 2 capital bonds Tier 2 capital bonds Tier 2 capital bonds
+No
+No
+Including: If convertible, specify issuer of
+Physical traded commodities,
+including gold
+29
+225
+Other assets:
+26
+23
+interdependent liabilities
+27
+28
+767,339
+338,265
+46,394
+398,452
+33,460
+127,440
+39,435
+35,643
+30,297
+derivative contracts and
+contributions to
+Assets with matching
+default funds of CCPs
+Assets posted as initial margin for
+25
+24
+837,786
+less than or equal to 35%
+5,248,281
+12,105
+NSFR derivative assets
+under the Basel II
+standardised approach for
+credit risk
+Annual Report 2021
+305
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Weighted
+value
+954,346
+No.
+Securities that are not in
+default and do not qualify as
+HQLA, including
+exchange-traded equities
+Unweighted value
+No maturity
+1,204
+< 6 months
+358,325
+6 months to
+< 1 year
+≥ 1 year
+122,331
+Item
+30
+China
+63,978
+ANHUI BRANCH
+Address: No. 189 Wuhu Road,
+Hefei City, Anhui Province,
+Postcode: 230001
+Tel: 0551-62869178/62868101
+Fax: 0551-62868077
+BEIJING BRANCH
+Address: Tower B, Tianyin Mansion,
+No. 2 Fuxingmen South
+Street, Xicheng District,
+Beijing, China
+Postcode: 100031
+Tel: 010-66410579
+Fax: 010-66410579
+CHONGQING BRANCH
+Address: No. 61 Taichang Road,
+Nan'an District,
+Chongqing, China
+Postcode: 400061
+Tel: 023-62918002
+Fax: 023-62918059
+DALIAN BRANCH
+Address: No. 5 Zhongshan Square,
+Dalian City, Liaoning
+Province, China
+Postcode: 116001
+Tel: 0411-82378888
+Fax: 0411-82808377
+Address: No. 108 Gutian Road,
+FUJIAN BRANCH
+6,174,334
+16,370
+Domestic Institutions
+NSFR derivative liabilities with
+List of Domestic and Overseas Branches and Offices
+306
+18,076
+50,086*
+10,017
+additional variation margin
+posted
+31
+All other assets not included
+291,871
+398,452
+33,460
+27,819
+669,514
+in the above categories
+32
+Off-balance sheet items
+8,051,576
+33
+Total RSF
+246,740
+19,015,607
+34
+Net Stable Funding Ratio (%)
+128.18%
+The amount of derivative liabilities shall be filled in for this item, which is the amount of NSFR derivative liabilities without
+regard to maturity before deducting variation margin. It is excluded from the item 26 "Other assets".
+ICBC
+426
+12,178,241
+1,811
+428
+Other liabilities:
+12,026
+893,556
+32,890
+655,168
+637,737
+12
+NSFR derivative liabilities
+13
+All other liabilities and
+12,026
+893,556
+32,890
+45,902
+609,266
+637,737
+equities not included in
+the above categories
+14
+Total ASF
+24,374,604
+15
+Required stable funding (RSF) item
+Total NSFR high-quality
+11
+928,319
+123
+Liabilities with
+3,751
+Fuzhou City, Fujian
+Province, China
+7
+Wholesale funding:
+8,877,598
+6,778,034
+286,206
+228,739
+7,724,111
+8
+Operational deposits
+8,523,272
+590,924
+9
+Other wholesale funding
+354,326
+6,187,110
+6,131
+280,075
+1,459
+4,561,622
+227,280
+3,162,489
+10
+matching interdependent assets
+2,854
+liquid assets (HQLA)
+Deposits held at
+20
+Loans to retail and
+2,285,305
+2,251,951
+9,481,714
+10,237,311
+small business customers,
+non-financial institutions,
+sovereigns, central banks and
+PSES, of which:
+21
+With a risk weight of
+387,544
+380,370
+292,979
+562,690
+less than or equal to 35%
+under the Basel II
+standardised approach for
+credit risk
+22
+23
+22
+Residential mortgages, of which:
+With a risk weight of
+20
+16
+financial institutions
+secured by non-Level 1 HQLA
+169,469
+47,218
+2,362
+828
+110,594
+other financial institutions for
+operational purposes
+17
+Loans and securities:
+1,204
+18
+Loans to financial institutions
+3,989,223
+474,018
+2,716,285
+177
+16,646,113
+1,589
+16,962,615
+72,037
+869,764
+338,972
+150,690
+450,640
+secured by Level 1 HQLA
+19
+Loans to financial institutions
+and unsecured loans to
+Postcode: 350005
+Fax: 0755-82246247
+Fax: 0591-83353905/83347074
+Fax: 028-82866025
+TIANJIN BRANCH
+Address: No. 123 Weidi Road, Hexi
+District, Tianjin, China
+Postcode: 300074
+Tel: 022-28400648
+Fax: 022-28400123/022-28400647
+XIAMEN BRANCH
+Address: No. 17 Hubin North
+Road, Xiamen City, Fujian
+Province, China
+Postcode: 361012
+Tel: 0592-5292000
+Fax: 0592-5054663
+XINJIANG BRANCH
+Address: No. 231 Renmin Road,
+Tianshan District, Urumqi,
+Xinjiang Autonomous
+Region, China
+Postcode: 830002
+Tel: 0991-5981888
+Fax: 0991-2828608
+TIBET BRANCH
+Address: No. 31 Jinzhu Mid-Rd.,
+Lhasa, Tibet Autonomous
+Region
+Postcode: 850000
+Tel: 0891-6898002
+Fax: 0891-6898001
+YUNNAN BRANCH
+Address: Bank Mansion, No. 395
+Tel: 028-82866000
+Qingnian Road, Kunming
+City, Yunnan Province,
+China
+Postcode: 610020
+Tel: 0755-82246400
+SHANXI BRANCH
+Address: No. 145 Yingze Street,
+Taiyuan City, Shanxi
+Province, China
+Postcode: 030001
+Tel: 0351-6248888/6248011
+Fax: 0351-6248004
+SHAANXI BRANCH
+Address: No. 395 Dongxin Street,
+Xi'an City, Shaanxi
+Province, China
+Postcode: 710004
+Tel: 029-87602608/87602630
+Fax: 029-87602999
+SHANGHAI BRANCH
+Address: No. 8 Yincheng Road,
+Pudong New District,
+Shanghai, China
+Postcode: 200120
+Tel: 021-58885888/68088888
+Fax: 021-58882888
+SHENZHEN BRANCH
+Address: North Block Financial
+Center, No. 5055
+Shennan East Road, Luohu
+District, Shenzhen City,
+Guangdong Province,
+China
+Postcode: 518015
+SICHUAN BRANCH
+Address: No. 45 Zongfu Road,
+Jinjiang District, Chengdu
+City, Sichuan Province,
+China
+Fax: 0531-87941749/66681200
+Postcode: 650021
+Fax: 0871-63134637
+Xicheng District,
+Beijing, China
+Postcode: 100032
+Tel: 010-86509184
+Fax: 010-86509901
+Chongqing Bishan ICBC Rural
+Bank Co., Ltd.
+Address: No.8 Xianshan Road,
+Biquan Street, Bishan
+District, Chongqing, China
+Postcode: 402760
+Tel: 023-85297704
+Fax: 023-85297709
+Zhejiang Pinghu ICBC Rural
+Bank Co., Ltd.
+Address: No.258 Chengnan West
+Road, Pinghu City,
+Zhejiang Province, China
+Postcode: 314200
+Tel: 0573-85139616
+Fax: 0573-85139626
+308
+ICBC
+6,666
+All other assets not included in
+Address: No. 6 Financial Street,
+Tel: 0871-65536313
+ICBC Wealth Management Co.,
+Ltd.
+Postcode: 211800
+ZHEJIANG BRANCH
+Address: No. 66 Juyuan Road,
+Jianggan District,
+Hangzhou City, Zhejiang
+Province, China
+Postcode: 310016
+Tel: 0571-87803888
+Fax: 0571-87808207
+ICBC Credit Suisse Asset
+Management Co., Ltd.
+Address: Tower A, Xinsheng Plaza,
+No. 5 Financial Street,
+Xicheng District, Beijing,
+China
+Postcode: 100033
+Tel: 010-66583349
+Fax: 010-66583158
+ICBC Financial Leasing Co., Ltd.
+Address: Taida MSD-B1,
+No. 62 Second Street,
+Economic Development
+Zone, Tianjin, China
+Postcode: 300457
+Tel: 022-66283766/010-66105888
+Fax: 022-66224510/010-66105999
+ICBC-AXA Assurance Co., Ltd.
+Address: 19/F Mirae Asset Tower,
+No. 166 Lujiazui Ring
+Road, Pudong New Area,
+Shanghai, China
+Postcode: 200120
+Tel: 021-58792288
+Fax: 021-58792299
+ICBC Financial Asset Investment
+Co., Ltd.
+Address: 19-20/F, Tower B, Yang
+Zi S&T Innovation Center
+Phase I, Jiangbei New
+Area, No. 211 Pubin Road,
+Nanjing City, Jiangsu
+Province, China
+Tel: 025-58172219
+Tel: 0591-88087819/88087000
+Tel: 0531-66681114
+Address: No. 310 Jingsi Road, Jinan
+City, Shandong Province,
+China
+Address: No. 99 Jingsan Road,
+Zhengzhou City, Henan
+Province, China
+Postcode: 450011
+Tel: 0371-65776888/65776808
+Fax: 0371-65776889/65776988
+HEILONGJIANG BRANCH
+Address: No. 218 Zhongyang Street,
+Daoli District, Harbin City,
+Heilongjiang Province,
+China
+Postcode: 150010
+Tel: 0451-84668023/84668577
+Fax: 0451-84698115
+HUBEI BRANCH
+Address: No. 31 Zhongbei Road,
+Wuchang District, Wuhan
+City, Hubei Province, China
+Postcode: 430071
+Tel: 027-69908676/69908658
+Fax: 027-69908040
+HUNAN BRANCH
+Address: No. 619 Furong Middle
+Road Yi Duan, Changsha
+City, Hunan Province,
+China
+Postcode: 410011
+Tel: 0731-84428833/84420000
+Fax: 0731-84430039
+JILIN BRANCH
+Address: No. 9559 Renmin Avenue,
+HENAN BRANCH
+Changchun City,
+Tel: 0311-66000001
+Fax: 0311-66000002
+Address: Tower B, Zhonghua
+Shangwu Tower, No. 188
+Zhongshan West Road,
+Shijiazhuang City, Hebei
+Province, China
+GANSU BRANCH
+Address: No. 408 Qingyang Road,
+Chengguan District,
+Lanzhou City, Gansu
+Province, China
+Postcode: 730030
+Tel: 0931-8434172
+Fax: 0931-8435166
+GUANGDONG BRANCH
+Address: No. 123 Yanjiang West Road,
+Guangzhou City,
+Guangdong Province,
+China
+Postcode: 510120
+Tel: 020-81308130
+Fax: 020-81308789
+GUANGXI BRANCH
+Address: No. 15-1 Jiaoyu Road,
+Nanning City, Guangxi
+Zhuang Autonomous
+Region, China
+Postcode: 530022
+Tel: 0771-5316617
+Fax: 0771-5316617/2806043
+GUIZHOU BRANCH
+Address: No. 200 Zhonghua North
+Road, Yunyan District,
+Guiyang City, Guizhou
+Province, China
+Postcode: 550001
+Tel: 0851-88606280/88620018
+Fax: 0851-85963911
+HAINAN BRANCH
+Address: No. 54 Heping South
+Road, Haikou City, Hainan
+Province, China
+Postcode: 570203
+Tel: 0898-65303138/65342829
+Fax: 0898-65342986
+HEBEI BRANCH
+Postcode: 050051
+Postcode: 250001
+Jilin Province, China
+Tel: 0431-89569718/89569007
+West Road, Ningbo City,
+Zhejiang Province, China
+Postcode: 315010
+Tel: 0574-87361162
+Fax: 0574-87361190
+Annual Report 2021
+307
+List of Domestic and Overseas Branches and Offices
+NINGXIA BRANCH
+Address: No. 67 Zhonghai Road,
+Jinfeng District, Yinchuan
+City, Ningxia Autonomous
+Region, China
+Postcode: 750002
+Tel: 0951-5890912
+Fax: 0951-5890917
+QINGDAO BRANCH
+Address: No. 25 Shandong Road,
+Shinan District, Qingdao
+City, Shandong Province,
+China
+Postcode: 266071
+Tel: 0532-66211001
+Fax: 0532-85814711
+QINGHAI BRANCH
+Address: No. 2 Shengli Road, Xining
+City, Qinghai Province,
+China
+Postcode: 810001
+Tel: 0971-6169722/6152326
+Fax: 0971-6152326
+SHANDONG BRANCH
+Address: No. 218 Zhongshan
+Postcode: 130022
+NINGBO BRANCH
+Postcode: 010060
+Fax: 0431-88923808
+JIANGSU BRANCH
+Address: No. 408 Zhongshan
+South Road, Nanjing City,
+Jiangsu Province, China
+Postcode: 210006
+Tel: 025-52858000
+Fax: 025-52858111
+JIANGXI BRANCH
+Address: No. 233, Fuhe North Road,
+Nanchang City, Jiangxi
+Province, China
+Postcode: 330008
+Tel: 0791-86695682/86695018
+Fax: 0791-86695230
+LIAONING BRANCH
+Address: No. 88 Nanjing North
+Road, Heping District,
+Shenyang City, Liaoning
+Province, China
+Postcode: 110001
+Tel: 024-23491600
+Fax: 024-23491609
+INNER MONGOLIA BRANCH
+Address: No. 10 East 2nd Ring Road,
+Xincheng District, Hohhot
+City, Inner Mongolia
+Autonomous Region,
+China
+Tel: 0471-6940833/6940297
+Fax: 0471-6940048
+7,150,972
+31
+Less stable deposits
+Agent transaction exposures
+16
+Total securities financing transaction exposures
+448,122
+427,396
+17
+Off-balance sheet exposure at gross notional amount
+6,328,760
+5,727,987
+18
+Less: Adjustments for conversion to credit equivalent amounts
+(4,084,283)
+(3,668,662)
+19
+Balance of adjusted off-balance sheet assets
+2,244,477
+2,059,325
+20
+Net tier 1 capital
+3,241,364
+2,872,792
+21
+22
+Balance of adjusted on- and off-balance sheet assets
+Leverage ratio
+37,292,522
+35,300,338
+8.69%
+15
+8.14%
+29,188
+CCR exposure for SFT assets
+67,843
+7
+Add-on amounts for PFE associated with all derivatives transactions
+Gross-up for derivatives collateral provided where deducted from the
+balance sheet assets pursuant to the operative accounting framework
+Less: Deductions of receivables assets for cash variation margin provided in
+derivatives transactions
+8
+Less: Exempted CCP leg of client-cleared trade exposures
+(128)
+(12,330)
+9
+Effective notional amount of written credit derivatives
+37,702
+42,669
+10
+11
+Less: Adjusted effective notional deductions for written credit derivatives
+Total derivative exposures
+(33,407)
+(12,858)
+181,005
+231,393
+12
+Gross SFT assets (with no recognition of netting), after adjusting for sale
+accounting transactions
+408,095
+398,208
+13
+Less: Netted amounts of cash payables and cash receivables of
+gross
+SFT assets
+14
+40,027
+Annual Report 2021
+301
+Unaudited Supplementary Information To The Consolidated Financial Statements
+2,187,318
+banking activities)
+789
+Non-operational deposits (all counterparties)
+5,699,530
+2,541,472
+Unsecured debt
+69,361
+69,361
+Secured funding
+11,893
+10
+11
+Additional requirements, of which:
+3,070,500
+1,261,208
+Outflows related to derivative exposures and other collateral requirements
+1,111,158
+1,111,158
+12
+Outflows related to loss of funding on debt products
+13
+Credit and liquidity facilities
+1,959,342
+150,050
+14
+Other contractual funding obligations
+8,996,693
+Operational deposits (excluding those generated from correspondent
+4,798,151
+14,765,584
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+7.
+Quantitative Information Disclosure of Liquidity Coverage Ratio Using Advanced
+Capital Management Approach
+The Group discloses liquidity coverage ratio using Advanced Capital Management Approach in accordance with Measures for
+the Disclosure of Information on Liquidity Coverage Ratio by Commercial Banks (Yin Jian Fa [2015] No. 52).
+S/N Item
+High-quality liquid assets
+1
+Fourth-quarter 2021
+Total
+unweighted
+Total
+weighted
+value
+value
+91,940
+Total high-quality liquid assets (HQLA)
+Cash outflows
+2
+Retail deposits and deposits form small business customers of which:
+13,206,445
+1,317,060
+3 4 5 6
+Stable deposits
+56,472
+2,063
+Less stable deposits
+13,149,973
+1,314,997
+Unsecured wholesale funding, of which:
+5,840,091
+146,069
+(16,053)
+32,582,224
+(17,138)
+34,418,918
+84,898
+N/A
+NA
+N/A
+Yes
+Yes
+Including: If convertible, fully or partially
+Including: If convertible, conversion rate
+Including: If convertible, mandatory or
+optional conversion
+Including: If convertible,
+specify instrument type convertible into
+Including: If convertible,
+specify issuer of instrument it converts into
+Write-down feature
+Including: If write-down, write-down trigger(s)
+Including: If write-down, full or partial
+Including: If write-down, permanent or temporary
+Including: If temporary write-down,
+description of write-up mechanism
+Position in subordination hierarchy in liquidation
+(specify instrument type immediately senior
+to instrument)
+Non-compliant transitioned features
+Including: If yes, specify non-compliant features
+Whichever occurs earlier:
+(i) CBIRC having decided that
+a write-down is necessary,
+without which the Issuer
+would become non-viable;
+or (ii) any relevant authority
+having decided that a public
+sector injection of capital
+or equivalent support is
+necessary, without which the
+Issuer would become
+non-viable
+Partial or full write-down
+Permanent write-down
+N/A
+Subordinated to depositor and
+general creditor; but senior to
+equity capital, additional tier 1
+capital instruments and hybrid
+capital bonds; pari passu with
+other subordinated debts
+that have been issued by the
+Issuer and are pari passu with
+the present bonds; and pari
+passu with other tier 2 capital
+instruments that will possibly
+be issued in the future and are
+pari passu with the present
+bonds
+No
+N/A
+N/A
+N/A
+N/A
+3.48%
+3.74%
+No
+Mandatory
+No
+Mandatory
+No
+Mandatory
+No
+No
+No
+Non-cumulative
+Non-cumulative
+Non-cumulative
+N/A
+No
+No
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+N/A
+No
+77,534
+Whichever occurs earlier:
+sector injection of capital
+or equivalent support is
+necessary, without which the
+Other adjustments
+Balance of adjusted on- and off-balance sheet assets
+31 December
+2021
+31 December
+2020
+35,171,383
+(251,092)
+104,865
+40,027
+2,244,477
+(17,138)
+37,292,522
+33,345,058
+(202,504)
+85,324
+29,188
+2,059,325
+(16,053)
+35,300,338
+(ii) Leverage Ratio, Net Tier 1 Capital, Balance of Adjusted On- and Off-balance Sheet Assets
+and Related Information
+S/N
+Item
+1
+234
+56
+On-balance sheet items (excluding derivatives and SFTs, but including
+collateral)
+Less: Asset amounts deducted in determining Basel III tier 1 capital
+Balance of adjusted on-balance sheet assets (excluding derivatives and SFTs)
+Replacement cost associated with all derivatives transactions (i.e. net of
+eligible cash variation margin)
+31 December
+2021
+31 December
+2020
+34,436,056
+32,598,277
+Adjustment for off-balance sheet items
+Adjustment for securities financing transactions
+Adjustments for derivative financial instruments
+Adjustments for fiduciary assets
+Issuer would become
+non-viable
+Partial or full write-down
+Permanent write-down
+N/A
+Subordinated to depositor and
+general creditor; but senior to
+equity capital, additional tier 1
+capital instruments and hybrid
+capital bonds; pari passu with
+other subordinated debts
+that have been issued by the
+Issuer and are pari passu with
+the present bonds; and pari
+passu with other tier 2 capital
+instruments that will possibly
+be issued in the future and are
+pari passu with the present
+bonds
+No
+N/A
+Yes
+Whichever occurs earlier:
+(i) CBIRC having decided that
+a write-down is necessary,
+without which the Issuer
+would become non-viable;
+or (ii) any relevant authority
+having decided that a public
+sector injection of capital
+or equivalent support is
+necessary, without which the
+Issuer would become
+non-viable
+Partial or full write-down
+Permanent write-down
+N/A
+Subordinated to depositor and
+general creditor; but senior to
+equity capital, additional tier 1
+capital instruments and hybrid
+capital bonds; pari passu with
+other subordinated debts
+that have been issued by the
+Issuer and are pari passu with
+the present bonds; and pari
+passu with other tier 2 capital
+instruments that will possibly
+be issued in the future and are
+pari passu with the present
+bonds
+No
+N/A
+(i) CBIRC having decided that
+a write-down is necessary,
+without which the Issuer
+would become non-viable;
+or (ii) any relevant authority
+having decided that a public
+300
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+6. Disclosure of Leverage Ratio
+The following information is disclosed in accordance with the Administrative Measures for Leverage Ratio of Commercial
+Banks (Revised) (CBRC No.1, 2015).
+(i) Correspondence between Regulatory Leverage Ratio Items and Accounting Items and their
+differences
+S/N
+Item
+1
+2
+3 4 5 6 7∞
+8
+Total consolidated assets as per published financial statements
+Consolidated adjustments for accounting purposes but outside
+the scope of regulatory consolidation
+ICBC
+77,512
+15
+Other contingent funding obligations
+and unsecured loans to
+financial institutions
+20
+Loans to retail and
+2,327,769
+2,194,968
+9,550,942 10,295,054
+small business customers,
+non-financial institutions,
+sovereigns, central banks and
+PSES, of which:
+21
+With a risk weight of
+491,444
+360,373
+298,663
+607,380
+less than or equal to 35%
+under the Basel II
+standardised approach for
+credit risk
+Annual Report 2021
+303
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+No.
+Item
+secured by non-Level 1 HQLA
+406,765
+171,280
+247,457
+15
+Total NSFR high-quality
+24,308,968
+979,487
+liquid assets (HQLA)
+16
+Deposits held at
+165,913
+37,813
+1,457
+914
+104,314
+other financial institutions for
+22
+operational purposes
+Loans and securities:
+1,266
+18
+Loans to financial institutions
+3,844,322
+479,994
+2,622,168
+1,701
+16,955,026
+136
+17,156,499
+72,421
+secured by Level 1 HQLA
+19
+Loans to financial institutions
+745,042
+17
+Required stable funding (RSF) item
+Residential mortgages, of which:
+With a risk weight of
+Other assets:
+27
+Physical traded commodities,
+329,722
+16,881
+418,055
+37,139
+148,589
+775,134
+14,349
+including gold
+28
+Assets posted as initial margin for
+4,638
+3,942
+29
+2
+30
+derivative contracts and
+contributions to
+default funds of CCPs
+NSFR derivative assets
+NSFR derivative liabilities with
+additional variation margin
+61,801
+13,883
+56,602*
+11,320
+posted
+26
+25
+interdependent liabilities
+Assets with matching
+less than or equal to 35%
+under the Basel II
+standardised approach for
+31 December 2021
+Unweighted value
+No maturity
+< 6 months
+6 months to
+< 1 year
+Weighted
+≥ 1 year
+2,093
+428
+3,384
+429
+6,376,331
+23
+value
+5,419,938
+10,029
+credit risk
+24
+Securities that are not in
+1,266
+289,424
+174,658
+856,337
+962,321
+default and do not qualify as
+HQLA, including
+exchange-traded equities
+25
+14,451
+Fixed
+Total ASF
+in the above categories
+ICBC
+5,840,091
+5,207,733
+112.20%
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+8.
+Quantitative Information Disclosure of Net Stable Funding Ratio (NSFR) Using
+Advanced Capital Management Approach
+The Group discloses net stable funding ratio information in accordance with Measures for the Disclosure of Information on
+Net Stable Funding Ratio by Commercial Banks (Yin Bao Jian Fa [2019] No. 11).
+31 December 2021
+Unweighted value
+No. Item
+No maturity
+< 6 months
+6 months to
+< 1 year
+Weighted
+≥ 1 year
+value
+Available stable funding (ASF) item
+1
+Capital:
+3,514,552
+418,412
+2
+3
+Regulatory capital
+3,514,552
+418,412
+302
+Data of the above table are the simple arithmetic average of the 92 calendar days' figures of the recent quarter.
+Liquidity coverage ratio (%)
+23
+5,289,975
+16
+Total cash outflows
+106,897
+7,572,721
+Cash inflows
+17
+Secured lending (including reverse repos and securities borrowing)
+528,439
+292,256
+18
+Inflows from fully performing exposures
+1,501,023
+963,271
+3,932,964
+3,932,964
+10
+Other cash inflows
+1,112,279
+1,109,461
+20
+Total cash inflows
+3,141,741
+2,364,988
+Total Adjusted
+Value
+21
+Total HQLA
+22
+Total net cash outflows
+19
+14
+Other capital instruments
+6,369,573
+4,293
+4,425,573
+Other wholesale funding
+344,641
+5,990,923
+294,806
+222,275
+3,025,033
+10 Liabilities with
+matching interdependent assets
+11
+Other liabilities:
+10,434
+1,002,488
+24,738
+654,537
+629,422
+12
+NSFR derivative liabilities
+13
+All other liabilities and
+10,434
+1,002,488
+24,738
+47,918
+606,619
+629,422
+equities not included
+14,226
+574,876
+8,253,459
+Operational deposits
+4
+Retail deposits and deposits from
+6,534,836
+7,093,483
+17,538
+10,164
+12,295,976
+small business customers:
+9
+5698 -
+Stable deposits
+Less stable deposits
+7 Wholesale funding:
+312,841
+37,393
+10,502
+6,973
+93,225
+6,497,443
+7,050,587
+7,036
+3,191
+12,202,751
+8,598,100
+6,565,799
+309,032
+226,568
+7,450,606
+42,896
+Fixed
+30 September 2021
+N/A
+Non-compliant transitioned features
+(specify instrument type immediately
+senior to instrument)
+Position in subordination hierarchy in liquidation
+capital instrument
+Main features of regulatory
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Unaudited Supplementary Information To The Consolidated Financial Statements
+418,055
+37,139
+82,150
+731,640
+the above categories
+32
+Off-balance sheet items
+8,033,526
+33
+Total RSF
+Including: If yes, specify non-compliant features
+Tier 2 capital bonds
+Subordinated to
+depositor and general
+creditor; but senior
+to equity capital,
+additional tier 1 capital
+instruments and
+hybrid capital bonds;
+pari passu with other
+subordinated debts
+that have been issued
+by the Issuer and are
+pari passu with the
+present bonds; and pari
+passu with other tier
+2 capital instruments
+that will possibly be
+issued in the future and
+that have been issued
+subordinated debts
+instruments and
+hybrid capital bonds;
+pari passu with other
+Tier 2 capital bonds
+Subordinated to
+depositor and general
+creditor; but senior
+to equity capital,
+additional tier 1 capital
+No
+N/A
+present bonds
+that will possibly be
+issued in the future and
+are pari passu with the
+passu with other tier
+2 capital instruments
+34
+pari passu with the
+present bonds; and pari
+that have been issued
+subordinated debts
+instruments and
+hybrid capital bonds;
+pari passu with other
+Subordinated to
+depositor and general
+creditor; but senior
+to equity capital,
+additional tier 1 capital
+Tier 2 capital bonds
+No
+N/A
+present bonds
+are pari passu with the
+by the Issuer and are
+Net Stable Funding Ratio (%)
+247,195
+19,262,629
+126.20%
+(*)
+358,573
+3,737,677
+3,737,677
+3
+Other capital instruments
+4
+Retail deposits and deposits from
+6,408,762
+7,201,693
+3,379,104
+11,731
+12,275,079
+small business customers:
+569% o
+Stable deposits
+39,189
+50,721
+5,065
+6,613
+10,364
+by the Issuer and are
+358,573
+Weighted
+value
+The amount of derivative liabilities shall be filled in for this item, which is the amount of NSFR derivative liabilities without
+regard to maturity before deducting variation margin. It is excluded from the item 26 "Other assets".
+304
+ICBC
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+30 September 2021
+Unweighted value
+Item
+1
+3,379,104
+Capital:
+2
+No.
+Available stable funding (ASF) item
+Regulatory capital
+No maturity
+< 6 months
+6 months to
+< 1 year
+≥ 1 year
+96,838
+pari passu with the
+present bonds; and pari
+Fixed
+4.15%
+that will possibly be
+issued in the future and
+Issuer call (subject to prior supervisory approval)
+Including: Optional call date,
+contingent call dates and redemption amount
+Including: Subsequent call dates, if applicable
+Coupons/dividends
+Including: Fixed or floating dividend/coupon
+Including: Coupon rate and any related index
+Including: Existence of a dividend stopper
+Including: Fully discretionary, partially discretionary
+or mandatory cancellation of coupons/dividends
+Including: Redemption incentive mechanism
+Including: Non-cumulative or cumulative
+Convertible or non-convertible
+Including: If convertible, conversion trigger(s)
+21 January 2031
+Yes
+21 January 2026, in full
+amount
+N/A
+15 December 2031
+Yes
+15 December 2026, in full
+amount
+15 December 2036
+Yes
+15 December 2031,
+in full amount
+Including: Original maturity date
+N/A
+capital (in millions, as at the
+Amount recognised in regulatory
+Instrument type
+company/group level
+Tier 2 capital instrument
+Tier 2 capital instrument
+Tier 2 capital instrument
+Parent company/Group
+latest reporting date)
+Parent company/Group
+Tier 2 capital bonds
+Dated
+Tier 2 capital bonds
+Dated
+passu with other tier
+2 capital instruments
+Accounting treatment
+Original date of issuance
+RMB30,000
+RMB30,000
+RMB50,000
+RMB50,000
+Debt securities issued
+19 January 2021
+Tier 2 capital bonds
+Dated
+Debt securities issued
+13 December 2021
+Par value of instrument (in millions)
+RMB10,000
+Debt securities issued
+13 December 2021
+299
+Unaudited Supplementary Information To The Consolidated Financial Statements
+For the year ended 31 December 2021
+(In RMB millions, unless otherwise stated)
+Main features of regulatory capital instrument
+Perpetual or dated
+RMB10,000
+Parent company/Group
+Annual Report 2021
+Banks (Provisional)
+Tier 2 capital bonds
+Regulatory treatment
+Governing law(s) of the instrument
+Unique identifier
+Main features of regulatory capital instrument
+Issuer
+N/A
+No
+present bonds
+The Bank
+2128002
+are pari passu with the
+subordinated debts
+that have been issued
+instruments and
+hybrid capital bonds;
+pari passu with other
+to equity capital,
+additional tier 1 capital
+Tier 2 capital bonds
+Subordinated to
+depositor and general
+creditor; but senior
+No
+N/A
+present bonds
+Including: Eligible to the parent
+are pari passu with the
+passu with other tier
+2 capital instruments
+that will possibly be
+issued in the future and
+Tier 2 capital bonds
+The Bank
+2128051
+Governed by the Commercial
+Banking Law of the People's
+by the Issuer and are
+pari passu with the
+present bonds; and pari
+Governed by the Commercial
+Banking Law of the People's
+Republic of China, the
+Regulation Governing
+Capital of Commercial Banks
+(Provisional) and the Measures
+for Administration of Financial
+arrangement of Regulation
+Tier 2 capital bonds
+Tier 2 capital
+Tier 2 capital
+Tier 2 capital
+Capital of Commercial Banks (Provisional)
+Regulation Governing
+Governing Capital of Commercial
+Tier 2 capital
+Tier 2 capital
+Including: Post-transition
+Including: Transition arrangement of
+Bond Issuance in China's
+Inter-bank Bond Market, as
+well as other applicable laws,
+regulations and normative
+documents
+Republic of China, the
+Regulation Governing
+Capital of Commercial Banks
+(Provisional) and the Measures
+for Administration of Financial
+Bond Issuance in China's
+Inter-bank Bond Market, as
+well as other applicable laws,
+regulations and normative
+documents
+The Bank
+2128052
+Governed by the Commercial
+Banking Law of the People's
+Bond Issuance in China's
+Inter-bank Bond Market, as
+well as other applicable laws,
+regulations and normative
+documents
+Tier 2 capital
+Republic of China, the
+Regulation Governing
+Capital of Commercial Banks
+(Provisional) and the Measures
+for Administration of Financial
+Industrial and Commercial Bank
+of China Limited, Mongolia
+Representative Office
+Address: Suite 1108, 11th floor,
+Email: busanadmin@kr.icbc.com.cn
+Tel: +82-514638868
+Fax: +82-514636880
+SWIFT: ICBKKRSE
+Industrial and Commercial Bank
+of China Limited, Busan Branch
+Address: 1st Floor, ABL Life Bldg.,
+# 640 Jungang-daero,
+Busanjin-gu, Busan 47353,
+Korea
+Email: icbcseoul@kr.icbc.com.cn
+Tel: +82-237886670
+Fax: +82-27553748
+SWIFT: ICBKKRSE
+Bldg., #73 Sejong-daero,
+Jung-gu, Seoul 100-767,
+Korea
+Email: icbctokyo@icbc.co.jp
+Tel: +813-52232088
+Fax: +813-52198525
+SWIFT: ICBKJPJT
+Industrial and Commercial Bank
+of China Limited, Tokyo Branch
+Address: 5-1 Marunouchi 1-Chome,
+Chiyoda-Ku Tokyo,
+100-6512, Japan
+Asia-Pacific
+Tel: +853-28555222
+Shangri-la Office,
+Shangri-la Centre,
+19A Olympic Street,
+Sukhbaatar District-1,
+Ulaanbaatar, Mongolia
+Fax: +853-28338064
+SWIFT: ICBKMOMM
+Industrial and Commercial Bank
+of China Limited, Seoul Branch
+Address: 16th Floor, Taepyeongno
+Email: mgdbcgw@dccsh.icbc.com.cn
+Tel: +976-77108822,
++976-77106677
+Kuala Lumpur City Centre,
+50088 Kuala Lumpur,
+Malaysia
+Industrial and Commercial Bank
+of China Limited, Singapore
+Branch
+Address: 6 Raffles Quay #12-01,
+Singapore 048580
+Email: icbcsg@sg.icbc.com.cn
+Tel: +65-65381066
+Fax: +65-65381370
+SWIFT: ICBKSGSG
+PT. Bank ICBC Indonesia
+Address: The City Tower 32nd Floor,
+JI. M.H. Thamrin No. 81,
+Jakarta Pusat 10310,
+Indonesia
+Email: cs@ina.icbc.com.cn
+Tel: +62-2123556000
+Fax: +62-2131996016
+SWIFT: ICBKIDJA
+Industrial and Commercial Bank
+of China (Malaysia) Berhad
+Address: Level 10, Menara Maxis,
+Email: icbcmalaysia@my.icbc.com.cn
+Tel: +603-23013399
+Fax: +603-23013388
+SWIFT: ICBKMYKL
+Industrial and Commercial Bank
+of China Limited, Manila Branch
+Address: 24F, The Curve,
+32nd Street Corner,
+3rd Ave, BGC, Taguig City,
+Manila 1634, Philippines
+Email: icbc@mc.icbc.com.cn
+Email: info@ph.icbc.com.cn
+Tel: +63-282803300
+Fax: +976-77108866
+No.393-437, 9 Andar,
+Edf. Dynasty Plaza,
+Macau SAR, China
+SWIFT: ICBKHKHH
+Industrial and Commercial Bank
+of China Limited, Macau Branch
+Address: Alm. Dr. Carlos
+Email: info@nz.icbc.com.cn
+Fax: +63-284032023
+List of Domestic and Overseas Branches and Offices
+Overseas Institutions
+Hong Kong SAR and Macau
+SAR
+Industrial and Commercial Bank
+of China Limited, Hong Kong
+Branch
+Address: 33/F, ICBC Tower,
+3 Garden Road, Central,
+Hong Kong SAR, China
+Email: icbchk@icbcasia.com
+Tel: +852-25881188
+Fax: +852-25881160
+Industrial and Commercial Bank
+of China (Asia) Limited
+Address: 33/F, ICBC Tower,
+3 Garden Road, Central,
+Hong Kong SAR, China
+d'Assumpcao,
+Email: enquiry@icbcasia.com
+Tel: +852-35108888
+SWIFT: UBHKHKHH
+ICBC International Holdings
+Limited
+Address: 37/F, ICBC Tower,
+3 Garden Road, Central,
+Hong Kong SAR, China
+Email: info@icbci.com.hk
+Tel: +852-26833888
+Fax: +852-26833900
+SWIFT: ICILHKH1
+Industrial and Commercial Bank
+of China (Macau) Limited
+Address: 18th Floor, ICBC Tower,
+Macau Landmark, 555
+Avenida da Amizade,
+Macau SAR, China
+Email: icbc@mc.icbc.com.cn
+Tel: +853-28555222
+Fax: +853-28338064
+SWIFT: ICBKMOMX
+Fax: +852-28051166
+SWIFT: ICBKPHMM
+Street 106, Phnom Penh,
+Cambodia
+Address: 622 Emporium Tower
+United Arab Emirates
+P.O. Box: 506856
+Email: dboffice@dxb.icbc.com.cn
+Tel: +971-47031111
+New Zealand
+Fax: +971-47031199
+SWIFT: ICBKAEAD
+Industrial and Commercial Bank
+of China Limited, Abu Dhabi
+Branch
+Address: Addax Tower Offices
+5207, 5208 and 5209,
+Al Reem Island, Abu Dhabi,
+United Arab Emirates
+P.O. Box 62108
+Email: dboffice@dxb.icbc.com.cn
+Tel: +971-24998600
+Fax: +971-24998622
+SWIFT: ICBKAEAA
+Industrial and Commercial Bank
+of China Limited, Doha (QFC)
+Branch
+Address: Level 20, Burj Doha, Al
+Corniche Street, West Bay,
+Doha, Qatar
+P.O. BOX: 11217
+Email: ICBCDOHA@doh.icbc.com.cn
+Tel: +974-44072758
+Fax: +974-44072751
+SWIFT: ICBKQAQA
+Industrial and Commercial Bank
+of China Limited, Riyadh Branch
+Address: Level 4&8, A1 Faisaliah
+Tower Building
+International Financial
+Center, Dubai,
+No: 7277-King Fahad Road
+Al Olaya, Zip Code: 12212,
+Additional No.: 3333,
+Unit No.:95,
+Address: Floor 5&6, Gate Village
+Address: 801, 8th Floor, A Wing,
+One BKC, C-66, G
+Block, Bandra Kurla
+Complex, Bandra East,
+Mumbai-400051, India
+Email: icbcmumbai@india.icbc.com.cn
+Tel: +91-2271110300
+Fax: +91-2271110353
+SWIFT: ICBKINBB
+Industrial and Commercial
+Bank of China Limited, Yangon
+Branch
+Address: ICBC Center, Crystal
+Tower, Kyun Taw Road,
+Kamayut Township,
+Yangon, Myanmar
+Tel: +95-019339258
+Fax: +95-019339278
+SWIFT: ICBKMMMY
+Industrial and Commercial Bank
+of China (Almaty) Joint Stock
+Company
+Address: 150/230, Abai/Turgut
+Ozal Street, Almaty,
+Kazakhstan. 050046
+Email: office@kz.icbc.com.cn
+Tel: +7-7272377085
+SWIFT: ICBKKZKX
+Industrial and Commercial Bank
+of China Limited, Karachi Branch
+Address: 15th & 16th Floor, Ocean
+Tower, G-3,
+Block-9, Scheme # 5,
+Main Clifton Road,
+Karachi,
+Pakistan.P.C:75600
+Email: service@pk.icbc.com.cn
+Tel: +92-2135208988
+Fax: +92-2135208930
+SWIFT: ICBKPKKA
+Industrial and Commercial
+Bank of China Limited, Mumbai
+Branch
+Industrial and Commercial Bank
+of China Limited, Dubai (DIFC)
+Branch
+Kingdom of Saudi Arabia
+Email: service@sa.icbc.com.cn
+Tel: +966-112899800
+Fax: +966-112899879
+SWIFT: ICBKSARI
+Chanthabouly District,
+Vientiane Capital, Lao PDR
+Sibounheuang Village,
+No.358, Unit 12,
+Address: Asean Road, Home
+of China Limited, Vientiane
+Branch
+Industrial and Commercial Bank
+Email: hcmadmin@vn.icbc.com.cn
+Tel: +84-28-35208991
+building, 33 Le Duan
+Street, District 1, Ho Chi
+Minh City, Vietnam
+Industrial and Commercial Bank
+of China Limited, Ho Chi Minh
+City Representative Office
+Address: 12th floor Deutsches Haus
+List of Domestic and Overseas Branches and Offices
+309
+Annual Report 2021
+Email: admin@vn.icbc.com.cn
+Tel: +84-2462698888
+Fax: +84-2462699800
+SWIFT: ICBKVNVN
+Center, No.360, Kim Ma
+Str., Ba Dinh Dist., Hanoi,
+Vietnam
+Industrial and Commercial Bank
+of China Limited, Hanoi Branch
+Address: 3rd Floor Daeha Business
+Fax: +66-26639888
+SWIFT: ICBKTHBK
+Tel: +66-26295588
+Road, Khlong Ton, Khlong
+Toei, Bangkok, Thailand
+11th-13th Fl., Sukhumvit
+Email: icbcvte@la.icbc.com.cn
+Tel: +856-21258888
+Fax: +856-21258897
+SWIFT: ICBKLALA
+Industrial and Commercial Bank
+of China Limited, Phnom Penh
+Branch
+Industrial and Commercial
+Bank of China Limited, Kuwait
+Branch
+Address: Building 2A(Al-Tijaria
+Tower), Floor 7&8,
+Al-Soor Street, Al-Morqab,
+Block 3, Kuwait City,
+Kuwait
+Email: info@kw.icbc.com.cn
+Tel: +965-22281777
+Fax: +965-22281799
+SWIFT: ICBKKWKW
+Industrial and Commercial Bank
+of China (Thai) Public Company
+Limited
+Industrial and Commercial
+Bank of China Limited, Sydney
+Branch
+100 Barangaroo Avenue,
+Sydney NSW 2000
+Australia
+Email: info@icbc.com.au
+Tel: +612-94755588
+Fax: +612-82885878
+SWIFT: ICBKAU2S
+Industrial and Commercial Bank
+of China (New Zealand) Limited
+Address: Level 11, 188 Quay Street,
+Auckland 1010,
+Tel: +855-23955880
+Email: icbckh@kh.icbc.com.cn
+Square, No. 19-20,
+Address: 17th Floor, Exchange
+Address: Level 42, Tower 1,
+International Towers,
+Building 1, Dubai
+Fax: +352-26866666
+Address: Plac Trzech Krzyży 18,
+00-499, Warszawa, Poland
+Email: info@pl.icbc.com.cn
+Tel: +48-222788066
+Fax: +48-222788090
+SWIFT: ICBKPLPW
+Email: info@cz.icbc.com.cn
+Tel: +420-237762888
+Fax: +420-237762899
+SWIFT: ICBKCZPP
+Industrial and Commercial Bank
+of China Limited, Beijing,
+Zurich Branch
+Address: Nüschelerstrasse 1,
+CH-8001, Zurich,
+Switzerland
+Email: service@ch.icbc.com.cn
+Tel: +41-58-9095588
+Fax: +41-58-9095577
+SWIFT: ICBKCHZZ
+ICBC Austria Bank GmbH
+Address: Kolingasse 4,
+1090 Vienna, Austria
+Email: generaldept@at.icbc.com.cn
+Tel: +43-1-9395588
+Fax: +43-1-9395588-6800
+SWIFT: ICBKATWW
+Americas
+Industrial and Commercial Bank
+of China Limited, New York
+Branch
+Address: 725 Fifth Avenue,
+20th Floor, New York,
+NY 10022, USA
+Email: info-nyb@us.icbc.com.cn
+Tel: +1-2128387799
+Fax: +1-2125752517
+SWIFT: ICBKUS33
+Industrial and Commercial Bank
+of China (USA) NA
+14000 Prague 4-Nusle,
+Czech Republic
+Address: 1185 Avenue of the Americas,
+16th Floor, New York,
+Na Strži 1702/65,
+Industrial and Commercial
+Bank of China Limited, Prague
+Branch, odštěpný závod
+ICBC (London) PLC
+Address: 81 King William Street,
+London EC4N 7BG, UK
+Email: admin@icbclondon.com
+Tel: +44-2073978888
+Fax: +44-2073978899
+SWIFT: ICBKGB2L
+Industrial and Commercial
+Bank of China Limited, London
+Branch
+Address: 81 King William Street,
+London EC4N 7BG, UK
+Email: admin@icbclondon.com
+Tel: +44-2073978888
+Fax: +44-2073978890
+SWIFT: ICBKGB3L
+ICBC Standard Bank PLC
+Address: 20 Gresham Street,
+London, United Kingdom,
+EC2V 7JE
+Email: londonmarketing@
+icbcstandard.com
+Tel: +44-2031455000
+Fax: +44-2031895000
+SWIFT: SBLLGB2L
+Bank ICBC (joint stock
+company)
+Address: Building 29,
+Serebryanicheskaya
+embankment, Moscow,
+Russia Federation 109028
+Email: info@ms.icbc.com.cn
+Tel: +7-4952873099
+Fax: +7-4952873098
+SWIFT: ICBKRUMM
+ICBC Turkey Bank Anonim
+Şirketi
+Address: Maslak Mah. Dereboyu,
+2 Caddesi
+No:13 34398 Sariyer,
+İSTANBUL
+Email: gongwen@tr.icbc.com.cn
+Tel: +90-2123355011
+SWIFT: ICBKTRIS
+Annual Report 2021
+311
+List of Domestic and Overseas Branches and Offices
+Address: 12F City Empiria,
+Email: GAD@gr.icbc.com.cn
+Tel: +30-2166868888
+Fax: +30-2166868889
+NY 10036
+Tel: +1-2122388208
+Address: MMG Tower | 20th Floor |
+Ave. Paseo del Mar |
+Costa del Este
+Panama City,
+Republic of Panama
+Email: panama.branch@pa.icbc.com.cn
+Tel: +507-3205901
+SWIFT: ICBKPAPA
+Africa
+Industrial and Commercial
+Bank of China Limited, African
+Representative Office
+Address 1: 47 Price Drive,
+Constantia, Cape Town,
+South Africa, 7806
+Address 2: T11, 2nd Floor East,
+30 Baker Street,
+Rosebank,
+Johannesburg, Gauteng,
+South Africa, 2196
+Email: icbcafrica@afr.icbc.com.cn
+Tel: +27-608845323
+312
+ICBC
+呂
+ICBC
+郵編:100140
+Post Code: 100140
+中國北京市西城區復興門內大街55號
+55 Fuxingmennei Avenue, Xicheng District, Beijing, China
+www.icbc.com.cn, www.icbc-ltd.com
+Bank of China Limited, Panama
+Branch
+Email: info@us.icbc.com.cn
+Industrial and Commercial
+Inversora Diagonal S.A.U.
+Address: Florida 99, (C1105CPG)
+CABA, Argentina
+Fax: +1-2122193211
+SWIFT: ICBKUS3N
+Industrial and Commercial Bank
+of China Financial Services LLC
+Address: 1633 Broadway,
+28th Floor, New York,
+NY, 10019, USA
+Email: info@icbkfs.com
+Tel: +1-2129937300
+Fax: +1-2129937349
+SWIFT: ICBKUS3F
+Industrial and Commercial Bank
+of China (Canada)
+Address: Unit 3710, Bay Adelaide
+Centre, 333 Bay Street,
+Toronto, Ontario,
+M5H 2R2, Canada
+Email: info@icbk.ca
+Tel: +1-4163665588
+Fax: +1-4166072000
+SWIFT: ICBKCAT2
+Industrial and Commercial Bank
+of China Mexico S.A.
+Address: Paseo de la Reforma 250,
+Piso 18, Col. Juarez,
+C.P.06600,
+Del. Cuauhtemoc,
+Ciudad de Mexico
+Email: info@icbc.com.mx
+Tel: +52-5541253388
+SWIFT: ICBKMXMM
+Industrial and Commercial Bank
+of China (Brasil) S.A.
+Address: Av. Brigadeiro Faria Lima,
+3477-Block B-6 andar-SAO
+PAULO/SP-Brasil
+Email: bxgw@br.icbc.com.cn
+Tel: +55-1123956600
+SWIFT: ICBKBRSP
+ICBC PERU BANK
+Address: Calle Las Orquideas 585,
+Oficina 501, San Isidro,
+Lima, Peru
+Email: consultas@pe.icbc.com.cn
+Tel: +51-16316800
+Fax: +51-16316802
+SWIFT: ICBKPEPL
+Industrial and Commercial Bank
+of China (Argentina) S.A.U.
+Address: Blvd. Cecilia Grierson 355,
+(C1107 CPG)
+Buenos Aires, Argentina
+Email: gongwen@ar.icbc.com.cn
+Tel: +54-1148203784
+Fax: +54-1148201901
+SWIFT: ICBKARBA
+ICBC Investments Argentina
+S.A.U. Sociedad Gerente de
+Fondos Comunes de Inversión
+Address: Blvd. Cecilia Grierson 355,
+Piso 14, (C1107CPG)
+CABA, Argentina
+Email: alpha.sales@icbc.com.ar
+Tel: +54-1143949432
+Tel: +54-1148202200
+Industrial and Commercial Bank
+of China (Europe) S.A. Greece
+Representative Office
+Address: Amerikis 13, Athens 106
+72 Greece
+Fax: +855-23965268
+Email: icbc@icbc-ffm.de
+of China (Europe) S.A.
+Industrial and Commercial Bank
+SWIFT: ICBKLULL
+Fax: +352-26866666
+Email: office@eu.icbc.com.cn
+B.P.278 L-2012
+Luxembourg
+Address: 32, Boulevard Royal,
+L-2449 Luxembourg,
+Industrial and Commercial Bank
+of China Limited, Luxembourg
+Branch
+SWIFT: ICBKDEFF
+Fax: +49-6950604708
+Tel: +49-6950604700
+Address: Bockenheimer Anlage 15,
+60322 Frankfurt am Main,
+Germany
+Address: 32, Boulevard Royal,
+Industrial and Commercial Bank
+of China Limited, Frankfurt
+Branch
+SWIFT: ICBKNZ22
+Fax: +64-93747287
+Tel: +64-93747288
+Email: info@nz.icbc.com.cn
+Address: Level 11, 188 Quay Street,
+Auckland 1010,
+New Zealand
+Industrial and Commercial Bank
+of China Limited, Auckland
+Branch
+List of Domestic and Overseas Branches and Offices
+ICBC
+310
+SWIFT: ICBKNZ2A
+Tel: +64-93747288
+Fax: +64-93747287
+Industrial and Commercial Bank
+of China (Europe) S.A. Poland
+Branch
+Europe
+L-2449 Luxembourg,
+Tel: +352-2686661
+Luxembourg
+SWIFT: ICBKESMM
+Fax: +34-912168866
+Address: Paseo de Recoletos, 12,
+28001, Madrid, España
+Email: gad.dpt@es.icbc.com.cn
+Tel: +34-912168837
+Industrial and Commercial Bank
+of China (Europe) S.A. Sucursal
+en España
+Email: hradmin@it.icbc.com.cn
+Tel: +39-0200668899
+Fax: +39-0200668888
+SWIFT: ICBKITMM
+Address: Via Tommaso Grossi 2,
+20121, Milano, Italy
+Industrial and Commercial Bank
+of China (Europe) S.A. Milan
+Branch
+1050 Brussels, Belgium
+Email: info@be.icbc.com.cn
+Tel: +32-2-5398888
+Fax: +32-2-5398870
+SWIFT: ICBKBEBB
+B.P.278 L-2012
+Industrial and Commercial Bank
+of China (Europe) S.A. Brussels
+Branch
+Fax: +31-205706603
+SWIFT: ICBKNL2A
+Tel: +31-205706666
+Email: office@nl.icbc.com.cn
+the Netherlands
+Address: 81, Avenue Louise,
+Email: office@eu.icbc.com.cn
+Industrial and Commercial
+Bank of China (Europe) S.A.
+Amsterdam Branch
+SWIFT: ICBKFRPP
+Fax: +33-140065899
+Tel: +33-140065858
+Email: administration@fr.icbc.com.cn
+Address: 73 Boulevard Haussmann,
+75008, Paris, France
+Industrial and Commercial Bank
+of China (Europe) S.A. Paris
+Branch
+SWIFT: ICBKLULU
+SWIFT: ICBKKHPP
+Tel: +352-2686661
+Address: Johannes Vermeerstraat
+7-9, 1071 DK,
+Amsterdam,
+17,663
+20 September 2029
+Policy bank bonds 2019
+3.45
+17 April 2030
+19,461
+18,440
+Policy bank bonds 2020
+23 March 2030
+3.23
+Policy bank bonds 2019
+2.96
+17,071
+3.70
+3.48
+Policy bank bonds 2015
+16,250
+4.29
+8 January 2029
+7 April 2025
+☐ ☐
+Policy bank bonds 2020
+15,135
+3.79
+26 October 2030
+Policy bank bonds 2020
+Policy bank bonds 2020
+20 October 2030
+13 April 2025
+At 31 December 2021
+20,700
+As at the end of 2021, total liabilities reached RMB31,896,125 million, an increase of RMB1,460,582 million or 4.8%
+compared with the end of last year.
+Liabilities
+Note: (1) Excludes stage 1 allowance for impairment losses set aside in accordance with the expected credit loss model.
+5 February 2025
+3.81
+13,435
+Policy bank bonds 2015
+16 November 2030
+3.74
+13,500
+Policy bank bonds 2020
+30
+4.21
+ICBC
+Discussion and Analysis
+In RMB millions, except for percentages
+Allowance
+for
+Nominal
+Bond name
+value
+Annual
+interest rate (%)
+impairment
+Maturity date
+losses(1)
+Policy bank bonds 2015
+TOP 10 FINANCIAL BONDS HELD BY THE BANK
+14,256
+Item
+Corporate loans rose by RMB1,091,973 million or
+9.8% from the end of last year. Specifically, short-term
+corporate loans and medium to long-term corporate
+loans increased by RMB94,530 million and RMB997,443
+million respectively. The Bank continued to increase credit
+allocation to manufacturing, strategic emerging industries,
+inclusive finance, green finance, rural revitalization and
+other key fields, and the Bank's 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 circle continued to grow.
+38.3
+8,817,345
+100.0
+8,054,193
+100.0
+DISTRIBUTION OF INVESTMENT IN BONDS BY CURRENCY
+In RMB millions, except for percentages
+At 31 December 2020
+RMB-denominated bonds
+USD-denominated bonds
+Other foreign currency bonds
+Total
+In RMB millions, except for percentages
+At 31 December 2020
+At 31 December 2021
+Percentage
+Percentage
+Amount
+(%)
+Amount
+3,086,756
+(%)
+40.4
+43.4
+Amount
+(%)
+Amount
+(%)
+167
+0.0
+35
+0.0
+514,685
+5.8
+495,137
+6.1
+1,228,144
+13.9
+978,923
+12.2
+3,517,415
+39.9
+3,493,342
+3,556,934
+Percentage
+8,110,061
+7,388,349
+784,483
+In RMB millions, except for percentages
+At 31 December 2020
+Percentage
+(%)
+9.1
+Financial investments measured at fair value
+through other comprehensive income
+Financial investments measured at amortised
+cost
+1,803,604
+19.5
+1,540,988
+17.9
+6,830,933
+73.8
+6,265,668
+73.0
+Total
+9,257,760
+100.0
+8,591,139
+100.0
+6.7
+92.0
+Amount
+At 31 December 2021
+91.8
+450,447
+5.1
+436,381
+5.4
+256,837
+2.9
+229,463
+2.8
+8,817,345
+100.0
+8,054,193
+100.0
+In terms of currency structure, RMB-denominated bonds rose by RMB721,712 million or 9.8% over the end of last year;
+USD-denominated bonds increased by an equivalent of RMB14,066 million or 3.2%; other foreign currency bonds increased
+by an equivalent of RMB27,374 million or 11.9%. During the reporting period, the Bank improved the investment portfolio
+structure of foreign currency bonds and moderately increased the investment in bonds denominated in other currencies.
+DISTRIBUTION OF INVESTMENT BY MEASURING METHOD
+Item
+Amount
+Financial investments measured at fair value
+through profit or loss
+623,223
+Percentage
+(%)
+Discussion and Analysis
+Percentage
+In RMB millions, except for percentages
+93.8
+190,186
+2.1
+175,698
+2.0
+148,166
+1.6
+262,800
+3.1
+102,063
+1.1
+98,448
+1.1
+9,257,760
+100.0
+8,591,139
+100.0
+DISTRIBUTION OF INVESTMENT IN BONDS BY ISSUERS
+Item
+8,054,193
+Government bonds
+95.2
+(%)
+or
+Personal loans increased by RMB829,502 million
+11.7% from the end of last year. Specifically, residential
+mortgages grew by RMB634,370 million or 11.1%;
+personal business loans increased by RMB180,803 million
+or 34.7%, and the rapid growth is mainly because of the
+good reputation and increasing market shares of online
+inclusive finance product "e-Mortgage Quick Loan".
+Please see the section headed "Discussion and Analysis
+Risk Management" for detailed analysis of the Bank's loans
+and their quality.
+Investment
+In 2021, the Bank continued to reinforce its financial
+service capability for the real economy and scaled up its
+investments in local government bonds, green bonds and
+other bonds. As at the end of 2021, investment amounted
+to RMB9,257,760 million, representing an increase of
+RMB666,621 million or 7.8% from the end of the previous
+year. Among these, bonds rose by RMB763,152 million or
+9.5% to RMB8,817,345 million.
+Item
+Bonds
+Equity instruments
+Funds and other
+Accrued interest
+Total
+At 31 December 2021
+In RMB millions, except for percentages
+At 31 December 2020
+Percentage
+Percentage
+Amount
+(%)
+Amount
+8,817,345
+At 31 December 2020
+Central bank bonds
+Other bonds
+18.7
+100.0
+1,559,128
+8,054,193
+19.4
+100.0
+In terms of distribution by issuers, government bonds increased by RMB634,239 million or 11.1% over the end of last year,
+mainly due to the increase in local government bonds and national bonds; central bank bonds increased by RMB6,135
+million or 19.1%; policy bank bonds went up by RMB29,094 million or 4.0%; and other bonds increased by RMB93,684
+million or 6.0%.
+Annual Report 2021
+29
+Discussion and Analysis
+DISTRIBUTION OF INVESTMENT IN BONDS BY REMAINING MATURITY
+Remaining maturity
+Undated(1)
+Less than 3 months
+3 to 12 months
+1 to 5 years
+Over 5 years
+Total
+Note: (1) Refers to overdue bonds.
+At 31 December 2021
+1,652,812
+8,817,345
+Policy bank bonds
+9.0
+8.6
+Total
+In RMB millions, except for percentages
+At 31 December 2020
+At 31 December 2021
+Percentage
+Percentage
+Amount
+(%)
+Amount
+(%)
+6,371,607
+72.3
+5,737,368
+71.2
+38,207
+0.4
+32,072
+0.4
+754,719
+725,625
+Item
+DISTRIBUTION OF DUE TO CUSTOMERS BY GEOGRAPHIC AREA
+Percentage
+(%)
+Percentage
+(%)
+Amount
+(%)
+Amount
+Item
+Percentage
+39 Personal Banking
+2020
+2021
+In RMB millions, except for percentages
+SUMMARY OPERATING SEGMENT INFORMATION
+34 Corporate Banking
+BUSINESS OVERVIEW
+Discussion and Analysis
+33
+Annual Report 2021
+In 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 2021 and equity attributable
+to equity holders of the parent company as at the end of
+the reporting period have no differences.
+Operating income
+860,880
+100.0
+800,075
+42 Financial Market Business
+10.5
+83,931
+12.9
+111,278
+Treasury operations
+39.7
+318,058
+Reconciliation of Differences between
+the Financial Statements Prepared
+under PRC GAAP and Those under IFRSS
+40.2
+Personal banking
+49.2
+393,661
+46.3
+398,373
+Corporate banking
+41 Asset Management Services
+100.0
+346,172
+Net cash outflows from financing activities amounted
+to RMB11,553 million. Specifically, cash inflows were
+RMB975,234
+an
+million, representing
+increase of
+RMB27,759 million over last year, mainly due to the
+increased cash proceeds from the issuance of other equity
+instruments; and cash outflows were RMB986,787 million,
+representing a decrease of RMB7,637 million mainly due
+to the decreased cash payment for repayment of debt
+securities.
+Net cash outflows from investing activities amounted
+to RMB674,556 million. Specifically, cash inflows were
+RMB2,718,919 million, representing an increase of
+RMB613,048 million over last year, mainly due to the
+increased cash proceeds from the sale and redemption
+of financial investments; and cash outflows were
+RMB3,393,475 million, representing an increase of
+RMB152,507 million, mainly due to the increase in cash
+payment for financial investments.
+Net cash inflows from operating activities amounted
+to RMB360,882 million, representing a decrease of
+RMB1,196,734 million as compared to last year, principally
+due to the decrease of cash inflows resulted from the
+decrease of net increase of due to customers and due to
+banks and other financial institutions. Specifically, cash
+outflows of operating assets increased by RMB8,130
+million; and cash inflows of operating liabilities decreased
+by RMB1,185,927 million.
+16.2
+4,072,459
+16.3
+4,320,355
+Western China
+14.4
+3,608,490
+14.8
+Northeastern China
+3,900,441
+26.8
+6,733,969
+26.0
+6,885,411
+Bohai Rim
+13.3
+3,335,179
+13.2
+Central China
+Other
+1,410,376
+1,308,155
+Amount
+The 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". For details on
+contingencies and commitments, please refer to "Note 46.
+to the Consolidated Financial Statements: Commitments
+and Contingent Liabilities".
+Off-balance Sheet Items
+As at the end of 2021, shareholders' equity totaled
+RMB3,275,258 million, RMB365,743 million or 12.6%
+higher than that at the end of the previous year. Equity
+attributable to equity holders of the parent company
+recorded an increase of RMB364,253 million or 12.6% to
+RMB3,257,755 million. Please refer to the "Consolidated
+Financial Statements: Consolidated Statement of Changes
+in Equity" for details.
+Shareholders' Equity
+Discussion and Analysis
+ICBC
+32
+5.3
+100.0
+975,900
+25,134,726
+100.0
+26,441,774
+Total
+3.7
+955,294
+Overseas and other
+5.2
+3.9
+5,057
+0.6
+4,425
+Production and supply of
+74,551.60
+75,331.10
+12.5%
+● Water, environment and public
+utility management
+15.1%
+Manufacturing
+15.2%
+9.7%
+Leasing and commercial services
+25.8%
+Transportation, storage and
+Unit: RMB100 millions
+Corporate Deposits
+Discussion and Analysis
+by industry of loan customers
+Corporate loans of domestic branches
+4
+postal services
+4
+67,325.58
+⚫ Real estate
+2020
+Time deposits
+0.7%
+Lodging and catering
+Others
+2019
+1.9%
+● Mining
+and sanitation
+electricity, heat, gas and water
+2.6%
+2.9%
+●Construction
+52,957.04
+54,897.00
+57,983.53
+4.2%
+Wholesale and retail
+6.5%
+Science, education, culture
+3,495,325
+ICBC
+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
+maintenance capability. While focusing on high-quality customer
+marketing, the Bank vigorously expanded medium-sized enterprise
+customer groups to establish a coordinated, active and loyal
+customer base comprising large, medium and small enterprises. At
+the end of 2021, the number of corporate customers increased by
+12.1% over the end of the previous year to 9,691 thousand.
+44.5
+174,469
+46.0
+195,658
+Personal banking
+37.5
+146,903
+33.1
+48 Internet Finance
+140,569
+44 FinTech
+taxation
+100.0
+392,126
+100.0
+424,899
+Profit before
+0.6
+Corporate banking
+34
+Treasury operations
+20.1
++
+Adhering to using corporate banking services as an important means
+to boost the high-quality development of the real economy, the Bank
+innovated the corporate credit layout of new manufacturing, new services,
+new basic industries and high-tech customer groups, improved the supply
+of financial resources for the key areas and weak links in the real economy,
+and actively shouldered the responsibilities as a large bank. At the end
+of 2021, corporate loans reached RMB12,194,706 million, representing
+an increase of RMB1,091,973 million or 9.8% over the end of last year.
+Corporate deposits stood at RMB13,331,463 million, representing an
+increase of RMB386,603 million or 3.0%.
+Corporate Banking
+61 Major Controlled Subsidiaries
+and Equity Participating
+Company
+58 Diversified Operation and
+Subsidiary Management
+54 Internationalized Operation
+Management, Employees
+and Institutions
+52 Human Resources
+85,326
+51 Service Improvement
+51 Outlet Development
+0.6
+2,555
+0.8
+3,346
+Other
+17.4
+68,199
+Note: Please see "Note 48. to the Consolidated Financial Statements: Segment
+Information" for details.
+Pearl River Delta
+Analysis on Statement of Cash Flows
+5,057,963
+Facilitating to build the "Preferred Bank for Foreign Exchange Business". It took a global response approach
+to extend global cash management services to more than 80 countries and regions. It deepened bank-enterprise
+cooperation, and effectively served 64 "going global" state-owned enterprises directly under the central government,
+accounting for 77% of total, and 149 customers out of the Fortune Global 500. In 2021, the Bank was awarded the
+"Best Asian International Cash Management Bank in Asia Pacific" by The Asian Banker.
+Facilitating to build the "No.1 Personal Bank”. The Bank promoted the interactions among government, business
+and consumption ("GBC") through ICBC e BillPay. In 2021, it handled payment services of RMB713 billion for
+customers, served 144 million individual customers in total, and saw an increase in the flows of both corporate and
+individual customer. In 2021, ICBC e Bill Pay was awarded the "Best Aggregate Payment Product in China" by The
+Asian Banker.
+Strengthening Settlement Finance Support and
+Coordination to Serve the Bank's Strategy
+Discussion and Analysis
+37
+Annual Report 2021
+At the end of 2021, the Bank maintained
+11,216 thousand corporate settlement accounts,
+representing an increase of 1,110 thousand over the
+end of the previous year. It had 1,609 thousand cash
+management customers, including 9,615 global cash
+management customers. The volume of corporate
+settlements reached RMB2,598.13 trillion.
+The Bank deeply served the broadest customer
+base, and made a breakthrough in "net making
+and patching" program. It gave full play to the
+advantages of settlement finance to serve large
+customers, and provided comprehensive financial
+services for group enterprises and large and
+medium enterprises relying on the advantages of
+cash management business. It served medium-sized
+customers with high-quality settlement products,
+upgraded the "ICBC Pooling" platform, embedded
+the "ICBC E Enterprise Payment" into the trading
+platform, and provided efficient online payment
+and settlement services for traders. It offered
+digital batch service for small and micro customers,
+embedded "non-financial + financial" services in
+enterprise operation and management through
+small and micro financial service platform, realized
+targeted marketing, big data operation and digital
+risk control, and effectively improved the coverage
+and capability of services for small and micro
+enterprises.
+The Bank provided high-quality account services in a
+customer-centric manner. It actively implemented the
+requirements for "delegating power, streamlining
+administration and optimizing government
+services" and strengthened the digital convenient
+service coverage of settlement accounts in various
+typical scenarios. It enhanced cooperation with
+government departments, and provided enterprises
+with source account opening services through the
+"Enterprise Link" business. It broadened customer
+base by platform, and made the account opening
+appointment interface available to help improve the
+business environment.
++
+Settlement and Cash Management
+of multi-level capital market, strove to be the capital
+hub and leading bank in the capital market, and
+signed a tripartite strategic cooperation agreement
+with the National Equities Exchange and Quotations
+Co., Ltd. and Beijing Stock Exchange. It helped
+with interbank risk prevention and control through
+FinTech, and provided nearly 30 small and medium
+banks, securities companies, insurance and other
+interbank customers with five categories of scientific
+and technological products, including "ICBC
+BRAINS" intelligent anti-money laundering system
+and credit management system.
+registration and settlement, guarantee funds,
+payment systems and other financial infrastructure
+customers, and facilitated the development of
+financial institutions through platform services. It was
+among those first successfully participating in the
+commodity clearing business in Shanghai Clearing
+House, and ranked first in the market in terms of
+contractual customers and clearing amount. It was
+also among those first obtaining the online financing
+qualification of standard warehouse receipts on
+Dalian Commodity Exchange and carried out the first
+interbank transaction. The Bank served the building
+The Bank built a new model of cooperation in
+financial institutions to serve the real economy.
+It improved the mechanism for customer service,
+established a "systematic, digital, ecological and
+professional" service system, and served thousands
+of customers of different types identified by level,
+class, group or category. It launched the "Gong
+Tong Ying", an innovative comprehensive service
+platform for financial customers, which provides
+customers with all-round and one-stop services. The
+Bank deepened financial infrastructure cooperation,
+optimized innovation support for exchanges,
+The Bank gave full play to the advantages of FinTech
+and tapped the growth potential in education,
+healthcare, public resources, social organizations and
+other fields. In the field of education, it took the lead
+in the industry to launch the "Education and Training
+Cloud" supervision platform, carried out IT-based
+fund supervision cooperation with 938 education
+authorities at all levels in China, and assisted to
+strengthen the management of education and
+training institutions and the supervision of training
+funds. In the medical field, the Bank launched
+the "ICBC Cloud Healthcare", an open platform
+of intelligent healthcare, and formed a matrix of
+intelligent healthcare products and services in 45
+sub-categories out of five categories, covering all
+services and products in line with the major policies
+on the national "healthcare, medical insurance and
+medicine" interconnection reform. It was awarded
+the "excellent case of digital healthcare innovation
+services" at the 16th China Health Information
+Technology Application and Exchange Conference
+of the Information Center of the National Health
+Commission. In the field of public resource trading,
+the Bank independently developed the "e-Enterprise
+Guarantee", a blockchain e-guarantee platform that
+provides a new online service mode of e-guarantee
+with automatic processing, real-time receiving and
+whole-process management in the field, and helps
+improve the business environment. In the field of
+social organizations, the Bank launched a "Civil
+Affairs Capital Verification Link" and cooperated
+with local civil affairs departments to provide
+online capital verification services for new social
+organizations.
++
+20.0
+Facilitating to implement the Strategy for Sharpening Competitive Edge in Key Regions. Focusing on the
+building of two zones in Beijing, it launched the pilot project of domestic and foreign currency integrated cash pool.
+Focusing on the building of Guangdong-Hong Kong-Macao Greater Bay Area, the Bank took the lead in the industry
+to launch the universal free trade (FT) cash pool business in Guangzhou and Hengqin. Focusing on the Yangtze River
+Delta Integration, the Bank provided strategic customers with innovative services for cross-border cash pool under the
+Shanghai Free Trade Zone policy.
+Facilitating to implement the Urban-Rural Collaborative Development Strategy. It was the first to launch
+the "rural collective intelligent account opening service", provided door-to-door services with portable intelligent
+terminals, and comprehensively improved the service experience of agro-related non-enterprise accounts. It carried
+out chain marketing with a focus on leading enterprises in agricultural industrialization, and assisted high-quality
+enterprises with reserve grain purchase projects.
+Investment Banking
++ The Bank served the high-quality development
+of the real economy, focusing on key areas such
+as the reform of state-owned enterprises, capital
+market, industrial integration, and the Belt and Road
+Initiative. As the first bank to issue more than RMB1
+trillion of M&A financing accumulatively, the Bank
+increased credit supply in manufacturing industry
+and maintained a leading position in domestic and
+overseas M&A markets. By number of M&A deals
+led by the Bank, the Bank ranked first in China
+in Refinitiv's ranking of Any Chinese Involvement
+Completed and first in the ranking of China
+Outbound Announced M&A.
+1,376,004
+31,896,125
+Total liabilities
+Other
+2.6
+798,127
+2.5
+791,375
+ICBC
+Discussion and Analysis
+38
+environmental protection and other industries.
+The Bank innovated equity financing products to
+help enterprises optimize their capital structure
+and provide fund support for major infrastructure
+projects. The Bank expanded actively managed
+asset securitization business to meet the needs of
+enterprises for comprehensive financial services.
+The Bank accelerated the financing rearrangement
+and enterprise debt restructuring, and mitigated the
+liquidity pressure and potential risks of customers.
+The Bank enriched the mobile scenarios of customer
+services, upgraded the functions of "ICBC e
+Confirmation Service", "ICBC e Intelligence", "ICBC
+e Security", "ICBC e RM" and "ICBC ISP" and
+enhanced the new driving force of digital services.
++
+advanced manufacturing, green
+The Bank actively participated in publicly offered
+REITS to support infrastructure construction, and
+strengthened services for scientific and technological
+innovation,
+investment banking.
+between
+commercial banking and
+The Bank assisted with the supply-side structural
+reform through the new model of investment-
+loan interconnection and interaction
+In 2021, the Bank acted as the lead underwriter for
+2,673 Chinese bond projects with a total value of
+RMB1,807,765 million, ranking first in the market for
+15 consecutive years. It acted as the lead underwriter
+for a total of RMB81,357 million worth of ESG bonds
+such as green bonds (including carbon neutrality
+bonds), sustainability-linked bonds and rural
+revitalization bonds, ranking first in the market.
+ICBC
+36
+The Bank consolidated its dominant position in
+traditional fields such as finance and social security,
+and served the national reform. In the financial field,
+the Bank strengthened basic financial services for
+financial funds and provided high-quality financial
+services to financial departments and budget units
+at all levels; in the field of social security, "ICBC
+e Social Security" services were made available in
+all provinces and autonomous regions in China; in
+the field of agriculture, rural areas and farmers, it
+took the lead in the industry to launch the "Digital
+Villages" comprehensive service platform to assist
+agricultural and rural authorities at all levels in
+strengthening the standardized management of rural
+collective economy and improving the smart public
+services and social governance in rural areas, which
+have covered 31 provinces, 260 prefectures and
+cities across the country. The Bank has established
+information technology-based cooperation with
+770 district and county-level agricultural and rural
+departments. Its project was rated as "2021 Excellent
+Project of New Technology, New Product and New
+Model of Digital Agriculture in Rural Areas" by the
+Ministry of Agriculture and Rural Affairs.
+Debt securities issued
+1.0
+293,434
+1.1
+365,943
+Repurchase agreements
+9.1
+2,784,259
+2021
+9.2
+Due to banks and other financial institutions
+82.6
+(%)
+Amount
+25,134,726
+82.9
+26,441,774
+Due to customers
+Percentage
+2,921,029
+4.3
+Demand deposits
+The Bank served the high-quality development of the
+manufacturing. It has carried out the campaign of
+"Year of Financial Services for Manufacturing" for
+three consecutive years, and has signed a strategic
+cooperation agreement with the Ministry of Industry
+and Information Technology to strengthen product
+innovation and resource guarantee. At the end of
+2021, the balance of manufacturing loans exceeded
+RMB2 trillion, ranking first among peers in terms of
+both the balance and increment.
+Institutional Banking
+At the end of 2021, inclusive small and micro
+enterprise loans amounted to RMB1,099,012 million,
+representing an increase of RMB378,448 million or
+52.5% over the beginning of the year; inclusive small
+and micro enterprise loan customers numbered 795
+thousand, representing an increase of 204 thousand;
+the average interest rate of newly granted inclusive
+loans was 4.10%. The balance of agriculture-related
+loans was RMB2,661,317 million, representing an
+increase of RMB404,101 million or 17.9% over the
+beginning of the year; the Bank had 1,182 thousand
+agriculture-related loan customers, representing
+an increase of 240 thousand; the average interest
+rate of newly granted agriculture-related loans was
+4.13%, down 19 basis points from the previous year.
+The Bank had 342 small and micro financial business
+centers, up 18 over the end of the previous year.
+upgraded and built version 2.0 of the "ICBC Business
+Matchmaker", a cross-border matchmaking platform
+that provides intelligent, full-process and closed-
+loop cross-border matchmaking services consisting
+of five features, i.e. events, marketplace, feature
+zone, financial service and information message, and
+allows 7x24-hour, one-point access to the global
+industrial chain for small and medium enterprises.
+Innovation of inclusive finance products was
+advanced constantly. The Bank upgraded the "Quick
+Lending for Operation", accelerated the integration
+and application of multidimensional data, and
+improved the non-contact service mode. The Bank
+launched innovative scenarios such as "Technical
+Innovation Loan", "Prosperous Agriculture Loan"
+and "Solar Power Loan" to better meet the needs
+of market segments. The Bank continued to
+promote the online transformation of the whole
+process of "e-Mortgage Quick Loan" product, to
+improve business processing efficiency and customer
+experience; "e-Enterprise Quick Loan", an innovative
+financing product, was launched to further enrich
+online collateral products. The Bank optimized the
+financial service platform for supply chain, created
+a unified service portal for digital supply chain
+financing, and further enhanced its service capability.
+The Bank continuously enhanced the capability
+of inclusive finance services. It deeply identified
+customer needs, strengthened strategic coordination,
+and leveraged the Group's comprehensive business
+advantages to render the inclusive finance services
+that combined financing, consulting and commercial
+services; it continued to carry out a series of
+activities such as "ICBC Inclusive Finance Travel",
+"One Thousand Experts Serving Small and Micro
+Enterprises", "Ten Thousand Small and Micro
+Enterprises Growth Plan" and "Specialization,
+Refinement, Differentiation and Innovation •
+Chunfeng Action", and gradually formed a set
+of inclusive finance service models with strategic
+value; it gave full play to the advantages of the
+Group's domestic and foreign service outlets,
+The Bank provided targeted support for the key
+links of inclusive finance. Catering for the needs
+of the real economy, it increased first loans, loan
+renewal, credit loans and manufacturing loans for
+small and micro enterprises. It optimized the regional
+layout, and promoted the rapid business growth
+in the regions with active operation of small and
+micro enterprises, to attain the key regions-driven
+development. It stepped up support for regions with
+weak business foundation to achieve sustainable
+regional development.
+The Bank continuously provided stable and efficient
+inclusive credits. It adhered to digital inclusive
+development, accelerated the improvement of
+the centralized operation system and online and
+offline integrated service channels in line with
+the characteristics of "digital inclusive finance",
+and supported the sustained and rapid growth of
+inclusive loans and customers.
+4
++
+2.9%
+Discussion and Analysis
+Annual Report 2021
+In light of China's 14th Five-Year Plan and vision for the
+year 2035, the Bank implemented the new development
+concept, served the new development paradigm,
+and promoted high-quality development in the new
+development stage. With the high-quality development
+of inclusive finance as an important measure to better
+serve the real economy and enhance its competitiveness,
+the Bank continued to push forward product innovation,
+strengthen service channels, improve comprehensive
+services and promote the high-quality and sustainable
+development of inclusive financial services.
+Inclusive Finance
+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 development 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 2021,
+RMB corporate loans in key regions reached
+RMB7.54 trillion, accounting for 71% of the balance
+of RMB corporate loans of domestic branches,
+representing an increase of RMB884.0 billion over
+the end of the previous year.
+green industries such as clean energy and green
+transportation. At the end of 2021, the balance of
+green loans amounted to RMB2.48 trillion. The Bank,
+as the lead underwriter, underwrote RMB63,637
+million worth of green bonds (including carbon
+neutrality bonds) in the year.
+The Bank drove green development with green
+finance. It actively supported green and low-carbon
+transformation, especially the financial needs of
+The Bank provided comprehensive financial
+services for private enterprises. It implemented the
+"Eight Comprehensive Measures" to serve private
+enterprises, and carried out the "Project of Improving
+Services for Private Enterprise Partners". At the end
+of 2021, the balance of loans to private enterprises
+reached RMB3.39 trillion.
+The Bank supported the high-level self-reliance
+and self-improvement in science and technology.
+It upgraded the financial service system for
+technological innovation, signed a strategic
+cooperation agreement with the Ministry of Science
+and Technology, carried out the campaign of
+"Financial Service for National High-tech Industrial
+Development Zones and High-tech Enterprises"
+and initially formed a service pattern driven by
+"technological innovation and strategic emerging
+industries". At the end of 2021, the balance of loans
+to enterprises in key high-tech fields and strategic
+emerging industries supported by the state both
+exceeded RMB1 trillion.
+35
+1,424,997
++
+100.0
+26,441,774
+1.1
+267,941
+1.4
+361,994
+1.0
+261,389
+0.9
+100.0
+250,349
+11,660,536
+47.3
+12,497,968
+20.7
+5,196,607
+20.4
+5,390,582
+25.7
+46.4
+6,463,929
+25,134,726
+Note: (1) Includes outward remittance and remittance payables.
+4.7
+5,436,282
+Yangtze River Delta
+0.2
+42,611
+0.1
+38,290
+Head Office
+100.0
+(%)
+Percentage
+Percentage
+(%)
+Amount
+Item
+At 31 December 2021
+At 31 December 2020
+In RMB millions, except for percentages
+As at the end of 2021, the Group held RMB1,607,183 million of financial bonds', including RMB754,719 million of policy
+bank bonds and RMB852,464 million of bonds issued by banks and non-bank financial institutions, accounting for 47.0%
+and 53.0% of financial bonds, respectively.
+Amount
+26.9
+20.6
+Total
+Amount
+In RMB millions, except for percentages
+At 31 December 2020
+(%)
+Amount
+Percentage
+At 31 December 2021
+Corporate deposits
+Item
+Percentage
+DISTRIBUTION OF DUE TO CUSTOMERS BY BUSINESS LINE
+Due to customers is the Bank's main source of funds. As at
+the end of 2021, due to customers was RMB26,441,774
+million, RMB1,307,048 million or 5.2% higher than that
+at the end of the previous year. In terms of customer
+structure, corporate deposits increased by RMB386,603
+million or 3.0%; and personal deposits increased by
+Due to Customers
+Discussion and Analysis
+31
+Annual Report 2021
+100.0
+30,435,543
+7,107,386
+RMB837,432 million or 7.2%. In terms of maturity
+structure, time deposits increased by RMB952,110 million
+or 8.0%, while demand deposits increased by RMB271,925
+million or 2.1%. In terms of currency structure, RMB
+deposits stood at RMB24,914,524 million, an increase of
+RMB1,342,532 million or 5.7%. Foreign currency deposits
+were equivalent to RMB1,527,250 million, a decrease of
+RMB35,484 million or 2.3%.
+(%)
+1 Financial bonds refer to the 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.
+5,798,353
+Time deposits
+Accrued interest
+Other deposits (1)
+Subtotal
+Demand deposits
+Time deposits
+51.5
+12,944,860
+50.4
+Personal deposits
+Subtotal
+21.9
+13,331,463
+21.8
+Demand deposits
+5,489,700
+28.5
+7,455,160
+29.7
+7,533,110
+Centering on the FinTech development plan (2021-2023),
+the Bank practiced technology self-reliance, strengthened
+the "dual wheel drive" of technological innovation
+and system reform, built new advantages in FinTech
+development, and empowered the development of
+"D-ICBC" with technology, which assisted in the Bank's
+high-quality development and better fostered a new
+development pattern.
+Precious Metal Business
++
+the
+transformation and
+The Bank promoted
+development of the physical precious metal
+business, to meet customers' demands for quality
+improvement in investment and consumption. It
+launched physical precious metal products with the
+theme of China International Import Expo, and on
+the basis of the "Magnificent China" theme, it rolled
+out "Most Beautiful Hometown" and "Beautiful
+Countryside" physical precious metal product
+series to fully demonstrate the appearance of rural
+revitalization. It also promoted the green and low-
+carbon development of the precious metal leasing
+business and opened up new space for business
+development. In 2021, the Bank ranked first among
+all dealers in Shanghai Gold Exchange in terms of
+gold and silver trading volume, clearing amount and
+gold leasing scale, was reelected "First Prize Winner
+of the Excellent Financial Member" by Shanghai Gold
+Exchange, and was named "Best Provider of Precious
+Metals Services" by Global Finance.
+FinTech
+In 2021, the Bank was ranked at first place in the
+banking industry for the eighth consecutive year in
+CBIRC's IT supervision ratings. The intelligent banking
+ecosystem ECOS won PBC's special award of the "FinTech
+Development Awards". The Bank became the first
+enterprise in the Chinese financial industry to obtain the
+highest Data Management Capability Maturity (DCMM)
+rating (Level 5), and it won the "Best Financial Innovation
+Award" from The Chinese Banker for the sixth consecutive
+year.
+stack basic resources for independent innovation.
+The Bank sought technology breakthroughs in key
+fields such as cloud platforms, operating system
+and database in a centralized way, connected
+key breakpoints in the independent innovation
+and transformation of the financial industry, and
+developed a complete package of technical solutions
+that can be copied and promoted for various fields
+including office management, data analysis, risk
+control, business management, regulatory reporting,
+etc., providing a model template for independent
+innovation, transformation, upgrading, application
+and promotion for the financial industry.
+The Bank adhered to technology self-reliance, promoted
+technology breakthrough in key fields of infrastructure
+system, and strengthened research and application of
+cutting-edge technologies. A series of new enterprise-
+level technology platforms with strong service capability
+and industry-leading advantages were built up based on
+5G+ABCDI'. As at the end of 2021, the Bank had the most
+newly added and accumulated patents among Chinese
+banks.
+The Bank built the world-leading "cloud computing
++ distributed" technology architecture, leading the
+industry to transform from a traditional centralized
+one to a fully distributed one. The Bank completed
+the world's largest financial cloud platform with the
+strongest technological capacity and full coverage
+of business scenarios. With the platform, it realized
+automated and intensive management and full
+stack independent innovation cloud service supply.
+The Bank was the first among its peers to meet the
+Level 4 security capacity requirement for private
+clouds and the Level 3 security capacity requirement
+for ecosystem clouds, and it declared more than
+200 patents for invention. It also established the
+distributed technology system with the most systems
+and the most extensive application among its peers,
+with an average daily service invocation of over 12.0
+billion times.
+The Bank spared no effort to promote technology
+breakthroughs in key fields. The Bank was the first
+among its peers to realize the deployment of the
+"one cloud with multiple cores" architecture and to
+complete the compatible adaption of cloud platforms
+with general open platforms and the independent
+innovation technology system, which provided the
+Bank with the large-scale supply capacity of full
+1 Refers to AI, BLOCK-CHAIN, Cloud Computing, Big Data and IoT.
+44
+ICBC
+Discussion and Analysis
+Fortifying Digital Infrastructure
+The asset securitization business effectively
+supported the Bank in disposing of non-performing
+assets and optimizing credit structure, and further
+improved the Bank's capability to serve the real
+economy. In 2021, the Bank issued 19 asset-backed
+securities totaling RMB112,592 million, including the
+first green vehicle installment asset-backed securities
+issued by a commercial bank in China. By introducing
+cross-border funds via "Bond Connect", it further
+promoted financial cooperation between domestic
+and foreign institutions and the two-way opening up
+of the Chinese green bond market.
+Discussion and Analysis
+Asset Securitization Business
+In terms of foreign currencies, the Bank continued
+to strengthen research of global central banks'
+monetary policies and closely tracked changes in the
+fund liquidity and interest rates of foreign currency
+markets. While ensuring liquidity safety, it flexibly
+employed foreign currency market operation tools to
+support the foreign currency financing needs of the
+real economy. The Bank was among the first on the
+market to make foreign currency repurchase with
+domestic foreign currency NCD and bonds under
+custody of China Bond as collaterals. In 2021, the
+Bank won many honors, including the "Best Foreign
+Currency Lending Panel Bank", the "Best Foreign
+Currency Lending Member" and the "Best Foreign
+Currency Repo Member" conferred by China Foreign
+Exchange Trade System.
+ICBC
+42
+Investment
++
+In terms of RMB bonds, the Bank continued to
+strengthen its capability to serve the real economy.
+It actively invested in local government bonds in
+strategic regions and key fields, and the scale of
+new investment in local government bonds ranked
+No.1 in the market for the seventh consecutive year.
+The Bank actively practiced green and low-carbon
+development and the rural revitalization strategy.
+It was among the first banks to invest in carbon
+neutrality bonds and sustainability linked bonds,
+and increased investment in rural revitalization
+bonds. Meanwhile, the Bank actively invested
+in energy supply guarantee related bonds, and
+bonds of advanced manufacturing industry and
+private enterprises, to give full play to the financial
+guarantee for energy security effect.
+In terms of foreign-currency bonds, the Bank
+steadily increased investments, moderately expanded
+portfolio investments, optimized the portfolio
+structure, and intensified support to the real
+economy and green finance. It completed the first
+batch of foreign-currency bond transactions via
+"Southbound Connect".
+In 2021, the Bank was honored as the "Top
+Investment Houses in Asian G3 Bonds" by The Asset.
++
+Financing
+The Bank reasonably adjusted the financing structure
+based on liquidity management requirements, and
+operating benefit improved steadily. It actively
+advanced the development of the business system,
+improved the level of refined business management,
+and promoted the steady development of the
+financing business. For details on the Bank's CDs and
+debt securities issued, please refer to "Note to the
+Consolidated Financial Statements: 33. Certificates of
+Deposit; 35. Debt Securities Issued".
+A series of leading enterprise-level independent
+innovation technology platforms were built. The
+Bank built the first, reliable, efficient and scalable
+big data platform among peers, and established a
+big data service ecosystem integrating technology,
+data and services. It upgraded Al technology systems.
+It was the first among its peers to complete the
+enterprise-level Robot Process Automation ("RPA")
+platform, and also the first to pass the application
+maturity assessment of RPA systems and tools by
+the Ministry of Industry and Information Technology
+and the China Academy of Information and
+Communications Technology. A blockchain platform
+with proprietary intellectual property rights was built,
+which has integrated more than 150 technology
+breakthroughs. It was among the first batch to pass
+the five certifications under special evaluation for
+"Trusted Blockchain" by the Ministry of Industry and
+Information Technology and the China Academy of
+Information and Communications Technology, and
+was selected as part of the 2021 Blockchain 50 by
+Forbes.
+Treasury Trading Business on Behalf of
+Customers
+In terms of foreign exchange settlement and sales on
+behalf of customers and foreign exchange trading,
+the Bank continuously enriched foreign exchange
+settlement and sales and foreign exchange trading
+currencies, improved the trading functions of online
+channels, and provided convenient service for
+enterprises in exchange rate risk management. In
+terms of corporate commodity derivative trading,
+under the routine pandemic control mechanism, the
+Bank actively carried out online business promotion
+and marketing to attract customers, delivered good
+service to existing customers, promptly responded
+to customer queries and trading needs, and helped
+corporate customers properly respond to commodity
+price fluctuation risks during the pandemic. In terms
+of RMB interest rate derivative business, the Bank
+continued to provide interest rate risk management
+service to corporate customers like small and micro
+enterprises and manufacturing enterprises. In terms
+of the over-the-counter ("OTC") bond business,
+the Bank distributed China Development Bank's
+financial bonds with the themes of "Coordinated
+Development of the Beijing-Tianjin-Hebei Region"
+"Carbon Neutrality" and "Ecological Protection and
+High-quality Development of the Yellow River Basin",
+Agricultural Development Bank of China's "Carbon
+Neutrality" financial bonds and the OTC local
+government bonds in 36 provinces (autonomous
+regions, municipalities directly under the Central
+Government, and cities specifically designated in
+the state plan) to investors in the OTC market,
+contributing to the coordinated development of
+key regions and assisting in green finance, rural
+revitalization and regional development. The Bank
+was awarded the "Excellent Underwriter Award
+for Over-the-counter Circulating Bonds" and
+"Excellent Underwriter Award for Over-the-
+Counter Local Government Bonds" by China Central
+Depository & Clearing Co., Ltd. In terms of foreign
+institutional investors trading business in China's
+inter-bank market, the Bank took an active part in
+serving foreign institutional investors from more
+than 60 countries and regions. It won the "Opening-
+Up Contribution Award" granted by the National
+Interbank Funding Center and the "Excellent
+Settlement Agent under Global Connect Business"
+granted by China Central Depository & Clearing Co.,
+Ltd.
+an
+Annual Report 2021
+43
+Discussion and Analysis
++
+The Bank explored new "highlands" in cutting-
+edge technologies. By integrating satellite remote
+sensing technology with Al technology and using
+high-definition satellite remote sensing data and
+intelligent monitoring models, the Bank conducted
+post-lending monitoring of crop growth and
+construction of large engineering projects. The
+Bank was the first in the industry to complete the
+homemade intelligent POS monitoring system with
+the Beidou Navigation Satellite System as its only
+signal source. It made breakthroughs in the feasibility
+testing and pilot application of quantum technology
+in important financial encryption scenarios. It
+employed the privacy computation technology to
+develop innovative post-lending risk monitoring
+measures regarding small and micro enterprises.
+Centering on the needs of national strategies such as
+serving the real economy, preventing financial risks and
+deepening the financial reform, based on the intelligent
+banking ecosystem development project ECOS, the Bank
+deepened technological empowerment from the three
+dimensions of model innovation, production innovation,
+and ecosystem opening up and innovation and developed a
+series of quality services that the people are satisfied with.
+The Bank took the initiative to deal with the new
+challenges brought by the complex and volatile external
+situation and technological reforms, adhered to the
+bottom line of safe production, further promoted the
+transformation of production, operation and maintenance,
+and upgraded and built in an information security defense
+system for the whole group and the whole process. The
+Group's production safety was maintained at a high level.
+Deepening industry-university-research-application.
+The Bank gave play to the R&D capabilities of the
+FinTech Institute and laboratories and strengthened
+joint innovation and R&D. Centering on prospective
+technology fields such as secure multi-party
+computation, federal learning, quantum technology,
+blockchain, 5G application, etc., joint laboratories
+such as financial information infrastructure, financial
+application of 5G, Al, etc. were built, assisting in
+China's independent technological innovation. The
+Bank cooperated with scientific research institutes
+and leading enterprises and focused on cutting-edge
+technologies. The Bank was the first in the industry
+to release the White Paper on Privacy Computing in
+Promoting the Development of the Data Ecosystem
+of the Financial Industry, and a total of 12 projects
+were designated as the pilot projects for innovation
+and supervision of FinTech, among which "IoT-
+based Item Traceability Certification Management
+and Supply Chain Finance" was among the first pilot
+projects completed for whole-process innovation and
+supervision of FinTech in China.
+Building an innovation culture. The Bank has held
+the ICBC Cup FinTech Innovation Competition for
+National College Students outside the Bank for
+12 consecutive years. In 2021, more than 40,000
+students from some 700 universities across the
+country signed up and submitted over 8,000 works.
+The Competition focused on hot issues and key
+fields, stimulated students' innovation vitality, and
+created a good technological innovation atmosphere.
+Within the Bank, by holding "Creative ICBC" series
+activities and establishing the incubation system,
+the Bank has formed the long-acting mechanism
+of "gathering tutoring - testing incubation
+-
+-
+launch", which has supported and assisted in the
+spreading of creativity across the Bank.
+Annual Report 2021
+47
+Discussion and Analysis
+Internet Finance
+The Bank actively adapted to new needs of the digital
+development of the national economy. Based on key
+strategies, it accelerated reform and innovation, made
+overall plans for all channels, services via all channels and
+online customer operation, promoted the development
+of e-ICBC 4.0, and built the "One Body, Two Wings"
+development pattern featuring "own platforms + open
+banking". In 2021, transaction volume via electronic
+channels hit RMB732.85 trillion, an increase of 14.4%
+from the previous year, and business handled via electronic
+channels accounted for 98.8%. The Bank won a number of
+important awards in the field of internet finance, including
+"Best Digital Consumer Bank in China" and "Best
+Corporate/Institutional Digital Bank in China" from Global
+Finance.
+Accelerating Platform Innovation and
+Deepening Synergy among Channels
+Building No.1 Personal Mobile Bank and empowering
+the No.1 Personal Bank Strategy. The Bank launched
+Version 7.0 of personal mobile banking that features
+"five intelligent companionships", namely, wealth
+companionship, cloud companionship, exclusive
+companionship, account companionship, and
+privilege companionship and provides interaction
+in all respects and companionship throughout the
+whole customer journey. The Bank established a
+personalized service system. It released exclusive
+versions including Happy Life Version 2.0, Beautiful
+Home Version 2.0, Inclusive Finance for Small and
+Micro Enterprises Version 1.0, the English version
+and the payroll payment agency service zone, "ICBC
+Salary Manager", improved exclusive services for
+key customer groups such as elderly customers,
+customers in counties, small and micro enterprises,
+cross-border service customers and payroll payment
+agency service customers, and met customers'
+diversified financial needs. The Bank improved
+user experience of mobile banking by upgrading a
+number of frequently used transaction functions.
+It also intensified precision marketing of financial
+products. Wealth management, fund and insurance
+transaction volume via online channels accounted
+for over 95%. At the end of 2021, personal mobile
+banking customers recorded 469 million, and ICBC
+Mobile Banking became the first application in
+banking industry that topped 100 million monthly
+active users ("MAU"), with over 150 million MAUS
+at mobile terminals, leading the industry in terms of
+customer size and activity.
+Improving the functions and user experience of
+enterprise mobile banking and internet banking.
+The Bank launched Enterprise Mobile Banking 4.0,
+improved the basic platform service capability of
+enterprise internet finance, and carried out the
+"Excellence Project" of frequently used functions
+of corporate internet banking. In 2021, average of
+the monthly active customers of corporate internet
+banking hit 4.41 million, and that of Enterprise
+Mobile Banking 1.60 million. The Bank maintained a
+leading position by customer activity in the industry.
+Deepening government-business-consumption
+coordination and assisting in "net making and
+patching" program. Seizing the opportunities of
+reforms to streamline administration and delegate
+power, improve regulation, and upgrade services
+and the development of digital economy, the Bank
+promoted bank-government-enterprise cooperation
+in depth. Through "Ju Fu Tong", it connected to
+nearly 200 platforms and served 73 government
+and public service platforms. The Bank assisted
+customers in traditional manufacturing circulation
+fields in going online and served 26 thousand
+corporate customers. In the field of consumer
+internet, the Bank actively explored cross-border
+e-commerce business, intensified marketing of cross-
+border e-commerce platforms, and strengthened
+cooperation with rural revitalization related
+platforms. In this field, it served 19.60 million
+personal customers.
+Deepening online and offline integrated
+development. A total of 16 thousand "cloud"
+outlets, 28 thousand wealth managers, over 100
+remote customer service representatives provided
+online and offline integrated services in the
+"intelligent manual" and "text + voice + video"
+forms via "cloud outlets, cloud studios and cloud
+customer service", making the Bank, employees
+and services available online. The services and
+functions of "cloud" outlets were upgraded, and
+capabilities in online and offline marketing and
+publicity, characteristic operation and collaborative
+output were improved. Twelve cloud outlets with
+ancient building characteristics and benchmarking
+"cloud" outlets on Universal City Walk were created,
+and marketing of characteristic outlet brands was
+strengthened. Enterprise-level WeChat accounts
+were integrated and upgraded, resulting in resource
+concentration and efficient operation of the WeChat
+ecosystem. Moreover, connection between mobile
+banking and remote banking and outlets was
+deepened, with the launch of the real-time same-
+screen tutoring service, an upgrade from "face
+48
+ICBC
+targeted incentives to unleash talents' innovation
+vitality. Meanwhile, the Bank established the open
+competition mechanism to encourage innovation,
+implemented the agile R&D model across the board,
+and organized more than one hundred flexible teams
+for agile R&D, who efficiently responded market
+demand. ICBC Information and Technology (Beijing)
+Co., Ltd. was established to reinforce the value
+output capability and market influence.
+Reinforcing Production Safety
+-
++
+The transformation of production and operation
+maintenance was carried out in an orderly manner.
+The Bank strengthened technical support capacity.
+Based on the distributed system framework,
+it realized the betterment of high-availability
+architecture deployment of key business lines such
+as mobile banking, internet banking, fast payment,
+financial markets, etc. The Bank improved emergency
+response capability. It was the first among its peers
+to complete the total switching drill of the cloud
+platform, and successfully simulated cross-park quick
+emergency switch at the ten-thousand node level
+under large-scale, complex fault scenarios. The drill
+verified the high availability level of key technology
+infrastructure. The Bank optimized the business
+operation monitoring system and realized full-link
+integrated monitoring of application and equipment
+in key applications, and formed correlation analysis
+and full-link tracking capabilities of cross-application
+transactions.
+The
+Group's information security protection
+capability was further improved. The Bank promoted
+the implementation of version 2.0 of network
+security rating and protection regulations and
+completed external evaluations for all its protection
+systems, all of were granted the highest grade
+of "Excellent". The Bank established the group-
+wide integrated intelligent information security
+management sub-center, allowing tier-one (directly
+managed) branches to conduct automated and
+visual management of tier-two branches within their
+jurisdiction. The Bank preliminarily established a
+financial attack-defense range and a safe operation
+model that uses attack to improve defense which
+won the first place in many security competitions
+held by the relevant departments. As the first
+financial institution member of the technology team
+of the China National Vulnerability Database (CNVD),
+the Bank fulfilled its responsibilities as a large bank
+and actively looked for 0 day vulnerabilities.
+Annual Report 2021
+45
+Discussion and Analysis
+Promoting Innovation as a Drive of High-
+quality Development of the Bank
++
+Promoting model innovation. The Bank encouraged
+innovation in non-contact services. It was the first
+among its peers to launch the "Cloud ICBC" brand
+system. By integrating and optimizing diverse service
+scenarios such as cloud business handling, screen-
+to-screen handling of urgent matters, around-the-
+clock communication, service integration, open-
+type intelligent ecosystem, etc., the system allows
+customers to handle their banking business anytime
+anywhere. The Bank promoted innovation in
+integration of data and intelligent technology. The
+Bank was the first in the industry to establish the
+enterprise-level data middle-office and was also
+the first to load the whole group's data into the
+data lake. It deposited 14 categories of customer
+features and provided more than 1,000 enterprise-
+level data services to business systems in the fields of
+customer marketing, product innovation, risk control,
+operation management, etc., which fully improved
+the capability to convert enterprise data into value.
+The Bank upgraded "intelligent brain" marketing
+and offered intelligent service solutions that are
+unique to 700 million personal customers. By
+using interactive techniques such as digital human,
+intelligent Q&As and voice interaction, the Bank
+intensified application of "Machine substitution" at
+the front office of customer service, the back office
+of business operation, etc. and launched more than
+600 intelligent application scenarios with digital
+employee attributes.
++
+Strengthening product innovation. The Bank
+upgraded the intelligent custody platform,
+launched the featured deposit product "Intelligent
+Corporate Deposit Express", added e-CNY support
+into ICBC e Bill Pay and bank-enterprise interlink,
+and completed the industry's first public e-CNY
+payment with the State Grid e-commerce platform,
+the first of its kind in the industry. The Bank
+empowered cross-border finance. It established
+the "Southbound Bond Connect" business system
+to support the development of cross-border
+RMB business. It promoted the innovation and
+application of the Intelligent Trade Finance Platform.
+It was the first among its peers to join the cross-
+border financial blockchain service platform of
+the State Administration of Foreign Exchange
+as an authentication node, it was among the
+first institutions in the industry to complete the
+connection to the electronic L/C forfaiting system
+of PBC, and it was also the first in the industry
+to embed L/C products into the customs' Single
+Window platform. The Bank innovated in inclusive
+finance and launched "ICBC Inclusive", the three-
+in-one online channel brand that combines "an
+exclusive version of personal mobile banking, a
+WeChat applet, and a dedicated zone in enterprise
+mobile banking". It upgraded the cross-border
+business matchmaking platform, "ICBC Business
+Matchmaker", and launched its 2.0, which provides
+intelligent, whole-process closed-loop cross-border
+business matchmaking services to small and medium
+enterprises. The Bank empowered rural revitalization.
+It creatively launched the ICBC Xingnongtong APP,
+an online financial service channel for rural areas
+featured by services and functions concerning
+people's livelihood, agency services, inclusive finance
+services, village affairs, etc. It also established
+three service platforms, namely, the Xingnong
+matchmaking platform, the rural revitalization
+statistical monitoring platform, and the "Digital
+Villages" comprehensive service platform, to assist in
+the digital transformation of rural finance.
+46
+ICBC
+Discussion and Analysis
++
+Innovating in ecosystem cooperation. The Bank built
+the "1+N" intelligent government services product
+system and established the "all-in-one network"
+government service platform to fully empower
+government services. It promoted integration
+of government service data across the board
+and launched more than 300 bank-government
+cooperation scenarios in 29 branches. The Bank
+I was one of the first contracted data traders of
+the Shanghai Data Exchange, concluded the first
+transaction and the first financing based on the data
+asset voucher at the Shanghai Data Exchange, and
+strengthened innovation in cooperation with local
+data markets. The Bank built an intelligent industry
+ecosystem, by establishing a series of platforms
+such as Julian and Jurong, connecting to supply
+chain scenarios in the upstream and downstream
+sections of large enterprises such as procurement
+and sales management, providing a package of
+personalized financial services, and empowering the
+transformation and upgrading into digital supply
+chains.
+Accelerating Reforms of Technology
+Governance Mechanisms
+Building an active pattern and increasing innovation
+supply. The Bank implemented the FinTech talent
+development project, carried out the "Tech Elite"
+training program, and actively introduced high-
+end social technical personnel. It fully promoted
+the "trained by technology used by business"
+talent pool mechanism and used layered and
+The Bank deepened the layout of FinTech consisting of
+"one department, three centers, one subsidiary, and one
+research institute". It stepped up efforts in mechanism
+innovation, promoted penetration of the technology
+gene, continued to improve financial innovation response
+efficiency and supply capability, and unleashed the
+vitality of the Bank's FinTech innovation. The Bank
+invested RMB25,987 million in FinTech in 2021, and it
+had 35 thousand FinTech personnel at the end of 2021,
+accounting for 8.1% of all employees across the Bank.
+Financial Market Business
+At the end of 2021, the annuity funds under custody
+amounted to RMB407.0 billion. The Bank managed
+11.98 million individual enterprise annuity accounts,
+and the annuity funds under custody reached
+RMB1,152.3 billion. The Bank obtained the trustee,
+custodian and investment manager qualifications
+for occupational annuities in 33 regions under
+overall planning, with the total size of occupational
+annuities of the three qualifications ranking first in
+the market. The Bank ranked first among peers in
+terms of the scale of enterprise annuity funds under
+custody, number of individual enterprise annuity
+accounts and annuity funds under custody.
+Unit: RMB100 millions
+Personal Loans
+Unit: RMB100 millions
+43,280.90
+51,966.07
+53,905.82
+63,836.24
+71,152.79
+79,447.81
+Ht
+HE H
+61,496.54
+64,639.29
+71,073.86
+2019
+Time deposits
+2020
+Personal Deposits
+2021
+40
+39
+In terms of RMB, the Bank actively fulfilled its
+responsibilities as a large bank and assisted in
+maintaining the smooth operation of the money
+market. It rationally devised financing maturities,
+varieties and counterparty structure, and constantly
+improved the profitability of fund operation. As
+it steadily promoted business innovation and
+development, it completed the first batch of offshore
+RMB negotiable certificate of deposit ("NCD")
+investments via "Southbound Connect".
+Discussion and Analysis
+Discounted Bills
++
+The Bank grasped the development trend of financial
+services, successfully made a debut of banker's
+acceptance rediscounting service of supply chain bill
+in China, and launched featured products such as
+"Monthly Discount", "Weekend Discount", "ICBC
+i Green Discount", "Supply Chain Bill Pay Plus",
+"ICBC e Discount + Agreed Interest". The "bill
+business platform scenario" project was connected
+with the high-quality industrial platform to further
+improve the user function experience of bill business
+in corporate internet banking channels.
+In 2021, discounted bills amounted to
+RMB1,708,223 million, representing an increase of
+15.8% year on year, ranking first in the market.
+Discounted bills for small and micro enterprises
+reached RMB473,966 million. At the end of 2021,
+the balance of discounted bills for small and micro
+enterprises was RMB213,796 million.
+Personal Banking
+In 2021, the Bank continued to deepen the No.1 Personal
+Bank Strategy, to make it a bank satisfactory to the
+people. Focusing on the building of an individual customer
+ecosystem, the Bank promoted the high-quality business
+development relying on the "intelligent brain" decision
+pivot and full-spectrum operation system.
++
+It upgraded the "intelligent brain" decision pivot.
+Relying on the "intelligent brain", the Bank drew
+up a plan for differentiated and targeted services,
+and developed the overall plan and strategy for
+personal customer marketing services through online
+and offline multi-channel service outlets. A total of
+34 intelligent models have been developed and put
+into operation to realize automatic triggering and
+real-time response, strengthen the empowerment
+support for marketing and management
+personnel, and promote the digital and intelligent
+transformation of personal banking.
+4
+The broadest customer base service system was
+upgraded comprehensively. Being customer-centric,
+the Bank launched "ICBC Star Privileges", a brand-
+new high-star personal customer value-added
+equity brand, and deeply carried out the activities,
+including "March Forward with Wealth and Gift", a
+medium and high-end customer marketing activity,
+"Treasure Hunt", a credit reward activity, and "Star
+Promotion", a targeted marketing activity. The
+number of customers with the average monthly/daily
+financial assets of RMB50,000 and above increased
+by 6.5% over the end of the previous year.
+The
+Bank promoted the transformation and
+development of wealth management business. It
+organized and carried out activities such as "828
+ICBC Wealth Season" and "AXA Theme Day",
+launched a series of wealth management products
+that are open, selected, best-selling and exclusive
+under new financial regulations, and promoted
+intelligent asset allocation services.
+The Bank fully met customers' consumer financing
+needs. Adhering to the guideline that "housing is
+for living in, not for speculation", the Bank satisfied
+the reasonable needs of customers, including first
+time home buyers, and continued to carry out
+special marketing activities, such as "Home-backed
+Finance", "Merchants Mate", "Online Merchants
+Loan" and "Entrepreneurship Dream".
+At the end of 2021, the number of personal
+customers increased by 23.41 million over the end of
+the previous year to 704 million. Personal financial
+assets totaled RMB 16.96 trillion. Specifically,
+personal deposits reached RMB12,497,968 million,
+representing an increase of RMB837,432 million
+or 7.2%. Personal loans stood at RMB7,944,781
+million, representing an increase of RMB829,502
+million or 11.7%. Funds under agency sales
+amounted to RMB645.4 billion, government bonds
+under agency distribution were valued at RMB57
+billion, and personal insurance products under
+agency sales reported at RMB108.2 billion.
+Annual Report 2021
+Discussion and Analysis
+Demand deposits
+Money Market Activities
+2020
+Wealth Management Services
+In compliance with regulatory requirements and
+New Rules on Asset Management, the Bank made
+comprehensive use of wealth management product
+undertaking, asset return to the balance sheet and
+market-based transfer and other measures that
+comply with the new regulations, and overdid the
+task of rectifying and reducing existing wealth
+management products during the transition
+period. At the end of 2021, the balance of wealth
+management products reached RMB2,586.9 billion.
+Please refer to the section headed "Business
+Overview Diversified Operation and Subsidiary
+Management" for details on the business
+development of ICBC Wealth Management.
+Annual Report 2021
+41
+Discussion and Analysis
+Asset Custody Services
+4
++
+New breakthroughs were made in key products,
+and the Bank's leading position in the industry
+was further consolidated. The mutual funds under
+custody amounted to RMB3.7 trillion, representing
+an increase of RMB663.7 billion over the end of
+the previous year. The pension funds under custody
+totaled RMB2.3 trillion, an increase of RMB359.1
+billion. The enterprise annuity funds, occupational
+annuity funds and pension fund products under
+custody ranked first in the industry. The insurance
+asset under custody was RMB5.9 trillion, an increase
+of RMB479.8 billion. The Bank achieved an important
+breakthrough in global custody business, and was
+approved eligible for the first batch of pilot custody
+and clearing bank under "Southbound Bond
+Connect" scheme. The outsourcing business of asset
+management products developed rapidly, with a size
+over RMB2.5 trillion.
+The building of intelligent custodian bank was
+advanced steadily. The Bank officially released the
+"ICBC Intelligent Custody System", launched the
+ICBC custody mobile banking and the intelligent
+investment service platform, and comprehensively
+improved its custody service.
+The Bank was awarded the "Best Custodian Bank in
+China" and the "Best Insurance Custodian Bank in
+China" by The Asset and the "Best Custodian Bank
+in China (Mega Bank)" by The Asian Banker.
+At the end of 2021, the size of custody business
+reached RMB22.1 trillion.
+Pension Services
+In light of China's strategy of actively responding to
+the aging population, the Bank made every effort
+to promote the transformation and development of
+pension business to pension finance business, build
+a business ecosystem centering on pension fund
+finance, senior care service finance and senior care
+industry finance, help improve people's well-being
+and fulfill the responsibilities of a large bank.
+The Bank won the "Tianji Award for Pension
+Financial Services Bank of the Year" by the
+Securities Times, the "2021 Top 10 Supply Wealth
+Management Innovation" by The Chinese Banker,
+and the "2020-2021 Investible Pension Financial
+Institution" by the Economic Observer.
++
+2019
+The Bank firmly implemented the regulatory requirements,
+seized development opportunities, pushed forward
+the transformation of asset management business
+and products in a steady and compliant manner and
+comprehensively enhanced investment management and
+research capabilities. It established an asset management
+business system allowing allocation of capital in all markets
+and value creation across the whole value chain by relying
+on the strength of the Group's asset management, custody
+and pension businesses as well as its comprehensive
+subsidiaries specialized in fund, insurance, leasing,
+investment banking and wealth management, to serve
+direct financing, and provide diversified, integrated and
+specialized services for customers.
+Asset Management Services
++
+The Bank accelerated the building of ICBC e Life
+platform by creatively promoting "credit card plus
+e-CNY" closed loop where both e-CNY payment and
+QR code payment could be completed with the e
+Life APP. The Bank supported the acceptance of Visa
+overseas cards in its e-CNY wallet to back up the
+Winter Olympic Games.
+ICBC Deepened the No.1 Personal Bank Strategy
+By the end of 2021, the Bank had issued 1,169
+million bank cards, an increment of 41.70 million
+compared with the end of last year. Specifically,
+1,006 million debit cards and 163 million credit
+cards had been issued. The overdraft balance of
+credit cards reached RMB692,339 million. In 2021,
+ICBC bank cards registered a spending volume of
+RMB22.99 trillion, including RMB20.43 trillion from
+debit cards and RMB2.56 trillion from credit cards.
+2021
+In 2021, the Bank quickened the pace of deepening the No.1 Personal Bank Strategy, made new progress and new
+breakthroughs, and took on a new look.
+Focusing on the financial business "serving, benefiting and reassuring the people", the Bank improved the
+adaptability, competitiveness and inclusiveness of financial services, with the total number of personal customers
+topping 700 million. Among them, the number of mobile banking customers reached 469 million. Credit card
+consumption tended to recover gradually, giving an impetus to services for the strategy of expanding domestic
+demand. Focusing on the goal of common prosperity, the Bank vigorously developed wealth management business,
+managed personal financial assets of nearly RMB17 trillion, remaining in the leading position in the industry. The
+balance of personal wealth management products under the new rules stood at RMB1.71 trillion, representing an
+increase of 102.71% over the end of the previous year. Relying on "Rural Revitalization • Funong Card", the Bank
+quickened the pace of expanding county markets, and promoted financial services at the grass-roots level. It launched
+the "ICBC with You" service brand, created products, services, channels and theme activities suitable for the elderly,
+and accelerated the building of all-in-one social security card as a move to fulfill the responsibility of a large bank. It
+held nearly half of the newly increased market share of social security cards.
+In light of the core objective of strategic breakthrough, the Bank strengthened the upgrading of financial supply side
+services, and promoted high-quality business development. Personal deposits exceeded RMB12 trillion, hitting a new
+high. The cost was effectively controlled and the capacity of volume-price coordination was significantly enhanced. The
+balance of personal loans approached to RMB8 trillion. The quality of assets improved steadily, and the balance and
+ratio of non-performing loans both declined. Income from fee-based personal banking increased steadily.
+In light of the "customer-centric" business philosophy, the Bank comprehensively promoted the transformation from
+"business-oriented" to "customer-oriented", strengthened the overall planning to meet the needs of customers, and
+significantly improved the cohesion and competitiveness of personal banking. Focusing on the building of personal
+customer ecosystem and customers' needs to spend money, make money, borrow money and manage money, the
+Bank promoted the comprehensive building of wealth management, consumer finance, payment and settlement
+and smart account business system, with the operation of key customer groups as the foothold. The Bank further
+strengthened capacity-building, assessment orientation and digital transformation, and established a digital operation,
+investment research and consulting, and innovation empowerment team of the Head Office, providing stronger
+support and guarantee for building the No.1 Personal Bank to the satisfaction of the people.
+Discussion and Analysis
+Private Banking
+ICBC
++
+Based on the crossover scenario of "finance plus
+tourism", the Bank issued the co-branded credit
+card of ICBC Universal Beijing Resort with exclusive
+authorization. It also issued various innovative
+debit cards and carried out continuous promotional
+campaigns such as "Palace Museum Card Applicant
+Gifts" and "CNPC UnionPay Cloud Flash Pay
+Discount".
++
+At the end of 2021, the Bank had 199.5 thousand
+private banking customers, representing an increase
+of 17.6 thousand or 9.7% over the end of the
+previous year. The assets under management
+totaled RMB2.32 trillion, representing an increase of
+RMB144.2 billion or 6.6%.
+The Bank was awarded the "Overall Best State-
+Owned Private Bank in China" by the Asiamoney, the
+"Excellent Private Bank of the Year" by the National
+Business Daily, and the "The Competitive Private
+Bank in 2021" by the China Business Journal.
+Bank Card Business
+The Bank adhered to product and service innovation.
+It made efforts to build a service ecosystem
+for entrepreneurs, and listed 100 branches as
+"Entrepreneurs Service Center". It jointly issued
+the Report on ICBC Entrepreneur Wealth Health
+Index with renowned universities. The Bank strove
+to build a comprehensive service platform for
+family customers, vigorously developed family trust
+consulting business, and successfully launched
+insurance trust, fund trust, equity trust and other
+full-spectrum family wealth management services.
+In line with the buyer's market trend of wealth
+management, the Bank grasped the diversified needs
+of private banking customers, shifted from single
+product marketing to comprehensive service, and
+built a comprehensive service ecosystem for private
+banking customers jointly built in multiple scenarios
+of "individuals, families, enterprises and social
+responsibility".
+The Bank spared no effort to promote innovation
+in the field of green finance, worked with ICBC
+Wealth Management to create "Hengrui" series of
+green finance themed products, helped serve major
+strategies such as national rural revitalization and
+common prosperity, and carried forward China's
+contemporary entrepreneurship.
+Macau SAR
+91
+950
+1,057
+118,253
+145,860
+Asia-Pacific Region
+108
+of 2021
+1,565
+1,373
+204,181
+214,414
+Hong Kong SAR and
+of 2020
+2020
+90
+102
+90
+1
+and Macau SAR)
+Eliminations
+2021
+1
+African Representative Office
+152
+152
+42
+253
+(except Hong Kong SAR
+51,106
+America
+75
+75
+302
+401
+89,030
+83,726
+Europe
+59,548
+of 2020
+Internet financial services: Through internet banking,
+mobile banking and other online channels, the Bank
+offered services across 46 countries and regions
+in 15 languages. A full range of financial services,
+including account query, transfer and remittance,
+investment and wealth management, payroll, fund
+payment and cross-border payment were available
+to customers. Focusing on key products, scenarios
+and regions, the Bank promoted online business
+innovation and characteristic development of
+overseas institutions.
+Item
+Personal banking: The Bank was the first to launch
+"Cross-boundary Wealth Management Connect"
+business in Guangdong-Hong Kong-Macao Greater
+Bay Area, providing "Southbound Connect" and
+"Northbound Connect" investment services for the
+customers in nine cities in the Pearl River Delta, Hong
+Kong SAR and Macau SAR. The Bank built a cross-
+border service platform for entrepreneurs through
+"Entrepreneurs Service Center" in the Greater
+Bay Area. The Bank gathered pace in overseas
+bank card product innovation and digital service
+improvement, rolled out new products (digital bank
+card, private banking credit card and debit card of
+wealth management) abroad and diversified online
+financial services (such as card opening, installment
+and acquiring). The Bank continued to optimize the
+functions of overseas mobile payment and acquiring
+products of bank cards, promoted ICBC e Payment,
+and further promoted the interconnection of cross-
+border payment in the Greater Bay Area.
+by Refinitiv. The Bank was among market leaders in
+Hong Kong IPO underwriting and sponsorship, and
+the underwriting of overseas bonds and offshore
+China bonds.
+Corporate banking: The Bank provided "one-stop"
+financial services in local and foreign currencies for
+Chinese enterprises "Going Global" and foreign
+enterprises "Bringing In" by making comprehensive
+use of financial products such as overseas bond
+issuance, cross-border merger and acquisition,
+project financing, international trade financing,
+derivative trading and global cash management.
+The Bank has remained the first place in terms
+of the number of deals completed for the cross-
+border acquisition transactions of Chinese-invested
+enterprises according to the ranking promulgated
++
+The Bank served and integrated into the high-level
+opening-up of the state, actively grasped changes in
+foreign investment and trade patterns, deeply implemented
+the strategy to become the preferred bank for foreign
+exchange business, officially unveiled the financial product
+brand of "YES ICBC" for foreign exchange, and proactively
+drove domestic business development and the Group's
+market competitiveness enhancement through high-quality
+internationalized development.
+Internationalized Operation
+Note: Overseas and other assets include investments in associates and joint ventures.
+100.0
+54
+434,089
+16,590
+100.0
+35,171,383
+Total
+unallocated assets
+(17.3)
+(6,053,959)
+Eliminated and
+100.0
+of 2021
+ICBC
++
+At the end
+At the end
+At the end
+At the end
+Number of institutions
+(in USD millions)
+Profit before taxation
+(in USD millions)
+Discussion and Analysis
+Assets
+Discussion and Analysis
+55
+Annual Report 2021
+The Bank continued to improve its global network
+layout. Panama Branch was officially opened. At
+the end of 2021, the Bank established 421 overseas
+institutions in 49 countries and regions and indirectly
+covered 20 African countries as a shareholder of
+Standard Bank Group. It had 125 institutions in 21
+countries along the Belt and Road. The Bank also
+established correspondent banking relationships with
+1,404 overseas banking institutions in 142 countries
+and regions, making its service network covering
+six continents and important international financial
+centers around the world.
+Cross-border RMB business: The Bank pressed head
+with the construction of cross-border RMB product
+system and multi-scenario services, fostered offshore
+RMB market, innovated offshore RMB investment
+and financing products, and continued to promote
+RMB-denominated settlement in the whole process
+of bulk commodity transactions. The Bank promoted
+the construction of the account system of the
+separate accounting units in free trade zones, and
+supported the innovative development of cross-
+border RMB business in key areas such as Shanghai
+Lingang Special Area, Greater Bay Area and Hainan
+Free Trade Port. The Bank strengthened cooperation
+with payment institutions, cross-border e-commerce
+platforms and other entities, continuously optimized
+the cross-border payment business platform of
+"Cross-border e-Business Connect", and supported
+the development of new cross-border e-commerce
+firms. In 2021, cross-border RMB business exceeded
+RMB8.5 trillion.
+Global custody business: The global custody
+business hit another record high. Specifically,
+the custody of domestic investment by overseas
+customers surpassed RMB200.0 billion. The Bank
+was approved eligible for pilot custody clearing bank
+of the first batch of "Southbound Bond Connect"
+and completed the first batch of trading. The
+Bank was among the first batch to support QFIs
+to complete securities investment and refinancing
+securities lending in Beijing Stock Exchange, and
+the first exercise of employees' CDR right. It further
+reinforced innovation advantages of cross-border
+custody.
+Financial market business: The Bank completed
+"Southbound Connect" investment trading with
+its own funds in the first batch, assisted overseas
+institutions in financing in the interbank market
+through panda bond underwriting service, and
+established the interbank bond and foreign
+exchange market business partnership with
+overseas institutional investors from more than 60
+countries and regions. The Bank provided prime
+trading services for "Going Global" and "Bringing
+In" customers, and increased foreign exchange
+settlement and sale business for spot (10 currencies
+such as CZK) and forward (6 currencies such as HKD)
+difference delivery. The Bank entered the first prime
+brokerage trading for foreign exchange swap in
+RMB in the interbank foreign exchange market and
+the first USD rate swap of USD-linked SOFR, and
+constantly enhanced market making capabilities and
+market competitiveness of foreign exchange trading.
+Global asset management business: The Bank
+further advanced the steady development of foreign
+exchange and cross-border wealth management
+business. At the end of 2021, China CGB Index Fund
+"ICBC CSOP WGBI CGB Index ETF" for which ICBC
+Wealth Management and ICBC Asset Management
+(Global) provided investment advisory service, as
+the world's largest offshore pure CGB ETF product,
+become an important channel for overseas funds to
+invest in CGB assets. "ICBC CSOP Bloomberg CGB+
+Policy Bank Bond Index ETF" became the largest
+Chinese rate bond ETF product in Hong Kong's
+market.
+(51,999)
+MAJOR INDICATORS FOR OVERSEAS INSTITUTIONS
+(44,378)
+Note: (1) The assets represent the balance of the Bank's investment in Standard Bank and the profit before taxation represents the Bank's
+gain on investment recognized by the Bank during the reporting period.
+451,549
+New York Branch (USA)
+ICBC (USA) (USA)
+ICBCFS (USA)
+Institutions (country/region)
+America
+ДД
+African Representative Office
+(South Africa)
+Investments in Standard Bank
+(South Africa)
+Institutions (country/region)
+Africa
+ICBC (Canada) (Canada)
+Macau Branch (Macau, China)
+(Hong Kong, China)
+ICBC International
+ICBC (Asia) (Hong Kong, China)
+(Hong Kong, China)
+Hong Kong Branch
+Institutions (country/region)
+Hong Kong SAR and Macau SAR
+Prague Branch (Czech Republic)
+Zurich Branch (Switzerland)
+ICBC (Austria) (Austria)
+ICBC (Macau) (Macau, China)
+ICBC (Mexico) (Mexico)
+ICBC (Brasil) (Brazil)
+ICBC (Peru) (Peru)
+ICBC (Argentina) (Argentina)
+ICBC Investments
+ICBC
+58
+ICBC Leasing was mainly engaged in financial leasing
+of large-scale equipment in key areas such as aviation,
+shipping, energy and power, rail transit and equipment
+manufacturing, and provided a number of financial and
+industrial services such as rent transfer, investment fund,
+investment asset securitization, asset trading and asset
+management.
+ICBC LEASING
+At the end of 2021, ICBC Credit Suisse Asset
+Management managed 207 mutual funds, and more
+than 690 annuities, special accounts and special
+portfolios, with assets totaling RMB1.72 trillion.
+ICBC Credit Suisse Asset Management served the
+wealth management needs of residents. It upgraded
+the customer service mode and provided the
+whole process companion service of "investment +
+advisory". It set up an investor protection committee,
+strengthened the protection of investors' legitimate
+rights and interests, and further promoted investor
+education, which was evaluated as excellent in the
+assessment of the national securities and futures
+investor education base.
+ICBC Credit Suisse Asset Management quickened
+steps in high-quality development, and continuously
+improved the value contribution. The investment
+performance remained in a leading position and
+the average yields of equity funds and bond funds
+actively managed remained in the forefront of
+large fund companies. ICBC Credit Suisse Asset
+Management practiced the concept of socially
+responsible investing, and won the "Gold Fund SRI
+(ESG) Return Fund Management Company Award"
+of Shanghai Securities News.
++
+ICBC Credit Suisse Asset Management is mainly engaged
+in fund raising, fund sales, asset management and other
+businesses approved by CSRC. It had many business
+qualifications such as mutual fund, QDII, enterprise
+annuity, specific asset management, domestic (foreign)
+investment manager of social security fund, RQFII,
+insurance fund management, special asset management,
+occupational annuity and basic endowment insurance
+investment manager, and was one of the "fully qualified"
+fund companies in the industry.
+ICBC CREDIT SUISSE ASSET MANAGEMENT
+The Bank strictly abided by local regulatory requirements,
+developed the Group's unified risk management strategy
+and risk appetite based on the work idea of "plan
+ahead, see the big from the small, remedy in time and
+draw inferences", promoted inclusion of investment and
+financing data of domestic subsidiaries into the data lake
+to effectively identify, measure, monitor, control and report
+various risks, and enhanced enterprise risk management.
+The Bank adopted strict consolidated and penetration
+management, improved risk prevention & control and
+internal control & compliance capabilities, and pursued
+high-quality development.
+The Bank optimized the governance structure of
+subsidiaries, strengthened the support for duty
+performance by directors and supervisors assigned
+to subsidiaries, promoted the organic integration of
+Party building and corporate governance of domestic
+subsidiaries, and continuously improved the effectiveness
+of corporate governance of subsidiaries. The Bank
+promoted the deep and accurate transmission of the
+Group's strategy to subsidiaries, and improved the Group's
+full-product, full-market, full-process and full-lifecycle
+service system and value chain. The Bank improved the
+efficiency of capital use, and optimized the assessment
+mechanism and resource allocation. The industry influence,
+core competitiveness and customer service capability of
+subsidiaries were constantly enhanced.
+The Bank made unremitting efforts in perfecting the
+management system of "Four Beams and Eight Columns",
+issued the Rules for Management of Overseas Institutions,
+Rules for Management of Domestic Integrated Subsidiaries
+and other important policies, and established a subsidiary
+management mechanism featuring "leading coordination
+and focusing on lines" to promote the perfection of the
+subsidiary management system.
+The Bank remained committed to serving the real
+economy and supply-side structural reform, focused on
+main business, refined specialized business, and gradually
+created a diversified operation pattern covering fund,
+leasing, overseas investment banking, insurance, wealth
+management, debt-for-equity swap and technology.
+Strategic coordination efficiency was continuously raised.
+Diversified Operation and Subsidiary
+Management
+Discussion and Analysis
+57
+Annual Report 2021
+Argentina (Argentina)
+Inversora Diagonal (Argentina)
+Panama Branch (Panama)
+ICBC Turkey (Turkey)
+Subtotal
+ICBC Standard Bank (UK)
+Bank ICBC (JSC) (Russia)
+Brussels Branch (Belgium)
+Milan Branch (Italy)
+Madrid Branch (Spain)
+Warsaw Branch (Poland)
+Greece Representative Office
+(Greece)
+5.4
+426
+421
+3,017
+3,414
+422,079
+455,419
+Total
+As at the end of 2021, total assets of overseas
+institutions (including overseas branches, subsidiaries
+and investment in Standard Bank) of the Bank were
+USD455,419 million, representing an increase of
+USD33,340 million or 7.9% from the end of the
+previous year, and they accounted for 8.2% of the
+Group's total assets. Profit before taxation during the
+158
+3,887
+3,870
+Investment in Standard Bank(1)
+426
+421
+2,859
+3,084
+418,192
+330
+reporting period was USD3,414 million, representing
+an increase of USD397 million or 13.2% and
+accounting for 5.1% of the Group's profit before
+taxation. Total loans amounted to USD197,279
+million, representing a decrease of USD5,565 million
+or 2.7% from the end of the previous year; and total
+deposits were USD149,273 million, representing an
+increase of USD1,052 million or 0.7%.
+56
+ICBC
+(the Netherlands)
+Frankfurt Branch (Germany)
+Luxembourg Branch (Luxembourg)
+ICBC (Europe) (Luxembourg)
+Paris Branch (France)
+Amsterdam Branch
+Institutions (country/region)
+Europe
+Auckland Branch (New Zealand)
+ICBC (New Zealand) (New
+Zealand)
+Yangon Branch (Myanmar)
+ICBC (Almaty) (Kazakhstan)
+Karachi Branch (Pakistan)
+Mumbai Branch (India)
+Dubai (DIFC) Branch (UAE)
+Abu Dhabi Branch (UAE)
+Doha Branch (Qatar)
+Riyadh Branch (Saudi Arabia)
+Kuwait Branch (Kuwait)
+Sydney Branch (Australia)
+Phnom Penh Branch (Cambodia)
+Vientiane Branch (Lao PDR)
+Ho Chi Minh City Representative
+Office (Vietnam)
+Hanoi Branch (Vietnam)
+ICBC (Thai) (Thailand)
+Office (Mongolia)
+Singapore Branch (Singapore)
+ICBC (Indonesia) (Indonesia)
+ICBC (Malaysia) (Malaysia)
+Manila Branch (Philippines)
+Seoul Branch (South Korea)
+Busan Branch (South Korea)
+Mongolia Representative
+Tokyo Branch (Japan)
+Institutions (country/region)
+Asia-Pacific Region (except Hong Kong SAR and Macau SAR)
+Discussion and Analysis
+DISTRIBUTION OF OVERSEAS INSTITUTIONS
+ICBC (London) (UK)
+London Branch (UK)
+23,323
+19.2
+554
+Doctorate
+⚫ Master
+Bachelor
+0
+Educational Background of Employees
+As at the end of 2021, the Bank had a total of 434,089 employees, including 410,766 employees in the Head Office
+and domestic branches, 7,467 employees in domestic subsidiaries, and 15,856 employees in overseas institutions.
+Basic Information on Employees and Institutions
+The Bank's 2021 remuneration plan was prepared
+and implemented as per the internal decision-making
+process. The execution of total annual salaries was
+reported to the authority for filing according to
+national regulations. During the reporting period, the
+Bank's Senior Management fulfilled the indicators
+concerning economic, risk and social responsibilities
+well, and final results will be determined after
+deliberation by the Board of Directors.
+The Bank continuously optimized the remuneration
+resource allocation mechanism with value creation
+as the core, resolutely maintained a fair allocation
+concept with incentive commensurate with restraint,
+transmitted the Group's strategic objectives
+for business management, and allocated more
+remuneration resources to the grassroots employees,
+for the purpose of mobilizing and inspiring the
+business vitality of institutions at all tiers.
+0.2%
+9.8%
++
+ICBC
+52
+remuneration consisted of basic
+remuneration, performance-based remuneration and
+welfare income. In particular, the basic remuneration
+depended on an employee's value contribution and
+ability to perform duties, and the performance-based
+remuneration was based on the overall situation of
+the Bank, the employee's institution or department,
+and the employee's personal performance
+measurement results. Meanwhile, the performance-
+based remuneration to the Senior Management and
+employees on key positions was subject to a deferred
+payment and recourse deduction mechanism, so
+as to balance risks and incentives. For employees
+who violated regulations and disciplines or had
+abnormal exposure of risk losses within their duties,
+the performance-based remuneration for the
+corresponding period shall be deducted, stopped in
+payment and recovered according to the severity.
+During the reporting period, according to relevant
+measures, the Bank deducted or stopped payment of
+corresponding performance-based remuneration to
+employees who were subject to disciplinary action or
+other treatment due to violation of regulations and
+disciplines or abnormal exposure of risk losses within
+their duties.
+Employee
+The Bank adopted a remuneration policy that was
+in line with corporate governance requirements,
+combination with high-quality development
+targets, in adaptation to risk management system
+and talent development strategy, and well-matched
+with employees' value contribution, so as to advance
+the sound operation and high-quality development
+of the whole bank. The Bank's remuneration
+management policy was formulated and adjusted
+in strict accordance with applicable national
+regulations, regulatory requirements and corporate
+governance procedures.
+in
+Remuneration Policy
+management and executive English training for
+managers to enhance their management capabilities.
+The Bank continued to carry out thematic training
+on FinTech, inclusive finance, AML and ESG to
+improve the professional competency and business
+capabilities of professionals. The Bank started cross-
+provincial rotating training for the heads of front-
+line outlets, coordinated and strengthened training
+for personnel on other positions, extensively
+carried out the bank-wide reading campaign and
+helped employees perform duties and grow up on
+appropriate positions.
+Discussion and Analysis
+The Bank continued to develop tiered and
+classified training programs to meet the needs of
+business development and talent team building.
+The Bank concentrated efforts on implementing
+leadership training camp, Mini MBA Program, credit
+60.5%
+22.3%
+41.9%
+Personal banking
+Employee Specialization
+29.5%
+Above 51 years old
+23.0%
+41-50 years old
+26.9%
+Associate
+31-40 years old
+●Below 30 years old
+0
+Structure of Employee Age
+Male
+O
+Structure of Employee Gender
+7.2%
+Below associate
+20.6%
+● Operation and comprehensive 16.5%
+support
+The Bank endeavored to promote the acceptance of
+corporate culture. The Bank, focusing on its strategy,
+expanded the connotation of corporate culture,
+strengthened cultural transmission, and reinforced
+employees' strategic consensus and cultural identity
+by preparing and publishing white papers on cultural
+building and producing micro-videos to interpret the
+strategy. The Bank carried forward the "Innovative
+ICBC" project, put into production the incubation
+system, and created an atmosphere of innovation
+for all employees. ICBC continued to implement
+the cultural event "That's China, That's ICBC" to
+promote cultural integration and dissemination. The
+Bank launched "Red Financial Footprint" campaign
+to guide employees to inherit the tradition and spirit
+of revolution. The Bank produced special educational
+films such as "Comprehensive and Strict Governance
+Iover Party and ICBC", carried out special warning
+education on "Financial Criminal Cases", to foster a
+clean and honest financial culture.
++
+50
+Establishing a diversified service system. A personalized service system has been established to meet customers'
+diversified financial service needs. For elderly customers, the Bank has launched Happy Life 2.0, which helps elderly
+customers cross the "digital divide" with larger characters and simpler interaction. For people with visual impairment,
+barrier-free services have been upgraded. By adding the screen reading function on the function interface, it has made
+it easier for people with visual impairment to use the mobile application. For key markets in counties, the Bank has
+launched Beautiful Home 2.0. It has developed exclusive products designed to bring tangible benefits to the people,
+business and customers in rural areas and made quality financial services available in counties, towns and villages,
+making financial contributions to the implementation of the national strategy of rural revitalization. For small and
+micro enterprise customers, the Bank has launched the Inclusive Finance version. With "one-stop" inclusive financial
+services with financing at the core and a series of "Small and Micro Enterprise e Loan" products including credit loans,
+pledged loans and digital supply chain, it has improved the inclusiveness and availability of financial services.
+The new version of mobile banking has strengthened value creation with "human + digital" resources, and it has
+focused more on leveraging platform advantages, paid more attention to users' mindset and experience and attached
+more importance to common growth with users' wealth. It has delivered a value to users, that is, "companionship
+itself is the best wealth". It has completed the transformation from "face to face" interaction at traditional physical
+outlets to online "screen to screen" interaction, from traditional wealth management product recommendation and
+sales to professional wealth investment advice giving that focuses on long-term growth, and from simple recording
+of account payments to deep connection of finance with scenarios. It has made financial life more convenient and
+friendlier to users, and has injected new vitality and connotation into the Bank's brand of "By Your Side and As Your
+Trust".
+Innovating in "cloud" service modes. The new version has launched the same-screen tutoring service. When having
+difficulties transferring or remitting money via mobile banking, customers can contact a remote customer service
+representative via one button, and the remote customer service representative will assist customers completing the
+whole business procedures by "checking the page via video and explaining services and instructing customers via
+voice", thus solving customers' difficulties in a "screen-to-screen" way. In addition, "cloud" outlets, "cloud" studios
+and "cloud" customer service have introduced "online malls" of 16 thousand ICBC outlets and 28 thousand wealth
+managers to provide "one-to-one" exclusive service to customers online.
+Upgrading the wealth management service. The new version has upgraded from wealth management product sales
+to wealth companionship and established a set of wealth companionship service system running through the whole
+investment process (before, during and after investment). Before investment, it can detect the health condition of
+the customer's asset allocation via one button and generate personalized investment advice; during investment, it
+can provide friendly interactive experience of product transaction; and after investment, it can provide customers
+with bank statements and fund taking services. In addition, the new version has added the intelligent payroll
+planning service, which, with a focus on salary payment, check and use journeys, can meet customers' remuneration
+management needs.
+Building the "intelligent operation engine". The new version of mobile banking has adopted the leading "intelligent
+brain operation engine" technology. Supported by strong GPU server computing power and data storage
+and management capabilities and hundreds of intelligent algorithms, it can push suitable contents like product
+information, news and privileges in a targeted manner to customers when they use relevant services of mobile
+banking, thus providing personalized, guided journey services.
+On 18 November 2021, the Bank officially launched Mobile Banking 7.0. After a decade, ICBC Mobile Banking has
+become the most trustworthy banking APP with the most users. Themed by "companionship", with comprehensive
+upgrades in wealth management, services, personality, interaction and privileges, Mobile Banking 7.0 aims to provide
+all-round interaction and whole-journey companionship to nearly 470 million customers.
+ICBC Launched Mobile Banking 7.0
+Discussion and Analysis
+ICBC
+49
+In serving consumption relating to people's
+livelihood, the Bank assisted in ensuring basic
+living standards and improving the quality of and
+expanding consumption. Centering on the fields
+of education, healthcare, etc., the Bank provided
+convenient online financial services such as "Campus
+Affairs Management Cloud" "Commercial Medical
+Cloud", electronic certificates of medical insurance
+and electronic social insurance cards to more than
+25 thousand schools, some 100 medical institutions
+and over ten million personal customers. Using the
+strategy of expanding domestic consumption as an
+opportunity, with a focus on the fields of travel,
+shopping, catering, entertainment, e-commerce,
+etc., the Bank continued to carry out series payment
+activities aimed to benefit the people, and expanded
+e-CNY application scenarios, contributing to quality
+improvement and expansion of consumption.
+In serving small and micro enterprises, the Bank
+actively implemented bailout policy and inclusive
+finance. The Bank rolled out the exclusive personal
+mobile banking version of Inclusive Finance for Small
+and Micro Enterprises and the inclusive finance zone
+on Enterprise Mobile Banking. By putting together
+urgent financial services such as online credit limit
+testing and speedy loan granting and adopting
+video interview, face recognition and other technical
+means, it improved the efficiency and risk control
+level of application, approval, contract signing, draw-
+down, payment and repayment procedures.
+payment, village affairs and business matchmaking,
+the Bank launched four types of agriculture-
+related services, namely, people's livelihood related
+finance, inclusive finance, government services
+related finance, and agricultural assistance finance,
+and developed new farm tools, new supermarkets
+and new platforms that are easy to operate for
+"Sannong" (agriculture, farmers and rural areas)
+customers and which they are willing to use. The
+Bank also upgraded the county edition of mobile
+banking to version 2.0. At the end of 2021,
+customers of the county version 2.0 of mobile
+banking reached 16.03 million. Moreover, the Bank
+continued to use ICBC Mall to assist Sannong. Rural
+revitalization related transaction volume of ICBC Mall
+recorded RMB2.76 billion.
+In serving the rural revitalization strategy, the
+Bank promoted common prosperity and interactive
+development of urban and rural areas. Adhering to
+going online, going digital and going ecological,
+the Bank established the new-type rural financial
+service system in which online and offline services
+are integrated and complement each other, and
+developed the "ICBC Xingnongtong" APP. Based on
+its core financial capabilities such as account, loan,
+Serving the Real Economy and Building an
+Ecological Bank
+to face" service at outlets to "screen to screen"
+interaction online. The scope of remote online
+video review business was expanded to include
+more frequently used services including debit card
+password changing, cancellation of loss reporting of
+debit cards, etc. Card-free and certificate-free service
+scenarios at outlets and medialess service scenarios
+of intelligent devices were enriched by launching
+the "Scan and take a queue number" function and
+the counter service evaluation function on mobile
+banking. The "ordering online and mailing offline"
+service of mobile banking covered ten scenarios
+including issuance of credit certification, printing of
+details of history, query of loan details, etc., and its
+replacement rate of outlet services exceeded 90%.
+Accelerating interconnection between domestic
+and overseas business and serving domestic and
+international circulations. Centering on mobile
+finance, corporate service and cross-border scenarios,
+the Bank worked faster to improve the quality and
+standard of overseas online financial services. Version
+6.0 of overseas personal mobile banking was fully
+upgraded at pilot institutions including ICBC (Asia),
+ICBC (Macau), Singapore Branch, and ICBC (Thai).
+Overseas corporate internet financial services were
+further improved, and the global version of corporate
+internet banking was continuously promoted at
+overseas institutions. New highlights such as overseas
+study remittance and payment were developed
+in cross-border business scenarios, the overseas
+study remittance product was launched in personal
+mobile banking, and the overseas services of ICBC
+e-Payment were promoted, making overseas mobile
+payment more convenient.
++
+Discussion and Analysis
+Annual Report 2021
+With the focus on high-quality development of
+operation and areas vital to market competition,
+the Bank assigned more human resources to
+strategic areas. The Bank deepened technological
+empowerment, moved ahead with the construction
+of retail and FinTech teams and improved operation
+through the transformation and upgrading of
+human resources. The Bank expanded frontline
+marketing service personnel to strongly support
+the competitiveness enhancement of outlets. In
+line with the trend of digital transformation, the
+Bank optimized institutional function setting and
+deepened online and offline integrated development.
+The Bank increased support for personnel in key
+counties and rural areas and promoted financial
+service resources to lower tiers.
+Discussion and Analysis
+4
++
+Human Resources Management
+Human Resources Management,
+Employees and Institutions
+intelligent services were provided, up 11% from last
+year. In the First Intelligent Service Robot Contest
+held by China Banking Association, the Bank was
+ranked No. 1 in intelligent audio robot and No. 2 in
+intelligent text robot.
+Discussion and Analysis
+51
+Annual Report 2021
+The intelligent transformation of customer services
+was accelerated. The Bank expanded the intelligent
+service entrances of ICBC intelligent robot "Gino
+(Gong Xiao Zhi)" to 96, including incoming and
+outgoing calls, audio + text, online + offline and
+inside + outside of the Bank. The accuracy of audio
+and text recognition was above 97%. 630 million
+Outlet Development
+experience monitoring and evaluation
+system was established. The Bank launched a
+special campaign to solve the hotspot problems
+complained by customers. The Bank established a
+system for "feedback of customers" and "voice
+of employees", set up a customer satisfaction
+monitoring system combining instant feedback and
+special survey, conducted experience monitoring
+in multiple dimensions and strove to enhance
+customer satisfaction. In 2021, the Bank's customer
+satisfaction stood at 86.8%, and 92.9% of problems
+reported via phone by customers were solved at first
+instance, ranking at the forefront among its peers.
+More services were supplied for the people's
+livelihood. Relying on 15.5 thousand "ICBC Sharing
+Stations", the Bank carried out more than 40
+thousand diverse public welfare activities with the
+theme of warm care in winter, volunteer service
+publicity, support for national college entrance
+exam and anti-fraud on the Double Ninth Festival
+etc., cumulatively serving more than 40 million
+person-times customers. It constantly enriched the
+connotation of public welfare service of "ICBC
+Sharing Stations" and cooperated with All-China
+Federation of Trade Unions to build "Trade Union's
+Service Stations for Outdoor Workers ICBC Sharing
+Stations".
+Outlet services were improved continuously. The
+Bank carried out the campaign of "Financial
+Standards for the Benefit of People and Enterprises",
+took a combination of measures to improve the
+service quality of outlets and endeavored to become
+a service benchmark of outlets. The Bank enriched
+barrier-free facilities, upgraded 4,691 outlets for the
+elderly, promoted the service functions of self-service
+devices for the elderly, and put in place ATMs with
+passbook function to meet the needs of the elderly
+to provide them with more convenient and intimate
+and faster services. In 2021, 110 outlets of the Bank
+were named 1,000 Best Role Model Units in China's
+banking industry.
+At the end of 2021, the Bank had 15,767 outlets,
+24,145 self-service banks, 79,793 intelligent
+devices, and 66,563 ATMs with trading volume of
+RMB5,312.6 billion.
++
+Continuing to enrich outlets' pan-finance services
+and functions. With a focus on reforms to streamline
+administration and delegate power, improve
+regulation, and upgrade services, the Bank promoted
+one-stop government services and added 3,020
+outlets that offer "outlet +" one-stop government
+services. The Bank led the industry in launching such
+functions as issuance of electronic social insurance
+cards, printing of credit reports and issuance of
+electronic medical insurance vouchers in intelligent
+devices. As a result, outlets' "finance + pan-finance"
+comprehensive service capability further improved.
+Accelerating digital transformation of outlets. The
+Bank extensively applied new technological means
+such as big data, Al, intelligent voice and RPA in the
+layout, location selection, systems & platforms, self-
+service devices, business operation, etc. of outlets,
+which further improved the resource utilization
+efficiency of outlets. It continued to promote the
+mode of operations services featuring convenient
+online acceptance, intensive and efficient handling
+and speedy delivery of services at outlets, and
+completed its promotion and application in the
+scenarios of the five major fields of products in kind,
+information, cash, account, and foreign exchange.
+In addition, the Bank continuously optimized
+the combined service process of intelligent teller
+machines and expanded "medialess" services at
+outlets to cover more than 150 high-frequency
+transactions including debit card deposit and draw-
+down, transfer & remittance, account information
+query, etc.
+Service Improvement
+Steadily promoting outlet optimization and
+adjustment. Throughout 2021, the Bank optimized
+the layout of 714 outlets, and renovated 1,528
+outlets. The Bank effectively increased service
+supply in counties by setting up 151 new outlets in
+counties, including 15 counties that had never had
+an ICBC outlet before. The Bank practiced the green
+financial development philosophy. It piloted "zero
+carbon outlets" in Guangdong, Tianjin, Guangxi,
+etc. and actively fulfilled its responsibilities as a large
+bank.
+4
+An
+Corporate banking
+12.7%
+50.7%
+Central China
+15.7
+68,065
+16.4
+2,713
+14.7
+5,186,815
+Bohai Rim
+3,786,925
+11.1
+11.9
+1,983
+16.7
+5,870,705
+Pearl River Delta
+61,639
+15.3
+2,537
+48,234
+23.5
+10.8
+20.8
+11.7
+4,100,318
+Overseas and other
+9.6
+41,900
+9.9
+1,639
+3.8
+3,453
+1,333,077
+20.2
+87,859
+22.2
+3,678
+12.9
+4,553,489
+Western China
+83,257
+Northeastern China
+8,248,981
+Yangtze River Delta
+4.6
+Discussion and Analysis
+53
+Annual Report 2021
+2.3%
+⚫ Others
+1.0%
+Non-banking business
+2.1%
+As at the end of 2021, the Bank had a total of
+16,590 institutions. Among them, there were
+16,169 domestic institutions and 421 overseas ones.
+Domestic institutions included the Head Office, 36
+tier-one branches and branches directly managed
+Emerging business
+6.5%
+Risk and compliance
+8.1%
+⚫ FinTech
+49.3%
+⚫ Female
+8.9%
+◆ Operation management
+management
+by the Head Office, 459 branches in capital cities
+and tier-two branches, 15,508 outlets, 32 Head
+Office-level profitability units along with their
+directly managed institutions and branches, and 133
+subsidiaries and their branches.
+GEOGRAPHIC DISTRIBUTION OF ASSETS, INSTITUTIONS AND EMPLOYEES
+Assets
+(in RMB
+19,812
+0.2
+33
+23.2
+8,145,032
+Head Office
+(%)
+employees
+(%)
+institutions
+(%)
+millions)
+Item
+employees
+Number of
+Percentage of
+Percentage of
+institutions
+Number of
+Percentage
+of assets
+3.3
+14.2
+2,737,742
+68
+Audit Committee of
+Risk Management Committee
+Board of Supervisors
+President
+Board of Directors
+Department
+Global Market
+Bank Card
+Department
+InDepartmanking
+Personal Banking
+Department
+Corporate Banking
+Department
+Business departments
+Senior Executive
+Vice Presidents
+The Bank's organizational structure of risk management comprises the Board of Directors and its special committees, the
+Board of Supervisors, the Senior Management and its special committees, the risk management departments, the internal
+audit departments, etc. The risk management organizational structure is illustrated below:
+Discussion and Analysis
+63
+Annual Report 2021
+78 Country Risk
+Enterprise risk management is a process to effectively identify, assess,
+measure, monitor, control or mitigate and report risks in order to ensure
+the realization of the Group's operating and strategic objectives by setting
+up effective and balanced risk governance structure, fostering robust and
+prudent risk culture, formulating unified risk management strategies and
+risk appetite, and implementing the risk limit and risk management policies.
+The principles of enterprise risk management of the Bank include full
+coverage, matching, independence, perspectiveness and effectiveness, etc.
+In 2021, the Bank adhered to the risk management path of "active
+prevention, smart control and comprehensive management", promoted
+the implementation of key measures for "management of personnel,
+assets, defense lines and bottom lines" and improved enterprise risk
+management results. The Bank developed and implemented a three-
+year plan for risk management, perfected the risk management system,
+reinforced three lines of defense for risk management, and carried out risk
+management responsibilities. The Bank strengthened risk appetite and limit
+management, intensified risk monitoring and early warning, and made
+risk prevention and control more proactive and foresighted. Relying on
+intelligent platforms such as ICBC e Shield, the Bank accelerated the digital
+and intelligent transformation of risk management. The Bank strengthened
+risk management in emerging fields, incorporated climate risk into the
+enterprise risk management system, established a climate risk governance
+framework, stepped up climate risk identification and management, and
+carried out climate risk stress testing.
+Enterprise Risk Management System
+78 Reputational Risk
+US Risk Committee
+76 Operational Risk
+of the Board of Directors
+Chief Risk Officer
+Senior management of subsidiaries
+Board of directors of subsidiaries
+Legal Affairs Department
+Office of Steering Group
+for Deepening Reform
+Financial Technology
+Department
+Executive Office
+Legal risk
+IT risk
+Strategic risk
+Reputational risk
+Operational risk, compliance risk Compliance Department
+Internal Control &
+Asset & Liability
+Management Department
+Credit and Investment
+Management Department
+Liquidity risk, interest rate risk
+in the banking book
+Credit risk
+First line of defense
+branches and subsidiaries
+Business departments of
+Management of Branches
+Risk Management
+Department
+Enterprise risk, market risk,
+country risk
+the Board of Directors
+Asset & Liability
+Management Committee
+74 Liquidity Risk
+71 Market Risk
+2,581.34
+125.05
+Insurance
+ICBC-AXA Assurance Co., Ltd.
+22.36
+399.90
+2,948.03
+180
+Leasing
+ICBC Financial Leasing Co., Ltd.
+27.94
+140.92
+176.27
+2
+ICBC Credit Suisse Asset Management Co., Ltd. Fund management
+Net profit
+Net assets
+Total assets
+paid-in capital
+Principal business
+Institution
+183.01
+72 Interest Rate Risk in the
+Banking Book
+16.07
+Financial asset
+64 Credit Risk
+63 Enterprise Risk Management
+System
+Discussion and Analysis
+RISK MANAGEMENT
+ICBC
+62
+customer expansion, project financing, product innovation,
+risk management, FinTech and staff exchange. At the
+end of 2021, Standard Bank recorded total assets of
+ZAR2,725,817 million and net assets of ZAR242,849
+million. It generated a net profit of ZAR28,059 million
+during the year.
+Standard Bank is the largest commercial bank in Africa. Its
+scope of business covers commercial banking, investment
+banking, life insurance business and other areas. The Bank
+holds 20.06% ordinary shares of Standard Bank. Based
+on mutual benefit and win-win cooperation, the two
+sides furthered their cooperation in equity cooperation,
+STANDARD BANK GROUP LIMITED
+Major Equity Participation Company
+8.92
+177.00
+187.91
+160
+Wealth management
+ICBC Wealth Management Co., Ltd.
+investment
+101.97
+401.23
+1,725.91
+270
+ICBC Financial Asset Investment Co., Ltd.
+Risk Management
+Committee
+Credit Risk
+Management Committee
+Risk management departments and internal control &
+compliance departments of branches and subsidiaries
+100.00
+18,624,308
+100.00
+20,667,245
+0.16
+29,614
+0.14
+29,551
+0.81
+149,926
+0.62
+128,983
+0.61
+114,438
+0.66
+134,895
+1.58
+293,978
+1.42
+293,429
+2.21
+According to the five-category classification, pass loans amounted to RMB19,961,778 million at the end of 2021,
+representing an increase of RMB2,043,348 million when compared with the end of the previous year and accounting for
+96.59% of total loans. Special mention loans stood at RMB412,038 million, representing an increase of RMB138 million, and
+accounting for 1.99% of the total, with a drop of 0.22 percentage points. NPLs amounted to RMB293,429 million, showing
+a decrease of RMB549 million, and NPL ratio was 1.42%, with a decrease of 0.16 percentage points.
+411,900
+DISTRIBUTION OF LOANS AND NPLS
+At 31 December 2021
+253,815
+59.6
+11,102,733
+2.09
+254,887
+59.0
+12,194,706
+Corporate loans
+(%)
+NPLs
+(%)
+Loan
+(%)
+NPLs
+(%)
+Loan
+Item
+NPL ratio
+Percentage
+NPL ratio
+Percentage
+In RMB millions, except for percentages
+At 31 December 2020
+1.99
+412,038
+96.21
+specialized" credit risk management of personal loans,
+continued to strengthen the application of "smart brain"
+to empower personal loan credit risk management,
+improved the comprehensive risk monitoring system of
+personal loans, enhanced the credit risk management
+capability of key business links, and stepped up efforts in
+the risk prevention and control of important risk points
+such as customer access and mortgage projects.
+According to the regulatory requirement on loan risk
+classification, the Bank implemented five-category
+classification management in relation to loan quality
+and classified loans into five categories: pass, special
+mention, substandard, doubtful and loss, based on the
+possibility of collecting the principal and interest of loans.
+In order to implement sophisticated management of credit
+asset quality and improve risk management, the Bank
+implemented the twelve-category internal classification
+system for corporate loans. The Bank applied five-category
+classification management to personal credit assets and
+ascertained the category of the loans based on the number
+of months in default, expected loss ratio, credit rating,
+collateral and other quantitative and qualitative factors.
+The Bank accurately grasped the layout and direction
+of investment and financing business and strengthened
+credit risk management. The Bank continued to strengthen
+the construction of credit policy system, optimized
+credit product rules, and continuously consolidated the
+foundation of non-standard agency investment policies.
+The Bank highlighted support for key industries, key
+regions, key customers, key projects and other "four
+key and one major" quality credit markets. The Bank
+actively supported the consumption upgrading service
+sectors such as "New infrastructure, New urbanization
+initiatives and Major projects", high-quality development
+of manufacturing industry, medical care, education and
+senior care. The Bank provided key support for strategic
+emerging industries, inclusive finance, green finance, rural
+revitalization, etc. The Bank actively implemented the
+development strategies of five key regions (namely, Beijing-
+Tianjin-Hebei region, Yangtze River Delta, Guangdong-
+Hong Kong-Macao Greater Bay Area, central China and
+Chengdu-Chongqing economic circle), kept improving
+differentiated region credit policies, and actively supported
+the financing needs of relevant industries boosting
+domestic and international circulations and improving
+the global supply chain in the Chinese market. The Bank
+constantly promoted "mobile, digital, intelligent and
+important affairs of credit risk management, and performs
+its duty in accordance with the Charters of the Credit
+Risk Management Committee. The credit and investment
+management departments at different levels undertake
+the responsibility of coordinating credit risk management
+at respective levels, and the business departments
+implement credit risk management policies and standards
+for their respective business areas in accordance with their
+functions.
+Discussion and Analysis
+ICBC
+64
+The Bank strictly adheres to regulatory requirements
+regarding credit risk management, diligently fulfills
+established strategies and objectives under the leadership
+of the Board of Directors and the Senior Management,
+and implements an independent, centralized and vertical
+credit risk management mode. The Board of Directors
+assumes the ultimate responsibility for the effectiveness
+of credit risk management. The Senior Management is
+responsible for executing the strategies, overall policy
+and system regarding credit risk management approved
+by the Board of Directors. The Credit Risk Management
+Committee of the Senior Management is the reviewing
+and decision-making organ of the Bank in respect of credit
+risk management, is responsible for reviewing material and
+Credit risk is the risk where loss is caused to the banking
+business when the borrower or counterparty fails to
+meet its contractual obligations. The Bank's credit risks
+mainly originate from loans, treasury operations (including
+deposits with banks and other financial institutions,
+placements with banks and other financial institutions,
+reverse repurchase agreements, corporate bonds and
+financial bonds investment), receivables and off-balance
+sheet credit business (including guarantees, commitments
+and financial derivatives trading).
+Credit Risk Management
+Credit Risk
+At the level of the Board of Directors
+At the level of Head Office
+At the level of branches
+Risks not mentioned above have been incorporated
+into the enterprise risk management system.
+-Third line of defense ―
+Primary reporting line
+Secondary reporting line
+Second line of defense
+Internal Audit Sub-bureau
+Internal Audit Bureau
+Operational Risk
+Management Committee
+Market Risk
+Management Committee
+The Bank imposed stringent control over risks in fields
+of local government debt, real estate, high polluting,
+etc.
+high energy-consuming industries,
+The Bank
+strictly implemented the national laws and regulations
+and regulatory policies on local debt management
+and financing platforms, continued with credit access
+management and monitoring, firmly held the bottom
+line for regional systemic risks, and actively studied and
+prevented operation risks in commercial construction.
+The Bank steadily cooperated with local governments
+and financing platform companies to resolve the risks in
+existing financing due, and devoted great efforts in debt
+risk mitigation and financing monitoring & analysis. The
+Bank strictly implemented the national policy guidance for
+real estate, steadily carried out the prudential management
+requirements for real estate, continued to implement limit
+management for commercial real estate investment and
+financing, paid close attention to the changes of real estate
+market risks in various regions, strictly guarded against
+the risks of real estate group customers engaging high-
+leverage expansion, and improved refined management.
+The Bank implemented the concept of green development,
+further strengthened the investment and financing
+control over the high polluting, high energy-consuming
+industries, and strengthened the adjustment of investment
+and financing structure and risk prevention & control in
+a forward-looking manner, to promote the "low-carbon
+transformation" of high-carbon industries.
+Credit Risk Analysis
+At the end of 2021, the Bank's maximum exposure to
+credit risk, without taking into account of any collateral
+and other credit enhancements, was RMB36,737,042
+million, an increase of RMB1,720,224 million compared
+with the end of the previous year. Please refer to "Note
+49.(a)(i) to the Consolidated Financial Statements:
+Maximum Exposure to Credit Risk Without Taking
+Into Account of Any Collateral and Other Credit
+Enhancements". For mitigated risk exposures of credit
+risk asset portfolio of the Bank, please refer to the section
+headed "Credit Risk" of the 2021 Capital Adequacy
+Ratio Report of Industrial and Commercial Bank of China
+Limited.
+Annual Report 2021
+(%)
+Amount
+17,918,430
+96.59
+19,961,778
+(%)
+Amount
+Percentage
+Percentage
+At 31 December 2020
+In RMB millions, except for percentages
+capital/
+At 31 December 2021
+Loss
+Doubtful
+Substandard
+NPLs
+Special mention
+Pass
+Item
+DISTRIBUTION OF LOANS BY FIVE-CATEGORY CLASSIFICATION
+Discussion and Analysis
+65
+Total
+2021
+In RMB100 millions
+Issued share
+118,979.38
+HKD44,188 million
+Commercial banking
+Industrial and Commercial Bank of China
+Net profit
+(in USD
+millions)
+millions)
+millions)
+paid-in capital
+Principal business
+Institution
+(in USD
+Net assets
+Total assets
+(in USD
+capital/
+Issued share
+2021
+At 31 December 2021
+Major Overseas Subsidiaries
+Major Controlled Subsidiaries and Equity Participating Company
+Discussion and Analysis
+ICBC
+18,416.05
+60
+726.58
+ICBC International Holdings Limited
+987.88
+13.87
+435.04
+4,421.83
+IDR3.71 trillion
+MYR833 million
+Commercial banking
+Industrial and Commercial Bank of China
+(Malaysia) Berhad
+Commercial banking
+PT. Bank ICBC Indonesia
+(Macau) Limited
+282.98
+3,720.41
+54,595.95
+MOP589 million
+Commercial banking
+Industrial and Commercial Bank of China
+2.74
+1,680.45
+7,954.56
+HKD5,963 million
+Investment banking
+(Asia) Limited
+100.0
+2,103,354
+11.1
+ICBC Wealth Management engages mainly in the issuance
+of wealth management products, wealth management
+advisory and consulting service and other activities
+approved by CBIRC.
+ICBC WEALTH MANAGEMENT
+Discussion and Analysis
+59
+Annual Report 2021
+ICBC Investment actively and steadily expanded and
+improved market-oriented debt-for-equity swap
+business, focused on supply-side structural reform,
+strengthened coordination with the Group, exerted
+strict customer access and diversified fund-raising
+channels. The "headquarters-to-headquarters"
+cooperation based on fund of funds was innovatively
+carried out to boost the clean energy development
+and continuously improve the quality and efficiency
+in serving the real economy. ICBC Investment actively
+played its part as a shareholder, and sent directors
+and supervisors to the shareholding subsidiaries in
+which it conducted debt-for-equity swap. It provided
+comprehensive financial services for debt-for-equity
+swap enterprises, and energetically supported the
+reform and development of these enterprises.
+ICBC Investment is one of the first pilot banks in China to
+conduct debt-for-equity swap. It holds the franchise license
+of non-bank financial institution and is mainly engaged in
+debt-for-equity swap and the supporting business.
+ICBC INVESTMENT
+It gave full play to the role of insurance as a
+social stabilizer, activated the contingency plan
+against natural disasters such as rainstorm in a
+timely manner, and opened a green channel for
+claim settlement, so as to ensure full and fast
+compensation. It adhered to the principle of
+"insurance for the benefit of people", boosted
+inclusive insurance projects, and actively participated
+in the "Huimin Insurance" business.
+It took a customer-centric approach to improve
+services. It greatly expanded the customer coverage
+of the service, continued to adequately settle
+customer claims, and optimized the claim settlement
+process, with the odds of small claims reaching
+99.34%. Operations were digitally transformed in a
+push for online underwriting, policy owner service
+and claim settlement for personal insurance.
++
+ICBC-AXA operated various insurance businesses such as
+life insurance, health insurance and accident insurance,
+as well as reinsurance of the aforesaid businesses,
+business permitted by national laws and regulations to use
+insurance funds and other businesses approved by CBIRC.
+ICBC-AXA
+Focusing on key industries and fields, it provided
+all-round investment and financing services for the
+real economy, and made every effort to build the
+characteristic brand of investment banking. The four
+business segments, i.e. investment banking, sales
+and trading, investment management and asset
+management, achieved smooth development. ICBC
+International was among the top-tier market players
+of Hong Kong market by IPO underwriting volume,
+and stayed ahead in the bond market for Chinese
+offshore investment-grade enterprises by overseas
+bond underwriting. It was still among the Class-B
+securities firms on the Hong Kong Stock Exchange. It
+made a breakthrough in double GP actively managed
+fund business. It was awarded "Best Bond Advisor in
+Hong Kong" by The Asset.
++
+ICBC International is a Hong Kong licensed financial service
+integrated platform wholly owned by the Bank, mainly
+providing various financial services such as corporate
+financing, investment management, sales transaction and
+asset management.
+ICBC INTERNATIONAL
+Regarding domestic comprehensive leasing
+business, it continuously stepped up marketing
+and business development efforts in the fields of
+"New infrastructure", "New infrastructure, New
+urbanization initiatives and Major projects", "New
+manufacturing, New services, New basic industries
+and High-tech industries", concretely promoted
+innovation and transformation, actively optimized
+asset structure, extensively carried out marketing
+interconnection between banks and companies,
+deeply tapped needs of key customers, strengthened
+business reserves and investment, and drove key
+strategic regional markets through key projects.
+It effectively consolidated its market position in terms
+of aviation business, deeply developed high-quality
+customers, and explored innovative business areas
+such as cargo aircraft leasing. It actively implemented
+the Belt and Road Initiative in terms of maritime
+business. It deepened strategic cooperation with
+key customers, boosted the transformation and
+upgrading of China's shipbuilding industry, and
+supported domestic shipyards to build high-tech and
+high value-added ships.
+Discussion and Analysis
++
++
+It fully accommodated the requirements of the new
+regulations on wealth management business, pushed
+forward the net-worth transformation of products,
+and continued to develop products and services. It
+was the first among peers to exceed RMB2 trillion in
+wealth management products, significantly increased
+the proportion of non-cash management and open
+net worth products, and provided customers with
+richer asset allocation choices. In 2021, it won more
+than 30 important awards in the industry such
+as the "Golden Bull Award for Banking Wealth
+Management Company" from China Securities
+Journal. It was ranked first among domestic wealth
+management companies on the list of IPE Top 500
+Global Asset Management Companies.
+It accelerated business transformation and
+innovation, continuously enhanced the adaptability
+and competitiveness of serving the high-quality
+development of the real economy, and shouldered
+its social responsibility. It innovated financial services
+for senior care, became the first batch of pilot
+institutions for wealth management business for
+senior care in China, and released ICBC Wealth
+Management Yi Xiang An Tai wealth management
+products for senior care and helped the construction
+of the national multi-level senior care system. It
+innovated green finance services, and was the
+first in the industry to issue "carbon neutrality"
+asset allocation index and green finance themed
+wealth management products. It innovated inclusive
+finance services, developed fixed-income products
+suitable for the risk-return appetite of county and
+rural residents, and expanded the coverage of
+rural wealth by financial services. It innovated and
+opened up financial services, steadily promoted the
+establishment of joint ventures, actively participated
+in the pilot business of "Cross-boundary Wealth
+Management Connect" in the Greater Bay Area,
+innovated and developed new wealth management
+products with the theme of "Southbound Connect"
+under new regulations, and contributed to the
+internationalization of RMB and the interconnection
+between Hong Kong and Chinese mainland.
+233,083
+4.7
+98,541
+Total
+Other assets
+Non-standard debt assets
+48.3
+1,016,593
+Bonds
+bonds under reverse repurchase agreements
+299.77
+1.7
+34.2
+718,591
+Percentage
+(%)
+Amount
+Placement with banks and other financial institutions and
+Cash, deposits and negotiable certificate of deposit
+Asset type
+In RMB millions, except for percentages
+DIRECT AND INDIRECT INVESTMENTS IN WEALTH MANAGEMENT PRODUCTS AS AT THE END OF 2021
+As at the end of 2021, the balance of ICBC Wealth
+Management's wealth management products was
+RMB2,021,804 million, an increase of RMB951,731
+million over the end of the previous year, all of which
+were net-worth products. By fundraising methods,
+the balance of public offering wealth management
+products was RMB1,975,907 million, an increase
+of RMB940,656 million, accounting for 97.73%;
+the balance of private offering wealth management
+products was RMB45,897 million, an increase of
+RMB11,075 million, accounting for 2.27%. By
+customer types, the balance of personal wealth
+management products was RMB1,714,603 million,
+an increase of RMB889,838 million, accounting
+for 84.81%. The balance of corporate wealth
+management products was RMB307,201 million,
+an increase of RMB61,893 million, accounting for
+15.19%.
+36,546
+2.29
+11.01
+Commercial banking
+269.41
+MXN1,597 million
+Commercial banking
+Industrial and Commercial Bank of China
+Mexico S.A.
+13.97
+291.67
+1,801.00
+CAD208 million
+Commercial banking
+Industrial and Commercial Bank of China
+(Canada)
+securities margin
+trading
+(20.61)
+80.76
+24,631.67
+USD50 million
+Broker dealer,
+Industrial and Commercial Bank of China
+Financial Services LLC
+14.92
+404.80
+2,991.49
+(0.56)
+34.16
+218.02
+2.39
+Commercial banking
+At 31 December 2021
+Major Domestic Subsidiaries
+Discussion and Analysis
+61
+Annual Report 2021
+(Argentina) S.A.
+82.17
+877.76
+4,767.40
+7.95
+99.11
+1,477.99
+USD120 million
+ARS28,415 million
+Commercial banking
+Industrial and Commercial Bank of China
+Commercial banking
+ICBC PERU BANK
+(2.17)
+35.20
+260.49
+BRL202 million
+Industrial and Commercial Bank of China
+(Brasil) S.A.
+975.56
+Commercial banking
+Industrial and Commercial Bank of China
+(USA) NA
+(7.58)
+687.53
+7,148.71
+EUR437 million
+Commercial banking
+Industrial and Commercial Bank of China
+(Europe) S.A.
+7.89
+192.38
+1,530.75
+NZD234 million
+Commercial banking
+Industrial and Commercial Bank of China
+(New Zealand) Limited
+18.80
+83.51
+599.72
+KZT8,933 million
+Commercial banking
+81.88
+1,114.66
+9,120.79
+THB20,132 million
+ICBC (London) PLC
+Commercial banking
+USD200 million
+1,432.36
+Commercial banking
+ICBC Austria Bank GmbH
+14.10
+125.03
+2,978.87
+TRY860 million
+Commercial banking
+ICBC Turkey Bank Anonim Şirketi
+13.49
+167.08
+Industrial and Commercial Bank of China
+(Thai) Public Company Limited
+Industrial and Commercial Bank of China
+(Almaty) Joint Stock Company
+1,252.37
+Commercial banking
+Bank ICBC (Joint stock company)
+98.50
+1,369.84
+26,268.36
+USD1,083 million
+Banking
+ICBC Standard Bank PLC
+15.35
+466.86
+RUB10,810 million
+ICBC
+Short-term corporate
+107,390
+Bohai Rim
+1.15
+31,540
+14.8
+2,746,019
+1.08
+33,860
+15.2
+3,134,781
+Pearl River Delta
+1.26
+45,304
+19.2
+3,582,682
+0.84
+35,149
+20.2
+4,163,732
+Yangtze River Delta
+2.80
+21,603
+3,371,325
+4.1
+16.3
+2.14
+47,788
+18.1
+3,369,916
+1.26
+47,031
+18.1
+3,746,867
+Western China
+1.38
+38,584
+15.0
+2,789,085
+1.28
+40,046
+15.2
+3,133,539
+Central China
+2.37
+71,763
+16.3
+3,030,552
+72,241
+1.42
+772,372
+21,668
+The Bank continued to propel the optimization and
+adjustment of the industry's credit structure and stepped
+up efforts to shore up the development of the real
+economy. Loans to transportation, storage and postal
+services increased by RMB348,830 million as compared
+with the end of the previous year, representing a growth
+rate of 14.1%, mainly due to active support for the
+liquidity needs of highway, railway, airport and berth
+projects and large transportation group companies.
+Loans to leasing and commercial services increased by
+RMB225,688 million, representing a growth rate of 15.7%,
+mainly for supporting the financing needs of developing
+projects for "New infrastructure, New urbanization.
+initiatives and Major projects", people's wellbeing, projects
+for strengthening areas of weaknesses in infrastructure,
+and of enterprise headquarters, parks and commercial
+complex management service customers. Loans to water,
+environment and public utility management grew by
+RMB216,051 million, representing a growth rate of 18.7%,
+2.51
+245,127
+100.0
+2.22
+5,495
+2.5
+247,866
+9,768,044
+2.22
+242,380
+100.0
+10,938,653
+Total
+1.80
+5,732
+2.9
+317,641
+Other
+14.00
+11,743
+0.9
+mainly for steadily satisfying the investment and financing
+needs arising from significant projects and projects for
+people's livelihood in the areas of urban infrastructure
+construction, ecological environment protection and
+public services. Manufacturing loans rose by RMB99,228
+million, an increase of 6.4%, mainly due to continuously
+increased support for manufacturing, faster credit granting
+structure adjustment and fast growth of loans to leading
+and backbone enterprises in manufacturing of electrical
+equipment, general equipment, food and medicine.
+2.74
+The Bank continued to strengthen risk management of
+financing in various industries, intensified the disposal
+of non-performing assets with RMB190.1 billion NPLs
+recovered or disposed accumulatively, and actively
+promoted the transformation of risk asset management.
+Except for the deterioration of loans to customers in
+some industries due to external factors such as COVID-19
+pandemic, the loan quality was generally stable.
+67
+3.8
+791,994
+Head Office
+(%)
+NPLs
+(%)
+Loan
+(%)
+NPLs
+(%)
+Loan
+Item
+NPL ratio
+Percentage
+NPL ratio
+Percentage
+At 31 December 2020
+In RMB millions, except for percentages
+At 31 December 2021
+DISTRIBUTION OF LOANS AND NPLS BY GEOGRAPHIC AREA
+Discussion and Analysis
+Annual Report 2021
+Northeastern China
+895,238
+4.3
+(100,447)
+Write-offs and
+(84)
+(71)
+(13)
+168,351
+67,614
+58,906
+41,831
+Charge/(reverse)
+38,853
+(35,319)
+(3,534)
+to stage 3
+(4,200)
+14,056
+(9,856)
+to stage 2
+(2,279)
+(15,581)
+17,860
+(100,447)
+to stage 1
+(551)
+transfer out
+As at the end of 2021, the allowance for impairment losses on loans stood at RMB603,983 million, of which RMB603,764
+million at amortised cost, and RMB219 million at fair value through other comprehensive income. Allowance to NPLs was
+205.84%, showing an increase of 25.16 percentage points over the end of last year; allowance to total loans ratio was
+2.92%, showing an increase of 0.07 percentage points.
+Note: Please see "Note 23. to the Consolidated Financial Statements: Loans and Advances to Customers" for details.
+31 December 2021
+219
+28
+(7)
+191
+603,764
+223,739
+(7)
+(3,460)
+(2,268)
+(564)
+110,649
+(628)
+269,376
+Balance at
+Other movements
+previously written off
+and advances
+9,020
+9,020
+Recoveries of loans
+(551)
+Transfer:
+1 January 2021
+861
+18,624,308
+1.42
+293,429
+100.0
+20,667,245
+Total
+0.60
+8,985
+8.0
+1,492,087
+0.90
+12,834
+6.9
+1,429,769
+Overseas and other
+3.38
+28,411
+4.5
+841,595
+3.42
+30,600
+100.0
+293,978
+1.58
+MOVEMENTS OF ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS
+650
+Total
+Stage 3
+Stage 2
+Stage 1
+211
+530,300
+217,446
+Total
+Stage 3
+customers measured at FVTOCI
+83,886
+impairment losses on loans and advances to
+223,703
+Balance at
+Stage 2
+Stage 1
+Item
+Movements of allowance for
+customers measured at amortised cost
+impairment losses on loans and advances to
+Movements of allowance for
+In RMB millions
+89,151
+11.08
+8,095
+0.7
+20,667,245
+Total
+1.89
+12,906
+3.7
+681,610
+1.90
+13,179
+3.3
+692,339
+Credit card overdrafts
+loans
+1.30
+6,760
+2.8
+521,638
+0.97
+6,811
+3.4
+702,441
+Personal business
+100.0
+consumption loans
+293,429
+18,624,308
+(%)
+Loan
+(%)
+NPLs
+(%)
+Loan
+Item
+NPL ratio
+Percentage
+NPL ratio
+Percentage
+At 31 December 2021
+In RMB millions, except for percentages
+At 31 December 2020
+DISTRIBUTION OF CORPORATE LOANS AND NON-PERFORMING CORPORATE LOANS OF DOMESTIC BRANCHES BY
+INDUSTRY OF LOAN CUSTOMERS
+Discussion and Analysis
+ICBC
+66
+Corporate NPLs were RMB254,887 million, showing an increase of RMB1,072 million when compared with the end of the
+previous year, and representing a NPL ratio of 2.09%, with a decrease of 0.20 percentage points. Personal NPLs amounted
+to RMB38,542 million, showing a decrease of RMB999 million, and represented a NPL ratio of 0.49%, with a decrease of
+0.07 percentage points.
+1.58
+293,978
+100.0
+1.42
+2.00
+3,668
+0.9
+2.2
+406,296
+2.6
+527,758
+Discounted bills
+corporate loans
+1.45
+122,922
+45.4
+8,459,521
+1.56
+147,497
+45.8
+9,456,964
+Medium to long-term
+loans
+4.95
+130,893
+14.2
+2,643,212
+3.92
+622
+0.15
+Personal loans
+7,944,781
+183,716
+1.65
+3,092
+0.9
+187,316
+Personal
+0.28
+16,207
+30.8
+5,728,315
+NPLs
+0.24
+30.8
+6,362,685
+Residential mortgages
+0.56
+39,541
+38.2
+7,115,279
+0.49
+38,542
+38.4
+15,460
+13.2
+(%)
+2,816,789
+1.77
+5,538
+2.9
+312,849
+Construction
+13.78
+60,272
+4.5
+437,283
+8.31
+38,558
+4.2
+464,169
+Wholesale and retail
+2.32
+16,238
+7.2
+701,094
+4.79
+33,820
+6.5
+260,667
+705,714
+2.7
+3.31
+73,063
+Lodging and catering
+4.28
+7,593
+1.8
+177,408
+1.71
+3,470
+1.9
+203,130
+Mining
+culture and sanitation
+2.23
+5,462
+2.5
+245,378
+2.42
+6,947
+2.6
+287,601
+Science, education,
+8,636
+Real estate
+gas and water
+of electricity, heat,
+15.1
+1,654,610
+Manufacturing
+commercial services
+2.17
+31,242
+14.8
+1,441,688
+2.03
+33,824
+15.2
+1,667,376
+Leasing and
+and postal services
+0.84
+20,683
+25.2
+2,467,959
+0.88
+24,762
+25.8
+61,602
+3.72
+1,555,382
+15.9
+0.40
+3,977
+10.2
+995,232
+0.81
+8,653
+9.7
+1,065,459
+Production and supply
+management
+Transportation, storage
+and public utility
+8,425
+11.8
+1,154,201
+0.83
+11,379
+12.5
+1,370,252
+Water, environment
+4.20
+65,361
+0.73
+EUR200 million
+USD369 million
+6,988,877
+20,667,245
+Management of Interest Rate Risk in the
+Banking Book
+Annual Report 2021
+mainly caused by the increase in repriced or matured
+loans and advances to customers within one year. It had a
+positive cumulative interest rate sensitivity exposure above
+one year of RMB1,018,814 million, representing a decrease
+of RMB305,399 million, mainly resulted from the increase
+in repriced or matured due to customers above one year.
+As at the end of 2021, the Bank had a positive cumulative
+interest rate sensitivity exposure within one year of
+RMB1,943,618 million, representing an increase of
+RMB836,372 million from the end of the previous year,
+Interest Rate Exposure Analysis
+Note: Please refer to "Note 49.(d) to the Consolidated Financial Statements: Interest Rate Risk in the Banking Book".
+51,624
+25,728
+1,694
+(1,029)
+73
+(1,661)
+(47,643)
+1,029
+142
+958
+(140)
+(958)
+6,126
+(1,551)
+(5,873)
+1,551
+(25,728)
+Discussion and Analysis
+INTEREST RATE RISK EXPOSURE
+In RMB millions
+ICBC
+74
+In 2021, the Bank adhered to a steady and prudent
+liquidity management strategy, and the Group's liquidity
+was stable. The Bank intensified the monitoring of funds
+and maintained a proper and sufficient liquidity reserve.
+The Bank optimized and upgraded the liquidity risk
+management mechanism and system, and continuously
+enhanced the automation and intelligence level of liquidity
+risk monitoring, measurement and control. The Bank
+strengthened on- and off-balance sheet liquidity risk
+management in local and foreign currencies in domestic
+and overseas institutions, optimized the multi-level and
+multi-dimensional liquidity monitoring and early warning
+system, and further enhanced the Group's liquidity risk
+prevention and emergency response capabilities.
+Objective of liquidity risk management: By establishing
+and improving the liquidity risk management system,
+the Bank aims at realizing effective identification,
+measurement, monitoring and control of the liquidity
+risk at the Group level, the Bank, the affiliates, the
+branches and the business lines, and ensuring the liquidity
+demand is satisfied at a reasonable cost in time under
+the normal business scenario and the stress scenario. The
+Bank's liquidity risk management strategy and policy are
+formulated in accordance with the liquidity risk appetite,
+and they cover all businesses on- and off-balance sheet,
+all domestic and overseas business departments, branches
+and affiliates that are likely to have a material impact on
+the liquidity risk, and contain the liquidity risk management
+under normal and stressed scenarios. The liquidity risk
+management strategy specifies the overall objective and
+mode of liquidity risk management and lists major policies
+and procedures. The policies for liquidity risk management
+are formulated in accordance with external and macro
+operating environments and business development of the
+Bank, with a view to striking an effective balance among
+security, liquidity and profitability. The Bank conducts stress
+testing quarterly or by subject by fully considering various
+macro and micro factors that may affect the liquidity of
+the Bank, changes in the external operating environment,
+regulatory requirements, and business characteristics and
+complexity of the Bank.
+2,884,728
+3,320,310
+The Bank's liquidity risk management system conforms
+to the overall development strategy and the overall risk
+management system, and is commensurate with the
+business scale, business nature, complexity and other
+aspects of the Bank. The system includes the following
+fundamental elements: effective governance structure
+for liquidity risk management; sound strategy, policy
+and procedures for liquidity risk management; effective
+identification, measurement, monitoring and control for
+liquidity risk and a complete management information
+system. In respect of liquidity risk management, the Bank's
+governance structure embodies the decision-making
+system comprising the Board of Directors and its special
+committees as well as the Asset and Liability Management
+Committee and the Risk Management Committee of
+the Head Office; the supervision system comprising the
+Board of Supervisors, the Internal Audit Bureau and the
+Internal Control and Compliance Department of the
+Head Office; and the execution system comprising the
+Asset and Liability Management Department, leading
+management departments of on- and off-balance sheet
+businesses, the information technology departments,
+operation management departments of the Head Office
+and relevant departments of branches. Each of these
+systems performs the corresponding functions of decision
+making, supervision and execution according to division of
+responsibilities.
+Liquidity Risk Management
+Liquidity risk is the risk that the Bank is unable to raise
+funds on a timely basis at a reasonable cost to settle
+liabilities as they fall due, or perform other payment
+obligations and satisfy other funding demands arising from
+the normal course of business. Liquidity risk may arise from
+the following events or factors: material adverse changes
+in market liquidity, withdrawal of customers' deposits,
+drawing of loans by customers, overdue payment of
+debtors, mismatch between assets and liabilities, difficulties
+in assets realization, operating losses and risk associated
+with its affiliates.
+Liquidity Risk
+Note: Please refer to "Note 49.(d) to the Consolidated Financial Statements: Interest Rate Risk in the Banking Book".
+(1,560,515)
+7,486,102
+(2,301,496)
+Over 5 years
+1 to 5 years
+3 months to
+1 year
+8,383,705
+3 months
+(6,440,087)
+(6,378,856)
+Less than
+At 31 December 2020
+At 31 December 2021
+43,662
+Discussion and Analysis
+27,350
+(27,350)
+72
+The objective of management of interest rate risk in the
+banking book: The Bank aims at maximizing the risk-
+adjusted net interest income within the tolerable level
+of interest rate risk under its risk management and risk
+appetite. The Bank formulated strategies and clarified
+objectives and modes for managing interest rate risk
+in the banking book based on risk appetite, risk status,
+macroeconomic and market changes. Based on the pre-
+judging of the interest rate trend and measurement
+results of the changes in overall profit and economic
+value, the Bank formulated and put into practice relevant
+management policies, and adopted a coordinated
+approach to using interest rate risk control tools to
+mitigate and manage risks, so as to ensure the Bank's
+actual interest rate risks conform to its bearing capability
+and willingness. On the basis of management strategies
+and objectives, the Bank developed policies and made clear
+the modes and instruments for managing interest rate risk
+in the banking book. By developing and modifying such
+methods as on-balance sheet adjustment and off-balance
+sheet hedging to manage interest rate risk, adeptly using
+quantity, pricing and derivative instruments regarding
+assets and liabilities, and applying limit management
+system, business plan, performance assessment and capital
+evaluation in all areas for interest rate risk management
+and assessment, the Bank achieved effective control of
+interest rate risk at the business lines, the branches, the
+affiliates and the products and portfolios easily affected by
+interest rate risk.
+the ultimate and executive responsibilities, respectively,
+for managing interest rate risk in the banking book. The
+Asset & Liability Management Department of the Head
+Office takes the leading role in managing interest rate
+risk in the banking book, and other departments and
+institutions play their roles in implementing policies and
+standards concerning interest rate risk in the banking
+book. The Internal Audit Bureau and the Internal Control &
+Compliance Department of the Head Office are responsible
+for reviewing and evaluating duties in respective of interest
+rate risk in the banking book.
+The Bank's management system for interest rate risk in
+the banking book conforms to the system importance, risk
+status and business complexity, and fits the Bank's overall
+development strategy and the enterprise risk management
+system. The system mainly consists of the following
+elements: an effective risk governance structure; sound
+risk management strategies, policies and procedures;
+effective risk identification, measurement, monitoring,
+control and mitigation that cover all areas; a complete
+internal control and review mechanism; a fully-built risk
+management system; and adequate information disclosure
+and reporting. The Bank strictly complied with regulatory
+requirements for interest rate risk in the banking book,
+effectively managed interest rate risk in the banking book
+at the Bank and consolidated level, and developed a sound
+governance structure for interest rate risk management in
+the banking book that is fully built and well-structured,
+with clearly defined rights and responsibilities. The Board
+of Directors and the Senior Management are vested with
+Interest Rate Risk in the Banking Book
+Interest rate risk in the banking book is defined as the
+risk of loss in the economic value and overall profit of the
+banking book arising from adverse movements in interest
+rate and maturity structure, etc.
+Please refer to the section headed "Market Risk" of the
+2021 Capital Adequacy Ratio Report of Industrial and
+Commercial Bank of China Limited issued by the Bank for
+further information on market risk capital measurement.
+Please refer to "Note 49. (c)(ii) to the Consolidated
+Financial Statements: Currency Risk" for the exchange rate
+sensitivity analysis.
+31,242
+204,300
+ICBC
+26,484
+Total foreign exchange exposure, net
+exchange items, net
+(198,474)
+(43,435)
+(276,298)
+Exposure of off-balance sheet foreign
+exchange items, net
+equivalent
+61,593
+RMB
+402,774
+168,475
+Discussion and Analysis
+In line with the principles of comprehensiveness, prudence
+and foresight, the Bank's stress testing on interest rate
+risk in the banking book adopted the interest rate risk
+exposure measurement approach and standardized
+duration approach to measure the effect of interest rate
+changes under different stress scenarios on the overall
+profit and economic value. Based on the domestic and
+overseas regulatory requirements, the bank-wide asset and
+liability business structure, operation and management as
+well as risk appetite, the Bank set stress testing scenarios
+for interest rate risk in the banking book by taking into
+account the current interest rate level, historical changes
+and trends, total assets and liabilities and their term
+characteristics, business development strategies, customer
+behaviors and other factors, and conducted stress testing
+quarterly.
+In 2021, the Bank implemented the new development
+concept, improved the combined regulation mechanism
+for whole process management, all-factor regulation
+and full-lifecycle coverage of interest rate risk, built an
+intelligent interest rate risk monitoring, early warning and
+business control platform, improved the ability to respond
+quickly and actively to complex market environment,
+equity
+income
+Effect on
+net interest
+Effect on
+equity
+income
+net interest
+Effect on
+-100 basis points
+Effect on
++100 basis points
+In RMB millions
+Total
+Other
+HKD
+USD
+Currency
+RMB
+Supposing that there is parallel shift of overall market
+interest rates, and taking no account of possible risk
+management actions taken by the management to mitigate
+the interest rate risk, the analysis on interest rate sensitivity
+of the Bank categorized by major currencies at the end of
+2021 is shown in the following table:
+Interest Rate Sensitivity Analysis
+Analysis on Interest Rate Risk in the
+Banking Book
+and continuously deepened the new pattern of cross-
+cyclical stable interest rate risk management. The Bank
+strengthened the research and anticipation of interest
+rate risk strategy in a forward-looking and active manner,
+made combined use of asset and liability amount, price
+and derivative tools to accurately adjust the allocation
+structure of the Group's asset and liability interest rate
+portfolio, effectively resisted the impact of global economic
+and financial operation and internal and external risk
+challenges, and realized the balanced growth of current
+income and long-term value.
+(39,969)
+69,919
+Liquidity Risk Analysis
+At the end of 2021, RMB liquidity ratio and foreign currency liquidity ratio of the Bank were 41.5% and 88.9% respectively,
+both meeting the regulatory requirements. Loan-to-deposit ratio was 77.3%.
+Legal risk is the risk of incurring legal sanctions, regulatory
+penalties, financial losses, reputational losses or other
+negative consequences that arises out of or in connection
+with the failure of the Bank to comply with relevant laws,
+regulations, administrative rules, regulatory provisions or
+requirements of other relevant rules during the Bank's
+operation; the unfavorable legal defects that exist in
+products, services or information provided to clients,
+transactions engaged in, and contracts, agreements or
+Legal Risk
+In 2021, the Bank continued to reinforce operational
+risk management in line with regulatory focuses and
+operational risk trends. It optimized the risk limit
+management mechanism, and effectively transmitted
+the Group's operational risk management appetite. The
+Bank formulated and issued 2021-2023 Development
+Plan for the Internal Control System, and kept perfecting
+internal control mechanism with all-round coverage,
+whole-process control and all-employee participation. The
+operational risk and control self-assessment of special lines
+under "regulatory red line" was carried out. In view of
+serious risks, the Bank promoted optimization of policies,
+processes, systems and mechanisms. The Bank carried out
+risk governance in key business areas, strengthened case
+warning education, and continuously tightened employee
+behavior control. Moreover, the operational risk application
+and management system was optimized, to continuously
+enhance effective risk data aggregation and risk reporting
+capabilities. During the reporting period, the operational
+risk management system of the Bank operated smoothly,
+and the operational risk was controllable on the whole.
+risk across credit and market risks. The Internal Audit
+Department performs the functions as the third line of
+defense and assumes the responsibility for supervision,
+which is responsible for supervising the effectiveness of
+operational risk management.
+The Bank strictly complies with regulatory requirements
+on operational risk management. The Board of Directors,
+the Board of Supervisors, the Senior Management and its
+Operational Risk Management Committee are respectively
+responsible for decision-making, supervision and
+execution with respect to operational risk management,
+and relevant departments act as the "three lines of
+defense" for operational risk management pursuant to
+their management functions, thus forming an operational
+risk management system with close connection and
+mutual checks and balances. Institutions and departments
+function as the first line of defense, which assume
+the direct responsibility for respective operational risk
+management. Classified management departments such
+as Internal Control & Compliance, Legal Affairs, Security,
+Financial Technology, Finance & Accounting, Operation
+Management and Human Resources as well as cross-
+risk management departments including Credit and
+Investment Management and Risk Management jointly
+perform the functions as the second line of defense, which
+are respectively responsible for the lead management of
+operational risk, the classified management of certain type
+of operational risk and the management of operational
+Operational risk is defined as the risk of loss resulting from
+insufficient or problematic internal processes, employees
+and IT systems or from external events, including legal
+risk, but excluding strategic and reputational risk. There
+are seven major types of operational risks faced by the
+Bank, including internal fraud, external fraud, employment
+system and workplace safety, customers, products and
+business activities, damage to physical assets, IT system,
+execution and delivery and process management. Among
+these, external fraud, execution, delivery and process
+management constitute major sources of operational risk
+losses of the Bank.
+Operational Risk Management
+Operational Risk
+Note: Please refer to "Note 49. (b) to the Consolidated Financial Statements: Liquidity Risk".
+76
+(14,309,956)
+(14,262,606)
+At 31 December 2021
+Total
+years
+Undated
+14,692,050 3,190,277 3,275,258
+13,324,640 3,351,427 2,909,515
+981,145
+(563,541)
+(209,780)
+335,580
+538,067
+At 31 December 2020
+ICBC
+Discussion and Analysis
+other documents executed by the Bank; legal disputes
+(litigation or arbitration proceedings) between the Bank
+and its clients, counterparties and stakeholders; important
+changes in relevant laws and regulations, administrative
+rules, regulatory provisions and other relevant rules;
+and other relevant legal events that occur internally and
+externally.
+ICBC
+78
+In 2021, facing the increasingly complicated, severe and
+uncertain external environment, the Bank strictly abode
+by regulatory requirements and, with consideration of its
+business development needs, continued to strengthen
+country risk management. The Bank closely observed
+changes in country risk exposures, constantly tracked,
+monitored and reported country risk, and timely updated
+and adjusted the country risk rating and limits. It continued
+to strengthen early warning mechanism for country risk,
+proactively conducted stress testing on country risk and
+reasonably and effectively controlled country risk while
+steadily promoting internationalization.
+The Bank strictly observes regulatory requirements on
+country risk management. The Board of Directors assumes
+the ultimate responsibility for the effectiveness of country
+risk management. The Senior Management is responsible
+for executing the country risk management policies
+approved by the Board of Directors. The Risk Management
+Committee of the Head Office is responsible for reviewing
+matters regarding country risk management. The Bank
+manages and controls country risk with a series of tools,
+including country risk assessment and rating, country risk
+limit, country risk exposure calculation and monitoring and
+stress testing. The Bank reviews the country risk rating and
+limits at least once every year.
+Country risk is the risk incurred to a bank arising from
+the inability or refusal by the borrower or debtor to repay
+bank debt, losses suffered by the Bank or its commercial
+presence in such country or region and other losses due
+to economic, political and social changes and events
+in a country or a region. Country risk may be triggered
+by deterioration of economic conditions, political and
+social turmoil, asset nationalization or expropriation,
+government's refusal to pay external debt, foreign
+exchange control or currency depreciation in a country or a
+region.
+Country Risk
+actively responded to social concerns, and organized and
+promoted influential brand communication activities, to
+enhance the Bank's brand image. During the reporting
+period, the reputational risk of the Bank was stable and
+within a controllable range.
+In 2021, the Bank kept improving the structure of
+reputational risk management system, to optimize relevant
+working mechanism and enhance reputational risk
+management. The Bank revised and issued the Measures
+for Reputational Risk Management of ICBC (Version 2021)
+and further improved the construction of the whole-
+process reputational risk management system across
+the Group. The Bank raised the efficiency of "dual-line
+management" (speciality and local) and prevented hidden
+reputational risks at the source. In addition, the Bank
+The Board of Directors is responsible for reviewing and
+finalizing bank-wide policies concerning reputational risk
+management that are in line with the strategic objective of
+the Bank, establishing a bank-wide system of reputational
+risk management, monitoring the overall status and
+effectiveness of reputational risk management across
+the Bank and assuming the ultimate responsibility for
+reputational risk management. The Senior Management
+is responsible for leading reputational risk management
+of the Bank, implementing the strategies and policies
+established by the Board of Directors, reviewing and
+finalizing the rules, measures and operating procedures
+for reputational risk management, preparing plans for
+responding to and coping with extraordinarily major
+reputational risk events and ensuring the proper and
+effective operation of the reputational risk management
+system. The Bank has established a special reputational
+risk management team to take charge of the daily
+management of reputational risk.
+Reputational risk is defined as the risk of negative
+comments on the Bank from stakeholders, the public
+or the media as a result of the behaviors of the Bank or
+practitioners or external events, thereby damaging brand
+value, detrimental to normal operation, and even affecting
+market and social stability. Reputational risk may arise
+in any part of the Bank's operation and management,
+and usually co-exists and correlates with credit risk,
+market risk, operational risk and liquidity risk. Good
+reputation is central to the operation and management of
+a commercial bank. The Bank highly values its reputation
+and has incorporated reputational risk management in the
+corporate governance and enterprise risk management
+system to prevent reputational risk.
+Reputational Risk
+Discussion and Analysis
+77
+Annual Report 2021
+measurement.
+Please refer to the section headed "Operational Risk"
+of the 2021 Capital Adequacy Ratio Report of Industrial
+and Commercial Bank of China Limited issued by the
+Bank for further information on operational risk capital
+In strict compliance with anti-money laundering ("AML")
+laws and regulations of China and host countries (regions)
+of overseas institutions, the Bank sincerely fulfilled the
+legal obligations and social responsibilities concerning
+AML. The Bank actively adapted to AML changes in the
+new era, established the global, comprehensive and brand-
+new money laundering risk management concept involving
+all personnel, spanning all processes and covering all
+risk exposures, accommodated to "cross-border, cross-
+industrial and cross-sector" development requirements,
+practiced the management principle of "active prevention,
+smart control and comprehensive management", and
+coordinated it efforts to strengthen Group-wide money
+laundering risk management. The Bank continuously
+improved the Group's AML governance system, constantly
+promoted the comprehensive management regarding
+customer identification, implemented new regulations
+on money laundering risk assessment, created a digital
+AML ecosystem, ramped up efforts in overseas AML
+infrastructure, etc. The quality and efficiency of money
+laundering risk management has been further improved.
+Anti-Money Laundering
+Bank ameliorated the function design and management
+mechanic for the electronic signing system, to strengthen
+its strict control of seal use in business contracts during
+the whole process, and effectively prevent and control
+operational risk, legal risk and reputational risk caused
+by misuse of contract seal. It reinforced authorization
+management, related party management, trademark
+management and intellectual property protection, and
+made efforts to effectively institutionalize risk management
+and control, and refine the structure of the system.
+The Bank devoted great energy to strongly deal with
+lawsuit cases to protect the Bank's rights and interests
+in accordance with law and avoid and reduce risk losses.
+In addition to the active assistance in online judicial
+inquiry and enforcement, the Bank played a positive role
+in improving the efficiency of law enforcement and case
+handling by competent authorities and building a social
+credibility system.
+In 2021, the Bank continued to strengthen legal risk
+management, by improving the risk prevention and control
+capacity in legal risk management, ensuring the legal and
+compliant operation, healthy business development and
+overall business stability of the Group. In accordance with
+new laws and regulations such as the Personal Information
+Protection Law, its business rules and relevant agreements
+were continuously improved, and legal risk prevention and
+control in key areas and links was further pushed forward
+in line with new requirements of financial regulators.
+The Bank also conducted ongoing monitoring of legal
+risks and improved both the vertical interconnection and
+horizontal coordination mechanism between the Head
+Office and branches. By systematically embedding legal risk
+prevention and control into business negotiations, product
+design, contract signing and other links, the Bank made
+risk prevention and control more prospective, proactive
+and targeted. It improved the cross-border coordination
+and management for legal work and strengthened the
+legal risk management of overseas institutions, properly
+responding to cross-border legal issues emerging in the
+development of international operations. Moreover, the
+Based on the objective to ensure legal and compliant
+operation, the Bank always attaches great importance
+to establishing a sound legal risk management system,
+forming a full-process legal risk prevention and control
+mechanism to support and secure business innovation and
+market competition, and to prevent and eliminate various
+potential or practical legal risks. The Board of Directors
+is responsible for reviewing and determining the strategy
+and policy relating to legal risk management, and assumes
+the ultimate responsibility of legal risk management.
+The Senior Management is responsible for executing the
+strategy and policy relating to legal risk management,
+examining and approving relevant important affairs.
+The Legal Affairs Department of the Head Office is in
+charge of legal risk management across the Group, with
+relevant business departments providing related support
+and assistance on legal risk prevention and control. The
+affiliates, domestic and overseas branches undertake the
+responsibility of legal risk management of their respective
+institutions.
+(377,347)
+The Bank assesses liquidity risk status by comprehensive use of a variety of methods and tools such as liquidity indicator
+analysis and liquidity exposure analysis.
+(415,735)
+years
+88.9
+>=25.0
+Foreign currency
+RMB and foreign
+currency
+43.0
+43.2
+41.5
+>=25.0
+RMB
+2019
+91.4
+31 December
+2021
+31 December
+Regulatory
+criteria
+At
+At
+At
+Loan-to-deposit ratio (%)
+Liquidity ratio (%)
+Item
+31 December
+2020
+85.9
+77.3
+72.8
+1 year
+months
+1 month
+demand
+Over 5
+1 to 5
+1 to 3 3 months to
+Less than
+on
+In RMB millions
+repayable
+Overdue/
+LIQUIDITY EXPOSURE ANALYSIS
+Discussion and Analysis
+75
+Annual Report 2021
+of Liquidity Coverage Ratio of Commercial Banks, please
+refer to the section headed "Unaudited Supplementary
+Information to the Consolidated Financial Statements".
+As at the end of 2021, the liquidity exposure for less
+than 1 month turned negative from positive from the end
+of last year, mainly due to the increase of matured due
+to customers within corresponding term. The negative
+liquidity exposure for 1 to 3 months expanded, mainly
+due to the increase of matured due to customers within
+corresponding term. The negative liquidity exposure for
+3 months to 1 year decreased slightly, mainly due to the
+increase of matured loans and advances to customers with
+corresponding term. The positive liquidity exposure for 1
+to 5 years decreased slightly mainly due to the increase
+of matured due to customers within corresponding
+term. The positive liquidity exposure for the category
+of over 5 years expanded, which was mainly due to the
+increase in matured loans and advances to customers and
+bond investments within corresponding term. Deposits
+maintained steady growth with a high deposition rate,
+and at the same time the Bank made major investment in
+highly liquid bond assets, and possessed sufficient liquidity
+reserves. Therefore, the overall liquidity of the Bank was
+maintained at a safe level.
+The daily average liquidity coverage ratio for the fourth
+quarter of 2021 was 112.20%, 0.96 percentage points
+higher than the previous quarter, mainly because of the
+continuous growth of qualified high-quality liquid assets.
+High-quality liquid assets cover cash, available central bank
+reserve under stress and primary and secondary bond
+assets that can be included in the liquidity coverage ratio
+under the regulatory requirements. For the quantitative
+information for liquidity coverage ratio based on the
+Administrative Measures for the Information Disclosure
+Net stable funding ratio aims to ensure commercial banks
+have sufficient stable sources of funding to meet the needs
+for stable funding of assets and off-balance sheet risk
+exposures. The net stable funding ratio is the ratio of the
+available stable funding to the required stable funding. As
+at the end of the fourth quarter of 2021, the net stable
+funding ratio was 126.20%, 1.98 percentage points lower
+than that at the end of the previous quarter, mainly due
+to the rapid growth of stable funds required. For the
+quantitative information for net stable funding ratio in
+accordance with Disclosure Rules on Net Stable Funding
+Ratio of Commercial Banks, please refer to the section
+headed "Unaudited Supplementary Information to the
+Consolidated Financial Statements".
+Note: The regulatory indicators in the table are calculated in accordance with related regulatory requirements, definitions and accounting
+standards applicable to the current period. The comparative figures are not adjusted or restated.
+71.6
+(89,448)
+444,773
+(30,351)
+equivalent
+267,507
+1.23
+254,901
+0.11
+21,257
+0.09
+19,153
+0.39
+72,467
+1.44
+0.45
+0.40
+74,820
+0.34
+70,057
+0.54
+98,963
+0.35
+72,444
+loans
+93,247
+Note: Loans and advances to customers are deemed overdue when either the principal or interest is overdue. For loans and advances to
+customers repayable by installments, the total amount of loans is deemed overdue if part of the installments is overdue.
+Overdue loans stood at RMB254,901 million, representing a decrease of RMB12,606 million from the end of the previous
+year. Among which, loans overdue for over 3 months amounted to RMB182,457 million, representing an increase of
+RMB13,913 million.
+RESCHEDULED LOANS
+41.2
+26.1
+36.4
+20.1
+31 December
+2019
+1.5
+1.7
+Exposure of on-balance sheet foreign
+31 December
+2020
+2021
+31 December
+At
+At
+At
+In percentages
+Doubtful
+Substandard
+Special mention
+Pass
+Item
+LOAN MIGRATION RATIO
+Rescheduled loans and advances amounted to RMB19,134 million, representing an increase of RMB7,174 million as
+compared to the end of the previous year. Rescheduled loans and advances overdue for over 3 months amounted to
+RMB2,301 million, representing an increase of RMB246 million.
+Amount
+loans
+Amount
+% of total
+1,401,565
+8.3
+1,720,583
+Pledged loans
+46.8
+8,703,068
+46.0
+9,497,898
+Loans secured by mortgages
+(%)
+Amount
+(%)
+Amount
+Item
+Percentage
+Percentage
+At 31 December 2021
+At 31 December 2020
+In RMB millions, except for percentages
+Discussion and Analysis
+DISTRIBUTION OF LOANS BY COLLATERAL
+7.5
+60.9
+Guaranteed loans
+11.9
+% of total
+At 31 December 2020
+At 31 December 2021
+In RMB millions, except for percentages
+Total
+Over 3 years
+1 to 3 years
+3 months to 1 year
+Less than 3 months
+Overdue periods
+OVERDUE LOANS
+100.0
+18,624,308
+100.0
+33.6
+6,259,230
+33.8
+Total
+Unsecured loans
+12.1
+2,260,445
+2,459,887
+36.0
+1.6
+19.2
+70
+For credit risk capital measurement, please refer to the section headed "Credit Risk" of the 2021 Capital Adequacy Ratio
+Report of Industrial and Commercial Bank of China Limited.
+2.7
+554,249
+0.2
+34,468
+0.2
+36,781
+0.2
+ICBC
+40,095
+Borrower I
+Borrower J
+Total
+Borrower H
+14.3
+42,375
+Transportation, storage and postal services
+Borrower G
+0.2
+42,660
+Transportation, storage and postal services
+Finance
+Finance
+Finance
+Borrower F
+Discussion and Analysis
+Market risk is defined as the risk of loss to the Bank's
+on- and off-balance sheet activities caused by adverse
+movements in market rates (including interest rates,
+exchange rates, stock prices and commodity prices). The
+Bank is primarily exposed to interest rate risk and currency
+risk (including gold). Market risk management is the
+process of identifying, measuring, monitoring, controlling
+and reporting market risk. The objective of market risk
+management is to control market risk exposures within a
+tolerable level and maximize risk-adjusted return according
+to the Bank's risk appetite.
+RMB
+Item
+USD
+USD
+At 31 December 2020
+In RMB (USD) millions
+At 31 December 2021
+FOREIGN EXCHANGE EXPOSURE
+Discussion and Analysis
+Market Risk
+71
+In 2021, the Bank closely watched the changes in external
+environment and market conditions, actively took a
+combination of measures such as limit management
+and hedging of risks to improve the matching degree of
+the Group's foreign exchange assets and liabilities, and
+strengthened capital fund preservation management of
+overseas institutions. The currency risk was controllable in
+general.
+Currency risk is the risk of adverse movements of exchange
+rate resulting in losses on the foreign currency exposure,
+which is due to the currency structure's mismatch between
+foreign currency assets and liabilities. The Bank's objective
+of currency risk management is to control the impact of
+exchange rate fluctuations on the Bank's financial position
+and shareholders' equity within a tolerable extent. The
+Bank mitigates such risk principally by limit management
+and hedging of risks. The Bank carries out sensitivity
+analysis and stress testing of currency risk on a quarterly
+basis, and the Senior Management and the Market Risk
+Management Committee review the currency risk reports
+on a quarterly basis.
+Currency Risk Management
+The Bank kept strengthening trading book market risk
+management and product control, and adopted the value-
+at-risk (VaR), stress testing, sensitivity analysis, exposure
+analysis, profit/loss analysis, price monitoring and other
+means to measure and manage trading book products.
+It continued to improve the portfolio-based market
+risk limit management system, refined limit indicators,
+ameliorated the dynamic management mechanism to meet
+the requirements of new products and businesses for
+timeliness, and realized quick and flexible limit monitoring
+and dynamic adjustments based on the GMRM system.
+For VaR of the trading book, please refer to "Note 49. (c)(i)
+to the Consolidated Financial Statements: VaR".
+Book
+Management of Market Risk in the Trading
+Management ("GMRM") system to overseas institutions
+and steadily pushed forward the implementation of the
+standardized market risk approach of Basel III Final Reform
+Package issued by Basel Committee.
+In 2021, the Bank continued to deepen the Group's market
+risk management, tightened the Group's market risk limit
+control, and verified and issued the Group's market risk
+limit plan for 2021. A forward-looking analysis of interest
+rate, exchange rate and commodity risks was conducted in
+a timely manner. It continuously conducted global financial
+market monitoring and perfected the fast risk reporting
+mechanism. Empowered by technologies, the market risk
+management system was more intelligent. It continuously
+promoted the extended application of Global Market Risk
+The Bank strictly complies with regulatory requirements
+on market risk management, has implemented an
+independent, centralized and coordinated market
+risk management model, and formed a management
+organizational structure featuring the segregation of the
+front, the middle and the back offices in the financial
+market business. The Board of Directors assumes the
+ultimate responsibility for monitoring market risk
+management. The Senior Management is responsible
+for executing the strategies, overall policy and system
+concerning market risk management approved by
+the Board of Directors. The Market Risk Management
+Committee of the Senior Management is the reviewing and
+decision-making organ of the Bank in respect of market
+risk management, is responsible for reviewing material
+affairs of market risk management, and performs its duty
+in accordance with the Working Regulations for the Market
+Risk Management Committee. The risk management
+departments at different levels undertake the responsibility
+of coordinating market risk management at respective
+levels, and the business departments implement market
+risk management policies and standards for their respective
+business areas in accordance with their functions.
+Annual Report 2021
+0.2
+0.2
+Transportation, storage and postal services.
+14.2
+3.1
+31 December
+2019
+31 December
+2020
+3.5
+3.6
+48,999
+31 December
+At
+At
+14.8
+At
+Item
+As at the end of 2021, the total amount of loans granted by the Bank to the single largest borrower and top ten single
+borrowers accounted for 3.6% and 14.2% of the Bank's net capital base respectively. The total amount of loans granted to
+the top ten single borrowers was RMB554,249 million, accounting for 2.7% of the total loans.
+BORROWER CONCENTRATION
+The Bank carried out large exposures management in strict accordance with regulatory requirements, improved the large
+exposures management system, optimized large exposures limit management, promoted the construction of large exposures
+management related systems, and continuously improved the Group's large exposures management.
+Large Exposures Management
+Discussion and Analysis
+69
+Annual Report 2021
+15.6
+Loan concentration to the single largest borrower (%)
+Loan concentration to the top ten borrowers (%)
+12.6
+2021
+In RMB millions, except for percentages
+Borrower E
+0.2
+49,479
+The table below shows the details of the loans granted to the top ten single borrowers of the Bank as at the end of 2021.
+Borrower D
+0.2
+50,828
+Finance
+Borrower C
+0.3
+67,107
+Finance
+Borrower B
+Transportation, storage and postal services
+% of total
+Borrower
+Borrower A
+Amount
+loans
+Industry
+Transportation, storage and postal services
+141,457
+0.8
+3,909,669
+Net tier 1 capital
+2,944,636
+2,872,792
+2,605,594
+Net capital base
+3,241,364
+3,600,883
+13.29
+3,114,878
+Core tier 1 capital adequacy ratio (%)
+13.31
+13.18
+13.14
+Tier 1 capital adequacy ratio (%)
+14.94
+2,404,030
+3,396,186
+2,653,002
+88
+2,886,378
+14.97
+CAPITAL MANAGEMENT
+Discussion and Analysis
+The Bank implements a group-based capital management
+mechanism, and takes capital as the object and an
+instrument for its management activities, including
+planning, measurement, allocation, application and
+operation. The Bank's capital management aims at
+maintaining appropriate capital adequacy ratio and
+continuously meeting capital supervisory regulations
+and policies; ceaselessly strengthening and enhancing
+the capital base and supporting business growth and
+implementation of strategic planning; establishing a
+value management system focusing on economic capital,
+reinforcing capital constraint and incentive mechanism
+and improving capital allocation efficiency; innovating
+and expanding capital replenishment channels, raising
+capital quality and optimizing capital structure. The Bank's
+capital management covers various operating entities in
+the Group, and its contents include capital adequacy ratio
+management, economic capital management, capital
+investment and financing management.
+In 2021, the Bank further deepened the capital
+management reform, strengthened capital saving and
+optimization, carried forward the disposal of low-efficiency
+capital occupation, intensified the constraint of economic
+capital management on risk-weighted assets and continued
+to elevate the capital use efficiency. It holistically balanced
+the endogenous and exogenous capital replenishment, and
+further consolidated the capital base to further reinforce
+its capacity in supporting the real economy. In 2021,
+all capital indicators performed well, of which capital
+adequacy ratio was kept at a sound and appropriate level.
+Capital Adequacy Ratio and Leverage
+Ratio
+The Bank calculated its capital adequacy ratios at
+all levels in accordance with the Capital Regulation.
+According to the scope of implementing the advanced
+capital management approaches as approved by the
+regulatory authorities, the Bank adopted the foundation
+internal ratings-based ("IRB") approach for corporate
+credit risk, the IRB approach for retail credit risk, the
+internal model approach ("IMA") for market risk, and
+the standardized approach for operational risk meeting
+regulatory requirements. The weighted approach was
+adopted for credit risk uncovered by the IRB approach and
+the standardized approach was adopted for market risk
+uncovered by the IMA.
+RESULTS OF CAPITAL ADEQUACY RATIO CALCULATION OF THE GROUP AND PARENT COMPANY
+In RMB millions, except for percentages
+At 31 December 2020
+At 31 December 2021
+Item
+Group
+Parent
+Company
+Group
+Parent
+Company
+Net core tier 1 capital
+2,614,392
+ICBC
+14.28
+Capital adequacy ratio (%)
+1.02%
+1.04%
+32,000
+11.92%
+34,000
+12.00%
+36,000
+12.07%
+38,000
+12.15%
+1.01%
+Unit: %
+40,000
+Net capital base
+Capital adequacy ratio
+Tier 1 capital adequacy ratio
+Core tier 1 capital adequacy ratio
+2021
+2020
+0.0%
+4.0%
+8.0%
+Higher operating efficiency
+0.99%
+-30,000
+11.85%
+-0.05%
+2.11
+0.15%
+0.35%
+0.55%
+2.09%
+2.13%
+2.15
+2.16%
+2.20%
+Unit: %
+NIM remained good
+comparable domestic banks. The Bank demonstrated
+a strong ability to manage assets and liabilities, and
+implemented the policy of fee reduction and profit
+concessions and serving the real economy. Second, the
+profit structure was optimized with an increasing
+proportion of non-interest income. Non-interest income
+accounted for 19.77% of operating income, up 0.61
+percentage points compared with the previous year.
+First, net interest margin ("NIM") remained good.
+NIM stood at 2.11%, still an outstanding level in the
+banking sector. Against the backdrop of persistently low
+interest rates worldwide and narrowing banking spreads,
+the contraction (-4 basis points) in NIM outperformed
+II. Capital profitability and risk control
+capability continuously improved
+Discussion and Analysis
+85
+Annual Report 2021
+⚫ ROA
+ROE
+2021
+2020
+0.98%
+12.0%
+16.0%
+20.0%
+Unit: RMB100 millions, %
+68,030
+864
+7,448,878
+18,157,690
+480,825,563
+2,591,743
+3,121,151
+2,988,192
+35,300,338
+2020
+In RMB millions, unless otherwise specified
+Derivatives
+Number of domestic operating institutions
+Number of personal customers (in 10,000)
+Number of corporate customers (in 10,000)
+Agency and commission-based business
+Assets under custody
+Payments settled via payment systems or correspondent banks
+Securities and other financing instruments issued
+Intra-financial system liabilities
+Intra-financial system assets
+Balance of adjusted on- and off-balance sheet assets
+Indicator
+16,065
+Higher proportion of non-interest income
+8,085,879
+Assets of non-banking affiliates
+Stronger capital base
+First, operational efficiency was further boosted.
+ROE reached 12.15% and ROA was 1.02%, up 20 basis
+points and 2 basis points from last year, respectively, an
+outstanding level among world's largest banks. Second,
+the capital base was increasingly strengthened.
+Capital adequacy ratio stood at 18.02%, an increase
+of 1.14 percentage points from the end of last year,
+maintaining a leading position in the global banking sector.
+Core tier 1 capital adequacy ratio was 13.31%, up 0.13
+percentage points, and tier 1 capital adequacy ratio was
+14.94%, up 0.66 percentage points. Net capital base was
+RMB3,909.7 billion, an increase of 15.1% from the end of
+last year, remaining at a leading position worldwide.
+I. The input and output efficiency of assets
+and capital constantly enhanced
+"I
+and large" and delivered to investors an impressive
+'answer sheet".
+In 2021, ICBC adhered to the "48-character" guideline and
+coordinated COVID-19 prevention and control efforts with
+business development. Through high-quality investment
+and financing, the Bank provided comprehensive services
+against a new development paradigm, implemented the
+new development plan by steadily pushing forward the
+mantra of "bringing out our strengths to make up for
+our weaknesses and laying a solid foundation and base",
+strengthened risk control on every front by improving the
+risk management system and comprehensively deepened
+reform and innovation through well-focused efforts to
+enhance governance capacity. While contributing to high-
+quality economic growth, the Bank further improved its
+sustainability, further cemented the foundation for its
+own high-quality development and delivered remarkable
+performance in main business indicators. In summary, ICBC
+continued to highlight the qualities of "strong, excellent
+Hot Topic 1: An Impressive "Answer
+Sheet" from ICBC
+Discussion and Analysis
+HOT TOPICS IN THE CAPITAL MARKET
+counter-cyclical policy arrangements, and provide targeted
+support for the implementation of major projects during
+the 14th Five-Year Plan period to keep the macro-economy
+on an even keel. The Bank will integrate financial services
+into the processes of production, distribution, circulation
+and consumption to help build a complete demand system
+and smoothen the circulation of the national economy and
+the global economy. Third, it will implement the new
+development plan at a high-quality standard. The
+Bank will give greater prominence to quality, efficiency and
+innovation, make itself stronger and better based on actual
+conditions, and improve qualitative development. It will
+push forward the implementation of key strategies such
+as the No.1 Personal Bank, the Preferred Bank for Foreign
+Exchange Business, Sharpening Competitive Edge in Key
+Regions, and Urban-Rural Collaborative Development. The
+Bank will strive to achieve new results while "bringing
+out our strengths to make up for our weaknesses and
+laying a solid foundation and base" and make mid-term
+breakthroughs in the implementation of new development
+plan. Fourth, it will carry out the high-quality
+enterprise risk management. Adhering to the systematic
+thinking pattern, the Bank will strengthen risk awareness
+and bottom-line thinking, comprehensively sort out and
+identify potential risks, and develop targeted response
+plans and countermeasures. The Bank will improve credit
+risk management, and further stabilize the asset quality.
+It will refine the risk management mechanism for online
+and emerging businesses, and strictly forestall market risks.
+The Bank will comprehensively enhance the effectiveness
+of internal control and case prevention measures to ensure
+that no major risk events and cases occur. Fifth, it will
+press ahead with high-quality financial reform. The
+Bank will further promote the organic integration of the
+Party's leadership and corporate governance, put in place
+the sound system of modern financial enterprise, and
+modernize the governance system and capacity. It will fully
+exploit its advantages in technology and data to boost
+the development of the digital economy and ramp up its
+efforts in building "D-ICBC". The Bank will roll out new
+cutting-edge and controllable financial technology and
+take solid measures to ensure the security in the process
+of digital transformation. Sixth, it will reinforce the
+building of talent teams in a high-quality manner. The
+Bank will strengthen the top-level design for talent-related
+work, devise and implement a new round of bank-wide
+talent development plans. It will improve the evaluation,
+appraisal and monitoring systems, refine the incentive and
+restraint mechanisms, strengthen employee management
+and supervision, and improve employee care. By doing
+so, the Bank aims to build a strong bank with top-notch
+talent teams and forge synergy for ICBC's high-quality
+development.
+ICBC
+84
+In 2022, the global economy is expected to continue
+its rebound, but tensions in the global supply chain and
+energy supplies may persist, and the prices of major asset
+categories show a divergent trend. The accelerated shift in
+monetary policy of major economies and the upward shift
+in interest rate centers will pose challenges to the banking
+sector in terms of liquidity management, asset allocation
+and optimization of the debt structure. At present, the
+Chinese economy faces pressures from three fronts,
+namely shrinking demand, supply shock and weakening
+expectations, but the momentum of sustained recovery
+and development has not changed, and its economic
+fundamentals remain strong in the long term. China is
+stepping up efforts to foster a new development paradigm
+featuring dual circulation, in which domestic and overseas
+markets reinforce each other, with the domestic market as
+the mainstay. This will bring new opportunities to the high-
+quality development in the banking sector.
+Adhering to Xi Jinping Thought on Socialism with Chinese
+Characteristics for a New Era, ICBC will continue to
+earnestly implement the decisions and arrangements
+of the Central Committee of the Communist Party of
+China and the State Council, advance full and accurate
+implementation of the new development philosophy in the
+new development stage, and actively serve and integrate
+into the new development paradigm. The Bank will stay
+committed to the general principle of pursuing progress
+while ensuring stability, keep hold of the requirement
+of "stability", fight for achievements in "progress",
+redouble efforts in "reform", stick to the path of financial
+development with Chinese characteristics, follow the
+"48-character" guideline, and pursue its own high-
+quality development while contributing to the country's
+high-quality economic and social development. First, it
+will reinforce the Party's establishment in a high-
+quality manner. The Bank will uphold and strengthen
+the Party's leadership, further integrate it with corporate
+governance, better align the procedural rules of the
+Party Committee and the decision-making mechanism in
+corporate governance, and improve the modern financial
+enterprise system. The Bank will give full play to its
+role in full and strict Party self-governance in providing
+political guidance and guarantees and strengthen strict
+management and atmosphere. Second, it will serve
+the new development paradigm in a high-quality
+manner. The Bank will continue to focus on its main
+responsibilities and businesses, scale up support for
+manufacturing enterprises and small and micro enterprises,
+and improve the service quality and efficiency for scientific
+and technological innovation and green development.
+The Bank will bring into full play to its dual functions as
+monetary policy tools in the total amount and structure of
+investment and financing, implement the cross-cyclical and
+OUTLOOK
+Discussion and Analysis
+83
+Annual Report 2021
+1,070,072
+4,222,848
+Balance of wealth management products issued by the wealth management subsidiary
+Cross-jurisdictional claims and liabilities
+1,637,344
+Wealth management business
+872,495
+790,093
+Securities measured at fair value
+Unit: %
+19.16
+19.77
+390,000
+Unit: RMB100 millions
+Total assets
+Discussion and Analysis
+87
+88
+Annual Report 2021
+Growth rate of profit before provision
+Growth rate of operating income
+Growth rate of net profit
+2021
+-0.0%
+4.0%
+8.0%
+12.0%
+16.0%
+Profit before provision
+Operating income
+Net profit
+2020
+0
+2,000
+4,000
+6,000
+8,000
+325,000
+10,000
+260,000
+130,000
+ii. Making up for our weaknesses: focusing on
+personal banking, foreign exchange business, key
+areas and urban-rural collaborative development. In
+terms of No.1 Personal Bank Strategy, personal assets
+under management ("AUM", close to RMB17 trillion)
+still led the market. The number of individual customers
+exceeded 700 million and the number of mobile banking
+customers reached 469 million. The Bank was the first
+bank to have more than 100 million monthly active users
+("MAU") of mobile banking. The balance of personal
+loans reached nearly RMB8 trillion, and payroll service
+reached over RMB5 trillion of distributions to more than
+100 million customers. In terms of the Strategy of the
+Preferred Bank for Foreign Exchange Business, the
+Bank launched the "YES ICBC" financial service brand.
+The average daily balance of domestic foreign exchange
+deposits increased by 35% over the previous year. The
+Group's cross-border RMB business volume exceeded
+RMB8.5 trillion. The Bank became one of the first eligible
+pilot banks for the "Southbound Bond Connect" scheme
+and the "Cross-boundary Wealth Management Connect"
+scheme in the Guangdong-Hong Kong-Macao Greater
+Bay Area. It played a leading role as a big bank to serve
+two-way opening-up of the financial market. In terms
+of Strategy for Sharpening Competitive Edge in Key
+Regions, the Bank enjoyed a dominance in total balance
+of deposits and loans in five key areas, namely the Beijing-
+In terms of transaction banking, the financial market
+business generated more than RMB100 billion of net
+profit, investment banking continued to rank first among
+domestic peers by income from advisory and consulting
+services, and mega asset management totaled RMB27
+trillion, representing a growth of 11.24%.
+i. Bringing out our strengths: focusing on cementing
+strengths in institutional banking, corporate banking,
+settlement and transaction banking. In terms of
+settlement service, RMB corporate settlement generated
+RMB11.3 billion of fee income, ranking first among peers.
+In terms of institutional banking, the customer base
+hit a five-year high in growth, and deposits from banks
+and other financial institutions remained in the first
+place among comparable peers, manifesting a notable
+competitive edge. In terms of corporate banking,
+the Bank still took the first spot in both the number of
+corporate customers and the amount of corporate loans
+and deposits among comparable peers. The Bank was the
+first commercial bank to break the RMB10 trillion mark of
+RMB corporate loans. The asset quality improved steadily.
+IV. Major breakthroughs made in "bringing
+out our strengths to make up for our
+weaknesses and laying a solid foundation
+and base"
+Fifth, the Bank remained in the first place in
+international rankings. The Bank was ranked the 1st
+place among the Top 1000 World Banks by The Banker,
+the 1st place in the Global 2000 by Forbes, and the 1st
+place in the list of commercial banks of the Global 500
+in Fortune for the ninth consecutive year, demonstrating
+strong overall capacity and market influence. Sixth, brand
+value kept increasing. According to the "2022 Top 500
+Banking Brand" by Brand Finance, a research institute of
+global brand value, the Bank took the 1st place among the
+world's top banking brands with a brand value of USD75.1
+billion for the sixth consecutive year.
+Total liabilities
+2021
+Customer deposits
+2020
+0
+70,000
+140,000
+210,000
+280,000
+350,000
+Unit: RMB100 millions
+Total deposits
+Loans and advances to customers
+Total assets
+2021
+Investment in bonds
+2020
+0
+65,000
+195,000
+In accordance with the Measures for Assessment of Systemically Important Banks issued by PBC and CBIRC and the Notice
+on Launching the Assessment Data Completion of Systemically Important Banks issued by CBIRC, the Bank calculated and
+disclosed the 2020 assessment indicators of domestic systemically important banks.
+Unit: RMB100 millions, %
+First, the Bank ranked No. 1 by total income among
+global banks. The Bank recorded RMB860.9 billion in
+operating income, up 7.6% from the previous year, with
+net fee and commission income maintaining its leading
+position among domestic banks. Second, the Bank
+ranked No. 1 by total profits among global banks.
+Net profit reached RMB350.2 billion, representing an
+increase of 10.2% over the previous year. Profit before
+provision was RMB627.5 billion, up 5.5% from last year.
+Third, the Bank ranked No. 1 by total assets among
+global banks. Total assets reached RMB35,171.4 billion,
+representing an increase of 5.5% over the end of the
+previous year. Loans and advances to customers totaled
+RMB20,667.2 billion, up 11.0% from the end of the
+previous year. Investment in bonds was RMB8,817.3
+billion, up 9.5% from the end of the previous year.
+Fourth, the Bank ranked No. 1 by total deposits
+among global banks. Due to customers amounted to
+RMB26,441.8 billion, an increase of 5.2% from the end of
+the previous year.
+-450
+-300
+-150
+0
+150
+300
+450
+Unit: RMB100 millions, %
+Asset quality continued to improve
+ICBC
+86
+percentage points over the end of last year. Allowance to
+total loans ratio was 2.92%, representing an increase of
+7 basis points. Credit cost ratio was 0.86%, down 0.11
+percentage points. Fifth, capital discipline worked
+effectively. RWA grew by 7.8%, 3.2 percentage points
+slower than growth of credit assets. Sixth, the input/
+output efficiency was high. Cost-to-income ratio was
+26.36%, still relatively low among global peers despite a
+rise of 1.60 percentage points over last year.
+Third, asset quality further improved. NPL ratio was
+1.42%, down 16 basis points from the end of last year,
+and basically returned to the pre-pandemic level. The
+overdue loan rate was 1.23%, down 21 basis points.
+The price scissors between overdue loans and NPLs
+was RMB-38.5 billion, maintaining negative for seven
+consecutive quarters, representing a record low. Fourth,
+risk resilience was further boosted and the base
+of risk allowances further fortified. Allowance to
+NPLs was 205.84%, representing an increase of 25.16
+NIM
+Decline rate
+2020
+2.06%
+-0.15
+2021
+2020
+2021
+-0.25%
+-0.04
+2020
+Income and profit ranked first worldwide
+Price scissors
+Overdue rate
+Risk resilience was further boosted
+III. Scale merits and brand value leading the
+world
+◆ Allowance to total loans ratio
+Allowance to NPLs
+2021
+-2.75%
+2.84%
+2.92%
+2020
+◆ NPL ratio
+2021
+150.00%
+0.00%
+0.20%
+0.40%
+0.60%
+200.00%
+0.80%
+1.00%
+1.20%
+1.40%
+250.00%
+1.60%
+Unit: %
+Discussion and Analysis
+Assessment Indicators of Domestic Systemically Important Banks
+Discussion and Analysis
+ICBC
+248,774
+Surplus provision for loan impairment
+351,568
+418,415
+Valid portion of tier 2 capital instruments and related premiums
+523,394
+668,305
+Tier 2 capital
+2,872,792
+3,241,364
+Net tier 1 capital
+647
+655
+Valid portion of minority interests
+219,143
+354,331
+Additional tier 1 capital instruments and related premiums
+219,790
+354,986
+Additional tier 1 capital
+2,653,002
+2,886,378
+Net core tier 1 capital
+170,712
+institutions that are under control but not subject to consolidation
+Valid portion of minority interests
+Net capital base
+Parts uncovered by internal model approach
+Parts covered by internal model approach
+Market risk-weighted assets
+Parts covered by internal ratings-based approach
+Parts uncovered by internal ratings-based approach
+Credit risk-weighted assets
+Item
+RISK-WEIGHTED ASSETS
+ICBC
+80
+Note: (1) Refers to risk-weighted assets after capital floor and adjustments.
+16.88
+18.02
+Capital adequacy ratio (%)
+14.28
+14.94
+Tier 1 capital adequacy ratio (%)
+13.31
+Core tier 1 capital adequacy ratio (%)
+20,124,139
+21,690,349
+1,114
+3,396,186
+3,909,669
+Risk-weighted assets (1)
+1,116
+Operational risk-weighted assets
+7,980
+Investments in core tier 1 capital instruments issued by financial
+At 31 December
+2021
+In RMB millions, except for percentages
+Other intangible assets other than land use rights
+Goodwill
+Core tier 1 capital deductions
+Other
+Valid portion of minority interests
+Retained profits
+General reserve
+Surplus reserve
+Valid portion of capital reserve
+Paid-in capital
+Core tier 1 capital
+Item
+CAPITAL ADEQUACY RATIO
+Discussion and Analysis
+79
+Annual Report 2021
+As at the end of 2021, the core tier 1 capital adequacy ratio, tier 1 capital adequacy ratio and capital adequacy ratio
+calculated by the Bank in accordance with the Capital Regulation stood at 13.31%, 14.94% and 18.02%, respectively,
+complying with regulatory requirements.
+17.02
+16.88
+18.30
+18.02
+2,903,516
+7,980
+At 31 December
+2,669,055
+Cash flow hedge reserve that relates to the hedging of items
+that are not fair-valued on the balance sheet
+(4,616)
+(4,202)
+4,582
+5,669
+8,107
+7,691
+16,053
+17,138
+(10,178)
+(18,658)
+3,552
+3,539
+1,508,562
+1,618,142
+339,486
+438,640
+322,692
+356,849
+148,534
+148,597
+356,407
+356,407
+2020
+14.24
+Total
+At 31 December
+2021
+Intra-financial system assets
+Balance of adjusted on- and off-balance sheet assets
+Indicator
+2021
+In RMB millions
+In accordance with the Guidelines on the Disclosure of
+Global Systemically Importance Assessment Indicators for
+Commercial Banks issued by CBIRC and the Instructions for
+G-SIB Assessment Exercise issued by the Basel Committee
+on Banking Supervision, the Bank calculated and disclosed
+the global systemically importance assessment indicators.
+Global Systemically Importance Assessment
+Indicators of Commercial Banks
+Assessment Indicators of Systemically
+Important Banks
+Economic capital management of the Bank includes three
+major aspects: measurement, allocation and application.
+Economic capital indicators include Economic Capital (EC),
+Risk-Adjusted Return on Capital (RAROC) and Economic
+Value-added (EVA). All of the above are applied in credit
+resource allocation, quota management, performance
+assessment, expenditure allocation, product pricing and
+customer management, etc.
+Allocation and Management of
+Economic Capital
+The Bank further improved the Group's economic capital
+management system in terms of measurement, allocation
+and assessment, strengthened the Group's economic
+capital constraint and incentive mechanism, and promoted
+the Group's intensive capital development. It further
+improved its economic capital measurement policy and
+optimized its economic capital measurement standards
+and system. The Bank strictly implemented the quota
+management of economic capital, continuously boosted
+the refined management of economic capital, and
+reinforced the capital constraint on domestic branches,
+profitability units, overseas institutions and subsidiaries.
+Moreover, the Bank upgraded the economic capital
+measurement and appraisal policy of credit business and
+proactively facilitated the adjustment of its credit structure.
+It strengthened trainings on economic capital management
+for institutions at all levels, and vigorously pushed
+forward the application of economic capital in operational
+management and business front-line.
+For details on the issuance of capital instruments of the
+Bank, please refer to the announcements published by the
+Bank on the website of SSE, the "HKEXnews" website of
+HKEX and the website of the Bank.
+The Second Extraordinary General Meeting of 2021 of the
+Bank reviewed and approved the Proposal on the Issuance
+of Eligible Tier 2 Capital Instruments, which approved the
+Bank's issuance of eligible tier 2 capital instruments in
+domestic and offshore markets to replenish the Bank's tier
+2 capital. The issuance plan of the eligible tier 2 capital
+instruments is still subject to the approval of relevant
+regulatory authorities.
+2 capital bonds of RMB60.0 billion and RMB40.0 billion
+in the national inter-bank bond market, respectively. All
+proceeds were used to replenish the Bank's tier 2 capital
+in accordance with the applicable laws as approved by
+relevant regulatory authorities.
+Discussion and Analysis
+81
+Annual Report 2021
+In 2021, the Bank received the approvals from CBIRC
+and PBC respectively, for the Bank to publicly issue tier 2
+capital bonds of no more than RMB190.0 billion in China's
+national inter-bank bond market. In December 2021
+and January 2022, the Bank issued two tranches of tier
+The Bank issued a tier 2 capital bond of RMB30.0 billion
+in China's national inter-bank bond market in January
+2021. All proceeds were used to replenish the Bank's tier 2
+capital in accordance with the applicable laws as approved
+by relevant regulatory authorities.
+Issuance Progress of Tier 2 Capital Bonds
+The Bank publicly issued two tranches of undated
+additional tier 1 capital bonds of RMB70.0 billion and
+RMB30.0 billion in China's national inter-bank bond
+market in June and November 2021 respectively. All
+proceeds from these issuances, after deduction of issuance
+expenses, were used to replenish the Bank's additional tier
+1 capital in accordance with applicable laws and approvals
+by the regulatory authorities.
+Issuance of Undated Additional Tier 1
+Capital Bonds
+The Bank issued undated additional tier 1 capital bonds of
+USD6.16 billion in the offshore market in September 2021.
+All proceeds from this issuance, after deduction of issuance
+expenses, were used to replenish the Bank's additional tier
+1 capital in accordance with applicable laws and approvals
+by the regulatory authorities.
+37,560,752
+On the basis of capital replenishment by retained profits,
+the Bank proactively expanded the channels for external
+capital replenishment and continuously promoted the
+innovation of capital instruments, to reinforce the capital
+strength, optimize capital structure and control the cost of
+capital rationally.
+2,088,082
+2,947,997
+82
+2,069,735
+2,092,121
+153,164
+784,582
+7,966,381
+Cross-jurisdictional liabilities
+Cross-jurisdictional claims
+Level 3 assets
+Trading and available-for-sale securities
+Notional amount of over-the-counter ("OTC") derivatives
+1,259,003
+Trading volume of listed equities and other securities
+6,582,443
+Trading volume of fixed-income securities
+2,272,838
+Underwritten transactions in debt and equity markets
+19,980,932
+Assets under custody
+493,730,289
+Payments settled via payment systems or correspondent banks
+5,080,700
+Securities and other financing instruments issued
+Intra-financial system liabilities
+Discussion and Analysis
+Capital Financing Management
+8.14
+At
+At
+In RMB millions, except for percentages
+LEVERAGE RATIO
+Please refer to the 2021 Capital Adequacy Ratio Report of Industrial and Commercial Bank of China Limited issued by the
+Bank for further information on capital measurement.
+20,124,139
+1,414,031
+1,493,708
+21,690,349
+80,546
+102,672
+94,238
+51,014
+174,784
+153,686
+6,255,661
+6,570,240
+12,279,663
+13,472,715
+18,535,324
+20,042,955
+2020
+At 31 December
+In RMB millions
+At
+Note: Please refer to "Unaudited Supplementary Information to the Consolidated Financial Statements" for details on disclosed leverage
+ratio information.
+At
+31 December
+8.12
+8.05
+8.31
+8.69
+Leverage ratio (%)
+off-balance sheet assets
+35,300,338
+2,872,792
+2,956,971
+36,423,221
+37,370,525
+3,009,641
+3,132,095
+37,682,357
+3,241,364
+37,292,522
+Balance of adjusted on- and
+Net tier 1 capital
+2020
+31 December
+31 March
+2021
+30 June
+2021
+2021
+2021
+Item
+30 September
+At
+13.18