Earnings release
Page 1
1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. ʮ̡ 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 USD Preference Shares Stock Code: 4620 INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED FIRST QUARTERLY REPORT OF 2025 The Board of Directors of Industrial and Commercial Bank of China Limited ( “the Bank ”) announces the results of the Bank and its subsidiaries ( “the Group ”) for the first quarter ended 31 March 2025. This report is made in accordance with Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule 13.09 of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. IMPORTANT NOTICE: The Board of Directors, the Board of Supervisors, Directors, Supervisors and Senior Management members of the Bank undertake that the information in this quarterly 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 quarterly report. Mr. Liao Lin, Legal Representative of the Bank, Mr. Liu Jun, Person in charge of finance of the Bank, and Mr. Xu Zhisheng, Person in charge of Finance and Accounting Department of the Bank, hereby warrant that the financial information contained in this quarterly report is authentic, accurate and complete. These quarterly financial statements have not been audited.
Page 2
2 I. Major Financial Data i. Major accounting data and financial indicators Financial data and indicators in this quarterly report are prepared in accordance with International Financial Reporting Standards ( “IFRSs ”) and, unless otherwise specified, are consolidated amounts of the Bank and its subsidiaries and denominated in Renminbi. In RMB millions, unless otherwise stated Item Three months ended 31 March 2025 Three months ended 31 March 2024 Increase/ decrease as compared to the same period of last year (%) Operating income 204,688 210,165 (2.61) Net profit attributable to equity holders of the parent company 84,156 87,653 (3.99) Net cash flows from operating activities 942,479 1,367,252 (31.07) Basic earnings per share ( RMB Yuan ) 0.23 0.24 (4.17) Diluted earnings per share ( RMB Yuan ) 0.23 0.24 (4.17) Return on weighted average equity (% , annualised ) 9.06 10.06 A decrease of 1.00 percentage point Item 31 March 2025 31 December 2024 Increase/ decrease as compared to the end of last year (%) Total assets 51,547,045 48,821,746 5.58 Equity attributable to equity holders of the parent company 4,036,224 3,969,841 1.67
Page 3
3 ii. Changes in major accounting data and financial indicators and the reasons thereof In RMB millions, except for percentages Item Three months ended 31 March 2025 Three months ended 31 March 2024 Increase/ decrease as compared to the same period of last year (%) Main reasons for change Net cash flows from operating activities 942,479 1,367,252 (31.07) The decrease in net increase of due to banks and other financial institutions resulted in decreased cash inflows. iii. Reconciliation of differences between the financial statements prepared under Generally Accepted Accounting Principles of the People ’s Republic of China (“PRC GAAP ”) and those under IFRSs In respect of the financial statements of the Group prepared under PRC GAAP and those under IFRSs, net profit attributable to equity holders of the parent company for the reporting period ended 31 March 2025 and equity attributable to equity holders of the parent company as at the end of the reporting period have no differences. II. Information on Shareholders i. Number of ordinary shareholders and particulars of shareholding As at the end of the reporting period, the Bank had a total number of 707,770 ordinary shareholders and no holders of preference shares with voting rights restored or holders of shares with special voting rights, including 103,824 holders of H shares and 603,946 holders of A shares.
Page 4
4 PARTICULARS OF SHAREHOLDING OF THE TOP 10 ORDINARY SHAREHOLDERS OF THE BANK Unit: Share Name of shareholder Nature of shareholder Class of shares Increase/ decrease of shares as compared to the end of last year Shares held at the end of the period Shareholding percentage (%) Number of pledged/ locked-up/ marked shares Central Huijin Investment Ltd. State-owned A Share – 124,004,660,940 34.79 None Ministry of Finance of the People ’s Republic of China State-owned A Share – 110,984,806,678 31.14 None HKSCC Nominees Limited (5) Foreign legal person H Share 10,592,479 86,177,895,732 24.18 Unknown National Council for Social Security Fund (6) State-owned A Share – 12,331,645,186 3.46 None China Securities Finance Co., Ltd. State-owned legal person A Share – 2,416,131,540 0.68 None Hong Kong Securities Clearing Company Limited (7) Foreign legal person A Share (143,287,861) 2,386,932,027 0.67 None Central Huijin Asset Management Ltd. State-owned legal person A Share – 1,013,921,700 0.28 None ICBC { SSE 50 Exchange Traded Securities Investment Funds (8) Other entities A Share (17,020,372) 641,514,501 0.18 None Industrial and Commercial Bank of China { Huatai-PB CSI 300 ETF (9) Other entities A Share (31,550,628) 573,503,933 0.16 None China Construction Bank Corporation { E Fund HS 300 ETF(10) Other entities A Share (16,415,100) 400,994,525 0.11 None Notes: (1) The above data are based on the Bank ’s register of shareholders as at 31 March 2025. (2) The Bank had no shares subject to restrictions on sales. (3) HKSCC Nominees Limited is a wholly-owned subsidiary of Hong Kong Securities Clearing Company Limited. Central Huijin Investment Ltd. held 100% equity of Central Huijin Asset Management Ltd., and held 66.70% equity of China Securities Finance Co., Ltd. Save as disclosed above, the Bank is not aware of any connected relations or acting-in-concert relations among the aforementioned shareholders. (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. (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 March 2025, which included H shares of the Bank held by the National Council for Social Security Fund. (6) At the end of the reporting period, according to the information provided by the National Council for Social Security Fund to the Bank, the National Council for Social Security Fund held 6,738,200,180 H shares of the Bank and 19,069,845,366 A and H shares in aggregate, accounting for 5.35% of the Bank ’s total ordinary shares.
Page 5
5 (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 March 2025. (8) The “ICBC { SSE 50 Exchange Traded Securities Investment Funds ” are securities investment funds raised as approved by the China Securities Regulatory Commission ( “CSRC”) in Zheng Jian Ji Jin Zi [2004] No. 196 Document dated 22 November 2004, with China Asset Management Co., Ltd. as the fund manager and ICBC as fund custodian. (9) The “Industrial and Commercial Bank of China Limited { Huatai-PB CSI 300 ETF ” is a securities investment fund approved by CSRC in CSRC Document [2012] No. 392 dated 23 March 2012. Huatai-PineBridge Fund Management Co., Ltd. acts as the fund manager and ICBC acts as the fund custodian. (10) The “China Construction Bank Corporation { E Fund HS 300 ETF ” is a securities investment fund approved by CSRC in CSRC Document [2012] No. 1762. E Fund Management Co., Ltd. acts as the fund manager and China Construction Bank acts as the fund custodian. ii. Number of preference shareholders and particulars of shareholding As at the end of the reporting period, the Bank had one offshore preference shareholder (or proxy), 30 domestic preference shareholders of “ʈБᎴ 1 ” and 37 domestic preference shareholders of “ʈБᎴ 2 ”.
Page 6
6 PARTICULARS OF SHAREHOLDING OF THE TOP 10 OFFSHORE PREFERENCE SHAREHOLDERS (OR PROXIES) OF THE BANK Unit: Share Name of shareholder Nature of shareholder Class of shares Increase/ decrease of shares as compared to the end of last year Shares held at the end of the period Shareholding percentage (%) Number of shares subject to restrictions on sales Number of pledged/ locked-up/ marked shares The Bank of New York Depository (Nominees) Limited Foreign legal person USD offshore preference shares – 145,000,000 100 – Unknown Notes: (1) The above data are based on the Bank ’s register of offshore preference shareholders as at 31 March 2025. (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. (3) The Bank is not aware of any connected relations or acting-in-concert relations between the aforementioned preference shareholder and the top 10 ordinary shareholders. (4) “Shareholding percentage ” refers to the percentage of offshore preference shares held by preference shareholders in total number of offshore preference shares.
Page 7
7 PARTICULARS OF SHAREHOLDING OF THE TOP 10 DOMESTIC PREFERENCE SHAREHOLDERS OF “ʈБᎴ 1 ” Unit: Share Name of shareholder Nature of shareholder Class of shares Increase/ decrease of shares as compared to the end of last year Shares held at the end of the period Shareholding percentage (%) Number of shares subject to restrictions on sales Number of pledged/ locked-up/ marked shares China Mobile Communications Group Co., Ltd. State-owned legal person Domestic preference shares – 200,000,000 44.4 – None China National Tobacco Corporation Other entities Domestic preference shares – 50,000,000 11.1 – None China Life Insurance Company Limited State-owned legal person Domestic preference shares – 35,000,000 7.8 – None Ping An Life Insurance Company of China, Ltd. Domestic non- state-owned legal person Domestic preference shares – 30,000,000 6.7 – None CCB Trust Co., Ltd. State-owned legal person Domestic preference shares – 13,200,000 2.9 – None BOC International (China) Co., Ltd. State-owned legal person Domestic preference shares – 13,030,000 2.9 – None Shanghai Haitong Securities Asset Management Company Ltd. State-owned legal person Domestic preference shares – 12,200,000 2.7 – None Sun Life Everbright Asset Management Co., Ltd. State-owned legal person Domestic preference shares – 11,715,000 2.6 – None Hwabao Trust Co., Ltd. State-owned legal person Domestic preference shares (30,000) 10,200,000 2.3 – None China National Tobacco Corporation Shandong Branch Other entities Domestic preference shares – 10,000,000 2.2 – None China National Tobacco Corporation Heilongjiang Branch Other entities Domestic preference shares – 10,000,000 2.2 – None Ping An Property & Casualty Insurance Company of China, Ltd. Domestic non- state-owned legal person Domestic preference shares – 10,000,000 2.2 – None Notes : (1) The above data are based on the Bank ’s register of domestic preference shareholders of “ʈБᎴ 1 ” as at 31 March 2025. (2) China National Tobacco Corporation Shandong Branch and China National Tobacco Corporation Heilongjiang Branch are both wholly-owned subsidiaries of China National Tobacco Corporation. 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 acting-in-concert relations among the aforementioned preference shareholders and among the aforementioned preference shareholders and top 10 ordinary shareholders. (3) “Shareholding percentage ” refers to the percentage of domestic preference shares of “ʈБᎴ 1 ” held by preference shareholders in total number (450 million shares) of domestic preference shares of “ʈБᎴ 1 ”.
Page 8
8 PARTICULARS OF SHAREHOLDING OF THE TOP 10 DOMESTIC PREFERENCE SHAREHOLDERS OF “ʈБᎴ 2 ” Unit: Share Name of shareholder Nature of shareholder Class of shares Increase/ decrease of shares as compared to the end of last year Shares held at the end of the period Shareholding percentage (%) Number of shares subject to restrictions on sales Number of pledged/ locked-up/ marked shares China Life Insurance Company Limited State-owned legal person Domestic preference shares – 120,000,000 17.1 – None China Mobile Communications Group Co., Ltd. State-owned legal person Domestic preference shares – 100,000,000 14.3 – None Bohai International Trust Co., Ltd. State-owned legal person Domestic preference shares – 82,251,000 11.8 – None China Credit Trust Co., Ltd. State-owned legal person Domestic preference shares 970,000 70,719,000 10.1 – None Everbright Securities Asset Management Co., Ltd. State-owned legal person Domestic preference shares – 66,035,000 9.4 – None China National Tobacco Corporation Other entities Domestic preference shares – 50,000,000 7.1 – None CCB Trust Co., Ltd. State-owned legal person Domestic preference shares – 44,700,000 6.4 – None Shanghai Tobacco Group Co., Ltd. Other entities Domestic preference shares – 30,000,000 4.3 – None China Resources SZITIC Trust Co., Ltd. State-owned legal person Domestic preference shares 1,200,000 20,895,000 3.0 – None China Fund Management Co., Ltd. State-owned legal person Domestic preference shares 4,000,000 18,350,000 2.6 – None Notes: (1) The above data are based on the Bank ’s register of domestic preference shareholders of “ʈБᎴ 2 ” as at 31 March 2025. (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. Sun Life Everbright Asset Management Co., Ltd. and Everbright Securities Asset Management Co., Ltd. have connected relations. Save as disclosed above, the Bank is not aware of any connected relations or acting-in-concert relations among the aforementioned preference shareholders and among the aforementioned preference shareholders and top 10 ordinary shareholders. (3) “Shareholding percentage ” refers to the percentage of domestic preference shares of “ʈБᎴ 2 ” held by preference shareholders in total number (700 million shares) of domestic preference shares of “ʈБᎴ 2 ”.
Page 9
9 III. Other Matters Requiring Attention i. Brief analysis on overall operating activities in the first quarter Set out below are the highlights of the operating results of the Group for the reporting period: For the first three months of 2025, net profit amounted to RMB84,709 million, representing a decrease of 3.81% compared with the same period of last year. Annualised return on average total assets and annualised return on weighted average equity were 0.68% and 9.06%, down 0.08 percentage points and 1.00 percentage point respectively. Operating income amounted to RMB204,688 million, representing a decrease of 2.61% compared with the same period of last year. Net interest income was RMB156,784 million, representing a decrease of 2.86%. Annualised net interest margin ( “NIM”) was 1.33%. Non-interest income reported RMB47,904 million, representing a decrease of 1.76%, of which net fee and commission income was RMB38,878 million, representing a decrease of 1.18%. Operating expenses (excluding taxes and surcharges) were RMB46,873 million, representing an increase of 2.37%. Cost-to- income ratio was 22.90%. The Bank set aside the impairment losses on assets of RMB57,136 million, representing a decrease of 4.89%. Specifically, the impairment losses on loans were RMB57,244 million, indicating a decrease of 4.11%. As at the end of the reporting period, total assets amounted to RMB51,547,045 million, representing an increase of RMB2,725,299 million or 5.58% over the end of the previous year. Total loans and advances to customers (excluding accrued interest) amounted to RMB29,683,041 million, representing an increase of RMB1,310,812 million or 4.62%, of which RMB-denominated loans of domestic branches grew by RMB1,298,298 million or 4.86%. In terms of the structure, corporate loans were RMB18,593,488 million, personal loans were RMB9,139,754 million and discounted bills were RMB1,949,799 million. Investments reached RMB15,116,116 million, representing an increase of RMB962,540 million or 6.80%. Total liabilities amounted to RMB47,486,219 million, representing an increase of RMB2,651,739 million or 5.91% over the end of the previous year. Due to customers amounted to RMB36,431,832 million, representing an increase of RMB1,594,859 million or 4.58%. In terms of the structure, time deposits were RMB21,675,235 million, demand deposits were RMB14,018,843 million, other deposits were RMB218,604 million and accrued interest was RMB519,150 million. Shareholders ’ equity amounted to RMB4,060,826 million, representing an increase of RMB73,560 million or 1.84% over the end of last year.
Page 10
10 According to the five-category classification of loans, the balance of non-performing loans ( “NPLs ”) amounted to RMB395,399 million, representing an increase of RMB15,941 million over the end of the previous year. The NPL ratio was 1.33%, representing a decrease of 0.01 percentage points. The allowance to NPLs stood at 215.70%, representing an increase of 0.79 percentage points. The common equity tier 1 capital adequacy ratio was 13.89%, the tier 1 capital adequacy ratio was 15.11% and the capital adequacy ratio was 19.15%, all meeting regulatory requirements. ii. Progress of significant event In March 2025, the Bank publicly issued a series of tier 2 capital bonds of RMB50.0 billion in National Interbank Bond Market. The proceeds are used to boost the tier 2 capital of the Bank in accordance with the applicable laws and the approvals by the relevant regulatory authorities. Please refer to the announcements published by the Bank on the website of the Shanghai Stock Exchange, the “HKEXnews ” website of the Hong Kong Exchanges and Clearing Limited and the website of the Bank.
Page 11
11 IV. Quarterly Financial Statements Prepared based on IFRSs Industrial and Commercial Bank of China Limited Consolidated Statement of Profit or Loss { Prepared in accordance with IFRSs For the three months ended 31 March 2025 (In RMB millions, unless otherwise stated) Three months ended 31 March 2025 Three months ended 31 March 2024 (Unaudited) (Unaudited) Interest income 338,083 363,079 Interest expense (181,299) (201,678) NET INTEREST INCOME 156,784 161,401 Fee and commission income 42,476 43,863 Fee and commission expense (3,598) (4,521) NET FEE AND COMMISSION INCOME 38,878 39,342 Net trading income 2,496 5,320 Net gains on financial investments 5,971 7,545 Other operating income/(expenses), net 559 (3,443) OPERATING INCOME 204,688 210,165 Operating expenses (49,331) (48,585) Credit impairment losses (56,969) (59,918) Impairment losses on other assets (167) (157) OPERATING PROFIT 98,221 101,505 Share of results of associates and joint ventures 1,389 950 PROFIT BEFORE TAXATION 99,610 102,455 Income tax expense (14,901) (14,393) PROFIT FOR THE PERIOD 84,709 88,062
Page 12
12 Three months ended 31 March 2025 Three months ended 31 March 2024 (Unaudited) (Unaudited) Profit for the period attributable to: Equity holders of the parent company 84,156 87,653 Non-controlling interests 553 409 Profit for the period 84,709 88,062 EARNINGS PER SHARE – Basic (RMB Yuan) 0.23 0.24 – Diluted (RMB Yuan) 0.23 0.24 Industrial and Commercial Bank of China Limited Consolidated Statement of Profit or Loss { Prepared in accordance with IFRSs (continued) For the three months ended 31 March 2025 (In RMB millions, unless otherwise stated)
Page 13
13 Industrial and Commercial Bank of China Limited Consolidated Statement of Profit or Loss and Other Comprehensive Income { Prepared in accordance with IFRSs For the three months ended 31 March 2025 (In RMB millions, unless otherwise stated) Three months ended 31 March 2025 Three months ended 31 March 2024 (Unaudited) (Unaudited) Profit for the period 84,709 88,062 Other comprehensive income (after tax, net): (a) Items that will not be reclassified to profit or loss: (i) Changes in fair value of equity instruments designated as at fair value through other comprehensive income 436 1,646 (ii) Others – 45 (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 (18,818) 12,332 (ii) Credit losses of debt instruments measured at fair value through other comprehensive income (141) 26 (iii) Cash flow hedging reserve 517 (500) (iv) Other comprehensive income recognised under the equity method (265) (53) (v) Foreign currency translation reserve 143 5,167 (vi) Others 591 (5,748) Subtotal of other comprehensive income for the period (17,537) 12,915 Total comprehensive income for the period 67,172 100,977 Total comprehensive income for the period attributable to: Equity holders of the parent company 67,224 101,519 Non-controlling interests (52) (542) 67,172 100,977
Page 14
14 Industrial and Commercial Bank of China Limited Consolidated Statement of Financial Position { Prepared in accordance with IFRSs 31 March 2025 (In RMB millions, unless otherwise stated) 31 March 2025 31 December 2024 (Unaudited) (Audited) ASSETS Cash and balances with central banks 3,518,304 3,322,911 Due from banks and other financial institutions 1,205,264 1,219,876 Derivative financial assets 170,752 222,361 Reverse repurchase agreements 1,502,622 1,210,217 Loans and advances to customers 28,889,645 27,613,781 Financial investments 15,116,116 14,153,576 Financial investments measured at fair value through profit or loss 1,056,718 1,010,439 Financial investments measured at fair value through other comprehensive income 3,858,472 3,291,152 Financial investments measured at amortised cost 10,200,926 9,851,985 Investments in associates and joint ventures 73,938 73,357 Property and equipment 302,208 302,387 Deferred tax assets 99,050 90,047 Other assets 669,146 613,233 TOTAL ASSETS 51,547,045 48,821,746
Page 15
15 31 March 2025 31 December 2024 (Unaudited) (Audited) LIABILITIES Due to central banks 168,627 169,622 Due to banks and other financial institutions 5,023,502 4,590,965 Financial liabilities measured at fair value through profit or loss 90,507 76,056 Derivative financial liabilities 160,567 197,795 Repurchase agreements 1,824,511 1,523,555 Certificates of deposit 408,139 445,419 Due to customers 36,431,832 34,836,973 Income tax payable 17,886 31,880 Debt securities issued 2,470,828 2,028,722 Deferred tax liabilities 5,361 4,278 Other liabilities 884,459 929,215 TOTAL LIABILITIES 47,486,219 44,834,480 EQUITY Equity attributable to equity holders of the parent company Share capital 356,407 356,407 Other equity instruments 324,344 324,344 Preference shares 134,614 134,614 Perpetual bonds 189,730 189,730 Reserves 1,258,368 1,275,004 Retained profits 2,097,105 2,014,086 4,036,224 3,969,841 Non-controlling interests 24,602 17,425 TOTAL EQUITY 4,060,826 3,987,266 TOTAL EQUITY AND LIABILITIES 51,547,045 48,821,746 Liao Lin Liu Jun Xu Zhisheng Chairman Vice Chairman and President Person in charge of Finance and Accounting Department Industrial and Commercial Bank of China Limited Consolidated Statement of Financial Position { Prepared in accordance with IFRSs (continued) 31 March 2025 (In RMB millions, unless otherwise stated)
Page 16
16 Industrial and Commercial Bank of China Limited Consolidated Statement of Cash Flows { Prepared in accordance with IFRSs For the three months ended 31 March 2025 (In RMB millions, unless otherwise stated) Three months ended 31 March 2025 Three months ended 31 March 2024 (Unaudited) (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Profit before taxation 99,610 102,455 Adjustments for: Share of results of associates and joint ventures (1,389) (950) Depreciation 6,991 7,089 Amortisation 1,471 1,138 Credit impairment losses 56,969 59,918 Impairment losses on other assets 167 157 Unrealised (gains)/losses on foreign exchange (11,654) 15,421 Interest expense on debt securities issued 13,932 19,537 Accreted interest on impaired loans (359) (458) Net gains on financial investments (10,848) (4,810) Interest income on financial investments (93,685) (88,800) Net losses/(gains) on changes in fair value 2,538 (5,982) Net gains on disposal and stocktake of property and equipment and other assets (other than repossessed assets) (306) (416) Dividend income (495) (369) 62,942 103,930
Page 17
17 Three months ended 31 March 2025 Three months ended 31 March 2024 (Unaudited) (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES (continued): Net (increase)/decrease in operating assets: Due from central banks (102,380) (23,277) Due from banks and other financial institutions 260,703 329,700 Financial assets measured at fair value through profit or loss (99,736) (58,166) Reverse repurchase agreements (98,395) (113,612) Loans and advances to customers (1,339,884) (1,274,265) Other assets (30,978) (198,235) (1,410,670) (1,337,855) Net increase/(decrease) in operating liabilities: Financial liabilities measured at fair value through profit or loss 14,239 6,189 Due to central banks (986) (19,809) Due to banks and other financial institutions 437,575 808,145 Repurchase agreements 311,481 412,614 Certificates of deposit (35,106) (16,746) Due to customers 1,645,342 1,521,252 Other liabilities (51,279) (62,258) 2,321,266 2,649,387 Net cash flows from operating activities before taxation 973,538 1,415,462 Income tax paid (31,059) (48,210) Net cash flows from operating activities 942,479 1,367,252 Industrial and Commercial Bank of China Limited Consolidated Statement of Cash Flows { Prepared in accordance with IFRSs (continued) For the three months ended 31 March 2025 (In RMB millions, unless otherwise stated)
Page 18
18 Three months ended Three months ended 31 March 2025 31 March 2024 (Unaudited) (Unaudited) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment and other assets (6,134) (7,188) Proceeds from disposal of property and equipment and other assets (other than repossessed assets) 2,688 1,766 Purchases of financial investments (2,180,821) (1,350,039) Proceeds from sale and redemption of financial investments 1,292,357 1,074,292 Investments in associates and joint ventures (182) – Proceeds from disposal of associates and joint ventures 160 – Investment returns received 94,398 81,248 Net cash flows from investing activities (797,534) (199,921) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of other equity instruments 7,000 – Proceeds from issuance of debt securities 947,173 415,687 Interest paid on debt securities (10,489) (17,784) Repayment of debt securities (503,986) (329,080) Dividends paid on ordinary shares (51,109) – Dividends or interest paid to other equity instrument holders (868) (834) Dividends paid to non-controlling shareholders (99) (115) Cash payment for other financing activities (1,540) (1,980) Net cash flows from financing activities 386,082 65,894 NET INCREASE IN CASH AND CASH EQUIVALENTS 531,027 1,233,225 Cash and cash equivalents at beginning of the period 2,290,404 2,755,732 Effect of exchange rate changes on cash and cash equivalents 894 5,626 CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 2,822,325 3,994,583 NET CASH FLOWS FROM OPERATING ACTIVITIES INCLUDE: Interest received 253,890 283,334 Interest paid (215,613) (191,104) Industrial and Commercial Bank of China Limited Consolidated Statement of Cash Flows { Prepared in accordance with IFRSs (continued) For the three months ended 31 March 2025 (In RMB millions, unless otherwise stated)
Page 19
19 V. Release of Quarterly Report The report will be published simultaneously on the “HKEXnews ” website of the Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the website of the Bank (www.icbc-ltd.com). The quarterly report prepared in accordance with the PRC GAAP will also be published simultaneously on the website of the Shanghai Stock Exchange (www.sse.com.cn) and the website of the Bank (www.icbc-ltd.com). This report is prepared in both Chinese and English. In case of any discrepancy between the two versions, the Chinese version shall prevail. By Order of The Board of Directors of Industrial and Commercial Bank of China Limited Beijing, China 29 April 2025 As at the date of this announcement, the Board of Directors comprises Mr. LIAO Lin, Mr. LIU Jun and Mr. WANG Jingwu as executive directors, Mr. LU Yongzhen, Mr. FENG Weidong, Ms. CAO Liqun, Ms. CHEN Yifang, Mr. DONG Yang and Ms. ZHONG Mantao as non-executive directors, Mr. Fred Zuliu HU, Mr. Norman CHAN Tak Lam, Mr. Herbert WALTER, Mr. Murray HORN, Mr. CHEN Guanting and Mr. LI Weiping as independent non-executive directors.
Page 20
20 Appendix: Industrial and Commercial Bank of China Limited Pillar 3 Information for the First Quarter of 2025 The following information is prepared and disclosed in accordance with the Decree of National Financial Regulatory Administration [No. 4, 2023] Rules on Capital Management of Commercial Banks. i. KM1: Key Prudential Regulatory Indicators for Regulatory Consolidation In RMB millions, except for percentages As at 31 March 2025 As at 31 December 2024 As at 30 September 2024 As at 30 June 2024 As at 31 March 2024 AVAILABLE CAPITAL (AMOUNT) 1 Net common equity tier 1 capital 3,690,790 3,624,342 3,564,519 3,477,144 3,492,517 2 Net tier 1 capital 4,015,911 3,949,453 3,889,547 3,832,172 3,847,493 3 Net capital base 5,089,199 4,986,531 4,916,579 4,812,406 4,868,344 RISK-WEIGHTED ASSETS (AMOUNT) 4 Total risk-weighted assets 26,580,039 25,710,855 25,546,153 25,123,488 25,347,956 4a Total risk-weighted assets (before capital floor) 26,580,039 25,710,855 25,546,153 25,123,488 25,347,956 CAPITAL ADEQUACY RATIO 5 Common equity tier 1 capital adequacy ratio (%) 13.89 14.10 13.95 13.84 13.78 5a Common equity tier 1 capital adequacy ratio (%) (before capital floor) 13.89 14.10 13.95 13.84 13.78 6 Tier 1 capital adequacy ratio (%) 15.11 15.36 15.23 15.25 15.18 6a Tier 1 capital adequacy ratio (%) (before capital floor) 15.11 15.36 15.23 15.25 15.18 7 Capital adequacy ratio (%) 19.15 19.39 19.25 19.16 19.21 7a Capital adequacy ratio (%) (before capital floor) 19.15 19.39 19.25 19.16 19.21
Page 21
21 As at 31 March 2025 As at 31 December 2024 As at 30 September 2024 As at 30 June 2024 As at 31 March 2024 ADDITIONAL CAPITAL REQUIREMENTS 8 Capital conservation buffer requirement (%) 2.50 2.50 2.50 2.50 2.50 9 Countercyclical buffer requirement (%) – – – – – 10 Capital surcharge for global systemically important banks (G-SIBs) or domestic systemically important banks (%) 1.50 1.50 1.50 1.50 1.50 11 Additional capital requirements (%) (8+9+10) 4.00 4.00 4.00 4.00 4.00 12 Ratio of net common equity tier 1 capital available after meeting minimum capital requirements to risk-weighted assets (%) 8.89 9.10 8.95 8.84 8.78 LEVERAGE RATIO 13 Balance of adjusted on- and off- balance sheet assets 53,728,503 50,964,819 50,447,695 49,146,136 50,111,419 14 Leverage ratio (%) 7.47 7.75 7.71 7.80 7.68 14a Leverage ratio a (%) (1) 7.47 7.75 7.71 7.80 7.68 14b Leverage ratio b (%) (2) 7.56 7.72 7.75 7.77 7.82 14c Leverage ratio c (%) (3) 7.56 7.72 7.75 7.77 7.82 LIQUIDITY COVERAGE RATIO (4) 15 High-quality liquid assets 9,311,991 8,690,185 8,724,549 8,162,224 7,636,915 16 Net cash outflows 7,692,162 6,198,029 6,314,828 6,115,727 6,039,295 17 Liquidity coverage ratio (%) 121.09 140.25 138.20 133.65 126.61 NET STABLE FUNDING RATIO 18 Total available stable funding 34,141,721 32,853,470 32,555,907 32,086,162 32,738,107 19 Total required stable funding 26,873,607 25,635,263 25,109,433 25,016,809 25,288,511 20 Net stable funding ratio (%) 127.05 128.16 129.66 128.26 129.46
Page 22
22 Notes: (1) Refers to the leverage ratio taking no account of temporary exemption of central bank reserves. (2) Refers to the leverage ratio taking into account temporary exemption of central bank reserves and calculated by adopting the simple arithmetic average of daily balance of securities financing transactions for the recent quarter. (3) Refers to the leverage ratio taking no account of temporary exemption of central bank reserves and calculated by adopting the simple arithmetic average of daily balance of securities financing transactions for the recent quarter. (4) Refers to the simple arithmetic average of daily values for the recent quarter. ii. KM2: Key Prudential Regulatory Indicators for the Total Loss-Absorbing Capacity of the Resolution Group In RMB millions, except for percentages As at 31 March 2025 1 Total Loss-Absorbing Capacity ( “TLAC”) 5,803,700 2 Total risk-weighted assets of the resolution group 26,580,039 3 TLAC as a percentage of risk-weighted assets (row 1/row 2) 21.83% 4 Balance of adjusted on- and off-balance sheet assets of the resolution group 53,728,503 5 TLAC as a percentage of leverage exposure measure (row 1/row 4) 10.80% Note: According to the Administrative Measures on the Total Loss-absorbing Capacity of Global Systemically Important Banks, as from 1 January 2025, the external TLAC risk-weighted ratio shall not be lower than 16%, and the capital buffer requirement shall be 4% (comprising a capital conservation buffer requirement of 2.5% and a capital surcharge for G-SIBs of 1.5%), with the total required ratio reaching 20%.
Page 23
23 iii. OV1: Overview of Risk-Weighted Assets In RMB millions Risk-weighted assets Minimum capital requirements As at 31 March 2025 As at 31 December 2024 As at 31 March 2025 1 Credit Risk 24,165,347 23,386,013 1,933,227 2 Credit risk (excluding counterparty credit risk, credit valuation adjustment risk, banking book asset management products and banking book asset securitization) 23,753,203 23,041,768 1,900,256 3 Of which: Weighted approach 8,190,001 8,132,746 655,200 4 Of which: Exposure formed in the settlement process of securities, commodities and foreign exchange transactions 4 4 0 5 Of which: Amounts below the thresholds for deduction 385,436 363,136 30,835 6 Of which: Foundation IRB approach 12,492,453 11,696,615 999,396 7 Of which: Supervisory slotting approach – – – 8 Of which: Advanced IRB approach 3,070,749 3,212,407 245,660 9 Counterparty credit risk 214,903 165,578 17,192 10 Of which: Standardized approach 214,903 165,578 17,192 11 Of which: Current exposure method – – – 12 Of which: Other approaches – – – 13 Credit valuation adjustment 40,280 42,112 3,222 14 Asset management products in banking book 152,550 125,790 12,204 15 Of which: Look-through approach 92,044 65,378 7,364 16 Of which: Mandate-based approach 61,245 60,865 4,900 17 Of which: 1250% risk weight applied 14 14 1 18 Securitization exposures in banking book 4,411 10,765 353 19 Of which: Securitization IRB approach – – – 20 Of which: Securitization external ratings-based approach 636 678 51 21 Of which: Securitization standardized approach – – – Of which: 1250% risk weight applied 3,775 10,087 302
Page 24
24 Risk-weighted assets Minimum capital requirements As at 31 March 2025 As at 31 December 2024 As at 31 March 2025 22 Market risk 481,270 380,609 38,502 23 Of which: Standardized approach 481,075 380,368 38,486 24 Of which: Internal model approach – – – 25 Of which: Simplified standardized approach 195 241 16 26 Capital charge for switch between trading book and banking book 92,937 103,748 7,435 27 Operational risk 1,840,485 1,840,485 147,239 28 Additional adjustment due to the application of capital floor – – 29 Total 26,580,039 25,710,855 2,126,403
Page 25
25 iv. GSIB1: Assessment Indicators of Global Systemically Important Banks For details on the assessment indicators of G-SIBs of the Group for the previous periods, please refer to the annual reports published by the Bank on the website of the Bank. The web link is as follows: https://www.icbc-ltd.com/en/column/1438058343653851171.html v. LR1: Differences between Regulatory Leverage Ratio Items and Accounting Items In RMB millions As at 31 March 2025 1 Total consolidated assets as per published financial statements 51,547,045 2 Consolidated adjustments for accounting purposes but outside the scope of regulatory consolidation (367,112) 3 Adjustments for fiduciary assets – 4 Adjustments for derivative financial instruments 415,908 5 Adjustments for securities financing transactions 68,358 6 Adjustments for off-balance sheet items 2,089,190 7 Adjustments for asset securitization transactions – 8 Adjustments for unsettled financial assets – 9 Adjustments for eligible cash pooling transactions – 10 Adjustments for central bank reserves (if applicable) – 11 Adjustments for prudent valuation adjustments and allowance for impairment losses – 12 Other adjustments (24,886) 13 Balance of adjusted on- and off-balance sheet assets 53,728,503
Page 26
26 vi. LR2: Leverage Ratio In RMB millions, except for percentages As at 31 March 2025 As at 31 December 2024 BALANCE OF ON-BALANCE SHEET ASSETS 1 On-balance sheet exposures (excluding derivatives and securities financing transactions) 50,305,076 47,798,102 2 Less: Allowance for impairment losses (920,997) (883,321) 3 Less: A sset amounts deducted in determining Basel III tier 1 capital (24,886) (24,621) 4 Balance of adjusted on-balance sheet assets (excluding derivatives and securities financing transactions) 49,359,193 46,890,160 DERIVATIVE EXPOSURES 5 Replacement cost associated with all derivatives (net of eligible cash variation margin, taking into account the impact of bilateral netting agreements) 181,016 227,350 6 Add-on amounts for potential future exposure associated with all derivatives 393,058 324,050 7 Gross-up for derivatives collateral provided where deducted from the balance sheet assets pursuant to the operative accounting framework – – 8 Less: D eductions of receivables assets for cash variation margin provided in derivatives transactions – – 9 Less: E xempted central counterparties leg of client-cleared trade exposures – – 10 Effective notional amount of written credit derivatives 12,587 10,675 11 Less: A djusted effective notional deductions for written credit derivatives – – 12 Total derivative exposures 586,661 562,075
Page 27
27 As at 31 March 2025 As at 31 December 2024 SECURITIES FINANCING TRANSACTION EXPOSURES 13 Gross securities financing transaction assets (with no recognition of netting), after adjusting for sale accounting transactions 1,625,102 1,340,933 14 Less: N etted amounts of cash payables and cash receivables of gross securities financing transaction assets – – 15 Counterparty credit risk exposure for securities financing transaction assets 68,357 26,695 16 Agent transaction exposures – – 17 Total securities financing transaction exposures 1,693,459 1,367,628 OFF-BALANCE SHEET EXPOSURES 18 Off-balance sheet exposures at gross notional amount 8,638,620 8,550,499 19 Less: A djustments for conversion to credit equivalent amounts (6,527,172) (6,383,266) 20 Less: Allowance for impairment losses (22,258) (22,277) 21 Balance of adjusted off-balance sheet assets 2,089,190 2,144,956 NET TIER 1 CAPITAL AND BALANCE OF ADJUSTED ON- AND OFF-BALANCE SHEET ASSETS 22 Net tier 1 capital 4,015,911 3,949,453 23 Balance of adjusted on- and off-balance sheet assets 53,728,503 50,964,819 LEVERAGE RATIO 24 Leverage ratio 7.47% 7.75% 24a Leverage ratio a (1) 7.47% 7.75% 25 Minimum leverage ratio requirement 4.00% 4.00% 26 Applicable leverage buffers 0.75% 0.75%
Page 28
28 As at 31 March 2025 As at 31 December 2024 DISCLOSURE OF AVERAGE VALUES 27 Daily average balances of securities financing transactions for the quarter 1,031,616 1,539,849 27a Quarter-end value of securities financing transactions 1,625,102 1,340,933 28 Balance of adjusted on- and off-balance sheet assets a (2) 53,135,017 51,163,735 28a Balance of adjusted on- and off-balance sheet assets b (3) 53,135,017 51,163,735 29 Leverage ratio b (4) 7.56% 7.72% 29a Leverage ratio c (5) 7.56% 7.72% Notes: (1) Refers to the leverage ratio taking no account of temporary exemption of central bank reserves. (2) Refers to the balance of adjusted on- and off-balance sheet assets taking into account temporary exemption of central bank reserves and calculated by adopting the simple arithmetic average of daily balance of securities financing transactions for the recent quarter. (3) Refers to the balance of adjusted on- and off-balance sheet assets taking no account of temporary exemption of central bank reserves and calculated by adopting the simple arithmetic average of daily balance of securities financing transactions for the recent quarter. (4) Refers to the leverage ratio taking into account temporary exemption of central bank reserves and calculated by adopting the simple arithmetic average of daily balance of securities financing transactions for the recent quarter. (5) Refers to the leverage ratio taking no account of temporary exemption of central bank reserves and calculated by adopting the simple arithmetic average of daily balance of securities financing transactions for the recent quarter.
Page 29
29 vii. LIQ1: Liquidity Coverage Ratio In RMB millions, except for percentages First quarter of 2025 Total unweighted value Total weighted value HIGH-QUALITY LIQUID ASSETS 1 Total high-quality liquid assets (HQLA) 9,311,991 CASH OUTFLOWS 2 Retail deposits and deposits from small business customers 20,067,651 2,002,008 3 Of which: Stable deposits 74,752 2,718 4 Of which: Less stable deposits 19,992,899 1,999,290 5 Unsecured wholesale funding 17,793,238 6,936,987 6 Of which: Operational deposits (excluding those generated from correspondent banking activities) 8,051,155 1,948,300 7 Of which: Non-operational deposits (all counterparties) 9,586,141 4,832,745 8 Of which: Unsecured debt 155,942 155,942 9 Secured funding 12,593 10 Additional requirements 4,807,885 2,571,391 11 Of which: Outflows related to derivative exposures and other collateral requirements 2,377,867 2,377,867 12 Of which: Outflows related to loss of funding on debt products – – 13 Of which: Credit and liquidity facilities 2,430,018 193,524 14 Other contractual funding obligations 104,487 104,456 15 Other contingent funding obligations 7,614,871 108,141 16 Total cash outflows 11,735,576 CASH INFLOWS 17 Secured lending (including reverse repos and securities borrowing) 813,320 522,493 18 Inflows from fully performing exposures 1,952,309 1,153,627 19 Other cash inflows 2,373,536 2,367,294 20 Total cash inflows 5,139,165 4,043,414 Total adjusted value 21 Total HQLA 9,311,991 22 Total net cash outflows 7,692,162 23 Liquidity coverage ratio (%) 121.09
Page 30
30 Note: Data of the above table are the simple arithmetic average of the 90 calendar days ’ figures of the recent quarter. The daily average liquidity coverage ratio for the first quarter of 2025 was 121.09%, 19.16 percentage points lower than the previous quarter, mainly attributable to the increase in net cash outflows in future 30 days. 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.