Earnings release
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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 2026 Interim Results Announcement The Board of Directors of Industrial and Commercial Bank of China Limited (the “Bank ”) announces the unaudited interim results of the Bank and its subsidiaries (the “Group ”) for the six months ended 30 June 2026. The Board of Directors and the Audit Committee of the Board of Directors of the Bank have reviewed and confirmed the unaudited interim results. 1. Corporate Information 1.1 Basic Information Stock name Stock code Stock exchange on which shares are listed A Share ʈਠვБ 601398 Shanghai Stock Exchange H Share ICBC 1398 The Stock Exchange of Hong Kong Limited Domestic Preference Share ʈБᎴ 1 360011 Shanghai Stock Exchange ʈБᎴ 2 360036 1.2 Contact Board Secretary and Company Secretary Name Tian Fenglin Address 55 Fuxingmennei Avenue, Xicheng District, Beijing, China Telephone 86-10-66108608 Facsimile 86-10-66107420 E-mail ir@icbc.com.cn
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2 1.3 Company Profile Industrial and Commercial Bank of China was established on 1 January 1984. On 28 October 2005, the Bank was wholly restructured into 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. The Bank has devoted itself to building a world-class modern financial institution with Chinese characteristics. The Bank has a high-quality customer base, a diversified business structure, strong innovation capabilities and market competitiveness. The Bank regards service as the very foundation to seek further development and adheres to creating value through services while providing abundant financial products and superior financial services to over 15.00 million corporate customers and over 780 million personal customers around the world. It has served the high-quality development of the economy and society with its own high-quality development. The Bank has been consciously integrating social responsibilities into its development strategy and operation and management activities, and gaining wide recognition in the aspects of serving the manufacturing industry, promoting inclusive finance, backing rural revitalization, developing green finance and participating in public welfare undertakings. The Bank always keeps in mind its underlying mission of serving the real economy with its principal business, and along with the real economy it prospers, suffers and grows. Taking a risk-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 long-lasting and ever-prosperous 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 and intelligent transformation. The Bank unswervingly delivers specialized services, and pioneers a specialized business model, thus making it “a craftsman in large banking ”. The Bank was ranked the 1 st place among the Top 1000 World Banks by The Banker for the fourteenth consecutive year, and took the 1 st place among the Top 500 Banking Brands of Brand Finance for the tenth consecutive year.
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3 2. Financial Highlights Financial data and indicators in this Results Announcement are prepared in accordance with IFRS Accounting Standards and, unless otherwise specified, are consolidated amounts of the Bank and its subsidiaries and denominated in Renminbi. Financial Data Six months ended 30 June 2026 Six months ended 30 June 2025 Six months ended 30 June 2024 Operating results (in RMB millions) Net interest income 341,237 313,576 313,950 Net fee and commission income 69,235 67,020 67,405 Operating income 446,163 409,082 401,999 Operating expenses 111,379 108,570 105,208 Impairment losses on assets (1) 127,756 104,529 102,069 Operating profit 207,028 195,983 194,722 Profit before taxation 210,010 199,008 197,184 Net profit 176,475 168,803 171,296 Net profit attributable to equity holders of the parent company 173,682 168,103 170,467 Net cash flows from operating activities 1,369,013 786,317 26,983 Per share data (in RMB yuan) Basic earnings per share (2) 0.47 0.46 0.47 Diluted earnings per share (2) 0.47 0.46 0.47 30 June 2026 31 December 2025 31 December 2024 Assets and liabilities (in RMB millions) Total assets 57,070,593 53,477,773 48,821,746 Total loans and advances to customers 31,992,126 30,506,114 28,372,229 Corporate loans 20,092,143 18,841,671 17,482,223 Personal loans 9,000,436 9,002,636 8,957,720 Discounted bills 2,899,547 2,661,807 1,932,286 Allowance for impairment losses on loans (3) 896,048 852,274 815,497 Investment 18,632,768 16,907,415 14,153,576 Total liabilities 52,714,749 49,205,749 44,834,480 Due to customers 39,173,265 37,311,778 34,836,973 Corporate deposits 17,452,118 16,350,593 15,507,405 Personal deposits 21,056,671 20,204,619 18,541,510 Other deposits 238,549 251,921 228,721 Accrued interest 425,927 504,645 559,337 Due to banks and other financial institutions 5,858,397 5,103,247 4,590,965
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4 30 June 2026 31 December 2025 31 December 2024 Equity attributable to equity holders of the parent company 4,326,994 4,244,259 3,969,841 Share capital 356,407 356,407 356,407 Net common equity tier 1 capital (4) 3,940,780 3,837,149 3,624,342 Net tier 1 capital (4) 4,306,278 4,222,676 3,949,453 Net capital base (4) 5,539,090 5,302,796 4,986,531 Risk-weighted assets (4) 29,832,780 28,269,948 25,710,855 Per share data (in RMB yuan) Net asset value per share (5) 11.12 10.83 10.23 Credit rating S&P(6) A A A Moody ’s(6) A1 A1 A1 Notes: (1) Calculated by adding credit impairment losses with impairment losses on other assets. (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 the CSRC. (3) 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. (4) Calculated in accordance with the Rules on Capital Management of Commercial Banks. (5) 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. (6) The rating results are in the form of “long-term foreign currency deposits rating ”.
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5 Financial Indicators Six months ended 30 June 2026 Six months ended 30 June 2025 Six months ended 30 June 2024 Profitability (%) Return on average total assets (1) 0.64* 0.67* 0.75* Return on weighted average equity (2) 8.63* 8.82* 9.53* Net interest spread (3) 1.17* 1.16* 1.24* Net interest margin (4) 1.29* 1.30* 1.43* Return on risk-weighted assets (5)(10) 1.21* 1.28* 1.38* Ratio of net fee and commission income to operating income 15.52 16.38 16.77 Cost-to-income ratio (6) 23.70 25.27 24.79 30 June 2026 31 December 2025 31 December 2024 Asset quality (%) Non-performing loans ( “NPLs”) ratio (7) 1.29 1.31 1.34 Allowance to NPLs (8) 217.58 213.60 214.91 Allowance to total loans ratio (9) 2.80 2.79 2.87 Capital adequacy (%) Common equity tier 1 capital adequacy ratio (10) 13.21 13.57 14.10 Tier 1 capital adequacy ratio (10) 14.43 14.94 15.36 Capital adequacy ratio (10) 18.57 18.76 19.39 Total equity to total assets ratio 7.63 7.99 8.17 Risk-weighted assets to total assets ratio (10) 52.27 52.86 52.66 Notes: * indicates annualised ratios. (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 the 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. (6) Calculated by dividing operating expense (less taxes and surcharges) by operating income. (7) Calculated by dividing the balance of NPLs by total balance of loans and advances to customers. (8) Calculated by dividing allowance for impairment losses on loans by total balance of NPLs. (9) Calculated by dividing allowance for impairment losses on loans by total balance of loans and advances to customers. (10) Calculated in accordance with the Rules on Capital Management of Commercial Banks.
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6 3. Discussion and Analysis 3.1 Financial Statements Analysis 3.1.1 Income Statement Analysis In the first half of 2026, the Bank upheld the guidance of Party building and pursued the five transformations, deeply implementing the political and people-oriented nature of financial work. The initial six months of the 15 th Five-Year Plan period witnessed a robust launch and favorable commencement of all tasks, with operating performance sustaining a steady yet progressive growth trajectory. In the first half of the year, the Bank realized a net profit of RMB176,475 million, representing an increase of 4.5% as compared to the same period of last year. Annualised return on average total assets stood at 0.64%, and annualised return on weighted average equity was 8.63%. Operating income amounted to RMB446,163 million, recording an increase of 9.1%. Specifically, net interest income was RMB341,237 million, rising by 8.8%. Non-interest income reached RMB104,926 million, increasing by 9.9%. Operating expenses amounted to RMB111,379 million, representing an increase of 2.6%, and the cost-to-income ratio was 23.70%. Impairment losses on assets were RMB127,756 million, indicating an increase of 22.2%. Income tax expense increased by 11.0% to RMB33,535 million. CHANGES OF KEY INCOME STATEMENT ITEMS In RMB millions, except for percentages Item Six months ended 30 June 2026 Six months ended 30 June 2025 Increase/ (decrease) Growth rate (%) Net interest income 341,237 313,576 27,661 8.8 Non-interest income 104,926 95,506 9,420 9.9 Operating income 446,163 409,082 37,081 9.1 Less: Operating expenses 111,379 108,570 2,809 2.6 Credit impairment losses 127,018 104,007 23,011 22.1 Impairment losses on other assets 738 522 216 41.4 Operating profit 207,028 195,983 11,045 5.6 Share of results of associates and joint ventures 2,982 3,025 (43) (1.4) Profit before taxation 210,010 199,008 11,002 5.5 Less: Income tax expense 33,535 30,205 3,330 11.0 Net profit 176,475 168,803 7,672 4.5 Attributable to: Equity holders of the parent company 173,682 168,103 5,579 3.3 Non-controlling interests 2,793 700 2,093 299.0
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7 Net Interest Income In the first half of 2026, net interest income amounted to RMB341,237 million, representing an increase of RMB27,661 million or 8.8% as compared to the same period of last year. Interest income amounted to RMB660,777 million, dropping by RMB12,826 million or 1.9%, and interest expenses decreased by RMB40,487 million or 11.2% to RMB319,540 million. Affected by factors such as improved liability costs and optimized structure of assets and liabilities, annualised net interest spread was 1.17%, 1 basis point higher than that of the same period of last year; and annualised net interest margin was 1.29%, 1 basis point lower than that of the same period of last year. AVERAGE YIELD OF INTEREST-GENERATING ASSETS AND AVERAGE COST OF INTEREST-BEARING LIABILITIES In RMB millions, except for percentages Item Six months ended 30 June 2026 Six months ended 30 June 2025 Average balance Interest income/ expense Average yield/cost (%) Average balance Interest income/ expense Average yield/cost (%) Assets Loans and advances to customers 31,433,884 411,856 2.64 29,446,052 426,672 2.92 Investment 16,426,312 202,221 2.48 13,655,563 190,567 2.81 Due from central banks (2) 3,235,237 25,073 1.56 3,070,303 25,685 1.69 Due from banks and other financial institutions (3) 2,326,822 21,627 1.87 2,549,528 30,679 2.43 Total interest-generating assets 53,422,255 660,777 2.49 48,721,446 673,603 2.79 Non-interest-generating assets 3,295,074 2,969,589 Allowance for impairment losses on assets (950,682) (914,606) Total assets 55,766,647 50,776,429 Liabilities Deposits 36,716,724 208,994 1.15 34,393,438 247,503 1.45 Due to banks and other financial institutions (3) 9,485,005 78,751 1.67 7,458,573 74,092 2.00 Debt securities issued and certificates of deposit 2,619,290 31,795 2.45 2,810,629 38,432 2.76 Total interest-bearing liabilities 48,821,019 319,540 1.32 44,662,640 360,027 1.63 Non-interest-bearing liabilities 2,429,248 2,280,591 Total liabilities 51,250,267 46,943,231 Net interest income 341,237 313,576 Net interest spread 1.17 1.16 Net interest margin 1.29 1.30 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 period and at the end of the period. (2) Due from central banks mainly includes mandatory reserves and surplus reserves with central banks. (3) Due from banks and other financial institutions includes the amount of reverse repurchase agreements, and due to banks and other financial institutions includes the amount of repurchase agreements.
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8 ANALYSIS OF CHANGES IN INTEREST INCOME AND EXPENSE In RMB millions Item Comparison between six months ended 30 June 2026 and 30 June 2025 Increase/(decrease) due to Net increase/ (decrease)Volume Interest rate Assets Loans and advances to customers 26,070 (40,886) (14,816) Investment 34,000 (22,346) 11,654 Due from central banks 1,367 (1,979) (612) Due from banks and other financial institutions (1,972) (7,080) (9,052) Changes in interest income 59,465 (72,291) (12,826) Liabilities Deposits 12,657 (51,166) (38,509) Due to banks and other financial institutions 16,864 (12,205) 4,659 Debt securities issued and certificates of deposit (2,316) (4,321) (6,637) Changes in interest expenses 27,205 (67,692) (40,487) Changes in net interest income 32,260 (4,599) 27,661 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 driven by both volume and interest rate have been allocated to the changes driven by business volume. Interest Income Interest Income on Loans and Advances to Customers Interest income on loans and advances to customers was RMB411,856 million, RMB14,816 million or 3.5% lower compared to the same period of last year, mainly due to the decrease of 28 basis points in the average yield of loans and advances to customers, and the increase of 6.8% in the average balance partially offset the effect of yield decrease. ANALYSIS OF THE AVERAGE YIELD OF LOANS AND ADVANCES TO CUSTOMERS BY MATURITY STRUCTURE In RMB millions, except for percentages Item Six months ended 30 June 2026 Six months ended 30 June 2025 Average balance Interest income Average yield (%) Average balance Interest income Average yield (%) Short-term loans 8,714,730 86,661 2.01 7,488,259 85,593 2.31 Medium to long-term loans 22,719,154 325,195 2.89 21,957,793 341,079 3.13 Total loans and advances to customers 31,433,884 411,856 2.64 29,446,052 426,672 2.92
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9 ANALYSIS OF THE AVERAGE YIELD OF LOANS AND ADVANCES TO CUSTOMERS BY BUSINESS LINE In RMB millions, except for percentages Item Six months ended 30 June 2026 Six months ended 30 June 2025 Average balance Interest income Average yield (%) Average balance Interest income Average yield (%) Corporate loans 18,594,281 247,771 2.69 17,277,001 247,957 2.89 Discounted bills 2,689,132 10,375 0.78 2,059,556 9,590 0.94 Personal loans 8,796,977 123,692 2.84 8,831,878 136,218 3.11 Overseas business 1,353,494 30,018 4.47 1,277,617 32,907 5.19 Total loans and advances to customers 31,433,884 411,856 2.64 29,446,052 426,672 2.92 Interest Income on Investment Interest income on investment amounted to RMB202,221 million, representing an increase of RMB11,654 million or 6.1% as compared to the same period of last year, mainly due to the increase of 20.3% in the average balance of investment, and the decrease of 33 basis points in the average yield partially offset the effect of scale growth. Interest Income on Due from Central Banks Interest income on due from central banks was RMB25,073 million, representing a decrease of RMB612 million or 2.4% as compared to the same period of last year. Interest Income on Due from Banks and Other Financial Institutions Interest income on due from banks and other financial institutions was RMB21,627 million, representing a decrease of RMB9,052 million or 29.5% as compared to the same period of last year, primarily due to the decrease in the average yield of lending. Interest Expense Interest Expense on Deposits Interest expense on deposits amounted to RMB208,994 million, representing a decrease of RMB38,509 million or 15.6% as compared to the same period of last year, mainly due to the decrease of 30 basis points in the average cost. The Bank continued to standardize interest expense management, and improved the implementation effects of interest rate self-regulation initiatives, to achieve a steady decline in interest payment costs.
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10 ANALYSIS OF AVERAGE DEPOSIT COST BY PRODUCTS In RMB millions, except for percentages Item Six months ended 30 June 2026 Six months ended 30 June 2025 Average balance Interest expense Average cost (%) Average balance Interest expense Average cost (%) Corporate deposits Time deposits 8,257,575 62,861 1.54 7,679,082 74,152 1.95 Demand deposits 7,011,123 16,270 0.47 6,691,349 20,567 0.62 Subtotal 15,268,698 79,131 1.05 14,370,431 94,719 1.33 Personal deposits Time deposits 13,371,847 111,735 1.69 12,369,332 125,318 2.04 Demand deposits 6,798,186 1,753 0.05 6,391,250 2,222 0.07 Subtotal 20,170,033 113,488 1.13 18,760,582 127,540 1.37 Overseas business 1,277,993 16,375 2.58 1,262,425 25,244 4.03 Total deposits 36,716,724 208,994 1.15 34,393,438 247,503 1.45 Interest Expense on Due to Banks and Other Financial Institutions Interest expense on due to banks and other financial institutions was RMB78,751 million, representing an increase of RMB4,659 million or 6.3% as compared to the same period of last year, principally attributable to the proper arrangements of borrowing funds and the diversified expansion of liability sources. Interest Expense on Debt Securities Issued and Certificates of Deposit Interest expense on debt securities issued and certificates of deposit was RMB31,795 million, indicating a decrease of RMB6,637 million or 17.3% over the same period of last year, mainly attributable to the drop of 31 basis points in average cost of debt securities issued and certificates of deposit, and the decreased scale of the negotiable certificates of deposit ( “NCDs”). Non-Interest Income In the first half of the year, non-interest income increased by RMB9,420 million or 9.9% to RMB104,926 million, accounting for 23.5% of the Bank ’s operating income. Specifically, net fee and commission income increased by RMB2,215 million or 3.3% to RMB69,235 million, and other non-interest related gains increased by RMB7,205 million or 25.3% to RMB35,691 million.
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11 NET FEE AND COMMISSION INCOME In RMB millions, except for percentages Item Six months ended 30 June 2026 Six months ended 30 June 2025 Increase/ (decrease) Growth rate (%) Settlement, clearing and cash management 23,421 23,216 205 0.9 Investment banking business 14,468 14,775 (307) (2.1) Personal wealth management and private banking services 11,457 9,990 1,467 14.7 Corporate wealth management services 8,909 7,212 1,697 23.5 Bank card business 7,782 8,823 (1,041) (11.8) Asset custody services 4,597 4,274 323 7.6 Guarantee and commitment business 1,862 2,336 (474) (20.3) Trust and agency services 1,376 1,463 (87) (5.9) Others 2,719 2,073 646 31.2 Fee and commission income 76,591 74,162 2,429 3.3 Less: Fee and commission expense 7,356 7,142 214 3.0 Net fee and commission income 69,235 67,020 2,215 3.3 In the first half of the year, the Bank ’s fee and commission income was RMB76,591 million, representing a year-on-year increase of RMB2,429 million or 3.3%. The income from corporate wealth management services, personal wealth management and private banking services recorded an increase of RMB1,697 million and RMB1,467 million respectively, mainly because the Bank increased income from businesses such as agency precious metals, agency fund and agency wealth management products by seizing market opportunities. Other income increased by RMB646 million, mainly due to the sound growth in pension business. Affected by external factors such as market environment changes, income from bank card business decreased. The Bank ’s proactive adjustment to lower fee rates for guarantee and commitment business resulted in a decline in relevant product income. OTHER NON-INTEREST RELATED GAINS In RMB millions, except for percentages Item Six months ended 30 June 2026 Six months ended 30 June 2025 Increase/ (decrease) Growth rate (%) Net trading income 10,012 7,613 2,399 31.5 Net gains on financial investments 26,449 18,294 8,155 44.6 Other operating (expense)/income, net (770) 2,579 (3,349) (129.9) Total 35,691 28,486 7,205 25.3
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12 Other non-interest related gains amounted to RMB35,691 million, representing an increase of RMB7,205 million or 25.3% as compared to the same period of last year. Among these, the increase in net trading income was mainly due to the increase in unrealised gains on trading bond investment; the increase in net gains on financial investments was primarily because of the increase in unrealised gains on fund investment and bond investment; and other net operating expense resulted from the increase in net losses on foreign exchange and exchange rate products and net expenses on insurance service. Operating Expenses In RMB millions, except for percentages Item Six months ended 30 June 2026 Six months ended 30 June 2025 Increase/ (decrease) Growth rate (%) Staff costs 66,607 64,163 2,444 3.8 Property and equipment expenses 13,486 13,156 330 2.5 Taxes and surcharges 5,620 5,199 421 8.1 Amortisation 2,648 2,568 80 3.1 Others 23,018 23,484 (466) (2.0) Total 111,379 108,570 2,809 2.6 Impairment Losses In the first half of 2026, the Bank set aside the credit impairment losses of RMB127,018 million, indicating an increase of RMB23,011 million or 22.1% as compared to the same period of last year. Specifically, impairment losses on loans were RMB123,016 million, indicating an increase of RMB20,801 million or 20.4%. Impairment losses on other assets were RMB738 million, indicating an increase of RMB216 million or 41.4%. Please refer to “Note 9. to the Financial Statements: Credit Impairment Losses; Note 23. to the Financial Statements: Impairment Allowance ” for details. Income Tax Expense Income tax expense increased by RMB3,330 million or 11.0% to RMB33,535 million as compared to the same period of last year. The effective tax rate was 15.97%, lower than the statutory tax rate of 25%, primarily because the interest income on Chinese government bonds and local government bonds was exempted from tax under the relevant tax law.
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13 Summary of Geographical Segment Information In RMB millions, except for percentages Item Six months ended 30 June 2026 Six months ended 30 June 2025 Amount Percentage (%) Amount Percentage (%) Operating income 446,163 100.0 409,082 100.0 Head Office 36,080 8.1 29,154 7.1 Yangtze River Delta 82,859 18.6 77,504 18.9 Pearl River Delta 51,528 11.5 48,772 11.9 Bohai Rim 91,333 20.5 86,064 21.0 Central China 57,721 12.9 54,444 13.3 Western China 62,753 14.1 59,608 14.6 Northeastern China 13,772 3.1 13,727 3.4 Overseas and others 50,194 11.2 39,861 9.8 Eliminations (77) (0.0) (52) (0.0) Profit before taxation 210,010 100.0 199,008 100.0 Head Office (33,985) (16.2) (20,069) (10.1) Yangtze River Delta 53,332 25.4 49,744 25.0 Pearl River Delta 23,219 11.1 21,887 11.0 Bohai Rim 65,388 31.1 58,428 29.4 Central China 26,037 12.4 24,382 12.3 Western China 31,025 14.8 31,505 15.8 Northeastern China 7,131 3.4 7,121 3.6 Overseas and others 37,863 18.0 26,010 13.0 Eliminations – – – – Note: Please see “Note 42. to the Financial Statements: Segment Information ” for details. 3.1.2 Balance Sheet Analysis In the first half of 2026, the Bank earnestly implemented the macroeconomic and financial policies and regulatory requirements, continued to dynamically optimize the total volume and the strategic structure of assets and liabilities, advanced the five transformations, and strove to achieve a dynamic balance of value creation, market position, risk control and capital constraints.
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14 The Bank adhered to the integrated development strategy of investment and financing. Focusing on the modern layout, the Bank supported the high-quality economic development, refined and deepened the “Five Priorities ” of finance, and intensified support for major national strategies, key fields and weak links. The Bank enhanced the diversification of liabilities, continued to promote the GBC+ projects, and consolidated the foundation for the growth of due to customers, so that its deposits maintained the high-quality development trend. The Bank expanded and stabilized the source channels of funds, promoted the matching of fund source and fund utilization, and optimized the management efficiency of assets and liabilities. Assets Deployment As at the end of June, total assets of the Bank amounted to RMB57,070,593 million, RMB3,592,820 million or 6.7% higher than that at the end of the prior year. Specifically, total loans and advances to customers (collectively referred to as “total loans ”) increased by RMB1,486,012 million or 4.9% to RMB31,992,126 million, investment increased by RMB1,725,353 million or 10.2% to RMB18,632,768 million, and cash and balances with central banks decreased by RMB156,806 million or 4.3% to RMB3,517,752 million. Structure of assets 2026.6.30 2025.12.31 54.6% Net loans and advances to customers 55.6% 32.6% Investment 31.6% 6.2% Cash and balances with central banks 6.9% 1.9% Due from banks and other financial institutions 2.4% 1.8% Reverse repurchase agreements 1.0% 2.9% Others 2.5%
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15 In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Amount Percentage (%) Amount Percentage (%) Total loans and advances to customers 31,992,126 – 30,506,114 – Add: Accrued interest 65,947 – 57,995 – Less: Allowance for impairment losses on loans and advances to customers measured at amortised cost 895,553 – 851,750 – Net loans and advances to customers (1) 31,162,520 54.6 29,712,359 55.6 Investment 18,632,768 32.6 16,907,415 31.6 Cash and balances with central banks 3,517,752 6.2 3,674,558 6.9 Due from banks and other financial institutions 1,101,502 1.9 1,264,019 2.4 Reverse repurchase agreements 1,029,778 1.8 530,737 1.0 Others 1,626,273 2.9 1,388,685 2.5 Total assets 57,070,593 100.0 53,477,773 100.0 Note: (1) Please see “Note 17. to the Financial Statements: Loans and Advances to Customers ” for details. Loan The Bank was earnestly committed to implementing major national strategies, and proactively acted on a raft of incremental policies, including coordination of fiscal and financial efforts to boost domestic demand. With a focus on key areas such as “Five Priorities ”, the construction of modernized industrial system, the development of new quality productive forces, and the expansion of domestic demand, the Bank constantly played the role as the main force in serving the real economy. The Bank continued to optimize its product portfolio, refine service processes, and advance the digital and intelligent transformation of its personal loan business, with specific emphasis on housing, consumption, and business operations. As at the end of June, total loans amounted to RMB31,992,126 million, RMB1,486,012 million or 4.9% higher compared with the end of the previous year, of which RMB-denominated loans of domestic branches increased by RMB1,426,384 million or 4.9% to RMB30,295,874 million. Distribution of loans by business line 2026.6.30 2025.12.31 62.8% Corporate loans 61.8% 9.1% Discounted bills 8.7% 28.1% Personal loans 29.5%
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16 DISTRIBUTION OF LOANS BY BUSINESS LINE In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Amount Percentage (%) Amount Percentage (%) Corporate loans 20,092,143 62.8 18,841,671 61.8 Short-term corporate loans 4,955,482 15.5 4,280,312 14.0 Medium to long-term corporate loans 15,136,661 47.3 14,561,359 47.8 Discounted bills 2,899,547 9.1 2,661,807 8.7 Personal loans 9,000,436 28.1 9,002,636 29.5 Residential mortgages 5,740,691 17.9 5,875,868 19.3 Personal consumption loans 608,639 1.9 499,014 1.6 Personal business loans 2,053,949 6.4 1,930,219 6.3 Credit card overdrafts 597,157 1.9 697,535 2.3 Total 31,992,126 100.0 30,506,114 100.0 Proactively aligning with the funding needs of the construction of key projects under the 15 th Five-Year Plan and projects of “Major Strategies and Key Fields ”, the Bank stepped up support for priority areas such as the “Renewal and Trade-in ” and consumption stimulus. Loans to manufacturing, sci-tech innovation, green finance, inclusive finance and other key fields witnessed sound development trends. Corporate loans rose by RMB1,250,472 million or 6.6% from the end of last year. Specifically, short-term corporate loans increased by RMB675,170 million or 15.8%, and medium to long-term corporate loans increased by RMB575,302 million or 4.0%. The Bank closely followed changes in real estate industry policies and market conditions, and steadily promoted the balanced development of residential mortgages. It continuously optimized the product functions of personal consumption loans, actively responded to the implementation of subsidy policies for consumption loans, and helped foster new growth drivers in services consumption. Focusing on the production, operation and consumption needs of key customer groups such as small and micro enterprise owners and self-employed businesses, the Bank continued to enhance service quality, and expanded and optimized personal business loans through product optimization and innovation. Personal loans decreased by RMB2,200 million compared with the end of last year. Specifically, personal consumption loans grew by RMB109,625 million or 22.0%; personal business loans grew by RMB123,730 million or 6.4%; and residential mortgages and credit card overdrafts decreased to some extent.
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17 DISTRIBUTION OF LOANS BY FIVE-CATEGORY CLASSIFICATION In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Amount Percentage (%) Amount Percentage (%) Pass 30,950,716 96.74 29,512,445 96.74 Special Mention 629,592 1.97 594,656 1.95 NPLs 411,818 1.29 399,013 1.31 Substandard 111,886 0.35 90,667 0.30 Doubtful 72,407 0.23 75,909 0.25 Loss 227,525 0.71 232,437 0.76 Total 31,992,126 100.00 30,506,114 100.00 According to the five-category classification, pass loans amounted to RMB30,950,716 million at the end of June, representing an increase of RMB1,438,271 million compared with the end of the previous year and accounting for 96.74% of total loans. Special mention loans stood at RMB629,592 million, representing an increase of RMB34,936 million and accounting for 1.97% of the total, with an increase of 0.02 percentage points. NPLs amounted to RMB411,818 million, showing an increase of RMB12,805 million, and the NPL ratio was 1.29%, with a decrease of 0.02 percentage points. DISTRIBUTION OF LOANS AND NPLS In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Loan Percentage (%) NPLs NPL ratio (%) Loan Percentage (%) NPLs NPL ratio (%) Corporate loans 20,092,143 62.8 252,867 1.26 18,841,671 61.8 256,676 1.36 Short-term corporate loans 4,955,482 15.5 73,965 1.49 4,280,312 14.0 73,499 1.72 Medium to long-term corporate loans 15,136,661 47.3 178,902 1.18 14,561,359 47.8 183,177 1.26 Discounted bills 2,899,547 9.1 – – 2,661,807 8.7 – – Personal loans 9,000,436 28.1 158,951 1.77 9,002,636 29.5 142,337 1.58 Residential mortgages 5,740,691 17.9 74,320 1.29 5,875,868 19.3 62,250 1.06 Personal consumption loans 608,639 1.9 15,361 2.52 499,014 1.6 12,877 2.58 Personal business loans 2,053,949 6.4 37,203 1.81 1,930,219 6.3 35,088 1.82 Credit card overdrafts 597,157 1.9 32,067 5.37 697,535 2.3 32,122 4.61 Total 31,992,126 100.0 411,818 1.29 30,506,114 100.0 399,013 1.31 At the end of June, corporate NPLs were RMB252,867 million, showing a decrease of RMB3,809 million compared with the end of the previous year, and representing an NPL ratio of 1.26%, with a decrease of 0.10 percentage points. Personal NPLs amounted to RMB158,951 million, showing an increase of RMB16,614 million, and representing an NPL ratio of 1.77%, with an increase of 0.19 percentage points.
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18 DISTRIBUTION OF CORPORATE LOANS AND NON-PERFORMING CORPORATE LOANS OF DOMESTIC BRANCHES BY INDUSTRY OF LOAN CUSTOMERS In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Loan Percentage (%) NPLs NPL ratio (%) Loan Percentage (%) NPLs NPL ratio (%) Transportation, storage and postal services 4,102,402 21.9 11,568 0.28 4,019,287 22.9 11,314 0.28 Manufacturing 3,103,174 16.5 36,331 1.17 2,738,732 15.6 42,498 1.55 Leasing and commercial services 3,048,151 16.3 42,237 1.39 2,781,666 15.8 40,856 1.47 Water, environment and public utility management 2,030,955 10.8 13,067 0.64 1,907,924 10.9 13,262 0.70 Production and supply of electricity, heating, gas and water 1,831,889 9.8 4,075 0.22 1,849,764 10.5 5,320 0.29 Wholesale and retail 1,071,649 5.7 26,200 2.44 952,526 5.4 25,726 2.70 Real estate 858,546 4.6 53,851 6.27 864,576 4.9 46,576 5.39 Construction 632,018 3.4 12,570 1.99 535,865 3.1 13,500 2.52 Science, education, culture and sanitation 514,251 2.7 8,053 1.57 463,647 2.6 8,793 1.90 Mining 438,537 2.3 1,414 0.32 393,660 2.2 1,519 0.39 Others 1,123,822 6.0 16,073 1.43 1,052,749 6.1 16,316 1.55 Total 18,755,394 100.0 225,439 1.20 17,560,396 100.0 225,680 1.29 The Bank continued to optimize its loan structure and continuously improved the quality and efficiency of serving the real economy. Specifically, loans to manufacturing increased by RMB364,442 million over the end of the previous year, an increase of 13.3%, mainly granted to leading enterprises and key projects in high-end manufacturing industries such as aerospace equipment, fine chemicals, and new-generation information technology. Loans to leasing and commercial services increased by RMB266,485 million, an increase of 9.6%, mainly directed towards areas such as investment and asset management, enterprise headquarters, and business services. Loans to the water, environment and public utility management increased by RMB123,031 million, an increase of 6.4%, mainly directed towards major projects in areas such as new urbanization and water conservancy facilities, as well as public welfare sectors such as urban public utilities and environmental improvement. Loans to wholesale and retail increased by RMB119,123 million, an increase of 12.5%, mainly due to the continued effect of the national policies for stabilizing the economy and promoting consumption, leading to increased capital demand from bulk commodity traders and retailers such as department stores, supermarkets, and home appliance retailers. Loans to the construction sector increased by RMB96,153 million, an increase of 17.9%, mainly due to the increased national support for fixed asset investment, the accelerated progress of major projects in areas such as new urbanization, water conservancy facilities, and urban renewal, and the increased working capital demand of construction enterprises. The Bank continued to strengthen risk management of loans in various industries, improved the quality and efficiency in the disposal of non-performing assets, and properly carried out risk prevention and mitigation in key areas. With these efforts, the loan quality was generally stable.
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19 DISTRIBUTION OF LOANS AND NPLS BY GEOGRAPHIC AREA In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Loan Percentage (%) NPLs NPL ratio (%) Loan Percentage (%) NPLs NPL ratio (%) Head Office 785,984 2.5 39,138 4.98 849,602 2.8 40,582 4.78 Yangtze River Delta 7,132,786 22.2 59,437 0.83 6,756,827 22.2 55,719 0.82 Pearl River Delta 4,820,540 15.1 95,297 1.98 4,613,631 15.1 86,732 1.88 Bohai Rim 5,390,545 16.8 53,390 0.99 5,109,713 16.7 55,496 1.09 Central China 5,181,270 16.2 54,245 1.05 4,853,907 15.9 48,475 1.00 Western China 5,957,362 18.6 61,469 1.03 5,688,006 18.7 59,262 1.04 Northeastern China 1,199,708 3.8 19,526 1.63 1,155,520 3.8 19,974 1.73 Overseas and others 1,523,931 4.8 29,316 1.92 1,478,908 4.8 32,773 2.22 Total 31,992,126 100.0 411,818 1.29 30,506,114 100.0 399,013 1.31 MOVEMENTS OF ALLOWANCE FOR IMPAIRMENT LOSSES ON LOANS In RMB millions Item Movements of allowance for impairment losses on loans and advances to customers measured at amortised cost Movements of allowance for impairment losses on loans and advances to customers measured at FVTOCI Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Balance at 1 January 2026 349,667 166,682 335,401 851,750 242 136 146 524 Transfer: to stage 1 24,390 (22,056) (2,334) – – – – – to stage 2 (8,299) 11,430 (3,131) – – – – – to stage 3 (2,909) (23,227) 26,136 – – (11) 11 – Charge/(reverse) 49,442 16,204 57,385 123,031 (31) (39) 55 (15) Write-offs and transfer out – – (81,911) (81,911) – – – – Recoveries of loans and advances previously written off – – 5,351 5,351 – – – – Other movements (328) (1,403) (937) (2,668) (1) (14) 1 (14) Balance at 30 June 2026 411,963 147,630 335,960 895,553 210 72 213 495 Note: Please see “Note 17. to the Financial Statements: Loans and Advances to Customers ” for details. As at the end of June, the allowance for impairment losses on loans stood at RMB896,048 million, of which RMB895,553 million at amortised cost, and RMB495 million at fair value through other comprehensive income. Allowance to NPLs was 217.58%, showing an increase of 3.98 percentage points over the end of last year; allowance to total loans ratio was 2.80%, showing an increase of 0.01 percentage points.
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20 DISTRIBUTION OF LOANS BY COLLATERAL In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Amount Percentage (%) Amount Percentage (%) Loans secured by mortgages 10,894,058 34.1 10,803,253 35.4 Pledged loans 5,477,608 17.1 4,778,472 15.7 Guaranteed loans 2,793,747 8.7 2,753,819 9.0 Unsecured loans 12,826,713 40.1 12,170,570 39.9 Total 31,992,126 100.0 30,506,114 100.0 OVERDUE LOANS In RMB millions, except for percentages Overdue periods At 30 June 2026 At 31 December 2025 Amount % of total loans Amount % of total loans Less than 3 months 164,057 0.51 130,307 0.43 3 months to 1 year 146,784 0.46 136,903 0.45 1 to 3 years 149,190 0.47 145,087 0.48 Over 3 years 52,592 0.16 50,438 0.16 Total 512,623 1.60 462,735 1.52 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 RMB512,623 million, representing an increase of RMB49,888 million from the end of the previous year, among which, loans overdue for over 3 months amounted to RMB348,566 million, representing an increase of RMB16,138 million. RESCHEDULED LOANS Rescheduled loans and advances measured in accordance with the Measures for Risk Classification of Financial Assets of Commercial Banks amounted to RMB129,495 million, representing a decrease of RMB26,532 million from the end of the previous year. Specifically, rescheduled loans and advances overdue for over 3 months amounted to RMB43,901 million, representing an increase of RMB4,295 million.
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21 LOAN MIGRATION RATIO In percentages Item At 30 June 2026 At 31 December 2025 At 31 December 2024 Pass 1.45 0.97 1.09 Special mention 29.15 17.44 17.44 Substandard 120.81 59.24 59.86 Doubtful 128.29 68.89 53.45 Note: Calculated according to the Circular on Amending the Definitions and Calculation Formula of Basic Indicators for Off-Site Supervision of the Banking Sector issued by the Former CBIRC in 2022, and measured at the Group ’s level. BORROWER CONCENTRATION As at the end of June, the total amount of loans granted by the Bank to the single largest borrower and top ten single borrowers accounted for 4.2% and 15.8% of the Bank ’s net capital base, respectively. The total amount of loans granted to the top ten single borrowers was RMB874,204 million, accounting for 2.7% of the total loans. Item At 30 June 2026 At 31 December 2025 At 31 December 2024 Loan concentration to the single largest borrower (%) 4.2 4.4 4.4 Loan concentration to the top ten borrowers (%) 15.8 19.4 21.6 Investment The Bank reinforced its support for serving the real economy, adapted to changes in the social financing structure, actively carried out bond investment, coordinated the investment value and prevention and control of interest rate risk, and reasonably arranged the bond types and term structure. As at the end of June, investment amounted to RMB18,632,768 million, representing an increase of RMB1,725,353 million or 10.2% from the end of the previous year. Among these, bonds rose by RMB1,698,843 million or 10.4% to RMB18,011,552 million.
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22 In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Amount Percentage (%) Amount Percentage (%) Bonds 18,011,552 96.7 16,312,709 96.5 Equity instruments 225,239 1.2 234,886 1.4 Funds and others 249,844 1.3 221,154 1.3 Accrued interest 146,133 0.8 138,666 0.8 Total 18,632,768 100.0 16,907,415 100.0 DISTRIBUTION OF INVESTMENT IN BONDS BY ISSUERS In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Amount Percentage (%) Amount Percentage (%) Government and central bank bonds 13,599,878 75.5 12,565,387 77.0 Policy bank bonds 1,670,660 9.3 1,370,230 8.4 Bonds of banks and other financial institutions 1,662,568 9.2 1,459,991 9.0 Enterprise bonds 1,078,446 6.0 917,101 5.6 Total 18,011,552 100.0 16,312,709 100.0 In terms of distribution by issuers, government and central bank bonds increased by RMB1,034,491 million or 8.2% over the end of last year; policy bank bonds increased by RMB300,430 million or 21.9%; bonds of banks and other financial institutions went up by RMB202,577 million or 13.9%; and enterprise bonds increased by RMB161,345 million or 17.6%. DISTRIBUTION OF INVESTMENT IN BONDS BY REMAINING MATURITY In RMB millions, except for percentages Remaining maturity At 30 June 2026 At 31 December 2025 Amount Percentage (%) Amount Percentage (%) Undated (1) 19 0.0 107 0.0 Less than 3 months 1,059,188 5.9 1,136,887 7.0 3 to 12 months 2,273,027 12.6 2,217,214 13.6 1 to 5 years 7,631,449 42.4 6,624,654 40.6 Over 5 years 7,047,869 39.1 6,333,847 38.8 Total 18,011,552 100.0 16,312,709 100.0 Note: (1) Refers to overdue bonds.
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23 DISTRIBUTION OF INVESTMENT IN BONDS BY CURRENCY In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Amount Percentage (%) Amount Percentage (%) RMB-denominated bonds 16,797,967 93.3 15,213,730 93.3 USD-denominated bonds 763,530 4.2 697,570 4.3 Other foreign currency bonds 450,055 2.5 401,409 2.4 Total 18,011,552 100.0 16,312,709 100.0 In terms of currency structure, RMB-denominated bonds rose by RMB1,584,237 million or 10.4% over the end of last year; USD-denominated bonds increased by an equivalent of RMB65,960 million or 9.5%; and other foreign currency bonds increased by an equivalent of RMB48,646 million or 12.1%. During the reporting period, the Bank reasonably arranged the bond currency structure based on changes in market interest rates and foreign-currency fund positions, in consideration of bond liquidity, safety and yield. DISTRIBUTION OF INVESTMENT BY MEASURING METHOD In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Amount Percentage (%) Amount Percentage (%) Financial investments measured at fair value through profit or loss 1,019,652 5.5 943,953 5.6 Financial investments measured at fair value through other comprehensive income 4,156,964 22.3 3,823,279 22.6 Financial investments measured at amortised cost 13,456,152 72.2 12,140,183 71.8 Total 18,632,768 100.0 16,907,415 100.0 As at the end of June, the Group held RMB3,242,919 million of financial bonds 1, including RMB1,670,660 million of policy bank bonds and RMB1,572,259 million of bonds issued by banks and non-bank financial institutions, accounting for 51.5% and 48.5% of financial bonds, respectively. 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.
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24 TOP 10 FINANCIAL BONDS HELD BY THE BANK In RMB millions, except for percentages Bond name Nominal value Annual interest rate (1) (%) Maturity date Allowance for impairment losses (2) Policy bank bonds 2025 55,235 1.47 14 February 2028 – Policy bank bonds 2025 46,881 1.59 15 April 2028 – Policy bank bonds 2025 29,114 1.32 7 January 2028 – Policy bank bonds 2024 28,416 1.80 2 September 2027 – Policy bank bonds 2025 27,853 1.61 7 August 2028 – Policy bank bonds 2024 27,776 1.85 24 July 2029 – Policy bank bonds 2024 27,477 1.67 13 September 2027 – Policy bank bonds 2024 26,809 1.80 23 July 2027 – Policy bank bonds 2026 25,229 1.69 11 March 2031 – Policy bank bonds 2019 23,072 3.45 20 September 2029 – Notes: (1) Annual interest rate refers to the coupon rate of the corresponding bonds. (2) Excludes stage 1 allowance for impairment losses set aside in accordance with the expected credit loss model. Reverse Repurchase Agreements Reverse repurchase agreements amounted to RMB1,029,778 million, representing an increase of RMB499,041 million or 94.0% from the end of the previous year, mainly because the Bank increased lending to the market based on market and fund changes. Liabilities As at the end of June, total liabilities reached RMB52,714,749 million, an increase of RMB3,509,000 million or 7.1% compared with the end of last year. Structure of liabilities 2026.6.30 2025.12.31 74.3% Due to customers 75.8% 11.1% Due to banks and other financial institutions 10.4% 5.8% Repurchase agreements 5.2% 4.8% Debt securities issued 4.5% 4.0% Others 4.1%
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25 In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Amount Percentage (%) Amount Percentage (%) Due to customers 39,173,265 74.3 37,311,778 75.8 Due to banks and other financial institutions 5,858,397 11.1 5,103,247 10.4 Repurchase agreements 3,037,969 5.8 2,536,376 5.2 Debt securities issued 2,551,700 4.8 2,216,807 4.5 Others 2,093,418 4.0 2,037,541 4.1 Total liabilities 52,714,749 100.0 49,205,749 100.0 Due to Customers Oriented towards high-quality deposit development, the Bank solidly advanced the GBC+ projects, fully exerted the Group ’s advantages in comprehensive financial services, maintained sound business development trend in due to customers, and achieved positive results in the stability of daily average deposits, consolidation of customer base, and liability cost optimization, etc. As at the end of June, due to customers was RMB39,173,265 million, RMB1,861,487 million or 5.0% higher than that at the end of the previous year. In terms of customer structure, corporate deposits increased by RMB1,101,525 million or 6.7%; and personal deposits increased by RMB852,052 million or 4.2%. In terms of maturity structure, time deposits increased by RMB1,731,828 million or 7.8%, while demand deposits increased by RMB221,749 million or 1.5%. In terms of currency structure, RMB deposits stood at RMB37,285,940 million, an increase of RMB1,782,671 million or 5.0%. Foreign currency deposits were equivalent to RMB1,887,325 million, representing an increase of RMB78,816 million or 4.4%. Distribution of due to customers by business line 2026.6.30 2025.12.31 44.6% Corporate deposits 43.8% 53.7% Personal deposits 54.1% 0.6% Other deposits 0.7% 1.1% Accrued interest 1.4%
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26 DISTRIBUTION OF DUE TO CUSTOMERS BY BUSINESS LINE In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Amount Percentage (%) Amount Percentage (%) Corporate deposits Time deposits 9,827,367 25.1 8,831,506 23.6 Demand deposits 7,624,751 19.5 7,519,087 20.2 Subtotal 17,452,118 44.6 16,350,593 43.8 Personal deposits Time deposits 14,005,565 35.7 13,269,598 35.5 Demand deposits 7,051,106 18.0 6,935,021 18.6 Subtotal 21,056,671 53.7 20,204,619 54.1 Other deposits (1) 238,549 0.6 251,921 0.7 Accrued interest 425,927 1.1 504,645 1.4 Total 39,173,265 100.0 37,311,778 100.0 Note: (1) Includes outward remittance and remittance payables. DISTRIBUTION OF DUE TO CUSTOMERS BY GEOGRAPHIC AREA In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Amount Percentage (%) Amount Percentage (%) Head Office 28,869 0.1 32,459 0.1 Yangtze River Delta 7,308,343 18.6 6,981,254 18.7 Pearl River Delta 4,896,912 12.5 4,648,119 12.5 Bohai Rim 10,968,803 28.0 10,422,009 27.9 Central China 5,993,183 15.3 5,646,032 15.1 Western China 6,145,231 15.7 5,830,068 15.6 Northeastern China 2,506,128 6.4 2,451,230 6.6 Overseas and others 1,325,796 3.4 1,300,607 3.5 Total 39,173,265 100.0 37,311,778 100.0 Shareholders ’ Equity As at the end of June, shareholders ’ equity amounted to RMB4,355,844 million in aggregate, RMB83,820 million or 2.0% higher than that at the end of the previous year. Equity attributable to equity holders of the parent company recorded an increase of RMB82,735 million or 1.9% to RMB4,326,994 million. Please refer to the “Consolidated Statement of Changes in Equity ” for details.
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27 Off-Balance Sheet Items 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 derivative financial instruments, please refer to “Note 15. to the Financial Statements: Derivative Financial Instruments ”. For details on contingencies and commitments, please refer to “Note 40. to the Financial Statements: Commitments and Contingent Liabilities ”. 3.1.3 Analysis on Statement of Cash Flows Net cash inflows from operating activities amounted to RMB1,369,013 million, representing an increase of RMB582,696 million as compared to the same period of last year, mainly attributable to the increase in net increase of repurchase agreements and the decrease in net increase of loans and advances to customers. Specifically, cash outflows of operating assets decreased by RMB146,355 million and cash inflows of operating liabilities increased by RMB383,892 million. Net cash outflows from investing activities amounted to RMB1,454,367 million. Specifically, cash inflows were RMB3,030,325 million, representing a decrease of RMB29,607 million as compared to the same period of last year, mainly due to the decreased cash proceeds from the sale and redemption of financial investments; and cash outflows were RMB4,484,692 million, representing an increase of RMB247,088 million, mainly due to the increase in purchase of financial investments. Net cash inflows from financing activities amounted to RMB213,990 million, of which, cash inflows were RMB1,440,182 million, representing a decrease of RMB368,983 million as compared to the same period of last year, mainly due to the decreased cash proceeds from the issuance of debt securities; and cash outflows were RMB1,226,192 million, representing a decrease of RMB46,645 million, mainly due to the decreased cash payment for repayments of debt securities. 3.1.4 Changes of Major Accounting Policies For changes of major accounting policies during the reporting period, please refer to “Note 2. to the Financial Statements: Basis of Preparation and Material Accounting Policy Information ”. 3.1.5 Reconciliation of Differences between the Financial Statements Prepared under PRC GAAP and Those under IFRS Accounting Standards In respect of the financial statements of the Bank prepared under PRC GAAP and those under IFRS Accounting Standards, net profit attributable to equity holders of the parent company for the six months ended 30 June 2026 and equity attributable to equity holders of the parent company as at the end of the reporting period have no differences.
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28 3.2 Business Overview SUMMARY OF OPERATING SEGMENT INFORMATION In RMB millions, except for percentages Item Six months ended 30 June 2026 Six months ended 30 June 2025 Amount Percentage (%) Amount Percentage (%) Operating income 446,163 100.0 409,082 100.0 Corporate banking 216,651 48.6 197,723 48.3 Personal banking 164,245 36.8 162,093 39.6 Treasury operations 64,004 14.3 47,916 11.7 Others 1,263 0.3 1,350 0.4 Profit before taxation 210,010 100.0 199,008 100.0 Corporate banking 106,670 50.8 63,568 32.0 Personal banking 46,978 22.4 92,769 46.6 Treasury operations 52,429 24.9 39,075 19.6 Others 3,933 1.9 3,596 1.8 Note: Please see “Note 42. to the Financial Statements: Segment Information ” for details. 3.2.1 Corporate Banking The Bank highlighted the market-oriented and customer-centric approach, steadily explored Comprehensive Financial Solutions ( “CFS”) and the precise matching of products to customers and continuously enhanced its value creation capability, market competitiveness, market influence, and risk management capacity, effectively playing the leading role of a large bank. The Bank was again awarded the “China ’s Best Bank for Large Corporates ” by Euromoney and the “Project Finance House of the Year ” by The Asset , etc. As at the end of June, corporate loans reached RMB20,092,143 million, an increase of RMB1,250,472 million or 6.6% from the end of the previous year; corporate deposits stood at RMB17,452,118 million, an increase of RMB1,101,525 million or 6.7%. The Bank adhered to pursuing progress while ensuring stability and intensifying services for the real economy. It actively implemented the package of policies featuring fiscal-financial coordination to boost domestic demand, strengthened the front-loaded and balanced granting of corporate credit, focused on major projects under the 15 th Five-Year Plan as well as key listed projects such as “Major Strategies and Key Fields ” projects and new policy financial tools, and conducted numbered project matching and systematic services, supporting the recovery and improvement of investment. The Bank thoroughly implemented the modern corporate credit layout, focused on key areas including regional coordination, private enterprises, protection of people ’s livelihoods and “carbon peak and carbon neutrality ” leadership, intensified investment and financing support, and continuously improved the compatibility of the financing structure with the economic structure.
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29 The Bank remained committed to improving quality and efficiency and continuously strengthened major responsibilities and core businesses. In implementing the requirements of new industrialization, it thoroughly advanced the “ICBC Clusters ” special initiative for financial services to manufacturing clusters, provided full services to 80 national-level manufacturing clusters, and supported the intelligent, green and integrated development of the manufacturing industry, with the balance of loans invested in the manufacturing industry exceeding RMB5.8 trillion, maintaining its leading position among peers. Leveraging its strengths in commerce and trade finance, the Bank jointly held the event of Commercial Banking for Boosting Market Circulation and Consumer Demand with MOF, Ministry of Commerce, PBC and key enterprises in the commerce and trade sector to support the building of a strong domestic market, and ranked first among peers in the disbursed amounts for re-lending for service consumption and elderly care. The Bank continuously carried out the “ICBC Sci-Tech Innovation Partnership ” marketing campaign, served the building of the International Science and Technology Innovation Centers, guided more financial resources toward early-stage, small-scale, long-term and hard technology investments, and supported the cultivation of new quality productive forces. The Bank innovatively built a technology finance ecosystem service platform, supporting the transformation of scientific and technological achievements with full-cycle sci-tech finance products and services. The Bank remained customer-oriented and provided comprehensive financial services. Centering on customers ’ key needs, it improved systematic, digital and intelligent, professional and ecosystem-based services, and strived to provide corporate customers with CFS covering “funding support, advisory intelligence, technology enablement and ecosystem integration ”. The Bank conducted precise matching between the full range of products and the entire customer base, improved the global primary account manager mechanism, strengthened digital operations, and accelerated the formation of a coordinated customer structure covering “large, medium, small and micro enterprises and personal customers ”. The Bank strengthened domestic-overseas collaboration and bank-corporate cooperation, proactively supported the national initiative of jointly building the Belt and Road, and accelerated the delivery of outcomes from a series of flagship projects and small and beautiful projects. Besides, the Bank enhanced its capacity to lead the arrangement of overseas syndicated loans, continuously carried out the “Global Pave, Global Have ” series of cross-border marketing campaigns, served enterprises participating in the “Going Global ” and “Bringing in ”, and facilitated the RMB internationalization. At the end of June, corporate customers numbered 15,605.1 thousand, an increase of 859.2 thousand from the end of the previous year. The Bank kept to the right path while making innovations, continuously stimulating growth potential. It consolidated the business ecosystem, promoted the interactions among government, businesses and consumers (GBC), carried out fundamental work such as service network expansion and reinforcement, fund absorption, payroll agency services, and outlet competitiveness enhancement, and continuously integrated into customer ecosystems to achieve synchronized development. The Bank advanced industrial chain financial services, identified the financial needs of chain-leading enterprises through in-depth engagement, innovatively launched industrial chain consulting services, extended services to upstream and downstream enterprises along industrial chains, and helped stabilize, consolidate and strengthen industrial chains. The Bank advanced digital
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30 and intelligent transformation, made effective use of artificial intelligence and other technologies, upgraded the corporate Marketing Express system, built the brand-new corporate marketing AI agents, and continuously enriched functions such as marketing toolkits and product shelves. The Bank built the “ICBC Fund Supervision Cloud ” brand, strengthened the service output of “ICBC Finance Pool ”, and continued to enhance its digital and intelligent customer service capabilities. Corporate loans of domestic branches by industry of loan customers Transportation, storage and postal services .BOVGBDUVSJOH -FBTJOHBOEDPNNFSDJBMTFSWJDFT 8BUFS FOWJSPONFOUBOEQVCMJDVUJMJUZNBOBHFNFOU 1SPEVDUJPOBOETVQQMZPGFMFDUSJDJUZ IFBUJOH HBTBOEXBUFS 8IPMFTBMFBOESFUBJM 0UIFST 3FBMFTUBUF $POTUSVDUJPO 4DJFODF FEVDBUJPO DVMUVSFBOETBOJUBUJPO .JOJOH 21.9% 16.5% 16.3% 10.8% 9.8% 5.7% 6.0% 4.6% 3.4% 2.7% 2.3% 20,092,14318,841,671 17,482,223 Corporate loans Unit: RMB millions 2024 2025 2026.06 Inclusive Finance Focusing on the major task of serving the real economy, the Bank continued to deepen and refine inclusive finance, promoted “stable granting, optimized structure, improved quality and sustainability ”, better met the diversified financial needs of inclusive customer groups, and enhanced the quality and efficiency of inclusive finance services. At the end of June, the balance of inclusive small and micro enterprise loans amounted to RMB3,927,053 million, an increase of RMB375,190 million or 10.6% from the beginning of the year; inclusive small and micro enterprise loan customers numbered 2,835 thousand, an increase of 254 thousand. The average interest rate of inclusive small and micro enterprise loans newly granted in the first half of the year was 2.89%. The Bank fully implemented policies related to inclusive finance. It maintained the intensity and reasonable growth rate of inclusive loan granting, and strived to provide credit supply compatible with economic development and matched with the needs of small and micro enterprises. The Bank continuously implemented in detail the coordination mechanism for supporting financing of small and micro enterprises, and participated in depth in local financing coordination task forces. The Bank continuously carried out activities such as “Visiting Thousands of Enterprises ” and “Inclusion for Everyone ”, went into industrial parks, communities and villages to identify needs, improved online matching channels, and enhanced the direct accessibility of financial services. The Bank implemented incremental and existing policies, made effective use of policy instruments such as fiscal interest subsidies and re-lending, actively engaged with the special guarantee plan for private investment, and increased credit granting in policy-supported areas.
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31 The Bank intensified services for key areas and customer groups. It enhanced support for sci-tech small and micro enterprises, applied policy instruments to support enterprises ’ technological transformation, equipment renewal, R&D investment and commercialization of research outcomes, introduced scientific research data such as intellectual property, R&D investment and government awards and subsidies to assess enterprise capabilities, and improved loan compatibility. The Bank expanded the investment-lending link to provide “loan + equity ” services for small and micro enterprises with strong growth potential. Focusing on sectors such as wholesale and retail, culture and tourism, consumer markets and supermarkets, and in view of merchants ’ asset-light and cash flow-intensive characteristics, the Bank further aggregated multi-channel data for precise profiling and achieved rapid response. The Bank served new urban residents by incorporating them into the assistance scope of startup guarantee loans, to better meet their financing needs. The Bank continuously enhanced the quality and efficiency of inclusive finance services. It optimized products to improve compatibility, continuously built a product library featuring “Head Office standardization + branch differentiation ”, and utilized big data for precise profiling and intelligent credit granting. Focusing on key customer groups in “industry, commerce, agriculture, and science and technology ”, the Bank promoted exclusive products for all segmented scenarios and improved its service capabilities. The Bank improved channels to enhance convenience, launched an inclusive version of mobile banking online to provide 7 ×24 “one-stop ” services, and promoted the extension of services to grassroots levels offline by building flagship and benchmark outlets for inclusive finance. The Bank improved the comprehensive service system and transformed from “expanding credit granting ” to “building ecosystems ”. It adhered to the simultaneous advancement of “funding support, advisory intelligence, technology enablement and ecosystem integration ” and improved “Credit+ ” comprehensive services covering a package of needs including deposits and loans, settlements, exchange rate hedging and consulting. Relying on the “ICBC Business Matchmaker ” platform, the Bank provided services such as product display, production-marketing matching, policy information and financing support, helping small and micro enterprises increase orders and expand markets. The Bank carried out thematic activities such as “ICBC Inclusive Journey ” and “Inclusive Finance Youth Pioneer ”, deepened cooperation with governments and agricultural guarantee institutions, built an inclusive finance ecosystem featuring resource sharing and complementary strengths, and pooled financial efforts to assist enterprises. The foundation of risk management has been reinforced. The Bank continuously improved the risk control mechanism featuring joint prevention and control as well as collaborative governance across the front, middle and back offices. The Bank improved the “1 (customer) + N (products) ” full-process risk control system for inclusive finance, advanced the application of digital risk control technologies, enhanced the level of intelligent risk control, and relied on big data and new technologies to improve the precision and timeliness of risk warning and disposal. The Bank adhered to the combination of digital risk control and expert-based credit management, and on the basis of centralized risk control, strengthened the cross-validation between online data and offline timely and truthful information, further improving its capabilities in risk prevention and resolution and sustainable development.
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32 Institutional Banking The bank-government cooperation was strengthened by supporting the modernization of the national governance system and capacity through financial practice. The Bank made every effort to serve the efficient circulation of fiscal funds, becoming the first commercial bank to rank first in the annual evaluation of agents for both centralized payment and non-tax revenue collection and payment organized by the central government treasury. The Bank upgraded digital and intelligent financial services for people ’s livelihoods, continued to promote service platforms such as “ICBC Cloud Healthcare ”, “Intelligent Housing ”, “Intelligent Education ” and “Digital Countryside ”, providing supportive financial services for boosting China ’s strength in education and science and technology, the Healthy China initiative and comprehensive rural revitalization. The Bank supported the improvement of the social security system, made every effort to provide financial services for the nationwide pooling of basic pension funds, and empowered the three pillars of the pension system and the protection of workers in new forms of employment through digitalization; the Bank led its peers in the qualification for cooperation in mobile payment settlement of healthcare security funds and cooperation in healthcare security wallet; the Bank fully supported the development of the long-term care insurance mechanism, ranking first among peers in the number of municipal-level long-term care insurance accounts opened. The interbank finance operations were strengthened, and the efforts for serving the real economy and opening-up were enhanced. The Bank continued to optimize the Group ’s interbank business strategy, and iteratively upgraded functional modules such as the unified customer view, product tagging, and intelligent matching analysis. The Bank extended financial service channels and networks by actively connecting small and medium-sized banks to the Cross-Border Interbank Payment System through its own channels and collectively advancing RMB internationalization. Business cooperation in deposits, custody, agency sales and settlement continued to expand. The Bank supported the successful landing of the first batch of “Southbound Bond Connect ” transactions of bonds by insurance institutions, and made every effort to help build Shanghai and Hong Kong SAR into international financial hubs. The Bank continued to promote the GBC+ projects. It organized the four major GBC+ “Corporate, Retail, Elderly Care, and Digital Partners Nationwide Tour ” joint marketing campaigns, leveraged the source advantage of G-end institutional customers, and provided customers with ecosystem-based and integrated financial services.
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33 Settlement and Cash Management With a focus on treasury management, the Bank enhanced the leading role of global treasury in improving efficiency. Putting the “ICBC Global Treasury ” brand at the core, the Bank leveraged the integrated and systematic strengths of treasury services, strengthened the horizontal integration capability of service content, improved the vertical penetration mechanism of the service system, and promoted the simultaneous improvement of customer structure, value contribution and customer group scale. Centering on customers ’ digital and intelligent treasury management needs, the Bank launched treasury services, helping enterprises achieve full visibility, agile allocation, effective control, and optimal utilization of their funds. Treasury services were provided for 17.1 thousand core enterprises, covering various customer groups such as central state-owned enterprises, provincial state-owned enterprises, leading private enterprises, foreign-funded enterprises, financial peers and supervisory platforms. The Bank was awarded the “Most Innovative Treasury Solution (Bank) ” by Global Finance . With a focus on cross-border transactions, the Bank strengthened its global treasury. It deepened cooperation in global treasury management with four major customer groups, namely, central and other state-owned enterprises, private enterprises, foreign-funded enterprises and financial institutions, continuously advanced the service upgrade of series products such as “ICBC Global Payment Services ” ( “IGPS”) and “ICBC Global Pool ”, and expanded the direct link of “IGPS” in the Asia Pacific and Europe. The Bank ’s global cash management customers exceeded 14 thousand. The Bank was awarded “China ’s Best Corporate, Investment and Wholesale Bank ” and “Highly Commended Regional Cash Management Bank in Asia Pacific ” by The Asian Banker . With a focus on supply chains, the upstream and downstream ecosystems were empowered. Centering on the needs of chain-leading enterprises and upstream and downstream enterprises, the Bank strengthened the combined application of “collection, management, payment and financing ” products. Centering on the upgrading of supply chain financial services, the Bank advanced the integration of products and services including bills, letters of credit, letters of guarantee and closed-loop funds, and promoted the extension of supply chain financial services from single products to full-chain services. The Bank was awarded the “Best Transaction Bank in China ” by The Asian Banker and “Best Supply Chain Finance Practice Case Award ” by the Annual Conference of China Supply Chain Finance. With a focus on transactions, the Bank built a “treasury + investment ” ecosystem. With treasury management as the foundation and investment management as an enhanced offering, it optimized its customer services through the offering of comprehensive products of wealth management, fund and deposits, thereby expanding the scale of corporate AUM. The Bank was awarded the Golden Reputation Award for the “Excellent Corporate Financial Management Agency Sales Bank ” by Pystandard.
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34 Led through innovation, the Bank advanced digital and intelligent transformation. In terms of customer-facing products and services, it focused on customers ’ pain points and needs and deepened product innovation in “IGPS”, “ICBC Spare Money Management ”, “ICBC E Enterprise Payment ” and “ICBC e BillPay ”, among which “ICBC e BillPay ” was awarded the “Best Collection Solution in Asia Pacific ” from The Asian Banker . In terms of empowering account managers, the Bank advanced the “AI+” Action Plan to progress from AI-based question answering to AI-based task handling, and on the basis of the “TianShu Chat ” settlement finance AI advisory, loaded AI agents such as intelligent teaching, intelligent data and intelligent strategy, upgrading to the “TianShu Agents ” series of AI empowerment products to help account managers conduct marketing efficiently. Safeguarded by robust risk management, the Bank pursued steady and long-term development. Centering on the four priorities of customer risk, product risk, compliance risk and customer complaint governance, it refined the deployment of risk control scenarios and model rules. The Bank improved the development of the settlement and cash risk control platform, advanced the deep coupling of risk control models with the enterprise-level intelligent risk management platform, upgraded the visualized risk warning view, and promoted comprehensive management, active prevention and smart control of risks. At the end of June, the Bank maintained 17.82 million corporate & institution settlement accounts and 2.65 million cash management customers. The volume of corporate & institution settlement business 1 in the first half of the year was RMB1,253 trillion. Investment Banking The Bank focused on strategic emerging industries, sci-tech innovation, and green development and released the “ICBC M&A+ ” brand service program, providing enterprises with comprehensive financial solutions for mergers and acquisitions through full-cycle empowerment, full-scenario coverage, full-product support and full-market coordination. In line with a raft of incremental policies, the Bank accelerated the promotion of share repurchase and shareholding increase loan services, innovated market value management services to help restore market confidence and support the high-quality development of listed companies. In serving the needs of the country ’s high-level opening-up, the Bank provided all-round cross-border services for Chinese enterprises “Going Global ”. The Bank deepened the building of the “ICBC Sci-Tech Finance – Equity Services ” brand, intensified the promotion of the AIC equity pilot business, continued to improve and promote its end-to-end advisory services for equity investment funds, and provided differentiated specialized and sophisticated solutions for venture capital firms, continuing to advance the priority of technology finance. 1 The volume of corporate & institution settlement business refers to the total amount of debits and credits incurred in RMB-denominated corporate & institution settlement accounts.
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35 The Bank vigorously advanced all-scenario services for corporate asset securitization and public REITs, promoted a virtuous cycle of optimizing incremental assets and revitalizing existing stock assets, and facilitated the optimization and upgrading of the economic structure. The Bank expanded the service scenarios of restructuring advisory to support corporate financial optimization, turnaround, and transformation. In the first half of the year, focusing on supporting the “Five Priorities ”, the Bank carried out its bond underwriting business to improve the quality and efficiency of financial services for the real economy, provided targeted support for the development of key areas and sectors, and played the role of a leading bank. It served as the lead underwriter for 1,407 bond issuance projects, with a total lead underwriting volume of RMB1,043,489 million. As part of its commitment to supporting the building of a manufacturing powerhouse by financial services, the Bank underwrote 61 manufacturing bonds, raising RMB117,200 million for issuers; underwrote 81 ESG bonds, with an underwriting volume of RMB322,435 million; and underwrote 33 private non-financial enterprise bonds, raising RMB83,635 million for issuers. Serving high-level opening-up, the Bank underwrote 43 panda bonds, raising funds of RMB95,085 million for issuers. To boost China ’s strength in science and technology, the Bank led the underwriting of 49 sci-tech bills and non-financial bonds, raising RMB135,250 million for issuers. Bills Focusing on major responsibilities and core businesses, the Bank intensified bill product innovation, accelerated the research and development and piloting of “Small-Amount Bill Service ” products, deepened the iterative upgrading of “Bills Insight ” AI intelligent review, and comprehensively advanced the “Sub-Branch Discount Assistance ” project. In the first half of the year, the volume of discount bills reached RMB2.70 trillion, an increase of 23.4% over the previous year, maintaining the leading position in the market. A total of 35.5 thousand bill discounting clients were served. 3.2.2 Personal Banking The Bank thoroughly advanced the five transformations, highlighted its purpose of serving the people, focused on its major responsibilities and core businesses, strengthened ecosystem building, reinforced digital and intelligent drivers, and consolidated the foundation of risk control, thereby promoting the high-quality development of personal banking. Focusing on major responsibilities and core businesses to enhance value creation capabilities. The Bank strengthened customer acquisition at the source, improved fund absorption capabilities, expanded the flow of deposit funds, increased the fund retention rate, and broadened low-cost funding sources through multiple channels. Focusing on scenarios of customers ’ fund utilization such as investment and consumption, the Bank continuously enhanced the professionalism of wealth management and the convenience of payment and settlement. It launched the “ICBC Premium Selection ” fund service
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36 brand, built a service model of “professional investment research + brand customization + in-depth companionship ”, and promoted the transformation of the fund business from “sales-driven ” to “service-driven ”. The Bank accelerated the agency distribution of commercial pension products, advancing pension finance in the course of serving people ’s livelihood. It introduced the “ICBC Smart Match ” wealth management product recommendation zone, offering customers hassle-free, efficient, and tailored wealth management and investment services. It continuously expanded convenient payment scenarios, carried out series of activities on an ongoing basis, and strengthened innovation in ecosystem scenario-based marketing activities with payment institutions. Strengthening ecosystem building to consolidate the foundation of customer services. Taking the “four-in-one ” integrated implementation of “customers, products, channels and managers ” as the path, the Bank built a closed-loop of online and offline services, provided personal customers with CFS, and promoted accelerated growth in new customer acquisition. The Bank deepened the operation of key customer groups, continuously improved the exclusive “Xin (salary) ” service system for payroll customers, carried out the “Pension Finance Policy Outreach for Every Household ” initiative, launched “Liquidity Boost ” exclusive financial services for individual merchants, upgraded brand services for young customer groups under the theme of “Starlight Brightens Your Growth Journey ”, enriched the “Happiness 1+4 ” products and services for county-area customers, and deepened the “ICBC Aixiangban ” services for elderly customer groups. The Bank continuously enriched the “ICBC iBonus Point ” ecosystem resources, coordinated the planning of diverse “ICBC iBonus Point ” series marketing activities, deeply embedded them into various life scenarios, and built an integrated customer reward system. Reinforcing digital and intelligent drivers to accelerate the transformation of development momentum. Relying on the upgrade of “Intelligent Brain ”, the Bank built personal customer management strategies hub to support regular marketing strategy design and online and offline customer engagement centering on comprehensive personal customer management. Focusing on business applications, the Bank strengthened the research and development of artificial intelligence models, which were widely applied in fields such as personalized product recommendation, differentiated marketing campaign deployment and asset allocation services for retail customers. The Bank built “Gong Xiao Cai ”, an intelligent agent empowering the team of personal customer managers, and leveraged digital and intelligent innovation to help enhance customer service capabilities as well as operational quality and efficiency. Consolidating the foundation of risk control to safeguard the steady development of business. The Bank advanced intelligent risk control in depth, continuously improved the precision of risk prevention and control, and achieved an effective balance among risk prevention and control, business development and customer services. It deepened the prevention of telecom fraud risks and actively cooperated with public security authorities to safeguard the security of customers ’ funds, safeguarding the “wallets ” of the people.
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37 At the end of June, the balance of personal financial assets was RMB26.5 trillion, maintaining a leading position in the industry. The Bank was awarded the “Best Retail Bank in China ” and “China ’s Best Bank for Customer Experience ” by Euromoney , “Best Retail Banking Customer Experience Award, China ” by The Asset , and “Best Asset/Fund Management Product in Asia Pacific ”, “Best Big Data and Analytics Initiative in Asia Pacific ”, “Best Gamification Strategy in Retail Banking in Asia Pacific ”, “China Best Anti-Fraud Technology Practice ” by The Asian Banker and other awards. Unit: RMB millionsPersonal deposits 2024 2025 2026.06 18,541,510 21,056,671 20,204,619 Personal loans Unit: RMB millions 2024 8,957,720 2025 9,002,636 2026.06 9,000,436 Personal Credit Business The Bank coordinated the high-quality development of the personal loan business with risk prevention and control. Taking stabilizing the property market, promoting consumption, benefiting people ’s livelihood and serving the real economy as the fundamental starting points, the Bank focused on the fields of housing, consumption, business operation and automotive finance, and continuously optimized the product system, improved service processes and advanced the digital and intelligent transformation. Closely following changes in real estate industry policies and market conditions, the Bank steadily promoted balanced lending for new homes and home resales, and proactively adapted to the requirements of the new model of real estate development. It accelerated the development of second-hand housing loans and expanded business cooperation with home resale agencies in a tiered and categorized manner. The Bank accelerated the all-product marketing of “Housing Ecosystem+ ”, covering Commercial Property Loans, Auction Property Mortgage Loans, Parking Space Loans and Home Renovation Loans. The Bank strengthened consumer finance as a “growth pole ” and built a commercially sustainable new model of automotive finance. It actively responded to the implementation of the new policy on interest subsidies for consumption loans, provided interest subsidies for over 100 million consumer transactions, and effectively reduced residents ’ financing costs. The Bank prudently advanced the transformation of the operating model for special credit card installments in automobiles, home furnishing and general consumption.
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38 The Bank provided precise support to weak links of the real economy, and enriched the supply of personal business and agriculture-related credit through scenario-based financial innovation. Through continuous product optimization, strengthened business management and empowerment of branches in key cities, the Bank promoted the high-quality development of Real Estate Mortgage Consumption and Business Combination Loan. It extended the reach of inclusive services through scenario innovation, effectively improving the quality and efficiency of financing for key customer groups such as small and micro business owners, self-employed businesses and farmers. Centering on distinctive economic clusters in county areas and rural regions, the Bank promoted the expansion in coverage and volume of business loans in agriculture-related fields. Wealth Management Business The Bank vigorously developed the wealth management business and systematically advanced the refresh and upgrading of the “ICBC Wealth Management ” brand. In response to changes in customers ’ wealth management needs and the new landscape of peer competition, the Bank comprehensively enhanced four categories of capabilities, namely account insight, product research and selection, intelligent allocation and long-term companionship, and promoted the transformation of the wealth management business from product sales to account operation, customer operation and brand operation, laying a solid foundation for the coordinated development of key businesses such as funds, insurance and wealth management products. The Bank actively advanced the building of the “ICBC Premium Selection ” new fund sales service model, and launched three major product series, namely “An Ying ” (pure bond, fixed income+), “Zhi Ying ” (index, enhanced index) and “Hui Ying ” (FOF), to meet customers ’ diversified wealth management needs. In respect of private banking, the Bank adhered to a customer-centric approach and, with CFS as the driver, built an integrated, professional and intelligent service ecosystem. Fulfilling its mission as a large state-owned bank, the Bank took serving scientists and entrepreneurs who are sci-tech innovators as the starting point, connected the virtuous cycle of technology finance, and established the “Bridge of Sci-Tech Innovation ” scenario to facilitate the transformation of scientific and technological achievements. The Bank continuously advanced the “Financial Supermarket ” strategy, forged full-cycle allocation capabilities, and accelerated the building of a green finance wealth ecosystem. It integrated health and elderly care services with philanthropic and charity resources, held pension-themed customer activities, and formulated comprehensive service plans for elderly care customer groups. The Bank was awarded “China ’s Best Private Bank ” by Euromoney, “Outstanding Private Bank ” by CHINAFUND and other awards.
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39 Bank Card Business The Bank supported the expansion of domestic demand and consumption promotion. It actively implemented the fiscal interest subsidy policy, promptly launched and promoted the fiscal interest subsidy service for bill installments, supplemented by promotional activities such as preferential interest rates and reward credits upon meeting spending targets. Serving inbound consumption by overseas visitors, the Bank intensified efforts to promote the “Instant Refund ” departure tax refund service. Centering on scenarios such as core business districts, offline large-value transactions, culture and tourism, sports events and exhibitions, transportation and travel, and online e-commerce, the Bank carried out more than 180 consumer benefit promotional activities including “Trade-In Special Promotion ”, “Happy Spring Festival Shopping ”, “I GO May Day ”, “I GO 618 ” and “Merchant Benefits Program: Covering 100 Cities and 10,000 Stores ”. It optimized the “ICBC Member Benefits ” reward system, improved the iBonus Point operation ecosystem, continuously enriched iBonus Point cash-offset scenarios, and supported the accumulation of iBonus Point for spending via mainstream third-party payment platforms. Enhancing the service capabilities of the e-Life platform. The Bank enriched the diversified ecosystem service system covering catering, food delivery, travel, culture and entertainment, and recuperation services; launched the “ICBC Travel ” culture and tourism section, integrating credit card benefits, merchant resources and services of leading platforms; and actively served local economies by undertaking government consumption voucher programs in multiple regions. At the end of June, the Bank had issued 1,338 1 million bank cards, an increase of 18.81 million cards over the end of the previous year. These included 1,196 million debit cards and 143 million credit cards. The balance of credit card overdrafts was RMB597,157 million. In the first half of the year, ICBC debit cards registered a consumption transaction volume of RMB9.26 trillion, and credit cards registered a consumption transaction volume of RMB0.79 trillion. 3.2.3 Asset Management Services Actively seizing the new opportunities and fulfilling the new missions that high-quality financial development has brought to the asset management industry, the Bank provided more adaptive, competitive, and inclusive financial services to support the high-quality development of the modern economic system and the growing demand for wealth management. At the product end, the Bank stayed committed to a customer-centered approach to meet customers ’ demands for wealth preservation and appreciation by improving the professionalism of financial services such as wealth management, funds, insurance, pension, etc. and providing a wide range of asset management products. On the investment side, it fully leveraged the license advantages of integrated subsidiaries by increasing investment support in areas such as advanced manufacturing, Specialization, Refinement, Differentiation and Innovation ( “SRDI”), inclusive small and micro enterprises, sci-tech innovation, and green development, thereby contributing to the construction of a modern economic system. 1 This figure has been rounded off.
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40 In terms of wealth management, the Bank closely aligned clients ’ demand for prudent investment with diversified market opportunities, continuously improved the full-spectrum, multi-strategy product offerings, and, relying on full-process quality control management, achieved product performance that remained at the forefront of the market, with returns of featured products such as Hong Kong IPO subscription products continuing to lead the market. In terms of funds, the Bank intensified the deployment of equity funds and enriched prudent low-volatility fund products to actively meet investors ’ diversified wealth management needs; adhering to long-term investment, value investment and long-cycle assessment, and focusing on national strategies and the industrial upgrading priorities, the Bank increased investment support for quality enterprises in the technology field, with actively managed technology-themed equity funds delivering outstanding performance. In terms of insurance, the Bank focused on its core business of entrusted management and actively expanded third-party business, achieving steady growth in assets under management; through optimized asset allocation, it steadily improved long-term returns with stable investment performance; through diversified investments precisely aligned with national strategies, it prioritized support for infrastructure construction, technology and green low-carbon industries, injecting financial momentum into the real economy. Wealth Management Business At the end of June, the balance of wealth management products reached RMB1,991,439 million, all of which were managed by ICBC Wealth Management. Please refer to the section headed “Business Overview { Comprehensive Operation ” for details on the business development of ICBC Wealth Management. Asset Custody Business The Bank enhanced the competitiveness of asset custody business as new financial infrastructures and continued to consolidate its leading advantage in the industry. At the end of June, the total assets under custody of the Group (on an AUCA basis 1) reached RMB33.70 trillion. Among them, the assets under custody of domestic institutions in accordance with the Rules on Custody Business of Commercial Banks (Trial) stood at RMB28.75 trillion. The custody size of securities investment funds, insurance assets, pension funds, and QDIIs all remained at the top of the industry. The Bank helped improve the functioning of the capital market and supported the entry of medium- and long-term funds into the market. The Bank became the first custodian bank in the market whose insurance asset custody scale exceeded RMB10 trillion and whose pension custody scale exceeded RMB4 trillion. Serving the development of the modern industrial system and focusing on CFS, the Bank built an industrial fund custody service system with ICBC characteristics, providing strong support for the development of strategic emerging industries. Integrating into the process of high-level opening-up and accelerating its global footprint, ICBC (Asia) launched securities lending services for global custody clients, becoming the first Chinese-funded bank in Hong Kong SAR to provide such value-added services. 1 The Group-wide AUCA (Asset Under Custody and Administration) basis refers to the aggregate scale of the Group ’s global custody business and administration service business.
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41 The brand value of “ICBC Custody ” continued to rise, and the Bank was awarded “Best Mega Custodian Bank in China ” by The Asian Banker , “Best Bank in Asset Servicing, China Onshore ”, “Best Custodian, Insurance, China Onshore ”, and “Best Custodian, Pension Funds, China Onshore ” by The Asset and other awards. In the first half of the year, the Bank ’s asset custody services underwent no major risk events that violated laws and regulations. ASSETS UNDER CUSTODY OF DOMESTIC INSTITUTIONS AT THE END OF JUNE 2026 In RMB millions, except for percentages Type of assets under custody Amount Percentage (%) Insurance assets 10,182,345 35.4 Securities investment funds 4,891,194 17.0 Pension funds 4,218,983 14.7 Bank wealth management products 2,916,446 10.1 Trust assets 2,464,505 8.6 Private investment funds 1,469,972 5.1 QDIIs 1,144,393 4.0 Assets of securities companies ’ clients 710,166 2.5 QFIs 497,746 1.7 Assets of fund companies ’ clients 236,337 0.8 Other products 15,126 0.1 Total 28,747,213 100.0 Pension Services The Bank strengthened pension fund finance to fulfill its role as a main force in the national pension system. It comprehensively provided supporting financial services for social security work and actively participated in the development of national social security informatization. It improved the online and offline social security card service ecosystem, helping to achieve “One Card for a Better Life ”. Leveraging its “full licenses ” in the annuity business, the Bank continuously improved the efficiency of annuity operation and management; the return on annuity entrusted investments remained stable, and the reliability and convenience of its services were widely recognized by customers. The Bank also supported the nationwide rollout of the private pension scheme, provided full-cycle services across all channels covering private pension account opening, contribution, investment and withdrawal, and built a full-category spectrum of private pension investment products.
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42 The Bank improved pension service finance to better meet residents ’ diversified elderly care needs. Centering on the four core scenarios of individual clients ’ retirement financial planning, capital allocation, service guarantee and asset arrangement, the Bank provided integrated “Finance + Elderly Care ” services. It improved “ICBC Aixiangban ” brand service system for elderly customer groups and enriched exclusive products and activity benefits. The Bank innovated and optimized wealth management products such as pension savings, wealth management products, funds and insurances, meeting customers ’ needs for stability, profitability and liquidity of pension assets. The Bank developed pension industry finance to support the growth of the silver economy. Through measures such as optimizing credit policies and innovatively launching inclusive credit products for elderly care, the Bank supported the cultivation of elderly care industry clusters, the regional planning of the silver economy and the building of demonstration highlands for the elderly care industry. Leveraging advantages derived from the Group ’s resources, the Bank provided comprehensive financial services for enterprises along the upstream and downstream of the elderly care industry chain, covering financing, account management, payment and settlement, personal finance and digital and intelligent scenario building. The Bank consolidated the pension finance ecosystem to enhance the overall effectiveness of senior-targeted services. The Bank released the “Ruyi Life ” comprehensive elderly care solution. Centering on the financial needs of governments at all levels in their ageing-related work, employee pension security of various enterprises, and residents ’ personal retirement life, the Bank built a new pension finance service ecosystem featuring the deep integration of “finance + non-finance ”, the seamless connection of “online + offline ”, and the precise matching of “inclusive + customized ” services. 3.2.4 Financial Market Business Money Market Activities In terms of RMB operations, the Bank fulfilled its role as a primary dealer, participated in monetary policy tool operations of the PBC, maintained the intensity of policy-related business, enhanced its short-term fund lending capacity, supported the smooth operation of money market interest rates, and facilitated the transmission of monetary policy. The Bank expanded the customer base of the RMB money market business, formulated well-designed financing strategies, reasonably arranged financing tenors, business varieties, counterparties and collateral structures, and continuously improved the efficiency of fund operations. It continued to advance business innovation and risk prevention and control, promoted the building of an intelligent risk control system, and the operational risk loss ratio of each business line remained at zero.
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43 In terms of foreign exchange operations, the Bank closely monitored the monetary policy trends of major central banks around the world and changes in market liquidity, continued to strengthen its foreign currency liquidity reserves, and flexibly carried out various foreign exchange money market operations under the premise of safeguarding liquidity security to improve the efficiency of foreign-currency fund operations. The Bank actively promoted innovation in domestic foreign currency repo business, continued to act well as a quotation bank for interbank foreign-currency lending through the China Foreign Exchange Trade System, assisting in developing the domestic benchmark interest rate curve for USD lending. Investment In terms of RMB bond operations, the Bank implemented the proactive fiscal policy, with its government bond investment scale ranking first in the market for four consecutive years, providing strong financial support for the development in areas such as “Major Strategies and Key Fields ” and “Renewal and Trade-in ”. The Bank gave full play to its role in addressing weaknesses, improving people ’s livelihoods, promoting consumption, and expanding domestic demand. The outstanding balance and new issuances of local government bonds both ranked first in the market for ten consecutive years, providing strong funding support for local economic development. The Bank continued to increase new investments in corporate bonds, focusing on key industries under the 15 th Five-Year Plan, expanding customer coverage centering on key industrial clusters such as advanced manufacturing and strategic emerging industries and key industrial chains such as new energy vehicles, information technology and high-end equipment. It continued to deepen and consolidate the “Five Priorities ”, increasing investments in various thematic bonds covering sci-tech innovation, green and environmental protection, and private and inclusive finance. Giving full play to the Group ’s synergy advantages, the Bank actively conducted panda bond investments across different issuer types, including sovereign institutions, international development institutions, non-financial enterprises and financial institutions. In terms of foreign currency bond operations, the Bank continued to track the inflation and employment data of major global economies as well as the monetary policy developments of major central banks, conducted solid analysis and judgment on interest rates and credit, and prudently carried out foreign currency bond investments. It dynamically adjusted the structure of investment portfolios in line with market dynamics, continuously improving the security and profitability of investments. The Bank steadily advanced “Southbound Connect ” bond investment and played an active role in adding momentum to the offshore RMB market activity.
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44 Treasury Trading Business In terms of foreign exchange settlement and sales and foreign exchange trading, the Bank took multiple measures to promote the concept of risk neutrality, innovated the forms and carriers of exchange rate hedging publicity, broadened the coverage of guidance on hedging tools for various foreign-related enterprises, and helped enterprises improve their exchange rate risk management capabilities. The Bank continuously improved the quality and efficiency of foreign exchange trading services, vigorously expanded derivative business under third-party guarantees, lowered the threshold for hedging business for micro, small and medium-sized enterprises, enriched comprehensive service solutions for cross-border treasury transactions, precisely met customers ’ trading needs, innovated combinations of foreign exchange hedging products, and improved supporting credit extension mechanisms, thereby effectively strengthening customer service capabilities in foreign exchange business. The Bank accelerated the functional iteration and upgrading of online trading channels and advanced the optimization of the ICBC Global Trading Platform, achieving breakthroughs in trading professionalism, operational convenience and full-process online operation, and comprehensively enhancing customer service capabilities and customer experience through digital empowerment. In terms of foreign institutional investors trading business in China ’s interbank market, the Bank actively served foreign institutional investors from 70 countries and regions throughout the world, to meet their needs for investment and trading in China ’s interbank market. In terms of over-the-counter ( “OTC”) bond business, the Bank provided OTC market investors with investment and trading services for book-entry central government bonds, local government bonds, and bonds issued by China Development Bank, Agricultural Development Bank of China, and the Export-Import Bank of China, contributing to the development of a multi-layered bond market. Asset Securitization Business The Bank took coordinated steps to promote asset securitization projects, making the best use of the existing assets and enhancing the capacity of credit supply. In the first half of the year, the Bank issued eight non-performing asset-backed securities with a total amount of RMB5,882 million, representing a year-on-year growth rate of 15.7%.
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45 Precious Metal Business The Bank developed high-quality precious metal products and services. Seizing opportunities in the gold market, it actively promoted investor education, increased product supply, and met customers ’ needs for asset allocation, investment and collection, achieving simultaneous improvements in business development, customer acquisition, and the quality and efficiency of basic management. The Bank expanded precious metal leasing scenarios, optimized the term structure and enhanced support for the manufacturing industry. The Bank served the development of a modern industrial system and met the silver demand of the green and low-carbon industry. The Bank served the building of Shanghai and Hong Kong SAR into international financial hubs and continued to support the pilot program for insurance funds to invest in the SGE market, actively participated in SGE International Board price asking market-making transactions, and facilitated the connectivity between the Shanghai and Hong Kong gold markets. In the first half of the year, the Bank retained awards such as the “Excellent Financial Member of the Year { First Prize ”, “Annual Best Price Asking Trading Institution ” and “Annual Best Proprietary Trading Member for Auction Trading ” granted by the SGE. 3.2.5 FinTech The Bank accelerated the building of “AI-ICBC ”, focused on “security, advancement and adaptability ” and deepened FinTech empowerment. It continuously consolidated the foundation of secure production and operation, enhanced the intelligence of risk control, optimized the technology architecture and computing power base, further implemented the “AI+” Action Plan, unleashed the momentum of digital and intelligent transformation, and served the “Five Priorities ” of finance with high-quality technology supply. The Bank was awarded “Best Large Language Model Initiative in Asia Pacific ” by The Asian Banker and “Digital Bank of the Year in China ” by The Asset . Strengthening Integrated Security of the Group The Bank better prepared itself for worst-case scenarios, strictly controlled technology risks, ensured security of production and operation, optimized the cybersecurity defense system, built solid data security safeguards, and supported sound business development. The foundation of production and operation was reinforced. The availability of information systems remained above 99.99%. The Bank improved the operation and maintenance guarantee mechanism and emergency response system for unexpected incidents, effectively supporting the stable business operations of domestic and overseas institutions and helping enhance financial service capabilities. The Bank strengthened business continuity assurance, continuously improved the high availability of disaster recovery, and conducted large-scale remote load-bearing takeover drills for core systems, raising the level of practical drills and enhancing business continuity assurance capabilities.
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46 A solid Group-wide cyber security defense line was built. The Bank strengthened the coordinated management of information technology and cyber security risks, continuously consolidated management of IT assets, production operations and management and cybersecurity posture at the Group level, and improved resource operation efficiency; it strengthened cyber security service support for overseas institutions, completed the coordinated optimization and dispatch integration of network resources in Hong Kong SAR, Macao SAR and Europe region, and improved the efficiency of centralized management for overseas regions. The Bank upgraded its defense-in-depth system, improved the threat intelligence and data security technical prevention systems, and conducted penetration testing and eliminated hidden risks on a regular basis. It established a mechanism for responding to security risks of LLMs, leveraged AI to identify open-source vulnerabilities and detect potential threats, and established a hotfix mechanism for high-risk vulnerabilities, forming a closed loop of security operations in which risks are visible, traceable and promptly addressed. Data security management was strengthened. The Bank continuously improved the data security procedure framework, upgraded data classification and grading tools, improved the Group ’s data security technical prevention system, and strengthened tiered and categorized data protection. It conducted regular data security risk assessments and emergency drills. The Bank strengthened publicity and training to raise the data security protection awareness and capabilities of all employees. Deepening the Innovative Technology Application and Empowerment The Bank stimulated vitality in sci-tech innovation, upgraded the digital technology ecosystem, actively explored the research and application of forward-looking technologies, and accelerated the application of research results in business development. In the first half of the year, the Bank ranked first among its peers in both patent publications and cumulative patent grants. The Bank grasped the direction of digital and intelligent technology evolution, and built a robust, secure, agile, and open enterprise-level architecture system. It systematically optimized application, data, and technology architectures to fully align with the implementation of the Bank ’s key business strategies and the needs of business transformation and development; consolidated the self-supporting and controllable technology base of core systems, conducted frontier explorations of international technology pathways in full compliance with laws and regulations, and continuously enhanced the security, advancement and openness of the architecture system; strengthened high-availability and disaster recovery capabilities, and upgraded to next-generation capabilities in emergency response and business continuity.
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47 The Bank deepened the innovative application of new technologies. The Bank continued to implement the “AI+” Action Plan, with LLMs deployed in more than 600 scenarios, and AI applications achieved phased results. It formed a hierarchical framework for agent development, completed the building of two super agents oriented toward customers and employees respectively, and moved four categories of agents for front-line positions into the pilot promotion stage, with the “human-machine collaboration, intelligence-driven ” service model beginning to take shape. The Bank strengthened its capability for LLM technological innovation, with a multi-level cache inference acceleration solution based on domestically developed computing power implemented and computing efficiency effectively improved. It expanded the enterprise-level knowledge base to cover multiple business fields, with the scale of stored and retrievable knowledge assets growing steadily. The Bank continued to consolidate the data foundation. It deepened data governance, advanced the building of the Group ’s unified indicator data system, optimized and upgraded the unified management platform for bank-wide indicators, and continuously enhanced the capabilities of unified data supply, automatic report generation and data sharing applications. It built a bank-wide unified data utilization platform, launched data products for marketing, risk control and other purposes, iteratively upgraded digital service carriers, revitalized the Group ’s data assets, and promoted the efficient empowerment of operation and management by data elements. Strengthening AI-ICBC Development The Bank accelerated AI-ICBC development, promoted the efficient translation of digital and intelligent achievements, vigorously cultivated new quality productive forces in finance, and empowered the high-quality development of the real economy through digital and intelligent transformation. The Bank drove product upgrades with digital and intelligent momentum. Serving the “Five Priorities ”, the Bank built a technology finance ecosystem service platform to better serve the deep integration of sci-tech innovation and industrial innovation; advanced the building of the “Green Finance Connect ” platform in an orderly manner, empowering the basic management of green finance with AI; created “Gong Xiao Hui ”, a digital inclusive finance intelligent assistant, and innovated “Sci-Tech Innovation e Loan ”, expanding inclusive finance service methods and product offerings; introduced “Ruyi Life Comprehensive Financial Solutions ” into the pension finance community platform on mobile banking, helping customers prepare for and enjoy retirement with peace of mind; and strengthened new infrastructure by releasing “e-CNY Cross-Border e-Commerce Payment Solution ” and supporting the connection of six overseas institutions, including ICBC (Asia), to the CBETS platform, injecting new momentum into the high-level opening up of finance.
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48 The Bank reshaped the customer service paradigm with digital and intelligent models. For customers, it built “GINO (Gong Xiao Zhi) ”, a unified customer-facing agent covering all online and offline channels, and progressively developed a new “Conversation as a Service ” model for customer services in phases. For internal employees, the Bank built “Gong Xiao Cai ”, an exclusive agent for personal customer managers, promoting the digital transformation of customer managers ’ marketing and customer maintenance, advisory services, and consumer protection compliance; deepened the building of corporate marketing agents, launching scenarios such as marketing talking points, CFS and reference materials; consolidated the intelligent business processing capabilities of front-line tellers, reshaping the business handling model of intelligent terminals through dialogue-based interaction, with automated input tools effectively reducing manual processing time; and enhanced smart office service capabilities for all employees, with the AI service rate of ICBC e Office continuing to grow. The Bank enhanced operational and risk control efficiency with digital and intelligent tools. It comprehensively promoted the enterprise-level intelligent risk control platform and continuously enriched risk monitoring application scenarios; launched the mobile version of the risk control platform, put the “Intelligent Risk Control ” agent into production, and upgraded the “ICBC e Prevention ” satellite monitoring and “ICBC e Control ” intelligent review functions, continuously strengthening multi-dimensional smart early warning and tiered intelligent control capabilities. The Bank explored the application of AI technology in fields such as assisting manual review and natural language-based data retrieval and analysis, significantly improving the refined management of asset-liability coordination and financial resource allocation. Deepening the Development of the Technology Governance System and Capabilities The Bank actively adapted to FinTech development trends, continuously optimized the technology governance system, improved technology management mechanisms, strengthened the building of a digital and intelligent talent team, and continuously stimulated the vitality of technological innovation. The Bank optimized the technology governance structure. It gave full play to the multi-tiered review mechanism of the Digital Finance and Financial Technology Committee, controlling technology risks at the source and ensuring the level and quality of scientific decision-making on major matters. The Bank solidified the governance of technological foundation and enhanced the governance of FinTech ethics to ensure simultaneous enhancement of technological innovation and risk prevention and control capabilities.
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49 The Bank improved the efficiency of technology management. It continuously optimized its capability for the coordinated management of Group-wide technology resources, revised and improved relevant procedures, and consolidated penetrative governance capabilities. It improved the technology risk profiling and regular screening and rectification mechanisms, and strengthened technology service support for domestic and overseas institutions. The Bank accelerated the digital and intelligent upgrading of the technology risk management system, and advanced the dynamic balance between technological innovation and risk prevention and control in a coordinated manner. The Bank strengthened the building of its talent team. It deepened the integration mechanism of “business, technology and data ”, assigned technology backbone staff to business lines, and cultivated composite talents in business, technology and data. It established a Group-wide technology position tags system and a technology capability map for personnel of branches and sub-branches, focusing on enhancing grassroots technology support capabilities. The Bank improved the cultivation and advancement mechanism for the Group-wide data analyst team, refined the tiered and categorized talent cultivation system, and conducted special training on a regular basis, comprehensively forging a high-caliber, professional team of FinTech and data talents and consolidating the talent foundation for digital and intelligent transformation. 3.2.6 Internet Finance The Bank deepened the development of digital financial services and business systems, continuously upgraded services on the online platforms of mobile banking, open banking and cloud banking, consolidated the results of digital operations, and improved the intelligent risk control capacity of online platforms. In the first half of the year, digital business accounted for 99% of the total. The Bank promoted the enhancement of digital financial service capabilities of mobile banking. It released the new “SmartEnjoy+1.0 ” version of mobile banking to customers, providing intelligent and scenario-based services, and comprehensively upgraded the personal benefits service system relying on “ICBC iBonus Point ”. It continued to leverage mobile banking as the primary platform for customer engagement and online marketing, created exclusive services focusing on key customer groups such as inclusive finance, pension, wealth and county-area customers, and integrated mobile banking products, services and benefits into the marketing and service processes for outlet customers. The Bank continuously improved customer experience and optimized the service experience of high-frequency businesses such as identity authentication, effectively meeting the diversified needs of different customer groups; the Bank ’s mobile banking app ranked among the top few in terms of ratings in both Apple and Huawei app stores. At the end of June, the Bank had 649 million personal mobile banking customers and over 300 million mobile MAUs, both maintaining a leading position among peers.
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50 The Bank improved the comprehensive services of open banking. Centering on fields such as technology, government affairs, people ’s livelihood, industry and rural areas, it delivered financial services in an integrated, customized and ecosystem-based manner. The Bank carried out the GBC+ “Digital Partner Long March ” campaign, enhanced digital financial services, including digital tax, industrial internet, online freight, digital agriculture and digital education, and focused on improving the quality and efficiency of open banking services. Based on corporate internet (mobile) banking, the Bank built the “Operation+ ” business ecosystem platform for micro, small and medium-sized enterprises, focusing on high-frequency operational needs such as finance and taxation, payroll, office administration, risk control and contracts as well as pain points in digital transformation, promoting the integration and mutual reinforcement of finance and business ecosystems, and empowering micro, small and medium-sized enterprises to improve efficiency. At the end of June, the Bank had 19.93 million corporate internet (mobile) banking customers, with 9.53 million MAUs, both maintaining a leading position among peers. The Bank deepened the digital and intelligent transformation of cloud banking. It iteratively upgraded the remote intelligent service system of “customer services + employee assistance ”, enhancing customer service experience and human-machine collaboration efficiency, with its intelligent service level leading among peers. It built an enterprise-level customer-facing knowledge base and launched a next-generation general knowledge service platform, precisely providing convenient, intelligent and scenario-based knowledge and injecting new momentum into improving the quality and efficiency of customer services. The Bank strengthened the development of the digital operation system. It continuously strengthened the building of the digital operation team, providing organizational support for online, centralized and precise operations. It strengthened the matching of products with customers, upgraded the digital operation capabilities of the “Zhike” platform, and, centering on the differentiated needs of key customer groups such as young customers, elderly customers and inclusive finance customers, advanced integrated customer reach covering “customers + products + channels + benefits ”, effectively enhancing the adaptability and accessibility of digital financial services. The Bank enhanced the risk management of internet finance. It strengthened the intelligent risk control on online platforms, iteratively improved the online anti-telecom fraud intelligent risk control system, and established a mechanism for the continuous tracking and monitoring of customers ’ online risk transactions and tiered risk disposal. Relying on new technologies such as knowledge graphs and machine learning, it strengthened the building of intelligent risk control models, advanced the application of LLMs in the risk control field, and reinforced the penetrative sharing of risk control information and joint prevention and control. The Bank further advanced the content security management of mobile internet applications for financial services for customers and online platforms, strengthened the risk monitoring of open banking transactions and partners, and, relying on digital means, deepened anti-money laundering, data security and personal customer information protection in internet finance, effectively ensuring the secure and stable operation of business.
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51 The Bank steadily advanced the quality and efficiency improvement of e-CNY business. It continued to expand the application of e-CNY in key scenarios such as the targeted allocation of fiscal funds, the supervision of local government debt resolution funds, prepaid management platforms, and payroll payment for migrant workers. Six overseas institutions of the Bank became direct participants in the first batch of CBETS, and relying on CBETS and the m-CBDC Bridge, the Bank innovatively launched “e-CNY Cross-Border e-Commerce Payment Solution ”, injecting new momentum into the global expansion of cross-border e-commerce. The Bank was awarded “Best Regional e-CNY Bank” by The Asset . 3.2.7 Outlet Building and Service Improvement The Bank took solid steps to promote the optimization of outlets. The Plan for Outlet Layout and Development during the 15 th Five-Year Plan period was formulated. It made coordinated efforts to optimize the layout and structure of outlets, accelerating the allocation of resources to key city clusters and metropolitan areas, resource-rich counties and townships, and underserved service areas, so as to make financial services more convenient and accessible. During the first half of the year, 156 outlets were optimized and adjusted, with 54 new outlets set up in county-level and township areas. The coverage rate of county-level outlets increased to 87.6%. At the end of June, the Bank had 15,426 outlets, 18,985 self-service banks, 70,672 intelligent devices and 45,923 automatic teller machines ( “ATMs”). The transaction volume of ATMs reached RMB1,973.0 billion in the first half of the year. The Bank made continuous efforts to enhance the competitiveness of outlets. It deepened transformation and upgrading, accelerated the downward extension of inclusive finance, corporate settlement and other businesses, continued to diversify the “ICBC Sharing Station+ ” scenarios, and enhanced outlets ’ capabilities of acquiring, engaging and retaining customers through these scenarios. The Bank continued to build its specialized outlet ecosystem framework for pension finance, and stepped up efforts to renovate outlets to make them more accessible and age-friendly. An intelligent diagnostic tool for outlets was developed to strengthen support measures for empowerment and efficiency enhancement, and the operational efficiency and customer service capabilities of outlets were continuously improved.
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52 The service level of outlets was further enhanced. By optimizing the provision of services at outlets during public holidays, improving the rate of first-contact complaint resolution at outlets, and enhancing the quality and efficiency of personal settlement account services, the Bank provided tailored financial services to customer groups such as the elderly, outdoor workers and new urban residents. It upgraded and optimized its online appointment-based door-to-door service model for elderly customers, which benefited more than 50 thousand elderly customers during the first half of the year, enabling them and other customers with limited mobility to enjoy professional financial services without leaving their homes. The Bank continued to optimize cash payment services, guaranteeing the exchange of commemorative coins and ensuring the availability of cash services for important periods such as the Spring Festival. Additionally, the Bank deepened the integration of “Change Purse ” service scenarios in supermarkets, taxis, tourist attractions and pension payment distribution. The Bank further advanced reforms in outlet operations and digital empowerment. It continued to improve the functions of its next-generation outlet service platform, “ICBC Counter Express ”, promoted the centralized processing of complex outlet businesses through remote online means, and enhanced the one-stop service experience for customers visiting outlets. The Bank further promoted the new model for personal wealth inheritance services, with continuous iterative optimization of the processes to improve the quality and efficiency of inheritance services. It optimized the appointment and digital queuing services at outlets, fully respected customer preferences and adapted to customer habits, flexibly offered both online and offline queuing methods, strengthened the capacity to identify and direct customers visiting outlets, and improved customer experience and hall service efficiency. The pilot program of the first in-branch LLM customer services in China ’s financial sector achieved satisfactory results. The functions of portable intelligent devices were upgraded to enhance self-service efficiency. The Bank deepened the development of the “ICBC Account Link ” account service system, continuously enriched and expanded the scenarios for corporate account opening and the application of digital and intelligent account opening, so as to meet clients ’ diverse account service needs. The Bank promoted the “Head Office-to-headquarters ” connectivity of the bank electronic certificate interconnect platform. Its centralized operational service standards were included in the outstanding cases of China Financial Standardization Report issued by PBC. The Bank enhanced customer service and experience. It enhanced service issue monitoring through the Dual-Voice Customer Experience Management System, conducted customer satisfaction evaluation, reached out to the grassroots level and frontline teams to listen to the feedback of customers and employees, focused on addressing high-frequency issues, and promoted the improvement of service quality and efficiency. It continuously improved the centralized complaint handling system, enhanced its capacity for instant customer complaint handling, stepped up efforts to centralize service ticket processing, and upgraded the one-stop customer service experience.
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53 The Bank deepened omni-channel integration. While remaining customer-centric, the Bank continued to improve the omni-channel service matrix that balances proprietary and open channels and integrates online and offline services. This matrix focused on customer service platforms, including mobile banking, open banking and cloud banking, supplemented by digital service tools like WeCom, official accounts, applets and cloud outlets. Online and offline channels were integrated and mutually complementary to enhance the service system featuring “one-point access, all-channel response and digital synergy ”. Through channel integration and system connectivity, the Bank boosted the integration of operational capabilities and the coordination of service strategies, making customer services more targeted. The Bank coordinated the business continuity management across the board. It reinforced the reserve of key resources for Group-wide business continuity, strengthened the construction of infrastructure such as emergency power equipment, backup network lines, backup business premises and disaster recovery data centers, conducted emergency response drills for various extreme scenarios, and continuously improved its emergency response capabilities. 3.2.8 Human Resources Management, Employees and Institutions Human Resources Management With the focus on high-quality development of operations, centering on key areas of business development and competition, the Bank allocated human resources in a coordinated manner and improved operating capability by enhancing the quality and efficiency of human resources. With a focus on the “Five Priorities ” of technology finance, green finance, inclusive finance, pension finance and digital finance, the Bank advanced the development of talent teams in areas such as comprehensive financial services, technology, data, new forms of business and credit risk control, continuously improved the talent introduction, cultivation, evaluation, motivation, and mobility mechanisms, strengthened performance efficiency of personnel, and strove to build a strong financial talent team that supported the building of China into a country with strong financial sector. The Bank promoted in-depth integration of technology, data, and business talents, enhancing the level of sci-tech data empowerment for business development. The Bank continuously optimized the remuneration resource allocation mechanism with value creation as the core, resolutely maintained a fair allocation concept of incentives commensurate with restraints, transmitted the Group ’s strategic objectives for business management, and allocated more remuneration resources to the frontline employees, for the purpose of mobilizing and inspiring the business vitality of institutions at all tiers.
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54 The Bank further advanced the development of financial culture with Chinese characteristics, organized a series of thematic cultural activities to build consensus among all employees and support the Bank ’s high-quality development. Workshops were held to develop special courses on financial culture with Chinese characteristics. Outstanding cultural practices were summarized and publicized, and a compilation of typical cases of financial culture with Chinese characteristics was produced. The Bank strengthened probity culture development in the new era, advanced the construction of probity culture education bases at the Head Office and Changchun Institute of Financial Managers, building a system of probity culture education bases featuring one core and two wings with multi-point coordination. The Bank deepened the development of the Probity Culture Research Center, conducted research projects, and supported the building of an integrity- based bank. Focusing on implementing the “Cadre Education and Training Plan ” in the new era, ICBC launched a series of key training programs, to effectively facilitate training of various levels and types, and continuously enhance the comprehensive quality and performance capability of cadres and employees. The Bank improved the special training system for the five transformations, and rolled out series-based training on enhancing the performance capabilities of risk officers and serving national modernization, as well as special training programs covering artificial intelligence applications, AI-ICBC, and digital and intelligent leadership. The Bank deepened the special training on Clean ICBC, developed standardized courses, and promoted the conduct of special training by branches, so as to support the solid advancement of the building of an integrity-based bank. The Bank continued to advance the Global Leadership Development Program and training for new employees, implemented key programs such as Outlet Heads Training Program, “Sword Sharpening Program ”, “Elite Program ” and “Sailing Program ”, and supported the growth and development of cadres and employees. The Bank optimized the professional qualification certification system, built a platform for on-demand learning and testing, and continued to reduce burdens on and empower grassroots units. The Bank deepened the digital transformation of training, advanced the development of an enterprise-level knowledge system, improved the refinement and intelligence of training resource supply, strengthened the management of the Bank ’s training centers across the board, and continuously enhanced the standardization and effectiveness of education and training efforts.
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55 Basic Information on Employees and Institutions As at the end of June, the Bank had a total of 402,548 employees, including 6,479 employees in domestic subsidiaries, and 15,291 in overseas institutions. As at the end of June, the Bank had a total of 16,227 institutions, representing a decrease of 19 as compared with the end of the previous year. Among them, there were 15,829 domestic institutions and 398 overseas ones. Domestic institutions included the Head Office, 37 tier-one branches and branches directly managed by the Head Office, 467 branches in capital cities and tier-two branches, 15,168 outlets, 22 institutions directly managed by the Head Office and their branches, and 134 controlled subsidiaries and their branches. GEOGRAPHIC DISTRIBUTION OF ASSETS, INSTITUTIONS AND EMPLOYEES AT THE END OF JUNE 2026 Item Assets (in RMB millions) % of total assets Number of institutions % of total institutions Number of employees % of total employees Head Office 7,175,618 12.6 23 0.1 22,259 5.5 Yangtze River Delta 15,959,026 28.0 2,496 15.4 59,310 14.7 Pearl River Delta 9,916,116 17.4 1,911 11.8 46,092 11.4 Bohai Rim 8,631,225 15.1 2,634 16.2 63,012 15.7 Central China 6,573,637 11.5 3,350 20.7 71,950 17.9 Western China 6,993,182 12.2 3,554 21.9 80,316 20.0 Northeastern China 1,874,220 3.3 1,727 10.6 37,839 9.4 Overseas and others 5,018,597 8.8 532 3.3 21,770 5.4 Eliminated and unallocated assets (5,071,028) (8.9) Total 57,070,593 100.0 16,227 100.0 402,548 100.0 Note: Overseas and others include investments in associates and joint ventures.
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56 3.2.9 International Operation The Bank endeavored to enhance its cross-border financial services, focusing on serving China ’s high-level opening-up and high-quality implementation of the Belt and Road Initiative, and on building China into a strong trading nation and a financial powerhouse. It supported institutional opening-up, higher-quality and higher-efficiency pilot FTZs and the “Export to China ” and “Invest in China ” brand development, and provided innovative services for multinational companies in trade settlement and treasury management, facilitating FDI and utilization. In the first half of the year, the international settlement volume of domestic branches was USD2.26 trillion, up 41.2% year on year. At the end of June, the balance of international trade financing of domestic branches was USD49,919 million, an increase of 30.3% compared with the end of the previous year. The Bank supported the construction of a new development pattern and contributed to the development of a “strong currency ”. The Bank continued the “Chunxu Action ” to provide proactive solutions for global market participants in cross-border RMB business such as cross-border settlement, investment and financing as well as risk management, increasingly facilitating trade and investment. The Bank launched the RMB Comprehensive Financial Solutions (RMB CFS), and established a special financing facility of RMB1 trillion for connecting domestic and international markets. The Bank fully leveraged the active role of clearing banks in cultivating the offshore RMB market, continuously strengthened the construction of clearing infrastructure, enhanced clearing service capabilities, and supported steady development of the offshore RMB market. The Bank was approved to act as the RMB joint clearing bank for Africa. Previously, the Bank had acted as the RMB clearing bank in 12 countries. The establishment of this joint RMB clearing bank for Africa marked the extension of the Bank ’s RMB clearing network to 19 African countries where the Standard Bank operates. In the first half of the year, the Bank’s cross-border RMB business exceeded RMB5.5 trillion. International cooperation was enhanced continuously. As the chair of the BRICS Business Council China Chapter, the Bank lived up to its responsibilities and effectively served the cooperation among enterprises of BRICS countries. The Bank held events such as the China-Europe CEO Roundtable and has been facilitating the upgrading of China-Europe economic and trade relations relying on China-Europe Business Council ( “CEBC ”). The Bank strengthened the Belt and Road Bankers Roundtable ( “BRBR”) mechanism to promote the high-quality implementation of the Belt and Road Initiative. The Bank provided solid services for international expos including the China International Import Expo and China International Supply Chain Expo, contributing financial strength to global economic and trade cooperation.
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57 Global network was developed, strengthening cross-border financial servicing capacity. As at the end of June, the Bank had been operating 398 overseas institutions in 49 countries and regions, and indirectly had its presence across multiple African markets through shareholding in the Standard Bank Group (operating in 21 African countries). In total, the Bank had 241 institutions in 32 Belt and Road Initiative participating countries. Its service network has full coverage of six continents and key international financial centers around the world. Upholding the positioning as leading banks, overseas institutions of the Bank continuously enhanced global financial service capabilities in terms of corporate loans, investment banking and asset management, financial markets, settlement and clearing, asset custody and retail finance. They strengthened integrated marketing both in and outside China with RMB and foreign currencies, thereby improving the global financial service system for customers. MAJOR INDICATORS FOR OVERSEAS INSTITUTIONS Item Assets (in USD millions) Profit before taxation (in USD millions) Number of institutions At 30 June 2026 At 31 December 2025 Six months ended 30 June 2026 Six months ended 30 June 2025 At 30 June 2026 At 31 December 2025 Hong Kong SAR and Macao SAR 231,190 214,772 785 696 105 105 Asia-Pacific Region (except Hong Kong SAR and Macao SAR) 181,760 164,240 1,103 1,012 88 87 Europe 112,802 105,933 618 459 52 64 America 46,308 56,436 225 212 152 153 African Representative Office – – – – 1 1 Eliminations (65,607) (54,139) Subtotal 506,453 487,242 2,731 2,379 398 410 Investment in Standard Bank (1) 4,525 4,373 305 257 Total 510,978 491,615 3,036 2,636 398 410 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. At the end of June, total assets of the Bank ’s overseas institutions (including overseas branches, overseas subsidiaries and investment in Standard Bank) were USD510,978 million, representing 6.1% of the Group ’s total assets. Profit before taxation during the period was USD3,036 million, accounting for 9.8% of the Group ’s profit before taxation.
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58 Tokyo Branch (Japan) Seoul Branch (South Korea) Busan Branch (South Korea) Mongolia Representative Office (Mongolia) Singapore Branch (Singapore) ICBC (Indonesia) (Indonesia) ICBC (Malaysia) (Malaysia) Manila Branch (Philippines) ICBC (Thai) (Thailand) Hanoi Branch (Vietnam) Ho Chi Minh City Representative Office (Vietnam) Vientiane Branch (Lao PDR) Phnom Penh Branch (Cambodia) 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) ICBC (New Zealand) (New Zealand) Auckland Branch (New Zealand) New York Branch (USA) ICBC (USA) (USA) ICBC (Canada) (Canada) ICBC (Mexico) (Mexico) ICBC (Brasil) (Brazil) ICBC (Peru) (Peru) ICBC (Argentina) (Argentina) ICBC Investments Argentina (Argentina) Inversora Diagonal (Argentina) Panama Branch (Panama) Hong Kong Branch (Hong Kong, China) ICBC (Asia) (Hong Kong, China) ICBC International (Hong Kong, China) ICBC (Macau) (Macao, China) Macau Branch (Macao, China) Investment in Standard Bank (South Africa) African Representative Office (South Africa) Frankfurt Branch (Germany) Luxembourg Branch (Luxembourg) ICBC (Europe) (Luxembourg) Paris Branch (France) Amsterdam Branch (the Netherlands) Brussels Branch (Belgium) Milan Branch (Italy) Madrid Branch (Spain) Warsaw Branch (Poland) Greece Representative Office (Greece) ICBC (Macau) Lisbon Representative Office (Portugal) ICBC (London) (UK) London Branch (UK) ICBC Standard Bank (UK) Bank ICBC (JSC) (Russia) ICBC Turkey (Türkiye) Prague Branch (Czech Republic) Zurich Branch (Switzerland) ICBC (Austria) (Austria) DISTRIBUTION OF OVERSEAS INSTITUTIONS Africa Institutions (country/region) America Institutions (country/region) Europe Institutions (country/region) Asia-Pacific Region (except Hong Kong SAR and Macao SAR) Institutions (country/region) Hong Kong SAR and Macao SAR Institutions (country/region)
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59 3.2.10 Comprehensive Operation ICBCUBS ICBCUBS is primarily engaged in various asset management businesses (including mutual funds, pension funds, separately managed accounts, special portfolios and cross-border services) and such other businesses as approved by the CSRC. It is one of the few “fully qualified ” fund companies in the industry. ICBCUBS vigorously channeled long-term capital into the market in support of reinforcing the pension security system, and the scale of pension investment management reached a new high. It actively contributed to the high-quality development of the capital market, vigorously developed equity funds, and the scale of actively managed equity funds increased by 13.0% from the end of the previous year. ICBCUBS continued to increase investment support for high-quality enterprises in the technology field, with the investment scale growing steadily and the performance of actively managed technology equity funds being outstanding. It thoroughly implemented the requirements for the reform of mutual funds, enhanced professional investment research capabilities and investor service capabilities, and emphasized investors ’ returns. At the end of June, ICBCUBS managed 285 mutual funds and 691 annuities, separately managed accounts and special portfolios, with assets under management totaling RMB2.56 trillion, of which the pension investments under management exceeded RMB1.3 trillion. ICBC Leasing ICBC Leasing is mainly engaged in the financial leasing of large-scale equipment in key areas such as aviation, shipping, energy and electric power, rail transit, equipment manufacturing and SRDI enterprises. It provides a range of financial and industrial services such as the transfer of leasing assets, asset trading and asset management. ICBC Leasing continued to consolidate the “One Core, Two Wings ” layout of the aviation business, fully supported the “Going Global ” of domestically manufactured aircraft, continuously improved the engine leasing business system, actively carried out RMB financing leasing business, and consolidated its first-mover advantage in the low-altitude economy sector. In the shipping sector, ICBC Leasing focused on the Chinese shipbuilding industry and shipping industry, solidly built its core competitiveness, actively cooperated with central and state-owned shipping enterprises, and ensured the safety of transportation of the country ’s important strategic materials. It supported the development of green ships, with the proportion of green ship balances in the sector reaching 42.1%. In the domestic comprehensive leasing sector, ICBC Leasing steadily promoted the expansion of scale, coverage and quality, increased investment in the field of new infrastructure, built a pipeline of green energy industry chain projects, served regional “single-item champion manufacturers ” and the top 500 private manufacturing enterprises in China, and launched the first interbank joint leasing project in the computing power sector.
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60 ICBC-AXA ICBC-AXA operates various insurance businesses such as life insurance, health insurance and accident insurance, as well as reinsurance of the aforesaid businesses, businesses permitted by national laws and regulations to use insurance funds and other businesses approved by regulatory authorities. ICBC-AXA focused on the diverse needs of customers, accelerated the transition to variable-income products and developed a diverse matrix of participating insurance products that covers all channels. It further innovated the pension finance products and built an integrated “scenario + product + service ” ecosystem. It enriched the supply of critical illness products, forming a multi-tiered protection system covering whole- life critical illness and term critical illness. It stepped up the research and development of products such as nursing insurance, term life insurance and disability insurance, to comprehensively respond to customers ’ diversified risk protection needs. ICBC-AXA comprehensively improved its customer service capabilities, built a “2+N” value-added service system for health and elderly care products centered on “Yu Wei Lai ” and “Sheng Hua Nian ”, and expanded its network of cooperative pension institutions to 16 cities with 21 institutions. ICBC-AXA optimized the architectural layout of its customer benefits system, introducing high-value and exclusive services covering the three core areas of health, pension and lifestyle. The commercial annuity business achieved leapfrog development, with the year-on-year growth rate of regular premium for core business indicators reaching 28%, and achievements were made in the supply of pension financial products, ecosystem development and age-friendly upgrades. ICBC-AXA enriched the supply of inclusive protection products, innovatively launched an exclusive health protection product for children, which was awarded “2026 Inclusive Insurance Product of the Year ” by the China Banking and Insurance News . ICBC-AXA deeply advanced the Huimin Insurance program, effectively improving the medical protection level of the people. In Brand Finance ’s Insurance 100 2026, it ranked first among joint-venture insurance companies in China, with a brand value of USD1.1 billion. ICBC International ICBC International is a wholly owned subsidiary of the Bank in Hong Kong SAR, China. Its business scope covers sponsorship and underwriting for listing, underwriting for bond issuance, financial consulting, direct investment, sales and trading, asset management, market research, etc., and it provides all-round cross-border comprehensive financial services for corporate, institutional and personal customers.
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61 ICBC International further advanced the building of its “five-in-one ” business landscape featuring balanced and coordinated development of investment banking, sales and trading, investment, asset management and investment research services. During the first half of the year, ICBC International completed one Hong Kong IPO sponsorship project, eight Hong Kong IPO and one US IPO underwriting projects, and participated in 28 bond underwriting projects, of which the underwriting scale of RMB Dim Sum Bond continued to grow. ICBC International upgraded its innovative product system, consolidated its core strengths in bond market making, securities brokerage and margin financing, served the two-way opening up of the Chinese mainland and Hong Kong SAR capital markets, and contributed to the enhancement of RMB internationalization. ICBC International fully supported national strategies and industrial upgrading, precisely matching the investment and financing needs of core customers in key areas such as technology, advanced manufacturing, healthcare, and new consumption. It accelerated the development of specialized businesses such as cross-border asset management, alternative investment and fund of funds, and promoted the official launch of cross-border asset management products in the China Interbank Bond Market (CIBM). Its investment research capabilities continued to improve, and the “ICBC International New Quality Productive Forces Stock Index” productization process was accelerated, making the index increasingly influential in the market. In the first half of the year, ICBC International won the “Best Bond Advisor in Hong Kong” award from The Asset for seven consecutive years, and was selected as the 2025 Golden Dragon • Financial Power “‘Five Priorities ’ of Finance Case ” by the Financial News . ICBC Investment ICBC Investment is one of the first institutions in China to pilot debt-for-equity swaps of banks. It holds the franchise license of non-bank financial institution and is mainly engaged in debt-for-equity swaps and supporting businesses, and carries out pilot equity investment through affiliates. By giving full play to its licenses and professional expertise and focusing on serving the real economy and preventing and defusing financial risks, ICBC Investment strengthened the investment-lending coordination, improved integrated financial services that combine equity and debt, enriched the varieties of debt-for-equity private equity fund products, and made steady progress in the quality development of market-based debt-for-equity swap businesses. Meanwhile, ICBC Investment greatly supported enterprises in reducing and stabilizing leverage, enhancing strength, and promoting reforms. It continued to enhance the ability and results of risky asset disposal across the Group, played an active role in the formulation of corporate debt restructuring, debt-for-equity swap plans and reorganization plans, standardized corporate governance and production & operations, helped enterprises tide over difficulties through reform and continued to improve the asset quality of banks. It promoted pilot equity investment in an orderly manner and strengthened its support for sci-tech innovation and the private economy. Further playing its role as a shareholder, ICBC Investment dispatched directors to the debt-for-equity swap enterprises according to law, got deeply involved in corporate governance, and promoted the healthy and sustainable development of such enterprises.
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62 ICBC Wealth Management ICBC Wealth Management mainly engages in the issuance of wealth management products, wealth management advisory and consulting services as well as other activities approved by the NFRA. ICBC Wealth Management leveraged its wealth management business license for investment and financing to actively align with major national strategies. It increased support for sci-tech innovation enterprises and green industries through diverse means such as bonds and equity, with the investment scale and proportion in technology finance and green finance steadily increasing. ICBC Wealth Management guided wealth management funds to flow precisely into key areas and weak links of the real economy and contributed to the development of new quality productive forces and the modern industrial system. Adhering to a customer-centric approach, it made efforts to explore multi-asset and multi-strategy investment opportunities, continuously improved its layered and adaptable product offerings, focused on building a “fixed income+ ” product system, formed a brand effect with product lines represented by “Hong Kong IPO ”, and continuously expanded the coverage and depth of inclusive finance and pension finance services. ICBC Wealth Management improved its investment research system, iteratively optimized product quality control mechanisms, and, with industry-leading stable performance, protected the preservation and appreciation of investors ’ wealth in a complex market environment. Closely focusing on the investment needs of inclusive groups, it established and improved a rapid response and companionship mechanism, comprehensively upgraded its financial education and publicity system, and provided customers with full-cycle companionship services. At the end of June, the balance of the products of ICBC Wealth Management reached RMB1,991,439 million, all of which were net-worth products. WEALTH MANAGEMENT PRODUCTS OF ICBC WEALTH MANAGEMENT THAT WERE ISSUED, MATURED, AND EXISTING DURING THE REPORTING PERIOD In RMB millions, except for tranches and percentages Item At 31 December 2025 Products issued Matured products At 30 June 2026 Number of tranches Amount Number of tranches Amount (1) Number of tranches Amount (2) Number of tranches Amount Percentage (%) Classified by fundraising method Publicly offered 1,011 2,037,275 590 2,095,550 313 2,217,263 1,288 1,933,560 97.1 Privately offered 154 53,965 75 26,677 78 23,218 151 57,879 2.9 Classified by investment type Fixed-income 965 1,990,678 621 2,079,304 326 2,193,968 1,260 1,894,038 95.1 Equity 32 1,571 2 60 30 406 4 409 0.0 Hybrid 168 98,991 42 42,863 35 46,107 175 96,992 4.9 Total 1,165 2,091,240 665 2,122,227 391 2,240,481 1,439 1,991,439 100.0 Notes: (1) The product issuance amount refers to the sum of the actual amount raised from newly issued wealth management products and the subscription amount of existing wealth management products during the reporting period. (2) The product maturity amount refers to the sum of the redemption amount of wealth management products that matured and the amount redeemed from outstanding wealth management products during the reporting period.
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63 DIRECT AND INDIRECT INVESTMENTS OF ICBC WEALTH MANAGEMENT IN WEALTH MANAGEMENT PRODUCTS AS AT THE END OF JUNE 2026 In RMB millions, except for percentages Asset type Amount Percentage (%) Cash, deposits and reverse repurchase agreements 901,540 44.2 Bonds 794,966 39.0 Non-standard debt assets 45,012 2.2 Other assets (1) 299,452 14.6 Total 2,040,970 100.0 Note: (1) Other assets include equity assets, financial derivatives, QDII and mutual funds. 3.2.11 Major Holding Subsidiaries and Equity Participating Companies Major Overseas Subsidiaries Institution Principal business At 30 June 2026 Six months ended 30 June 2026 Issued share capital/ paid-in capital Total assets (in USD millions) Net assets (in USD millions) Net profit (in USD millions) Industrial and Commercial Bank of China (Asia) Limited Commercial banking HKD44,188 million 140,389.11 21,546.14 659.60 ICBC International Holdings Limited Investment banking HKD5,963 million 6,417.53 649.71 (40.49) Industrial and Commercial Bank of China (Macau) Limited Commercial banking MOP589 million 48,905.30 3,938.27 6.01 PT. Bank ICBC Indonesia Commercial banking IDR3.71 trillion 3,064.89 454.37 17.99 Industrial and Commercial Bank of China (Malaysia) Berhad Commercial banking MYR833 million 1,465.82 385.63 11.19 Industrial and Commercial Bank of China (Thai) Public Company Limited Commercial banking THB20,107 million 7,742.60 1,520.50 48.28 Industrial and Commercial Bank of China (Almaty) Joint Stock Company Commercial banking KZT8,933 million 1,536.60 273.17 34.33 Industrial and Commercial Bank of China (New Zealand) Limited Commercial banking NZD234 million 1,816.61 208.14 6.16 Industrial and Commercial Bank of China (Europe) S.A. Commercial banking EUR437 million 9,266.21 585.12 10.08 ICBC (London) PLC Commercial banking USD200 million 1,466.91 608.61 19.65 ICBC Standard Bank PLC Banking USD1,083 million 39,963.18 2,207.40 149.17 Bank ICBC (joint stock company) Commercial banking RUB10,810 million 9,863.66 1,255.17 144.41 ICBC Turkey Bank Anonim Ş irketi Commercial banking TRY19,679 million 2,391.81 139.98 18.80 ICBC Austria Bank GmbH Commercial banking EUR200 million 1,295.46 231.77 0.88 Industrial and Commercial Bank of China (USA) NA Commercial banking USD369 million 2,859.36 496.49 9.76
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64 Institution Principal business At 30 June 2026 Six months ended 30 June 2026 Issued share capital/ paid-in capital Total assets (in USD millions) Net assets (in USD millions) Net profit (in USD millions) Industrial and Commercial Bank of China (Canada) Commercial banking CAD208 million 2,571.91 355.13 7.35 Industrial and Commercial Bank of China Mexico S.A. Commercial banking MXN1,597 million 692.17 94.27 13.32 Industrial and Commercial Bank of China (Brasil) S.A. Commercial banking BRL202 million 340.32 29.40 (1.61) ICBC PERU BANK Commercial banking USD120 million 743.02 174.00 4.76 Industrial and Commercial Bank of China (Argentina) S.A.U. Commercial banking ARS562,590 million 9,423.76 1,719.98 66.85 Major Domestic Subsidiaries In RMB100 millions Institution Principal business At 30 June 2026 Six months ended 30 June 2026 Issued share capital/ paid-in capital Total assets Net assets Net profit ICBC UBS Asset Management Co., Ltd. Fund management 2 320.32 220.61 22.18 ICBC Financial Leasing Co., Ltd. Leasing 330 4,075.88 573.66 13.14 ICBC-AXA Assurance Co., Ltd. Insurance 125.05 4,068.96 231.65 43.98 ICBC Financial Asset Investment Co., Ltd. Financial asset investment 270 2,175.70 614.89 39.14 ICBC Wealth Management Co., Ltd. Wealth management 160 247.39 245.33 10.58 Major Equity Participating Company Standard Bank Group Limited 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 continued to hold 324,963,464 shares or 19.74% of Standard Bank and to be its single largest shareholder. Based on mutual benefit and win-win cooperation, the two sides furthered their cooperation in equity cooperation, customer expansion, project financing, product innovation, risk management, FinTech and staff exchange, etc. As at the end of June, Standard Bank recorded total assets of ZAR3,807,669 million and net assets of ZAR322,372 million. It generated a net profit of ZAR30,113 million in the first half of 2026.
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65 3.3 Capital Management In the first half of the year, the Bank continuously improved scientific capital raising, efficient allocation, precise measurement, long-term constraint and normal optimization management mechanism, and continued to elevate the capital use efficiency. It appropriately conducted capital replenishment, optimized the capital structure and reduced the cost of capital, thus laying a solid capital foundation to serve the real economy. During the reporting period, all capital indicators performed well, of which the capital adequacy ratio was kept at a sound and appropriate level. 3.3.1 Capital Adequacy Ratio and Leverage Ratio According to the scope of implementing the advanced capital measurement approaches as approved by the regulatory authorities, the Bank adopted the foundation internal ratings-based ( “IRB”) approach for corporate credit risk and the advanced IRB approach for retail credit risk that met the regulatory requirements, and adopted the weighted approach for credit risk uncovered by the IRB approach, the standardized approach for market risk, and the standardized approach for operational risk. As at the end of June, the common equity tier 1 capital adequacy ratio, tier 1 capital adequacy ratio, capital adequacy ratio and leverage ratio calculated by the Bank in accordance with the Rules on Capital Management of Commercial Banks stood at 13.21%, 14.43%, 18.57% and 7.20%, respectively, complying with regulatory requirements 1. CAPITAL ADEQUACY RATIO In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Net common equity tier 1 capital 3,940,780 3,837,149 Net tier 1 capital 4,306,278 4,222,676 Net capital base 5,539,090 5,302,796 Risk-weighted assets (1) 29,832,780 28,269,948 Credit risk-weighted assets 27,307,362 25,927,325 Market risk-weighted assets 647,143 472,264 Risk-weighted assets for switch between trading book and banking book 89,365 81,449 Operational risk-weighted assets 1,788,910 1,788,910 Common equity tier 1 capital adequacy ratio (%) 13.21 13.57 Tier 1 capital adequacy ratio (%) 14.43 14.94 Capital adequacy ratio (%) 18.57 18.76 Note: (1) Refers to risk-weighted assets after capital floor and adjustments. 1 The Bank ’s capital adequacy ratio and leverage ratio both met the additional regulatory requirements for systemically important banks.
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66 LEVERAGE RATIO In RMB millions, except for percentages Item At 30 June 2026 At 31 December 2025 Net tier 1 capital 4,306,278 4,222,676 Balance of adjusted on- and off-balance sheet assets 59,845,527 56,236,976 Leverage ratio (%) 7.20 7.51 For more information on capital measurement and leverage ratio of the Bank, please refer to the Pillar 3 Disclosure Report of Capital Management for the First Half of 2026 of Industrial and Commercial Bank of China Limited issued by the Bank. 3.3.2 Capital Financing Management 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 capital strength, optimize capital structure and control the cost of capital rationally. Issuance and Redemption of Capital Instruments In April-August 2026, the Bank publicly issued five series of tier 2 capital bonds of the size of RMB280.0 billion totally in the National Interbank Bond Market. All the raised funds after deducting the issuance expenses will be used to replenish the Bank ’s tier 2 capital in accordance with applicable laws and the approval of relevant competent authorities. In April-July 2026, the Bank publicly issued three tranches of undated additional tier 1 capital bonds with a total scale of RMB70.0 billion in the National Interbank Bond Market. The raised funds will be used to replenish the Bank ’s additional tier 1 capital in accordance with applicable laws and the approval of relevant competent authorities. In January 2026, the Bank redeemed the tier 2 capital bonds of RMB30.0 billion issued in the domestic market in January 2021. In June 2026, the Bank redeemed the undated additional tier 1 capital bonds of RMB70.0 billion issued in the domestic market in June 2021.
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67 Issuance of Total Loss-Absorbing Capacity ( “TLAC”) Non-Capital Debt Instruments In April 2026, the Bank publicly issued TLAC non-capital bonds of RMB50.0 billion in the National Interbank Bond Market. After deducting the issuance expenses, the funds raised from the bond issuance will be used to enhance the Bank ’s TLAC in accordance with applicable laws and the approval of relevant competent authorities. For details on the issuance and redemption of capital instruments and TLAC non-capital debt instruments of the Bank, please refer to the announcements published by the Bank on the website of the SSE, the “HKEXnews ” website of the HKEX and the website of the Bank. 3.4 Outlook Since the beginning of this year, the international situation has remained turbulent, geopolitical conflicts have occurred frequently, the stability of supplies of energy and other resources has declined, and global economic growth has remained weak. Against the backdrop of increasing external uncertainties and unforeseen factors, China has effectively responded to various external shocks. The economy has maintained a development trend characterized by new growth drivers and improving economic structure. Notable progress has been made in high-quality development, while new technologies, products and business forms have continued to emerge. The potential of China ’s ultra-large market has continued to be unleashed, and the resilience of foreign trade has become more evident, injecting greater certainty into the operation and development of the banking sector. In the second half of the year, guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the Bank will adhere to the general working principle of pursuing progress while ensuring stability, fully and faithfully act on the new development philosophy on all fronts, and give full play to the functions of finance. Focusing on accelerating the establishment of a new development paradigm, the Bank will better coordinate domestic and international imperatives, balance development and security, accelerate transformation, reform and product innovation, fully support the transition from old to new growth drivers, and contribute to the economy ’s continued progress toward innovation-driven, high-quality and sound development, thereby ensuring a good start to the 15 th Five-Year Plan period. The Bank will thoroughly study and implement Xi Jinping Thought on Party Building, the guiding principles of General Secretary Xi Jinping ’s important speech on July 1, and his important remarks on establishing a correct understanding of what it means to perform well and act accordingly. It will consolidate and expand the achievements of the related education campaign, advance the guidance of Party building with higher standards and more concrete measures, promote full and rigorous Party self-governance and strict governance of the Bank, and accelerate the development of an integrity-based bank. Closely following the major financial tasks of guarding against risks, strengthening supervision and promoting high-quality development, the Bank will act as a leading bank to be the main force in serving the real economy, the ballast stone in maintaining financial stability, a bellwether in optimizing operational quality and efficiency, and a benchmark bank in strengthening major responsibilities and core businesses. It will maintain strategic resolve, strengthen strategic execution, and take high-quality development and high-level security to a new level.
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68 First, the Bank will further strengthen risk prevention and compliance management. It will uphold a sound and prudent business philosophy, continue to reinforce its Enterprise Risk Management System (ERM), enhance its capability to apply digital and intelligent risk control technologies, resolve risks in the real estate sector, small and medium-sized financial institutions and local government debt, intensify efforts to address challenges associated with asset quality, maintain a stringent stance on internal control and case prevention, and ensure that all types of risks remain generally under control. Second, the Bank will further support high-quality economic and social development. Leveraging its strengths in industries, the Bank will make every effort to support the high-end, intelligent and green development of traditional manufacturing, actively align with major projects and programs under the 15 th Five-Year Plan, such as the “Six Networks ” initiative, step up support for “Major Strategies and Key Fields ” and “Renewal and Trade-in ” programs, and fully support the development of a modern industrial system and new quality productive forces. Highlighting its distinctive features in commerce, the Bank will enhance its cross-border financial service capabilities with a focus on deepening mutually beneficial international economic and trade cooperation, advance Global Integrated Operations (GIO), deepen coordination between the parent bank and its subsidiaries, between domestic and overseas operations, and between RMB and foreign currency businesses, improve its comprehensive overseas service system, and serve global customers through ICBC ’s global network. Third, the Bank will further advance its own high-quality development. It will thoroughly implement the “AI+” Action Plan, adopt a dual-driver approach based on digital and intelligent technologies and data elements, strengthen AI-driven momentum, and accelerate the development of “AI-ICBC ”. Leveraging CFS, the Bank will improve its system of new infrastructure for clearing, settlement, payment and custody, expand new businesses in investment banking, asset management, wealth management and trading, build an integrated service ecosystem, and continue to improve the quality and efficiency of operational transformation. 3.5 Hot Topics in the Capital Market Hot Topic 1: Advancing the Major Task of Technology Finance In the first half of 2026, the Bank earnestly implemented the decisions and plans of the CPC Central Committee on technology finance, promoted the deep integration of technological and industrial innovation, supported high-level self-reliance and strength in science and technology, continued to refine its technology finance service system, and developed an ecosystem service platform for technology finance, to provide entities engaged in sci-tech innovation with a suite of full-lifecycle products tailored to their technology R&D, industrial development and talent cultivation activities.
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69 I. Supporting the development of China into a leading country in science and technology Proactively serving the three International Science and Technology Innovation Centers. The Bank formulated work plans for serving the three International Science and Technology Innovation Centers in Beijing (the Beijing-Tianjin-Hebei region), Shanghai (the Yangtze River Delta) and the Guangdong-Hong Kong-Macao Greater Bay Area. It strengthened product innovation and marketing efforts and, in light of market resource endowments, prioritized support for emerging pillar industries such as integrated circuits, aerospace, biomedicine, the low-altitude economy, new-type energy storage and intelligent robotics. Strongly supporting sci-tech innovation and R&D activities. The Bank supported major national science and technology projects for comprehensive environmental governance in the Beijing- Tianjin-Hebei region, and took the lead among peers in terms of loan disbursements to enterprises participating in major projects. Among key enterprises that received 2025 State Science and Technology Awards, the Bank provided services to more than 90% and financing to over 50% of such enterprises. Implementing fiscal and financial policy instruments. In the first half of the year, the Bank led the market in disbursements of interest-subsidized loans for sci-tech innovation, effectively helping address the difficulties and high costs faced by sci-tech enterprises in obtaining financing and facilitating their accelerated development. II. Optimizing the full-lifecycle product portfolio Focusing on the commercialization cycle of sci-tech innovations and the full-lifecycle of enterprises, the Bank fully leveraged the synergies across its equity investment, lending, bond, insurance, leasing and custody business systems, removed barriers between business lines, and provided full-chain financial services. Optimizing credit supply. The Bank continuously optimized and launched innovative credit products to better meet the needs of sci-tech enterprises of different types and at different stages. It continued to enhance its capabilities in identifying sci-tech enterprises and selecting sectors, further optimized its credit approach, upgraded its online products, and refined competitive products including the Disruptive Technological Innovation Loan, R&D Loans and Sci-Tech Talent Loans. In the first half of the year, the Bank ’s sci-tech loan balance led the market. Strengthening investment-lending coordination. The Bank closely coordinated with partner venture capital institutions and industry funds to provide loans upon investment and promote investment through lending. It leveraged the catalytic role of its equity investment business in extending its reach across industries, engaged with enterprises at an earlier stage in their lifecycle, and provided comprehensive financial solutions. In the first half of the year, the Bank supported enterprises in the technology field with more than RMB100.0 billion in equity investments through the Group ’s integrated subsidiaries.
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70 Leveraging the distinctive strengths of financial leasing. ICBC Leasing, a subsidiary of the Bank, supported industrial upgrading, sci-tech innovation and major national strategies. It continued to act on the strategy of “One Core, Two Wings ”, provided strong support for domestically manufactured aircraft to enter overseas markets, continued to improve its aircraft engine leasing business system, and consolidated its first-mover advantage in the low-altitude economy. It seized opportunities arising from the deep integration of technological and industrial innovation and explored new models combining equipment leasing with the commercialization of sci-tech achievements. In the first half of the year, disbursements under its technology finance leasing business increased by more than 150% year on year. Expanding coverage across all products. Upholding the concept of “investment in people ”, the Bank established an “entrepreneur-scientist ” service framework and provided tailored comprehensive services for entrepreneurial teams in the technology field. Guided by the concept of comprehensive financial services, the Bank leveraged its strengths in settlement, treasury, foreign exchange and trading, enhanced product suitability, and provided diversified services across successive stages in a targeted manner. III. Building a technology finance ecosystem Taking a systemic approach, the Bank planned the development of technology finance with a focus on developing a technology finance ecosystem. It expanded its business scope from financial services to non-financial services, extended its function from a credit intermediary to an information intermediary, expanded its service recipients from traditional customers to ecosystem participants, and transformed itself from a financial provider into an ecosystem enabler. With a focus on improving the quality and efficiency of the commercialization of sci-tech achievements, the Bank developed a digital ecosystem service platform for technology finance through comprehensive financial services. Leveraging its four core strengths in customer base, channels, products and technology, the Bank systematically connected suppliers of sci- tech achievements, such as universities and research institutes, entities demanding sci-tech achievements, such as sci-tech enterprises and state-owned enterprises, including central state- owned enterprises, and policy resource providers, such as institutions providing services for the commercialization of sci-tech achievements and government departments. In this way, it built an integrated sci-tech innovation ecosystem encompassing technology, industry, finance, policy and professional services, and comprehensively supported the deep integration of technological and industrial innovation.
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71 Hot Topic 2: Comprehensive Financial Solutions (CFS) ICBC aligned its operations with the national 15 th Five-Year Plan, discharged its responsibilities as a leading bank, closely followed the inherent requirements for building a world-class modern financial institution with Chinese characteristics, proactively adapted to the new internal and external development environment and new trends in the development of the industrial system, and clarified its positioning within the service industry. It was committed to comprehensively upgrading its customer service philosophy, service model and service mechanisms under the new circumstances, thereby further improving the quality and efficiency of customer services and providing solid support for the real economy. In the first half of 2026, the Bank ’s corporate loans and corporate deposits increased by RMB1.25 trillion and RMB1.10 trillion, respectively, from the end of the previous year, while the number of corporate customers increased by 859.2 thousand, significantly expanding the breadth and depth of customer services. I. Broadening the scope of services through the four-pronged approach and precisely meeting the diverse needs of the real economy To empower the development of the real economy on all fronts, the Bank introduced an innovative four-pronged service model of funding support, advisory intelligence, technology enablement and ecosystem integration and met enterprises ’ comprehensive financial needs throughout their full-lifecycle and across multiple dimensions through a package of coordinated measures. First, strengthening comprehensive funding supply. To address the difficulties and pain points in financing throughout the enterprise full-lifecycle, the Bank provided full-spectrum financing support through loans, bonds, equity and leasing. It made integrated use of domestic and overseas financing instruments, RMB and foreign currency financing instruments, and on- and off-balance- sheet financing instruments, connected credit and equity markets, increased funding allocation to fields of new quality productive forces, and lowered financing costs for enterprises. Second, providing comprehensive advisory intelligence support. Focusing closely on enterprise needs, the Bank strengthened coordination with government departments and various financial institutions, integrated internal and external resources, and provided comprehensive services in strategy, risk control, investment and research, among other areas, so as to help state-owned enterprises strengthen their security foundations and private enterprises accelerate breakthroughs in their sectors, and support the development of a modern industrial system. Third, delivering technology enablement services across all scenarios. Leveraging its strengths in financial technology, the Bank focused on enterprises ’ needs for information technology consulting, technology platform development, data operations and applications, and enhanced digital capabilities. It strengthened the joint development of scenario-based ecosystems, proactively provided technology, platforms and other resources, and worked with enterprises to accelerate digital transformation. Fourth, improving end-to-end ecosystem integration services. Against the new landscape of global cooperation and drawing on cross-border finance, supply chain finance, treasury management and other services, the Bank provided enterprises with efficient, convenient and low-cost funding services for participating in international competition and integrating into global innovation networks. It supported enterprises in transforming their innovative achievements into digital products and standards that can be deployed and shared globally to empower global partners.
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72 II. Regarding service systems, strengthening coordination across functions to achieve system-wide integration Given the extensive departmental structures and segmented business lines of large commercial banks, the Bank focused on breaking down internal barriers and established cross-department and cross-segment coordination mechanisms. By coordinating “four major segments ”, namely Head Office departments, domestic branches, overseas institutions and integrated subsidiaries, it built a unified external marketing system to ensure that customers could receive consistent, comprehensive and seamless services at every point of interaction in the Bank. The Bank adopted a model of coordination across functions, effectively addressed the constraints on the service capabilities of individual departments, systematically integrated the Group ’s resources, and enabled “one-point access and global response ”, thereby providing enterprises with a more efficient and convenient experience in accessing comprehensive financial services. III. Regarding institutional safeguards, deepening coordination across levels to ensure effective execution To ensure the effective operation of the coordinated support mechanism, the Bank implemented precise product-to-customer matching across its full spectrum of products and the broadest customer base, refined the global lead customer manager mechanism, and strengthened digital operations. The lead customer manager most familiar with customers ’ needs coordinated resources across the Bank and provided core customers with in-depth, closely tailored services under a “one- bank, one-strategy ” customized service model. Through a coordination mechanism extending across all organizational levels, the Bank ensured that all support measures were effectively implemented, delivered tangible value to enterprises, and ultimately enabled itself and its corporate customers to achieve mutual benefit, win-win outcomes and shared growth. In the face of major tasks during the 15 th Five-Year Plan period, including developing a modern industrial system and achieving high-level self-reliance and strength in science and technology, ICBC will accelerate the development of Comprehensive Financial Solutions. Through the four- pronged approach of funding support, advisory intelligence, technology enablement and ecosystem integration, it will build a “rainforest ecosystem ” for financial services, create greater value for customers, and make greater financial contributions to advancing Chinese modernization. Hot Topic 3: Optimizing Risk Management Technology ICBC regarded risk management as a core competitive strength, strictly safeguarded the bottom line of asset security, strengthened governance constraints and risk safeguards, and drove sustainable value growth through prudent and sound risk prevention and control. At present, it has established a risk control system featuring sound mechanisms, advanced technology and integrated platforms, which serves as a “stabilizer ” and “ballast stone ” in ensuring sound development and responding to risk shocks.
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73 I. Establishing an “E-shaped ” enterprise risk management structure The Bank aligned risk control committees, risk officers and risk control departments across levels to strengthen overall risk coordination. The Bank established integrated Risk Management and Internal Control Committees at the Head Office and branches to strengthen collective review and coordinated deployment of major and key matters, appointed risk officers at all domestic and overseas tier-one institutions and tier-two branches to play a key role in coordination and checks and balances, strengthened risk control departments at all levels, and combined comprehensive management with specialized expertise to ensure coordinated management of all types of risks and cross-cutting areas. The Bank strengthened cross-functional joint risk prevention and control across the three lines of defense. Within the first line of defense, the Bank embedded the principle that “business management must include risk management ”, established compact risk management and control middle-office units in each business line at the Head Office, and moved controls forward to manage risks at source. The Bank reinforced the specialized expertise of the second line of defense to support sound business development. The Bank enhanced the capabilities of the third line of defense to identify substantive and deep-seated issues and promoted remediation of their root causes. Across all three lines of defense, the Bank strengthened joint risk prevention and control, and gave full play to their combined strengths to enhance resilience against risks. II. Implementing the four-pronged enterprise risk management measures Managing people. The Bank integrated grid-based and intelligent management into its day-to- day operations, covering employees both domestically and overseas. Through its Responsibility Determination Committee and Misconduct Accountability Committee, the Bank focused on the “key few ” and strictly held relevant personnel accountable under a three-step mechanism comprising responsibility review, responsibility determination and accountability enforcement. Managing funds. The Bank brought all on- and off-balance sheet assets and businesses within the scope of risk management, strengthened credit management under the “Three Gates and Seven- Color Pools ” credit management framework, implemented the new credit approval rules to a high standard, enhanced risk asset management, and used a range of disposal measures to enhance actual recoveries. As a result, the NPL ratio fell by 0.02 percentage points from the beginning of the year to 1.29%. Managing lines of defense and bottom lines. The Bank strictly observed the red line for compliant operations, further embedded risk management mechanisms and control measures throughout the institutions at all levels of the Group, and firmly upheld the bottom line of preventing systemic risks. As at the end of June, the capital adequacy ratio, leverage ratio and RMB liquidity ratio were 18.57%, 7.20% and 67.3%, respectively, continuing to meet regulatory requirements and remain at relatively favorable levels.
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74 III. Driving the implementation and application of intelligent risk control technologies The Bank actively embraced digital transformation, made full use of advanced technologies, including AI and large and small AI models, and integrated them into its risk control processes. This enabled risks to be detected early, understood thoroughly, measured accurately and kept under control. Using big data technology to obtain a comprehensive view of risks. The Bank developed multidimensional risk profiles and conducted risk assessments of customers. For inclusive finance customers, for example, the Bank established interconnected profiles based on information concerning actual controllers, supply chains, fund flows, trading activities, geographic links and device associations. This enabled the Bank to identify and guard against risks such as contagion among related parties, excessive financing and organized fraud. Using large model technology to measure risks accurately. The Bank anticipated future changes in risks. It drew on public sentiment data, investment research reports, account transaction records, financial reports, collateral information, business registration records and credit records to predict the deterioration trajectories of corporate customers, assess inflection points in business conditions and risks, and take forward-looking risk management measures. Using biometric technologies to intercept risks. Relying on facial recognition, voiceprints, fingerprints, micro-expressions and other biometric characteristics, the Bank determined in real time whether transactions were performed by the customers concerned. This helped prevent account opening under false identities, unauthorized transactions, money-laundering transfers and telecommunications fraud, and improved the efficiency of identifying false identities and combating fraud. Using AI agent technologies to enhance efficiency. The Bank analyzed a vast amount of information, summarized expert knowledge and developed intelligent risk management assistants. For example, the agents conducted in-depth analyses of customers ’ business models, financial positions and asset-related leads, and automatically generated due diligence plans, credit approval recommendations and asset disposal approaches, providing optimal strategic support for differentiated management on a customer-by-customer basis. Developing an enterprise-level intelligent risk management platform. Underpinned by data, technology and talent, the Bank established four centers, the View Center, Measurement Center, Monitoring and Alerting Center and Strategy-Making Center, and centralized the management of risk management elements while enabling shared services. The View Center established a panoramic view covering over 15.00 million corporate customers and over 780 million individual customers to enhance the Bank ’s capabilities to dynamically detect changes in market, business and other risks. The Measurement Center centralized risk model management and enabled the accurate measurement and identification of various risks, including customer default and fraud. The Monitoring and Alerting Center continuously expanded and enhanced more than 500 early- warning signals, automatically scanned for, captured and assessed risk information, and issued risk alerts in a timely manner. Supported by a framework of “rigid bottom-line controls, flexible controls based on professional expertise, and tailored controls by branches ”, the Strategy-Making Center supported intelligent risk management decisions across five major categories and 323 scenarios, including fund transactions across the Group and customer onboarding.
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75 Hot Topic 4: AI-Enabled Business Transformation Delivering Tangible Results at ICBC ICBC actively advanced the development of “AI-ICBC ”, continued to implement the “AI+” Action Plan, and actively explored the application of AI in finance. It focused on identifying high-value scenarios in areas including enhancing investment and trading efficiency, transforming customer service, improving marketing and customer acquisition, strengthening risk prevention and control, and improving work efficiency. As at the end of the first half of the year, more than 600 scenario- based applications had been implemented, with initial results becoming evident. I. Enhancing investment and trading efficiency Typical Scenario 1: In financial markets, the Bank introduced an innovative human-machine collaborative trading model and developed GlobalDealing, a global intelligent conversation-based trading system. The system embedded interactive dialogue throughout the entire process, covering customer onboarding, conversational navigation, precise quotations, trade execution and exposure management, thereby enabling end-to-end intelligent closed-loop processing. Processing efficiency across the entire process improved more than threefold, and the proportion of intelligent request- for-quote transactions exceeded 96%. Typical Scenario 2: In asset and liability management, the Bank built an “AI+ Intelligent Asset and Liability Management Hub ” and developed an intelligent decision-making model for asset and liability allocation and a forward-looking model for forecasting operating trends. By deeply integrating internal and external data, the hub forecast trends in fund movements with greater accuracy and supported efficient fund allocation while maintaining reasonably adequate liquidity. II. Transforming and upgrading customer service Typical Scenario 3: The Bank launched an upgraded version of “GINO (Gong Xiao Zhi) ”, its unified intelligent customer service. Across its online service channels, the Bank strictly upheld the bottom lines of security and compliance. Leveraging large AI model technology, it strengthened its capabilities for semantic understanding and intent recognition in customer interactions and explored a new interaction paradigm of “conversation as a service ”. The service covered nine major business areas and 50 key functions, including account management, wealth management and credit card services, further enhancing the convenience of financial services. Currently, the Bank is conducting small-scale pilot programs in a prudent and orderly manner and customer feedback is positive. Across its offline service channels, the Bank explored scenarios for applying a large model to customer-facing services at outlets, the outlet customer assistant. The Bank completed intelligent upgrades to 21 frequently used self-service banking services and processed more than 300 thousand transactions in pilot areas during the first half of the year. It helped customers “find services easily, obtain information quickly and complete transactions conveniently ”, thereby shortening processing times and improving the service experience.
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76 Across its remote service channels, the Bank deepened the application of AI and provided real-time and accurate responses through intelligent voice, intelligent text and graphic-text services. During the first half of the year, it handled a total of 133 million customer service interactions. III. Improving marketing and customer acquisition Typical Scenario 4: In personal banking, the Bank focused on the entire marketing process of “analysis, recommendation, outreach, engagement, management ” and launched “Gong Xiao Cai ”, a dedicated intelligent agent that eased the workloads of personal customer managers and enhanced their capabilities. It assisted personal customer managers in searching for data, conducting analyses and developing plans, thereby improving both their comprehensive service standards and professional capabilities. During the first half of the year, “Gong Xiao Cai ” provided support on more than 22.00 million occasions. It effectively improved the quality and efficiency of frontline marketing services and supported precise allocation and steady growth of customers ’ assets. Typical Scenario 5: In private banking, the Bank built an AI-native comprehensive financial services agent and integrated the Group ’s comprehensive financial service resources. It assessed needs across interconnected service scenarios involving the coordinated management of private banking customers ’ personal, corporate and family wealth, and identified their potential financial service needs. The turnaround time for generating integrated and personalized customer service solutions was reduced from five days to three hours. This effectively drove growth in private banking customers ’ AUM and contributed to significant increases in account openings and deposits by associated enterprises. IV. Strengthening risk prevention and control Typical Scenario 6: In credit approval, the Bank developed “ICBC eXaminer (Gong Xiao Shen) ”, a digital credit review and approval assistant. Leveraging large AI model capabilities, it performed core tasks including customer credit risk analysis, compliance assessment, financing plan design and report drafting, helping credit reviewers substantially improve the quality and efficiency of credit review and approval. During the first half of the year, it supported the review and approval of credit facilities totaling more than RMB1 trillion. Typical Scenario 7: In internal control and compliance, the Bank developed the “AI Compliance Review ” agent. It summarized expert experience in compliance reviews across the Bank, enabling users to obtain optimal review methods and generate compliance review recommendations with a single click. This marked an upgrade from “manual review ” to “AI-assisted review ”. During the first half of the year, the agent generated 360 thousand compliance review opinions, with an adoption rate of 98.6%, and helped compliance reviewers improve their risk identification capabilities by 130%.
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77 V. Improving work efficiency Typical Scenario 8: In the credit card business, the Bank developed a credit card review and approval assistant. At the card issuance review stage, the large model comprehensively analyzed customer data, intelligently identified key review points and generated customized questionnaires focusing on key risks. During the first half of the year, the assistant was used on more than 2.82 million occasions. At the card issuance approval stage, the large model automatically generated visualized panoramic customer views and intelligently produced approval recommendations and credit limits for reference, enabling approval personnel to make accurate credit decisions. This significantly shortened credit card approval times and improved approval quality. Typical Scenario 9: In operation management, the Bank deepened the integrated application of the multimodal capabilities of large models and connected the entire centralized operations workflow covering data entry, authorization, review and sample inspection. It established the capability to recognize data elements in every field of vouchers, resulting in per-transaction processing at 25 times the manual processing speed. During the first half of the year, manual data entry was replaced for 100 million transactions. Intelligent review efficiency for remote authorization increased fivefold, and the solution handled approximately half of the Bank ’s total business volume. Without any increase in headcount, the Bank completed quality inspections covering the entire business volume, with an accuracy rate exceeding 98%, significantly improving operational efficiency. The Bank ’s use of AI began to deliver results, driving continued cost reductions and efficiency gains, value creation, risk control upgrades, and improvements in customer experience. The effectiveness of its technology investment became increasingly evident.
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78 4. Details of Changes in Share Capital and Shareholding of Substantial Shareholders Changes in Ordinary Shares DETAILS OF CHANGES IN SHARE CAPITAL Unit: Share At 31 December 2025 Increase/ decrease during the reporting period At 30 June 2026 Number of shares Percentage (%) Number of shares Percentage (%) I. Shares subject to restrictions on sales – – – – – II. Shares not subject to restrictions on sales 356,406,257,089 100.00 – 356,406,257,089 100.00 1. RMB-denominated ordinary shares 269,612,212,539 75.65 – 269,612,212,539 75.65 2. Foreign shares listed overseas 86,794,044,550 24.35 – 86,794,044,550 24.35 III. Total number of shares 356,406,257,089 100.00 – 356,406,257,089 100.00 Notes: (1) The above data are based on the Equity Structure Chart issued by China Securities Depository and Clearing Corporation Limited. (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 the CSRC. (3) Due to rounding, percentages presented herein are for reference only. Details of Securities Issuance and Listing During the reporting period, the Bank did not issue any shares, did not have any employee shares, nor did it issue any convertible bonds. The Bank did not issue corporate bonds to be disclosed in accordance with Chapter II, Section 7 of the “No. 3 Standards on the Content and Format of Information Disclosure of Companies with Public Offerings { Content and Format of the Semi-Annual Report ” of the CSRC, nor did it have the above-mentioned corporate bonds existed on the approval date of this Results Announcement. 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 ”.
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79 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 information on other securities issued by the Bank and its subsidiaries, please refer to “Note 29. to the Financial Statements: Debt Securities Issued; and Note 32. to the Financial Statements: Other Equity Instruments ” for details. Number of Shareholders and Particulars of Shareholding As at the end of the reporting period, the Bank had a total number of 807,660 ordinary shareholders and no holders of preference shares with voting rights restored or holders of shares with special voting rights, including 98,617 holders of H shares and 709,043 holders of A shares. 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 during the reporting period Number of shares held at the end of reporting 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 MOF State-owned A Share – 110,984,806,678 31.14 None HKSCC Nominees Limited (5) Foreign legal person H Share 19,864,531 86,207,551,427 24.19 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 -243,651,659 1,500,902,770 0.42 None China Life Insurance Company Limited { Traditional { Ordinary insurance products { 005L { CT001 Hu Other entities A Share 338,695,197 1,498,342,062 0.42 None Central Huijin Asset Management Ltd. State-owned legal person A Share – 1,013,921,700 0.28 None Taiping Life Insurance Co., Ltd. State-owned legal person A Share -67,431,400 379,933,713 0.11 None Guofeng Xinghua (Beijing) Private Fund Management Co., Ltd. { Guofeng Xinghua Honghu Zhiyuan Phase III Private Securities Investment Fund No. 1 Other entities A Share – 289,539,799 0.08 None Notes: (1) The above data are based on the Bank ’s register of shareholders as at 30 June 2026. (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, as at 30 June 2026, the Bank is not aware of any connected relations or acting-in-concert relations among the aforementioned shareholders.
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80 (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 number of 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 30 June 2026, which included H shares of the Bank held by the National Council for Social Security Fund and Ping An Asset Management Co., Ltd. (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 6,728,403,633 H shares of the Bank and 19,060,048,819 A and H shares in aggregate, accounting for 5.35% of the Bank’s total ordinary shares. (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 30 June 2026. Changes of the Controlling Shareholders and De Facto Controller During the reporting period, the Bank ’s controlling shareholders and de facto controller remained unchanged. 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 As at 30 June 2026, 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: HOLDERS OF A SHARES Name of substantial shareholder Capacity Number of A shares held (share) Nature of interests Percentage of A shares (1) (%) Percentage of total ordinary shares (1) (%) Central Huijin Investment Ltd. Beneficial owner 124,004,660,940 Long position 45.99 34.79 Interest of controlled corporations 3,430,053,240 Long position 1.27 0.96 Total 127,434,714,180 47.27 35.76 MOF Beneficial owner 110,984,806,678 Long position 41.16 31.14 Note: (1) Due to rounding, percentages presented herein are for reference only.
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81 HOLDERS OF H SHARES Name of substantial shareholder Capacity Number of H shares held (share) Nature of interests Percentage of H shares (3) (%) Percentage of total ordinary shares (3) (%) Ping An Asset Management Co., Ltd. (1) Investment manager 16,510,803,000 Long position 19.02 4.63 National Council for Social Security Fund (2) Beneficial owner 6,938,013,180 Long position 7.99 1.95 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 30 June 2026 (the date of relevant event being 12 February 2025). 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) According to the information provided by the National Council for Social Security Fund to the Bank, the National Council for Social Security Fund held 6,728,403,633 H shares of the Bank as at the end of the reporting period, accounting for 7.75% of the Bank ’s H shares and 1.89% of the Bank ’s total ordinary shares. (3) Due to rounding, percentages presented herein are for reference only. Preference Shares Issuance and Listing of Preference Shares during the Reporting Period During the reporting period, the Bank did not issue any preference shares. Number of Preference Shareholders and Particulars of Shareholding As at the end of the reporting period, the Bank had 28 domestic preference shareholders of “ʈБ Ꮄ 1” and 38 domestic preference shareholders of “ʈБᎴ 2 ”.
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82 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 during the reporting period 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 44.44 – None China National Tobacco Corporation Other entities Domestic preference shares – 50,000,000 11.11 – None China Life Insurance Company Limited State-owned legal person Domestic preference shares – 35,000,000 7.78 – None Ping An Life Insurance Company of China, Ltd. Domestic non-state-owned legal person Domestic preference shares – 30,000,000 6.67 – None China Fund Management Co., Ltd. State-owned legal person Domestic preference shares – 17,855,000 3.97 – None Everbright Securities Asset Management Co., Ltd. State-owned legal person Domestic preference shares 500,000 13,085,000 2.91 – None Shanghai Guotai Haitong Securities Asset Management Co., Ltd. State-owned legal person Domestic preference shares – 11,200,000 2.49 – None China National Tobacco Corporation Shandong Branch Other entities Domestic preference shares – 10,000,000 2.22 – None China National Tobacco Corporation Heilongjiang Branch Other entities Domestic preference shares – 10,000,000 2.22 – None Ping An Property & Casualty Insurance Company of China, Ltd. Domestic non-state-owned legal person Domestic preference shares – 10,000,000 2.22 – None Notes: (1) The above data are based on the Bank ’s register of domestic preference shareholders of “ʈБᎴ 1 ” as at 30 June 2026. (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. 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 the 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 “ʈ БᎴ 1 ”.
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83 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 during the reporting period 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 17.14 – None China Mobile Communications Group Co., Ltd. State-owned legal person Domestic preference shares – 100,000,000 14.29 – None Bohai International Trust Co., Ltd. State-owned legal person Domestic preference shares – 82,251,000 11.75 – None China Credit Trust Co., Ltd. State-owned legal person Domestic preference shares 9,000,000 79,719,000 11.39 – None Everbright Securities Asset Management Co., Ltd. State-owned legal person Domestic preference shares -10,650,000 60,735,000 8.68 – None China National Tobacco Corporation Other entities Domestic preference shares – 50,000,000 7.14 – None Shanghai Tobacco Group Co., Ltd. Other entities Domestic preference shares – 30,000,000 4.29 – None China Fund Management Co., Ltd. State-owned legal person Domestic preference shares -2,550,000 21,565,000 3.08 – None CITIC Securities Company Limited State-owned legal person Domestic preference shares – 16,100,000 2.30 – None SDIC Taikang Trust Co., Ltd. State-owned legal person Domestic preference shares – 15,400,000 2.20 – None Notes: (1) The above data are based on the Bank ’s register of domestic preference shareholders of “ʈБᎴ 2 ” as at 30 June 2026. (2) China Life Insurance Company Limited { Traditional { Ordinary insurance products { 005L { CT001 Hu is managed by China Life Insurance Company Limited; 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. 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 the 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 “ʈ БᎴ 2 ”. Dividend Distribution of Preference Shares During the reporting period, the Bank did not distribute dividends on preference share. The Bank reviewed and approved the distribution of dividends on “ʈБᎴ 2 ” at the meeting of the Board of Directors on 28 August 2026, planning to distribute the dividends on “ʈБᎴ 2 ” on 24 September 2026 at the dividend rate of 3.02% (pre-tax, and the tax payable on dividends received by holders of domestic preference shares should be borne by them in compliance with relevant laws and regulations) and the total dividends distributed will be RMB2,114 million (pre-tax).
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84 Redemption or Conversion of Preference Shares During the reporting period, the Bank did not redeem or 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. Accounting Policies Adopted for Preference Shares and Rationale 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 Instruments promulgated by the MOF as well as the International Financial Reporting Standard 9 { Financial 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. 5. Other Information Overview of Corporate Governance During the reporting period, the Bank remained steadfast in its goal of building a world-class modern financial institution with Chinese characteristics, continuously deepened the organic integration between the Party ’s leadership and corporate governance, and improved the modern financial enterprise system with Chinese characteristics. It continuously built a corporate governance mechanism with “clear division of responsibilities, each performing their own duties, mutual coordination, and effective checks and balances ”, and optimized the corporate governance operation mechanism to ensure “scientific decision-making process, effective supervision and steady operation ”. Moreover, the Bank coordinated the efforts to improve the corporate governance system, framework and mechanism, and revised and formulated the Rules on the Recommendation and Nomination of Candidates for Directors of ICBC (Version 2026), thereby effectively enhancing the governance efficiency and high-quality development capability. Corporate Governance Code As approved by the meeting of the Board of Directors held on 27 March 2026, Ms. Zhong Mantao was appointed as a member of the Nomination Committee of the Board of Directors of the Bank, so that the Bank has satisfied the requirements of the Corporate Governance Code (Article B.3.5, Appendix C1 to the Hong Kong Listing Rules).
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85 During the reporting period, the Bank complied with the principles and code provisions stipulated in the Corporate Governance Code (Appendix C1 to the Hong Kong Listing Rules), and conformed to the vast majority of its recommended best practices. Profit and Dividend Distribution The formulation and implementation of the Bank ’s cash dividend policy accord with the provisions stipulated in the Articles of Association and the requirements provided in the resolutions of the Shareholders ’ 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 on it. Minority shareholders can fully express their opinions and appeals, to completely safeguard their legitimate rights. As approved at the Second Extraordinary Shareholders ’ Meeting of 2025 held on 28 November 2025, the Bank distributed 2025 interim cash dividends for ordinary shares of about RMB50,396 million, or RMB1.414 per ten shares (pre-tax), to the ordinary shareholders whose names appeared on the share register after the close of market on 12 December 2025. As approved at the First Extraordinary Shareholders ’ Meeting of 2026 held on 23 April 2026, the Bank distributed 2025 year-end cash dividends for ordinary shares of about RMB60,197 million, or RMB1.689 per ten shares (pre-tax), to the ordinary shareholders whose names appeared on the share register after the close of market on 12 May 2026. The Bank distributed cash dividend of RMB3.103 per ten shares (pre-tax) for the whole year of 2025, totaling about RMB110,593 million. The Board of Directors of the Bank proposed distributing 2026 interim cash dividends for ordinary shares of RMB1.511 per ten shares (pre-tax) of 356,406,257,089 ordinary shares, totaling about RMB53,853 million. The Bank ’s 2026 interim cash dividends for ordinary shares are denominated and declared in RMB and paid in RMB or HKD equivalent, and the holders of H shares are provided with the option of dividend distribution in RMB. The holders of H shares have the right to choose to receive the dividends of H shares in RMB or HKD in whole (HKSCC Nominees Limited may choose to receive the dividends in whole or in part). The HKD exchange rate is the average of the reference exchange rates for RMB to HKD published daily at 11:00 a.m. by the China Foreign Exchange Trade System for the five business days prior to (but excluding) the dispatch date of the dividend currency election form by the Bank to holders of H shares. The 2026 interim profit distribution plan will be submitted to the Shareholders ’ Meeting for deliberation in the second half of 2026. The Bank will pay cash dividends within two months after the profit distribution plan is considered and approved at the Shareholders ’ Meeting. For details such as the record date for the 2026 interim cash dividends, the period during which registration of transfers of H shares will be suspended, the exact payment date, as well as taxation and tax relief matters, please refer to the relevant announcements to be published by the Bank in due course.
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86 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 ”. 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. Implementation of the Initiative for Special Action “Quality and Efficiency Improvement, and High Return ” In accordance with the relevant requirements of the CSRC ’s Regulatory Guidelines for Listed Companies No. 10 { Market Value Management and the SSE ’s initiative for special action “Quality and Efficiency Improvement, and High Return ” to Shanghai-listed companies, as well as the Market Value Management Measures and the Plan for Valuation Enhancement, Quality and Efficiency Improvement, and High Return formulated by the Board of Directors, during the reporting period, the Bank thoroughly implemented the decisions and plans of the CPC Central Committee and the State Council, adhered to the principle of seeking progress while maintaining stability and promoting stability through progress, and advanced the five transformations. It focused on its major responsibilities and core businesses, upheld integrity while fostering innovation, strengthened risk and compliance management, and drove high-quality development. (For details on the analysis of the Bank ’s business operation, please refer to the section headed “Discussion and Analysis ”.) The Bank actively fulfilled its responsibilities as a major bank, committed to creating value for shareholders and serving investors, while maintaining a reasonable dividend payout ratio. (For details on the Bank ’s dividend distribution, please refer to the section headed “Other Information { Profit and Dividend Distribution ”.) Centering on investors, the Bank proactively deepened communication through regular results briefings and diversified investor relations activities, to foster greater understanding and recognition of the Bank among investors. The Bank continued to uphold the principles of truthfulness, accuracy, completeness, comparability, timeliness and fairness, and strictly complied with laws, regulations, and regulatory requirements on information disclosure to constantly strengthen transparency as a listed company and continuously improve investor protection. Material Assets Acquisition, Sale and Merger During the reporting period, the Bank had no material assets acquisition, sale or merger.
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87 Purchase, Sale and Redemption of Shares During the reporting period, neither the Bank nor any of its subsidiaries purchased, sold or redeemed any listed shares (including sale of treasury shares) of the Bank. As at 30 June 2026, the Bank and its subsidiaries did not hold any treasury shares. Securities Transactions of Directors The Bank has adopted a set of codes of conduct concerning the securities transactions by directors which are no less stringent than the standards set out in the Model Code for Securities Transactions by Directors of Listed Issuers (Appendix C3 to the Hong Kong Listing Rules). After making enquiries to all Directors of the Bank, each Director confirmed that he/she has complied with the provisions of the aforesaid codes of conduct during the reporting period. 6. Review Report and Interim Financial Report (See the Appendices) 7. Issue of Results Announcement and Interim Report This Announcement will be released on the “HKEXnews ” website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the website of the Bank (www.icbc-ltd.com) simultaneously. The 2026 Interim Report prepared in accordance with IFRS Accounting Standards will be released on the “HKEXnews ” website of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk) and the website of the Bank (www.icbc-ltd.com) and will be dispatched to the shareholders of H shares of the Bank. The 2026 Interim Report and its abstract prepared in accordance with PRC GAAP will be released simultaneously on the websites of Shanghai Stock Exchange (www.sse.com.cn) and the Bank (www.icbc-ltd.com). This Results Announcement has been prepared in both Chinese and English languages. 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 28 August 2026 As at the date of this announcement, the Board of Directors comprises Mr. LIAO Lin, Mr. LIU Jun, Mr. DUAN Hongtao and Mr. WANG Jingwu as executive directors, Mr. DONG Yang, Ms. ZHONG Mantao and Ms. LIU Fang as non-executive directors, Mr. Norman CHAN Tak Lam, Mr. Herbert WALTER, Mr. Murray HORN, Mr. CHEN Guanting, Mr. LI Weiping and Mr. LEE Kam Hung Lawrence as independent non-executive directors.
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Appendix Review Report and Interim Financial Report
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Industrial and Commercial Bank of China Limited CONTENTS PAGE(S) REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION 1 CONSOLIDATED STATEMENT OF PROFIT OR LOSS 2 CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 3 CONSOLIDATED STATEMENT OF FINANCIAL POSITION 4 - 5 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 6 - 8 CONSOLIDATED STATEMENT OF CASH FLOWS 9 - 10 NOTES TO THE FINANCIAL STATEMENTS 11 - 136 UNAUDITED SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS 137 - 139
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1 REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION To the Board of Directors of Industrial and Commercial Bank of China Limited: (Incorporated in the People's Republic of China with limited liability) Introduction We have reviewed the condensed interim financial information of Industrial and Commercial Bank of China Limited (the "Bank") and its subsidiaries (collectively the "Group") set out on pages 2 to 136, which comprise the consolidated statement of financial position as of 30 June 2026 and the consolidated statement of profit or loss, consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the six-month period then ended, and certain explanatory notes. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on interim financial information to be in compliance with the relevant provisions thereof and International A ccounting Standard 34, Interim Financial Reporting ("IAS 34"), issued by the International Accounting Standards Board. The directors of the Bank are responsible for the preparation and presentation of these interim financial information in accordance with IAS 34. Our responsibility is to express a conclusion on these interim financial information based on our review. Report is made solely to you, as a body, in accordance with our agreed terms of engagement, and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report. Scope of review We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the International Auditing and Assurance Standards Board. A review of these interim financial information mainly consists of making inquiries, persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. Conclusion Based on our review, nothing has come to our attention that causes us to believe that the interim financial information is not prepared, in all material respects, in accordance with IAS 34. Ernst & Young Certified Public Accountants Hong Kong 28 August 2026
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2 INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE SIX MONTHS ENDED 30 JUNE 2026 (In RMB millions, unless otherwise stated) Six months ended 30 June Notes 2026 2025 (unaudited) (unaudited) Interest income 660,777 673,603 Interest expense (319,540) (360,027) NET INTEREST INCOME 3 341,237 313,576 Fee and commission income 76,591 74,162 Fee and commission expense (7,356) (7,142) NET FEE AND COMMISSION INCOME 4 69,235 67,020 Net trading income 5 10,012 7,613 Net gains on financial investments 6 26,449 18,294 Other operating (expense)/income, net 7 (770) 2,579 OPERATING INCOME 446,163 409,082 Operating expenses 8 (111,379) (108,570) Credit impairment losses 9 (127,018) (104,007) Impairment losses on other assets (738) (522) OPERATING PROFIT 207,028 195,983 Share of results of associates and joint ventures 2,982 3,025 PROFIT BEFORE TAXATION 210,010 199,008 Income tax expense 10 (33,535) (30,205) PROFIT FOR THE PERIOD 176,475 168,803 Profit for the period attributable to: Equity holders of the parent company 173,682 168,103 Non-controlling interests 2,793 700 PROFIT FOR THE PERIOD 176,475 168,803 EARNINGS PER SHARE 12 - Basic (RMB yuan) 0.47 0.46 - Diluted (RMB yuan) 0.47 0.46 The accompanying notes form part of these financial statements.
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3 INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2026 (In RMB millions, unless otherwise stated) Six months ended 30 June Note 2026 2025 (unaudited) (unaudited) Profit for the period 176,475 168,803 Other comprehensive income (after tax, net): 34 (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 (5,394) 1,649 (ii) Other comprehensive income recognised under the equity method (19) (18) (iii) Others - 1 (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 13,297 1,029 (ii) Credit losses of debt instruments measured at fair value through other comprehensive income (968) (119) (iii) Cash flow hedging reserve (1,215) 1,748 (iv) Other comprehensive income recognised under the equity method (220) (33) (v) Foreign currency translation reserve (11,893) (1,755) (vi) Others (1,224) (4,210) Subtotal of other comprehensive income for the period (7,636) (1,708) Total comprehensive income for the period 168,839 167,095 Total comprehensive income for the period attributable to: Equity holders of the parent company 167,419 167,455 Non-controlling interests 1,420 (360) 168,839 167,095 The accompanying notes form part of these financial statements.
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4 INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2026 (In RMB millions, unless otherwise stated) Notes 30 June 2026 31 December 2025 (unaudited) (audited) ASSETS Cash and balances with central banks 13 3,517,752 3,674,558 Due from banks and other financial institutions 14 1,101,502 1,264,019 Derivative financial assets 15 140,823 130,414 Reverse repurchase agreements 16 1,029,778 530,737 Loans and advances to customers 17 31,162,520 29,712,359 Financial investments 18 18,632,768 16,907,415 Financial investments measured at fair value through profit or loss 1,019,652 943,953 Financial investments measured at fair value through other comprehensive income 4,156,964 3,823,279 Financial investments measured at amortised cost 13,456,152 12,140,183 Investments in associates and joint ventures 19 78,638 78,313 Property and equipment 20 283,854 293,836 Deferred tax assets 21 112,798 104,289 Other assets 22 1,010,160 781,833 TOTAL ASSETS 57,070,593 53,477,773 The accompanying notes form part of these financial statements.
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5 INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 30 JUNE 2026 (In RMB millions, unless otherwise stated) Notes 30 June 2026 31 December 2025 (unaudited) (audited) LIABILITIES Due to central banks 175,426 176,793 Due to banks and other financial institutions 24 5,858,397 5,103,247 Financial liabilities measured at fair value through profit or loss 25 249,914 150,196 Derivative financial liabilities 15 103,591 134,082 Repurchase agreements 26 3,037,969 2,536,376 Certificates of deposit 27 520,645 502,593 Due to customers 28 39,173,265 37,311,778 Income tax payable 31,308 23,374 Debt securities issued 29 2,551,700 2,216,807 Deferred tax liabilities 21 5,490 6,551 Other liabilities 30 1,007,044 1,043,952 TOTAL LIABILITIES 52,714,749 49,205,749 EQUITY Equity attributable to equity holders of the parent company Share capital 31 356,407 356,407 Other equity instruments 32 364,666 384,657 Preference shares 114,927 114,927 Perpetual bonds 249,739 269,730 Reserves 33 1,316,995 1,323,043 Retained profits 2,288,926 2,180,152 4,326,994 4,244,259 Non-controlling interests 28,850 27,765 TOTAL EQUITY 4,355,844 4,272,024 TOTAL EQUITY AND LIABILITIES 57,070,593 53,477,773 Liao Lin Liu Jun Xu Zhisheng Chairman Vice Chairman and President Person in charge of Finance and Accounting Department The accompanying notes form part of these financial statements.
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6 INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2026 (In RMB millions, unless otherwise stated) Attributable to equity holders of the parent company Reserves Share capital Other equity instruments Capital reserve Surplus reserve General reserve Investment revaluation reserve Foreign currency translation reserve Cash flow hedging reserve Other reserves Subtotal Retained profits Total Non- controlling interests Total equity Balance as at 1 January 2026 356,407 384,657 143,977 501,177 660,896 51,245 (14,295) (3,442) (16,515) 1,323,043 2,180,152 4,244,259 27,765 4,272,024 Profit for the period - - - - - - - - - - 173,682 173,682 2,793 176,475 Other comprehensive income - - - - - 7,096 (11,536) (1,186) (637) (6,263) - (6,263) (1,373) (7,636) Total comprehensive income - - - - - 7,096 (11,536) (1,186) (637) (6,263) 173,682 167,419 1,420 168,839 Dividends - ordinary shares (i)(Note 11) - - - - - - - - - - (60,197) (60,197) - (60,197) Distributions to other equity instrument holders (Note 11) - - - - - - - - - - (4,414) (4,414) (197) (4,611) Appropriation to surplus reserve (ii) - - - 150 - - - - - 150 (150) - - - Appropriation to general reserve (iii) - - - - 325 - - - - 325 (325) - - - Capital injection by other equity instrument holders - 50,000 (2) - - - - - - (2) - 49,998 - 49,998 Capital reduction by other equity instrument holders - (69,991) (11) - - - - - - (11) - (70,002) - (70,002) Dividends to non-controlling shareholders - - - - - - - - - - - - (138) (138) Other comprehensive income transferred to retained earnings - - - - - (170) - - (8) (178) 178 - - - Others - - (69) - - - - - - (69) - (69) - (69) Balance as at 30 June 2026 (unaudited) 356,407 364,666 143,895 501,327 661,221 58,171 (25,831) (4,628) (17,160) 1,316,995 2,288,926 4,326,994 28,850 4,355,844 (i) Are year-end dividends on ordinary shares of RMB60,197 million for 2025. (ii) Is the appropriation to surplus reserve made by subsidiaries in the amounts of RMB 150 million. (iii) Is the appropriation to general reserve made by overseas branches and subsidiaries in the amounts of RMB 14 million and RMB311 million, respectively. The accompanying notes form part of these financial statements.
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7 INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED) FOR THE SIX MONTHS ENDED 30 JUNE 2026 (In RMB millions, unless otherwise stated) Attributable to equity holders of the parent company Reserves Share capital Other equity instruments Capital reserve Surplus reserve General reserve Investment revaluation reserve Foreign currency translation reserve Cash flow hedging reserve Other reserves Subtotal Retained profits Total Non- controlling interests Total equity Balance as at 1 January 2025 356,407 324,344 148,234 464,365 614,816 76,965 (6,092) (4,181) (19,103) 1,275,004 2,014,086 3,969,841 17,425 3,987,266 Profit for the period - - - - - - - - - - 168,103 168,103 700 168,803 Other comprehensive income - - - - - 1,699 (1,548) 1,685 (2,484) (648) - (648) (1,060) (1,708) Total comprehensive income - - - - - 1,699 (1,548) 1,685 (2,484) (648) 168,103 167,455 (360) 167,095 Dividends - ordinary shares (i)(Note 11) - - - - - - - - - - (58,664) (58,664) - (58,664) Distributions to other equity instrument holders (Note 11) - - - - - - - - - - (3,669) (3,669) (27) (3,696) Appropriation to surplus reserve (ii) - - - 411 - - - - - 411 (411) - - - Appropriation to general reserve (iii) - - - - 322 - - - - 322 (322) - - - Capital injection by non-controlling shareholders - 40,000 (1) - - - - - - (1) - 39,999 7,000 46,999 Dividends to non-controlling shareholders - - - - - - - - - - - - (219) (219) Other comprehensive income transferred to retained earnings - - - - - (184) - - - (184) 184 - - - Others - - (270) - - - - - - (270) - (270) 365 95 Balance as at 30 June 2025 (unaudited) 356,407 364,344 147,963 464,776 615,138 78,480 (7,640) (2,496) (21,587) 1,274,634 2,119,307 4,114,692 24,184 4,138,876 (i) Are year-end dividends on ordinary shares of RMB58,664 million for 2024. (ii) Is the appropriation to surplus reserve made by overseas branches and subsidiaries in the amounts of RMB144 million and RMB26 7 million, respectively. (iii) Is the appropriation to general reserve made by overseas branches and subsidiaries in the amounts of RMB 12 million and RMB310 million, respectively. The accompanying notes form part of these financial statements.
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8 INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED) FOR THE SIX MONTHS ENDED 30 JUNE 2026 (In RMB millions, unless otherwise stated) Attributable to equity holders of the parent company Reserves Share capital Other equity instruments Capital reserve Surplus reserve General reserve Investment revaluation reserve Foreign currency translation reserve Cash flow hedging reserve Other reserves Subtotal Retained profits Total Non- controlling interests Total equity Balance as at 1 January 2025 356,407 324,344 148,234 464,365 614,816 76,965 (6,092) (4,181) (19,103) 1,275,004 2,014,086 3,969,841 17,425 3,987,266 Profit for the year - - - - - - - - - - 368,562 368,562 2,204 370,766 Other comprehensive income - - - - - (24,500) (8,203) 739 2,588 (29,376) - (29,376) (1,012) (30,388) Total comprehensive income - - - - - (24,500) (8,203) 739 2,588 (29,376) 368,562 339,186 1,192 340,378 Dividends - ordinary shares(i) - - - - - - - - - - (109,060) (109,060) - (109,060) Distributions to other equity instrument holders - - - - - - - - - - (11,764) (11,764) (54) (11,818) Appropriation to surplus reserve (ii) - - - 36,812 - - - - - 36,812 (36,812) - - - Appropriation to general reserve (iii) - - - - 46,080 - - - - 46,080 (46,080) - - - Capital injection by other equity instrument holders - 80,000 (2) - - - - - - (2) - 79,998 7,000 86,998 Capital reduction by other equity instrument holders - (19,687) (1,136) - - - - - - (1,136) - (20,823) - (20,823) Dividends to non-controlling shareholders - - - - - - - - - - - - (1,017) (1,017) Other comprehensive income transferred to retained earnings - - - - - (1,220) - - - (1,220) 1,220 - - - Others - - (3,119) - - - - - - (3,119) - (3,119) 3,219 100 Balance as at 31 December 2025 (audited) 356,407 384,657 143,977 501,177 660,896 51,245 (14,295) (3,442) (16,515) 1,323,043 2,180,152 4,244,259 27,765 4,272,024 (i) Are interim dividends on ordinary shares of RMB50,396 million for 2025 and year-end dividends on ordinary shares of RMB58,664 million for 2024. (ii) Includes the appropriation to surplus reserve made by overseas branches and subsidiaries in the amounts of RMB 144 million and RMB1,293 million, respectively. (iii) Includes the appropriation to general reserve made by subsidiaries in the amounts of RMB1,494 million. The accompanying notes form part of these financial statements.
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9 INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2026 (In RMB millions, unless otherwise stated) Six months ended 30 June Notes 2026 2025 (unaudited) (unaudited) CASH FLOWS FROM OPERATING ACTIVITIES Profit before taxation 210,010 199,008 Adjustments for: Share of results of associates and joint ventures (2,982) (3,025) Depreciation 14,596 14,024 Amortisation 8 2,648 2,568 Credit impairment losses 9 127,018 104,007 Impairment losses on other assets 738 522 Unrealised losses/(gains) on foreign exchange 17,387 (22,274) Interest expense on debt securities issued 24,153 29,912 Accreted interest on impaired loans (833) (789) Net gains on financial investments (26,063) (22,801) Interest income on financial investments (202,221) (190,567) Net (gains)/losses on changes in fair value (6,208) 988 Net gains on stocktake and disposal of property and equipment and other assets (481) (548) Dividend income 6 (1,733) (1,937) 156,029 109,088 Net (increase) /decrease in operating assets: Due from central banks (142,183) 138,650 Due from banks and other financial institutions 82,486 (86,972) Financial assets measured at fair value through profit or loss (62,651) (50,333) Reverse repurchase agreements (12,640) (232,471) Loans and advances to customers (1,603,190) (1,890,430) Other assets (321,645) (84,622) (2,059,823) (2,206,178) Net increase/(decrease) in operating liabilities: Financial liabilities measured at fair value through profit or loss 99,267 32,445 Due to central banks (1,380) (8,364) Due to banks and other financial institutions 797,353 597,431 Repurchase agreements 502,188 214,678 Certificates of deposit 28,519 4,076 Due to customers 1,995,807 2,162,206 Other liabilities (111,485) (76,095) 3,310,269 2,926,377 Net cash flows from operating activities before taxation 1,406,475 829,287 Income tax paid (37,462) (42,970) Net cash flows from operating activities 1,369,013 786,317 The accompanying notes form part of these financial statements.
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10 INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE SIX MONTHS ENDED 30 JUNE 2026 (In RMB millions, unless otherwise stated) Six months ended 30 June Note 2026 2025 (unaudited) (unaudited) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of property and equipment and other assets (13,569) (13,190) Proceeds from disposal of property and equipment and other assets 7,238 5,456 Purchases of financial investments (4,471,109) (4,222,242) Proceeds from sale and redemption of financial investments 2,803,684 2,843,165 Investments in associates and joint ventures (14) (2,172) Proceeds from disposal of associates and joint ventures - 176 Investment returns received 219,403 211,014 Cash receipts from other investing activities - 121 Net cash flows from investing activities (1,454,367) (1,177,672) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of other equity instruments 50,000 47,000 Proceeds from issuance of debt securities 1,390,182 1,762,165 Interest paid on debt securities (24,218) (27,113) Repayments of debt securities (1,035,783) (1,187,909) Dividends paid on ordinary shares (88,192) (51,109) Cash payments to redeem other equity instruments (70,000) - Dividends or interest paid to other equity instrument holders (4,611) (3,696) Dividends paid to non-controlling shareholders (138) (99) Cash payments for other financing activities (3,250) (2,911) Net cash flows from financing activities 213,990 536,328 NET INCREASE IN CASH AND CASH EQUIVALENTS 128,636 144,973 Cash and cash equivalents at beginning of the period 1,769,010 2,290,404 Effect of exchange rate changes on cash and cash equivalents (23,351) (3,467) CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 35 1,874,295 2,431,910 NET CASH FLOWS FROM OPERATING ACTIVITIES INCLUDE: Interest received 476,013 507,712 Interest paid (388,498) (396,230) The accompanying notes form part of these financial statements.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (In RMB millions, unless otherwise stated) 11 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 “PBC”) 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 China Banking Regulatory Commission (In 2023, the regulator was renamed the National Financial Regulatory Administration, hereinafter referre d to as the “NFRA”) of the PRC. The Bank obtained its business license with unified social credit code 91100000100003962T by the State Administration for Industry and Commerce. The legal representative is Liao Lin 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 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 financial services, personal financial services, treasury operations, investment banking, asset management, trust, financial leasing, ins urance 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 AND MATERIAL ACCOUNTING POLICY INFORMATION (1) Basis of preparation The interim financial information has been prepared in accordance with International Accounting Standard ("IAS") 34, Interim Financial Reporting as well as the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securiti es on The Stock Exchange of Hong Kong Limited. It was approved by the Board of Directors on 28 August 2026.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 12 2. BASIS OF PREPARATION AND MATERIAL ACCOUNTING POLICY INFORMATION (CONTINUED) (1) Basis of preparation (continued) The interim financial information and notes thereon do not include all of the information required for a full set of financial statements prepared in accordance with IFRS Accounting Standards, and should be read in conjunction with the Group's last annual financial statements for the year ended 31 December 2025. The interim financial information has been reviewed by Ernst & Young in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity " issued by the International Auditing and Assurance Standards Board. (2) Application of amendments to IFRS Accounting Standards In the current interim period, the Group has applied the following amendments to IFRS Accounting Standards issued by the IASB which are mandatorily effective for the annual periods beginning on or after 1 January 202 6 for the preparation of the interim financial information: －Amendments to IFRS 9 and IFRS 7: Classification and Measurement of Financial Instruments －Amendments to IFRS 9 and IFRS 7: Contracts Referencing Nature-dependent Electricity The adoption of the above -mentioned amendments to IFRS Accounting Standards has had no material impact on the financial position and financial performance of the Group. (3) Material accounting policy information Other than the application of the amendments to IFRS Accounting Standards mentioned above, the accounting policies and methods of computation used in the interim financial information are the same as those presented in the Group's annual financial statements for the year ended 31 December 2025. The interim financial information has been prepared under the historical cost convention, except for certain financial instruments and certain non-financial assets measured at fair value.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 13 2. BASIS OF PREPARATION (CONTINUED) (4) Accounting judgements and estimates The preparation of the interim financial information requires management to make judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. The significant judgements made by management in applying the Group's accounting policies and estimation uncertainty were the same as those applied in the preparation of the financial statements for the year ended 31 December 2025. 3. NET INTEREST INCOME Six months ended 30 June 2026 2025 Interest income on: Loans and advances to customers 411,856 426,672 Corporate loans and advances 274,723 277,754 Personal loans 126,652 139,207 Discounted bills 10,481 9,711 Financial investments 202,221 190,567 Due from central banks 25,073 25,685 Due from banks and other financial institutions (i) 21,627 30,679 660,777 673,603 Interest expense on: Due to customers (208,994) (247,503) Due to banks and other financial institutions (ii) (78,751) (74,092) Debt securities issued and certificates of deposit (31,795) (38,432) (319,540) (360,027) Net interest income 341,237 313,576 (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.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 14 4. NET FEE AND COMMISSION INCOME Six months ended 30 June 2026 2025 Fee and commission income on: Settlement, clearing business and cash management 23,421 23,216 Investment banking business 14,468 14,775 Personal wealth management and private banking services 11,457 9,990 Corporate wealth management services 8,909 7,212 Bank card business 7,782 8,823 Asset custody business 4,597 4,274 Guarantee and commitment business 1,862 2,336 Trust and agency services 1,376 1,463 Others 2,719 2,073 76,591 74,162 Fee and commission expense (7,356) (7,142) Net fee and commission income 69,235 67,020 Included in personal wealth management and private banking services, corporate wealth management services, asset custody business , trust and agency services and so on was an amount of RMB9,806 million with respect to trust and other fiduciary activities for the six months ended 30 June 2026 (six months ended 30 June 2025: RMB9,034 million). 5. NET TRADING INCOME Six months ended 30 June 2026 2025 Debt securities 6,576 4,638 Derivatives and others 1,354 1,484 Equity investments 2,082 1,491 10,012 7,613 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.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 15 6. NET GAINS ON FINANCIAL INVESTMENTS Six months ended 30 June 2026 2025 Net gains on financial instruments measured at FVTPL, including: 9,807 3,610 Net losses on financial instruments designated as at FVTPL (3,334) (1,819) Net gains on disposal of financial instruments measured at FVTOCI 3,834 2,713 Dividend income from equity investments designated as at FVTOCI, including: 1,733 1,937 Derecognised during the period 80 156 Held at the end of current period 1,653 1,781 Net gains on disposal of financial instruments measured at amortised cost 10,808 10,025 Others 267 9 26,449 18,294 7. OTHER OPERATING (EXPENSE)/INCOME, NET Six months ended 30 June 2026 2025 Net operating lease business income 5,399 5,225 Net insurance business expense (4,580) (2,732) Net gains on disposal of property and equipment, repossessed assets and other assets 488 581 Net losses from foreign exchange and foreign exchange products (2,021) (498) Others (56) 3 (770) 2,579
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 16 8. OPERATING EXPENSES Six months ended 30 June 2026 2025 Staff costs: Salaries and bonuses 43,940 42,032 Staff benefits 12,667 12,321 Post-employment benefits – defined contribution plans (i) 10,000 9,810 66,607 64,163 Property and equipment expenses: Depreciation charge for property and equipment 8,060 7,373 Depreciation charge for right-of-use assets and other leasing expense 3,243 3,524 Repairs and maintenance charges 1,326 1,328 Utility expenses 857 931 13,486 13,156 Amortisation 2,648 2,568 Other administrative expenses 10,226 10,860 Taxes and surcharges 5,620 5,199 Others 12,792 12,624 111,379 108,570 (i) The defined contribution plans mainly include pension insurance, unemployment insurance and the annuity plan. (ii) For the six months ended 30 June 2026, the Group incurred RMB 2,446 million ( six months ended 30 June 2025: RMB2,458 million) of expensed research and development expenditures and RMB909 million (six months ended 30 June 2025: RMB907 million) of capitalized research and development expenditures.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 17 9. CREDIT IMPAIRMENT LOSSES Six months ended 30 June 2026 2025 Loans and advances to customers (Note 17) 123,016 102,215 Financial investments Financial investments measured at amortised cost 3,653 (112) Financial assets measured at FVTOCI (711) (1) Credit commitments 991 989 Others 69 916 127,018 104,007 10. INCOME TAX EXPENSE (a) Income tax expense Six months ended 30 June 2026 2025 Current income tax expense Chinese mainland 41,692 31,020 Hong Kong SAR and Macao SAR 868 936 Other overseas jurisdictions 2,836 2,750 45,396 34,706 Deferred income tax expense (11,861) (4,501) 33,535 30,205 In December 2021, the Organisation for Economic Co -operation and Development published Tax Challenges Arising from the Digitalisation of the Economy – Global Anti-Base Erosion Model Rules (“Pillar Two Model Rules”). According to the rules of Pillar Two, lo w-tax jurisdictions with effective tax rate below 15% may have a Top -up Tax impact. Some jurisdictions where the Group’s overseas entities are located, had implemented Pillar Two legislation during the reporting period. The Group has assessed the impact of Top-up Tax under Pillar Two. The legislation in the aforementioned jurisdictions has no significant impact on the Group's financial position and operating results as at 30 June 2026.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 18 10. INCOME TAX EXPENSE (CONTINUED) (b) Reconciliation between income tax and accounting profit 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: Six months ended 30 June 2026 2025 Profit before taxation 210,010 199,008 Tax at the PRC statutory income tax rate 52,503 49,752 Effects of different applicable rates of tax prevailing in other countries/regions (371) (310) Effects of non-deductible expenses (i) 22,991 18,635 Effects of non-taxable income (ii) (40,306) (36,705) Effects of profits attributable to associates and joint ventures (208) (281) Effects of other (1,074) (886) Income tax expense 33,535 30,205 (i) The non-deductible expenses mainly represent non -deductible impairment allowance and write-offs. (ii) The non -taxable income mainly represents interest income arising from the PRC government bonds and municipal debts.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 19 11. DIVIDENDS Six months ended 30 June 2026 2025 Dividends on ordinary shares declared and paid or proposed: Year-end dividends on ordinary shares for 2025:RMB0.1689 per share (2024:RMB0.1646 per share) 60,197 58,664 Dividends or interests declared and paid to other equity instrument holders of the parent company: Interests on perpetual bonds distributed 4,414 3,669 Dividends on ordinary shares proposed for approval (not recognised as at 30 June): Interim dividends on ordinary shares for 2026: RMB0.1511 per share (2025:RMB0.1414 per share) 53,853 50,396 12. EARNINGS PER SHARE Six months ended 30 June 2026 2025 Earnings: Profit for the period attributable to equity holders of the parent company 173,682 168,103 Less: Profit for the period attributable to other equity instrument holders of the parent company (4,414) (3,669) Profit for the period attributable to ordinary shareholders of the parent company 169,268 164,434 Shares: Weighted average number of ordinary shares in issue (in million shares) 356,407 356,407 Basic earnings per share (RMB yuan) 0.47 0.46 Diluted earnings per share (RMB yuan) 0.47 0.46 Basic and diluted earnings per share were calculated using the profit for the period attributable to ordinary shareholders of the parent company divided by the weighted average number of ordinary shares in issue.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 20 13. CASH AND BALANCES WITH CENTRAL BANKS 30 June 2026 31 December 2025 Cash on hand 61,791 72,868 Balances with central banks Mandatory reserves (i) 2,756,070 2,663,789 Surplus reserves (ii) 391,892 679,586 Fiscal deposits and others 306,509 256,607 Accrued interest 1,490 1,708 3,517,752 3,674,558 (i) The Group is required to place mandatory reserve deposits and other restricted deposits with the PBC 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 30 June 2026, the mandatory reserve deposits ratios of the domestic branches of the Bank in respect of customer deposits denominated in RMB and foreign currencies were 7.5% (31 December 2025: 7.5%) and 4.0% (31 December 2025: 4.0%) respectively. The mandatory reserve funds placed by domestic subsidiaries of the Group are determined by the PBC. The amounts of mandatory reserve deposits placed with the central banks of those countries or regions outside Chinese mainland are determined by local jurisdictions. (ii) Surplus reserves with central banks include funds for the purpose of cash settlement and other kinds of unrestricted deposits.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 21 14. DUE FROM BANKS AND OTHER FINANCIAL INSTITUTIONS 30 June 2026 31 December 2025 Deposits with banks and other financial institutions: Banks operating in Chinese mainland 137,844 151,978 Other financial institutions operating in Chinese mainland 146,717 42,379 Banks and other financial institutions operating outside Chinese mainland 150,839 224,832 Accrued interest 5,076 3,889 440,476 423,078 Less: Allowance for impairment losses (468) (676) 440,008 422,402 Placements with banks and other financial institutions: Banks operating in Chinese mainland 156,936 197,146 Other financial institutions operating in Chinese mainland 195,195 232,333 Banks and other financial institutions operating outside Chinese mainland 305,452 409,320 Accrued interest 5,056 4,880 662,639 843,679 Less: Allowance for impairment losses (1,145) (2,062) 661,494 841,617 1,101,502 1,264,019
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 22 15. DERIVATIVE FINANCIAL INSTRUMENTS 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. The notional amounts and fair values of derivative financial instruments held by the Group are set out below: 30 June 2026 31 December 2025 Notional Fair values Notional Fair values amounts Assets Liabilities amounts Assets Liabilities Exchange rate contracts 7,948,057 55,038 (47,648) 11,967,681 74,791 (45,520) Interest rate contracts 5,242,277 11,827 (10,530) 3,954,950 9,135 (8,665) Commodity derivatives and others 3,125,319 73,958 (45,413) 3,085,192 46,488 (79,897) 16,315,653 140,823 (103,591) 19,007,823 130,414 (134,082) (a) Cash flow hedges The Group’s cash flow hedges consist of interest rate contracts, exchange rate contracts, equity and other derivatives that are used to protect against exposures to variability of future cash flows. Included in the above derivative financial instruments, those designated as hedging instruments in the Group’s cash flow hedges are set out below: 30 June 2026 Notional amounts with remaining maturity of Fair values Within three months Over three months but within one year Over one year but within five years Over five years Total Assets Liabilities Interest rate contracts - 8,524 9,831 197 18,552 18 (121) Exchange rate contracts 66,240 82,471 17,231 - 165,942 2,835 (873) Equity and other derivatives 760 15 - - 775 76 - 67,000 91,010 27,062 197 185,269 2,929 (994) 31 December 2025 Notional amounts with remaining maturity of Fair values Within three months Over three months but within one year Over one year but within five years Over five years Total Assets Liabilities Interest rate contracts 38 4,264 12,968 101 17,371 44 (2) Exchange rate contracts 38,692 77,397 422 - 116,511 513 (427) Equity and other derivatives 385 2,175 15 - 2,575 524 - 39,115 83,836 13,405 101 136,457 1,081 (429)
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 23 15. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED) (a) Cash flow hedges (continued) Details of the Group’s hedged risk exposures in cash flow hedges and the corresponding effect on equity are as follows: 30 June 2026 Carrying amount of hedged items Hedging instruments Assets Liabilities Effect on other comprehensive income during the current period Accumulated effect on other comprehensive income Securities (i) 16,816 (55,997) 24 (197) Loans and advances to customers 44,937 - (143) (107) Others (ii) 60,378 (10,245) (912) (4,331) 122,131 (66,242) (1,031) (4,635) (i) Securities are included in financial investments measured at FVTOCI, financial investments measured at amortised cost, debt securities issued and certificates of deposit. (ii) Other hedged items are included in due from banks and other financial institutions, due to banks and other financial institutions, due to customers, etc. 31 December 2025 Carrying amount of hedged items Hedging instruments Assets Liabilities Effect on other comprehensive income during the current year Accumulated effect on other comprehensive income Securities (i) 13,787 (37,804) 70 (221) Loans and advances to customers 21,909 - (96) 36 Others (ii) 41,847 (21,819) 735 (3,419) 77,543 (59,623) 709 (3,604) (i) Securities are included in financial investments measured at FVTOCI, financial investments measured at amortised cost, and certificates of deposit. (ii) Other hedged items are included in due from banks and other financial institutions, due to banks and other financial institutions, due to customers, etc. The ineffectiveness recognised in profit or loss that arises from the cash flow hedges was immaterial for the six months ended in 2026 and 2025.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 24 15. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED) (b) 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 and exchange rates . The Group mainly used interest rate contracts, exchange rate contracts, equity and other derivatives as hedging instruments to hedge the interest risk and exchange 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: Six months ended 30 June 2026 2025 Gains/(losses) arising from fair value hedges, net: Hedging instruments 2,190 (702) Hedged items (2,226) 653 (36) (49) Included in the above derivative financial instruments, those designated as hedging instruments in fair value hedges are set out below: 30 June 2026 Notional amounts with remaining maturity of Fair values Within three months Over three months but within one year Over one year but within five years Over five years Total Assets Liabilities Interest rate contracts 4,323 9,340 35,793 6,832 56,288 1,208 (175) Equity and other derivatives 1,568 4,394 - - 5,962 795 (460) Total 5,891 13,734 35,793 6,832 62,250 2,003 (635) 31 December 2025 Notional amounts with remaining maturity of Fair values Within three months Over three months but within one year Over one year but within five years Over five years Total Assets Liabilities Interest rate contracts 2,884 10,989 29,470 6,884 50,227 1,030 (275) Equity and other derivatives 680 2,580 - - 3,260 - (1,597) Total 3,564 13,569 29,470 6,884 53,487 1,030 (1,872)
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 25 15. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED) (b) Fair value hedges (continued) Details of the Group’s hedged risk exposures in fair value hedges are set out below: 30 June 2026 Carrying amount of hedged items Accumulated changes to the fair value of hedged items Assets Liabilities Assets Liabilities Securities (i) 53,024 (1,023) (1,122) 4 Loans and advances to customers 1,285 - (30) - Others (ii) 6,098 - (340) - 60,407 (1,023) (1,492) 4 (i) Securities are included in financial investments measured at FVTOCI, financial investments measured at amortised cost, debt securities issued and certificates of deposit. (ii) Other hedged items are included in other assets. 31 December 2025 Carrying amount of hedged items Accumulated changes to the fair value of hedged items Assets Liabilities Assets Liabilities Securities (i) 48,127 (1,409) (828) 1 Loans and advances to customers 809 - (23) - Others (ii) 140 - 1,591 - 49,076 (1,409) 740 1 (i) Securities are included in financial investments measured at FVTOCI, financial investments measured at amortised cost, debt securities issued and certificates of deposit. (ii) Other hedged items are included in due from banks and other financial institutions and other assets. (c) 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 30 June 2026, an accumulated net gains from the hedging instrument of RMB84 million was recognised in other comprehensive income (31 December 2025: accumulated net losses of RMB756 million). The ineffectiveness recognised in profit or loss that arises from the net investment hedges was immaterial for the six months ended in 2026 and 2025.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 26 15. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED) (d) Offsetting of financial instruments In accordance with the principle of offsetting financial instruments, the Group offsets certain derivative financial assets, derivative financial liabilities and variation margin and presents the net amounts after offsetting in the financial statements. 30 June 2026 31 December 2025 Gross amounts Net amounts Gross amounts Net amounts Derivative financial assets 121,674 54,844 156,794 57,100 Derivative financial liabilities 121,313 55,505 150,873 49,152 (e) 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: 30 June 2026 31 December 2025 Counterparty credit default risk-weighted assets 204,840 160,167 Including: Non-netting settled credit default risk-weighted assets 92,740 79,356 Netting settled credit default risk- weighted assets 112,100 80,811 Credit value adjustment risk-weighted assets 57,938 46,906 Central counterparties credit risk-weighted assets 6,249 5,085 269,027 212,158 16. REVERSE REPURCHASE AGREEMENTS 30 June 2026 31 December 2025 Measured at amortised cost: Reverse repurchase agreements-bills 179,712 94,859 Reverse repurchase agreements-securities 830,602 417,701 Accrued interest 309 324 Less: Allowance for impairment losses (16) (32) 1,010,607 512,852 Measured at FVTPL: Reverse repurchase agreements-securities 19,171 17,885 1,029,778 530,737
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 27 17. LOANS AND ADVANCES TO CUSTOMERS 17.1 Loans and advances to customers by type of measurement: 30 June 2026 31 December 2025 Measured at amortised cost: Corporate loans and advances 20,068,136 18,809,747 －Loans 19,902,375 18,641,761 －Finance lease 165,761 167,986 Personal loans 9,000,436 9,002,636 Discounted bills 60,095 31,090 Accrued interest 65,877 57,858 29,194,544 27,901,331 Less: Allowance for impairment losses on loans and advances to customers measured at amortised cost (Note 17.2(a)) (895,553) (851,750) 28,298,991 27,049,581 Measured at FVTOCI: Corporate loans and advances －Loans 19,177 24,735 Discounted bills 2,839,452 2,630,717 Accrued interest 70 137 2,858,699 2,655,589 Measured at FVTPL: Corporate loans and advances －Loans 4,830 7,189 31,162,520 29,712,359 As at 30 June 2026, the Group’s allowance for impairment losses on loans and advances to customers measured at FVTOCI was RMB495 million (31 December 2025: RMB524 million), refer to Note 17.2(b).
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 28 17. LOANS AND ADVANCES TO CUSTOMERS (CONTINUED) 17.2 Allowance for impairment losses on loans and advances (a) Movements of the allowance for impairment losses on loans and advances to customers measured at amortised cost are as follows: Stage 1 Stage 2 Stage 3 (12-month (Lifetime ECL (Lifetime ECL expected credit not credit- credit- loss ("ECL")) impaired) impaired) Total Balance at 1 January 2026 349,667 166,682 335,401 851,750 Transfer: －to stage 1 24,390 (22,056) (2,334) - －to stage 2 (8,299) 11,430 (3,131) - －to stage 3 (2,909) (23,227) 26,136 - Charge for the period 49,442 16,204 57,385 123,031 Write-offs and transfer out - - (81,911) (81,911) Recoveries of loans and advances previously written off - - 5,351 5,351 Other movements (328) (1,403) (937) (2,668) Balance at 30 June 2026 411,963 147,630 335,960 895,553 Stage 1 Stage 2 Stage 3 Total Balance at 1 January 2025 354,083 156,502 304,487 815,072 Transfer: －to stage 1 21,754 (18,212) (3,542) - －to stage 2 (10,433) 12,981 (2,548) - －to stage 3 (6,356) (32,304) 38,660 - (Reverse)/charge for the year (10,175) 49,820 109,882 149,527 Write-offs and transfer out - - (119,958) (119,958) Recoveries of loans and advances previously written off - - 11,546 11,546 Other movements 794 (2,105) (3,126) (4,437) Balance at 31 December 2025 349,667 166,682 335,401 851,750
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 29 17. LOANS AND ADVANCES TO CUSTOMERS (CONTINUED) 17.2 Allowance for impairment losses on loans and advances (continued) (b) Movements of the allowance for impairment losses on loans and advances to customers measured at FVTOCI are as follows: Stage 1 Stage 2 Stage 3 Total Balance at 1 January 2026 242 136 146 524 Transfer: －to stage 1 - - - - －to stage 2 - - - - －to stage 3 - (11) 11 - (Reverse)/charge for the period (31) (39) 55 (15) Other movements (1) (14) 1 (14) Balance at 30 June 2026 210 72 213 495 Stage 1 Stage 2 Stage 3 Total Balance at 1 January 2025 353 51 21 425 Transfer: －to stage 1 - - - - －to stage 2 - - - - －to stage 3 - (20) 20 - (Reverse)/charge for the year (142) 86 149 93 Other movements 31 19 (44) 6 Balance at 31 December 2025 242 136 146 524 18. FINANCIAL INVESTMENTS 30 June 2026 31 December 2025 Financial investments measured at FVTPL (a) 1,019,652 943,953 Financial investments measured at FVTOCI (b) 4,156,964 3,823,279 Financial investments measured at amortised cost (c) 13,456,152 12,140,183 18,632,768 16,907,415
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 30 18. FINANCIAL INVESTMENTS (CONTINUED) (a) Financial investments measured at FVTPL 30 June 2026 31 December 2025 Financial investments held for trading Debt securities (analysed by type of issuers): Governments and central banks 250,545 277,067 Policy banks 25,334 44,648 Banks and other financial institutions 181,663 102,671 Corporate entities 125,982 86,128 583,524 510,514 Equity investments 15,892 19,227 599,416 529,741 Financial investments designated as at FVTPL Debt securities (analysed by type of issuers): Governments and central banks 8,494 8,725 Policy banks 2,812 2,384 Banks and other financial institutions 266 548 Corporate entities 590 - 12,162 11,657 Funds and other investments 26,699 28,224 38,861 39,881 Other financial investments measured at FVTPL Debt securities (analysed by type of issuers): Policy banks 425 463 Banks and other financial institutions 58,550 82,916 Corporate entities 1,518 688 60,493 84,067 Equity investments 118,072 117,994 Funds and other investments 202,810 172,270 381,375 374,331 1,019,652 943,953 Analysed into: Debt securities: Listed in Hong Kong SAR 9,923 5,799 Listed outside Hong Kong SAR 46,238 38,347 Unlisted 600,018 562,092 656,179 606,238
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 31 18. FINANCIAL INVESTMENTS (CONTINUED) (a) Financial investments measured at FVTPL (continued) 30 June 2026 31 December 2025 Analysed into: (continued) Equity investments: Listed in Hong Kong SAR 3,047 6,055 Listed outside Hong Kong SAR 23,230 25,277 Unlisted 107,687 105,889 133,964 137,221 Funds and other investments: Listed in Hong Kong SAR 5,003 5,222 Listed outside Hong Kong SAR 4,474 4,789 Unlisted 220,032 190,483 229,509 200,494 1,019,652 943,953 (b) Financial investments measured at FVTOCI 30 June 2026 31 December 2025 Debt securities (analysed by type of issuers): Governments and central banks 1,401,427 1,529,473 Policy banks 1,244,897 913,419 Banks and other financial institutions 524,751 496,640 Corporate entities 851,981 746,110 Accrued interest 37,763 35,102 4,060,819 3,720,744 Other debt investments 4,870 4,870 Equity investments 91,275 97,665 4,156,964 3,823,279 Analysed into: Debt securities: Listed in Hong Kong SAR 156,757 147,838 Listed outside Hong Kong SAR 510,284 468,668 Unlisted 3,393,778 3,104,238 4,060,819 3,720,744 Other debt investments: Unlisted 4,870 4,870 Equity investments: Listed in Hong Kong SAR 25,721 24,255 Listed outside Hong Kong SAR 17,735 15,713 Unlisted 47,819 57,697 91,275 97,665 4,156,964 3,823,279
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 32 18. FINANCIAL INVESTMENTS (CONTINUED) (b) Financial investments measured at FVTOCI (continued) As at 30 June 2026, the accumulated unrealised fair value gains of the Group’s debt securities measured at FVTOCI was RMB 75,017 million (31 December 2025: the accumulated unrealized profit of RMB 63,140 million), and the accumulated unrealised fair value losses of the Group’s other debt investments measured at FVTOCI was RMB174 million (31 December 2025: the accumulated unrealized loss of RMB174 million). The following table show s the movement in the Group’s equity instruments measured at fair value through other comprehensive income： Changes in fair value of equity instruments 1 January 2026 Additions Derecognised in the period Held at the end of the period Disposals Cumulative gains/(losses) transferred into retained earnings from other comprehensive income after disposal 30 June 2026 Financial assets： Carrying amount 97,665 8,900 184 (7,448) (8,026) - 91,275 Cumulative gains/(losses) in other comprehensive income 8,179 - 184 (7,448) - (176) 739 Changes in fair value of equity instruments 1 January 2025 Additions Derecognised in the year Held at the end of the year Disposals Cumulative gains/(losses) transferred into retained earnings from other comprehensive income after disposal 31 December 2025 Financial assets： Carrying amount 85,226 26,839 378 999 (15,777) - 97,665 Cumulative gains/(losses) in other comprehensive income 8,120 - 378 999 - (1,318) 8,179 The Group designates certain non-trading equity investments as financial investments measured at FVTOCI. For the six months ended 30 June 2026, dividend income from such equity investments was RMB 1,733 million ( six months ended 30 June 2025: RMB1,937 million). There was RMB80 million dividend income from equity investments derecognised (six months ended 30 June 2025: RMB156 million).
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 33 18. FINANCIAL INVESTMENTS (CONTINUED) (b) Financial investments measured at FVTOCI (continued) 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 i mpairment gain or loss is recognised in profit or loss. Movements of the allowance for impairment losses on financial investments measured at FVTOCI are as follows: Stage 1 Stage 2 Stage 3 Total Balance at 1 January 2026 4,844 384 3,368 8,596 Transfer: －to stage 1 - - - - －to stage 2 - - - - －to stage 3 - - - - (Reverse)/charge for the period (572) (144) 5 (711) Other movements (11) (7) (187) (205) Balance at 30 June 2026 4,261 233 3,186 7,680 Stage 1 Stage 2 Stage 3 Total Balance at 1 January 2025 4,565 635 3,825 9,025 Transfer: －to stage 1 - - - - －to stage 2 (35) 35 - - －to stage 3 - - - - Charge/(reverse) for the year 416 (259) 43 200 Other movements (102) (27) (500) (629) Balance at 31 December 2025 4,844 384 3,368 8,596
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 34 18. FINANCIAL INVESTMENTS (CONTINUED) (c) Financial investments measured at amortised cost 30 June 2026 31 December 2025 Debt securities (analysed by type of issuers): Governments and central banks (i) 11,974,608 10,781,870 Policy banks 397,363 409,508 Banks and other financial institutions (ii) 897,569 777,686 Corporate entities 98,738 84,539 Accrued interest 108,275 103,527 13,476,553 12,157,130 Other investments (iii) 19,328 19,224 Accrued interest 89 32 19,417 19,256 13,495,970 12,176,386 Less: Allowance for impairment losses (39,818) (36,203) 13,456,152 12,140,183 Analysed into: Debt securities: Listed in Hong Kong SAR 40,754 34,314 Listed outside Hong Kong SAR 409,502 286,949 Unlisted 12,990,336 11,803,093 13,440,592 12,124,356 Other investments: Unlisted 15,560 15,827 15,560 15,827 13,456,152 12,140,183 Market value of listed securities 456,097 322,288 (i) This includes a special government bond, which is a non -negotiable bond with a nominal value of RMB85,000 million (31 December 2025: 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. (ii) This includes Huarong bonds of RMB 90,309 million (31 December 2025: RMB 90,309 million). Huarong bonds are a series of long-term bonds issued by the former 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 we re 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. Inter est rate would be determined on a yearly basis with reference to the average level of five-year government bond yield in the previous year. In January 2021, the Bank received a notice from the MOF that the maturity dates of Huarong bonds were further extended for ten years. As at 30 June 2026, the Bank had received accumulated early repayments amounting to RMB222,687 million (31 December 2025: RMB222,687 million). (iii) Other investments include debt investment plans, asset management plans and trust plans with fixed or determinable payments. They will mature from September 2026 to August 2039 and bear interest rates ranging from 2.45% to 6.06% per annum.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 35 18. FINANCIAL INVESTMENTS (CONTINUED) (c) Financial investments measured at amortised cost (continued) Movements of the allowance for impairment losses on financial investments measured at amortised cost are as follows: Stage 1 Stage 2 Stage 3 Total Balance at 1 January 2026 33,199 305 2,699 36,203 Transfer: －to stage 1 - - - - －to stage 2 - - - - －to stage 3 - - - - Charge for the period 3,198 455 - 3,653 Other movements (37) 1 (2) (38) Balance at 30 June 2026 36,360 761 2,697 39,818 Stage 1 Stage 2 Stage 3 Total Balance at 1 January 2025 35,540 11 2,852 38,403 Transfer: －to stage 1 - - - - －to stage 2 (160) 160 - - －to stage 3 - - - - (Reverse)/charge for the year (2,224) 134 - (2,090) Other movements 43 - (153) (110) Balance at 31 December 2025 33,199 305 2,699 36,203
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 36 19. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES 30 June 2026 31 December 2025 Interests in associates 77,032 76,527 Interests in joint ventures 1,606 1,786 78,638 78,313 30 June 2026 31 December 2025 Share of net assets 64,188 63,719 Goodwill 14,969 15,113 79,157 78,832 Less: Allowance for impairment losses (519) (519) 78,638 78,313 (a) Carrying value of the Group’s associates and joint ventures are as follows: 30 June 2026 31 December 2025 Standard Bank 30,707 30,557 Others 47,931 47,756 78,638 78,313 Standard Bank is a listed commercial bank registered in Johannesburg, the Republic of South Africa with an issued capital of ZAR165 million and a strategic partner of the Group. As at 30 June 2026, the Group’s equity interest and voting rights in Standard Bank were both 19.74% (31 December 2025: 19.74%).
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 37 19. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (CONTINUED) (a) Carrying value of the Group’s associates and joint ventures are as follows: (continued) 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/ As at/ six months ended year ended 30 June 2026 31 December 2025 The associate Assets 1,575,159 1,522,554 Liabilities 1,441,800 1,391,184 Net assets 133,359 131,370 Profit from continuing operations 10,836 20,646 Equity method of the associate Net assets of the associate attributable to the parent company 113,092 111,603 Group’s effective interest 19.74% 19.74% Group’s share of net assets of the associate 22,324 22,030 Goodwill 8,731 8,875 Closing balance of the Group’s interest in Standard Bank in the consolidated statement of financial position 31,055 30,905
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 38 19. INVESTMENTS IN ASSOCIATES AND JOINT VENTURES (CONTINUED) (b) Movements of associates and joint ventures investments of the Group are as follows: Movements during the period Book value Allowance for impairment Investment income recognised Other Declared distribution of Book value Allowance for impairment at beginning at beginning Investment Investment under the comprehensive cash dividends at end of at end of of the period of the period increase decrease equity method income or profits Others the period the period Joint ventures 1,786 - - - (142) - - (38) 1,606 - Associates Standard Bank 30,557 (348) - - 2,068 (249) (1,200) (469) 30,707 (348) Others 45,970 (171) 14 - 1,056 10 (707) (18) 46,325 (171) Subtotal 76,527 (519) 14 - 3,124 (239) (1,907) (487) 77,032 (519) Total 78,313 (519) 14 - 2,982 (239) (1,907) (525) 78,638 (519)
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 39 20. PROPERTY AND EQUIPMENT Properties and buildings Construction in progress Leasehold improvements Office equipment and motor vehicles Aircraft and vessels Total Cost At 1 January 2025 207,476 21,152 15,704 87,620 215,222 547,174 Additions 654 11,817 767 6,766 17,529 37,533 CIP transfer in/(out) 4,713 (13,370) - 71 8,586 - Disposals and other movements (2,238) (451) (254) (6,439) (29,249) (38,631) At 31 December 2025 and 1 January 2026 210,605 19,148 16,217 88,018 212,088 546,076 Additions 128 5,122 143 1,070 6,576 13,039 CIP transfer in/(out) 732 (1,261) - 34 495 - Disposals and other movements (311) (462) (215) (1,310) (17,062) (19,360) At 30 June 2026 211,154 22,547 16,145 87,812 202,097 539,755 Accumulated depreciation and allowance for impairment losses At 1 January 2025 97,762 35 13,828 72,536 60,626 244,787 Depreciation charge for the year 7,306 - 795 7,056 7,255 22,412 Impairment charge for the year - 1 - 4 1,043 1,048 Disposals and other movements (984) (2) (195) (6,365) (8,461) (16,007) At 31 December 2025 and 1 January 2026 104,084 34 14,428 73,231 60,463 252,240 Depreciation charge for the period 4,321 - 355 3,414 3,426 11,516 Impairment charge for the period - - - - 712 712 Disposals and other movements (442) - (185) (1,334) (6,606) (8,567) At 30 June 2026 107,963 34 14,598 75,311 57,995 255,901 Carrying amount At 31 December 2025 106,521 19,114 1,789 14,787 151,625 293,836 At 30 June 2026 103,191 22,513 1,547 12,501 144,102 283,854 As at 30 June 2026, the process of obtaining the legal titles for the Group’s properties and buildings with an aggregate carrying amount of RMB4,608 million (31 December 2025: RMB6,353 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. As at 30 June 2026, the carrying amount of aircraft and vessels leased out by the Group under operating leases was RMB144,102 million (31 December 2025: RMB151,625 million). As at 30 June 2026, the carrying amount of aircraft and vessels owned by the Group that have been pledged as collateral for liabilities due to banks and other financial institutions was RMB20,403 million (31 December 2025: RMB19,793 million). As at 30 June 2026, the carrying amount of aircraft and vessel construction in progress was RMB18,401 million (31 December 2025: RMB14,756 million).
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 40 21. DEFERRED TAX ASSETS AND LIABILITIES (a) Analysed by nature Deferred tax assets: 30 June 2026 31 December 2025 Deductible/ (taxable) Deferred tax Deductible/ (taxable) Deferred tax temporary assets/ temporary assets/ differences (liabilities) differences (liabilities) Allowance for impairment losses 515,653 128,015 485,136 120,376 Change in fair value of financial instruments measured at FVTPL 49 3 (29,298) (7,347) Change in fair value of financial instruments measured at FVTOCI (72,846) (18,033) (59,032) (14,537) Accrued staff costs 41,055 10,308 47,289 11,862 Others (28,395) (7,495) (24,192) (6,065) 455,516 112,798 419,903 104,289 Deferred tax liabilities: 30 June 2026 31 December 2025 Taxable/ (deductible) Deferred tax Taxable/ (deductible) Deferred tax temporary liabilities/ temporary liabilities/ differences (assets) differences (assets) Allowance for impairment losses (1,084) (266) (1,105) (270) Change in fair value of financial instruments measured at FVTPL 13,171 3,242 9,745 2,368 Change in fair value of financial instruments measured at FVTOCI 12,253 3,061 14,745 3,670 Others (1,466) (547) 3,904 783 22,874 5,490 27,289 6,551
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 41 21. DEFERRED TAX ASSETS AND LIABILITIES (CONTINUED) (b) Movements of deferred income tax Deferred tax assets: 1 January Recognised in Recognised in other comprehensive 30 June 2026 profit or loss income 2026 Allowance for impairment losses 120,376 7,639 - 128,015 Change in fair value of financial instruments measured at FVTPL (7,347) 7,350 - 3 Change in fair value of financial instruments measured at FVTOCI (14,537) - (3,496) (18,033) Accrued staff costs 11,862 (1,554) - 10,308 Others (6,065) (2,026) 596 (7,495) 104,289 11,409 (2,900) 112,798 Deferred tax liabilities: 1 January Recognised in Recognised in other comprehensive 30 June 2026 profit or loss income 2026 Allowance for impairment losses (270) 4 - (266) Change in fair value of financial instruments measured at FVTPL 2,368 874 - 3,242 Change in fair value of financial instruments measured at FVTOCI 3,670 - (609) 3,061 Others 783 (1,330) - (547) 6,551 (452) (609) 5,490
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 42 21. DEFERRED TAX ASSETS AND LIABILITIES (CONTINUED) (b) Movements of deferred income tax (continued) Deferred tax assets: 1 January Recognised in Recognised in other comprehensive 31 December 2025 profit or loss income 2025 Allowance for impairment losses 117,825 2,551 - 120,376 Change in fair value of financial instruments measured at FVTPL (10,183) 2,836 - (7,347) Change in fair value of financial instruments measured at FVTOCI (28,101) - 13,564 (14,537) Accrued staff costs 11,477 385 - 11,862 Others (971) (3,220) (1,874) (6,065) 90,047 2,552 11,690 104,289 Deferred tax liabilities: 1 January Recognised in Recognised in other comprehensive 31 December 2025 profit or loss income 2025 Allowance for impairment losses (23) (247) - (270) Change in fair value of financial instruments measured at FVTPL 1,693 675 - 2,368 Change in fair value of financial instruments measured at FVTOCI (81) - 3,751 3,670 Others 2,689 (1,906) - 783 4,278 (1,478) 3,751 6,551 As at 30 June 2026 and 31 December 2025, the Group did not have significant unrecognised deferred tax assets.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 43 22. OTHER ASSETS 30 June 2026 31 December 2025 Settlement and clearing balances 315,080 305,933 Precious metals 546,275 330,867 Right-of-use assets (a) 22,140 23,439 Land use rights 13,131 13,454 Goodwill (b) 19,310 19,658 Advance payments 7,920 1,207 Repossessed assets (c) 5,749 6,035 Interest receivable 3,796 3,749 Others 91,092 92,019 1,024,493 796,361 Less: Allowance for impairment losses (14,333) (14,528) 1,010,160 781,833 (a) Right-of-use assets Properties and buildings Aircraft and vessels Office equipment and motor vehicles Total Cost At 1 January 2025 43,607 10,763 459 54,829 Additions 6,361 - 157 6,518 Disposals and other movements (4,089) (239) (69) (4,397) At 31 December 2025 and 1 January 2026 45,879 10,524 547 56,950 Additions 2,440 - 14 2,454 Disposals and other movements (2,768) (326) (11) (3,105) At 30 June 2026 45,551 10,198 550 56,299 Accumulated depreciation At 1 January 2025 27,467 2,482 414 30,363 Depreciation charge for the year 6,234 346 57 6,637 Disposals and other movements (3,375) (58) (56) (3,489) At 31 December 2025 and 1 January 2026 30,326 2,770 415 33,511 Depreciation charge for the period 2,894 167 32 3,093 Disposals and other movements (2,351) (87) (7) (2,445) At 30 June 2026 30,869 2,850 440 34,159 Allowance for impairment losses At 1 January 2025 37 441 - 478 Impairment charge for the year 39 - - 39 Other movements (16) (10) - (26) At 31 December 2025 and 1 January 2026 60 431 - 491 Other movements (2) (13) - (15) At 30 June 2026 58 418 - 476 Carrying amount At 31 December 2025 15,493 7,323 132 22,948 At 30 June 2026 14,624 6,930 110 21,664
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 44 22. OTHER ASSETS (CONTINUED) (b) Goodwill 30 June 31 December 2026 2025 At 1 January 19,658 19,566 Additions - 412 Exchange difference (348) (320) Subtotal 19,310 19,658 Less: Allowance for impairment losses (786) (796) Net carrying amount 18,524 18,862 The goodwill is attributable to the expected synergies arising from business combination . Goodwill arising from business combinations has been reasonably allocated to the CGU, which is not larger than the reportable segment of the Group, for impairment testing. 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 institutions. 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. (c) Repossessed assets 30 June 31 December 2026 2025 Properties and buildings 5,687 5,759 Other 62 276 Subtotal 5,749 6,035 Less: Allowance for impairment losses (2,756) (2,862) 2,993 3,173
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 45 23. IMPAIRMENT ALLOWANCE At 1 January (Reverse)/ charge Write-offs and Recoveries of previous Others At 30 2026 for the period transfer out write-offs June 2026 Due from banks and other financial institutions 2,738 (1,046) - - (79) 1,613 Reverse repurchase agreements 32 (13) - - (3) 16 Loans and advances to customers 852,274 123,016 (81,911) 5,351 (2,682) 896,048 Financial investments 44,799 2,942 (94) - (149) 47,498 Investments in associates and joint ventures 519 - - - - 519 Property and equipment 11,184 712 (1,417) - (308) 10,171 Credit commitments 24,114 991 - - (198) 24,907 Others 14,580 1,154 (1,392) - (9) 14,333 Total 950,240 127,756 (84,814) 5,351 (3,428) 995,105 At 1 January (Reverse)/ charge Write-offs and Recoveries of previous Others At 31 December 2025 for the year transfer out write-offs 2025 Due from banks and other financial institutions 4,347 (1,575) - - (34) 2,738 Reverse repurchase agreements 33 (2) - - 1 32 Loans and advances to customers 815,497 149,620 (119,958) 11,546 (4,431) 852,274 Financial investments 47,428 (1,890) (504) - (235) 44,799 Investments in associates and joint ventures 519 - - - - 519 Property and equipment 12,802 1,048 (2,516) - (150) 11,184 Credit commitments 25,159 (830) - - (215) 24,114 Others 41,553 (23,658) (2,857) - (458) 14,580 Total 947,338 122,713 (125,835) 11,546 (5,522) 950,240 24. DUE TO BANKS AND OTHER FINANCIAL INSTITUTIONS 30 June 2026 31 December 2025 Deposits: Banks and other financial institutions operating in Chinese mainland 5,051,331 4,358,205 Banks and other financial institutions operating outside Chinese mainland 226,412 178,342 Accrued interest 12,145 32,149 5,289,888 4,568,696 Money market takings: Banks and other financial institutions operating in Chinese mainland 327,208 305,753 Banks and other financial institutions operating outside Chinese mainland 237,197 224,171 Accrued interest 4,104 4,627 568,509 534,551 5,858,397 5,103,247
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 46 25. FINANCIAL LIABILITIES MEASURED AT FAIR VALUE THROUGH PROFIT OR LOSS 30 June 2026 31 December 2025 Financial liabilities related to precious metals and account-based investment products (i) 223,398 133,111 Debt securities issued (i) 11,059 12,550 Others 15,457 4,535 249,914 150,196 (i) Financial liabilities related to precious metals and account-based investment products, and certain issued debt securities have been matched with precious metals or derivatives of the Group as part of a documented risk management strategy to mitigate marke t risk. An accounting mismatch would arise if these financial liabilities were accounted for at amortised cost, whereas the related precious metals or derivatives were measured at fair value with movements in fair value taken through the statement of profi t 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 30 June 2026 and 31 December 2025, the differences 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 were not significant. For the six months ended 30 June 2026 and the year ended 31 December 2025, 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 period /year were not significant. The changes in fair value of the financial liabilities were mainly attributable to changes in other market factors. 26. REPURCHASE AGREEMENTS 30 June 2026 31 December 2025 Measured at amortised cost: Repurchase agreements-bills 29,919 16,752 Repurchase agreements-securities 2,990,725 2,503,997 Accrued interest 16,159 14,933 Subtotal 3,036,803 2,535,682 Measured at FVTPL: Repurchase agreements-securities 1,166 694 Total 3,037,969 2,536,376
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 47 27. CERTIFICATES OF DEPOSIT Certificates of deposit issued by certain of the Bank’s overseas branches and subsidiaries are measured at amortised cost. 28. DUE TO CUSTOMERS 30 June 2026 31 December 2025 Demand deposits: Corporate customers 7,624,751 7,519,087 Personal customers 7,051,106 6,935,021 14,675,857 14,454,108 Time deposits: Corporate customers 9,827,367 8,831,506 Personal customers 14,005,565 13,269,598 23,832,932 22,101,104 Others 238,549 251,921 Accrued interest 425,927 504,645 39,173,265 37,311,778 As at 30 June 2026, the Group’s pledged deposits included in above amounted to RMB228,813 million (31 December 2025: RMB169,335 million). 29. DEBT SECURITIES ISSUED 30 June 2026 31 December 2025 Subordinated bonds, tier 2 capital bonds and total loss-absorbing capacity eligible non-capital bonds (a) Issued by the Bank 929,975 788,003 Issued by subsidiaries 5,033 5,009 Accrued interest 11,164 11,578 946,172 804,590 Other debt securities (b) Issued by the Bank 1,546,622 1,354,643 Issued by subsidiaries 56,757 55,774 Accrued interest 2,149 1,800 1,605,528 1,412,217 2,551,700 2,216,807 As at 30 June 2026, the amount of debt securities issued that were due within one year was RMB1,485,225 million (31 December 2025: RMB1,286,883 million). For the six months ended 30 June 2026, the Group has not had any defaults in respect of payments of principal or interest or other breaches with respect to the bonds ( year ended 31 December 2025: Nil).
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 48 29. DEBT SECURITIES ISSUED (CONTINUED) (a) Tier 2 capital bonds and total loss-absorbing capacity eligible non-capital bonds The Bank: As approved by the PBC and the NFRA, the Bank issued callable Tier 2 capital bonds and total loss-absorbing capacity eligible non -capital bonds (TLAC non -capital Bonds) in the National Interbank Bond Market through open market bidding. These Tier 2 capital bonds and TLAC non-capital bonds were traded on the National Interbank Bond Market. The relevant information is set out below: Issued and Issue price nominal amount Coupon Value Maturity Circulation Name Issue date (In RMB) (In RMB million) rate date date date 19 ICBC 02 Tier 2 Bond 21/03/2019 100 Yuan 10,000 4.51% 25/03/2019 25/03/2034 26/03/2019 19 ICBC 04 Tier 2 Bond 24/04/2019 100 Yuan 10,000 4.69% 26/04/2019 26/04/2034 28/04/2019 20 ICBC 03 Tier 2 Bond 12/11/2020 100 Yuan 10,000 4.45% 16/11/2020 16/11/2035 17/11/2020 21 ICBC 02 Tier 2 Bond 13/12/2021 100 Yuan 50,000 3.48% 15/12/2021 15/12/2031 16/12/2021 21 ICBC 03 Tier 2 Bond 13/12/2021 100 Yuan 10,000 3.74% 15/12/2021 15/12/2036 16/12/2021 22 ICBC 01 Tier 2 Bond 18/01/2022 100 Yuan 35,000 3.28% 20/01/2022 20/01/2032 21/01/2022 22 ICBC 02 Tier 2 Bond 18/01/2022 100 Yuan 5,000 3.60% 20/01/2022 20/01/2037 21/01/2022 22 ICBC 03 Tier 2 Bond 12/04/2022 100 Yuan 45,000 3.50% 14/04/2022 14/04/2032 15/04/2022 22 ICBC 04 Tier 2 Bond 12/04/2022 100 Yuan 5,000 3.74% 14/04/2022 14/04/2037 15/04/2022 22 ICBC 03A Tier-2 Capital Bonds 18/08/2022 100 Yuan 30,000 3.02% 22/08/2022 22/08/2032 23/08/2022 22 ICBC 03B Tier-2 Capital Bonds 18/08/2022 100 Yuan 10,000 3.32% 22/08/2022 22/08/2037 23/08/2022 22 ICBC 04A Tier-2 Capital Bonds 08/11/2022 100 Yuan 50,000 3.00% 10/11/2022 10/11/2032 11/11/2022 22 ICBC 04B Tier-2 Capital Bonds 08/11/2022 100 Yuan 10,000 3.34% 10/11/2022 10/11/2037 11/11/2022 22 ICBC 05A Tier-2 Capital Bonds 20/12/2022 100 Yuan 25,000 3.70% 22/12/2022 22/12/2032 23/12/2022 22 ICBC 05B Tier-2 Capital Bonds 20/12/2022 100 Yuan 5,000 3.85% 22/12/2022 22/12/2037 23/12/2022 23 ICBC 01A Tier-2 Capital Bonds 10/04/2023 100 Yuan 35,000 3.49% 12/04/2023 12/04/2033 13/04/2023 23 ICBC 01B Tier-2 Capital Bonds 10/04/2023 100 Yuan 20,000 3.58% 12/04/2023 12/04/2038 13/04/2023 23 ICBC 02A Tier-2 Capital Bonds 28/08/2023 100 Yuan 30,000 3.07% 30/08/2023 30/08/2033 31/08/2023 23 ICBC 02B Tier-2 Capital Bonds 28/08/2023 100 Yuan 25,000 3.18% 30/08/2023 30/08/2038 31/08/2023 24 ICBC 01A TLAC Non -capital Bond 15/05/2024 100 Yuan 30,000 2.25% 17/05/2024 17/05/2028 20/05/2024 24 ICBC 01B TLAC Non -capital Bond 15/05/2024 100 Yuan 10,000 2.35% 17/05/2024 17/05/2030 20/05/2024 24 ICBC T2CB01A 27/08/2024 100 Yuan 42,000 2.25% 29/08/2024 29/08/2034 30/08/2024 24 ICBC T2CB01B 27/08/2024 100 Yuan 8,000 2.40% 29/08/2024 29/08/2039 30/08/2024 24 ICBC T2CB02 24/10/2024 100 Yuan 40,000 2.37% 28/10/2024 28/10/2034 29/10/2024 24 ICBC TLACENCGB01(BC) 17/12/2024 100 Yuan 10,000 1.76% 19/12/2024 19/12/2028 20/12/2024 25 ICBC T2CN01BC 27/02/2025 100 Yuan 50,000 2.05% 03/03/2025 03/03/2035 04/03/2025 25 ICBC T2CN02BC 28/04/2025 100 Yuan 50,000 1.98% 30/04/2025 30/04/2035 06/05/2025 25 ICBC T2CN 003(BC) 10/07/2025 100 Yuan 50,000 1.88% 14/07/2025 14/07/2035 15/07/2025 25 ICBC TLACENCB01(BC) 22/10/2025 100 Yuan 10,000 2.02% 24/10/2025 24/10/2029 27/10/2025 26 ICBC T2CN01BC 08/04/2026 100 Yuan 50,000 2.00% 10/04/2026 10/04/2036 13/04/2026 26 ICBC T2CN02BC 21/05/2026 100 Yuan 60,000 1.90% 25/05/2026 25/05/2036 26/05/2026 26 ICBC T2CN03BC 11/06/2026 100 Yuan 50,000 1.95% 15/06/2026 15/06/2036 16/06/2026 26 ICBC TLACENCB01(BC) 27/04/2026 100 Yuan 50,000 1.79% 29/04/2026 29/04/2030 30/04/2026 The Bank has the option to redeem these bonds in whole or in part on specific dates at par value in future upon the approval of the relevant regulatory authorities.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 49 29. DEBT SECURITIES ISSUED (CONTINUED) (a) Tier 2 capital bonds and total loss -absorbing capacity eligible non -capital bonds (continued) Subsidiaries: On 15 March 2022, ICBC-AXA issued a capital supplementary bond with an aggregate nominal amount of RMB5,000 million, bearing an initial fixed interest rate of 3.7%. The bond will mature on 17 March 2032. The issuer has an option to redeem the capital suppl ementary bond in whole or in part at par value at the end of the fifth interest-bearing year. If the issuer does not exercise the redemption option, the coupon rate would increase to 4.7% from the sixth interest- bearing year. The above tier 2 capital bond is traded on the National Interbank Bond Market.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 50 29. DEBT SECURITIES ISSUED (CONTINUED) (b) Other debt securities issued The Bank: (i) Head Office issued debt securities denominated in RMB at fixed or floating interest rates and interbank certificates of deposit denominated in RMB at zero -coupon amounting to RMB 1,453,572 million in total with maturities between the second half of 2026 to the second half of 2028. The coupon rates range from 0 to 2.70%. (ii) Sydney Branch issued debt securities, denominated in AUD and USD at fixed interest rates amounting to an equivalent of RMB173 million in total with maturities between the second half of 2026 to the first half of 2027. The coupon rates range from 1.15% to 2.75%. (iii) Singapore Branch issued debt securities denominated in RMB, SGD and USD at fixed or floating interest rates amounting to an equivalent of RMB17,621 million in total with maturities between the second half of 2026 to the second half of 2028. The coupon rate s range from 1.80% to 4.22%. (iv) New York Branch issued debt securities and notes denominated in USD at fixed interest rates or zero -coupon amounting to an equivalent of RMB 4,263 million in total with maturities between the second half of 2026 to the second half of 2027. The coupon rates range from 0 to 3.54%. (v) Luxembourg Branch issued debt securities denominated in RMB, EUR and USD at fixed or floating interest rates amounting to an equivalent of RMB 11,838 million in total that will mature between the second half of 2026 to the first half of 2029. The coupon rate range from 1.64% to 4.13%. (vi) Dubai (DIFC) Branch issued debt securities denominated in RMB and USD at fixed or floating interest rates amounting to an equivalent of RMB11,211 million in total with maturities between the first half of 2027 to the first half of 2029. The coupon rates ra nge from 1.64% to 4.23%. (vii) Hong Kong Branch issued debt securities denominated in USD at fixed interest rates amounting to an equivalent of RMB30,511 million in total with maturities between the second half of 2026 to the first half of 2029. The coupon rates range from 1.63% to 5.38%. (viii) London Branch issued securities denominated in GBP, USD and EUR at fixed or floating interest rates amounting to an equivalent of RMB 14,963 million in total with maturities between the second half of 2026 to the first half of 2029. The coupon rates range from 3.70% to 4.74%. (ix) Macau Branch issued debt securities denominated in USD at floating interest rates amounting to an equivalent of RMB2,371 million in total with maturities between the first half of 2027 to the first half of 2028. The coupon rates range from 4.11% to 4.18%. (x) Doha Branch issued debt securities denominated in RMB at fixed interest rates amounting to RMB99 million in total that will mature in the first half of 2029. The coupon rate is 1.50%.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 51 29. DEBT SECURITIES ISSUED (CONTINUED) (b) Other debt securities issued (continued) Subsidiaries: (i) ICBC Asia issued debt securities and interbank certificates of deposit denominated in RMB and USD at fixed interest rates amounting to an equivalent of RMB6,367 million in total with maturities between the second half of 2026 to the second half of 2027. Th e coupon rates range from 1.94% to 3.78%. (ii) ICBC Leasing issued debt securities denominated in RMB and USD at fixed or floating interest rates amounting to an equivalent of RMB38,569 million in total with maturities between the second half of 2026 to the second half of 2031. The coupon rates range from 1.63% to 5.20%. (iii) ICBC Thai issued debt securities denominated in THB at fixed interest rates amounting to an equivalent of RMB4,405 million in total with maturities between the second half of 2026 to the first half of 2028. The coupon rates range from 1.11% to 3.70%. (iv) ICBC International issued debt securities denominated in RMB and USD at fixed or floating interest rates amounting to an equivalent of RMB2,379 million in total with maturities between the first half of 2027 to the first half of 2028. The coupon rates rang e from 2.60% to 5.18%. (v) ICBC New Zealand issued debt securities denominated in NZD, RMB and USD at fixed or floating interest rates amounting to an equivalent of RMB2,319 million in total with maturities between the second half of 2027 to the first half of 2029. The coupon rates range from 1.93% to 5.78%. (vi) ICBC Austria issued interbank certificates of deposit denominated in EUR at fixed interest rates amounting to an equivalent of RMB271 million in total with maturities between the second half of 2028 to the first half of 2029. The coupon rates range from 2.82% to 2.95%. (vii) ICBC Canada issued zero-coupon interbank certificates of deposit denominated in CAD at fixed interest rates amounting to an equivalent of RMB 1,243 million in total that will mature in the second half of 2026. (viii) ICBC Argentina issued debt securities denominated in ARS and USD at fixed or floating interest rates amounting to an equivalent of RMB 1,204 million in total with maturities between the second half of 2026 and the first half of 2027. The coupon rates rang e from 3.70% to 26.19%.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 52 30. OTHER LIABILITIES 30 June 2026 31 December 2025 Settlement and clearing balances 526,396 545,081 Insurance business liabilities 346,840 325,149 Salaries, bonuses, allowances and subsidies payables (a) 39,892 46,996 Provisions for credit commitments (b) 24,907 24,114 Lease liabilities (c) 18,070 19,551 Sundry tax payables 12,887 18,243 Dividends payable 855 28,820 Promissory notes 407 1,028 Early retirement benefits 5 5 Others 36,785 34,965 1,007,044 1,043,952 (a) There were no overdue payment s for staff salaries, bonuses, allowances and subsidies payable as at 30 June 2026 (31 December 2025: Nil). (b) Provisions for credit commitments Stage 1 Stage 2 Stage 3 Total Balance at 1 January 2026 18,591 4,256 1,267 24,114 Transfer: －to stage 1 59 (59) - - －to stage 2 (144) 144 - - －to stage 3 (31) (61) 92 - Charge /(reverse) for the period 1,905 (912) (2) 991 Other movements (17) (87) (94) (198) Balance at 30 June 2026 20,363 3,281 1,263 24,907 Stage 1 Stage 2 Stage 3 Total Balance at 1 January 2025 19,815 5,244 100 25,159 Transfer: －to stage 1 184 (184) - - －to stage 2 (356) 356 - - －to stage 3 (180) (568) 748 - (Reverse)/ charge for the year (1,004) (981) 1,155 (830) Other movements 132 389 (736) (215) Balance at 31 December 2025 18,591 4,256 1,267 24,114
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 53 30. OTHER LIABILITIES (CONTINUED) (c) Lease liabilities 30 June 2026 31 December 2025 Less than one year 6,329 6,933 One to two years 4,455 5,499 Two to three years 3,113 3,761 Three to five years 4,588 4,504 More than five years 1,278 1,622 Undiscounted lease liabilities 19,763 22,319 Closing balance of lease liabilities 18,070 19,551 31. SHARE CAPITAL 30 June 2026 31 December 2025 Number of shares (millions) Nominal value Number of shares (millions) Nominal value Issued and fully paid: H shares of RMB1 Yuan each 86,795 86,795 86,795 86,795 A shares of RMB1 Yuan each 269,612 269,612 269,612 269,612 356,407 356,407 356,407 356,407 Except for the dividends of H shares which are payable in RMB or HKD equivalent, all of the ordinary A shares and H shares rank pari passu with each other in respect of dividends on ordinary shares.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 54 32. OTHER EQUITY INSTRUMENTS (1) Preference shares (a) Preference shares outstanding: Financial instruments outstanding Issue date Accounting classification Dividend rate Issue price Amount (million shares) In original currency (million) In RMB (million) Maturity Conversion condition Conversion Domestic Preference Shares RMB2015 18/11/2015 Equity 3.14% RMB100/Share 450 45,000 45,000 None Mandatory No RMB2019 19/09/2019 Equity 3.02% RMB100/Share 700 70,000 70,000 None Mandatory No Total 115,000 (b) Main clauses and basic information (i) Dividend Domestic dividends are paid annually. 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 domestic dividend rate and the be nchmark rate at the time of issuance. The fixed spread remains unchanged throughout the term of the Preference Shares. (ii) Conditions to distribution of dividends The Bank can pay 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 Bank may elect to cancel all or part of domestic dividends and this shall not constitute a default for any purpose, but such cancellation will require a shareholder’s resolution to be passed.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 55 32. OTHER EQUITY INSTRUMENTS (CONTINUED) (1) Preference shares (continued) (b) Main clauses and basic information (continued) (iii) Dividend stopper and setting mechanism For Domestic Preference Shares, if the Bank cancels all or part of the dividends to the Preference Shares, the Bank shall not make any dividends distribution to ordinary shareholders before the Bank pays the dividends to the preference shareholders in full for the current dividend period. Non-cumulative dividend is a dividend on 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. The Bank shall distribute dividends for Domestic Preference Shares in cash, based on the 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). (iv) Order of distribution and liquidation method The domestic 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.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 56 32. OTHER EQUITY INSTRUMENTS (CONTINUED) (1) Preference shares (continued) (b) Main clauses and basic information (continued) (v) Mandatory conversion trigger events For Domestic Preference Shares, upon the occurrence of an Additional Tier 1 Capital Trigger Event (Common Equity Tier 1 Capital Adequacy Ratio of the Bank falling to 5.125% or below), the Bank shall have the right to convert all or part of the outstanding face value of Domestic Preference Shares into A shares without the need for the consent of the domestic preference shareholders, in order to restore the Common Equity 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 to convert all the outstanding face value of Domestic Preference Shares into A shares without the need for the consent of the domestic preference shareholders . If Domestic Preference Shares were converted into A share, they cannot be converted to Preference Shares again under any circumstance. The initial mandatory conversion prices are RMB3.44 for Domestic 2015 Preference Shares and RMB5.43 for Domestic 2019 Preference Shares. In case of ordinary stock dividends distribution of the Bank or other circumstances, the Bank will make cumulative adjustment to the compulsory conversion price in turn. (vi) Redemption conditions Under the premise of obtaining the approval of the NFRA and compliance with relevant requirements, the Bank has the right to redeem all or part of Domestic Preference Shares, after five years since the date of issuance/the date of closing. The redemption p eriod 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 the current period.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 57 32. OTHER EQUITY INSTRUMENTS (CONTINUED) (1) Preference shares (continued) (c) Changes in preference shares outstanding 1 January 2026 Movement during the period 30 June 2026 Financial instruments outstanding Amount (million shares) In original currency (million) In RMB (million) Amount (million shares) In original currency (million) In RMB (million) Amount (million shares) In original currency (million) In RMB (million) Domestic Preference Shares RMB2015 450 45,000 45,000 - - - 450 45,000 45,000 RMB2019 700 70,000 70,000 - - - 700 70,000 70,000 Total 115,000 - 115,000 The carrying amount of Preference Shares issued by the Bank was RMB115,000 million (31 December 2025: RMB 115,000 million), and net amount of related issuance fees was RMB114,927 million as at 30 June 2026 (31 December 2025: RMB114,927 million). (2) Perpetual bonds (a) Perpetual bonds outstanding Financial instruments outstanding Issue date Accounting classification Initial interest rate Issue price Amount (million units) In original currency (million) In RMB (million) Maturity Conversion condition Conversion Offshore USD Perpetual bond 24/09/2021 Equity 3.20% Note (i) N/A 6,160 39,793 None None No Domestic RMB2021 Perpetual bond Series 2 24/11/2021 Equity 3.65% RMB100/Unit 300 30,000 30,000 None None No RMB2024 Perpetual bond Series 1 10/07/2024 Equity 2.35% RMB100/Unit 500 50,000 50,000 None None No RMB2025 Perpetual bond Series 1 09/05/2025 Equity 1.97% RMB100/Unit 400 40,000 40,000 None None No RMB2025 Perpetual bond Series 2 06/11/2025 Equity 2.21% RMB100/Unit 400 40,000 40,000 None None No RMB2026 Perpetual bond Series 1 16/04/2026 Equity 2.01% RMB100/Unit 300 30,000 30,000 None None No RMB2026 Perpetual bond Series 2 04/06/2026 Equity 1.89% RMB100/Unit 200 20,000 20,000 None None No Total 249,793 (i) Offshore USD Perpetual Bond was issued in specific denomination of USD200,000 and integral multiple of USD1,000 in excess thereof at an issue price of 100%.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 58 32. OTHER EQUITY INSTRUMENTS (CONTINUED) (2) Perpetual bonds (continued) (b) Main clauses and basic information With the approvals of relevant regulatory authorities, the Bank issued RMB30,000 million, RMB50,000 million , RMB40,000 million , RMB40,000 million , RMB30,000 million and RMB20,000 million of undated additional tier 1 capital bonds on 24 November 2021 , 10 July 2024, 9 May 2025, 6 November 2025, 16 April 2026 and 4 June 2026 (hereinafter referred to as “2021 Domestic Perpetual Bond Series 2”, “2024 Domestic Perpetual Bond Series 1”, “2025 Domestic Perpetual Bond Series 1”, “2025 Domestic Perpetual Bond Series 2”, “2026 Domestic Perpetual Bond Series 1” and “2026 Domestic Perpetual Bond Series 2” respectively, collectively Domestic Perpetual Bonds) in the National Interbank Bond Market. The Bank issued USD6,160 million of undated additional tier 1 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 were 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, in June 2026, the B ank redeemed its RMB70,000 million undated additional tier 1 capital bond issued domestically on June 2021. (i) Interest Each Domestic Perpetual Bond has a par value of RMB100, and the interest rates of the bonds for the first five years are 3.65% for 2021 Domestic Perpetual Bond Series 2, resetting every 5 years, 2.35% for 2024 Domestic Perpetual Bond Series 1, resetting every 5 years , 1.97% for 2025 Domestic Perpetual Bond Series 1, resetting every 5 years , 2.21% for 2025 Domestic Perpetual Bond Series 2, resetting every 5 years , 2.01% for 202 6 Domestic Perpetual Bond Series 1, resetting every 5 years and 1.89% for 202 6 Domestic Perpetual Bond Series 2, resetting every 5 years. The rates are determined by a benchmark rate plus an initial 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 Bonds shall be paid annually. 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, and the fixed spread will remain unchanged during the duration period. The dividend shall be paid semi-annually. (ii) Interest stopper and setting mechanism 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.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 59 32. OTHER EQUITY INSTRUMENTS (CONTINUED) (2) Perpetual bonds (continued) (b) Main clauses and basic information (continued) (iii) Order of distribution and liquidation method 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 Bond 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 Bonds 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. (iv) Write down conditions For 2021 Domestic Perpetual Bond Series 2, 202 4 Domestic Perpetual Bond Series 1, 2025 Domestic Perpetual Bond Series 1, 2025 Domestic Perpetual Bond Series 2, 2026 Domestic Perpetual Bond Series 1 and 2026 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 Offshore Perpetual Bond, upon the occurrence of a Non-Viability Trigger Event, the Bank has the right to write down all or part of 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. (v) Redemption conditions 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 bonds are not classified as additional tier 1 capital due to unpredicted changes in regulat ions, the Bank shall have the right to redeem Domestic Perpetual Bonds and Offshore Perpetual Bond fully instead of partly.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 60 32. OTHER EQUITY INSTRUMENTS (CONTINUED) (2) Perpetual bonds (continued) (c) Changes in perpetual bonds outstanding 1 January 2026 Movement during the period 30 June 2026 Financial instruments outstanding Amount (million units) In original currency (million) In RMB (million) Amount (million units) In original currency (million) In RMB (million) Amount (million units) In original currency (million) In RMB (million) Offshore USD Perpetual bond N/A 6,160 39,793 - - - N/A 6,160 39,793 Domestic RMB2021 Perpetual bond Series 1 700 70,000 70,000 (700) (70,000) (70,000) - - - RMB2021 Perpetual bond Series 2 300 30,000 30,000 - - - 300 30,000 30,000 RMB2024 Perpetual bond Series 1 500 50,000 50,000 - - - 500 50,000 50,000 RMB2025 Perpetual bond Series 1 400 40,000 40,000 - - - 400 40,000 40,000 RMB2025 Perpetual bond Series 2 400 40,000 40,000 - - - 400 40,000 40,000 RMB2026 Perpetual bond Series 1 - - - 300 30,000 30,000 300 30,000 30,000 RMB2026 Perpetual bond Series 2 - - - 200 20,000 20,000 200 20,000 20,000 Total 269,793 (20,000) 249,793 The carrying amount of perpetual bond s issued by the Bank was RMB249,793 million (31 December 2025: RMB 269,793 million), and net amount of related issuance fees was RMB249,739 million as at 30 June 2026 (31 December 2025: RMB269,730 million). (3) Interests attributable to equity instruments’ holders 30 June 2026 31 December 2025 1. Total equity attributable to equity holders of the parent company 4,326,994 4,244,259 (1) Equity attributable to ordinary shareholders of the parent company 3,962,328 3,859,602 (2) Equity attributable to other equity instrument holders of the parent company 364,666 384,657 2. Total equity attributable to non-controlling interests 28,850 27,765 (1) Equity attributable to ordinary shareholders of non-controlling interests 20,978 19,893 (2) Equity attributable to other equity instrument holders of non-controlling interests 7,872 7,872
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 61 33. RESERVES (a) Capital reserve Capital reserve mainly includes share premium arising from the issuance of new shares at prices in excess of par value. (b) Surplus reserves (i) Statutory surplus reserve 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. Subject to the approval of the Shareholders’ Meeting, 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. (ii) Discretionary 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’ Meeting. Subject to the approval of the shareholders, the discretionary surplus reserve may be used to offset accumulated losses of the Bank, if any, and may be converted into capital. (iii) Other surplus reserves 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.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 62 33. RESERVES (CONTINUED) (c) General reserve 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 for the year, which s hould not be less than 1.5% of the year-end balance of its risk assets, to partially cover unidentified possible losses. The Bank’s subsidiaries appropriate their profits to the general reserve according to the applicable local regulations. (d) Investment revaluation reserve The investment revaluation reserve records the fair value changes and impairment provision of financial investments measured at FVTOCI. (e) Foreign currency translation reserve The foreign currency translation reserve is used to record exchange differences arising from the translation of the financial statements of the foreign operations incorporated outside Chinese mainland. (f) Cash flow hedging reserve The cash flow hedging reserve comprises the effective portion of the gains or losses on the hedging instruments. (g) Other reserves Other reserves represent reserves other than the items listed above, including other comprehensive income recognised under the equity method. (h) Distributable profits The Bank’s distributable profit is based on its retained profits as determined under the PRC GAAP and IFRS Accounting Standards , 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 IFRS Accounting Standards.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 63 34. OTHER COMPREHENSIVE INCOME (a) Other comprehensive income attributable to equity holders of the parent company in the consolidated statement of financial position Investment revaluation reserve Foreign currency translation reserve Others Total 1 January 2025 76,965 (6,092) (23,178) 47,695 Movement during the year (25,720) (8,203) 3,327 (30,596) 31 December 2025 and 1 January 2026 51,245 (14,295) (19,851) 17,099 Movement during the period 6,926 (11,536) (1,831) (6,441) 30 June 2026 58,171 (25,831) (21,682) 10,658 (b) Other comprehensive income in the consolidated statement of profit or loss and other comprehensive income Six months ended 30 June 2026 2025 Items that will not be reclassified to profit or loss: (i) Changes in fair value of equity instruments designated as at FVTOCI (7,264) 2,162 Less: Income tax effect 1,870 (513) (5,394) 1,649 (ii) Other comprehensive income recognised under the equity method (19) (18) (iii) Others - 1 Items that may be reclassified subsequently to profit or loss: (i) Changes in fair value of debt instruments measured at FVTOCI 21,988 3,790 Less: Amount transferred to profit or loss from other comprehensive income (3,834) (2,713) Less: Income tax effect (4,857) (48) 13,297 1,029 (ii) Credit losses of debt instruments measured at FVTOCI (998) (161) Less: Income tax effect 30 42 (968) (119) (iii) Cash flow hedging reserve: (Losses)/gains during the period (1,031) 1,941 Less: Income tax effect (184) (193) (1,215) 1,748 (iv) Other comprehensive income recognised under the equity method (220) (33) (v) Foreign currency translation reserve (11,893) (1,755) (vi) Others (1,224) (4,210) (7,636) (1,708)
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 64 35. CASH AND CASH EQUIVALENTS 30 June 2026 30 June 2025 Cash on hand 61,791 68,396 Balances with central banks other than restricted deposits 391,892 268,574 Deposits with banks and other financial institutions with original maturity of three months or less 353,338 380,130 Placements with banks and other financial institutions with original maturity of three months or less 147,321 287,226 Reverse repurchase agreements with original maturity of three months or less 919,953 1,427,584 1,874,295 2,431,910 36. 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, asset management plans and asset-backed securities, and 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: 30 June 2026 31 December 2025 Carrying amount Maximum exposure Carrying amount Maximum exposure Investment funds 96,139 96,139 78,122 78,122 Asset management plans and asset-backed securities 82,717 82,717 60,332 60,332 Trust plans 35,067 35,067 38,723 38,723 213,923 213,923 177,177 177,177 The maximum loss exposures in the above investment funds, asset management plans and asset- backed securities, and trust plans are the carrying amounts which are measured at amortised cost, or the fair value of the investments held by the Group as at the reporting date.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 65 36. INTERESTS IN STRUCTURED ENTITIES (CONTINUED) (a) Structured entities sponsored by third party institutions in which the Group holds an interest (continued) 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: 30 June 2026 Financial investments measured at FVTPL Financial investments measured at FVTOCI Financial investments measured at amortised cost Investment funds 95,736 403 - Asset management plans and asset-backed securities 19,488 58,004 5,225 Trust plans 11,306 15,402 8,359 126,530 73,809 13,584 31 December 2025 Financial investments measured at FVTPL Financial investments measured at FVTOCI Financial investments measured at amortised cost Investment funds 77,720 402 - Asset management plans and asset-backed securities 20,221 34,649 5,462 Trust plans 11,465 19,393 7,865 109,406 54,444 13,327
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 66 36. INTERESTS IN STRUCTURED ENTITIES (CONTINUED) (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 30 June 2026 and 31 December 2025, the carrying amounts of the investments in the products issued by these structured entities and fee receivables being recognised were not significant in the financial statements. Management fee 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 4. As at 30 June 2026, the balance of the unconsolidated non -principal-guaranteed wealth management products and investment funds, which are sponsored by the Group, were RMB1,991,439 million (31 December 2025: RMB2,091,240 million) and RMB 2,651,447 million (31 December 2025: RMB2,372,342 million). For the six months ended 30 June 2026, there were no financing transactions through placements and reverse repurchase agreements from the Group with non -principal-guaranteed wealth management products sponsored by the Group (six months ended 30 June 2025 average exposure: Nil). (c) Consolidated structured entities The consolidated structured entities of the Group are primarily the 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 man agement 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 variable returns. 37. TRANSFERRED FINANCIAL ASSETS The Group enters into transactions in the ordinary course of business by which it transfers recognised financial assets to third parties or special purpose 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 in the statement of financial position.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 67 37. TRANSFERRED FINANCIAL ASSETS (CONTINUED) 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 counterpa rties 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. For securities lent out, if the securities increase or decrease in value, the Grou p 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. 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 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 financia l 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. There were no carrying amount of assets that the Group continues to recognise on the consolidated statement of financial position as at 30 June 2026 (31 December 2025: Nil). As at 30 June 2026, the carrying amount of asset -backed securities held by the Group in securitisation transactions that were qualified for derecognition was RMB 1,042 million (31 December 2025: RMB878 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 30 June 2026, there were no transferred credit assets that were not qualified for derecognition of the Group (31 December 2025: Nil).
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 68 38. ASSETS PLEDGED AS SECURITY The Group’s collaterals for liabilities or contingent liabilities include financial assets such as securities and bills, which mainly serve as collaterals for repurchase agreements, securities borrowing, or local statutory requirements. As at 30 June 2026, the par value of the financial assets of the Group pledged as collateral amounted to approximately RMB 4,038,168 million (31 December 2025: approximately RMB3,415,579 million). 39. SHARE APPRECIATION RIGHTS PLAN The Bank’s share appreciation rights plan was approved in 2006, which allows share appreciation rights to be granted to eligible participants including directors, senior management and other key personnel designated by the Board of Directors. The share app reciation 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. 40. COMMITMENTS AND CONTINGENT LIABILITIES (a) Capital commitments At the end of the reporting period, the Group had capital commitments as follows: 30 June 2026 31 December 2025 Contracted but not provided for 17,352 18,941 (b) Credit commitments 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. 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.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 69 40. COMMITMENTS AND CONTINGENT LIABILITIES (CONTINUED) (b) Credit commitments (continued) 30 June 2026 31 December 2025 Bank acceptances 1,213,232 1,169,736 Guarantees issued －Financing letters of guarantees 61,263 97,311 －Non-financing letters of guarantees 728,113 677,886 Sight letters of credit 55,101 49,040 Usance letters of credit 320,842 221,942 Loan commitments －With an original maturity of under one year 29,205 34,731 －With an original maturity of one year or over 429,245 449,366 Undrawn credit card limits 1,155,715 1,155,462 3,992,716 3,855,474 Credit risk-weighted assets of credit commitments 1,380,956 1,335,778 (c) Operating leases The Group acts as a lessor principally through operating leases undertaken by its subsidiary ICBC Leasing. Under irrevocable operating lease contracts, the expected undiscounted minimum lease payments receivable by the Group in the future period amounted to: 30 June 2026 31 December 2025 Within one year 16,381 16,042 Over one year but within two years 14,338 15,697 Over two years but within three years 12,673 13,676 Over three years but within five years 21,606 23,312 Over five years 38,054 40,361 103,052 109,088
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 70 40. COMMITMENTS AND CONTINGENT LIABILITIES (CONTINUED) (d) Legal proceedings and arbitrations The Group is involved in lawsuits and arbitrations during its normal course of operations. As at 30 June 2026, there were a number of legal proceedings and arbitrations outstanding against the Bank and/or its subsidiaries with a total claimed amount of RMB 8,091 million (31 December 2025: RMB7,183 million). 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 any significant impact on the financial posi tion or operations of the Group. (e) Redemption commitments of government bonds and securities underwriting commitments 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 princ ipal 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 30 June 2026 were RMB59,860 million (31 December 2025: RMB58,062 million). Management expects that the redemption obligations of these PRC government bonds by the Bank prior to maturity will not be material. As at 30 June 2026, the Group had no outstanding bond underwriting commitments (31 December 2025: Nil). (f) Designated funds and loans 30 June 2026 31 December 2025 Designated funds 5,158,067 4,821,597 Designated loans 5,157,810 4,821,477 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. 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.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 71 40. COMMITMENTS AND CONTINGENT LIABILITIES (CONTINUED) (g) Fiduciary activities 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 4. Those assets held in a fiduciary capacity are not included in the Group’s consolidated statement of financial position. 41. RELATED PARTY DISCLOSURES In addition to the transactions detailed elsewhere in these financial statements, the Group had the following transactions with related parties during the reporting period: (a) The MOF 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 30 June 2026, the MOF directly owned approximately 31.14% (31 December 2025: approximately 31.14%) of the issued share capital of the Bank. The Group entered into banking transactions with the MOF in its ordinary course of business. Details of the major transactions are as follows: 30 June 2026 31 December 2025 Balances at end of the period/year: The PRC government bonds and the special government bond 5,460,158 4,734,450 Six months ended 30 June 2026 2025 Transactions during the period: Interest income on the government bonds 44,778 35,226 Other related party transactions between the Group and enterprises under the control or joint control of the MOF are disclosed in Note 4 1(i) “Transactions with state -owned entities in the PRC”.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 72 41. RELATED PARTY DISCLOSURES (CONTINUED) (b) Central Huijin Investment Ltd. 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 State Government in accordance with applicable laws, to achieve the goal of preserving and enhancing the value of state -owned financ ial 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 30 June 2026, Huijin directly owned approximately 34.79% (31 December 2025: approximately 34.79%) of the issued share capital of the Bank. As at 30 June 2026, bonds issued by Huijin (“the Huijin Bonds”) held by the Group were of an aggregate face value of RMB 82,223 million (31 December 2025: RMB86,272 million), with terms ranging from two to thirty years and coupon rates ranging from 1.73% to 4.20%. 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. The Group entered into banking transactions with Huijin in the ordinary course of business under normal commercial terms and conditions, the transactions were priced based on market rates. Details of the major transactions are as follows: 30 June 2026 31 December 2025 Balances at end of the period/year: Debt securities purchased 84,014 87,471 Loans and advances to customers - 36,424 Due to customers 300,700 98,405 Six months ended 30 June 2026 2025 Transactions during the period: Interest income on debt securities purchased 1,030 830 Interest income on loans and advances to customers 118 772 Interest expense on amounts due to customers 1,165 163
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 73 41. RELATED PARTY DISCLOSURES (CONTINUED) (b) Central Huijin Investment Ltd. (continued) Huijin holds equity interests in certain other banks and financial institutions under the direction of the State Government. The Group entered into transactions with these banks and financial institutions in the ordinary course of business under normal com mercial terms and conditions, the transactions were priced based on market rates. Management considers that these banks and financial institutions are competitors of the Group. Details of major transactions conducted with these banks and financial institutions are as follows: 30 June 2026 31 December 2025 Balances at end of the period/year: Debt securities purchased 1,213,745 1,023,813 Due from banks and other financial institutions 262,799 377,105 Reverse repurchase agreements 59,206 39,422 Loans and advances to customers 12,297 8,657 Derivative financial assets 5,020 5,880 Due to banks and other financial institutions 565,724 570,766 Repurchase agreements 28,487 16,694 Derivative financial liabilities 4,966 6,529 Due to customers 54,373 41,794 Credit commitments 30,510 29,828 Six months ended 30 June 2026 2025 Transactions during the period: Interest income on debt securities purchased 11,132 9,450 Interest income on amounts due from banks and other financial institutions 2,393 2,090 Interest income on reverse repurchase agreements 14 45 Interest income on loans and advances to customers 128 45 Interest expense on amounts due to banks and other financial institutions 3,661 3,225 Interest expense on repurchase agreements 51 2 Interest expense on amounts due to customers 496 157
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 74 41. RELATED PARTY DISCLOSURES (CONTINUED) (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 30 June 2026, the SSF held approximately 5.35% (31 December 2025: approximately 5.35%) 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 were priced based on market rates. Details of the major transactions are as follows: 30 June 2026 31 December 2025 Balances at end of the period/year: Deposited funds 365,888 376,750 Six months ended 30 June 2026 2025 Transactions during the period: Interest expense 6,825 4,959 (d) Subsidiaries 30 June 2026 31 December 2025 Balances at end of the period/year: Financial investments 38,665 37,601 Due from banks and other financial institutions 406,651 384,587 Reverse repurchase agreements 5,250 5,850 Loans and advances to customers 81,837 85,288 Derivative financial assets 14,163 4,885 Due to banks and other financial institutions 251,352 205,768 Repurchase agreements 17,876 19,324 Derivative financial liabilities 3,222 9,439 Credit commitments 47,001 14,204
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 75 41. RELATED PARTY DISCLOSURES (CONTINUED) (d) Subsidiaries (continued) Six months ended 30 June 2026 2025 Transactions during the period: Interest income on financial investments 904 935 Interest income on amounts due from banks and other financial institutions 1,814 1,525 Interest income on reverse repurchase agreements 0 16 Interest income on loans and advances to customers 1,407 1,402 Interest expense on amounts due to banks and other financial institutions 2,297 2,694 Interest expense on repurchase agreements 20 101 Fee and commission income 2,235 2,146 The major balances and transactions with subsidiaries have been eliminated in the financial statements. (e) Associates and affiliates 30 June 2026 31 December 2025 Balances at end of the period/year: Due from banks and other financial institutions 995 666 Reverse repurchase agreements - 1,843 Loans and advances to customers 10,454 7,135 Derivative financial assets 1,075 2,250 Due to banks and other financial institutions 4,178 3,900 Due to customers 5,828 4,735 Derivative financial liabilities 1,439 1,973 Credit commitments 4,303 7,795
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 76 41. RELATED PARTY DISCLOSURES (CONTINUED) (e) Associates and affiliates (continued) Six months ended 30 June 2026 2025 Transactions during the period: Interest income on amounts due from banks and other financial institutions 12 8 Interest income on reverse repurchase agreements - 73 Interest income on loans and advances to customers 129 115 Interest expense on amounts due to banks and other financial institutions 123 149 Interest expense on amounts due to customers 40 2 Transactions between the Group and the aforementioned parties were conducted in the ordinary course of business under normal commercial terms and conditions and priced based on market rates. (f) Joint ventures and affiliates 30 June 2026 31 December 2025 Balances at end of the period/year: Due to banks and other financial institutions 628 190 Due to customers 146 87 Six months ended 30 June 2026 2025 Transactions during the period: Interest income on loans and advances to customers - 0 Interest expense on amounts due to banks and other financial institutions 2 0 Interest expense on amounts due to customers 0 0 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.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 77 41. RELATED PARTY DISCLOSURES (CONTINUED) (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 is as follows: Six months ended 30 June 2026 2025 In RMB’000 In RMB’000 Salaries and benefits 5,133 5,530 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. The Supervisory Board of t he Bank was formally dissolved in September 2025. The compensation and benefits disclosed in the table above for the period from January to June 2025 include all remuneration received by supervisors serving during the reporting period. For the six months ended 30 June 2026, there were no material transactions and balances with key management personnel individually or in the aggregate ( six months ended 30 June 2025: 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 RMB 0.35 million as at 30 June 2026 (31 December 2025: RMB0.43 million). The Bank’s aggregate balance of loans and credit card overdrafts to the persons who are considered as related parties according to the relevant rules of the NFRA was RMB 141.21 million as at 30 June 2026 (31 December 2025: RMB135.54 million). The transactions between the Group and the aforementioned parties were conducted in the ordinary course of business under normal commercial terms and conditions and priced based on market rates.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 78 41. RELATED PARTY DISCLOSURES (CONTINUED) (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 RMB 2.48 million as at 30 June 2026 (31 December 2025: RMB10.81 million), and bonds issued by the Bank of RMB1,759.88 million as at 30 June 2026 (31 December 2025: RMB698.78 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 reporting period, the Group entered into extensive banking transactions with these state -owned entities including, but not limited to, lending and deposit taking, taking and placing of interbank balances, entrusted lending and the provision of intermediary services, the s ale, 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 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.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 79 41. RELATED PARTY DISCLOSURES (CONTINUED) (j) Proportion of major related party transactions The major balances and transactions with subsidiaries have been eliminated in the financial statements. When calculating the proportion of related party transactions, transactions with the subsidiaries are excluded. 30 June 2026 31 December 2025 Balance Percentage Balance Percentage Financial investments 6,757,917 36.27% 5,845,734 34.57% Due from banks and other financial institutions 263,794 23.95% 377,771 29.89% Reverse repurchase agreements 59,206 5.75% 41,265 7.78% Loans and advances to customers 22,751 0.07% 52,216 0.18% Derivative financial assets 6,095 4.33% 8,130 6.23% Due to banks and other financial institutions 570,530 9.74% 574,856 11.26% Repurchase agreements 28,487 0.94% 16,694 0.66% Derivative financial liabilities 6,405 6.18% 8,502 6.34% Due to customers 726,935 1.86% 521,771 1.40% Credit commitments 34,813 0.87% 37,623 0.98% Six months ended 30 June 2026 2025 Amount Percentage Amount Percentage Interest income 59,734 9.04% 48,654 7.22% Interest expense 12,363 3.87% 8,657 2.40%
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 80 42. SEGMENT INFORMATION (a) Operating segments 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. Corporate 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. Personal banking 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. Treasury operations 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. Others 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. Management monitors the operating results of the Group’s operating segments separately for the purpose of making decisions about resources allocation and performance assessment. Segment information is prepared in conformity with the accounting policies ado pted for preparing and presenting the financial statements of the Group. Transactions between segments mainly represent the provision of funding to and from individual segments. The internal transfer pricing of these transactions is determined with reference to the market rates and ha s 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”.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 81 42. SEGMENT INFORMATION (CONTINUED) (a) Operating segments (continued) 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 resource s. Income taxes are managed on a group basis and are not allocated to operating segments. Six months ended 30 June 2026 Corporate banking Personal banking Treasury operations Others Total External net interest income 196,791 6,853 137,593 - 341,237 Internal net interest income/(expense) (30,293) 131,827 (101,534) - - Net fee and commission income 45,368 23,451 416 - 69,235 Other income, net (i) 4,785 2,114 27,529 1,263 35,691 Operating income 216,651 164,245 64,004 1,263 446,163 Operating expenses (48,108) (52,971) (9,825) (475) (111,379) Impairment (losses)/gains on assets (ii) (61,873) (64,296) (1,750) 163 (127,756) Operating profit 106,670 46,978 52,429 951 207,028 Share of results of associates and joint ventures - - - 2,982 2,982 Profit before taxation 106,670 46,978 52,429 3,933 210,010 Income tax expense (33,535) Profit for the period 176,475 Other segment information: Depreciation and amortisation 5,271 6,180 2,075 63 13,589 Capital expenditure 6,228 7,714 2,549 77 16,568
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 82 42. SEGMENT INFORMATION (CONTINUED) (a) Operating segments (continued) 30 June 2026 Corporate banking Personal banking Treasury operations Others Total Segment assets 22,850,917 9,225,594 24,738,869 142,415 56,957,795 Including: Investments in associates and joint ventures - - - 78,638 78,638 Property and equipment 96,303 123,329 40,508 23,714 283,854 Other non-current assets (iii) 35,255 19,915 7,519 21,838 84,527 Unallocated assets 112,798 Total assets 57,070,593 Segment liabilities 18,451,490 21,972,410 12,145,185 108,866 52,677,951 Unallocated liabilities 36,798 Total liabilities 52,714,749 Other segment information: Credit commitments 2,868,672 1,124,044 - - 3,992,716 (i) Includes net trading income, net gains on financial investments and other net operating income and expense. (ii) Includes credit impairment losses and impairment losses on other assets. (iii) Includes intangible assets, goodwill, long-term deferred expenses, right-of-use assets and other non-current assets.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 83 42. SEGMENT INFORMATION (CONTINUED) (a) Operating segments (continued) Six months ended 30 June 2025 Corporate banking Personal banking Treasury operations Others Total External net interest income/(expense) 182,289 (2,040) 133,327 - 313,576 Internal net interest income/(expense) (32,087) 138,952 (106,865) - - Net fee and commission income 42,917 23,430 673 - 67,020 Other income, net (i) 4,604 1,751 20,781 1,350 28,486 Operating income 197,723 162,093 47,916 1,350 409,082 Operating expenses (43,143) (55,486) (9,061) (880) (108,570) Impairment (losses)/gains on assets (ii) (91,012) (13,838) 220 101 (104,529) Operating profit 63,568 92,769 39,075 571 195,983 Share of results of associates and joint ventures - - - 3,025 3,025 Profit before taxation 63,568 92,769 39,075 3,596 199,008 Income tax expense (30,205) Profit for the period 168,803 Other segment information: Depreciation and amortisation 4,959 6,319 1,710 65 13,053 Capital expenditure 6,986 9,591 2,413 97 19,087
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 84 42. SEGMENT INFORMATION (CONTINUED) (a) Operating segments (continued) 31 December 2025 Corporate banking Personal banking Treasury operations Others Total Segment assets 21,248,066 9,379,843 22,621,480 124,095 53,373,484 Including: Investments in associates and joint ventures - - - 78,313 78,313 Property and equipment 98,818 139,438 35,098 20,482 293,836 Other non-current assets (iii) 37,164 21,477 7,772 20,619 87,032 Unallocated assets 104,289 Total assets 53,477,773 Segment liabilities 17,303,479 21,184,408 10,536,232 151,705 49,175,824 Unallocated liabilities 29,925 Total liabilities 49,205,749 Other segment information: Credit commitments 2,700,037 1,155,437 - - 3,855,474 (i) Includes net trading income, net gains on financial investments and other net operating income and expense. (ii) Includes credit impairment losses and impairment losses on other assets. (iii) Includes intangible assets, goodwill, long-term deferred expenses, right-of-use assets and other non-current assets.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 85 42. SEGMENT INFORMATION (CONTINUED) (b) Geographical information The Group operates principally in Chinese mainland, and also has branches or subsidiaries operating outside Chinese mainland. The distribution of the geographical areas is as follows. Chinese mainland (Head Office and domestic branches) Head Office (“HO”): the HO business divisions (including institutions directly managed by the HO and its offices); Yangtze River Delta: including Shanghai, Jiangsu, Zhejiang, Ningbo and Suzhou; Pearl River Delta: including Guangdong, Shenzhen, Fujian and Xiamen; Bohai Rim: including Beijing, Tianjin, Hebei, Shandong and Qingdao; Central China: including Shanxi, Henan, Hubei, Hunan, Anhui, Jiangxi and Hainan; Western China: including Chongqing, Sichuan, Guizhou, Yunnan, Guangxi, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang, Inner Mongolia and Xizang; and Northeastern China: including Liaoning, Heilongjiang, Jilin and Dalian. Overseas and others Branches located outside Chinese mainland, domestic and overseas subsidiaries, and investments in associates and joint ventures.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 86 42. SEGMENT INFORMATION (CONTINUED) (b) Geographical information (continued) Six months ended 30 June 2026 Chinese mainland (HO and domestic branches) Head Office Yangtze River Delta Pearl River Delta Bohai Rim Central China Western China Northeastern China Overseas and others Eliminations Total External net interest income/(expense) 151,217 47,188 29,906 2,805 37,507 49,847 (2,024) 24,791 - 341,237 Internal net interest income/(expense) (149,335) 22,074 15,178 77,825 13,729 7,543 15,457 (2,471) - - Net fee and commission income 15,936 13,970 7,092 10,574 6,753 5,699 1,174 8,740 (703) 69,235 Other income/(expense), net (i) 18,262 (373) (648) 129 (268) (336) (835) 19,134 626 35,691 Operating income 36,080 82,859 51,528 91,333 57,721 62,753 13,772 50,194 (77) 446,163 Operating expenses (17,427) (16,227) (11,340) (18,836) (14,406) (15,560) (5,735) (11,925) 77 (111,379) Impairment losses on assets (ii) (52,638) (13,300) (16,969) (7,109) (17,278) (16,168) (906) (3,388) - (127,756) Operating profit/(loss) (33,985) 53,332 23,219 65,388 26,037 31,025 7,131 34,881 - 207,028 Share of results of associates and joint ventures - - - - - - - 2,982 - 2,982 Profit/(loss) before taxation (33,985) 53,332 23,219 65,388 26,037 31,025 7,131 37,863 - 210,010 Income tax expense (33,535) Profit for the period 176,475 Other segment information: Depreciation and amortisation 2,283 2,013 1,290 1,836 1,709 1,861 888 1,709 - 13,589 Capital expenditure 640 841 708 886 685 785 231 11,792 - 16,568
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 87 42. SEGMENT INFORMATION (CONTINUED) (b) Geographical information (continued) 30 June 2026 Chinese mainland (HO and domestic branches) Head Office Yangtze River Delta Pearl River Delta Bohai Rim Central China Western China Northeastern China Overseas and others Eliminations Total Assets by geographical areas 7,175,618 15,959,026 9,916,116 8,631,225 6,573,637 6,993,182 1,874,220 5,018,597 (5,183,826) 56,957,795 Including: Investments in associates and joint ventures - - - - - - - 78,638 - 78,638 Property and equipment 10,736 28,455 12,743 17,908 15,460 18,595 10,191 169,766 - 283,854 Other non-current assets (iii) 28,692 6,424 5,095 6,324 7,911 9,297 2,320 18,510 (46) 84,527 Unallocated assets 112,798 Total assets 57,070,593 Liabilities by geographical areas 3,607,890 14,303,389 8,799,044 13,749,804 6,647,233 6,510,738 2,939,485 1,304,194 (5,183,826) 52,677,951 Unallocated liabilities 36,798 Total liabilities 52,714,749 Other segment information: Credit commitments 1,129,200 1,924,144 1,162,787 1,646,410 1,023,351 1,174,571 201,032 1,033,106 (5,301,885) 3,992,716 (i) Includes net trading income, net gains on financial investments and other net operating income and expense. (ii) Includes credit impairment losses and impairment losses on other assets. (iii) Includes intangible assets, goodwill, long-term deferred expenses, right-of-use assets and other non-current assets.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 88 42. SEGMENT INFORMATION (CONTINUED) (b) Geographical information (continued) Six months ended 30 June 2025 Chinese mainland (HO and domestic branches) Head Office Yangtze River Delta Pearl River Delta Bohai Rim Central China Western China Northeastern China Overseas and others Eliminations Total External net interest income/(expense) 145,458 42,300 30,517 (6,175) 34,109 46,799 (1,806) 22,374 - 313,576 Internal net interest income/(expense) (146,885) 21,450 12,061 81,351 14,005 7,000 14,013 (2,995) - - Net fee and commission income 14,934 14,399 6,727 10,467 6,555 5,913 1,168 7,693 (836) 67,020 Other income/(expense), net (i) 15,647 (645) (533) 421 (225) (104) 352 12,789 784 28,486 Operating income 29,154 77,504 48,772 86,064 54,444 59,608 13,727 39,861 (52) 409,082 Operating expenses (15,101) (15,684) (11,099) (18,184) (14,621) (15,677) (5,235) (13,021) 52 (108,570) Impairment losses on assets (ii) (34,122) (12,076) (15,786) (9,452) (15,441) (12,426) (1,371) (3,855) - (104,529) Operating profit/(loss) (20,069) 49,744 21,887 58,428 24,382 31,505 7,121 22,985 - 195,983 Share of results of associates and joint ventures - - - - - - - 3,025 - 3,025 Profit/(loss) before taxation (20,069) 49,744 21,887 58,428 24,382 31,505 7,121 26,010 - 199,008 Income tax expense (30,205) Profit for the period 168,803 Other segment information: Depreciation and amortisation 2,036 2,035 1,327 1,898 1,763 1,981 685 1,328 - 13,053 Capital expenditure 1,434 1,161 578 937 1,138 875 323 12,641 - 19,087
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 89 42. SEGMENT INFORMATION (CONTINUED) (b) Geographical information (continued) 31 December 2025 Chinese mainland (HO and domestic branches) Head Office Yangtze River Delta Pearl River Delta Bohai Rim Central China Western China Northeastern China Overseas and others Eliminations Total Assets by geographical areas 6,422,934 14,825,133 9,125,421 8,087,272 6,184,419 6,909,241 1,836,510 4,870,964 (4,888,410) 53,373,484 Including: Investments in associates and joint ventures - - - - - - - 78,313 - 78,313 Property and equipment 11,840 29,401 13,144 18,661 16,183 19,340 10,758 174,509 - 293,836 Other non-current assets (iii) 29,410 6,712 5,334 6,552 8,082 9,917 2,414 18,611 - 87,032 Unallocated assets 104,289 Total assets 53,477,773 Liabilities by geographical areas 3,036,925 13,365,002 8,150,242 12,516,422 6,262,941 6,337,642 2,859,459 1,535,601 (4,888,410) 49,175,824 Unallocated liabilities 29,925 Total liabilities 49,205,749 Other segment information: Credit commitments 1,162,911 1,890,024 1,112,332 1,529,793 931,861 1,088,873 173,839 945,984 (4,980,143) 3,855,474 (i) Includes net trading income, net gains on financial investments and other net operating income and expense. (ii) Includes credit impairment losses and impairment losses on other assets. (iii) Includes intangible assets, goodwill, long-term deferred expenses, right-of-use assets and other non-current assets.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 90 43. FINANCIAL RISK MANAGEMENT The Bank’s board of directors (the "Board") bears the ultimate responsibility for comprehensive risk management and the Bank’s Risk Management Committee is responsible for continuously oversees the Bank's risk management system. The President supervises risk management and reports directly to the Board. He chairs two management committees including the Risk Management and Internal Control 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 and make decisions. The Group has clearly defined the roles of each department in monitoring financial risks within the Group. The Credit 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 co nsolidated reports on credit risk, market risk and operational risk and reporting directly to the Chief Risk Officer. 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 management of the branches. (a) Credit risk Definition and scope 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 ris e to credit risk. The Group’s credit risk is mainly attributable to its credit assets, due from banks and other financial institutions and financial investments. The Group is also exposed to credit risk in other areas. The derivative financial assets recorded in the consolidated statement of financial position also reflects the credit risk associated with derivative financial instruments. 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.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 91 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Credit risk (continued) Credit risk assessment method Staging of financial instruments The Group classifies financial instruments into following three stages and makes provisions for expected credit loss accordingly, depending on whether credit risk on that financial instrument has increased significantly since initial recognition and whethe r the assets have been credit - impaired. Stage 1: For a financial instrument of which the credit risk has not significantly increased since initial recognition, the amount equal to 12 -month expected credit losses is recognised as loss allowance. Stage 2: For a financial instrument with a significant increase in credit risk since initial recognition but not considered to be credit -impaired, the amount equal to lifetime expected credit losses is recognised as loss allowance. Stage 3: For a financial instrument considered to be credit -impaired as at end of the reporting period, the amount equal to lifetime expected credit losses is recognised as loss allowance. Classification of credit risk exposures The Group classifies credit risk exposures of expected credit losses with sufficient information by considering factors such as internal ratings -based (“IRB”) segmentation, product types, customer types, industry risk characteristics, and response to macro-economic changes. Significant increase in credit risk The assessment of significant increase in credit risk 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 staging of 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 behaviour and willingness. 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 r isk of a financial instrument has increased significantly since initial recognition, the Group considers factors indicating whether the probability of default has risen above threshold, the background for financing have been authenticated, the financial instrument has been past due for more than 30 days, the loan has been modified in payment term of principal or interest, any significant negative issue has been arisen and any other indicators of increase in risk have been noticed.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 92 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Credit risk (continued) Definition of default The Group defines a corporate borrower as in default when it meets one or more of the following criteria: (i) The principal or interest of any credit business is past due by more than 90 days (not inclusive) to the Group; (ii) 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) The corporate borrower has the matters referred to in (i) or (ii) above with other financial institutions. 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: (i) The principal or interest of loan is past due by more than 90 days (not inclusive); (ii) The retail business 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. Impairment assessment A financial asset is generally considered to be credit-impaired if: －it has been overdue by more than 90 days (not inclusive); －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 is probable that the borrower will be insolvent or carry out other financial restructurings; －due to serious financial difficulties, the financial asset cannot continue to be traded in an active market; and －there is other objective evidence that indicate the financial asset is impaired.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 93 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Credit risk (continued) Parameters, assumptions and estimation techniques Loss allowance 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. ECL for loans and advances to customers, other than those corporate loans and advance to customers which are credit -impaired, is measured using the risk parametric modelling method. The key parameters include Probability o f Default (“PD”), Loss Given Default (“LGD”), and Exposure at Default (“EAD”), considering the time value of money. 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 IRB 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. 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 collateral, taking the forward-looking adjustments into account. 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. 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. The calculation of impairment loss on credit-impaired corporate loans and advance to customers applies the 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 effective interest rate. The allowance for impairment loss is deducted in the carrying amount. The impairment lo ss is recognised in the consolidated statement of profit or loss. In determining allowances, the following factors are considered: －the sustainability of the borrower’s business plan; －the borrower’s ability to improve performance when a financial difficulty arises; －the estimated recoverable cash flows from projects and liquidation; －the availability of other financial support and the realisable value of collateral; and －the timing of the expected cash flows.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 94 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Credit risk (continued) Parameters, assumptions and estimation techniques (continued) 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 per iod unless there are other unforeseen circumstances. Forward-looking information contained in ECL The assessment of significant increase in credit risk and the calculation of ECL incorporate forward-looking information. The Group has performed historical data analysis and identified Gross Domestic Product (“GDP”), Consumer Price Index (“CPI”), Broad Mo ney Supply (“M2”), Consumer Confidence Index 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 understa nd the correlations among the historical changes of the economic variables, PD and LGD. The impact of these economic variables on the PD and LGD varies according to different types of business. Forecasts of these economic variables are carried out at least quarterly by the Group to provide the best estimate view of the economy over the next year. 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 optimistic and pessimistic scenar ios are of comparable weightings, of which, the weighting of neutral scenario is slightly higher than that of the other two scenarios. The weightings of the scenarios are consistent with those as at 31 December 2025. As at 30 June 2026, the Group has taken into account different macro -economic scenarios, combined with the impact of factors such as effect of prior period base data 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 under neutral scenario is about 5%, and forecasts under optimistic scenario and pessimistic scenario are formed by floating up and down a certain level respectively on the basis of the forecast under neutral scenario.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 95 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Credit risk (continued) Financial assets contract modification 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 maximising the recovery of loan. Such modifications include restructuring the loan to provide extended payment term arrangements, payment holidays. Restructuring policies and practices are based on indicators or criteria which, in the judgement of management, indicate that payment will mo st likely continue, and these policies and practices are reviewed regularly. Such restructures are especially common for medium-term and long-term loans. The following table includes carrying amount of rescheduled loans and advances to customers: 30 June 2026 31 December 2025 Rescheduled loans and advances to customers 129,495 156,027 Including: Impaired loans and advances to customers 58,236 53,897
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 96 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Credit risk (continued) Collateral and other credit enhancements The amount and type of collateral required depend 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. Reverse repurchase business is mainly collateralised by bills and marketable securities. As part of certain reverse repurchase agreements, the Group has received collateral 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 30 June 2026, the gross carrying amount of corporate loans and discounted bills amounted to RMB 22,991,690 million (31 December 2025: RMB21,503,478 million), of which credit exposure covered by collateral amounted to RMB 5,651,207 million (31 December 2025: RMB5,448,852 million). Personal loans are mainly collateralised by residential properties. As at 30 June 2026, the gross carrying amount of personal loans amounted to RMB 9,000,436 million (31 December 2025: RMB9,002,636 million), of which credit exposure covered by collateral amounted to RMB7,391,857 million (31 December 2025: RMB7,449,218 million). 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 agencies 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 reali sation 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. The Group monitors the market value of the collateral and when needed, require additional collateral according to agreements. The Group disposes of repossessed assets in an orderly manner.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 97 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Credit risk (continued) Collateral and other credit enhancements (continued) (i) Maximum exposure to credit risk without taking into account of any collateral and other credit enhancements As at the end of the reporting period, the maximum credit risk exposure of the Group without taking into account any collateral and other credit enhancements is set out below: 30 June 2026 31 December 2025 Balances with central banks 3,455,961 3,601,690 Due from banks and other financial institutions 1,101,502 1,264,019 Derivative financial assets 140,823 130,414 Reverse repurchase agreements 1,029,778 530,737 Loans and advances to customers 31,162,520 29,712,359 Financial investments Financial investments measured at FVTPL 684,555 635,507 Financial investments measured at FVTOCI 4,065,689 3,725,614 Financial investments measured at amortised cost 13,456,152 12,140,183 Others 164,864 140,716 55,261,844 51,881,239 Credit commitments 3,992,716 3,855,474 Maximum credit risk exposure 59,254,560 55,736,713
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 98 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Credit risk (continued) Collateral and other credit enhancements (continued) (ii) Risk concentrations 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. (1) Loans and advances to customers By geographical distribution The composition of the Group’s gross loans and advances to customers (excluding accrued interest) by geographical distribution is as follows: 30 June 2026 31 December 2025 Amount Percentage Amount Percentage Head Office 785,984 2.46% 849,602 2.79% Yangtze River Delta 7,132,786 22.29% 6,756,827 22.15% Western China 5,957,362 18.62% 5,688,006 18.64% Bohai Rim 5,390,545 16.85% 5,109,713 16.75% Central China 5,181,270 16.20% 4,853,907 15.91% Pearl River Delta 4,820,540 15.07% 4,613,631 15.12% Northeastern China 1,199,708 3.75% 1,155,520 3.79% Overseas and others 1,523,931 4.76% 1,478,908 4.85% Total 31,992,126 100.00% 30,506,114 100.00%
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 99 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Credit risk (continued) Collateral and other credit enhancements (continued) (ii) Risk concentrations (continued) (1) Loans and advances to customers (continued) By industry The composition of the Group’s gross loans and advances to customers (excluding accrued interest) by industry is as follows: 30 June 2026 31 December 2025 Transportation, storage and postal services 4,294,929 4,207,325 Manufacturing 3,223,705 2,851,934 Leasing and commercial services 3,155,199 2,882,603 Water, environment and public utility management 2,048,438 1,924,544 Production and supply of electricity, heating, gas and water 1,960,506 1,974,823 Wholesale and retail 1,134,414 1,016,690 Real estate 1,079,309 1,087,640 Finance 819,400 813,247 Construction 655,561 558,476 Science, education, culture and sanitation 536,143 483,211 Mining 495,569 456,318 Others 688,970 584,860 Subtotal for corporate loans 20,092,143 18,841,671 Personal mortgage and business loans 7,794,640 7,806,087 Others 1,205,796 1,196,549 Subtotal for personal loans 9,000,436 9,002,636 Discounted bills 2,899,547 2,661,807 Total for loans and advances to customers 31,992,126 30,506,114
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 100 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Credit risk (continued) Collateral and other credit enhancements (continued) (ii) Risk concentrations (continued) (1) Loans and advances to customers (continued) By collateral The composition of the Group’s gross loans and advances to customers (excluding accrued interest) by collateral is as follows: 30 June 2026 31 December 2025 Unsecured loans 12,826,713 12,170,570 Guaranteed loans 2,793,747 2,753,819 Loans secured by mortgages 10,894,058 10,803,253 Pledged loans 5,477,608 4,778,472 Total 31,992,126 30,506,114 Overdue loans The composition of the Group’s gross overdue loans (excluding accrued interest) by collateral is as follows: 30 June 2026 Overdue for 1 to 90 days Overdue for 91 days to 1 year Overdue for 1 to 3 years Overdue for over 3 years Total Unsecured loans 40,588 47,755 50,353 10,140 148,836 Guaranteed loans 20,298 18,201 20,200 10,950 69,649 Loans secured by mortgages 99,782 80,259 77,035 25,698 282,774 Pledged loans 3,389 569 1,602 5,804 11,364 Total 164,057 146,784 149,190 52,592 512,623 31 December 2025 Overdue for 1 to 90 days Overdue for 91 days to 1 year Overdue for 1 to 3 years Overdue for over 3 years Total Unsecured loans 26,466 45,357 41,392 13,139 126,354 Guaranteed loans 13,004 15,023 24,451 11,257 63,735 Loans secured by mortgages 89,921 75,437 78,213 22,367 265,938 Pledged loans 916 1,086 1,031 3,675 6,708 Total 130,307 136,903 145,087 50,438 462,735
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 101 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Credit risk (continued) Collateral and other credit enhancements (continued) (ii) Risk concentrations (continued) (2) Debt securities investments By issuers The following tables present an analysis of the Group’s debt securities investments (excluding accrued interest) by types of issuers and investments: 30 June 2026 Financial investments measured at FVTPL Financial investments measured at FVTOCI Financial investments measured at amortised cost Total Governments and central banks 259,039 1,401,427 11,939,412 13,599,878 Policy banks 28,571 1,244,897 397,192 1,670,660 Banks and other financial institutions 240,479 524,751 897,338 1,662,568 Corporate entities 128,090 851,981 98,375 1,078,446 656,179 4,023,056 13,332,317 18,011,552 31 December 2025 Financial investments measured at FVTPL Financial investments measured at FVTOCI Financial investments measured at amortised cost Total Governments and central banks 285,792 1,529,473 10,750,122 12,565,387 Policy banks 47,495 913,419 409,316 1,370,230 Banks and other financial institutions 186,135 496,640 777,216 1,459,991 Corporate entities 86,816 746,110 84,175 917,101 606,238 3,685,642 12,020,829 16,312,709
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 102 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Credit risk (continued) Collateral and other credit enhancements (continued) (ii) Risk concentrations (continued) (2) Debt securities investments (continued) By rating 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 in the countries where the issuers of debt securities are located. The ca rrying amounts of debt securities investments (excluding accrued interest) analysed by rating as at the end of the reporting period are as follows: 30 June 2026 Unrated AAA AA A Below A Total Governments and central banks 5,430,325 7,822,804 148,661 134,670 63,418 13,599,878 Policy banks 1,392,275 157,192 23,062 95,897 2,234 1,670,660 Banks and other financial institutions 1,009,438 330,708 82,242 196,347 43,833 1,662,568 Corporate entities 495,861 384,079 46,986 113,616 37,904 1,078,446 8,327,899 8,694,783 300,951 540,530 147,389 18,011,552 31 December 2025 Unrated AAA AA A Below A Total Governments and central banks 4,718,801 7,539,925 147,224 100,709 58,728 12,565,387 Policy banks 1,155,623 123,136 17,709 73,348 414 1,370,230 Banks and other financial institutions 703,794 398,231 66,444 205,294 86,228 1,459,991 Corporate entities 370,009 366,895 36,759 104,135 39,303 917,101 6,948,227 8,428,187 268,136 483,486 184,673 16,312,709
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 103 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Credit risk (continued) Collateral and other credit enhancements (continued) (iii) Three-stage analysis of financial instruments’ risk exposure The Group’s credit risk stages of financial instruments are as follows: 30 June 2026 Gross carrying amount Provision for ECL Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Financial assets measured at amortised cost: Cash and balances with central banks 3,517,752 - - 3,517,752 - - - - Due from banks and other financial institutions 1,102,967 - 148 1,103,115 (1,465) - (148) (1,613) Reverse repurchase agreements 1,010,623 - - 1,010,623 (16) - - (16) Loans and advances to customers 27,931,779 851,133 411,632 29,194,544 (411,963) (147,630) (335,960) (895,553) Financial investments 13,491,233 1,600 3,137 13,495,970 (36,360) (761) (2,697) (39,818) Total 47,054,354 852,733 414,917 48,322,004 (449,804) (148,391) (338,805) (937,000) Financial assets measured at FVTOCI: Loans and advances to customers 2,855,297 3,216 186 2,858,699 (210) (72) (213) (495) Financial investments 4,060,955 4,461 273 4,065,689 (4,261) (233) (3,186) (7,680) Total 6,916,252 7,677 459 6,924,388 (4,471) (305) (3,399) (8,175)
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 104 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (a) Credit risk (continued) Collateral and other credit enhancements (continued) (iii) Three-stage analysis of financial instruments’ risk exposure (continued) The Group’s credit risk stages of financial instruments are as follows: (continued) 31 December 2025 Gross carrying amount Provision for ECL Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Financial assets measured at amortised cost Cash and balances with central banks 3,674,558 - - 3,674,558 - - - - Due from banks and other financial institutions 1,266,605 - 152 1,266,757 (2,586) - (152) (2,738) Reverse repurchase agreements 512,884 - - 512,884 (32) - - (32) Loans and advances to customers 26,630,931 871,568 398,832 27,901,331 (349,667) (166,682) (335,401) (851,750) Financial investments 12,171,192 2,055 3,139 12,176,386 (33,199) (305) (2,699) (36,203) Total 44,256,170 873,623 402,123 45,531,916 (385,484) (166,987) (338,252) (890,723) Financial assets measured at FVTOCI Loans and advances to customers 2,652,505 2,903 181 2,655,589 (242) (136) (146) (524) Financial investments 3,720,566 4,797 251 3,725,614 (4,844) (384) (3,368) (8,596) Total 6,373,071 7,700 432 6,381,203 (5,086) (520) (3,514) (9,120) As at 30 June 2026 and 31 December 2025, credit risk exposures of credit commitments were mainly classified in Stage 1.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 105 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Liquidity risk Liquidity risk is the risk that funds will not be sufficient or 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. The Group manages its liquidity risk through the Asset and Liability Management Department and aims at: －optimising the structure of assets and liabilities; －maintaining the stability of the deposit base; －projecting cash flows and evaluating the level of current assets; and －maintaining an efficient internal fund transfer mechanism to ensure sufficient liquidity at branch level.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 106 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Liquidity risk (continued) (i) Maturity analysis of assets and liabilities The tables below summarise the maturity profile of the Group’s assets and liabilities. The actual remaining maturity of the Group’s 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. 30 June 2026 Overdue/ repayable on demand Less than one month One to three months Three months to one year One to five years Over five years Undated (iii) Total Assets: Cash and balances with central banks 749,082 484 1,881 7,447 2,788 - 2,756,070 3,517,752 Due from banks and other financial institutions (i) 370,331 1,044,163 234,389 451,467 30,196 734 - 2,131,280 Derivative financial assets - 38,868 29,149 54,564 15,853 2,389 - 140,823 Loans and advances to customers 85,050 1,305,712 2,124,199 7,707,843 5,581,380 14,221,898 136,438 31,162,520 Financial investments Financial investments measured at FVTPL 111,724 18,797 78,941 286,645 228,795 150,766 143,984 1,019,652 Financial investments measured at FVTOCI - 74,761 259,956 628,192 2,102,204 1,000,366 91,485 4,156,964 Financial investments measured at amortised cost - 309,319 405,868 1,434,578 5,361,332 5,944,616 439 13,456,152 Investments in associates and joint ventures - - - - - - 78,638 78,638 Property and equipment - - - - - - 283,854 283,854 Others 516,268 314,583 43,725 81,457 16,731 32,459 117,735 1,122,958 Total assets 1,832,455 3,106,687 3,178,108 10,652,193 13,339,279 21,353,228 3,608,643 57,070,593
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 107 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Liquidity risk (continued) (i) Maturity analysis of assets and liabilities (continued) 30 June 2026 Overdue/ repayable on demand Less than one month One to three months Three months to one year One to five years Over five years Undated (iii) Total Liabilities: Due to central banks - 7,680 21,694 146,052 - - - 175,426 Due to banks and other financial institutions (ii) 3,014,745 1,712,244 1,248,182 2,852,959 67,363 873 - 8,896,366 Financial liabilities measured at FVTPL 239,542 1,740 218 5,447 2,328 639 - 249,914 Derivative financial liabilities - 31,363 25,754 34,536 10,553 1,385 - 103,591 Certificates of deposit - 49,433 121,833 246,262 103,117 - - 520,645 Due to customers 15,046,059 2,293,724 2,630,986 10,054,768 9,122,644 25,084 - 39,173,265 Debt securities issued 135 103,274 148,455 1,233,361 239,766 826,709 - 2,551,700 Others - 518,490 114,917 112,544 120,432 177,459 - 1,043,842 Total liabilities 18,300,481 4,717,948 4,312,039 14,685,929 9,666,203 1,032,149 - 52,714,749 Net liquidity gap (16,468,026) (1,611,261) (1,133,931) (4,033,736) 3,673,076 20,321,079 3,608,643 4,355,844 (i) Includes reverse repurchase agreements. (ii) Includes repurchase agreements. (iii) Undated loans and advances to customers and financial investments are impaired or not impaired but overdue for more than one month.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 108 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Liquidity risk (continued) (i) Maturity analysis of assets and liabilities (continued) 31 December 2025 Overdue/ repayable on demand Less than one month One to three months Three months to one year One to five years Over five years Undated (iii) Total Assets: Cash and balances with central banks 997,661 2,222 2,978 5,050 2,858 - 2,663,789 3,674,558 Due from banks and other financial institutions (i) 310,734 671,040 275,882 492,675 44,425 - - 1,794,756 Derivative financial assets - 31,145 38,422 46,471 11,871 2,505 - 130,414 Loans and advances to customers 56,715 1,408,029 1,834,539 7,069,964 5,133,915 14,089,891 119,306 29,712,359 Financial investments Financial investments measured at FVTPL 126,951 19,298 79,656 207,872 190,423 182,374 137,379 943,953 Financial investments measured at FVTOCI - 197,770 161,923 744,274 1,720,458 900,993 97,861 3,823,279 Financial investments measured at amortised cost - 224,505 528,617 1,339,672 4,756,145 5,290,794 450 12,140,183 Investments in associates and joint ventures - - - - - - 78,313 78,313 Property and equipment - - - - - - 293,836 293,836 Others 283,207 302,189 50,067 87,116 17,024 26,556 119,963 886,122 Total assets 1,775,268 2,856,198 2,972,084 9,993,094 11,877,119 20,493,113 3,510,897 53,477,773
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 109 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Liquidity risk (continued) (i) Maturity analysis of assets and liabilities (continued) 31 December 2025 Overdue/ repayable on demand Less than one month One to three months Three months to one year One to five years Over five years Undated (iii) Total Liabilities: Due to central banks - 14,144 41,861 120,788 - - - 176,793 Due to banks and other financial institutions (ii) 2,678,422 1,132,835 1,700,075 2,075,384 50,953 1,954 - 7,639,623 Financial liabilities measured at FVTPL 138,308 5,051 1,962 2,726 1,819 330 - 150,196 Derivative financial liabilities - 35,306 33,853 52,761 10,571 1,591 - 134,082 Certificates of deposit - 61,909 117,830 241,530 81,324 - - 502,593 Due to customers 14,936,085 2,797,021 3,139,256 7,786,751 8,615,322 37,343 - 37,311,778 Debt securities issued - 158,924 311,476 816,483 195,163 734,761 - 2,216,807 Others - 537,726 150,347 101,818 115,453 168,533 - 1,073,877 Total liabilities 17,752,815 4,742,916 5,496,660 11,198,241 9,070,605 944,512 - 49,205,749 Net liquidity gap (15,977,547) (1,886,718) (2,524,576) (1,205,147) 2,806,514 19,548,601 3,510,897 4,272,024 (i) Includes reverse repurchase agreements. (ii) Includes repurchase agreements. (iii) Undated loans and advances to customers and financial investments are impaired or not impaired but overdue for more than one month.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 110 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Liquidity risk (continued) (ii) Maturity analysis of undiscounted contractual cash flows 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 f ollowing analysis. For example, demand deposits from customers are expected to m aintain a stable or increasing balance although they have been classified as repayable on demand in the following tables. 30 June 2026 Overdue/ repayable on demand Less than one month One to three months Three months to one year One to five years Over five years Undated (iv) Total Non-derivative cash flows: Financial assets: Cash and balances with central banks 749,082 493 1,884 7,623 2,846 - 2,756,070 3,517,998 Due from banks and other financial institutions (i) 370,631 1,045,593 236,569 464,160 39,489 837 - 2,157,279 Loans and advances to customers (ii) 86,782 1,332,016 2,167,663 7,937,956 6,093,233 16,478,188 473,618 34,569,456 Financial investments Financial investments measured at FVTPL 111,724 19,022 79,740 293,214 247,119 165,183 143,984 1,059,986 Financial investments measured at FVTOCI - 75,550 265,187 678,528 2,308,319 1,201,694 91,485 4,620,763 Financial investments measured at amortised cost - 311,063 423,531 1,623,177 6,290,898 7,080,711 439 15,729,819 Others 512,448 313,437 28,819 66,735 12,671 4,856 - 938,966 1,830,667 3,097,174 3,203,393 11,071,393 14,994,575 24,931,469 3,465,596 62,594,267
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 111 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Liquidity risk (continued) (ii) Maturity analysis of undiscounted contractual cash flows (continued) 30 June 2026 Overdue/ repayable on demand Less than one month One to three months Three months to one year One to five years Over five years Undated (iv) Total Financial liabilities: Due to central banks - 7,785 21,905 147,016 - - - 176,706 Due to banks and other financial institutions (iii) 3,014,745 1,716,267 1,256,110 2,886,574 75,614 1,895 - 8,951,205 Financial liabilities measured at FVTPL 239,542 1,897 290 5,897 2,710 722 - 251,058 Certificates of deposit - 49,481 122,512 249,866 107,368 - - 529,227 Due to customers 15,047,518 2,295,413 2,638,626 10,155,341 9,561,940 27,170 - 39,726,008 Debt securities issued 135 104,476 149,806 1,261,695 339,810 907,680 - 2,763,602 Others - 510,505 13,628 13,062 15,185 2,907 - 555,287 18,301,940 4,685,824 4,202,877 14,719,451 10,102,627 940,374 - 52,953,093
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 112 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Liquidity risk (continued) (ii) Maturity analysis of undiscounted contractual cash flows (continued) 30 June 2026 Overdue/ repayable on demand Less than one month One to three months Three months to one year One to five years Over five years Undated (iv) Total Derivative cash flows: Derivative financial instruments settled on net basis - (1,740) 265 226 1,414 254 - 419 Derivative financial instruments settled on gross basis Including: Cash inflow - 3,699,966 1,823,107 2,579,151 564,193 42,550 - 8,708,967 Cash outflow - (3,703,722) (1,775,117) (2,562,626) (560,129) (42,484) - (8,644,078) - (3,756) 47,990 16,525 4,064 66 - 64,889 (i) Includes reverse repurchase agreements. (ii) The maturity profile of the rescheduled loans’ undiscounted contractual cash flows is determined according to the negotiated terms. (iii) Includes repurchase agreements. (iv) Undated loans and advances to customers and financial investments are impaired or not impaired but overdue for more than one month.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 113 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Liquidity risk (continued) (ii) Maturity analysis of undiscounted contractual cash flows (continued) 31 December 2025 Overdue/ repayable on demand Less than one month One to three months Three months to one year One to five years Over five years Undated (iv) Total Non-derivative cash flows: Financial assets: Cash and balances with central banks 997,661 2,228 2,993 5,193 2,917 - 2,663,789 3,674,781 Due from banks and other financial institutions (i) 310,807 673,569 279,272 505,596 56,386 - - 1,825,630 Loans and advances to customers (ii) 57,845 1,435,718 1,871,886 7,279,561 5,623,394 16,420,497 455,802 33,144,703 Financial investments Financial investments measured at FVTPL 126,951 19,364 80,228 214,780 213,329 201,720 137,379 993,751 Financial investments measured at FVTOCI - 198,804 165,867 785,959 1,889,864 1,089,276 97,861 4,227,631 Financial investments measured at amortised cost - 226,061 543,832 1,519,949 5,632,735 6,409,514 3,020 14,335,111 Others 279,690 341,197 33,290 73,985 13,634 4,778 - 746,574 1,772,954 2,896,941 2,977,368 10,385,023 13,432,259 24,125,785 3,357,851 58,948,181
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 114 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Liquidity risk (continued) (ii) Maturity analysis of undiscounted contractual cash flows (continued) 31 December 2025 Overdue/ repayable on demand Less than one month One to three months Three months to one year One to five years Over five years Undated (iv) Total Financial liabilities: Due to central banks - 14,254 42,080 121,777 - - - 178,111 Due to banks and other financial institutions (iii) 2,678,422 1,142,563 1,720,256 2,104,974 59,921 3,736 - 7,709,872 Financial liabilities measured at FVTPL 138,308 5,317 2,010 2,841 2,028 373 - 150,877 Certificates of deposit - 62,121 118,419 246,243 84,905 - - 511,688 Due to customers 14,937,484 2,798,865 3,149,229 7,877,497 9,036,525 40,428 - 37,840,028 Debt securities issued - 159,314 313,056 838,341 295,794 811,690 - 2,418,195 Others - 529,379 13,349 13,926 16,762 3,430 - 576,846 17,754,214 4,711,813 5,358,399 11,205,599 9,495,935 859,657 - 49,385,617
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 115 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Liquidity risk (continued) (ii) Maturity analysis of undiscounted contractual cash flows (continued) 31 December 2025 Overdue/ repayable on demand Less than one month One to three months Three months to one year One to five years Over five years Undated (iv) Total Derivative cash flows: Derivative financial instruments settled on net basis - (774) 23 464 602 84 - 399 Derivative financial instruments settled on gross basis Including: Cash inflow - 3,785,495 3,623,839 5,679,299 526,430 42,318 - 13,657,381 Cash outflow - (3,813,240) (3,601,147) (5,680,757) (529,203) (42,437) - (13,666,784) - (27,745) 22,692 (1,458) (2,773) (119) - (9,403) (i) Includes reverse repurchase agreements. (ii) The maturity profile of the rescheduled loans’ undiscounted contractual cash flows is determined according to the negotiated terms. (iii) Includes repurchase agreements. (iv) Undated loans and advances to customers and financial investments are impaired or not impaired but overdue for more than one month.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 116 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (b) Liquidity risk (continued) (iii) Analysis of credit commitments by contractual expiry date Management does not expect all of the commitments to be drawn down before the expiry of the commitments. 30 June 2026 Repayable on demand Less than one month One to three months Three months to one year One to five years Over five years Total Credit commitments 1,292,111 227,552 455,669 1,177,563 697,935 141,886 3,992,716 31 December 2025 Repayable on demand Less than one month One to three months Three months to one year One to five years Over five years Total Credit commitments 1,342,234 252,229 483,272 1,023,864 577,330 176,545 3,855,474 (c) Market risk 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. The market risk disclosed in this note excludes the interest rate risk in the banking book. For analysis of the interest rate risk in the banking book, please refer to Note 43(d). The market risk in the Group ’s trading book primarily arises from the exposures to exchange rate contracts, interest rate contracts and commodity derivatives held in the trading book for market-making purposes or on behalf of customers. 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 foreign exchange exposures arising from currency structural imbalance between foreign c urrency assets and liabilities, and off-balance sheet foreign exchange exposures arising from currency derivative transactions. The Group considers the market risk arising from stock price fluctuations in respect of its investment portfolios to be immaterial. Sensitivity 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 Value-at-Risk (VaR) analysis by risk type of the Group’s trading portfolios and a sensitivity analysis based on the Group’s currency risk exposure.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 117 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (c) Market risk (continued) (i) Trading Book (VaR) VaR is a measure index 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 method to calculate and monitor the VaRs of trading portfolios with 250 days’ historical market data (with a 99% confidence level, and one -day holding period) on a daily basis. A summary of VaRs of trading book by risk type is as follows: Six months ended 30 June 2026 End of period Average Maximum Minimum Interest rate risk 86 115 172 81 Currency risk 196 229 464 155 Commodity risk 33 44 61 29 Total portfolio VaR 186 252 464 162 Six months ended 30 June 2025 End of period Average Maximum Minimum Interest rate risk 303 359 475 176 Currency risk 404 329 466 173 Commodity risk 26 24 28 22 Total portfolio VaR 459 457 572 355 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 VaR. 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: (1) VaR does not reflect liquidity risk. In the VaR model, a one -day holding period assumes that it is possible to hedge or dispose of positions within that period without restriction, the price of the financial instruments will fluctuate in the specified rang e, and the correlation between these market prices will remain basically 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 hedge or dispose of all positions fully; (2) 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 (3) 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.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 118 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (c) Market risk (continued) (ii) Currency risk 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 pe gged 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, commissioned fo reign exchange dealings for clients and overseas investments. The Group manages its currency risk exposure through various methods, including limit management and risk hedging to hedge currency risk, and performs currency risk sensitivity analysis and stress testing regularly. The tables below indicate a sensitivity analysis of exchange rate changes of the main foreign currencies to which the Group had significant on - and off -balance sheet exposure on its monetary assets and liabilities and its estimated future cash flows. The a nalysis 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. The impact on equity only includes the impact on other comprehensive income. 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, has not incorporated actions that would be taken by the Group to mitigate the adverse impact of this currency risk. Effect on profit before taxation Effect on equity Currency Change in exchange rate 30 June 2026 31 December 2025 30 June 2026 31 December 2025 USD -1% (316) (63) (577) (575) HKD -1% 572 460 (1,529) (1,552)
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 119 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (c) Market risk (continued) (ii) Currency risk (continued) A breakdown of the assets and liabilities analysed by currency is as follows: 30 June 2026 RMB USD (in RMB equivalent) HKD (in RMB equivalent) Other (in RMB equivalent) Total (in RMB equivalent) Assets: Cash and balances with central banks 3,210,448 170,214 4,944 132,146 3,517,752 Due from banks and other financial institutions (i) 1,456,549 418,809 39,665 216,257 2,131,280 Derivative financial assets 64,882 58,067 327 17,547 140,823 Loans and advances to customers 29,797,929 700,058 278,964 385,569 31,162,520 Financial investments Financial investments measured at FVTPL 955,822 35,663 8,689 19,478 1,019,652 Financial investments measured at FVTOCI 3,432,661 509,642 37,031 177,630 4,156,964 Financial investments measured at amortised cost 13,006,404 230,511 56,830 162,407 13,456,152 Investments in associates and joint ventures 46,875 755 162 30,846 78,638 Property and equipment 131,319 146,777 3,698 2,060 283,854 Others 479,246 140,982 6,784 495,946 1,122,958 Total assets 52,582,135 2,411,478 437,094 1,639,886 57,070,593 Liabilities: Due to central banks 175,426 - - - 175,426 Due to banks and other financial institutions (ii) 8,097,444 530,234 56,944 211,744 8,896,366 Financial liabilities measured at FVTPL 15,813 1,541 1 232,559 249,914 Derivative financial liabilities 47,126 42,697 2,699 11,069 103,591 Certificates of deposit 206,918 186,859 88,074 38,794 520,645 Due to customers 37,285,940 1,071,086 395,374 420,865 39,173,265 Debt securities issued 2,438,224 92,434 - 21,042 2,551,700 Others 840,527 159,783 7,841 35,691 1,043,842 Total liabilities 49,107,418 2,084,634 550,933 971,764 52,714,749 Net long/(short) position 3,474,717 326,844 (113,839) 668,122 4,355,844 Credit commitments 3,168,514 527,896 49,886 246,420 3,992,716 (i) Includes reverse repurchase agreements. (ii) Includes repurchase agreements.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 120 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (c) Market risk (continued) (ii) Currency risk (continued) A breakdown of the assets and liabilities analysed by currency is as follows: (continued) 31 December 2025 RMB USD (in RMB equivalent) HKD (in RMB equivalent) Other (in RMB equivalent) Total (in RMB equivalent) Assets: Cash and balances with central banks 3,278,259 266,907 5,837 123,555 3,674,558 Due from banks and other financial institutions (i) 804,913 676,240 49,416 264,187 1,794,756 Derivative financial assets 63,076 52,972 2,350 12,016 130,414 Loans and advances to customers 28,403,139 647,011 285,188 377,021 29,712,359 Financial investments Financial investments measured at FVTPL 889,993 26,602 9,267 18,091 943,953 Financial investments measured at FVTOCI 3,149,531 467,177 54,675 151,896 3,823,279 Financial investments measured at amortised cost 11,741,057 216,791 28,006 154,329 12,140,183 Investments in associates and joint ventures 46,502 922 161 30,728 78,313 Property and equipment 132,365 154,917 4,485 2,069 293,836 Others 487,891 123,720 7,581 266,930 886,122 Total assets 48,996,726 2,633,259 446,966 1,400,822 53,477,773 Liabilities: Due to central banks 175,842 951 - - 176,793 Due to banks and other financial institutions (ii) 6,864,354 521,108 65,475 188,686 7,639,623 Financial liabilities measured at FVTPL 4,106 2,728 1 143,361 150,196 Derivative financial liabilities 79,838 43,505 2,588 8,151 134,082 Certificates of deposit 173,010 219,860 82,291 27,432 502,593 Due to customers 35,503,269 1,036,830 356,438 415,241 37,311,778 Debt securities issued 2,095,243 102,421 - 19,143 2,216,807 Others 827,714 208,073 7,959 30,131 1,073,877 Total liabilities 45,723,376 2,135,476 514,752 832,145 49,205,749 Net long/(short) position 3,273,350 497,783 (67,786) 568,677 4,272,024 Credit commitments 3,010,379 525,204 47,792 272,099 3,855,474 (i) Includes reverse repurchase agreements. (ii) Includes repurchase agreements.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 121 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (d) Interest rate risk in the banking book 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: －the repricing period of different financial instruments are different when the interest rate changes; －despite the similarities in maturity periods, changes in the benchmark interest rate vary among on - and off -balance sheet business es in the banking book with different pricing benchmark interest rates; －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 option derivatives or when there are embedded option terms or implied options in the on - and off-balance sheet businesses in the banking book; and －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 Group manages the interest rate risk in the banking book through the Asset and Liability Management Department, and the following methods have been adopted: －interest rate prediction: analysing the macro -economic factors that may impact the PBC benchmark interest rates and market interest rates; －duration management: optimising the differences in timing between contractual repricing (or maturities) of interest-generating assets and interest-bearing liabilities; －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; －limit management: optimising the positions of interest-generating assets and interest-bearing liabilities and controlling the impact on profit or loss and equity; and －hedging: using interest rate derivatives for hedging management in a timely manner. 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 r educe future net interest income, while balancing the cost of hedging on the current revenue. 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 hedging instruments.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 122 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (d) Interest rate risk in the banking book (continued) 30 June 2026 Increased by 100 basis points Decreased by 100 basis points Currency Effect on net interest income Effect on equity Effect on net interest income Effect on equity RMB (51,100) (127,036) 51,100 142,926 USD (128) (14,662) 128 16,301 HKD (743) (398) 743 429 Others 552 (3,607) (552) 3,811 Total (51,419) (145,703) 51,419 163,467 31 December 2025 Increased by 100 basis points Decreased by 100 basis points Currency Effect on net interest income Effect on equity Effect on net interest income Effect on equity RMB (45,324) (114,670) 45,324 125,935 USD 1,994 (10,383) (1,994) 11,945 HKD (510) (202) 510 203 Others 1,115 (2,935) (1,115) 3,187 Total (42,725) (128,190) 42,725 141,270 The interest rate sensitivities set out in the tables above are for illustration only and are based on simplified scenarios. The figures represent the estimated movements in net interest income and equity based on the projected yield curve scenarios and th e 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.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 123 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (d) Interest rate risk in the banking book (continued) The tables below summarise the contractual repricing or maturity dates, whichever is earlier, of the Group’s assets and liabilities: 30 June 2026 Less than three months Three months to one year One to five years Over five years Non- interest- bearing Total Assets: Cash and balances with central banks 3,060,239 7,324 2,774 - 447,415 3,517,752 Due from banks and other financial institutions (i) 1,615,772 448,755 29,854 733 36,166 2,131,280 Derivative financial assets - - - - 140,823 140,823 Loans and advances to customers 11,349,485 19,299,526 310,362 138,893 64,254 31,162,520 Financial investments Financial investments measured at FVTPL 93,861 280,118 184,007 119,541 342,125 1,019,652 Financial investments measured at FVTOCI 314,344 610,880 2,102,200 1,000,366 129,174 4,156,964 Financial investments measured at amortised cost 649,836 1,391,831 5,361,233 5,944,569 108,683 13,456,152 Investments in associates and joint ventures - - - - 78,638 78,638 Property and equipment - - - - 283,854 283,854 Others - 997 - - 1,121,961 1,122,958 Total assets 17,083,537 22,039,431 7,990,430 7,204,102 2,753,093 57,070,593 Liabilities: Due to central banks 29,374 146,052 - - - 175,426 Due to banks and other financial institutions (ii) 5,926,675 2,819,678 56,960 641 92,412 8,896,366 Financial liabilities measured at FVTPL 3,313 5,447 2,328 639 238,187 249,914 Derivative financial liabilities - - - - 103,591 103,591 Certificates of deposit 187,655 240,230 90,486 - 2,274 520,645 Due to customers 19,622,044 9,877,521 8,961,258 24,638 687,804 39,173,265 Debt securities issued 293,327 1,217,631 200,720 826,709 13,313 2,551,700 Others 1,447 4,802 11,115 2,758 1,023,720 1,043,842 Total liabilities 26,063,835 14,311,361 9,322,867 855,385 2,161,301 52,714,749 Interest rate exposure (8,980,298) 7,728,070 (1,332,437) 6,348,717 N/A N/A (i) Includes reverse repurchase agreements. (ii) Includes repurchase agreements. The data set out in the above table includes trading book data.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 124 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (d) Interest rate risk in the banking book (continued) The tables below summarise the contractual repricing or maturity dates, whichever is earlier, of the Group’s assets and liabilities: (continued) 31 December 2025 Less than three months Three months to one year One to five years Over five years Non- interest- bearing Total Assets: Cash and balances with central banks 3,268,854 4,993 2,843 - 397,868 3,674,558 Due from banks and other financial institutions (i) 1,236,433 486,483 40,337 - 31,503 1,794,756 Derivative financial assets - - - - 130,414 130,414 Loans and advances to customers 12,739,269 16,487,862 299,302 129,534 56,392 29,712,359 Financial investments Financial investments measured at FVTPL 95,663 201,865 171,441 162,456 312,528 943,953 Financial investments measured at FVTOCI 342,067 727,555 1,720,178 900,599 132,880 3,823,279 Financial investments measured at amortised cost 697,676 1,291,893 4,755,990 5,290,751 103,873 12,140,183 Investments in associates and joint ventures - - - - 78,313 78,313 Property and equipment - - - - 293,836 293,836 Others - 1,037 - - 885,085 886,122 Total assets 18,379,962 19,201,688 6,990,091 6,483,340 2,422,692 53,477,773 Liabilities: Due to central banks 56,005 120,788 - - - 176,793 Due to banks and other financial institutions (ii) 5,452,321 2,059,591 39,170 590 87,951 7,639,623 Financial liabilities measured at FVTPL 8,135 2,726 1,819 330 137,186 150,196 Derivative financial liabilities - - - - 134,082 134,082 Certificates of deposit 195,372 240,666 63,842 - 2,713 502,593 Due to customers 20,451,265 7,631,176 8,418,490 36,845 774,002 37,311,778 Debt securities issued 498,316 804,592 165,762 734,759 13,378 2,216,807 Others 1,518 5,032 12,056 3,185 1,052,086 1,073,877 Total liabilities 26,662,932 10,864,571 8,701,139 775,709 2,201,398 49,205,749 Interest rate exposure (8,282,970) 8,337,117 (1,711,048) 5,707,631 N/A N/A (i) Includes reverse repurchase agreements. (ii) Includes repurchase agreements. The data set out in the above table includes trading book data.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 125 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (e) Capital management The Group has set the following capital management objectives: －maintain sound capital adequacy to meet regulatory and policy requirements on capital, keep stable capital base to ensure the implementation of the Group’s business growth 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 fully, 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 abilities of 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 po licies, issue or repurchase its own shares, eligible additional tier 1 capital instruments, eligible tier 2 capital instruments, or convertible bonds. The Group monitors the capital adequacy ratios regularly based on regulations issued by the NFRA. The required information is quarterly filed with the NFRA by the Group and the Bank. Since 1 January 2024, the Group commenced calculating the capital adequacy ratios in accordance with the Rules on Capital Management of Commercial Banks and other relevant regulations, according to the scope of implementing the advanced capital measurement approaches as approved by the regulatory authorities, an enterprise that meets the regulatory requirements shall adopt the foundation IRB approach for its corporate credit risk exposur es, the advanced IRB approach for its retail credit risk exposures, the weighted approach for its credit risk uncovered by the IRB approach, the standardised approach for its market risk exposures and the standardised approach for its operational risk exposures. According to Rules on Capital Management of Commercial Banks , 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 common equity tier 1 capital adequacy ratio, the tier 1 capital adequacy ratio and the capital adequacy ratio of the Group shall not be lower than 9%, 10% and 12% respectively. In addition, overseas entities are directly regulated by lo cal banking regulators, and the required capital adequacy ratios differ by countries or regions. The Group calculates the following common equity tier 1 capital adequacy ratio, the tier 1 capital adequacy ratio and the capital adequacy ratio in accordance with the Rules on Capital Management of Commercial Banks and relevant requirements. The requirements pursuant to these regulations may be different from those applicable in Hong Kong SAR and other jurisdictions.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 126 43. FINANCIAL RISK MANAGEMENT (CONTINUED) (e) Capital management (continued) The capital adequacy ratios and related data of the Group are calculated based on the statutory financial statements of the Group prepared under the PRC GAAP. During the reporting period, the Group has complied in full with all its externally imposed regulatory capital requirements. The common equity tier 1 capital adequacy ratio, the tier 1 capital adequacy ratio and the capital adequacy ratio of the Group calculated in accordance with the advanced capital measurement approaches in the Rules on Capital Management of Commercial Banks are as follows: 30 June 2026 31 December 2025 Common equity tier 1 capital 3,964,614 3,863,157 Paid-in capital 356,407 356,407 Valid portion of capital reserve 143,789 143,871 Surplus reserve 500,727 500,576 General reserve 660,653 660,329 Retained profits 2,278,371 2,172,125 Valid portion of minority interests 4,282 4,494 Accumulated other comprehensive income 20,385 25,355 Common equity tier 1 capital deductions 23,834 26,008 Goodwill 18,045 18,383 Other intangible assets other than land use rights 10,378 11,212 Cash flow hedging reserve that relates to the hedging of items that are not fair-valued on the balance sheet (4,589) (3,587) Net common equity tier 1 capital 3,940,780 3,837,149 Additional tier 1 capital 365,498 385,527 Additional tier 1 capital instruments and related premiums 364,666 384,657 Valid portion of minority interests 832 870 Net tier 1 capital 4,306,278 4,222,676 Tier 2 capital 1,232,812 1,080,120 Valid portion of tier 2 capital instruments and related premiums 819,979 690,003 Surplus provision for impairment 411,568 388,783 Valid portion of minority interests 1,265 1,334 Net capital base 5,539,090 5,302,796 Risk-weighted assets (i) 29,832,780 28,269,948 Common equity tier 1 capital adequacy ratio 13.21% 13.57% Tier 1 capital adequacy ratio 14.43% 14.94% Capital adequacy ratio 18.57% 18.76% (i) Refers to risk-weighted assets after the capital floor and adjustments.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 127 44. 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 operating procedures. Fair value measurement methodologies 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 correspondin g allocation of responsibilities. In the process of fair value measurement, front office is responsible for daily transaction management. The Finance and 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 discl osing the fair value of financial instruments: Level 1 inputs: quoted (unadjusted) prices in active markets for identical assets or liabilities; Level 2 inputs: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and Level 3 inputs: valuation techniques are used, for which certain inputs that have a significant effect on the recorded fair value are not based on observable market data. 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, investment funds, unlisted equity instruments and asset management plans. The Group values such investments 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 default rates, prepayment rates, discount rates and market liquidity. The majority of the debt securities investments classified as level 2 are RMB bonds. The fair values of these bonds are determined based on the valuation results provided by China Central Depository & Clearing Co., Ltd., which are determined based on a val uation technique for which all significant inputs are observable market data.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 128 44. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) Derivatives Derivatives that use valuation techniques with market observable inputs are mainly interest rate swaps, currency 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. Structured derivatives are mainly valued using dealer’s quotations. Loans and advances to customers The loans and advances to customers that use valuation techniques for valuation are mainly bills 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, with spreads adjusted for credit risk and liquidity. 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 includ ing 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.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 129 44. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (a) Financial instruments measured at fair value 30 June 2026 Level 1 Level 2 Level 3 Total Financial assets: Derivative financial assets 5,573 135,233 17 140,823 Reverse repurchase agreements measured at FVTPL - 19,171 - 19,171 Loans and advances to customers measured at FVTPL - 4,727 103 4,830 Loans and advances to customers measured at FVTOCI - 2,858,699 - 2,858,699 Financial investments measured at FVTPL Debt securities investments 22,637 630,453 3,089 656,179 Equity investments 25,563 560 107,841 133,964 Funds and other investments 46,948 75,181 107,380 229,509 95,148 706,194 218,310 1,019,652 Financial investments measured at FVTOCI Debt securities investments 361,003 3,699,816 - 4,060,819 Other debt investments - 4,047 823 4,870 Equity investments 37,964 8,237 45,074 91,275 398,967 3,712,100 45,897 4,156,964 499,688 7,436,124 264,327 8,200,139 Financial liabilities: Due to customers - 428,608 - 428,608 Repurchase agreements - 1,166 - 1,166 Financial liabilities measured at FVTPL 1,032 247,422 1,460 249,914 Derivative financial liabilities 4,781 98,423 387 103,591 5,813 775,619 1,847 783,279
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 130 44. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (a) Financial instruments measured at fair value (continued) 31 December 2025 Level 1 Level 2 Level 3 Total Financial assets: Derivative financial assets 8,001 122,365 48 130,414 Reverse repurchase agreements measured at FVTPL - 17,885 - 17,885 Loans and advances to customers measured at FVTPL - 7,080 109 7,189 Loans and advances to customers measured at FVTOCI - 2,655,589 - 2,655,589 Financial investments measured at FVTPL Debt securities investments 22,927 581,692 1,619 606,238 Equity investments 30,572 666 105,983 137,221 Funds and other investments 38,918 58,333 103,243 200,494 92,417 640,691 210,845 943,953 Financial investments measured at FVTOCI Debt securities investments 372,043 3,348,701 - 3,720,744 Other debt investments - 4,047 823 4,870 Equity investments 34,493 7,826 55,346 97,665 406,536 3,360,574 56,169 3,823,279 506,954 6,804,184 267,171 7,578,309 Financial liabilities: Due to customers - 210,557 - 210,557 Repurchase agreements - 694 - 694 Financial liabilities measured at FVTPL 8 148,728 1,460 150,196 Derivative financial liabilities 4,071 129,873 138 134,082 4,079 489,852 1,598 495,529
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS(CONTINUED) (In RMB millions, unless otherwise stated) 131 44. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (b) Movement of level 3 financial instruments measured at fair value The following tables show the movement of level 3 financial assets and financial liabilities measured at fair value: 1 January 2026 Total gains /(losses) recorded in profit or loss Total effects in other comprehensive income Additions Disposals and settlements Transfer (out of)/in level 3 30 June 2026 Financial assets: Derivative financial assets 48 72 - 4 (57) (50) 17 Loans and advances to customers measured at FVTPL 109 60 - - (66) - 103 Financial investments measured at FVTPL Debt securities investments 1,619 (328) - 2,087 (289) - 3,089 Equity investments 105,983 2,129 - 690 (961) - 107,841 Funds and other investments 103,243 3,557 - 14,162 (13,582) - 107,380 Financial investments measured at FVTOCI Equity investments 55,346 - (3,450) - (6,420) (402) 45,074 Funds and other investments 823 - - - - - 823 267,171 5,490 (3,450) 16,943 (21,375) (452) 264,327 Financial liabilities: Financial liabilities measured at FVTPL (1,460) 108 - (606) 498 - (1,460) Derivative financial liabilities (138) (129) - (323) 146 57 (387) (1,598) (21) - (929) 644 57 (1,847)
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS(CONTINUED) (In RMB millions, unless otherwise stated) 132 44. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (b) Movement of level 3 financial instruments measured at fair value (continued) The following tables show the movement of level 3 financial assets and financial liabilities measured at fair value: (continued) 1 January 2025 Total gains/(losses) recorded in profit or loss Total effects in other comprehensive income Additions Disposals and settlements Transfer (out of)/in level 3 31 December 2025 Financial assets: Derivative financial assets 55 79 - 33 (109) (10) 48 Loans and advances to customers measured at FVTPL 76 7 - 99 (73) - 109 Financial investments measured at FVTPL Debt securities investments 2,925 (1,127) - 924 (1,056) (47) 1,619 Equity investments 87,028 378 - 29,623 (11,034) (12) 105,983 Funds and other investments 44,010 (1,530) - 61,970 (9,569) 8,362 103,243 Financial investments measured at FVTOCI Equity investments 65,703 - 38 5,055 (15,450) - 55,346 Funds and other investments - - (182) - - 1,005 823 199,797 (2,193) (144) 97,704 (37,291) 9,298 267,171 Financial liabilities: Financial liabilities measured at FVTPL (2,322) 344 - (477) 747 248 (1,460) Derivative financial liabilities (139) (131) - (14) 49 97 (138) (2,461) 213 - (491) 796 345 (1,598)
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS(CONTINUED) (In RMB millions, unless otherwise stated) 133 44. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (b) Movement of level 3 financial instruments measured at fair value (continued) Net gains or losses on level 3 financial instruments of the Group are set out below: Six months ended 30 June 2026 2025 Realised 175 651 Unrealised 5,294 (590) 5,469 61 (c) Transfers between levels (i) Transfers between level 1 and level 2 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. 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. For the six months ended 30 June 2026 and 30 June 2025, the transfers between level 1 and level 2 of the fair value hierarchy for financial assets and liabilities measured at fair value of the Group were not significant. (ii) Transfers between level 2 and level 3 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 were 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 were previously unobs ervable became observable, or when there was a change in valuation technique.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS(CONTINUED) (In RMB millions, unless otherwise stated) 134 44. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (d) Valuation of financial instruments with significant unobservable inputs Financial instruments valued with significant unobservable inputs primarily include certain structured financial derivatives, asset -backed securities, investment funds, unlisted equity instruments and asset management plans. These financial instruments are valued using discounted cash flow model, net asset value method and market comparison approach. The models incorporate various unobservable assumptions such as expected default rates, prepayment rates, discount rates and market liquidity. As at 30 June 2026, the effects of changing the significant unobservable assumptions to reasonably possible alternative assumptions were not significant (31 December 2025: not significant). (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: 30 June 2026 Carrying amount Fair value Level 1 Level 2 Level 3 Financial assets: Financial investments measured at amortised cost 13,456,152 13,987,912 35,534 13,860,765 91,613 Financial liabilities: Tier 2 capital bonds and TLAC non-capital bonds 946,172 956,032 - 956,032 - 31 December 2025 Carrying amount Fair value Level 1 Level 2 Level 3 Financial assets: Financial investments measured at amortised cost 12,140,183 12,585,295 36,672 12,457,693 90,930 Financial liabilities: Subordinated bonds, tier 2 capital bonds and TLAC non-capital bonds 804,590 821,265 - 821,265 -
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS(CONTINUED) (In RMB millions, unless otherwise stated) 135 44. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED) (e) Fair value of financial assets and financial liabilities not carried at fair value (continued) 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 l iabilities 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) 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. (ii) The fair values of Subordinated bonds, tier 2 capital bonds and TLAC non-capital bonds issued 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. 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.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED NOTES TO THE FINANCIAL STATEMENTS(CONTINUED) (In RMB millions, unless otherwise stated) 136 45. EVENTS AFTER THE REPORTING PERIOD On 28 August 2026, the Board of Directors of the Bank proposed the distribution of interim cash dividends for ordinary shares of RMB 1.511 per ten shares (pre-tax) of 356,406,257,089 ordinary shares for 202 6, totaling about RMB 53,853 million. The distribution plan will be submitted to the Shareholders’ Meeting for approval. In July 2026, the Bank completed the issuance of the 202 6 undated additional tier 1 capital bonds (Series 3) (the “Perpetual Bonds”) and the issuance size of the Perpetual Bonds is RMB20,000 million. In July 2026, the Bank completed the issuance of the 2026 tier 2 capital bonds (Series 4) (the “Bonds”) and the issuance size of the Bonds is RMB60,000 million. The proceeds from the issuance of the Bonds are used to replenish the tier 2 capital of the Bank. In August 2026, the Bank completed the issuance of the 2026 tier 2 capital bonds (Series 5) (the “Bonds”) and the issuance size of the Bonds is RMB60,000 million. The proceeds from the issuance of the Bonds are used to replenish the tier 2 capital of the Bank. The Bank reviewed and approved the distribution of dividends on “工行優2” at the meeting of the Board of Directors on 28 August 2026, planning to distribute the dividends on “工行優2” on 24 September 2026 at the dividend rate of 3.02% (pre-tax, and the tax payable on dividends received by holders of domestic preference shares should be borne by them in compliance with relevant laws and regulations) and the total dividends distributed will be RMB2,114 million. 46. COMPARATIVE FIGURES Certain comparative amounts have been reclassified to conform to the current period ’s presentation. 47. APPROVAL OF THE FINANCIAL STATEMENTS The interim financial statements were approved by the Board of Directors on 28 August 2026.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED UNAUDITED SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS (In RMB millions, unless otherwise stated) 137 1. Statement of differences between the financial statements prepared under IFRS Accounting Standards and those prepared in accordance with PRC GAAP There are no differences between the profit attributable to equity holders of the parent company under IFRS Accounting Standards and PRC GAAP for the six months ended 30 June 2026 and 30 June 2025. There are no differences between the equity attributable to equity holders of the parent company under IFRS Accounting Standards and PRC GAAP as at 30 June 2026 and 31 December 2025. 2. Currency concentrations 30 June 2026 USD HKD Others Total Spot assets 2,205,879 432,907 1,589,433 4,228,219 Spot liabilities (2,041,937) (548,234) (960,695) (3,550,866) Forward purchases 2,728,363 432,895 692,854 3,854,112 Forward sales (2,990,662) (189,251) (1,232,425) (4,412,338) Net option position (45,725) (5,109) 956 (49,878) Net (short)/long position (144,082) 123,208 90,123 69,249 Net structural position 147,532 3,860 32,906 184,298 31 December 2025 USD HKD Others Total Spot assets 2,477,420 442,320 1,368,025 4,287,765 Spot liabilities (2,135,476) (514,752) (832,145) (3,482,373) Forward purchases 4,955,069 347,615 492,674 5,795,358 Forward sales (5,512,671) (150,364) (898,800) (6,561,835) Net option position (10,334) (1,571) (12,362) (24,267) Net (short)/long position (225,992) 123,248 117,392 14,648 Net structural position 155,839 4,646 32,797 193,282 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 oth er subsidiaries substantially involved in foreign exchange transactions. 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.
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED UNAUDITED SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 138 3. Loans and advances to customers (excluding accrued interest) (i) Overdue loans and advances to customers 30 June 2026 31 December 2025 Gross loans and advances to customers of the Group which have been overdue with respect to either principal or interest for periods of: Between 3 and 6 months 66,351 47,847 Between 6 and 12 months 80,433 89,056 Over 12 months 201,782 195,525 348,566 332,428 As a percentage of the total gross loans and advances to customers: Between 3 and 6 months 0.21% 0.16% Between 6 and 12 months 0.25% 0.29% Over 12 months 0.63% 0.64% 1.09% 1.09% The definition of overdue loans and advances to customers is as follows: Loans and advances to customers with a specific repayment date are classified as overdue when the principal or interest is overdue. For loans and advances to customers 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 30 June 2026 31 December 2025 Head Office 47,138 49,666 Bohai Rim 67,749 61,888 Western China 90,127 62,848 Central China 68,959 64,270 Pearl River Delta 111,008 101,171 Yangtze River Delta 71,545 67,607 Northeastern China 24,650 21,769 Overseas and others 31,447 33,516 512,623 462,735
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INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED UNAUDITED SUPPLEMENTARY INFORMATION TO THE FINANCIAL STATEMENTS (CONTINUED) (In RMB millions, unless otherwise stated) 139 3. Loans and advances to customers (excluding accrued interest) (continued) (iii) Rescheduled loans and advances to customers 30 June 2026 31 December 2025 % of total loans and advances to customers % of total loans and advances to customers Rescheduled loans and advances to customers 129,495 0.40% 156,027 0.51% Less: Rescheduled loans and advances to customers overdue for more than three months (43,901) (0.14%) (39,606) (0.13%) Rescheduled loans and advances to customers overdue for less than three months 85,594 0.26% 116,421 0.38% 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 30 June 2026 and 31 December 2025, 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.