Earnings release
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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this document, 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. 中國建設銀行股份有限公司 CHINA CONSTRUCTION BANK CORPORATION (A joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 00939) INTERIM RESULTS ANNOUNCEMENT For the Six Months Ended 30 June 2026 The board of directors (the “Board”) of China Construction Bank Corporation (the “Bank”) hereby announces the unaudited consolidated interim results of the Bank and its subsidiaries (the “Group”) for the six months ended 30 June 202 6 prepared in accordance with the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and International Accounting Standard No. 34 - Interim Financial Reporting. The interim results have been reviewed by the audit committee and external auditors of the Bank. The Board of Directors of China Construction Bank Corporation 28 August 2026 As at the date of this announcement, the executive directors of the Bank are Mr. Zhang Jinliang, Mr. Zhang Yi, Mr. Sun Xiaokun and Mr. Ji Zhihong; the non-executive directors of the Bank are Ms. Xin Xiaodai, Ms. Li Lu, Ms. Li Li, Mr. Dou Hongquan, Ms. Cao Liqun and Mr. Shi Jian; and the independent non-executive directors of the Bank are Mr. William Coen, Mr. Leung Kam Chung, Antony, Lord Sassoon, Mr. Lin Zhijun, Mr. Zhang Weiguo and Mr. Yang Qiang.
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2 IMPORTANT NOTICE The Board, directors and senior management of the Bank warrant that the information in this half- year report is truthful, accurate and complete and contains no false records, misleading statements or material omissions, and they assume several and joint legal liability for such contents. This half-year report and results announcement have been reviewed and approved at the Board meeting of the Bank held on 28 August 2026. A total of 1 6 directors of the Bank attended the meeting. The Board proposes an interim cash dividend of RMB2.010 per ten shares (including tax) for 2026 to all ordinary shareholders, subject to approval by the shareholders’ meeting. The Bank does not propose any capitalisation of capital reserve into share capital. The Group’s 2026 half-year financial statements prepared under PRC GAAP have been reviewed by Ernst & Young Hua Ming LLP, and the Group’s 2026 half-year financial statements prepared under IFRS Accounting Standards have been reviewed by Ernst & Young. Mr. Zhang Jinliang, chairman and executive director of the Bank, Mr. Zhang Yi, vice chairman, executive director, and president of the Bank, and Mr. Yin Pengfei, head of finance & accounting department, hereby warrant the truthfulness, accuracy and completeness of the financial statements in this half-year report. We have included in this report certain forward -looking statements with respect to our financial position, operating results and business development. These statements are based on current plans, estimates and projections. Although we believe that the expectations reflected in these forward - looking statements are reasonable, these statements do not constitute a substantive commitment to investors. Please be fully aware of the risks and understand the differences between plans, projections and commitments. The main risks faced by the Group are credit risk, market risk, interest rate risk in the banking book, operational risk, liquidity risk, reputational risk, country risk, IT risk and strategic risk. We take proactive measures to manage various risks effectively. For more information, please refer to “Management Discussion and Analysis - Risk Management”. This report is prepared in both Chinese and English. In the case of discrepancy between the two versions, the Chinese version shall prevail.
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3 CONTENTS IMPORTANT NOTICE ............................................................................................ 2 DEFINITIONS .......................................................................................................... 5 1 FINANCIAL SUMMARY ..................................................................................... 8 2 CORPORATE INFORMATION ......................................................................... 10 3 MANAGEMENT DISCUSSION AND ANALYSIS .......................................... 12 3.1 FINANCIAL REVIEW ..................................................................................... 12 3.1.1 Statement of Comprehensive Income Analysis .................................................................... 13 3.1.2 Statement of Financial Position Analysis ............................................................................. 22 3.1.3 Analysis on Cash Flow Statements ...................................................................................... 31 3.1.4 Other Financial Information ................................................................................................. 31 3.2 BUSINESS REVIEW ....................................................................................... 32 3.2.1 Corporate Finance Business ................................................................................................. 36 3.2.2 Personal Finance Business .................................................................................................... 38 3.2.3 Treasury and Asset Management Business .......................................................................... 42 3.2.4 Overseas Commercial Banking Business ............................................................................. 44 3.2.5 Integrated Operation Subsidiaries ........................................................................................ 46 3.2.6 FinTech and Channel Operation ........................................................................................... 50 3.3 RISK MANAGEMENT .................................................................................... 56 3.3.1 Credit Risk Management ...................................................................................................... 56 3.3.2 Market Risk Management .................................................................................................... 61 3.3.3 Management of Interest Rate Risk in the Banking Book ..................................................... 63 3.3.4 Operational Risk Management ............................................................................................. 65 3.3.5 Liquidity Risk Management ................................................................................................. 66 3.3.6 Reputational Risk Management ............................................................................................ 67 3.3.7 Country Risk Management ................................................................................................... 67 3.3.8 IT Risk Management ............................................................................................................ 68 3.3.9 Strategic Risk Management .................................................................................................. 68 3.3.10 Emerging Risk Management .............................................................................................. 69 3.3.11 Consolidated Management ................................................................................................. 70 3.3.12 Internal Audit ...................................................................................................................... 70 3.4 CAPITAL MANAGEMENT ............................................................................ 71 3.4.1 Capital Adequacy Ratios ...................................................................................................... 71 3.4.2 Leverage Ratio ...................................................................................................................... 72 3.5 PROSPECTS ..................................................................................................... 73 4 CORPORATE GOVERNANCE, ENVIRONMENT AND SOCIETY .............. 75 4.1 CORPORATE GOVERNANCE....................................................................... 75 4.1.1 Profiles of Directors and Senior Management ..................................................................... 75 4.1.2 Employees ............................................................................................................................ 76 4.1.3 Formulation and Implementation of Profit Distribution Policy ........................................... 77 4.1.4 Implementation Progress of the Action Plan for Quality Improvement, Efficiency Enhancement, and Return Maximisation ............................................................................. 78
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4 4.2 ENVIRONMENTAL AND SOCIAL RESPONSIBILITY .............................. 79 5 MAJOR ISSUES .................................................................................................. 82 6 CHANGES IN SHARE CAPITAL AND PARTICULARS OF SHAREHOLDERS ......................................................................................... 85 6.1 CHANGES IN ORDINARY SHARES ............................................................ 85 6.2 NUMBER OF ORDINARY SHAREHOLDERS AND PARTICULARS OF SHAREHOLDING ................................................................................... 85 6.3 CHANGES IN CONTROLLING SHAREHOLDER AND ACTUAL CONTROLLING PARTY .............................................................................. 87 6.4 INTERESTS AND SHORT POSITIONS OF SUBSTANTIAL SHAREHOLDERS AND OTHER PERSONS .............................................. 87 6.5 DIRECTORS’ INTERESTS AND SHORT POSITIONS ................................ 87 6.6 DETAILS OF PREFERENCE SHARES.......................................................... 88 APPENDIX: INDEPENDENT AUDITOR’S REPORT AND FINANCIAL STATEMENTS ............................................................................................... 89
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5 DEFINITIONS In this half-year report, unless the context otherwise requires, the following terms shall have the meanings set out below. Abbreviations of organisations State Council State Council of the People’s Republic of China PBOC The People’s Bank of China NFRA National Financial Regulatory Administration Former CBIRC Former China Banking and Insurance Regulatory Commission, predecessor of the NFRA CSRC China Securities Regulatory Commission SSE Shanghai Stock Exchange Hong Kong Stock Exchange The Stock Exchange of Hong Kong Limited Huijin Central Huijin Investment Ltd. MOF Ministry of Finance of the People’s Republic of China China Great Wall AMC China Great Wall Asset Management Co. Ltd. State Grid State Grid Corporation of China Yangtze Power China Yangtze Power Co., Limited Baowu Steel Group China Baowu Steel Group Corporation Limited Bank China Construction Bank Corporation Group or CCB China Construction Bank Corporation and its subsidiaries Board Board of directors CCB Asia China Construction Bank (Asia) Corporation Limited CCB Consulting CCB Engineering Consulting Co., Ltd. CCB Consumer Finance CCB Consumer Finance Co., Ltd. CCB Europe China Construction Bank (Europe) S.A. CCB Financial Leasing CCB Financial Leasing Co., Ltd. CCB FinTech CCB FinTech Co., Ltd. CCB Futures CCB Futures Co., Ltd. CCB Housing CCB Housing Services Co., Ltd. CCB Housing Rental CCB Housing Rental Private Fund Management Co., Ltd. CCB Housing Rental Fund CCB Housing Rental Fund (Limited Partnership) CCB Indonesia PT Bank China Construction Bank Indonesia Tbk CCB International CCB International (Holdings) Limited CCB Investment CCB Financial Asset Investment Co., Ltd. CCB Life CCB Life Insurance Co., Ltd. CCB Malaysia China Construction Bank (Malaysia) Berhad
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6 CCB New Zealand China Construction Bank (New Zealand) Limited CCB Pension CCB Pension Management Co., Ltd. CCB Principal Asset Management CCB Principal Asset Management Co., Ltd. CCB Private Equity CCB Private Equity Investment Management Co., Ltd. CCB P&C Insurance CCB Property & Casualty Insurance Co., Ltd. CCB Russia China Construction Bank (Russia) Limited CCB Trust CCB Trust Co., Ltd. CCB Wealth Management CCB Wealth Management Co., Ltd. Sino-German Bausparkasse Sino-German Bausparkasse Co., Ltd. Others New quality productive forces New quality productive forces represent an advanced form of productivity characterised by innovation -driven development, breaking away from traditional economic growth models and conventional productivity development paths. They embody high technology, high efficiency, and high quality, aligning with the new development philosophy. Emerging from revolutionary technological breakthrou ghs, innovative allocation of production factors, and deep industrial transformation and upgrading, new quality productive forces fundamentally entail the elevation of labourers, means of labour, and objects of labour through optimised combinations. Their core hallmark is the substantial improvement in total factor productivity, with innovation as their defining feature, high quality as their critical attribute, and advanced productivity as their essential nature Two Key Tasks Implementation of major national strategies and enhancement of security capacity in key areas Two Renewals The new round of large-scale equipment renewal and trade-ins of consumer goods Six Networks Water network, new-type power grid, computing power network, next-generation communication network, urban underground pipeline network, and logistics network “Five Priorities” in finance Technology finance, green finance, inclusive finance, pension finance and digital finance Three Capabilities Capabilities in serving national construction, preventing financial risks, and participating in international competition RCEP Regional Comprehensive Economic Partnership Four Integrations Integration of Commercial and Investment Banking Business, Integration of Corporate and Personal Finance Business , Integration of Renminbi and Foreign Currencies Business, and Integration of Group-wide Operations
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7 Three lines of defence The first line of defence refers t o business operation and management departments, the second line of defence refers to risk management department and internal control & compliance department, and the third line of defence refers to internal audit department CCB Huidongni An integrated ec ological service platform built by the Bank for inclusive finance customers by using the Internet, big data, artificial intelligence (AI) and biometric technologies Yunong Loan A loan product package provided by the Bank for proprietors, farmers mainly, which includes “Y unong Quick Loan” and “Yunong Loan” Listing Rules of Hong Kong Stock Exchange Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited PRC GAAP Accounting Standards for Business Enterprises and other relevant requirements promulgated by the MOF on 15 February 2006 and afterwards IFRS Accounting Standards International Financial Reporting Standards as issued by the International Accounting Standards Board New Insurance Contracts Standard IFRS 17 Insurance Contracts issued by International Accounting Standards Board, which came into effect on 1 January 2023 New Financial Instruments Standard IFRS 9 Financial Instruments issued by International Accounting Standards Board, which came into effect on 1 January 2018 AML Anti-money laundering ESG Environmental, Social and Governance WMPs Wealth management products
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8 1 FINANCIAL SUMMARY The financial information set forth in this half -year report is prepared on a consolidated basis in accordance with the IFRS Accounting Standards and expressed in RMB unless otherwise stated. (Expressed in millions of RMB unless otherwise stated) Six months ended 30 June 2026 Six months ended 30 June 2025 Change (%) Six months ended 30 June 2024 For the period Operating income 426,333 385,905 10.48 374,831 Net interest income 310,958 286,709 8.46 296,059 Net fee and commission income 64,289 65,218 (1.42) 62,696 Operating expenses (98,960) (95,503) 3.62 (94,388) Credit impairment losses (130,028) (107,652) 20.79 (87,654) Other impairment losses (2) (10) (80.00) 17 Profit before tax 197,980 182,441 8.52 193,012 Net profit 171,677 162,638 5.56 165,039 Net profit attributable to equity shareholders of the Bank 169,564 162,076 4.62 164,326 Net cash from operating activities 350,683 1,256,614 (72.09) 290,805 Per share (In RMB) Basic and diluted earnings per share1 0.65 0.65 - 0.66 Profitability indicators (%) Change +/(-) Annualised return on average assets2 0.74 0.77 (0.03) 0.84 Annualised return on average equity1 9.52 10.08 (0.56) 10.82 Net interest margin 1.37 1.40 (0.03) 1.54 Net fee and commission income to operating income 15.08 16.90 (1.82) 16.73 Cost-to-income ratio3 22.17 23.72 (1.55) 24.15 1. Calculated in accordance with Accounting Standard for Business Enterprises No. 34 – Earnings per Share and the Rule No.9 on the Preparation of Information Disclosure of Companies Issuing Public Securities - Calculation and Disclosure of Return on Net Assets and Earnings per Share (Revision 2010) issued by the CSRC. 2. Calculated by dividing net profit by the average of total assets at the beginning and end of the period and then annualising the quotient. 3. Operating expenses (after deduction of taxes and surcharges) divided by operating income.
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9 (Expressed in millions of RMB unless otherwise stated) 30 June 2026 31 December 2025 Change (%) 31 December 2024 At the end of the period Total assets 47,328,244 45,631,818 3.72 40,571,149 Gross loans and advances to customers 29,342,776 27,772,827 5.65 25,843,294 Corporate loans and advances 17,600,576 16,469,961 6.86 15,184,655 Personal loans and advances 9,188,235 9,159,182 0.32 8,977,310 Discounted bills 2,498,034 2,092,713 19.37 1,631,752 Accrued interest 55,931 50,971 9.73 49,577 Total liabilities 43,494,418 41,945,741 3.69 37,227,184 Deposits from customers 31,818,419 30,835,574 3.19 28,713,870 Corporate deposits 12,470,128 12,146,314 2.67 11,779,973 Personal deposits 18,984,192 18,234,284 4.11 16,458,599 Accrued interest 364,099 454,976 (19.97) 475,298 Total equity 3,833,826 3,686,077 4.01 3,343,965 Total equity attributable to equity shareholders of the Bank 3,810,182 3,663,411 4.01 3,322,127 Share capital 261,600 261,600 - 250,011 Common Equity Tier 1 capital1 3,579,066 3,464,852 3.30 3,165,549 Additional Tier 1 capital1 228,988 198,931 15.11 158,875 Tier 2 capital1 1,071,937 999,643 7.23 978,839 Total capital1 4,879,991 4,663,426 4.64 4,303,263 Risk-weighted assets1 25,132,550 23,685,171 6.11 21,854,590 Per share (In RMB) Net assets per share attributable to ordinary shareholders of the Bank 13.69 13.24 3.40 12.65 Capital adequacy indicators (%) Change +/(-) Common Equity Tier 1 ratio1 14.24 14.63 (0.39) 14.48 Tier 1 ratio1 15.15 15.47 (0.32) 15.21 Total capital ratio1 19.42 19.69 (0.27) 19.69 Total equity to total assets 8.10 8.08 0.02 8.24 Asset quality indicators (%) Change +/(-) Non-performing loan (NPL) ratio 1.29 1.31 (0.02) 1.34 Allowances to NPLs2 238.69 233.15 5.54 233.60 Allowances to total loans2 3.09 3.06 0.03 3.12 1. Measured in accordance with the relevant rules of the Rules on Capital Management of Commercial Banks since 2024. 2. Allowances for impairment losses on loans include the allowances for impairment losses on discounted bills measured at fair value through other comprehensive income, and both total loans and NPLs do not include the accrued interest.
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10 2 CORPORATE INFORMATION Legal name and abbreviation in Chinese 中國建設銀行股份有限公司 (abbreviated as “中國建設銀 行”) Legal name and abbreviation in English CHINA CONSTRUCTION BANK CORPORATION (abbreviated as “CCB”) Legal representative Zhang Jinliang Authorised representatives Zhang Yi Bo Yingen Secretary to the Board Ji Zhihong Contact address No. 25, Financial Street, Xicheng District, Beijing Joint company secretaries Bo Yingen and Chiu Ming King Principal place of business in Hong Kong 28/F, CCB Tower, 3 Connaught Road Central, Central, Hong Kong Registered address and office address No. 25, Financial Street, Xicheng District, Beijing Postcode: 100033 Telephone: 86-10-67597114 Websites www.ccb.cn www.ccb.com Hotline for customer service and complaints 95533 Contact information for investors Telephone: 86-10-66215533 Facsimile: 86-10-66218888 Email: ir@ccb.com Media and websites for information disclosure China Securities Journal, www.cs.com.cn Shanghai Securities News, www.cnstock.com Securities Times, www.stcn.com Securities Daily, www.zqrb.cn Website of the SSE for publishing the half-year report prepared in accordance with PRC GAAP www.sse.com.cn Website of the “HKEXnews” of Hong Kong Exchanges and Clearing Limited for publishing the half-year report prepared in accordance with IFRS Accounting Standards www.hkexnews.hk Place where copies of this half-year report are kept Board of Directors Office of the Bank
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11 Listing stock exchanges, stock abbreviations and stock codes A-share: Shanghai Stock Exchange Stock abbreviation: 建設銀行 Stock code: 601939 H-share: The Stock Exchange of Hong Kong Limited Stock abbreviation: CCB Stock code: 00939 Domestic preference share: Shanghai Stock Exchange Stock abbreviation: 建行優1 Stock code: 360030 Certified public accountants Domestic auditor: Ernst & Young Hua Ming LLP Address: 17/F, Ernst & Young Tower, Oriental Plaza, No.1 East Chang’an Avenue, Dongcheng District, Beijing Signatory CPAs: Jiang Changzheng, Gu Jun and Li Linlin International auditor: Ernst & Young Address: 27/F, One Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong Signatory accountant: Leung Shing Kit Legal advisor as to PRC laws Commerce & Finance Law Offices Address: 12-15/F, China World Office 2, No.1 Jianguomenwai Avenue, Beijing Legal advisor as to Hong Kong laws Clifford Chance Address: 27/F, Jardine House, One Connaught Place, Central, Hong Kong A-share registrar China Securities Depository and Clearing Corporation Limited, Shanghai Branch Address: No. 188 Yanggaonan Road, Pudong New District, Shanghai H-share registrar Computershare Hong Kong Investor Services Limited Address: Rooms 1712-1716, 17/F, Hopewell Centre, 183 Queen’s Road East, Wanchai, Hong Kong Sponsors for continuous supervision and guidance CITIC Securities Company Limited Address: CITIC Securities Tower, No.48 Liangmaqiao Road, Chaoyang District, Beijing Signatory sponsor representatives: Zhou Yu and Shi Guoping Period of continuous supervision and guidance: from 25 June 2025 to 31 December 2026 Guotai Haitong Securities Co., Ltd. Address: No. 618, Shangcheng Road, China (Shanghai) Pilot Free Trade Zone, Shanghai, PRC Signatory sponsor representatives: Sun Lin and Ji Guanheng Period of continuous supervision and guidance: from 25 June 2025 to 31 December 2026
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12 3 MANAGEMENT DISCUSSION AND ANALYSIS 3.1 FINANCIAL REVIEW In the first half of 2026, global economic growth decelerated amid frequent geopolitical conflicts and economic and trade frictions. These headwinds contributed to a rise in overall inflation and a divergence in economic performance across major economies. Market expectations for monetary policy rate hikes intensified. In this context, China’s economy maintained momentum towards new growth drivers and optimised structure, demonstrating strong stability and certainty amid the complex and challenging international environment. In the first half of 2026, China’s GDP reached RMB69.6 trillion, a year-on-year increase of 4.7% at constant prices 1. China’s economy saw fast growth in production and supply, mild rise in prices, good momentum in foreign trade growth, robust development of new growth drivers, and stable financial marke t operations. Nevertheless, China’s economy still faced difficulties and challenges such as an imbalance between strong supply and weak demand, structural divergence, and external shocks. China implemented more proactive and effective macro policies. The fiscal policies were more proactive, underpinned by faster pace of budget allocation, and coordinated use of instruments such as government bonds, interest subsidies, and special funds, continuously boosting investment and consumption. A coordinated fiscal-financial policy package to stimulate domestic demand was rolled out. Monetary policies remained moderately accommodative, driving reasonable growth in financial aggregates, keeping overall social financing costs at a low level, liquidity adequate, and RMB exchange rate fluctuating in a two-way manner. Regulatory policies were further improved, and coordinated efforts were made to prevent risks, strengthen supervision, and promote high - quality development. Regulators steadily pressed ahead with the reform and risk mitigation of small and medium-sized financial institutions, effectively prevented and resolved risks in key areas, and made notable progress in addressing disorderly competition, contributing to high-quality development of the industry. In the first half of 2026, China’s banking industry witnessed a steady growth in size, with overall stable asset quality. Banks continued to optimise the mix of resource allocation and enhance financial services for major strategies, key areas and weak links. With a vast and solid customer base, a dedicated and resilient workforce, a strong tradition of reform and innovation, a comprehensive, proactive, intelligent, and agile risk control system, and secure and reliable FinTech support, CCB has always grown in tandem with China’s economic development. Adapting to the shifts in economic development models, industrial structures, and social financing patterns during the 15th Five-Year Plan period, CCB expedited the adjustment of its business structure and the transformation of its development model. Guided by the fundamental principle of enhancing its “Three Capabilities”, CCB implement ed coordination and synergy across the group by pressing ahead with “Four Integrations”, and unswervingly promoted intensive high-quality development. In the first half of 2026, the Group maintained reasonable growth in assets and liabilities, enhanced the q uality and efficiency in serving the real economy . Operating performance was robust and solid. The operating income rose by 10.48%, and net profit rose by 5.56% over the first half of 2025, maintaining a steady and positive growth trend. The NPL ratio remained stable with a slight decline, and its risk mitigation capacity remained adequate. Core indicators remained balanced and while maintaining strength . The annualised return on average assets, annualised return on average equity, net interest margin, cost -to-income ratio, and total capital ratio were 0.74%, 9.52%, 1.37%, 22.17%, and 19.42%, respectively. 1 The data come from the National Bureau of Statistics.
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13 3.1.1 Statement of Comprehensive Income Analysis In the first half of 2026, the Group’s net profit was RMB171,677 million, of which net profit attributable to equity shareholders of the Bank was RMB169,564 million, an increase of 5.56% and 4.62% respectively over the first half of 2025. Key factors affecting the Group’s profitability are as follows: net interest income increased by 8.46% over the first half of 2025 due to factors such as the growth in business scale and the stabilisation of net interest margin; net non -interest income increased by 16.31% over the first half of 2025, due to the improvement of comprehensive financial service capabilities and capture of market opportunities. The following table sets forth the composition of the Group’s statement of comprehensive income and the changes during the respective periods. (In millions of RMB, except percentages) Six months ended 30 June 2026 Six months ended 30 June 2025 Change (%) Net interest income 310,958 286,709 8.46 Net non-interest income 115,375 99,196 16.31 – Net fee and commission income 64,289 65,218 (1.42) Operating income 426,333 385,905 10.48 Operating expenses (98,960) (95,503) 3.62 Credit impairment losses (130,028) (107,652) 20.79 Other impairment losses (2) (10) (80.00) Share of profits/(losses) of associates and joint ventures 637 (299) N/A Profit before tax 197,980 182,441 8.52 Income tax expense (26,303) (19,803) 32.82 Net profit 171,677 162,638 5.56 Net profit attributable to equity shareholders of the Bank 169,564 162,076 4.62 Net Interest Income In the first half of 2026, the Group’s net interest income amounted to RMB310,958 million, an increase of RMB24,249 million, or 8.46% over the first half of 2025. Net interest income accounted for 72.94% of operating income.
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14 The following table sets forth the Group’s average balances of assets and liabilities, related interest income or expense, and annualised average yields or costs during the respective periods. (In millions of RMB, except percentages) Six months ended 30 June 2026 Six months ended 30 June 2025 Average balance Interest income/ Interest expense Annualised average yield/cost (%) Average balance Interest income/ Interest expense Annualised average yield/cost (%) Assets Gross loans and advances to customers 28,644,137 380,404 2.68 26,728,734 392,176 2.96 Financial investments 12,584,590 160,513 2.57 10,463,974 150,146 2.89 Deposits with central banks 2,627,171 20,585 1.58 2,621,175 21,257 1.64 Deposits and placements with banks and non-bank financial institutions 1,127,604 9,707 1.74 925,318 9,652 2.10 Financial assets held under resale agreements 809,872 5,715 1.42 705,223 6,026 1.72 Total interest-earning assets 45,793,374 576,924 2.54 41,444,424 579,257 2.82 Total allowances for impairment losses (884,353) (843,502) Non-interest-earning assets 2,449,548 2,068,998 Total assets 47,358,569 576,924 42,669,920 579,257 Liabilities Deposits from customers 31,036,110 170,074 1.11 28,954,271 201,123 1.40 Deposits and placements from banks and non-bank financial institutions 5,295,744 44,488 1.69 3,842,269 38,062 2.00 Debt securities issued 2,499,100 27,880 2.25 2,712,689 34,180 2.54 Borrowings from central banks 1,434,135 12,206 1.72 937,287 10,222 2.20 Financial assets sold under repurchase agreements 1,501,403 11,318 1.52 997,751 8,961 1.81 Total interest-bearing liabilities 41,766,492 265,966 1.28 37,444,267 292,548 1.58 Non-interest-bearing liabilities 1,800,031 1,802,976 Total liabilities 43,566,523 265,966 39,247,243 292,548 Net interest income 310,958 286,709 Net interest spread 1.26 1.24 Net interest margin 1.37 1.40 In the first half of 2026, the Group paid close attention to market changes, and continued to deepen the refined and coordinated management of assets and liabilities, striving to maintain its net interest margin at a reasonable level. Due to interest rate cuts in prior period, and proactive measures such as improving the composition of assets and liabilities and strengthening pricing management, the decline in the cost of interest-bearing liabilities exceeded that in the yield on interest-earning assets. Net interest margin was 1.37%.
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15 The following table sets forth the effects of the movement of average balances and average interest rates of the Group’s assets and liabilities on the change in interest income and expense in the first half of 2026 as compared with the first half of 2025. (In millions of RMB) Volume factor 1 Interest rate factor 1 Change in interest income/expense Assets Gross loans and advances to customers 26,919 (38,691) (11,772) Financial investments 28,180 (17,813) 10,367 Deposits with central banks 51 (723) (672) Deposits and placements with banks and non- bank financial institutions 1,883 (1,828) 55 Financial assets held under resale agreements 822 (1,133) (311) Change in interest income 57,855 (60,188) (2,333) Liabilities Deposits from customers 13,458 (44,507) (31,049) Deposits and placements from banks and non- bank financial institutions 12,938 (6,512) 6,426 Debt securities issued (2,571) (3,729) (6,300) Borrowings from central banks 4,566 (2,582) 1,984 Financial assets sold under repurchase agreements 3,967 (1,610) 2,357 Change in interest expense 32,358 (58,940) (26,582) Change in net interest income 25,497 (1,248) 24,249 1. Changes caused by both average balances and average interest rates were allocated to the volume factor and interest rate factor respectively based on the respective proportions of absolute values of volume factor and interest rate factor. Net interest income increased by RMB24,249 million over the first half of 2025. The movement of average balances of assets and liabilities pushed up net interest income by RMB25,497 million, while the movements of average yields and costs pushed down net interest income by RMB1,248 million. Interest Income In the first half of 2026, the Group’s interest income amounted to RMB576,924 million, a decrease of RMB2,333 million, or 0.40% from the first half of 2025. Interest income from loans and advances to customers, interest income from financial investments, interest income from deposits with central banks, interest income from deposits and placements with banks and non -bank financial institutions, and interest income from financial assets held under resale agreements accounted for 65.94%, 27.82%, 3.57%, 1.68% and 0.99% of the total, respectively.
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16 The following table sets forth the average balance, interest income and annualised average yield of each component of the Group’s loans and advances to customers during the respective periods. (In millions of RMB, except percentages) Six months ended 30 June 2026 Six months ended 30 June 2025 Average balance Interest income Annualised average yield (%) Average balance Interest income Annualised average yield (%) Domestic loans and advances of the Bank 27,738,173 358,187 2.60 25,812,078 369,028 2.88 By business type Corporate loans and advances 16,528,873 212,687 2.59 15,201,845 215,227 2.86 Personal loans and advances 9,057,546 136,681 3.04 8,959,534 146,248 3.29 Discounted bills 2,151,754 8,819 0.83 1,650,699 7,553 0.92 By term structure Short-term loans 7,834,118 80,388 2.07 7,286,001 88,030 2.44 Medium to long-term loans 19,904,055 277,799 2.81 18,526,077 280,998 3.06 Overseas operations and subsidiaries 905,964 22,217 4.95 916,656 23,148 5.09 Gross loans and advances to customers 28,644,137 380,404 2.68 26,728,734 392,176 2.96 Interest income from loans and advances to customers was RMB380,404 million, a decrease of RMB11,772 million, or 3.00% from the first half of 2025, mainly due to the 28 basis points drop in the annualised average yield of loans and advances to customers from the first half of 2025. Interest income from financia l investments amounted to RMB160,513 million, an increase of RMB10,367 million, or 6.90% over the first half of 2025, mainly due to the 20.27% increase in the average balance of financial investments over the first half of 2025. Interest income from deposits with central banks was RMB20,585 million, a decrease of RMB672 million, or 3.16% from the first half of 2025, mainly due to the six basis points drop in the annualised average yield of deposits with central banks from the first half of 2025. Interest in come from deposits and placements with banks and non -bank financial institutions amounted to RMB9,707 million, an increase of RMB55 million , or 0.57% over the first half of 2025, mainly due to the 21.86% increase in the average balance of deposits and plac ements with banks and non-bank financial institutions over the first half of 2025. Interest income from financial assets held under resale agreements was RMB5,715 million, a decrease of RMB311 million, or 5.16% from the first half of 2025, mainly due to th e 30 basis points drop in the annualised average yield of financial assets held under resale agreements from the first half of 2025.
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17 Interest Expense In the first half of 2026, the Group’s interest expense was RMB265,966 million, a decrease of RMB26,582 million, or 9.09% from the first half of 2025. Specifically, interest expense on deposits from customers accounted for 63.95%, interest expense on deposits and placements from banks and non-bank financial institutions accounted for 16.73%, interest expense on debt securities issued accounted for 10.48%, interest expense on borrowings from central banks accounted for 4.59%, and interest expense on financial assets sold under repurchase agreements accounted for 4.25%. The following table sets forth the average balance, interest expense and annualised average cost of each component of the Group’s deposits from customers during the respective periods. (In millions of RMB, except percentages) Six months ended 30 June 2026 Six months ended 30 June 2025 Average balance Interest expense Annualised average cost (%) Average balance Interest expense Annualised average cost (%) Domestic deposits from customers 30,465,292 162,797 1.08 28,376,546 192,243 1.37 Corporate deposits 12,015,381 59,406 1.00 11,452,375 73,945 1.30 Demand deposits 6,332,756 13,406 0.43 6,113,344 18,709 0.62 Time deposits 5,682,625 46,000 1.63 5,339,031 55,236 2.09 Personal deposits 18,449,911 103,391 1.13 16,924,171 118,298 1.41 Demand deposits 6,191,600 1,656 0.05 5,832,854 2,180 0.08 Time deposits 12,258,311 101,735 1.67 11,091,317 116,118 2.11 Overseas operations and subsidiaries 570,818 7,277 2.57 577,725 8,880 3.10 Total deposits from customers 31,036,110 170,074 1.11 28,954,271 201,123 1.40 Interest expense on deposits from customers was RMB170,074 million, a decrease of RMB31,049 million, or 15.44% from the first half of 2025 , mainly due to the 29 basis points drop in the annualised average cost of deposits from customers from the first half of 2025. Interest expense on deposits and placements from banks and non -bank financial institutions was RMB44,488 million, an increase of RMB6,426 million or 16.88% over the first half of 2025, mainly due to the 37.83% increase in the average balance of deposits and placements from banks and non-bank financial institutions over the first half of 2025. Interest expense on debt securities issued was RMB27,880 million, a decrease of RMB6,300 million or 18.43% from the first half of 2025, mainly due to the 7.87% decrease in the average balance of debt securities issued and the 29 basis points drop in the annualised average cost from the first half of 2025. Interest expense on borrowings from central banks was RMB12,206 million, an increase of RMB1,984 million or 19.41% over the first half of 2025, mainly due to the 53.01% increase in the average balance of borrowings from central banks over the first half of 2025. Interest expense on financial assets sold under repurchase agreements amounted to RMB 11,318 million, an increase of RMB2,357 million, or 26.30% over the first half of 2025, mainly due to the 50.48% increase in the average balance of financial assets sold under repurchase agreements over
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18 the first half of 2025. Net Non-Interest Income The following table sets forth the composition and change of the Group’s net non-interest income during the respective periods. (In millions of RMB, except percentages) Six months ended 30 June 2026 Six months ended 30 June 2025 Change (%) Fee and commission income 70,604 71,450 (1.18) Fee and commission expense (6,315) (6,232) 1.33 Net fee and commission income 64,289 65,218 (1.42) Other net non-interest income 51,086 33,978 50.35 Total net non-interest income 115,375 99,196 16.31 In the first half of 2026, the Group’s net non -interest income reached RMB115,375 million, an increase of RMB16,179 million, or 16.31% over the first half of 2025. Net non -interest income accounted for 27.06% of operating income. Net Fee and Commission Income The following table sets forth the composition and change of the Group’s net fee and commission income during the respective periods. (In millions of RMB, except percentages) Six months ended 30 June 2026 Six months ended 30 June 2025 Change (%) Fee and commission income 70,604 71,450 (1.18) Settlement and clearing fees 20,263 19,870 1.98 Commission on trust and fiduciary activities 12,107 11,722 3.28 Agency service fees 11,209 9,441 18.73 Bank card fees 10,251 10,184 0.66 Consultancy and advisory fees 6,492 7,285 (10.89) Income from asset management business 3,388 6,076 (44.24) Others 6,894 6,872 0.32 Fee and commission expense (6,315) (6,232) 1.33 Net fee and commission income 64,289 65,218 (1.42) In the first half of 2026, the Group’s net fee and commission income was RMB64,289 million, a decrease of RMB929 million, or 1.42% from the first half of 2025. The ratio of net fee and commission income to operating income was 15.08%. Specifically, agency service fees amounted to RMB11,209 million, an increase of RMB1,768 million, or 18.73% over the first half of 2025, mainly due to the rapid growth of income from agency fund and wealth management businesses buoyed by ongoing improvement of quality and expansion of the scope of wealth management services. Consultancy and advisory fees totalled RMB6,492 million, a decrease of RMB793 million, or 10.89% from the first half of 2025, mainly due to lower customer demand in certain industries as compared to the first half of 2025. Income from asset management business was RMB3,388 million, a decrease of RMB2,688 million, or 44.24%, mainly due to the high base in the first half of 2025.
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19 Other Net Non-Interest Income The following table sets forth the composition and change of the Group’s other net non -interest income during the respective periods. (In millions of RMB, except percentages) Six months ended 30 June 2026 Six months ended 30 June 2025 Change (%) Net gain arising from investment securities 20,167 11,691 72.50 Net gain on derecognition of financial assets measured at amortised cost 18,321 9,400 94.90 Net trading gain 3,608 1,854 94.61 Dividend income 2,006 2,648 (24.24) Other operating income, net 6,984 8,385 (16.71) Total other net non-interest income 51,086 33,978 50.35 In the first half of 2026, t he Group’s other net non -interest income was RMB51,086 million, an increase of RMB17,108 million, or 50.35% over the first half of 2025. Specifically, net gain arising from investment securities was RMB20,167 million, an increase of RMB8,476 million over t he first half of 2025, mainly due to the increase in gains on revaluation and trading of equity investments on the back of market fluctuations and asset composition changes. Net gain on derecognition of financial assets measured at amortised cost was RMB18,321 million, an increase of RMB8,921 million over the first half of 2025, mainly due to the increase in income from disposal of bond investments measured at amortised cost. Net trading gain was RMB3,608 million, an increase of RMB1,754 million over the fi rst half of 2025, mainly due to the increase in investment income from trading debt securities driven by market fluctuations and asset composition changes. Dividend income was RMB2,006 million, a decrease of RMB642 million from the first half of 2025. Othe r net operating income was RMB6,984 million, a decrease of RMB1,401 million from the first half of 2025, mainly due to the decrease in gains related to foreign exchange business and net income from other businesses of certain subsidiaries dragged by business changes and market fluctuations. Operating Expenses The following table sets forth the composition and change of the Group’s operating expenses during respective periods. (In millions of RMB, except percentages) Six months ended 30 June 2026 Six months ended 30 June 2025 Change (%) Staff costs 60,377 57,788 4.48 Premises and equipment expenses 13,536 14,498 (6.64) Taxes and surcharges 4,443 3,984 11.52 Others 20,604 19,233 7.13 Total operating expenses 98,960 95,503 3.62 Cost-to-income ratio (%) 22.17 23.72 (1.55) In the first half of 2026, the Group continued to reinforce total cost management and improve expense efficiency. Cost-to-income ratio was 22.17%, a drop of 1.55 percentage points from the first half of 2025, staying at a sound lev el. Operating expenses were RMB98,960 million, an increase of RMB3,457 million, or 3.62% over the first half of 2025. Specifically, staff costs were RMB60,377 million, an increase of RMB2,589 million, or 4.48% over the first half of 2025.
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20 Premises and equipment expenses were RMB13,536 million, a decrease of RMB962 million, or 6.64% from the first half of 2025, mainly due to the decrease in depreciation charges. Taxes and surcharges were RMB4,443 million, an increase of RMB459 million, or 11.52% over the first half of 2025. Other operating expenses were RMB20,604 million, an increase of RMB1,371 million, or 7.13% over the first half of 2025 , mainly due to the increase in technology and marketing expenses. Credit Impairment Losses The following table sets forth the composition and change of the Group’s credit impairment losses during respective periods. (In millions of RMB, except percentages) Six months ended 30 June 2026 Six months ended 30 June 2025 Change (%) Loans and advances to customers 125,344 115,061 8.94 Financial investments 3,983 (1,294) N/A Financial assets measured at amortised cost 2,994 (2,077) N/A Financial assets measured at fair value through other comprehensive income 989 783 26.31 Off-balance sheet credit business (1,245) (1,669) (25.40) Others 1,946 (4,446) N/A Credit impairment losses 130,028 107,652 20.79 In the first half of 2026, the Group’s credit impairment losses were RMB130,028 million, an increase of RMB22,376 million, or 20.79% over the first half of 2025. This was mainly because impairment losses on loans and advances to customers increased by RMB10,283 million over the first half of 2025. Impairment losses on financial investments increased by RMB5,277 million over the first half of 202 5. Specifically, impairment losses on financial assets measured at amortised cost increased by RMB5,071 million over the first half of 2025, and impairment losses on financial assets measured at fair value through other comprehensive income increased by RMB206 million over the first half of 2025. Reversal from impairment losses on off-balance sheet credit business decreased by RMB424 million from the first half of 2025. Other credit impairment losses increased by RMB6,392 million over the first half of 2025. Other Impairment Losses In the first half of 2026, the Group’s other impairment losses w ere RMB2 million, a decrease of RMB8 million from the first half of 2025. Income Tax Expense In the first half of 2026, the Group’s income tax expense was RMB26,303 million, an increase of RMB6,500 million over the first half of 2025. The effective income tax rate was 13.29%, lower than the statutory rate of 25 %. This was mainly because the Group continued to increase its investment in the PRC treasury bonds and local government bonds, and the interest income from the relevant bonds was tax-exempt as stipulated by the tax law.
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21 Analysis by Region The following table sets forth the distribution of the Group’s operating income by region during the respective periods. (In millions of RMB, except percentages) Six months ended 30 June 2026 Six months ended 30 June 2025 Amount % of total Amount % of total Yangtze River Delta 71,595 16.79 63,854 16.55 Pearl River Delta 52,145 12.23 49,088 12.72 Bohai Rim 71,779 16.84 59,144 15.32 Central 62,307 14.62 54,349 14.08 Western 64,095 15.03 56,494 14.64 Northeastern 14,501 3.40 13,227 3.43 Head office 71,660 16.81 76,485 19.82 Overseas 18,251 4.28 13,264 3.44 Operating income 426,333 100.00 385,905 100.00 The following table sets forth the distribution of the Group’s profit before tax by region during the respective periods. (In millions of RMB, except percentages) Six months ended 30 June 2026 Six months ended 30 June 2025 Amount % of total Amount % of total Yangtze River Delta 31,056 15.69 33,048 18.11 Pearl River Delta 21,293 10.76 18,203 9.98 Bohai Rim 37,834 19.11 26,559 14.56 Central 23,733 11.99 13,768 7.54 Western 16,067 8.11 16,305 8.94 Northeastern 3,013 1.52 7,720 4.23 Head office 49,461 24.98 57,646 31.60 Overseas 15,523 7.84 9,192 5.04 Profit before tax 197,980 100.00 182,441 100.00
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22 3.1.2 Statement of Financial Position Analysis Assets The following table sets forth the composition of the Group’s total assets as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 31 December 2024 Amount % of total Amount % of total Amount % of total Gross loans and advances to customers 29,342,776 62.00 27,772,827 60.86 25,843,294 63.70 Allowances for impairment losses at amortised cost (902,666) (1.91) (846,037) (1.85) (802,894) (1.98) Net loans and advances to customers 28,440,110 60.09 26,926,790 59.01 25,040,400 61.72 Financial investments 13,990,922 29.56 12,897,352 28.26 10,683,963 26.33 Cash and deposits with central banks 2,624,659 5.55 3,054,199 6.69 2,571,361 6.34 Deposits and placements with banks and non-bank financial institutions 1,016,826 2.15 1,010,445 2.22 827,407 2.04 Financial assets held under resale agreements 247,776 0.52 856,818 1.88 622,559 1.53 Others1 1,007,951 2.13 886,214 1.94 825,459 2.04 Total assets 47,328,244 100.00 45,631,818 100.00 40,571,149 100.00 1. These comprise precious metals, positive fair value of derivatives, long -term equity investments, fixed assets, construction in progress, land use rights, intangible assets, goodwill, deferred tax assets and other assets. At the end of June 2026, the Group’s total assets stood at RMB47.33 trillion, an increase of RMB1.70 trillion, or 3.72% over the end of 2025. The Group actively promoted high -quality development of the real economy, maintained stable and coordinated growth of assets and liabilities, and continued to optimise the allocation of major asset classes. Net loans and advances to customers increased by RMB1.51 trillion, or 5.62% over the end of 2025 as the Group increased credit supply to key areas such as the “Fiv e Priorities” in finance and new quality productive forces. Financial investments increased by RMB1.09 trillion, or 8.48% over the end of 2025 as the Group supported implementation of proactive fiscal policies, increased subscription to government bonds such as treasury bonds and local government bonds, and facilitated coordinated and efficient allocation of debentures. Cash and deposits with central banks decreased by RMB429,540 million from the end of 2025. Deposits and placements with banks and non -bank financial institutions slightly increased by RMB6,381 million over the end of 2025. Financial assets held under resale agreements decreased by RMB609,042 million from the end of 2025. Accordingly, in the Group’s total assets, the proportion of net loans an d advances to customers increased by 1.08 percentage points to 60.09%, that of financial investments increased by 1.30 percentage points to 29.56%, that of cash and deposits with central banks decreased by 1.14 percentage points to 5.5 5%, that of deposits and placements with banks and non -bank financial institutions decreased by 0.07 percentage points to 2.15%, and that of financial assets held under resale agreements decreased by 1.36 percentage points to 0.52%.
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23 Loans and Advances to Customers The following table sets forth the composition of the Group’s loans and advances to customers as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Amount % of total Amount % of total Corporate loans and advances 17,600,576 59.99 16,469,961 59.30 Short-term loans 4,942,563 16.85 4,515,101 16.26 Medium to long-term loans 12,658,013 43.14 11,954,860 43.04 Personal loans and advances 9,188,235 31.31 9,159,182 32.98 Residential mortgages 5,919,225 20.17 6,054,134 21.80 Personal business loans 1,454,668 4.96 1,315,605 4.74 Credit card loans 934,714 3.18 1,012,246 3.64 Personal consumer loans 806,809 2.75 704,099 2.54 Other personal loans 72,819 0.25 73,098 0.26 Discounted bills 2,498,034 8.51 2,092,713 7.54 Accrued interest 55,931 0.19 50,971 0.18 Gross loans and advances to customers 29,342,776 100.00 27,772,827 100.00 At the end of June 2026, the Group’s gross loans and advances to customers stood at RMB29.34 trillion, an increase of RMB1.57 trillion, or 5.65% over the end of 2025. The Group’s corporate loans and advances totalled RMB17.60 trillion, an increase of RMB1.13 trillion, or 6.86% over the end of 2025. Specifically, short-term loans were RMB4.94 trillion, and medium to long-term loans were RMB 12.66 trillion. For more details, please refer to “Business Review – Corporate Finance Business – Corporate Credit Business” in this report. The Group’s personal loans and advances reached RMB9.19 trillion, an increase of RMB29,053 million, or 0.32% over the end of 2025. Specifically, residential mortgages were RMB5.92 trillion, a decrease of RMB134,909 million, or 2.23% from the end of 2025; personal business loans amounted to RMB1.45 trillion, an increase o f RMB139,063 million, or 10.57% over the end of 2025; credit card loans were RMB934,714 million, a decrease of RMB77,532 million, or 7.66% from the end of 2025; personal consumer loans amounted to RMB806,809 million, an increase of RMB102,710 million, or 14.59% over the end of 2025. For more details, please refer to “Business Review – Personal Finance Business – Personal Credit Business” in this report. The Group’s discounted bills amounted to RMB2.50 trillion, an increase of RMB405,321 million, or 19.37% over the end of 2025.
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24 Distribution of loans and advances by region The following table sets forth the distribution of the Group’s loans and advances by region as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Amount % of total Amount % of total Yangtze River Delta 6,131,793 20.90 5,772,902 20.79 Pearl River Delta 4,554,316 15.52 4,303,152 15.49 Bohai Rim 4,934,947 16.82 4,696,417 16.91 Central 5,086,184 17.33 4,727,097 17.02 Western 5,585,414 19.04 5,273,064 18.99 Northeastern 1,168,199 3.98 1,105,191 3.98 Head office 1,076,783 3.67 1,101,691 3.97 Overseas 749,209 2.55 742,342 2.67 Accrued interest 55,931 0.19 50,971 0.18 Gross loans and advances to customers 29,342,776 100.00 27,772,827 100.00 Distribution of loans and advances by type of collateral The following table sets forth the distribution of the Group’s loans and advances by type of collateral as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Amount % of total Amount % of total Credit loans 14,309,467 48.77 13,224,073 47.62 Guaranteed loans 4,111,937 14.01 3,653,253 13.15 Mortgage loans 9,072,866 30.92 9,125,558 32.86 Pledged loans 1,792,575 6.11 1,718,972 6.19 Accrued interest 55,931 0.19 50,971 0.18 Gross loans and advances to customers 29,342,776 100.00 27,772,827 100.00
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25 Allowances for impairment losses on loans and advances to customers The following table sets forth the movements of the Group’s allowances for impairment losses on loans and advances to customers measured at amortised cost during the respective periods. (In millions of RMB) Six months ended 30 June 2026 Stage 1 Stage 2 Stage 3 Total 1 January 2026 328,800 239,445 277,792 846,037 Transfers: Transfers in/(out) to Stage 1 15,067 (14,129) (938) - Transfers in/(out) to Stage 2 (6,231) 9,430 (3,199) - Transfers in/(out) to Stage 3 (2,518) (24,466) 26,984 - Newly originated or purchased financial assets 113,533 - - 113,533 Transfer out/repayment (80,787) (13,656) (55,054) (149,497) Remeasurements 4,130 49,664 63,913 117,707 Write-offs - - (31,993) (31,993) Recoveries of loans and advances written off - - 6,879 6,879 30 June 2026 371,994 246,288 284,384 902,666 The Group made provisions for impairment losses on loans in line with factors such as macro - economy and credit asset quality as required by the New Financial Instruments Standard. At the end of June 2026, allowances for impairment losses on loans and advances to customers measured at amortised cost were RMB902,666 million. In addition, allowances for impairment losses on discounted bills at fair value through other comprehensive income were RMB 1,900 million. The Group’s allowances to NPLs and allowances to total loans were 238.69% and 3.09%, respectively. The Group adopts a “three-stage” model for impairment based on changes in credit risk since initial recognition or by determining whether the financial instruments are credit -impaired, to estimate the expected credit losses (ECL). For stage 1, financial instruments with no significant increase in credit risk since initial recognition, impairment losses are measured as ECL for the next 12 months. For stage 2, financial instruments with significant increase in credit risk since initial recognition, but not yet credit -impaired, impairment losses are measured as lifetime ECL. For stage 3, financial instruments that are credit impaired on the balance sheet date, impairment losses are measured as lifetime ECL. The Group adhered to substantive risk judgement and sufficiently considered all reasonable and supportable information when assessing whether the credit risk of a financial instrument has increased significantly since initial recognition. The measurement of ECL requires consideration of forward -looking information. The Group developed specific scenarios for ECL measurement by reference to forecast of authoritative institutions at home and abroad and leveraging the capability of internal experts. The Group calculated ECL as the weighted average of the products of probability of default (PD), loss given default (LGD) and exposure at default (EAD) under the optimistic, baseline and pessimistic scenario s, having considered the discount factor. Please refer to Note “Loans and advances to customers” to the financial statements for details of allowances for impairment losses on loans and advances to customers.
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26 Financial Investments The following table sets forth the composition of the Group’s financial investments by measurement as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Amount % of total Amount % of total Financial assets measured at fair value through profit or loss 920,388 6.58 874,994 6.78 Financial assets measured at amortised cost 8,593,174 61.42 7,739,652 60.01 Financial assets measured at fair value through other comprehensive income 4,477,360 32.00 4,282,706 33.21 Financial investments 13,990,922 100.00 12,897,352 100.00 For further details on financial instruments measured at fair value, please refer to Note “Risk management – Fair value of financial instruments” to the financial statements. The following table sets forth the composition of the Group’s financial investments by nature as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Amount % of total Amount % of total Debt securities 13,455,533 96.17 12,430,645 96.38 Equity instruments, funds and others 535,389 3.83 466,707 3.62 Financial investments 13,990,922 100.00 12,897,352 100.00 At the end of June 2026, the Group’s financial investments totalled RMB13.99 trillion, an increase of RMB1.09 trillion, or 8.48% over the end of 2025. Specifically, debt securities increased by RMB1.02 trillion, or 8.24%, and accounted for 96.17% of total financial investments, down 0.21 percentage points from the end of 2025; equity instruments , funds and others increased by RMB68,682 million, and accounted for 3.83% of total financial investments, up 0.21 percentage points over the end of 2025. Debt securities The following table sets forth the composition of the Group’s debt instruments by currency as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Amount % of total Amount % of total RMB 12,721,369 94.54 11,839,548 95.25 USD 436,066 3.24 316,454 2.55 HKD 90,953 0.68 119,922 0.96 Other foreign currencies 207,145 1.54 154,721 1.24 Debt securities 13,455,533 100.00 12,430,645 100.00 At the end of June 2026, total investments in Renminbi denominated debt securities were RMB12.72 trillion, an increase of RMB881,821 million, or 7.45% over the end of 2025. Total
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27 investments in foreign currency denominated debt securities were RMB734,164 million, an increase of RMB143,067 million, or 24.20% over the end of 2025. The following table sets forth the composition of the Group’s debt instruments by issuer as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Amount % of total Amount % of total Government 11,050,174 82.12 9,979,286 80.28 Banks and non-bank financial institutions 963,919 7.16 1,019,464 8.20 Policy banks 757,296 5.63 810,635 6.52 Enterprises 657,380 4.89 551,041 4.43 Central banks 26,764 0.20 70,219 0.57 Debt securities 13,455,533 100.00 12,430,645 100.00 At the end of June 2026, government bonds held by the Group amounted to RMB11.05 trillion, an increase of RMB1.07 trillion, or 10.73% over the end of 2025. Financial debt securities were RMB1.72 trillion, a decrease of RMB108,884 million or 5.95% from the end of 2025. Specifically, financial debt securities issued by banks and non -bank financial institutions were RMB963,919 million, and financial debt securities issued by policy banks were RMB757,296 million, accounting for 56.00% and 44.00% of financial debt securities, respectively. The following table sets forth the top ten financial debt securities held by the Group by par value at the end of the reporting period. (In millions of RMB, except percentages) Par value Annual interest rate (%) Maturity date Allowances for impairment losses1 Policy bank bond issued in 2025 20,178 1.69 2030-08-07 - Policy bank bond issued in 2019 18,928 3.75 2029-01-25 - Policy bank bond issued in 2020 16,450 3.74 2030-11-16 - Policy bank bond issued in 2019 16,120 3.86 2029-05-20 - Commercial bank bond issued in 2025 15,000 1.85 2028-02-28 - Policy bank bond issued in 2021 13,431 3.48 2028-02-04 - Policy bank bond issued in 2019 13,130 3.48 2029-01-08 - Policy bank bond issued in 2021 12,670 3.52 2031-05-24 - Policy bank bond issued in 2026 11,962 1.69 2031-03-11 - Policy bank bond issued in 2020 11,490 3.79 2030-10-26 - 1. Excluding Stage 1 allowances for impairment losses made in accordance with the ECL model.
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28 Repossessed Assets As part of its effort to recover impaired loans and advances to customers, the Group may take over the ownership of underlying assets, through legal actions or voluntary transfer from borrowers, guarantors or third parties, as compensation for losses on loans and advances and interest receivable. At the end of June 2026, the Group’s repossessed assets were RMB856 million, and impairment allowances for repossessed assets were RMB702 million. Please refer to Note “Other assets” to the financial statements for details. Liabilities The followi ng table sets forth the composition of the Group’s total liabilities as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 31 December 2024 Amount % of total Amount % of total Amount % of total Deposits from customers 31,818,419 73.15 30,835,574 73.51 28,713,870 77.13 Deposits and placements from banks and non-bank financial institutions 4,774,177 10.98 4,787,174 11.41 3,315,766 8.91 Debt securities issued 2,835,183 6.52 2,593,524 6.18 2,386,595 6.41 Borrowings from central banks 1,477,901 3.40 1,096,307 2.62 942,594 2.53 Financial assets sold under repurchase agreements 1,450,984 3.34 1,490,932 3.56 739,918 1.99 Others1 1,137,754 2.61 1,142,230 2.72 1,128,441 3.03 Total liabilities 43,494,418 100.00 41,945,741 100.00 37,227,184 100.00 1. These comprise financial liabilities measured at fair value through profit or loss, negative fair value of derivatives, accrued staff costs, taxes payable, provisions, deferred tax liabilities and other liabilities. The Group continued to attract low -cost funds, diversified funding sources, and optimised composition of liabilities to enhance its liability quality management. At the end of June 2026, the Group’s total liabilities were RMB43.49 trillion, an increase of RMB1.55 trillion, or 3.69% over the end of 2025, largely matching the growth of assets. Specifically, deposits from customers were RMB31.82 trillion, an increase of RMB982,845 million, or 3.19% over the end of 2025. Deposits and placements from banks and non-bank financial institutions were RMB4.77 trillion, a decrease of RMB12,997 million, or 0.27% from the end of 2025. Debt securities issued were RMB2.84 trillion, an increase of RMB241,659 million, or 9.32% over the end of 2025, mainly due to expanded issuance of diversified financing instruments such as interbank certificates of deposits and financial debt securities to diversify portfolios of liabilities. Borrowings from central banks were RMB1.48 trillion, an increase of RMB381,594 million , or 34.81% ov er the end of 2025, mainly due to the increase in medium-term lending facilities and structured monetary policy tools. Financial assets sold under repurchase agreements were RMB1.45 trillion, a decrease of RMB39,948 million from the end of 2025. Accordingl y, in the Group’s total liabilities, the proportion of deposits from customers fell by 0.36 percentage points to 73.15% over the end of 2025, that of deposits and placements from banks and non -bank financial institutions dropped by 0.43 percentage points to 10.98%, that of debt securities issued rose by 0.34 percentage points to 6.52%, that of borrowings from central banks rose by 0.78 percentage points to 3.40%, and that of financial assets sold under repurchase agreements dropped by 0.22 percentage points to 3.34%.
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29 Deposits from Customers The following table sets forth the Group’s deposits from customers by product type as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Amount % of total Amount % of total Corporate deposits 12,470,128 39.19 12,146,314 39.39 Demand deposits 6,552,727 20.59 6,524,221 21.16 Time deposits 5,917,401 18.60 5,622,093 18.23 Personal deposits 18,984,192 59.66 18,234,284 59.13 Demand deposits 6,316,400 19.85 6,278,481 20.36 Time deposits 12,667,792 39.81 11,955,803 38.77 Accrued interest 364,099 1.15 454,976 1.48 Total deposits from customers 31,818,419 100.00 30,835,574 100.00 The Group deepened systematic and networked customer acquisition and deposit growth, and enhanced the capability to stabilise and increase deposits, promoting high-quality development of liability business. At the end of June 2026, the Group’s personal deposits stood at RMB18.98 trillion, an increase of RMB749,908 million, or 4.11% over the end of 2025 , and accounted for 59.66% of total deposits from customers, up 0.53 percentage point s, continuously delivering greater contributions; the Group’s corporate deposits were RMB12.47 trillion, an increase of RMB323,814 million, or 2.67% over the end of 2025. The Group’s demand deposits amounted to RMB12.87 trillion, an increase of RMB66,425 million, or 0.52% over the end of 2025, and accounted for 40.44% of total deposits from customers; the Group’s time deposits amounted to RMB18.59 trillion, an increase of RMB1.01 trillion, or 5.73% over the end of 2025, and accounted for 58.41% of total deposits from customers. Distribution of deposits from customers by region The following table sets forth the distribution of the Group’s deposits from customers by region as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Amount % of total Amount % of total Yangtze River Delta 5,689,688 17.88 5,563,983 18.04 Pearl River Delta 4,290,543 13.49 4,291,231 13.92 Bohai Rim 6,199,081 19.48 5,852,260 18.98 Central 6,185,293 19.44 5,908,669 19.16 Western 6,284,122 19.75 6,096,389 19.77 Northeastern 2,234,318 7.02 2,134,904 6.92 Head office 17,305 0.05 14,912 0.05 Overseas 553,970 1.74 518,250 1.68 Accrued interest 364,099 1.15 454,976 1.48 Deposits from customers 31,818,419 100.00 30,835,574 100.00
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30 Total Equity The following table sets forth the composition of the Group’s total equity as at the dates indicated. (In millions of RMB) 30 June 2026 31 December 2025 Share capital 261,600 261,600 Other equity instruments 229,977 199,977 Preference shares 59,977 59,977 Perpetual bonds 170,000 140,000 Capital reserve 229,317 229,113 Other comprehensive income 21,691 20,566 Surplus reserve 434,687 434,687 General reserve 587,285 587,051 Retained earnings 2,045,625 1,930,417 Total equity attributable to equity shareholders of the Bank 3,810,182 3,663,411 Non-controlling interests 23,644 22,666 Total equity 3,833,826 3,686,077 At the end of June 2026, the Group’s total equity was RMB3.83 trillion, an increase of RMB147,749 million, or 4.01% over the end of 2025, mainly due to the increase of RMB115,208 million in retained earnings over the end of 2025. Off-balance Sheet Items The Group’s off -balance sheet items include agency investment and financing services, intermediary services, derivatives, commitments and contingent liabilities. Agency investment and financing services mainly include asset management products and entrusted loans. For details of entrusted loans, ple ase refer to Note “Entrusted lending business” to the financial statements. Intermediary services mainly include assets under custody and agency services. Derivatives mainly include interest rate contracts, exchange rate contracts, precious metals and comm odity contracts. For details on the nominal amounts and fair value of derivatives, please refer to Note “Derivatives and hedge accounting” to the financial statements. Commitments and contingent liabilities mainly include credit commitments, capital commitments, government bond redemption obligations, and outstanding litigations and disputes. Specifically, credit commitments were the largest component, including undrawn loan facilities which were approved and contracted, unused credit card limits, financial guarantees, and letters of credit. At the end of June 2026, the balance of credit commitments was RMB4.31 trillion, an increase of RMB112,911 million, or 2.69% over the end of 2025. Please refer to Note “Commitments and contingent liabilities” to the fina ncial statements for details. The Group continued to adhere to the philosophy of prudent and compliant operations, firmly upholding the bottom line of compliance in development and resolutely implementing regulatory requirements. In accordance with the three principles of “full management coverage, categorised management and risk-based approach”, the Group improved the management rules and processes of off-balance sheet business, enhanced the management capabilities of off-balance sheet business, and cemented the foundation for business development. It continuously strengthened the synergy of on- and off-balance sheet products to satisfy the comprehensive financial service demands of customers, staying committed to serving the real economy . The Group implemented categorised
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31 management according to the development and risk characteristics of off -balance sheet business, and tilted resources towards capital-light and high-return products. It continued to promote product structure optimisation and e nhance intensive management of capital, and created value through services to drive high-quality and sustainable development of its off-balance sheet business. Analysis by Region The following table sets forth the distribution of the Group’s assets by region as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Amount % of total Amount % of total Yangtze River Delta 8,132,208 17.18 7,730,010 16.94 Pearl River Delta 5,683,884 12.01 5,475,521 12.00 Bohai Rim 9,643,923 20.38 8,946,032 19.60 Central 6,546,159 13.83 6,241,522 13.68 Western 6,639,294 14.03 6,417,098 14.06 Northeastern 2,280,341 4.82 2,190,314 4.80 Head office 16,934,175 35.78 16,776,777 36.77 Overseas 1,912,978 4.04 1,881,841 4.12 Elimination and others (10,444,718) (22.07) (10,027,297) (21.97) Total assets 47,328,244 100.00 45,631,818 100.00 3.1.3 Analysis on Cash Flow Statements Cash from Operating Activities Net cash from operating activities was RMB350,683 million, a decrease of RMB905,931 million from the first half of 2025 , mainly due to the large decrease in net increase in deposits from customers and from banks and non-bank financial institutions. Cash Used in Investing Activities Net cash used in investing activities was RMB877,437 million, an increase of RMB46,248 million over the first half of 2025, mainly due to the large increase in purchase of investment securities. Cash from Financing Activities Net cash from financing activities was RMB78,137 million, a decrease of RMB4,329 million from the first half of 2025, mainly due to the large decrease in cash proceeds from issue of shares. 3.1.4 Other Financial Information Significant Accounting Policies and Accounting Estimates Please refer to Note “Basis of preparation and significant accounting policies” to the financial statements for details of the Group’s significant accounting estimates and judgements. Differences between the Financial Statements Prepared under PRC GAAP and Those Prepared Under IFRS Accounting Standards There is no difference in net profit for the six months ended 30 June 202 6 or total equity as at 30 June 2026 between the Group’s consolidated financial statements prepared under PRC GAAP and those prepared under IFRS Accounting Standards.
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32 3.2 BUSINESS REVIEW The Group’s major business segments are corporate finance business, p ersonal finance business, treasury and asset management business, and others including overseas commercial banking business. The following table sets forth the operating income and profit before tax of each major business segment for the periods indicated. (In millions of RMB) Six months ended 30 June 2026 Operating income Profit before tax Amount % of total Amount % of total Corporate finance business 178,654 41.90 75,123 37.95 Personal finance business 177,453 41.62 67,222 33.95 Treasury and asset management business 57,956 13.60 48,207 24.35 Others 12,270 2.88 7,428 3.75 Total 426,333 100.00 197,980 100.00 In the first half of 2026, operating income of the Group’s corporate finance business reached RMB178,654 million, and profit before tax totalled RMB 75,123 million, accounting for 37.95% of the Group’s profit before tax. Operating income of personal finance business reached RMB177,453 million, and profit before tax totalled RMB 67,222 million, accounting for 33.95% of the Group’s profit before tax. Operating income of treasury and asset management business totalled RMB57,956 million, and profit before tax totalled RMB 48,207 million, accounting for 24.35% of the Group’s profit before tax. Operating income of others totalled RMB12,270 million, and profit before tax totalled RMB7,428 million. Special Column: Progress in the “Five Priorities” in finance Technology Finance The Group anchored its aim to becoming a leading bank in technology finance, made significant efforts in technology finance, and deeply embedded financial services into the entire value chain of integrated development of sci -tech innovation and industrial innovation. These efforts contributed to expediting the development of new quality productive forces and achieving greater self-reliance and strength in science and technology. Focusing on the pain points and bottlenecks in the integrated development of sci-tech innovation and indu strial innovation, the Group built a five-pronged technology finance system encompassing customer services, business processes, products and channels, organisational structure, and performance evaluation, thereby advancing the high -quality development of i ts technology finance initiatives. Leveraging a five -tier specialised organisational structure comprising head office, tier -one branches, tier -two branches in key cities, featured sub -branches (outlets), and subsidiaries, the Group established a direct service system for technology finance customers. It developed exclusive service plans to effectively meet the financing needs of sci -tech innovation entities across different development stages. The Group innovatively launched products and services such as th e “Sci-Tech Innovation Loan”, and continuously diversified its technology finance product matrix. It iteratively optimised its “Shanjian Technology” intelligent tool for sci -tech innovation, promoted the integrated application of various evaluation tools, and built a scientific and comprehensive evaluation system for sci-tech innovation. The Group continued to increase financial support for the development of the three international sci -tech innovation centres in Beijing (the Beijing -Tianjin-Hebei region), Shanghai (the Yangtze River Delta region), and the Guangdong -Hong Kong-Macau Greater Bay
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33 Area. It strengthened parent -subsidiary synergy at the group level, fully utilised comprehensive financial service instruments including equity, loans, bonds, insuranc e, and leasing, and systematically advanced a full -chain, full-cycle approach to “investing early, investing in small enterprises, investing for the long term, and investing in hard tech”, so as to build a sustainable sci-tech innovation ecosystem. In the first half of 2026, the Bank underwrote 85 series of sci-tech innovation bonds, with a total underwriting volume of RMB48,774 million. It carried out equity investment business with focus on key areas and links of the modern industrial system, and continuously strengthened financing service supply for emerging industries and future industries. Green Finance The Group upheld the vision of “becoming a world -leading sustainability bank”, actively responded to national strategic deployment for building a Beautiful China, consistently integrated the concept of green and low-carbon transition into operation management, strategic development and corporate culture, and created a diversified service system covering green credit, green bonds, green funds and green inv estment, to further implement the priority of green finance. At the end of June 2026, the Bank’s green loans amounted to RMB6.53 trillion, an increase of RMB536,205 million, or 8.95% over the beginning of 2026. Focusing on the investment and financing needs of green and low-carbon transition, the Group innovated diversified green financing channels. In the first half of 2026, the Bank underwrote 34 series of green non -financial bonds, with an underwriting volume of RMB15,481 million. The Bank issued US $1 billion and RMB3 billion offshore green bonds. It continued to consolidate the responsible investment system of its proprietary bond investment portfolio and channelled more funds into key areas conducive to green and sustainable development of the real econ omy and high -quality issuers with better ESG performance. The average external ESG rating of issuers within the investment portfolios continued to exceed market average. The balance of green leasing assets of CCB Financial Leasing was RMB43,069 million, accounting for 59.56% of its general leasing business. CCB Investment continued to invest in green industries, and implemented green investment projects of RMB48,394 million on a cumulative basis. CCB Principal Asset Management made a total of RMB32,466 million of equity investment in multiple industries such as clean energy, energy conservation and environmental protection, clean production, infrastructure green upgrading, ecological environment, and green services. CCB Life’s investment in green assets amounted to RMB12,154 million. Inclusive Finance Adhering to high -quality development standards, the Group focused on the needs of customer segments such as small and micro businesses and individual business owners, continued to improve its inclusive finance service model and enhance the quality and effectiveness of services for small and micro businesses, and diligently advanced the priority of inclusive finance. The Group steadily expanded the coverage of inclusive finance services. It consistently implemented the financing coordination mechanism to support small and micro businesses and conducted the “visiting thousands of customers” campaign. At the end of June 2026, the Bank’s inclusive loans granted to small and micro businesses amounted to RMB4.09 trillio n, an increase of RMB264,019 million or 6.89% over the end of 2025. The number of loan borrowers increased by 132.7 thousand over the end of 2025 to 3 .82 million. In the first half of 2026, the interest rate of inclusive loans newly granted to small and micro businesses was 2.96%. It fully leveraged digital tools, adhered to differentiated policies for different customer groups, built a comprehensive, proactive, and intelligent risk management system, and maintained stable credit asset quality. The Group promoted deep integration of online and offline services. It continued to update “CCB
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34 Huidongni” platform to provide inclusive finance customers with integrated ec ological services, covering credit financing, comprehensive financial solutions and business management. By the end of June 2026, “CCB Huidongni” platform had attracted 589 million visits and 49.49 million downloads, serving 16.46 million corporate custome rs, and led to services for 3.34 million corporate settlement customers, 1.59 million agency tax payment customers and 637.1 thousand payroll disbursement customers cumulatively. The Bank built an extensive, professional and efficient offline inclusive fin ance service network, with nearly 14 thousand outlets providing inclusive finance services, and over 2,900 featured inclusive finance outlets. The Group continued to update its product and service offerings . It continuously optimised products such as the “ unsecured quick loans”, “secured quick loans”, and “Shanyingdai”, and innovated “Shanjiandai” product, to enhance product adaptability and user satisfaction. It increased efforts in serving small and micro sci -tech enterprises, with the balance of exclusiv e loans including “Shanxindai” and “Shankedai” reaching nearly RMB220 billion with a growth rate of over 29%. It intensified financial supply for rural households, improved the “Yunong” comprehensive service system and saw the balance of “Yunong Loans” exc eed RMB380 billion, with a growth rate of over 13%. The balance of supply chain inclusive loans amounted to RMB223,022 million, an increase of RMB8,973 million over the end of 2025, serving 141.8 thousand inclusive customers along the supply chains. The “C ross-border Quick Loan” series of products cumulatively provided financing support of RMB53,752 million for small and micro foreign trade enterprises. Pension Finance The Group effectively advanced pension finance, and expedited the development of a systematic and featured pension finance system. In terms of supporting government elderly-care initiatives, the Group intensified efforts to expand its services for social security, medical insurance, long -term care insurance, and various pension subsidy funds, and enhanced its capacity to attract policy-based pension funds. The Group piloted the establishment of pension service stations to promote annuity and person al pension policies, and launched value-added pension trust services to satisfy the special care needs of the elderly. In terms of corporate pension, the Group continued to improve the quality and efficiency of services for its customer groups. A t the end of June 2026, the number of corporate pension customers reached 11 thousand, an increase of 33% over the end of 2025, and the amount of corporate pension funds grew by 8%. The Group solidified its edge in the enterprise annuity business. Pillar 2 assets managed by CCB Pension amounted to RMB800,733 million, an increase of 10.70% over the end of 2025. Pension assets under custody of the Bank amounted to RMB2.29 trillion, an increase of 10.84% over the end of 2025. In terms of personal pension, the G roup optimised the “Jianyang’an – Nine Privileges for Senior Customers” personal pension service system to cover customers’ pension needs from prepar ation for retirement, retirement transition, to post -retirement period. Based on the fundamental role of social security cards in public services, the Group vigorously expanded its social security card business. The Group also promoted the high -quality development of personal pension business, with the contribution amount growing steadily. It incorporated savings treasury bonds (book-entry) into the scope of investable products for personal pension. Pension Y -share1 of CCB Principal Asset Management totalled RMB1,260 million, ranking top in the industry. In terms of supporting the silver economy, the Group refin ed its diversified financing and investment methods, and optimised loans for elderly care service projects and loans to elderly care 1 Fund products purchased by investors through personal pension accounts.
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35 businesses. CCB Financial Leasing completed the first finance lease of elderly care equipment. CCB Housing Rental actively expanded investment in senior living real estate. With more financing and investment methods, the Group’s service for the pension industry continued to expand. In terms of pension ecosystem, the Group set up an “Aging Well Lifestyle” section in the CCB Lifestyle and mobile banking Apps. In collaboration with business partners, the Group offered a portfolio of financial products, and non -financial services covering elderly care, healthcare, learning, recreation, and integrated services, to boo st the consumption of senior citizens. The pension finance featured outlets were further integrated with the home and community -based elderly care micro -ecosystem. By prioriti sing the development of flagship outlets, the Group continued to enhance its “specialised services for the senior customers”. Digital Finance The Group strengthened its top -level design for digital finance, formulated the 2026 action plan for digital finance, supported the high -quality development of digital economy, constantly enhanced technological support capabilities, and sped up digital and intelligent transformation. The Group strengthened AI applications and pressed ahead with the development of an intelligent data system. By leveraging digital and intelligent technologies, it ex pedited the comprehensive and systematic optimisation of front, middle, and back offices, enhanced AI agent platform functions, and steadily advanced the implementation of AI technology applications. By the end of June 2026, the generative AI had covered o ver 600 application scenarios of the Group, fully applying to core business areas such as smart marketing, smart customer service, smart investment advisory service, smart operations, smart risk control, and smart management. The Group established a unifie d customer view to enhance customer insight capabilities, and continuously elevated the value of data assets. The Group focused on the development and operation of online platforms, continued to refine the mobile banking user journey, and reinforced online user connectivity and engagement. The Bank’s online personal users reached 592 million, with the user coverage rate up by 0.6 percentage points over the end of 2025. The Bank rolled out the new version of personal mobile banking across the board, constantly enhanced the platform’s financial product capabilities, and boosted the growth of online customers conducting financial transactions. The Bank outperformed its peers in terms of the number of users conducting financial transactions via mobile banking, w hich reached 164 million in the first half of 2026. The Bank deepened e -CNY applications, with the number of e - CNY consumption transactions reaching 85.35 million and the consumption amount reaching RMB7,048 million in the first half of 2026, up by 13.91% and 14.68%, respectively, over the first half of 2025.
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36 3.2.1 Corporate Finance Business Aiming at improving the quality and efficiency of serving the real economy, the Group continued to strengthen the “Four Integrations” and strived to provide customers with comprehensive financial solutions. It diligently advanced the “Five Priorities” in finance, actively supported the development of new quality productive forces, and facilitated the modernisation of industrial systems. The Group implemented the national strategies for major regions, fully supported the 109 major engineering projects under the 15th Five -Year Plan with financial services, and actively seized policy opportunities from the “Two Key Tasks” and “Two Renewals”, to meet the reasonable financing needs of the real economy. It also enhanced digital and intelligent operating capabilities for corporate customers and promoted the intensive high -quality development of corporate finance business. Customer Operation Adhering to a market-oriented and customer-centred approach, the Bank focused on key industry sectors under the 15th Five -Year Plan, conducted tiered and categorised in -depth customer management, and leveraged its integrated and comprehensive business services to achieve high - quality bulk customer expansion and acquisition. It systematically enhanced its comprehensive service capabilities and built differentiated competitive advantages. At the end of June 2026, the number of the Bank’s domestic corporate customers1 reached 14.16 million, an increase of 792.9 thousand over the end of 2025 on a comparable basis. The Bank had 18.91 million corporate RMB settlement accounts, an increase of 1.02 million over the end of 2025. Corporate Credit Business Committed to serving the real economy, the Ban k actively allocated high -quality financial resources to key areas of economic and social development, and effectively enhanced the adaptability and effectiveness of credit services. At the end of June 2026, domestic corporate loans and advances of the Bank were RMB16.82 trillion, an increase of RMB1.13 trillion or 7.19% over the end of 2025, with an NPL ratio of 1.46%. Loans to private enterprises amounted to RMB7.36 trillion, an increase of RMB633,285 million or 9.42% over the end of 2025. Focusing on the new- type industrialisation strategy, the Bank strengthened financial supply, optimised its service system, and vigorously pressed ahead with the “Shanjian Intelligent Manufacturing” comprehensive financial services to support the new industrialisation. At the end of June 2026, loans for manufacturing amounted to RMB4.15 trillion, an increase of RMB631,186 million or 17.95% over the end of 2025. The Bank provided 129.3 thousand enterprises along 5,548 core enterprise industrial chains with a total of RMB659 ,509 million digital supply chain financing support on a cumulative basis in the first half of 2026. The Bank actively implemented national strategies for major regions and coordinated regional development. At the end of June 2026, the increase in RMB corporate loans in the Beijing-Tianjin- Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, and the Chengdu-Chongqing Economic Circle exceeded RMB830 billion, while that in Northeastern, Central and Western regions exceeded RMB630 billion. Institutional Business The Bank closely aligned its institutional business with the fiscal fund flows and enhanced its integrated operating capacity for government customers on all fronts. It focused on key areas such as fiscal revenue and ex penditure, people’s livelihood, and public services, and proactively integrated into the new paradigm of high -quality economic and social development. The quality 1 Calculated in accordance with the latest management metrics.
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37 and efficiency of fiscal customer services improved, with the Bank rated “Excellent” in all t hree comprehensive evaluations by the MOF, covering national treasury centralised payment, non -tax revenue collection, and national treasury special account agency banking. The “Caihuiguan” fiscal fund supervision platform assisted 661 government agencies in improving the efficiency of fiscal fund utilisation and fiscal resource allocation. The Bank assisted with the development of China’s medical insurance convenient payment system by innovating service models including facial recognition, mobile, unified QR code, and credit payments, thereby providing high -quality, efficient, and convenient financial services to medical insurance departments at all levels, participating entities, medical institutions, and insured citizens. Investment Banking Business The B ank continued to deepen its integrated operation model of commercial banking and investment banking, and took multiple measures to enhance the quality and efficiency of serving the real economy. In terms of bond underwriting, the Bank focused on high-quality development. In the first half of 2026, the Bank underwrote the issuance of 453 series of debt financing instruments for non-financial enterprises, with an underwriting volume of RMB268, 678 million. In terms of equity business, the Bank focused on innov ation. Leveraging its subsidiaries with equity investment qualifications such as CCB Private Equity, CCB Trust, and CCB Investment, it served more than 2,000 sci-tech enterprises through investment in target enterprises or target funds. The Bank’s merger a nd acquisition (M&A) loans grew steadily to actively support the transformation and upgrading of the real economy and sci -tech innovation. At the end of June 2026, the Bank’s M&A loans amounted to RMB287,936 million, an increase of RMB21,40 8 million or 8.03% over the end of 2025. In terms of financial advisory service, the Bank continued to strengthen its asset origination capabilities, diversified investment and financing matchmaking scenarios, and upgraded its “FITS ® e Intelligent” matchmaking section to acquire high-value customers. In the first half of 2026, the Bank completed various investment and financing matchmaking advisory businesses with the amount exceeding RMB70 billion. Asset-backed Securitisation Business The Bank actively leveraged securitisation to meet customers’ diverse financing needs. It acted as the lead underwriting bank for the inaugural consumer -themed Quasi -REITs in the interbank market, served as the sole underwriter for the Quasi-REITs backed by multi -asset commercial properties, and underwrote a number of sci-tech innovation and green asset-backed notes (ABNs), supporting local state-owned enterprises in unlocking value from their assets. The Bank prudently carried out credit asset securitisation business. It issued two micro and small enterprise loan asset- backed securities and nine non -performing loan asset -backed securities , with an aggregate issuance size of RMB22,583 million and RMB 6,098 million respectively, in the first half of 2026. International Business The Bank steadily enhanced its capability to participate in international competition, and actively contributed to high-quality development and high-level opening-up. At the end of June 2026, the credit balance of international business 1 was RMB2.03 trilli on, an increase of RMB399,660 million or 24.57% over the end of 2025 on a comparable basis. The Bank continued to press ahead with RMB internationalisation, with cross -border RMB settlement volume reaching RMB4.25 trillion in the first half of 2026. The “C ross-border Quick Loan” series of products cumulatively provided financing support of RMB53,752 million for small and micro foreign trade enterprises. The Bank adhered to the philosophy of “Financing Service + Intelligent Support”, and the loan balance to the “Belt and Road” countries and regions reached RMB73,806 million with integrated 1 According to the latest management metrics, the scope of international business credit balance now has been expanded to include project financing, on-lending, and international syndicated loans.
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38 use of products including cross-border project financing, and cross-border M&A loans. Settlement and Cash Management Business The Bank continued to cement the corporate cus tomer and account foundation, enhance the capabilities of its settlement and cash management products, and improve the customer experience for cash management services. The Bank constantly optimised its corporate account service processes, innovated online modification methods for key corporate account elements, and expanded online channels for account modifications. The self-service bank statement function was further en hanced to allow enrolment via electronic channels including corporate online banking platform, offering customers greater digital access to the service . The Bank improved its domestic cash management product and service offerings, and proactively tailored the specialised “Zhangbutong” ledger management services to address the categorised fund management needs of institutional customers in the judicial and law enforcement, education and other sectors, optimising user experience. It enhanced cash management service capabilities of its overseas operations, optimised product functions such as SWIFT cash management and cross -border cash pooling, and built a globally integrated cash management service network. The Bank launched the “Treasury Cloud” global payment platform, which integrated functions such as global account management, cross -border payment and settlement, and financial exchange trading, to meet the needs of Chinese enterprises expanding overseas for lightweight, agile, and integrated global treasury management. For the bank-side corporate treasury solutions, the Bank continued to expand the suite of host-to-host interfaces to deliver an efficient and seamless connectivity experience. For the customer-side corporate treasury solutions, it stepped up product innovation and marketing efforts, and won the The Asian Banker’s “Best Treasury Management Technology Initiative in China 2026” . The Bank deepened the integrated operation of corporate and personal banking, and leveraged the advantages of its agency collection and bill payment products to effectively raise the efficiency of fund collection for various corporate and retail customers. It further expanded the application and promotion of disbursement products across wider scenarios, effectively meeting the fund distribution needs of various corporate customers. At the end of June 2026, the Bank had 232.8 thousand corporate customers signed up for migrant workers’ payroll services, and made 20.09 million payments with an amount of RMB164,813 million, benefiting 9.87 million migrant workers in the first half of 2026. The Bank continued to improve both the quantity and the quality of payment and settlement products. It constantly pressed ahead with differentiated marketing approaches for different customer segments to effectively meet their settlement needs with products including electronic commercial drafts and corporate settlement cards. 3.2.2 Personal Finance Business The Group consistently practiced the principle of “financial services for the people”, anchored itself to the theme of high -quality development, and proactively adapted to customer needs. Capitalising on AI advancements and in line with the trend of diversified allocation of household wealth, the Group actively boosted consumption and continued to enhance its digital, intelligent, specialised, and collaborative operation system. It fostered primary relationships with personal customers in terms of settlement, investment, and financing in order to build itself into the primary bank for retail customers. Customer Operation Adhering to the “customer-centred” business philosophy, the Bank continued to improve its “tiered, grouped and graded” management system for personal customers, to strengthen comprehensive outreach and precise solution for all personal customers. At the end of June 2026, the number of the Bank’s domestic personal customers reached 791 million, and the personal financial assets
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39 under management by the Bank totalled RMB24.05 trillion, an increase of RMB1.04 trillion over the end of 2025; the Bank’s domestic personal deposits reached RMB18.75 trillion, an increase of RMB729,947 million over the end of 2025. The Bank expanded its tiered management system to accelerate the delivery of inclusive finance services to all customers. For mass customers, the Bank advanced intensive online operations, deepened the integration of business, data, and technology, and coordinated seamless service across online and offline channels. By building a customer operation model integrating service and sales, the Bank expanded the scope of proactive customer operation s. For high-potential customers, the Bank expanded direct online engagement through private domain, and continued to strengthen mid-office capabilities in terms of customer insight and operational support, to meet customers’ comprehensive financial needs. For high -value customers, the Bank continued to strengthen the team development, refined management, and digital and intelligent capabilities of the account manager s. Focusing on the wealth management service journeys for personal customers, the Bank diversified asset allocation and deepened customer engagement to elevate the quality and efficiency of in-depth services. For private banking customers, the Bank enhanced the tiered operation framework and upgraded customer services to improve its professional leadership in asset allocation, family advisory services, and entrepreneur services. The Bank strengthened its grouped collaborative services to improve its integrated comprehensive services. The Bank strengthened the collaboration between corporate and personal businesses. It increased efforts to acquire custo mers in terms of agency payroll service, social security cards, merchants, entrepreneurs, provident fund service, and agency payment service, while continuously upgrading systems and platforms and enhancing collaboration mechanisms for higher comprehensive service capabilities. The Bank reinforced the synergy between assets and liabilities. It delivered tiered services for mortgage borrowers and inclusive finance customers, and expanded the coverage of its wealth management services. The Bank strengthened t he collaboration of domestic and overseas operations. Leveraging CCB Asia ’s edges , the Bank satisfied customer needs such as cross-border payment and settlement and global asset allocation while adhering to compliance. It strengthened regional collaboration. In addition to expanding its footprint in county areas, the Bank integrated regional marketing services with focus on areas including the Beijing- Tianjin-Hebei region, the Yangtze River Delta, the Pearl River Delta, and the Chengdu-Chongqing Economic Circle. The Bank optimised its graded benefits experience to solidify existing customer relationships. It continued to promote and operate the “CCB Long Points” brand with more premium benefits. Leveraging the “Wealth Membership” graded service system for pe rsonal customers, the Bank continuously rewarded its customers, providing them with a steady and lasting benefits experience. The Bank upgraded the digital and intelligent management tools to enhance customer service efficiency. It systematically advanced the application of AI agents in personal customer service scenarios, and launched the personal AI assistant as an AI -native application which enabled efficient integration of customer operation workflows under the “conversational banking” model. Focusing on three core scenarios including customer insights, wealth management, and conversational assistance, the Bank developed high -quality and reusable business skills , and continued to elevate the intelligence and automation of the tools, facilitating account managers to deliver more precise insight, more professional services, and faster responses. Personal Credit Business The Bank adhered to the principle of balanced development of “volume, pricing and risk”. At the end of June 2026, the Bank’s domestic personal loans and advances amounted to RMB9.07 trillion, an increase of RMB21,252 million or 0.23% over the end of 2025. The Bank’s asset quality of
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40 personal loans remained stable, with the overall risks under control. In terms of residential mortgage business, the Bank proactively followed national policies and regulatory requirements, and contributed to the stable and healthy development of the real estate market by fully satisfying residents’ demand for first homes and better housing with high -quality services and efficient processes . At the end of June 2026, the Bank’s domestic residential mortgages reached RMB5.86 trillion. The Bank’s capacity to support residential mort gages continued to improve. In terms of personal business loans, the Bank focused on serving the real economy, and actively expanded personal business customers such as individual businesses, and small and micro business owners. It innovated and refined it s product and service offerings , optimised and promoted core products such as “unsecured quick loans for personal business” and “secured quick loans for personal business”, and actively implemented interest subsidy policies for loans granted to business entities in the service industry. The Bank accelerated the expansion of personal business loans at the county level, and achieved rapid growth in “Yunong Loan s”, with a loan growth rate over 13%. In terms of personal consumer loan business, the Bank actively implemented national policy deployments to boost consumption, and continuously expanded the coverage of its consumer finance services. In order to support residents’ diverse consumption financing needs, it continued to increase supply of consumer credit, optimise and enhance product and service offerings , and fortify the foundation for risk prevention and control. At the end of June 2026, the Bank’s domestic personal consumer loans amounted to RMB781,773 million, an increase of RMB98,599 million or 14.43% over the end of 2025. In terms of credit card loan business, the Bank adhered to national strategic guidance of expanding domestic demand. It actively collaborated with government departments to effectively channel policy benefits such as “fiscal interest subsidies” and “Trade -ins” program mes. The Bank increased its support for consumption of new energy vehicles , continued to advance the cooperation of the head office with headquarters of mainstream automotive brands, and facilitated the energy transition in the auto consumption market. At the end of June 2026, the Bank’s domestic credit card loans totalled RMB931,854 million, staying top among peers. Personal Payments Centred on retail customers’ account and settlement needs, the Bank focused on fund collec tion and payment and high-frequency usage scenarios to enhance account service capabilities. It rolled out promotional campaigns for diverse scenarios including public transit, cultural and tourism ticketing, and supermarkets and convenience stores, effectively stimulating consumer transactions. At the end of June 2026, the Bank had 1,499 million personal settlement accounts, and issued 1,272 million debit cards. In the first half of 2026, the consumer spending volume of debit cards reached RMB11.85 trillion, and the number of transactions reached 30,276 million. In terms of merchant businesses, the Bank actively implemented national policies to boost consumption, and facilitated the integrated operation of corporate and personal businesses to build a comprehensive service system for chain merchant groups. At the end of June 2026, the Bank had 6.17 million card acquiring merchants, with a card acquiring transaction volume of RMB1.79 trillion in the first half of 2026. In terms of credit card business, t he Bank focused on building its product system. To address the diverse needs of key customer segments, including young customers, car owners, and cross-border users, the Bank continued to diversify its product offerings by innovatively launching new products such as Long Card Ant Treasure Co -branded Credit Card, Long Card JD Co -branded
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41 Credit Card, Long Card Diamond Credit Card (Amex Edition), and Long Card FIFA World Cup Credit Card (USA/Canada/Mexico Edition). It expanded instalment solutions for vehicle purchasing and home renovation. The Bank focused on the bill instalment and merchant instalment programmes, and channelled “fiscal interest subsidies” and “Trade -ins” policy benefits to its customers, unlocking consumption potentials. Capitalising on the upgrade of service consumption, it carried out diversified marketing activities, and built the “Explore China with Benefits” cultural and tourism consumption brand, to drive consumer engagement and transaction growth. At the end of June 2026, the cumulative number of credit card customers and credit cards issued reached 100 million and 124 million respectively. The transaction volume of credit cards totalled RMB1.16 trillion in the first half of 2026. Wealth Management Aligning with the trend of diversified allocation of household wealth, the Bank persistently deepened its wealth management strategy. Under the professional guidance of its Wealth Management Investment Decision-making Committee and Agency Services Committee, the Bank continued to refine its wealth management service system and enhance service awareness and efficiency to meet the needs for wealth growth of personal customers. At the end of June 2026, the Bank’s investment and wealth management size amounted to RMB5.30 trillion. The number of wealth management customers increased by 5.57 million over the end of 202 5. The Bank strengthened its wealth investment research capabilities. Focusing on global asset allocation and industry strategies, it enhanced the capability of niche market research to empower the frontline professionals, and diversified customer -facing research scenarios by publishing CCB Wealth Weekly. The Bank enhan ced its product supply capabilities. It put in place an open WMP shelf, actively introducing and customi sing high -quality products across the market . It launched the “Long Ying” mutual fund series, pressing ahead with the allocation of steady investment products. It innovated WMPs for key customers such as agency payroll service customers, and improved personalised service experience. Furthermore, the Bank refined its asset allocation framework by upgrading asset allocation system tools with investment port folios as the core, and enhanced its closed-loop service model of “professional allocation – quality product selection – customer matching”, fully unlocking the professional value of wealth management. Private Banking The Bank focused on building professional capabilities, and upgraded its operating model so as to comprehensively enhance customer experience and operating quality and efficiency of private banking. The number of private banking customers and their assets under management maintained double-digit growth. Focusing on customers’ core needs across the “individual – family – enterprise – society” spectrum, the Bank comprehensively expanded and deepened “professional service, quality service, and trust -based service”. It continued to outperform its peers in terms of agency sales of private funds and family advisory services, and the size of family advisory services exceeded RMB200 billion. It launched an upgraded comprehensive service for entrepreneurs, optimised the spatial layout and service efficiency of entrepreneur studios, and proactively fostered new integrated operation of corporate and personal businesses to better serve entrepreneurs. It developed a digital -intelligent AI agent for private banking services , and expedited the transformation of its digital and intelligent private banking operation system. The Bank strengthened the development of its professional t eams, and reinforced risk and compliance management, to safeguard the stable operation of various businesses. Entrusted Housing Finance Business Aligning with the reform direction of the housing provident fund system, the Bank delivered comprehensive financial services to housing provident fund centr es, contributing employers, and
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42 individual contributors, to support housi ng consumption and meet people’s housing needs. In collaboration with housing provident fund centres, the Bank expanded the coverage of its housing provident fund contribution services for the employers and flexible worker s, enhanced the convenience of withdrawals, and strengthened its one-stop service and cross-regional processing capabilities for housing provident fund loans, raising the overall service quality and efficiency. At the end of June 2026, the housing fund deposits of the Bank were RMB1.86 tri llion, and the residential provident fund loans stood at RMB3.01 trillion. 3.2.3 Treasury and Asset Management Business Adhering to the market-oriented and specialised development direction, the Group fully integrated its treasury and asset management business into the customer and product service system, and enhanced the quality and efficiency of its capital market services. It delivered high-quality services to support national strategies, and continued to enhance the value creation and sustainable development capabilities of financial market business. Capitalising on the opportunit y of development of Shanghai and Hong Kong international financial cent res, the Group strongly supported the construction of the Shanghai Gold Exchange International Board and the Hong Kong Gold Trading Cent re markets. It established a comprehensive financial service system covering full lifecycle and multi -scenario needs of financial institution customers , further enhancing its capability of integrated comprehensive operation. In addition, it strengthened high-quality asset management product offerings to provide customers with diversified investment and financing solutions. Building on the positioning of custody as a key financial infrastruc ture, the Group pressed ahead with enhancing the quality and efficiency of its professional custody service system. Financial Market Business In terms of financial market business, the Bank adhered to the concept of high-quality development, and persevered in seeking progress while maintaining stability. It continued to enhance its capability of value creation and sustainable development, and effectively controlled various risks while steadily advancing its business development. Money Market Business The Bank utilised a combination of money market tools to ensure ample liquidity. It fulfilled its responsibilities as a large bank by actively carrying out open market operations, and participating in the implementation of new tools including overnight reverse r epos. The Bank continued to provide liquidity support to small and medium -sized financial institutions, and further expanded the scope of counterparties. The Bank also carried out repurchase transactions with non -bank financial institutions under the PBOC swap facilities. Its transaction volume ranked top in the RMB money market. The Bank controlled the pace of its issuance of negotiable certificates of deposits so as to effectively supplement stable managed liabilities. At the end of June 2026, the balance of interbank certificates of deposits issued by the Bank was RMB1.42 trillion. Bond Business The Bank strongly supported the implementation of proactive fiscal policies and the financing needs of the real economy. In the first half of 2026, the Bank proac tively increased investment in bond assets in response to new demands arising from changes in social financing patterns. Through bond investments the Bank actively served key sectors such as sci-tech innovation, green and low- carbon development, and private economy, enhancing its capability to serve the real economy. In the first half of 2026, the Bank actively responded to complex market changes by strengthening proactive management of bond portfolios and optimising the pace of investment, so as to enhance the foresightedness and flexibility of its investment strategies. T he Bank’s total investments in RMB-denominated bonds in the primary market amounted to RMB1.70 trillion, ranking top in the
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43 market. The Bank proactively expanded over-the-counter (OTC) bond business, supported reforms in the multi-tiered bond market, empowered small and medium -sized bond investors, and continuously enhanced the functions of China-UK OTC bond product. At the end of June 2026, t he balance of corporate customers’ OTC bonds under custody increased by 40.99% over the end of 2025. Financial Market Trading Business The Bank actively promoted the concept of exchange rate risk neutrality , and enhanced the long- term mechanism for exchange risk management services. The Bank launched promotional campaigns relating to exchange rate risk hedging in light of characteristics of regional economy and operating profiles of foreign-related enterprises. It fully implemented one-on-one specialised consulting at premises of micro, small and medium-sized enterprises. At the end of June 2026, the Bank’s “We Trade” businesses had cumulatively served 2,245 small and micro businesses, with a transaction volume of US$2.03 billion in the first half of 2026. The Bank continued to optimise its online channel of treasury business to facilitate customer transactions. It also provided comprehensive solutions to meet customers’ fund management needs, and enhanced cust omer trading service capabilities. In the first half of 2026, the number of the Bank’s active trading customers continued to increase, and the customer -related foreign exchange sale and purchase volume increased by 41.44% year on year. Precious Metals and Commodities Business The Bank actively participated in the internationali sation of the gold market, and strongly supported the construction of the Shanghai Gold Exchange International Board and the Hong Kong Gold Trading Cent re markets. The Bank improved i ts gold trading system, and strengthened its active trading. It deepened its business along the whole chain of gold industry , vigorously developed corporate gold leasing and derivatives trading , and prudently expanded its gold accumulation business to satisfy customers’ asset allocation needs. At the end of June 2026, the Bank’s domestic precious metal assets and placements with banks and non -bank financial institutions amounted to RMB343,418 million. In addition, through parent-subsidiary synergy, the Bank served key customers leading in the resource-based and manufacturing sectors, and provided price risk management tools for businesses and farmers. In the first half of 2026, the Bank helped with hedging of agricultural products of RMB5,347 million on a cumulative basis. Asset Management Business The Group focused on serving direct financing and diverse wealth management needs , and continued to advance its integrated operation. On the customer side, the Group focused on corporate customers’ wealth management demand, continuously refined its collaborative marketing mechanism, strengthened direct operation and management, and provided tailor -made solutions for key customers. On the asset side, the Group constantly improved the quality and efficiency of its asset management business in serving the real economy, and focused on increasing investment support in areas such as sci-tech innovation, and green development. On the product side, the Group continued to enhance its asset management product lines, and strengthened the supply of high-quality products. At the end of June 2026, the Group’s asset management business size reached RMB7.35 trillion, of which the size of discretionary mandate was RMB5.42 trillion. For more data on the asset management sizes of the subsidiaries, please refer to “Integrated Operation Subsidiaries”. Financial Institutional Business The Bank continued to foster a robust interbank ecosystem, deepened the graded, tiered and
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44 categorised management of financial institution customers, established a comprehensive financial service system covering full lifecycle and multi-scenario needs of financial institution customers, and enhanced its capability of integrated comprehensive operation for financial institution customers. The Bank refined its services for financial market infrastructure customers , honoured with 24 awards including “Excellent Clearing Member” by the Shanghai Cl earing House. The Bank continued to press ahead with the integrated operation of bills, and improved the capabilities of the bill business to serve the real economy and generate value by consolidating customer base and strengthening active trading . The int erbank service platform “Shanjiantongxing” built diversified ecosystem scenarios for financial institution customers. Through “single-point access, integrated services, and one -stop contracting”, it enhanced online comprehensive service capabilities and fo stered an interbank ecosystem. By the end of June 2026, the platform had attracted more than 3.45 million visits, and 2,266 registered users, and granted RMB13.31 trillion on a cumulative basis. The total number of securities customers for the third-party security custody services of trading settlement funds exceeded 100 million, with the amount of funds under custody reaching RMB884,558 million. The total number of securities customers and the total amount of trading settlement funds remained top among peers. Asset Custody Services The Bank continued to build itself into a leading custodian, while actively serving the real economy. It took custody of the first public REITs for commercial real estate, social security sci - tech innovation fund, provincial sci-tech innovation fund of funds, and multiple sci -tech industry funds. The Bank actively responded to the national strategy of pension finance with the number of its enterprise annuity custody customers up by 1,079, and won bids for 19 single enterprise annuity plans. It enhanced the “SMART Custody” platform, delivering a customer data service system integrating operation, trading, and investment. It reinforced internal control and risk management, and persisted in safe operation. As a result, t he compliance standard of its custody business rose continuously. At the end of June 2026, in accordance with related standards specified in the Administrative Measures for the Supervision of Commercial Banks’ Custody Business (Trial) , assets under custody of the Bank’s domestic entities amounted to RMB24.45 trillion. Specifically, mutual fund, insurance, WMP, trust, and pension assets under custody were RMB4.86 trillion, RMB8.70 trillion, RMB2.28 trillion, RMB3.51 trillion and RMB2.29 trillion, respectively. 3.2.4 Overseas Commercial Banking Business At the end of June 2026, the Group’s overseas commercial banking institutions (including 20 tier- one branches and six subsidiaries) , covering 28 countries and regions across six continents, saw stable asset growth and continuous improvement in operating quality and efficiency. The Group steadily pressed ahead with the integration of RMB and foreign currencies, continued to deepen the regional coordinated development, and constantly enhanced i ts comprehensive service capabilities. With stable credit asset quality and continuous enhancement in compliance management, the overall risk indicators remained under control. The overseas commercial banking institutions enhanced their operating performance steadily, achieving a net profit of RMB 9,513 million in the first half of 2026. Overseas Branches of the Bank The Bank had 20 tier-one overseas branches, i.e. Hong Kong Branch, Singapore Branch, Frankfurt Branch, Johannesburg Branch, Tokyo Branch, Seoul Branch, London Branch, New York Branch, Ho Chi Minh City Branch, Sydney Branch, D IFC Branch, Taipei Branch, Luxembourg Branch, Macau Branch, New Zealand Branch, Toronto Branch, Zurich Branch, Chile Branch, Labuan
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45 Branch, and Astana Branch. In the first half of 2026, the overseas branches of the Bank saw steady growth in asset s with stable improvement in operating income and profitability, and achieved a net profit of RMB3,936 million. CCB Asia China Construction Bank (Asia) Corporation Limited is a licensed bank registered in Hong Kong with an issued and fully paid capital of HK$6,511 million and RMB17.6 billion. CCB Asia is the Group’s full-service integrated commercial banking platform in Hong Kong, with its service scope centred on the Guangdong -Hong Kong -Macau Greater Bay Area, focusing on expanding businesses in the Chinese mainland and members of RCEP, while extending to parts of the Middle East and Centra l Asia. CCB Asia has traditional advantages in providing professional financial services such as overseas syndicated loans and structured finance , and has rich experience in corporate finance business, including international settlement, trade finance, fin ancial market trading, financial advisory, green finance and trust agency services. Its targeted customers include local Blue -Chip and large Red -Chip companies, large Chinese enterprises, multinational corporations and premium local customers. CCB Asia has 28 outlets, and is also the Group’s service platform for retail and small and medium -sized enterprises in Hong Kong. At the end of June 2026, total assets of CCB Asia amounted to RMB 533,952 million, and shareholders’ equity was RMB94,971 million; net profit in the first half of 2026 was RMB5,272 million. CCB Russia China Construction Bank (Russia) Limited, established in Russia in 2013, is a wholly -owned subsidiary of the Bank, with a registered capital of RUB4.2 billion. CCB Russia holds a comprehensive banking license issued by the Central Bank of Russia. It is mainly engaged in corporate deposits and loans, international settlement and trade finance. At the end of June 2026, total assets of CCB Russia amounted to RMB 12,016 million, and shareholders’ equity was RMB1,486 million; net profit in the first half of 2026 was RMB136 million. CCB Europe China Construction Bank (Europe) S.A., established in Luxembourg in 2013, is a wholly -owned subsidiary of the Bank, with a registered capital of EUR550 million. CCB Europe has established branches in Paris, Amsterdam, Barcelona, Milan, Warsaw and Hungary. CCB Europe mainly provides services to large and medium -sized enterprises in Europe as well as European multinational enterprises in China. It i s mainly engaged in corporate deposits and loans, international settlement, and cross-border financial market trading. At the end of June 2026, total assets of CCB Europe amounted to RMB26,406 million, and shareholders’ equity was RMB4,132 million; net profit in the first half of 2026 was RMB31 million. CCB New Zealand China Construction Bank (New Zealand) Limited, established in New Zealand in 2014, is a wholly-owned subsidiary of the Bank, with a registered capital of NZD199 million. CCB New Zealand holds a wholesale and retail banking license, and offers all -round and high -quality financial services, including corporate loans, retail deposits and loans, trade finance, financial markets, and settlement and clearing. At the end of June 2026, total assets of CCB New Zealand amounted to RMB11,977 million, and shareholders’ equity was RMB 1,452 million; net profit in the first half of 2026 was RMB48 million. CCB Indonesia PT Bank China Construction Bank Indonesia Tbk is a multi -licensed commercial bank listed on the Indonesia Stock Exchange. CCB Indonesia has 70 branches and sub -branches in Indonesia.
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46 The Bank completed the acquisition of 60% equity in PT Bank Windu Kentjana International Tbk in 2016 and renamed it PT Bank China Construction Bank Indonesia Tbk in 2017. CCB Indonesia has a registered capital of IDR3.79 trillion. Seizing strategic opportunities including the Belt and Road Initiative, CCB Indonesia delves into the financial needs of Chinese enterprises expanding overseas, and provides in-depth services to local Indonesian companies, with focus on corporate banking, trade finance, infrastructure finance, and foreign exchange settlement. At the end of June 2026, total assets of CCB Indonesia amounted to RMB 14,889 million, and shareholders’ equity was RMB2,761 million; net profit in the first half of 2026 was RMB63 million. CCB Malaysia China Construction Bank (Malaysia) Berhad, established in Malaysia in 2016, is a wholly-owned subsidiary of the Bank, with a registered capital of MYR822.6 million. As a licensed commercial bank, CCB Malaysia provides various financial services, including global credit granting for large local infrastructure projects in Malaysia, and project finance, trade finance, clearing in multiple currencies and cross-border financial market trading for enterprises engaging in Sino -Malaysian bilateral trade. At the end of June 2026, total assets of CCB Malaysia amounted to RMB 19,542 million, and shareholders’ equity was RMB 1,748 million; net profit in the first half of 2026 was RMB27 million. 3.2.5 Integrated Operation Subsidiaries The Group has 17 tier-one integrated operation subsidiaries under direct management of the head office in various business segments, including corporate finance, personal finance, treasury and asset management, and others. Actively aligning with the positioning of “strategic coordination, sound risk control, and commercial sustainability”, the integrated operation subsidiaries focused on their main responsibilities and primary businesses, optimised supply of products and services, kept improving their comprehensive customer service capabilities as well as the quality and efficiency of serving the real economy. They achieved steady business growth and robust development on the whole. At the end of June 2026, t otal assets of the integrated operation subsidiaries were RMB908,140 million, and net profit in the first half of 2026 reached RMB18,200 million. Corporate Finance Business Segment CCB Financial Leasing CCB Financial Leasing Co., Ltd., established in 2007, is a wholly-owned subsidiary of the Bank, with a registered capital of RMB11.0 billion. It is mainly engaged in finance leasing, transfer and purchase of finance lease assets, and fixed-income investment. CCB Financial Leasing focused on its main responsibilities and primary businesses, and gave play to its asset-based financing features. It actively explored business innovation and effectively promoted the transformation of the company, so as to constantly improve the quality and efficiency of serving the real economy. At the end of June 2026, total assets of CCB Financial Leasing amounted to RMB184,466 million, and shareholders’ equity was RMB34,512 million; net profit in the first half of 2026 was RMB2,409 million. CCB P&C Insurance CCB Property & Casualty Insurance Co., Ltd. was established in 2016 with a registered capital of RMB1.0 billion. CCB Life, Ningxia Communications Investment Group Co., Ltd. and Yinchuan Tonglian Capital Investment and Operation Group Co., Ltd. hold 90.20%, 4.90% and 4.90% of its shares, respectively. It is mainly engaged in motor vehicle insurance, insurance for business and household property as well as construction and engineering, liability insurance, hull and cargo
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47 insurance, short -term health and accid ental injury insurance, and reinsurance of the above - mentioned offerings. CCB P&C Insurance witnessed steady business development. Under the new financial instruments standard and new insurance contracts standard, at the end of June 2026, total assets of CCB P&C Insurance reached RMB1,489 million, and shareholders’ equity was RMB501 million; net profit in the first half of 2026 was RMB25 million. CCB Consulting CCB Engineering Consulting Co., Ltd. is a wholly -owned subsidiary acquired by CCB International Capital Management (Tianjin) Co., Ltd. in 2016, with a registered capital of RMB51 million. The previous name, CCB Cost Consulting Co., Ltd ., was changed to the present one in 2018. CCB International (China) Co., Ltd., a wholly-owned subsidiary of CCB International, holds 100% shares of CCB International Capital Management (Tianjin) Co., Ltd. CCB Consulting is mainly engaged in cost consulting, whole -process engineering consulting, project management, investment consulting, and bidding agency services. Building on its traditional competitive edge in cost consulting, CCB Consulting expanded product lines, optimised its offerings, and strove to build core competitiveness of “financial consulting + engineering consulting”. At the end of June 2026, total assets o f CCB Consulting amounted to RMB1,464 million, and shareholders’ equity was RMB486 million; net profit in the first half of 2026 was RMB42 million. CCB Investment CCB Financial Asset Investment Co., Ltd., a wholly -owned subsidiary of the Bank, was established in 2017 with a registered capital of RMB27 billion. It is mainly engaged in debt -to- equity swaps and relevant supporting businesses. CCB Investment f ocused on its main responsibilities and primary businesses of market -oriented debt -to-equity swaps, and helped enterprises to control leverage, deepen reforms, and enhance quality and efficiency, so as to promote economic transformation and upgrading and optimise industrial structures. It also actively and steadi ly advanced equity investment pilot business to facilitate the growth of sci -tech enterprises and cultivate new quality productive forces. At the end of June 2026, total assets of CCB Investment amounted to RMB132,369 million, and shareholders’ equity was RMB53,963 million; net profit in the first half of 2026 was RMB7,129 million. CCB Private Equity CCB Private Equity Investment Management Co., Ltd. was established in 2019 with a registered capital of RMB100 million. CCB Life Insurance Asset Management Com pany Limited holds 100% of its shares. CCB Life and CCB International (China) Co., Ltd. (a wholly-owned subsidiary of CCB International) hold 80.10% and 19.90% shares of CCB Life Insurance Asset Management Company Limited, respectively. CCB Private Equity is mainly engaged in private equity investment and management of national strategic emerging industry development funds and other private equity funds. At the end of June 2026, assets managed by CCB Private Equity reached RMB21,296 million, total assets of CCB Private Equity amounted to RMB288 million, and shareholders’ equity was RMB120 million; net profit in the first half of 2026 was RMB23 million. CCB International CCB International (Holdings) Limited, a wholly -owned subsidiary of the Bank in Hong Kong, was established in 2004 with a registered capital of US$601 million. Through its subsidiaries it offers investment banking related services, including sponsoring and underwriting of public offerings, corporate mergers and acquisitions and restructuring, d irect investment, asset management, securities brokerage and market research. CCB International leverages its strengths in cross-border financial market services to provide customers with a full spectrum of investment and financing services across the enti re value chain of investment banking. At the end of June
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48 2026, total assets of CCB International amounted to RMB82,399 million, and shareholders’ equity was RMB10,849 million; net profit in the first half of 2026 was RMB2,808 million.1 Personal Finance Business Segment Sino-German Bausparkasse Sino-German Bausparkasse Co., Ltd. was established in 2004 with a registered capital of RMB2.0 billion. The Bank and Bausparkasse Schwaebisch Hall AG hold 75.10% and 24.90% of its shares, respectively. As a specialised commercial bank committed to serving the housing finance sector, Sino-German Bausparkasse is mainly engaged in housing savings deposits and loans, residential mortgages, and government-subsidised real estate development loans supported by state policies. Sino-German Bausparkasse achieved steady business development, and the sales of housing savings products reached RMB27,052 million in the first half of 2026. At the end of June 2026, total assets of Sino -German Bausparkasse amounted to RMB41,08 6 million, and shareholders’ equity was RMB3,159 million; net profit in the first half of 2026 was RMB11 million. CCB Life CCB Life Insurance Co., Ltd. is a life insurance subsidiary invested and controlled by the Bank in 2011 with a registered capital of RMB7,120 million. The Bank, KGI Life Insurance Co., Ltd., the National Council for Social Security Fund, Shanghai Jin Jiang International Investment and Management Company Limited, Shanghai China-Sunlight Investment Co., Ltd., and China Jianyin Investment L imited hold 51%, 19.90%, 16.14%, 4.90%, 4.85% and 3.21% of its shares, respectively. It is mainly engaged in personal insurance such as life, health, accidental injury insurance and reinsurance of the above -mentioned offerings. CCB Life deepened business transformation and continued to optimise its business structure. Under the New Financial Instruments Standard and New Insurance Contracts Standard, at the end of June 2026, total assets of CCB Life were RMB358,618 million, and shareholders’ equity was RMB7, 923 million; net profit in the first half of 2026 was RMB3,179 million.2 CCB Housing CCB Housing Services Co., Ltd. was established in 2018 with a registered capital of RMB1,196 million. CCB Dingteng (Shanghai) Investment Management Co., Ltd. and Shanghai Aijian Trust Co., Ltd. hold 75.25% and 24.75% of its shares, respectively. CCB Intern ational Innovative Investment Limited, a wholly-owned subsidiary established in Hong Kong by CCB International, holds 100% shares of CCB Dingteng (Shanghai) Investment Management Co., Ltd. CCB Housing is mainly engaged in housing rental business. CCB Housi ng continuously optimised its housing rental ecosystem, further cooperated with the parent bank to serve customers, and met people’s housing needs with its “CCB Home” platform. At the end of June 2026, total assets of CCB Housing were RMB9,133 million, and shareholders’ equity was RMB312 million; net profit in the first half of 2026 was RMB20 million. CCB Consumer Finance CCB Consumer Finance Co., Ltd. was established in 2023 with a registered capital of RMB7.2 billion. The Bank, Beijing State-owned Assets Management Co., Ltd. and Wangfujing Group Co., Ltd. hold 83.33%, 11.11% and 5.56% of its shares, respectively. CCB Consumer Finance is mainly engaged in personal petty consumer loans. CCB Consumer Finance focused on its specialised function for consumer cr edit, enhanced the effectiveness of inclusive finance services, and supported the expansion of domestic demand and consumption promotion. At the end of June 2026, 1 The data for CCB International includes CCB FinTech, CCB Housing and CCB Consulting. 2 The data for CCB Life includes CCB P&C Insurance and CCB Private Equity.
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49 total assets of CCB Consumer Finance were RMB17,968 million, and shareholders’ equity was RMB7,209 million; net profit in the first half of 2026 was RMB37 million. Treasury and Asset Management Business Segment CCB Principal Asset Management CCB Principal Asset Management Co., Ltd. was established in 2005 with a registered capital of RMB200 millio n. The Bank, Principal Financial Services, Inc. and China Huadian Industry - Finance Holdings Company Limited hold 65%, 25% and 10% of its shares, respectively. It is engaged in the raising and selling of funds, and asset management. CCB Principal Asset Management stayed committed to prudent operation , and continued to enhance its professional capabilities and quality and efficiency of services. At the end of June 2026, assets managed by CCB Principal Asset Management reached RMB1.44 trillion, total assets of CCB Principal Asset Management amounted to RMB11,843 million, and shareholders’ equity was RMB9,977 million; net profit in the first half of 2026 was RMB517 million. CCB Trust CCB Trust Co., Ltd. is a trust subsidiary invested and controlled by the Bank i n 2009 with a registered capital of RMB10.5 billion. The Bank and Hefei Xingtai Financial Holding (Group) Co., Ltd. hold 67% and 33% of its shares, respectively. CCB Trust was primarily engaged in trust and proprietary businesses, seeing steady development of each business segment. At the end of June 2026, total assets managed by CCB Trust were RMB2.87 trillion, of which the securities market business amounted to RMB1.53 trillion. Risk disposal service trust, family trust and credit asset securitisation business all maintained top position in the industry, the total size of which exceeded RMB670 billion; total assets of CCB Trust were RMB51,173 million and shareholders’ equity was RMB29,621 million; net profit in the first half of 2026 was RMB884 million.1 CCB Futures CCB Futures Co., Ltd. is a futures subsidiary invested and controlled by the Bank in 2014 with a registered capital of RMB1.0 billion. CCB Trust and Shanghai Liangyou (Group) Co., Ltd. hold 80% and 20% of its shares, respectively. It is mainly engaged in commodity futures brokerage, financial futures brokerage, asset management and futures investment advisory business, etc. CCB Trading Company Limited, a wholly -owned subsidiary of CCB Futures, is engaged in risk management operations, such as wa rehouse receipt service, basis trading, over -the-counter derivatives business, and general trade business. CCB Futures gave full play to its professional strength, and maintained steady development in all business lines. At the end of June 2026, total assets of CCB Futures were RMB17,626 million, and shareholders’ equity was RMB1,328 million; net profit in the first half of 2026 was RMB44 million. CCB Pension CCB Pension Management Co., Ltd. was established in 2015 with a registered capital of RMB2.3 billion. The Bank, Principal Financial Services, Inc. and the National Council for Social Security Fund hold 70%, 17.647% and 12.353% of its shares, respectively. It is mainly engaged in investment and management of national social security funds, businesses rel ated to management of enterprise annuity funds, entrusted management of pension funds, and pension advisory service for the above -mentioned asset management activities. CCB Pension maintained steady business development. At the end of June 2026, assets man aged by CCB Pension reached RMB827,468 million, total assets of CCB Pension amounted to RMB4,975 million, and shareholders’ equity 1 The data for CCB Trust includes CCB Housing Rental and CCB Futures.
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50 was RMB4,002 million; net profit in the first half of 2026 was RMB220 million. CCB Wealth Management CCB Wealth Management Co ., Ltd., a wholly-owned subsidiary of the Bank, was established in 2019 with a registered capital of RMB15 billion. It is mainly engaged in the offering of WMPs, investment and management of entrusted properties, and wealth management advisory and consulting services to the customers. CCB Wealth Management invested RMB560 million and RMB1.0 billion in BlackRock CCB Wealth Management Co., Ltd. and Guomin Pension & Insurance Co., Ltd., with shareholding s of 40% and 8.79%, respectively. CCB Wealth Management achieved coordinated development in quality, efficiency and scale on the basis of sound and compliant operation. At the end of June 2026, the size of WMPs of CCB Wealth Management amounted to RMB1.66 trillion, total assets of CCB Wealth Management were RMB23,243 million, and shareholders’ equity was RMB22,496 million; net profit in the first half of 2026 was RMB1,006 million. CCB Housing Rental CCB Housing Rental Private Fund Management Co., Ltd., a wholly -owned subsidiary of CCB Trust, was established in 2022 with a registered capital of RMB100 million. It is mainly engaged in private equity investment fund management and venture capital fund management services. CCB Housing Rental is the general partner of CCB Housing Rental Fund , and serves as its fund manager and managing partner as well . Through innovation of financial instruments, CCB Housing Rental assisted in exploring the new pattern of real estate development to encourage rentals as well as purchases. At the end of June 2026, assets managed by CCB Housing Rental reached RMB13,072 million, total assets of CCB Housing Rental amounted to RMB167 million, and shareholders’ equity was RMB133 million; net profit in the first half of 2026 was RMB9 million. Other Business Segment CCB FinTech CCB FinTech Co., Ltd. was established in 2018 with a registered capital of RMB1,730 million. CCB Tenghui (Shanghai) Private Equity Fund Management Co., Ltd., China Central Depository & Clearing Co., Ltd., Shanghai Lianyin Venture Capital Co., Ltd., and Chi na Development Bank Capital Co., Ltd. hold 92.50%, 2.50%, 2.50% and 2.50% of its shares, respectively. CCB International (China) Co., Ltd ., a wholly -owned subsidiary of CCB International, holds 100% shares of CCB Tenghui (Shanghai) Private Equity Fund Management Co., Ltd. CCB FinTech took serving the Group as its main responsibility and primary business, and was engaged in software research and development (R&D) of the Group, responsible for the R&D quality and efficiency. It accelerated the digital and int elligent transformation of the Group by advancing the scaling up of AI applications. At the end of June 2026, total assets of CCB FinTech were RMB6,318 million, and shareholders’ equity was RMB1,472 million; net profit in the first half of 2026 was RMB41 million. 3.2.6 FinTech and Channel Operation The Group strengthened its integrated IT management, consolidated FinTech support, and focused on the scenario construction and deep application of AI. It deepened the integration of business, data, and technology, changed business processes and service models, improved operational efficiency and user experience, and accelerated the digital and intelligent transformation. The Group established a data manage ment system adapted to the requirements of its integrated comprehensive operation, and consolidated the data foundation to facilitate AI application. It
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51 optimised the pattern of channel development, expanded intelligent scenario application for centralised operations, and improved full -channel service capabilities with focus on customers’ experience. The Group continued to strengthen the traffic value operation of online platforms, and improved the service capabilities and functional experience of its products. FinTech The Group sped up the construction of AI applications, consolidated digital infrastructure, safeguarded the bottom lines of production safety and cybersecurity, and continued to improve the quality and efficiency of technology R&D supply, prov iding strong sci -tech support for high - quality business development. The Group systematically advanced the “AI+” initiative, and officially released a three-year “AI+” development plan, providing top -level design and strategic guidance for AI development a cross the group. Adhering to value creation orientation, it continued to advance the construction of application scenarios and the deep integration of business, data, and technology. It accelerated the phased advancement of AI applications from key breakthroughs, exemplary leadership to deeper application and scaled empowerment. At the end of June 2026, the Group’s generative AI covered more than 600 application scenarios in business areas such as intelligent marketing, in telligent customer service, intelligent investment advisory service, intelligent operation, intelligent risk control, and intelligent management. Focusing on marketing support, technology R&D, and daily office work, the Group actively promoted the construc tion of AI -native agent applications, and initially formed a full spectrum of AI application scenarios. The Group continued to consolidate foundational AI capabilities , and built a full-lifecycle management system covering the introduction, evaluation, tra ining, deployment, monitoring, and exit of models. It constructed a model service system equipped with general -purpose, reasoning, and multi -modal capabilities, effectively supporting the stable and efficient operation of key business scenarios such as wea lth management and risk control. It expedited the deployment of intelligent R&D capabilities, and provided R&D personnel with full -process intelligent assistance with requirement analysis, code generation, code review, and test case generation. The Group c omprehensively promoted the construction of the knowledge management system. F ocusing on business scenarios, the Group built an enterprise-level knowledge base covering “general knowledge + domain knowledge”. The Group strictly implemented regulatory guide lines on secure AI applications. It continued to strengthen the AI security control framework, published the AI Application R&D Process Specification, and routinely conducted security vulnerability screenings , and risk alert and responses, effectively safeguarding the safety, reliability, and controllability of AI applications. The Group advanced the upgrading of technical capabilities and improvement of application efficiency of the big data platform. It constructed the frame of AI agent dedicated to big data application R&D, and supported the intelligent development of real -time data processing. The Group enhanced the big data technology foundation to facilitate efficient data synchronisation across heterogeneous databases in ter ms of multi-dimensional analysis and full -text search for efficient flow of massive data. The Group advanced the construction of digital infrastructure. With “CCB Cloud” it continued to build the new computing power system integrating intelligent and general-purpose computing power, and steadily expanded its intelligent computing power. The Group continued to reinforce the construction of its integrated cybersecurity management system. It organised group-wide vulnerability screening s and rectifications, penetration testing, internal cybersecurity attack and defence drills, and anti -blackmail emergency drills. It also promoted the adoption of unified cybersecurity tools to reinforce the Group’s cybersecurity defence network. The Group deepened the constructio n of trustworthy financial security architecture. It conducted analysis and research on the security of post -quantum cryptography algorithms, and explored the application of AI technologies in code security scan, security alert
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52 analysis, and security penetration testing, to elevate its cybersecurity capabilities. In terms of technology R&D, the Group continued to improve effectiveness of value delivery and enhance its agile response capabilities. In the first half of 2026, the Group responded to 10 .7 thousand business demands, and put 64.9 thousand business demands items into production. The R&D efficiency rose by 11%. The Group completed the construction and the launch of key projects including the sci -tech innovation intelligent selection tool, overseas promotion of full -process financial market investment and trading , the upgrading of personal AI assistant for account managers, intelligent data application system, upgrading of AML list monitoring engine, and deployment of cross-border service zone of CCB Asia mobile banking. By the end of June 2026, the Group had been granted 5,505 FinTech patents, an increase of 658 over the end of 2025, including 4,199 invention patents. Entities and Outlets The Group provided its customers with convenient and high-quality banking services through its widespread branches and sub -branches, self-service facilities, specialised service entities and e - banking service platforms. At the end of June 2026, the Group had a total of 14,599 operating entities. The Bank had 14,066 operating entities, including 14,032 domestic entities, i.e. the head office, two branch-level specialised entities, 37 tier -one branches, 363 tier -two branches, 13,618 sub-branches and 11 outlets under the sub -branches, and 34 over seas operations. The Bank’s 23 major subsidiaries (including 17 integrated operation subsidiaries and six overseas banking subsidiaries) had a total of 533 entities, including 408 domestic entities and 125 overseas entities. For addresses of domestic tier -one branches, overseas branches , and subsidiaries, please refer to the 2025 annual report of the Bank. The following table sets forth the distribution of the Group’s operating entities by region as at the dates indicated. 30 June 2026 31 December 2025 Number of entities % of total Number of entities % of total Domestic operations of the Bank 14,032 96.12 14,045 96.11 Yangtze River Delta 2,213 15.16 2,217 15.17 Pearl River Delta 1,769 12.12 1,776 12.15 Bohai Rim 2,372 16.25 2,373 16.24 Central 3,437 23.54 3,430 23.47 Western 2,914 19.96 2,915 19.95 Northeastern 1,323 9.06 1,330 9.10 Head office 4 0.03 4 0.03 Overseas operations of the Bank 34 0.23 34 0.23 Subsidiaries 533 3.65 535 3.66 – Domestic 408 2.79 409 2.80 – Overseas 125 0.86 126 0.86 Total 14,599 100.00 14,614 100.00
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53 With the total number of its business outlets staying stable, the Bank focused on optimising its outlet layout to enhance the effectiveness of its outlet operations. It supported channel construction in key regions, including the Beijing -Tianjin-Hebei regi on, the Yangtze River Delta, and the Guangdong-Hong Kong-Macau Greater Bay Area. The number of outlets in key regions accounted for 35.13% of the total domestic outlets. In addition, the Bank increased its county -level outlets, and 62.50% of the newly esta blished outlets were located in counties. The Bank deployed 73 .3 thousand self-service facilities across its self -service channels, in which 32.19% were located in counties. It opened 13.7 thousand “Workers’ Harbours” to the public, delivering convenient a nd people-benefiting services to the public. Adhering to the “customer -centred” service concept, the Group continued to accelerate the application of intelligent technologies, and developed an enterprise -level service and operation system featuring omni -channel integrat ion. It continued to optimise business processing procedures by tackling issues affecting customer and employee experience. It vigorously promoted the digital, online and intelligent transformation of counter business, and provided customers with “one-stop” and “one-click” services, greatly saving business processing time. The Group actively deployed service functions across online channels, expanded remote video services, and provided customers with coordinated seamless online and offline experiences. It further expanded the scope of centralised operations, elevated the level of centralisation, and leveraged AI to substantially enhance processing efficiency, empowering efficiency improvement across the group. Online Channels The Bank expedited online channel development, pressed ahead with the integrated operations of personal mobile banking and CCB Lifestyle, supported the special action to boost consumption, and continuously enhanced the user experience of convenient services. In terms of personal mobile banking, the Bank focused on improving financial service capabilities and user experience, strengthened the online operation of wealth management and credit business, and facilitated the growth of customers’ online assets. In terms of “CCB Lifestyle”, the Bank enhanced its capabilities of consumption finance and daily scenario services, and promoted scenarios such as “ Smart Canteen” and government-issued consumption coupons to improve the quality and efficiency of platform services. At the end of June 2026, the Bank had 592 million online personal users, of which the users of mobile banking and CCB Lifestyle totalled 556 million. The Bank outperformed its peers in terms of the number of users conducting financial transactions v ia mobile banking, which reached 164 million in the first half of 2026 .The card-linked fast payment users reached 502 million. Mobile Banking The Bank rolled out a new version of personal mobile banking across the board, refined high - frequency business wor kflows on the platform to address users’ financial needs to “manage, borrow, or save money”. It upgraded functions such as Asset Overview and Return Centre, enhancing the comprehensiveness and convenience of account management. Targeting young customers an d merchants, the Bank launched functions including “Fast Saving” and “Huizhongbao”, and expanded credit products in retail, inclusive finance, and agricultural areas. It optimised the login authentication system, streamlined security verification processes , and effectively balanced user experience with security and risk control capabilities. At the end of June 2026, the number of personal mobile banking customers with assets in their accounts totalled 447 million, an increase of 1.35% over the end of 2025, and the number of active customers of personal mobile banking with assets over RMB10 thousand increased by 15.02% over the end of June 2025.
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54 CCB Lifestyle Leveraging the ecosystem scenarios of the CCB Lifestyle platform, the Bank stepped up its efforts in customer management across various scenarios and supported the development of consumer finance. It actively facilitated the distribution of local governments’ “trade-in” consumption coupons to stimulate consumer spending and empower the real economy. At the end of June 2026, the CCB Lifestyle platform recorded 189 million registered users, an increase of 8.97 million over the end of 2025. In the first half of 2026, the platform cumulatively facilitated the distribution of government consumption coupons totalling RMB1,923 million across 146 cities, driving consumer spending of RMB24,249 million. The platform had a total of 399 .2 thousand merchant stores on board, an increase of 12.9 thousand stores in the first half of 2026. The “Smart Canteen” service cumulatively covered 15.4 thousand corporate users, an increase of over 1,800 in the first half of 2026. Online Banking In terms of personal online banking, the Bank continued to enhance user experience around core financial services and high -frequency basic functions, launched exclusive savings bond product for personal pensions, and added a query function for transaction details within the past 15 years. It improved investment risk assessment and alerts, optimised transfer records and statement printing, and expanded e -receipt application scenarios. In terms of corporate online banking, the Bank enhanced user experience, and launched a dedicated pension finance zone covering featured services such as enterprise annuities, payroll and welfare trusts, equity incentive plans, and supplementary medical insurance, delivering one-stop services for pension customers. At the end of June 2026, the number of personal online banking users was 438 million, an increase of 0.82% over the end of 2025. The number of corporate online banking users was 17.64 million, an increase of 5.53% over the end of 2025. The Bank upgraded the overseas on line corporate banking functions, achieving coverage of all of its overseas operations, and the number of overseas online corporate customers increased by 15.99% over the end of 2025. Online Payment The Bank adhered to the philosophy of “payment for the pe ople and payment for the people’s convenience”, leveraged the online reach advantages of online payment, and continued to elevate payment service standards through digital operations and product innovation. In the first half of 2026, CCB made 32,358 million online payment transactions, an increase of 2.70% over the first half of 2025, with an amount of RMB10.45 trillion, maintaining a leading position among its peers in the market share of payment institutions such as Alipay, Meituan and Pinduoduo. Remote Intelligent Banking The Bank adhered to a “customer -centred” approach, constantly expedited digital and intelligent transformation, and upgraded its remote comprehensive financial service system characterised by multimedia interconnection, multi -scenario pe netration, and multi -functional reach, thereby delivering smarter and more convenient service experiences to domestic and overseas customers across the group. The Bank promoted bank -wide integrated operations and fully realised the centralised, unified man agement of all inbound call services. The “CCB Customer Service” platform innovatively launched scenario-based functions such as credit repair and family-oriented services. Digital avatars were deployed 28 times cumulatively and integrated into eight inter nal channels and 20 exhibitions. Video banking delivered 30 face -to-face services tailored for corporate, county-level, and special-needs customers. Services including savings card PIN reset, emergency payment limit increases and unblocking, and witnessed agency operations were rolled out bank-wide, significantly speeding up the resolution of customer pain point of “physical branch
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55 visit required”. The Bank pressed ahead with a new model integrating service and sales, scaled up the deployment of AI capabilities, and developed silicon-based relationship managers alongside a retail AI middle platform. It established a unified knowledge base for the retail banking segment, constructed a marketing data pathway linkin g remote banking with bank -wide systems, and initially achieved two -way referral of enterprise -level marketing leads between remote banking channels and branch networks. The Bank promoted the systematic resolution of customer issues, effectively enhancing the integrated problem-solving capabilities of the remote banking channel in coordination with the broader bank network. In the first half of 2026, the Bank provided all - channel services to 172 million customers, with the satisfaction rate of customer serv ice hotline reaching 99.96%, and the number of followers of the “CCB Customer Service” new media matrix exceeded 59 million. E-CNY Under the unified coordination of the PBOC, the Bank steadily advanced the research, development, and application of e-CNY. The Bank enhanced the product and service capabilities of e-CNY wallets, enabling credit card repayments and purchases of special funds and WMPs using personal e-CNY wallets. Class I wallets supported enrolment in CTS services, and corporate wallets were enabled to purchase gold accumulation products and OTC bonds. The Bank pressed ahead with scenario application innovation for e -CNY, expanding the use of e-CNY to multiple scenarios in areas such as batch payments, smart settlement, fund supervision, prepaid consumption, and cross -border settlement. It also completed China’s first e -CNY cross-bank multi-party debt clearing transaction. The Bank achieved new progress in cross -border e-CNY applications, supporting customers in conducting cross -border transactio ns via the Project mBridge using e -CNY wallets, corporate settlement accounts, Hainan FTP’s EF accounts, and FTZ’s FT accounts. The transaction volume of Project mBridge exceeded RMB50 billion in the first half of 2026. As direct participants CCB Asia and the Bank’s Singapore Branch were connected to the Cross -Border e -CNY Transaction Service (CBETS) platform. The Bank also implemented the China-Laos e-CNY cross-border payment scheme featuring domestic issuance for overseas use, enabling customers to use d omestic e -CNY wallets for purchases at local merchants in Laos. At the end of June 2026, the number of the Bank’s e-CNY personal wallets and e-CNY corporate parent wallets reached 84.91 million and 5.5 million, respectively. E -CNY consumption transactions reached 85.35 million, with a total consumption amount of RMB7,048 million in the first half of 2026, maintaining an industry-leading position.
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56 3.3 RISK MANAGEMENT In the first half of 2026, the Group adhered to bottom -line thinking and continued to refine a comprehensive, proactive, intelligent, and agile risk control system. It deepened look-through management of overseas operations and subsidiaries, effectively en hanced the quality and efficiency of integrated group -wide risk management . The Group’s management in relation to global and domestic systemically important banks (SIBs) fully complied with regulato ry requirements. The Group steadily advanced asset quality management, focusing on risk identification, prevention and control in key areas. It strengthened coordinated efforts in non - performing assets disposal, ensuring the stability of overall asset quality. The Group pressed ahead with the expansion and core upgrade of intelligent risk control capabilities, expediting the development of an intelligent platform for comprehensive risk management. It de veloped AI agents for customer risk identification and business risk analysis, embedded intelligent risk control tools into business processes, and enhanced the foresightedness, proactiveness, and effectiveness of risk management. The Board fulfils its ris k management responsibilities pursuant to the Articles of Association of the Bank and regulatory requirements. The Board and its risk management committee develop risk management strategies, supervise the implementation, assess the Group’s overall risk pro file, regularly review the statements of risk appetite and transmit the risk appetite through relevant policies. Senior management and its risk and internal control management committee are responsible for implementing risk strategies developed by the Boar d and organising comprehensive risk management work across the group. 3.3.1 Credit Risk Management The Group remained committed to robust credit risk management, deepening structural and trend- based analysis and assessment of credit risks to strengthen its capacity to prevent financial risks. The Group proactively managed credit risk. It continued to optimise the composition of its credit assets, focusing on supporting high-quality development of the real economy and diligently advancing the “Five Priorities” in finance, while increasing support for major national strategies, key areas and weak links. It strengthened integrated group-wide credit risk prevention and control, strictly managed key links across the entire process, prudently pressed ahead with th e prevention and resolution of risks in key areas, and sped up the development of centralised risk control models for inclusive finance and retail credit. The Group strictly implemented the Rules on Risk Classification of Financial Assets of Commercial Ban ks. It followed the principle of substantive risk judgement, and conducted risk classification in an accurate and compliant manner in line with the three-step procedure of “initial classification, identification and approval”. It adhered to the high-quality implementation of the ECL approach, timely made adequate loss provisions, and maintained strong risk mitigation capacity. The Group enhanced its risk measurement capabilities. It optimised customer credit rating models to support objective and accurate risk assessments. It rolled out the “Shanjian Technology” intelligent assessment tool for sci -tech innovation, enabling better identification of high -quality sci-tech enterprises. It continued to advance the iterative upgrading of risk control models for both inclusive finance and retail credit, updated scorecard tools, innovated in the development and application of integrated models, and diversified its risk measurement toolkit. The Group optimised the comprehensive financing approval and management mecha nism. It incorporated both credit and non -credit investment and financing businesses conducted in its financing services for corporate customers, such as credit, trading, and investment, into a unified and comprehensive financing approval and management fr amework, clarified the management mechanism, strengthened collaborative checks and balances, and advanced differentiated
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57 management of investment and trading business. It gave full play to the role of professional empowerment, risk control and collaborativ e services of the second line of defence. Adhering to the principles of adapting to local conditions and aligning authority with responsibility, the Group established tiered approval mechanisms in a steady and orderly manner at certain tier-one branches demonstrating strong management capabilities and substantial market demands, thereby effectively supporting national strategies and the Group’s high -quality business development. Focusing on the 15th Five -Year Plan, the Group dynamically adjusted approval authorisation by effectively establishing an approval framework tailored to the risk profiles of county -level business, sci -tech enterprises, micro, small and medium -sized enterprise customers, financial institution customers, and overseas customers. Through these efforts, the Group enhanced the quality and efficiency of approval for customers in key areas, and improved the capabilities to serve the real economy. The Group strengthened its special assets resolution. It maintained sound risk resolution and disposal capabilities. With the effective management and timely disposal of non -performing assets, the Group sped up the flow of credit funds, and provided solid support for the bank -wide strategy implementation, opera tion management and control, structural adjustment and profitability enhancement. Distribution of Loans by Five-category Classification The following table sets forth the distribution of the Group’s loans by five-category classification under which NPLs include substandard, doubtful and loss as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Amount % of total Amount % of total Normal 28,388,545 96.94 26,867,143 96.92 Special mention 519,324 1.77 490,731 1.77 Substandard 122,720 0.42 103,874 0.38 Doubtful 64,950 0.22 73,426 0.26 Loss 191,306 0.65 186,682 0.67 Gross loans and advances excluding accrued interest 29,286,845 100.00 27,721,856 100.00 NPLs 378,976 363,982 NPL ratio 1.29 1.31 The Group adhered to the substantive risk judgement, strictly implemented relevant provisions on risk classification, and accurately reflected the level of risks. At the end of June 2026, the balance of the Group’s NPLs was RMB378,976 million, an increase of RMB14, 994 million over the end of 2025. The NPL ratio was 1.29%, a decrease of 0.02 percentage points from the end of 2025. Special mention loans accounted for 1.77% of gross loans and advances excluding accrued interest, flat with the end of 2025.
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58 Distribution of Loans and NPLs by Product Type The following table sets forth the distribution of the Group’s loans and NPLs by product type as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Loans and advances NPLs NPL ratio (%) Loans and advances NPLs NPL ratio (%) Domestic loans and advances of the Bank 28,388,653 363,350 1.28 26,834,069 348,391 1.30 Corporate loans and advances 16,818,870 244,747 1.46 15,690,859 240,384 1.53 Short-term loans 4,658,100 72,078 1.55 4,235,650 74,583 1.76 Medium to long-term loans 12,160,770 172,669 1.42 11,455,209 165,801 1.45 Personal loans and advances 9,071,749 118,603 1.31 9,050,497 108,007 1.19 Residential mortgages 5,857,813 57,560 0.98 5,991,328 53,269 0.89 Personal business loans 1,454,668 25,911 1.78 1,315,605 20,773 1.58 Credit card loans 931,854 23,643 2.54 1,009,100 23,860 2.36 Personal consumer loans 781,773 8,729 1.12 683,174 7,321 1.07 Other personal loans 45,641 2,760 6.05 51,290 2,784 5.43 Discounted bills 2,498,034 - - 2,092,713 - - Overseas operations and subsidiaries 898,192 15,626 1.74 887,787 15,591 1.76 Gross loans and advances excluding accrued interest 29,286,845 378,976 1.29 27,721,856 363,982 1.31 Distribution of Loans and NPLs by Region The following table sets forth the distribution of the Group’s loans and NPLs by region as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Loans and advances NPLs NPL ratio (%) Loans and advances NPLs NPL ratio (%) Yangtze River Delta 6,131,793 51,093 0.83 5,772,902 48,550 0.84 Pearl River Delta 4,554,316 83,802 1.84 4,303,152 86,633 2.01 Bohai Rim 4,934,947 60,522 1.23 4,696,417 56,441 1.20 Central 5,086,184 60,934 1.20 4,727,097 57,045 1.21 Western 5,585,414 67,678 1.21 5,273,064 60,585 1.15 Northeastern 1,168,199 23,093 1.98 1,105,191 22,517 2.04 Head office 1,076,783 23,693 2.20 1,101,691 23,912 2.17 Overseas 749,209 8,161 1.09 742,342 8,299 1.12 Gross loans and advances excluding accrued interest 29,286,845 378,976 1.29 27,721,856 363,982 1.31
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59 Distribution of Loans and NPLs by the Industry in which Customers Operate The following table sets forth the distribution of the Group’s loans and NPLs by the industry in which customers operate as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Loans and advances % of total NPLs NPL ratio (%) Loans and advances % of total NPLs NPL ratio (%) Domestic loans and advances of the Bank 28,388,653 96.93 363,350 1.28 26,834,069 96.80 348,391 1.30 Corporate loans and advances 16,818,870 57.43 244,747 1.46 15,690,859 56.60 240,384 1.53 Leasing and commercial services 3,027,308 10.34 43,807 1.45 2,831,419 10.21 44,575 1.57 Manufacturing 2,761,100 9.43 36,593 1.33 2,416,735 8.72 34,899 1.44 Transportation, storage and postal services 2,701,209 9.22 12,010 0.44 2,587,380 9.33 14,991 0.58 Production and supply of electric power, heat, gas and water 1,813,904 6.19 12,119 0.67 1,755,960 6.34 12,087 0.69 Wholesale and retail trade 1,700,839 5.81 35,730 2.10 1,485,794 5.36 33,114 2.23 Real estate 901,831 3.08 44,479 4.93 905,583 3.27 44,635 4.93 Construction 893,325 3.05 26,712 2.99 800,737 2.89 24,435 3.05 Water, environment and public utility management 906,031 3.09 10,148 1.12 814,281 2.94 8,307 1.02 Finance 411,272 1.41 160 0.04 552,689 1.99 166 0.03 Mining 425,876 1.45 1,976 0.46 383,385 1.38 5,061 1.32 Others1 1,276,175 4.36 21,013 1.65 1,156,896 4.17 18,114 1.57 Personal Loans and advances 9,071,749 30.97 118,603 1.31 9,050,497 32.65 108,007 1.19 Discounted bills 2,498,034 8.53 - - 2,092,713 7.55 - - Overseas operations and subsidiaries 898,192 3.07 15,626 1.74 887,787 3.20 15,591 1.76 Gross loans and advances excluding accrued interest 29,286,845 100.00 378,976 1.29 27,721,856 100.00 363,982 1.31 1. These mainly comprise industries such as information transmission, software and information technology services, scientific research and technological service, agriculture, forestry, animal husbandry, fishing, health and social work, and education. The Group continued to improve quality and efficiency in serving the real economy, made great efforts to promote the optimisation and adjustment of credit structure, and enhanced risk prevention and control in key areas. The NPL ratios for industries such as manufacturing, transportation, storage and postal services declined.
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60 Restructured Loans and Advances to Customers The following table sets forth the Group’s restructured loans and advances to customers as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Amount % of gross loans and advances excluding accrued interest Amount % of gross loans and advances excluding accrued interest Restructured loans and advances to customers 139,860 0.48 126,375 0.46 1. The classification of restructured loans and advances to customers was in compliance with the standard of the Rules on Risk Classification of Financial Assets of Commercial Banks. At the end of June 2026, the balance of restructured loans and advances to customers was RMB139,860 million, an increase of RMB13,485 million over the end of 2025; their proportion in gross loans and advances excluding accrued interest was 0.48%. Overdue Loans and Advances to Customers The following table sets forth the Group’s overdue loans and advances to customers by overdue period as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Amount % of gross loans and advances excluding accrued interest Amount % of gross loans and advances excluding accrued interest Overdue within three months 111,698 0.38 91,072 0.33 Overdue between three months and six months 62,198 0.22 49,786 0.18 Overdue between six months and one year 67,595 0.23 64,680 0.23 Overdue between one year and three years 117,450 0.40 119,545 0.43 Overdue for over three years 47,225 0.16 42,731 0.16 Total overdue loans and advances to customers 406,166 1.39 367,814 1.33 At the end of June 2026, the balance of overdue loans and advances to customers was RMB406,166 million, an increase of RMB38,352 million over the end of 2025; their proportion in gross loans and advances excluding accrued interest was 1.39%. Migration Rate of Loans (%) 30 June 2026 31 December 2025 31 December 2024 Migration rate of normal loans 1.35 1.17 1.07 Migration rate of special mention loans 28.62 14.98 11.69 Migration rate of substandard loans 88.06 50.73 44.56 Migration rate of doubtful loans 99.08 57.47 34.38 1. The migration rate of loans was calculated on a consolidated basis according to the definition of the indicators revised in 2022 by the former CBIRC.
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61 Large Exposures Management The Group strictly complied with regulatory requirements and systematically conducted the identification, measurement, monitoring, and reporting of large exposures. It continued to improve the collaborative management mechanism for risk exposures across the group, reinforced the monitoring and management of limit compliance, and cemented the foundation of the Group’s large exposure management framework. Concentration of Loans At the end of June 2026, the Group’s gross loans to the largest single borrower accounted for 4.12% of total capital, while those to the top ten customers accounted for 12.40% of total capital. (%) 30 June 2026 31 December 2025 31 December 2024 Proportion of loans to the largest single customer 4.12 4.14 4.15 Proportion of loans to top ten customers 12.40 13.40 15.22 The Group’s top ten single borrowers as at the date indicated are as follows. (In millions of RMB, except percentages) Industry 30 June 2026 Amount % of total loans and advances excluding accrued interest Customer A Transportation, storage and postal services 200,895 0.69 Customer B Production and supply of electric power, heat, gas and water 72,254 0.25 Customer C Leasing and commercial services 58,972 0.20 Customer D Transportation, storage and postal services 54,430 0.18 Customer E Transportation, storage and postal services 38,227 0.13 Customer F Production and supply of electric power, heat, gas and water 37,500 0.13 Customer G Transportation, storage and postal services 37,497 0.13 Customer H Transportation, storage and postal services 37,420 0.13 Customer I Transportation, storage and postal services 34,349 0.12 Customer J Finance 33,552 0.11 Total 605,096 2.07 For details o f capital measurement of credit ris ks, please refer to the Half-Year Capital Management Pillar III Report 2026 published on the websites of the SSE (www.sse.com.cn), the “HKEXnews” of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk), and the Bank (www.ccb.cn, www.ccb.com). 3.3.2 Market Risk Management In the first half of 2026, the Group continued to reinforce its market risk management. It formulated the annual risk policy and risk limit plan for investment and trading business, while monitoring and reporting on limit compliance. It further promoted digital monitoring and risk screening for trading business, driving multi-dimensional upgrades of digital surveillance tools. In response to heightened fluctuation in global financial markets, the Group also intensified impact analysis on investment portfolios.
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62 Value at Risk Analysis on Trading Book The Bank performs value at risk ( VaR) analysis on its trading portfolio to measure and monitor the potential losses that could occur on risk positions taken, due to movements in market interest rates, foreign exchange rates and other market prices. The Bank calculates the VaRs of its Renminbi and foreign currency trading portfolios on a daily basis (at a confidence level of 99% and with a holding period of one trading day). The VaR analysis on the Bank’s trading book as at the dates indicated and during respe ctive periods is as follows. (In millions of RMB) Six months ended 30 June 2026 Six months ended 30 June 2025 30 June Average Maximum Minimum 30 June Average Maximum Minimum VaR of trading portfolio 383 285 576 170 328 309 363 241 Of which: Interest rate risk 98 87 116 65 202 124 213 73 Foreign exchange risk 392 272 565 145 281 309 363 246 Commodity risk 22 26 36 14 1 1 2 - Stress Testing of Market Risk The Bank uses stress testing over single factor scenario, multi -factor scenario and historical scenario, to effectively supplement VaR analysis on trading books. Stress testing of market risk reveals weak links in the investment and trading business under extreme scenarios by quantitatively analysing the impact of chan ges in interest rates, foreign exchange rates and other market prices on the asset prices and profit and loss of the Bank, thus enhancing the Bank’s ability to respond to extreme risk events. The stress testing results showed that losses from market risk were generally controllable. Exchange Rate Risk Management The Group is exposed to exchange rate risk primarily because of currency mismatch of the assets and liabilities it holds in currencies other than Renminbi and the positions it takes as a market maker in financial markets. The Group manages exchange rate risk by controlling foreign exchange risk exposures, primarily controlling and mitigating such risk by matching its assets with liabilities, setting limits, and hedging. In the first half of 2026, the Group adhered to a prudent and sound exchange rate risk management strategy, closely monitored global macroeconomic conditions and foreign exchange market fluctuations, and adopted prudent measures to address market uncertainties. It further reinforced its daily monitoring and management of foreign exchange exposures, constantly improved mechanisms for identification and assessment of exchange rate risk, and effectively enhanced quality and efficiency of exchange rate risk management. During the reporting period, the Group’s exchange rate risk indicators met regulatory requirements.
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63 Currency Concentrations The Group’s currency concentrations as at the dates indicated are set out below. (In millions of RMB) 30 June 2026 31 December 2025 USD (RMB equivalent) HKD (RMB equivalent) Others (RMB equivalent) Total USD (RMB equivalent) HKD (RMB equivalent) Others (RMB equivalent) Total Spot assets 1,180,245 363,861 551,176 2,095,282 1,046,547 355,121 501,900 1,903,568 Spot liabilities (1,001,877) (570,694) (345,769) (1,918,340) (1,047,201) (607,080) (325,064) (1,979,345) Forward purchases 1,996,127 533,095 496,992 3,026,214 3,388,012 544,604 354,980 4,287,596 Forward sales (2,188,376) (273,309) (672,547) (3,134,232) (3,395,800) (252,624) (504,594) (4,153,018) Net options position (294) (131) (36) (461) (4,132) (6) (207) (4,345) Net(short) /long position (14,175) 52,822 29,816 68,463 (12,574) 40,015 27,015 54,456 At the end of June 2026, the Group’s net exposure to exchange rate risk was RMB68,463 million, an increase of RMB 14,007 million over the end of 2025, mainly due to the rise in HKD net exposure. For details of capital measurement of market risk s, please refer to the relevant sections of the Bank’s Half-Year Capital Management Pillar III Report 2026. 3.3.3 Management of Interest Rate Risk in the Banking Book Interest rate risk in the banking book refers to the risk of loss in the economic value and overall earnings of a banking book as a result of adverse movements in interest rates, term structure and other interest-related factors, mainly including gap risk, basis risk, and option risk. The Group continues to strengthen the identification, measurement, monitoring, and control of interest rate risk in the banking book. In accordance with regulatory requirements, it formulates and improves the management framework, measurement rules, and monitoring and control policies related to interest rate risk in the banking book. It also annually reviews its risk appetite and hierarchical limits to ensure alignment between its interest rate risk levels and the Bank’s overall risk appetite. The Group implements robust and prudent interest rate risk management strategy, seeks to achieve a balance between interest rate risk and profitability, and minimises the adverse impact of interest rate changes on net interest income and economic value. The Group employs a range of methods to measure and analyse interest rate risk in the banking book, including repricing gap analysis, sensitivity analysis o f net interest income and economic value, duration analysis, stress testing, and economic capital analysis. It actively uses assets and liabilities volume and pricing measures, prudently employs interest rate derivative hedging instruments, and performs in terest rate risk management and evaluation by applying plan and performance appraisal and internal capital assessment to effectively control the interest rate risk level of business lines, overseas operations and subsidiaries, so that the interest rate risk in the banking book is kept within a reasonable range. In the first half of 2026, the Group closely monitored domestic and international macroeconomic conditions and changes in interest rate policies, strengthened interest rate risk management, and proactively addressed market pressures and management challenges. It closely tracked changes in interest rates of domestic deposits, loans and bonds, and strengthened monitoring and management of the term structure of assets and liabilities. It proactively opti mised interest rate risk limit management requirements for overseas operations to enhance the Group’s proactive risk management capabilities. Furthermore, it continued to optimise internal and external pricing management strategies, and prudently assessed interest rate risks associated with new products. During the reporting period, the results of stress testing indicated that the Group’s interest rate risk indicators were reasonable, and the level of interest rate risk was under control.
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64 Interest Rate Sensitivity Gap Analysis The analysis of interest rate sensitivity gaps of the Group’s assets and liabilities by the next expected repricing dates or maturity dates (whichever is earlier) as at the dates indicated is set out below. (In millions of RMB) Non- interest- bearing Less than three months Between three months and one year Between one year and five years More than five years Total Interest rate sensitivity gap as at 30 June 2026 628,008 (8,086,547) 7,964,845 (2,355,801) 5,683,321 3,833,826 Accumulated interest rate sensitivity gap as at 30 June 2026 (8,086,547) (121,702) (2,477,503) 3,205,818 Interest rate sensitivity gap as at 31 December 2025 446,580 (4,344,916) 4,799,380 (2,808,508) 5,593,541 3,686,077 Accumulated interest rate sensitivity gap as at 31 December 2025 (4,344,916) 454,464 (2,354,044) 3,239,497 At the end of June 2026, the repricing gap of the Group’s assets and liabilities with maturities less than one year was negative RMB121,702 million, narrowing by RMB576,166 million compared with the end of 2025, mainly due to the growth of borrowings from the PBOC and deposits with maturities less than one year. The positive gap of assets and liabilities with maturities more than one year was RMB3.33 trillion, an increase of RMB542,487 million over the end of 2025, mainly due to the growth of long-term bond investments. Sensitivity Analysis Net interest income sensitivity analysis refers to the impact of interest rate changes on net interest income generated by financial assets and financial liabilities held at the end of the period that are to be repriced within the next year. Equity sensitivity analysis refers to the impact on equity of net change in fair value resulting from the revaluation of fixed-rate financial assets measured at fair value through other comprehensive income held at the end of the period due to changes in interest rates. The net interest income and equity sensitivity analysis is based on two scenarios. The first assumes that all yield curves rise or fall by 100 basis points in a parallel way, while the interest rates for deposits at the PBOC remain constant; the second assumes that the interest rates for deposits at the PBOC and the demand deposits remain constant, while all the other yield curves rise or fall by 100 basis points in a parallel way. The changes in net interest income and equity of the Group u nder different scenarios are set out below as at the dates indicated. (In millions of RMB) Impact on net interest income Impact on equity 30 June 2026 31 December 2025 30 June 2026 31 December 2025 Rise by 100 basis points Interest rates for deposits at the PBOC being constant (80,086) (61,732) (173,993) (170,372) Interest rates for deposits at the PBOC and demand deposits being constant 77,098 91,958 Fall by 100 basis points Interest rates for deposits at the PBOC being constant 80,086 61,732 193,862 190,344 Interest rates for deposits at the PBOC and demand deposits being constant (77,098) (91,958)
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65 3.3.4 Operational Risk Management The Group has established and improved its operational risk governance framework, with the Board assuming the ultimate responsibility for operational risk management and senior management responsible for the implementation of operational risk management. The “three lines of defence” for operational risk management comprise business and management departments, operational risk management departments, and audit department s, which jointly enhance the identification and control of operational risks. The Group has established and improved an operational risk management system tailored to its business nature, size, c omplexity and risk profile, formulated operational risk management policies, and strengthened the coordinated control of “three lines of defence ”. Guided by operational risk appetite. empowered by operational risk management tools and supported by operational risk culture, staffing, incentives and disciplines, and IT systems, the Group continuously conducts the identification and assessment, control and mitigation, monitoring and reporting, and capital measurement of operational risks in business, products and management activities. It also periodically reviews and optimises the operational risk management system. In addition, it systematically embeds internal control requirements into the development of policies, processes, and systems related to operation management, implementing internal control measures across business operations, products, and management activities to effectively prevent and control operational risks and reduce losses. In the first half of 2026, the Group strictly complied with regulatory requirements, constantly strengthened its operational risk management system, and systematically pressed ahead with preparatory work for the regulatory assessment and validation pursuan t to the new standardised approach for operational risk. By leveraging the guiding role of operational risk appetite, the Group significantly enhanced the digital and intelligent capabilities of its management tools, reviewed key risk indicators, and consolidated the foundation of its operational risk management. Furthermore, the Group enhanced its business continuity management, having completed a new round of business impact analysis to identify important business operations and focus on key management priorities. It optimised contingency planning, coordinated comprehensive drills, and strengthened business-technology collaboration. Moreover, the Group refined business continuity initiatives for overseas operations , so as to enhance the ability to respond to operational risk exposures. Anti-Money Laundering The Group strictly implemented new AML regulatory requirements, and revised and improved its internal control policies on AML. It continued to optimise its enterprise -level customer due diligence mechanism, and steadily enhanced the intelligence capabilities of suspicious transaction monitoring models to support collaborative risk prevention and control. These efforts enhanced risk identification and prevention capabilities, effectively enabling AML measures to play a key role in preventing and curbing money laundering and related crimes. For details of capital measurement of operational risks, please refer to the relevant sections of the Bank’s Half-Year Capital Management Pillar III Report 2026.
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66 3.3.5 Liquidity Risk Management In the first half of 2026, the Group adhered to a prudent and sound liquidity management strategy, ensuring the stable operation of the Group’s liquidity. It proactively addressed changes in internal and external funding conditions, reasonably managed the total amount and structure of funding sources and utilisation, and effectively identified, measured, monitored and reported liquidity risk. It optimised the structure of funding sources, maintained adequate liquidity reserves, constantly strengthened coordinated liquidity management across the group, and promoted the upgrading of liquidity risk management mechanisms and systems to ensure the security of the Group’s payment and settlement operations. Stress Testing of Liquidity Risk The Group conducts quarte rly liquidity risk stress testing in order to gauge its risk tolerance in different stress scenarios. The results of stress testing showed that under different stress scenarios, the Group’s liquidity risk was under control. Analysis of Liquidity Risk The Group adopts liquidity indicator analysis, remaining maturity analysis and undiscounted cash flow analysis to measure its liquidity risk. The following table sets forth the liquidity ratio and loan -to-deposit ratio of the Group as at the dates indicated. (%) Regulatory threshold 30 June 2026 31 December 2025 31 December 2024 Liquidity ratio1 Renminbi ≥25 84.22 85.15 76.55 Foreign currency ≥25 102.38 92.67 72.07 Loan-to-deposit ratio2 Renminbi 91.30 89.30 89.28 1. Calculated by dividing current assets by current liabilities in accordance with the requirements of the former CBIRC. 2. Calculated on the basis of domestic legal person in accordance with the requirements of the former CBIRC. The following table sets forth the liquidity coverage ratio and net stable funding ratio (NSFR) of the Group as at the dates indicated. Second quarter 2026 First quarter 2026 Fourth quarter 2025 Liquidity coverage ratio (%)1 126.58 138.12 135.47 30 June 2026 31 March 2026 31 December 2025 NSFR (%) 129.50 128.81 132.10 1. Calculated in accordance with the applicable regulatory requirements, definitions and accounting standards for the period. All figures represent simple arithmetic means of the values for every calendar day in the quarter. At the end of June 2026, the Group’s Renminbi and foreign currency liquidity ratios were 84.22% and 102.38% respectively, and the loan -to-deposit ratio was 91.30%. The average daily liquidity coverage ratio for the second quarter of 2026 was 126.58%. The Group’s NSFR was 129.50% at the end of June 2026. All the liquidity indicators above met regulatory requirements. For detailed information on liquidity coverage ratio and NSFR, please refer to the Half-Year Capital Management Pillar III Report 2026 published on the websites of the SSE (www.sse.com.cn), the “HKEXnews” of Hong Kong Exchanges and Clearing Limited (www.hkexnews.hk), and the Bank (www.ccb.cn, www.ccb.com).
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67 The gap analysis of the Group’s assets and liabilities by remaining maturity as at the dates indicated is set out below. (In millions of RMB) Indefinite Repayable on demand Within one month Between one month and three months Between three months and one year Between one year and five years More than five years Total Net gaps as at 30 June 2026 3,203,545 (14,504,595) (1,065,660) (1,332,268) (539,542) 4,019,991 14,052,355 3,833,826 Net gaps as at 31 December 2025 3,000,307 (13,538,670) (717,374) (1,275,079) (780,613) 3,285,393 13,712,113 3,686,077 The Group regularly monitored the maturity gaps between its assets and liabilities for various businesses in order to assess its liquidity risk profile within different maturity ranges. At the end of June 2026, the cumulative maturity gap of the Group was RMB3.83 trillion. The Group enjoys low turnover rate of demand deposits and steady growth of deposits, and is expected to maintain a steady source of funding and a sound liquidity position in future, with liquidity risk under control. 3.3.6 Reputational Risk Management Reputational risk refers to the risk arising from actions of an institution, its personnel, or external events, which lead to negative assessments by stakeholders, the general public, media, etc., towards the Group or its branches and subsidiaries, thereby damaging its brand value, adversely affecting its normal operations, and even impacting market stability and social stability . It is an integral component of the comprehensive risk management system of banks. The Group strictly complies with regulatory re quirements and constantly strengthens the role of corporate governance in managing reputational risk. The Board assumes the ultimate responsibility for reputational risk management. It is responsible for determining the reputational risk management strategy and overall objectives, staying informed of the reputational risk profile, and overseeing senior management in carrying out reputational risk management. Senior management assumes the management responsibility for reputational risk. It is responsible for establishing and improving the reputational risk management system, refining working mechanisms, formulating contingency plans and resolution procedures for reputational risk related to significant matters, and arranging and advancing the handling of reputational incidents. In the first half of 2026, the Group upheld the principles of forward -looking, comprehensive, proactive, and effective reputational risk management. It continued to improve its mechanism development, coordinated the advancement of integrated group-wide reputational risk prevention and control, and intensified its foundational management to strengthen source-level risk prevention and resolution. The Group focused on enhancing monitoring and response capabilities to properly manage sensitive public opinions. During the reporting period, the Group steadily improved its reputational risk management practices. As such, its reputational risk remained stable and controllable. 3.3.7 Country Risk Management In strict compliance with regulatory req uirements, the Group incorporates country risk management into its comprehensive risk management system, establishing a management framework commensurate with its strategic objectives and size of risk exposures. The Board assumes the ultimate responsibility for monitoring the effectiveness of country risk management, and senior management is responsible for carrying out country risk management policies approved by the Board. The Group manages country risk by comprehensively applying tools including evaluation and rating, risk limit, data aggregat ion, stress testing, monitoring and early alert, and emergency responses.
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68 In the first half of 2026, the Group continued to improve its country risk management in light of business development needs and changes in th e global landscape. It optimised the country risk management system, reviewed country risk ratings, closely monitored country risk exposure, and strengthened country risk early warning and emergency response mechanism. The Group’s country risk exposure was mainly concentrated in countries or regions with low or relatively low country risk, and the overall country risk was maintained at a reasonable level. 3.3.8 IT Risk Management The Group has established and improved an IT risk management governance struct ure characterised by reasonable and well-defined division of responsibilities, appropriate authorisation, mutual checks and balances, and clear reporting lines. The Board regularly listens to, and reviews reports on IT risk management, and supervises and c hecks IT risk management work performed by senior management. Senior management organises and implements the identification, monitoring, and control of IT risk, as authorised by the Board. The Group has developed IT risk management rules. In accordance with regulatory requirements and its IT risk appetite, it adopts appropriate management strategies for domains such as information system development, testing, and maintenance, business continuity plan, and emergency responses, so as to enhance the security and stability of its IT systems. The Group annually engages an independent third -party accounting firm to provide assurance on IT services provided by the head office to overseas operations. The firm has issued the 2025 Service Organisation Control assurance report, System and Organisation Controls (SOC2) report, assessment report on IT controls related to personal information protection, and data centre threat and vulnerability assessment report, among others. The Group also continued to advance the 2026 assurance engagement to ensure the continuous and effective operation of controls. The Group annually enga ges qualified third -party assessment agencies to conduct annual assessments on filing systems at or above Grade III for cybersecurity classified protection, in compliance with financial industry cybersecurity classified protection standards and commercial cryptography application standards for information systems. Core banking transaction processing systems, among others, successfully passed the 2025 classified protection assessment and commercial cryptography application security assessment. In the first half of 2026, the Group continued to perform IT risk monitoring, reporting, control and mitigation, and promoted early identification, early warning, early detection and early resolution of IT risks. During the reporting period, the Group’s IT risk indicators met regulatory requirements and risk appetite, with risks under control. 3.3.9 Strategic Risk Management The Group strictly complied with relevant laws, regulations, and regulatory requirements on strategic risk management, adhered to the principle of coordinating development and security, and pressed ahead with the compiling of strategic planning in accordance with established strategic plans and risk management policies. It clarified the division of responsibilities for strategic risk management, timely identified and provided early warnings on changes and impacts of internal and external risk factors during strategic decision -making and execution, and enhanced risk forecasting capabilities, so as to fortify the “three lines of defence” for risk prevention and control. During the reporting period, the Group’s strategic risk remained under control.
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69 3.3.10 Emerging Risk Management The Group closely monitored and analysed the evolving trends of emerging risks, constantly improved management mechanisms and system tools, and enhanced the effectiveness of identifying and proactively managing emerging risks such as model risk, data risk, fraud risk, ESG risk, and new product risk. In terms of model risk management, the Group continued to improve its model risk management system and conducted model validation, review, and ex -post evaluation. It reviewed risk control rules for online businesses and strengthened sensitive information protection mechanisms for online business models. The Group continued to advance the development of a group -wide professional team for risk measurement, established corresponding management mechanisms, and strengthened personnel training and team building. Additionally, it initiated the construction of Phase II of the enterprise-level model risk monitoring platform and enhanced the functions of the enterprise-level model risk management platform. In terms of data risk management, the Group persistently improved its data risk management and control mechanisms, and intensified data security controls in key areas. It elevated the automation level of assessments for critical scenarios such as outbound data transmission and launch of new products, strengthened end -to-end data security management in third -party cooperation, and conducted regular data security awareness training for all employees to firmly uphold the bottom line of compliance. The Group also reinforced integrated group -wide data quality management, improved the data mechanism of demand coordination, monitoring and operation, empowered data quality management with AI technologies, and constantly carried out data quality control and enhancement initiatives. In terms of fraud risk management, the Group strictly implemented regulatory requirements and tracked changes in external fraud risks. It continued to optimise and improve the fraud risk management system, iteratively refined fraud risk identification tools and systems, actively promoted the application of AI technologies, deepened collaboration among the three lines of defence, and enhanced proactive fraud risk prevention and control capabilities. In terms of ESG risk management, the Group actively improved its ESG risk management system in accordance with regulatory requirements. It expanded internal and external data sources related to ESG risk and further improved the accuracy and coverage of ESG risk management for investment and financing businesses. The Group constantly developed an ESG risk classification management system for customers of investment and financing busi nesses, optimised system management logic, implemented automated alerts and automated system controls for high -risk scenarios, and enhanced the timeliness of systematic controls. In terms of new product risk management, the Group continued to reinforce end -to-end risk management for new products, and improved the new product risk assessment framework. It optimised compliance review mechanisms and processes, and constantly improved product -level AML risk management. The Group upgraded risk assessment system functions, embedded risk management requirements into the entire new product innovation process, promoted the standardisation of risk management at overseas operations, and facilitated the rollout and application of assessment mechanisms and systems across major overseas operations.
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70 3.3.11 Consolidated Management In the first half of 2026, the Bank continued to enhance consolidated management, reinforced various aspects of the Group’s consolidated management, including corporate governance, risk management and capital management, prevented cross -border and cross -industry business risks, and promoted the high-quality development of subsidiaries. The Bank continued to appropriately define the scope of consolidated management in accordance with regulatory requ irements and proactively implemented regulatory requirements on consolidated management and internal risk segregation requirements within the Group. It strengthened business collaboration and top -level design to enhance the Group’s comprehensive service ef ficiency. The Bank continued to improve corporate governance effectiveness at subsidiaries to ensure the thorough implementation of the Group’s management requirements. It reinforced comprehensive risk management at subsidiaries, stepped up its efforts in refining their risk management systems, and enhanced the look-through and effective risk management and control of key business areas. It also cemented the foundation of capital management, and enhanced monitoring and management of capital adequacy of subsidiaries, to push the subsidiaries to constantly meet industry regulatory requirements on capital indicators and maintain a reasonable buffer. The Bank established differentiated concentration risk control targets, dynamically monitored their execution, and elevated concentration risk management standards. It continued to enforce strict constraints on internal transaction limit utilisation and intensified internal transaction controls. It drove improvements in data governance at subsidiaries and consolidated the integrated group-wide data governance capabilities. Furthermore, the Bank pressed ahead with group -wide IT integration and increased its support for subsidiaries’ sci-tech development. 3.3.12 Internal Audit The Group’s internal audit is co mmitted to evaluating and supervising the improvement of risk management, control and governance processes, promoting value creation, and improving business operation. The internal auditors work in a relatively independent manner and are managed vertically. The department is accountable to and reports to the Board and its audit committee, and also reports to senior management. In addition to the audit department at the head office, the Bank has 29 audit offices at tier-one branches and an overseas audit centre in Hong Kong. In the first half of 2026, the audit procedures covered businesses such as loans to large and medium-sized enterprises, special assets resolution, inclusive finance, personal loans, finance and accounting management, liabilities, payment and settlement, key compliance matters, related party transactions, wealth custody, and FinTech, and covered subsidiaries and overseas operations on a cyclical basis. Through performing study and analysis on the underlying causes of identified issues, the Group continued to expand the breadth and depth of audit supervision, strengthened systematic and fundamental rectification, and constantly upgraded management mechanisms, business processes and internal management, so as to effectively promote the sound d evelopment of the Group’s operation and management.
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71 3.4 CAPITAL MANAGEMENT The Group adheres to a robust and prudent capital management strategy and attaches importance to both internal capital accumulation and external capital replenishment. It deeply promotes intensive capital transformation by continuing to strengthen capital constraint and incentives to enhance the efficiency of capital use, retains adequate capital and sound structure, and provides a solid capital foundation for serving the high -quality development of the real economy and implementing the strategic planning of the Bank. In the first half of 2026, the Group maintained a robust and prudent capital management strategy, continued to promote intensive capital transformation and refined management, improved the regulatory capital constraint and transmission mechan isms, and carried out external capital replenishment in an orderly manner on the basis of supplementing capital through retained earnings. It issued the undated capital bonds of RMB30.0 billion, Tier 2 capital bonds of RMB60.0 billion, and non-capital total loss-absorbing capacity (TLAC) bonds of RMB60.0 billion. The Group effectively advanced refined and intensive capital management, and achieved reasonable growth in risk-weighted assets. The Group maintained all capital adequacy ratios above regulatory requirements with ample buffers retained, and continued to achieve compliance with TLAC standards. 3.4.1 Capital Adequacy Ratios According to regulatory requirements, the Group has calculated and disclosed capital adequacy ratios in accordance with the Rules on Capital Management of Commercial Banks since 2024. The scope of calculation includes all domestic and overseas branches and sub -branches, and financial subsidiaries (excluding insurance companies). Based on the approval to implement the advanced capital measurement approach in 2014, the former CBIRC granted approval for the Group to expand the implementation scope of the approach in April 2020. The Group calculates capital adequacy ratios with both advanced approach and other approaches and compli es with relevant requirements for capital floors. At the end of June 2026, the Group’s total capital ratio, Tier 1 ratio and Common Equity Tier 1 ratio, which were calculated in accordance with the Rules on Capital Management of Commercial Banks, we re 19.42 %, 15.15% and 14.24%, respectively, all in compliance with regulatory requirements.
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72 The following table sets forth the Group’s capital adequacy ratios as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Common Equity Tier 1 capital 3,579,066 3,464,852 Tier 1 capital 3,808,054 3,663,783 Total capital 4,879,991 4,663,426 Risk-weighted assets 25,132,550 23,685,171 Common Equity Tier 1 ratio (%) 14.24 14.63 Tier 1 ratio (%) 15.15 15.47 Total capital ratio (%) 19.42 19.69 1. Please refer to Note “Risk management – Capital management” to the financial statements for details of composition of capital. 2. For detailed information on capital adequacy ratios and risk -weighted assets, please refer to the Capital Management Pillar III Half-Year Report 2026 published by the Bank. For further details on undated capital bonds and Tier 2 capital bonds issued by the Group, please refer to Notes “Other equity instruments” and “Debt securities issued” to the financial statements, respectively. 3.4.2 Leverage Ratio According to regulatory requirements, the Group has calculated the leverage ratio in accordance with the Rules on Capital Management of Commercial Banks since 2024. The leverage ratio refers to the ratio of Tier 1 capital to on - and off-balance sheet assets after adjustments. At the end of June 2026, the Group’s leverage ratio was 7.63%, meeting regulatory requirements. The following table sets forth the Group’s leverage ratio as at the dates indicated. (In millions of RMB, except percentages) 30 June 2026 31 December 2025 Leverage ratio (%) 7.63 7.62 Tier 1 capital 3,808,054 3,663,783 On- and off-balance sheet assets after adjustments 49,916,418 48,093,733 1. For detailed information on leverage ratio, please refer to the Capital Management Pillar III Half-Year Report 2026 published by the Bank.
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73 3.5 PROSPECTS Looking ahead to the second half of 2026, with the IMF’s recent downgrade of global economic growth projections, uncertainties persist regarding the economic performance, inflation trajectories, and monetary policy adjustments of major economies. China’s economy has maintained overall stability, and achieved innovative and high-standard growth with new progress in high -quality development, despite difficulties and challenges. China will implement more proactive fiscal policies and moderately accommodative monetary policies, strengthen counter - cyclical adjustments, and intensify efforts to expand domestic demand and optimise supply, so as to promote new, better and sounder sustained economic development and make a strong start to the 15th Five-Year Plan. The banking industry in China is facing both opportunities and challenges. The promulgation and implementation of the national outline of the 15th Five-Year Plan and related special plans, the enhanced effectiveness of macroeconomic policies, the rapid growth of new growth drivers, and the continued deepening of financial reform and high -standard opening -up provide favourable conditions for the Group to enhance its services for Chinese modernisation and support the high - quality development of the real economy. Meanwhile, as the external environment is becoming more complex and volatile, the operating environm ent for the banking sector remains intricate. The Group will maintain a clear understanding of the situation and proactively take effective measures to respond to the changes. In the second half of 2026, the Group will firmly establish and practise a proper view of operation, performance, and risk, closely align with national strategic guidance and fulfil the mission and responsibilities of a leading bank. It will continue to enhance the precision, accessibility, and suitability of its financial services, d riving its own intensive high -quality development while serving the high -quality development of the economy and society. The Group will focus on the following tasks in operations and management: Firstly, the Group will proactively serve national strategies. The Group will support the expansion of domestic demand by delivering robust financial services for the planning and development of the “Two Key Tasks”, “Two Renewals”, and “Six Networks” (i.e., water network, new -type power grid, computing power network, new -generation communication network, urban underground pipeline network, and logistics network) initiatives, actively carrying out the special consumer finance action, and optimising financial services for the private economy. It will expand financial s ervices in urban and county-level areas to better support the integrated development of urban and rural areas. To serve industrial upgrading, the Group will increase financial support for advanced manufacturing and modern infrastructure, so as to facilitat e the transition of economic growth drivers and boost the development of emerging pillar industries and the transformation and upgrade of traditional sectors in a coordinated manner. In supporting high-standard opening-up, the Group will improve its global customer service capabilities and provide high -quality support for the Belt and Road Initiative, by enhancing integrated domestic and foreign currency operations across domestic and overseas markets, in order to deliver robust financial support for foster ing a new development paradigm. Secondly, the Group will effectively advance the “Five Priorities” in finance. The Group will deeply engage in technology finance, and empower self-reliance and strength in science and technology. It will optimise its market layout for technology finance, build an “investment - led commercial banking, and integrated commercial banking and investment banking” model, and create a technology finance service system that aligns with sci -tech innovation. It will step up its efforts in green finance to support low-carbon transition by focusing on new energy systems, green transportation, beautiful cities and countryside, and ecological conservation, refining support pathways, and deepening comprehensive services. The Group will enhance inclusive finance and serve micro and small businesses and people’s livelihood. It will continuously diversify its inclusive finance offerings, comprehensively strengthen financial services for private, micro and
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74 small enterprises, rural revitalisation, a nd key livelihood sectors, and enhance its sustainable development capabilities. It will strengthen pension finance to support the silver economy by implementing the proactive national strategy in response to population aging, advancing a full - chain layout covering pension reserves, pension industry cultivation, and pension service supply and consumption, to better meet increasingly diverse pension finance needs. Furthermore, the Group will refine digital finance to enhance service efficiency. It will proactively align with digital economy trends, deeply implement the “AI+” initiative, and strengthen digital and intelligent operational capabilities, so as to improve the quality and efficiency of financial services in key sectors. Thirdly, the Group will expe dite the transformation of its development model. The Group will adapt to the shifts in economic development models, industrial structures, and social financing patterns during the 15th Five -Year Plan period, consolidate and expand its strengths in traditional distinctive areas, and reinforce the weak areas, in five aspects including business deployment, financing methods, customer structure, development space, and service models. It will strengthen coordination and synergy across the group by pressing ahea d with the integration of commercial and investment banking, the integration of corporate and personal banking, the integration of Renminbi and foreign currency businesses, and the integration of group -wide operations, enhance the integration of internal r esources within the Group and the synergy of external ecosystems, build a financial service system that covers the full lifecycle and all-scenario needs of customers, and improve the quality and efficiency of serving customers and promoting economic and social development. Fourthly, the Group will firmly adhere to the bottom line of risk and compliance. The Group will effectively enhance its capacity to prevent financial risks, strengthen accountability for risk prevention and control, and continue to imp rove the comprehensive, proactive, intelligent, and agile risk control system to actively respond to changes in risk landscape in a forward -looking manner. It will focus on asset quality control and management, and closely monitor key areas to effectively identify and mitigate potential risks. The Group will comprehensively and effectively refine fundamental management, strengthen centralised risk prevention and control, enhance “offline + online” collaborative risk control capabilities, improve compliance management system, and continue to cement the foundation for prudent operations.
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75 4 CORPORATE GOVERNAN CE, ENVIRONMENT AND SOCIETY 4.1 CORPORATE GOVERNANCE During the reporting period, the Bank fully complied with the code provisions as set out in Part 2 of the Appendix C1 Corporate Governance Code to the Listing Rules of Hong Kong Stock Exchange, and substantially adopted the best practices therein. 4.1.1 Profiles of Directors and Senior Management Particulars of Directors and Senior Management Directors of the Bank The Bank’s Board consists of 16 directors, including four executive directors, namely Mr. Zhang Jinliang, Mr. Zhang Yi, Mr. Sun Xiaokun and Mr. Ji Zhihong; six non-executive directors, namely Ms. Xin Xiaodai, Ms. Li Lu, Ms. Li Li, Mr. Dou Hongquan, Ms. Cao Liqun and Mr. Shi Jian; and six independent non -executive directors, namely Mr. William Coen, Mr. Leung Kam Chung, Antony, Lord Sassoon, Mr. Lin Zhijun, Mr. Zhang Weiguo and Mr. Yang Qiang. Senior Management of the Bank The Bank’s senior management consist s of six members, namely Mr. Zhang Yi, Mr. Ji Zhihong, Mr. Li Jianjiang, Ms. Han Jing, Mr. Lei Ming and Mr. Tang Shuo. Changes in Directors and Senior Management Directors of the Bank Upon election at the first extraordinary shareholders’ meeting of 2026 of the Bank and approval of the NFRA, Mr. Sun Xiaokun began to serve as executive director of the Bank from June 2026. Upon election at the 2025 annual shareholders’ meeting of the Bank, Mr. Ji Zhihong continued to serve as executive director of the Bank , Lord Sassoon continued to serve as independent non - executive director of the Bank, and Ms. Cao Liqun began to serve as non-executive director of the Bank from June 202 6. Upon election at the second extraordinary shareholders’ meeting of 2025 of the Bank and approval of the NFRA, Mr. Shi Jian began to serve as non -executive director of the Bank from January 2026. Upon election at the 2025 annual shareholders’ meeting of the Bank and approval of the NFRA, Mr. Yang Qiang began to serve as independent non-executive director of the Bank from August 2026. Due to expiration of term of office, Ms. Liu Fang ceased to serve as non-executive director of the Bank from June 2026. Senior Management of the Bank Upon appointment of the Board of the Bank, Mr. Zh ang Yi began to concurrently serve as chief compliance officer of the Bank from February 2026. Upon appointment of the Board of the Bank and approval of the NFRA, Mr. Tang Shuo began to serve as executive vice president of the Bank from January 2026. By reason of age, Mr. Sheng Liurong ceased to serve as chief financial officer of the Bank from March 2026. Changes in Personal Information of Directors and Senior Management Mr. Leung Kam Chung, Antony, independent non-executive director of the Bank, began to serve as trustee of Board of Trustees of Westlake University from April 2026.
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76 Ms. Han Jing, executive vice president of the Bank, began to concurrently serve as vice president of the Payment & Clearing Association of China from April 2026. Directors’ Securities Transactions In relation to securities transactions by directors of the Bank, the Bank has adopted the Model Code for Securities Transactions by Directors of Listed Issuers as set out in the Appendix C3 to the Listing Rules of Hong Kong Stock Exchange. All directors complied with the provisions of the above code during the reporting period. 4.1.2 Employees The following table sets forth the distribution of the Group’s employees by region as at the dates indicated. 30 June 2026 31 December 2025 Number of employees % of total Number of employees % of total Domestic operations of the Bank 351,059 94.01 355,802 94.05 Yangtze River Delta 53,796 14.41 54,390 14.38 Pearl River Delta 44,875 12.02 45,396 12.00 Bohai Rim 58,840 15.75 59,357 15.69 Central 70,608 18.91 71,519 18.90 Western 75,515 20.22 76,871 20.32 Northeastern 32,258 8.64 32,886 8.69 Head office1 15,167 4.06 15,383 4.07 Overseas operations of the Bank 1,355 0.36 1,338 0.35 Subsidiaries 21,016 5.63 21,204 5.60 - Domestic 16,422 4.40 16,684 4.41 - Overseas 4,594 1.23 4,520 1.19 Total 373,430 100.00 378,344 100.00 1. Including employees of the head office, credit card centre, CCB learning centre (IICCB) and institutions directly under the head office. At the end of June 2026, the Group had 373,430 employees, a decrease of 1.30% from the end of 2025. The number of employees with academic qualifications of bachelor ’s degree or above was 315,971 or 84.61% of total. Besides, there were 3, 170 workers dispatched from labour leasing companies, a decrease of 2.04% from the end of 2025. In addition, the Group had 140,613 retired employees. Staff Development and Training Leveraging the dual career paths of the managerial and professional and technical job tracks, the Bank systematically develop ed comprehensive career development pathways for its employees and establishe d a competitive, merit -based selection mechanism based on performance and capabilities, thereby encouraging employees to deepen their expertise in their respective fields and continuously enhance their core competencies and professional qualities.
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77 The Bank continued to strengthen the overall planning of staff training and built a training system covering the entire cycle of career development of employees, supporting human capital development through high-quality training. It integrated high-quality internal and external training resources and focused its training on enhancing the “Three Capabilities ”, delivering the “Five Priorities” in finance, and advancing the “Four Integrations”, among other areas, with a view to improving employees ’ overall com petence and duty performance. The Bank strengthened the development of professional talent in areas including direct financing, international business, risk management and artificial intelligence, and provided systematic and practice -oriented training to support the development of professional talent. It continued to develop the “CCB Learning” online learning platform, enabling various high -quality training resources to reach frontline employees and achieve full staff coverage. In the first half of 2026, 36 6.0 thousand participants took part in on -site and online training sessions (including learning through online platforms) and the proportion of those who participated in training sessions reached 97.8 3% of all staff members . In addition, the Bank organi sed 125.4 thousand individuals to participate in professional and technical grade examinations. Staff Remuneration Policies There were no material changes to the information on the Bank ’s staff remuneration policies as disclosed in the Bank’s 2025 annual report. Progress of Implementation of Employee Stock Incentive Plan The Bank implemented the first phase of the employee stock incentive plan in July 2007. For details, please refer to the announcement published by the Bank on 6 July 2007. The Bank had not added new participants or implemented a new phase of stock incentive plan ever since. In the future, the Bank will pay close attention to regulatory policies and industry trends and explore innovative incentives as appropriate. 4.1.3 Formulation and Implementation of Profit Distribution Policy The Bank may distribute dividends in the form of cash, shares or a combination of cash and shares. Unless under special circumstances, the Bank shall distribute dividends in cash if it gains profit and has positive accumulative undistributed profits in the period. The cash dividends distributed by the Bank in a year shall be no less than 10% of the Group ’s net profit attributable to equity shareholders of the Bank for the same year. When adjusting the profit distribution policy, the Board shall conduct a specific discussion to elaborate on the causes for adjustments and prepare a written report. Independent non -executive directors shall express their views, and the matter shall be approved in the form of a special resolution by the shareholders’ meeting. The Bank shall provide the shareholders with online voting channels when discussing and approving the adjustments to the profit distribution policy, listen to the opinions of minority shareholders, and re spond to the concerns of minority shareholders in a timely manner. The formulation and implementation of the Bank ’s profit distribution polic y conform to the provisions of the Articles of Association and the requirements of the resolutions of the shareholders’ meeting. The Bank has sound decision -making procedures and mechanisms as well as clear and definite standard and ratio for dividend distribution. Independent non-executive directors conduct due diligence and fulfil their duties in the decision-making process of the profit distribution plan. Minority shareholders may fully express their opinions and appeals, and their legitimate rights and interests are fully protected. Upon approval of the 202 5 annual shareholders’ meeting, the Bank distributed a final cash dividend of RMB2.0 29 per ten shares (including tax) for 2025, totalling approximately RMB53,079 million, to all ordinary shareholders whose names appeared on the register of
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78 members after the closing of the stock market on 10 July 2026. After taking into consideration an interim cash dividend of RMB1. 858 per ten shares (including tax) distributed in 2025, the cash dividend per ten shares (including tax) for 2025 was RMB3.887, with cash dividends for the year totalling approximately RMB10 1,684 million, representing 30.0% of the Group ’s net profit attributable to equity shareholders of the Bank for 2025. The Board of the Bank proposed an interim cash dividend of RMB2.010 per ten shares (including tax) for 2026, totalling approximately RMB 52,582 million, or 31.0% of the Group ’s net profit attributable to equity shareholders of the Bank for the first half of 2026, to all ordinary shareholders. The Bank will propose to convene an extraordinary shareholders’ meeting in the second half of 2026 to consider and a pprove the interim profit distribution plan for 2026 , and it will distribute cash dividends within two months following the approval. A currency election will be arranged for the distribution of interim H -share cash dividend. Holders of H -shares (excluding holders under Hong Kong Stock Connect) may choose to receive the full cash dividend in RMB or HKD (HKSCC Nominees Limited may elect to receive part or all of the cash dividend). Upon the interim profit distribution plan for 2026 being approved by the shareholders’ meeting, the Bank will send a Dividend Currency Election Form to holders of H-shares in due course. Holders of H-shares will receive interim H -share cash dividend in HKD by default, unless they complete the Dividend Currency Election Form and elect to receive interim H -share cash dividend in RMB. For details including the date of record, period for closure of register of member s, specific payment date, taxation and tax reduction and exemption in relation to the 2026 interim cash dividend distribution, please refer to the Bank’s upcoming announcements. 4.1.4 Implementation Progress of the Action Plan for Quality Improvement, Efficiency Enhancement, and Return Maximisation In the first half of 2026, the Bank resolutely implemented the decisions and plans of the CPC Central Committee and the State Council as well as regulatory requirements , firmly established and practised a correct view of official performance, persevered in seeking progress while maintaining stability, improved the quality and efficiency, and achieved steady and positive growth in its principal businesses. The Bank active ly promoted high -quality development of the real economy. Assets and liabilities maintained steady growth, while support for key areas of the real economy was further strengthened. The proportion of loans to key areas such as the “Five Priorities” in finance increased steadily, and service quality and efficiency continued to improve. The Bank also supported the implementation of a more proactive fiscal policy by increasing investments in treasury bonds and local government bonds. In addition, the Bank focus ed on strengthening the foundation for deposit growth and continu ed to consolidate the basis for business development, providing strong support for asset growth. Key performance indicators remained balanced and well-coordinated, operating results were in l ine with expectations, value creation capabilities continued to improve, and the foundation for enhancing valuation was further strengthened. The Bank has always highly valued investor returns, maintaining consistent and stable dividends. Since its listing, the Bank has distributed cumulative dividends exceeding RMB1.4 trillion, with dividends exceeding RMB100 billion in each of the past three years. The Bank has successfully completed the distribution of its 2025 final dividend, and will proceed in an orde rly manner with the payment of its 2026 interim dividend with the dividend payout ratio rising to 31 .0% from 30.0% in 2025, and continue to offer H-share shareholders the option to receive dividends in RMB. The Bank strictly complied with laws, regulations and regulatory requirements and fulfilled its information disclosure obligations in accordance with laws and regulations, ensuring that significant matters were disclosed truthfully, accurately, completely and promptly. It continued to strengthen voluntary disclosures and enhance the effectiveness and transparency of information disclosure. The Bank systematically reviewed the drafting and review processes for information
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79 disclosure documents, further optimising its information disclosure systems and mecha nisms and consolidating the foundation for its work. The Bank continued to strengthen investor relations management, deepen communication and exchanges with the capital market, and respond to market concerns in a timely manner, comprehensively demonstrating its achievements in intensive high-quality development, and continuously consolidating and improving its positive image in the capital market. 4.2 ENVIRONMENTAL AND SOCIAL RESPONSIBILITY For details of the Bank’s performance on fulfilling corporate social responsibilities and ESG , please refer to the 2026 Semi-annual Sustainable Finance Report released by the Bank. Green Finance For details of green finance, please refer to “Management Discussion and Analysis – Business Review” in this report. Green Operation Adhering to the concept of green development , t he Bank continue d to strengthen its green operation management. The Bank advocated green office practices. It coordinated equipment renewal and renovation with energy efficiency enhancement, promoting the implementation of energy -saving, water-saving, emission reduction and waste reduction measures. It vigorously imple mented paperless office operations, upgraded its carbon emission management system, and enhanced its technological capability for carbon management. Based on the completion of carbon neutrality for 75 office buildings in 2025, the Bank carried out carbon neutrality pilot programmes for 195 office buildings through the integrated use of technological energy conservation, management -based energy savings, clean energy substitution and carbon offsets. In the first half of 2026, the pilot buildings entered the electricity trading market as scheduled and used green electricity. The Bank promoted green procurement. It incorporated green and environmental protection requirements throughout the entire procurement process, and implemented green procurement requirements in supplier recommendation, product testing and evaluation, supplier evaluation and contract signing. Under the same conditions, it prioritised the purchas e of goods with green and environmental protection credentials. Among goods with green credentials, the Bank gave preference to suppliers with more green credentials and higher-degree green material. The Bank promoted the construction of green outlets by focusing on building green outlets that feature green and low -carbon, environmental protection and e nergy conservation, human touch and intelligent operation. By the end of June 2026, the Bank had cumulatively opened 2,702 green outlets. The Bank promoted the green transformation of its data centres. Focusing on key areas including IT efficiency improvem ent, air-conditioning energy conservation, electrical renovation and the introduction of green electricity, the Bank refined green management and control measures throughout the full life cycle, and established a bank -wide coordinated system for the green transformation of data centres. In the first half of 2026, with a focus on green and intensive development, the Bank implemented a number of key quality improvement projects and launched special actions to enhance efficiency, effectively reducing energy co nsumption through energy - saving upgrades of hardware equipment, renovation of existing server rooms and expansion of cloud resource supply.
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80 Consolidating and Expanding the Achievements in Poverty Elimination with Targeted Assistance The Bank established a normalised mechanism for financial support, continued to increase its credit support, assisted the all -round rural revitalisation, and prevented people from returning to, or falling back into poverty. It diligently implemented targeted assistance programmes in Ankang, Shaanxi Province, successfully achieving all assistance tasks in a high standard. At the end of June 2026, the balance of loans in areas lifted out of poverty amounted to RMB1.41 trillion, an increase of RMB83,757 million or 6.31% over the end of 2025; the balance of loans in key counties for national rural revitalisation amounted to RMB176,143 million, an increase of RMB5,590 million or 3.28% over the end of 2025. Financial Services for Rural Revitalisation The Bank provided high -quality financial services to promote integrated development of urban and rural areas and boost all -around rural revitalisation. At the end of June 2026, the number of agriculture-related loan borrowers was 3.98 million, an increase of 51. 1 thousand over the end of 2025. Agriculture-related loans totalled RMB3.89 trillion, an increase of RMB183,902 million, or 4.96% over the end of 2025. The weighted average interest rate of agriculture-related loans granted in the first half of 2026 was 2.88%. The Bank promoted the high -quality development of counties with financial services based on local conditions. At the end of June 2026, the Bank’s loans in counties amounted to RMB6.57 trillion, an increase of RMB473,650 million or 7.77% from the end of 2025. Specifically, personal loans in counties were RMB2.35 trillion, an increase of RMB35,703 million or 1.54% over the end of 2025; corporate loans in counties amounted to RMB4.22 trillion, an increase of RMB437,947 million or 11.58% over the end of 2025. For agriculture -related enterprises and various organisations, the Bank actively promoted the “Rural Revitalisation Loan” product packages, and provided targeted services for key links and core customers for food security by promoting products such as “Quick Loan for Cooperatives”, “Agri-Product Cold Chain Logistics Loan”, and “Agricultural Facility Loan”. The Bank created an agriculture -related service model featuring “ecosystems + industrial and supply chains + industrial and business clusters” to cov er the agricultural industry ecosystem across all scenarios, customer segments, and value chains. It worked around the “Yunong Market” business clusters and seed industry chain, so as to achieve full financial service coverage for agriculture-related entities including agricultural wholesale and retail markets, seed enterprises, and farmers, and help with industrial development in rural areas and increase farmers’ income and wealth. Protection of Consumers’ Rights and Interests The Bank adhered to a people -centred value orientation and strictly followed regulatory requirements. It improved the integrated group -wide consumer protection management mechanism, refined its management system, and enhanced digital and intelligent management capabilities, so as to effectively safeguard the legitimate rights and interests of consumers. The Bank continued to deepen the integration of consumer protection with business processes. It took consumer protection review as a key measure for full -process management and control of consumer protection work. Across stages including product and service design and development, pricing management, agreement formulation, product agency sales, marketing and advertisement, and focusing on key areas such as marketing and advertisement st andards, appropriateness management, personal information protection, and fee and pricing management, the Bank reviewed products or services in advance from consumers’ perspective. This effectively leveraged
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81 the “prevention in advance” role of consumer protection review and strengthened the first line of defence for the protection of consumers’ rights and interests. In the first half of 2026, the Bank completed a total of 243.3 thousand cases of consumer protection review, representing an increase of 12.43% over the first half of 2025. The Bank actively conducted financial knowledge popularisation and education activities. Taking into account local characteristics and regional features, it carried out differentiated financial knowledge education to enhance t he inclusiveness and effectiveness of financial education and expand its coverage. The Bank organised “15 March” consumer rights protection education publicity events under the theme of “Clean ing Financial Cyberspace, Safeguarding Reassuring Consumption”, organising a total of 74 thousand events and reaching 760 million consumer touchpoints. The Bank enhanced the refined management of complaints. It continued to reinforce accountability in complaint management, strictly implementing the “first-point-of-contact accountability system”. It also established a categorised and tiered complaint management system, optimised and improved the disclosure of complaint acceptance channels, and strengthened full-process management and control of consumer protection, front -end monitoring of complaint issues and complaint s governance at source. The Bank promoted its efforts in locating the sources of problems reflected in customer complaints, and enhanced customer service experience. Public Welfare and Charity The Bank is fully committed to fulfilling its social responsibility as a large state -owned bank, actively mobilise s employees to participate in public welfare, engage s customers to devote themselves to public welfare, and partner s with organisations to carry out publi c welfare, integrating public welfare concept into financial services. Fully leveraging its financial expertise, the Bank organise s various public welfare activities and voluntary services, br ings warmth to millions of households with sincere services, and continues to pass on the positive spirit and energy to society. The Bank formulates the group-wide donation plan at the beginning of each year, giving priority to the financial demands for consolidating the achievements in poverty alleviation and advancing rural revitalisation. For other public welfare needs of the head office and branches, the Bank makes a comprehensive assessment of national strategies, urgent needs of society, etc., to ensure that resources are allocated to the areas where they are most urgently needed. In the first half of 2026, the Bank prioritised targeted assistance areas, adhered to the combination of industry-driven development and talent cultivation, and effectively supported rural construction and integrated urban-rural development. It continued to support long-term public welfare projects such as the “Building the Future - CCB Sponsorship Programme for the Development of Poverty- stricken High School Students”, CCB Hope Primary Schools, the “Healthy Mother Express”, and the San Ji ang Yuan Ecological Conservation Project. Branches actively responded and jointly carried out distinctive activities, including “Red Gate Public Welfare Station · Pioneer Leadership Initiative” of Beijing Branch, “Currency Culture Classroom” of Henan Branc h, and “Soma Flowers Blossom: Encountering the Future with CCB” public welfare student assistance programme of Sichuan Branch.
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82 5 MAJOR ISSUES Performance of Undertakings In September 2004, Huijin made a commitment of “non-competition within the industry”, i.e., as long as Huijin continues to hold any shares of the Bank, or is deemed as a controlling shareholder or a related party of a controlling shareholder of the Bank in accordance with related laws of the People’s Republic of China or listing rules of the Bank’s listing venues, Huijin would not engage in or participate in any competing commercial banking businesses, including but not limited to granting loans, taking deposits, providing settlement, fund custody, bank card and currency exchange services. However, Huijin may still engage in or participate in competing businesses through investing in other commercial banks. Accordingly, Huijin committed that it would: (1) fairly treat its investments in commercial banks and would not abuse its shareholder po sition in the Bank or the information it obtained through its shareholder position in the Bank to make decisions detrimental to the Bank but beneficial to other commercial banks; and (2) exercise its shareholder’s rights for the best interests of the Bank. On 6 April 2016, in accordance with relevant rules of the CSRC, in order to ensure the effective fulfilment of the measures to make up for the immediate return diluted by the issuance of preference shares of the Bank, Huijin undertook not to intervene wit h the operation and management of the Bank and not to misappropriate the interests of the Bank. On 30 March 2025, in accordance with relevant rules of the CSRC, in order to ensure the effective fulfilment of the measures to make up for the immediate return diluted by the issuance of A-shares to specific target by the Bank, Huijin undertook not to intervene with the operation and management of the Bank and not to misappropriate the interests of the Bank. On 30 March 2025, based on the Share Subscription Agre ement with Conditions that the Bank executed with the MOF, the MOF warranted that the A-shares issued to specific target and subscribed by the MOF shall be subject to a lock -up period of five years from the date of acquisition of the equity. If the lock-up period for shares subscribed by the MOF and the transfer of shares upon expiration are otherwise regulated by the relevant regulatory authorities, such provisions shall prevail. During the lock-up period, the shares derived from the shares subscribed by the MOF under the issuance due to activities by the Bank, such as bonus issue and capitalisation of capital reserve, shall also comply with the aforementioned arrangement for lock -up period. Upon expiration of the lock -up period, the transfer of the shares subscribed by the MOF will be implemented in accordance with the Company Law and other relevant laws, regulations, as well as relevant regulations of the NFRA, the CSRC, and the SSE. As of 30 June 2026, Huijin and the MOF had not breached any of the above undertakings. Misappropriation of Funds for Non-operational Purposes During the reporting period, there was no misappropriation of the Bank’s funds by the controlling shareholder or other related parties for non-operational purposes. Illegal Guarantees During the reporting period, the Bank did not enter into any guarantee contract in violation of relevant regulations. Material Litigations and Arbitrations During the reporting period, the Bank was not subject to any material litigation or arbitration. For overall information o f outstanding litigations and disputes , please refer to Note “Commitments and contingent liabilities - Outstanding litigations and disputes” to the financial statements.
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83 Purchase, Sale and Redemption of Shares During the reporting peri od, neither the Bank nor any of its subsidiaries purchased, s old or redeemed any of its shares (including sale of treasury shares). At the end of the reporting period, neither the Bank nor its subsidiaries held any treasury shares of the Bank. Penalties During the reporting period, the Bank was not subject to any investigations in accordance with laws for any suspected crimes. Neither the controlling shareholder, actual controller, directors, nor the senior executives of the Bank were subject to coercive measures in accordance with laws for any suspected crimes, or were detained by disciplinary inspection and supervision authorities for suspected serious violations of disciplines and laws or for duty-related crimes and were unable to fulfil duties due to such reasons. Neither the Bank, the controlling shareholder, actual controller, directors, nor the senior executives of the Bank were subject to criminal penalties, investigations or administrative penalties by the CSRC for suspected violations of laws and regulations, material administrative punishments by other competent authorities, or administrative supervision measures by the CSRC or disciplinary actions by the stock exchanges. Neither the directors, nor the senior executives of the Bank were subject to coercive measures by other relevant authorities for suspected violations of laws and regulations and were unable to fulfil duties due to such reason. Integrity During the reporting period, the Bank and its controlling shareholder had no unperformed obligations rendered by valid legal documents of the courts, or significant outstanding matured debts. Material Related Party Transactions According to regulatory requirements including the Measures for the Administration for Related Party Transactions of Banking and Insurance Institutions, where a bank and the same related party have long -term and ongoing related party transactions that require repeated execution of transaction agreements, including transactions for the provision of services, insurance bus iness transactions and other related party transactions recognised by regulatory authorities, they may enter into a unified transaction agreement. Related party transactions conducted under such agreement are not required to be reviewed, reported or disclo sed on a transaction -by-transaction basis. The execution of the agreement shall be subject to internal review, reporting and information disclosure in accordance with the requirements applicable to material related party transactions. On 31 March and 10 April 2026, the Bank entered into unified transaction agreements with CCB Financial Leasing Co., Ltd. and CCB Shipping and Aviation Leasing Corporation Limited, respectively, to govern credit-related related party transactions between the Bank and each of them. The above two agreements are valid for three years, commencing on 15 April 2026 and expiring on 14 April 2029, with estimated transaction caps equivalent to RMB655.4 billion and RMB258.7 billion, respectively. The agreements were considered and approve d at the meeting of the Board of the Bank held on 27 March 2026, reported to the NFRA, and announced on the Bank’s website. Going forward, the Bank will monitor, report and make regular disclosures of related party transactions under the agreements in accordance with regulatory requirements. Save as disclosed above, the Bank did not have any other material related party transactions during the reporting period.
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84 Material Contracts and Their Performance During the reporting period, the Bank did not enter in to any material arrangement for custody, contracting or leasing of other companies’ assets, or allow its assets to be subject to such arrangements by other companies. The guarantee business is a routine off-balance sheet service in the ordinary course of the Bank’s business. The Bank does not have any material guarantee that is required to be disclosed except for the financial guarantee services within its business scope as approved by the regulators. During the reporting period, the Bank did not enter into any other material contract that was required to be disclosed. Major Events For major events during the reporting period, please refer to announcements disclosed by the Bank on the websites of the SSE, “HKEXnews” of Hong Kong Exchanges and Clearing Limited and the Bank. Other Shareholding or Share Participations In April 2026, the Bank completed the first payment of the third contribution of RMB2,795 million to China Integrated Circuit Industry Investment Fund Phase III Co., Ltd. Review of Half-Year Report The Group’s 2026 half-year financial statements prepared under PRC GAAP have been reviewed by Ernst & Young Hua Ming LLP, and the Group’s 2026 half-year financial statements prepared under IFRS Accounting Standards have been reviewed by Ernst & Young. The Group’s 2026 half-year report has been approved by the Board, and the financial statements and relevant financial information in the report have been reviewed by the audit committee of the Board of the Bank.
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85 6 CHANGES IN SHARE CAPITAL AND PARTICUL ARS OF SHAREHOLDERS 6.1 CHANGES IN ORDINARY SHARES Unit: share 1 January 2026 Change during the reporting period +/(-) 30 June 2026 Number of shares Percentage (%) Issuance of additional shares Bonus issue Shares converted from capital reserve Others Sub- total Number of shares Percentage (%) I. Shares subject to selling restrictions 1. Shares held by the State 1 11,589,403,973 4.43 - - - - - 11,589,403,973 4.43 II. Shares not subject to selling restrictions 1. RMB ordinary shares 9,593,657,606 3.67 - - - - - 9,593,657,606 3.67 2. Overseas listed foreign investment shares 95,231,418,499 36.40 - - - - - 95,231,418,499 36.40 3. Others 2 145,185,901,381 55.50 - - - - - 145,185,901,381 55.50 III. Total number of shares 261,600,381,459 100.00 - - - - - 261,600,381,459 100.00 1. The lock-up period for the A-shares issued to the MOF by the Bank is five years from the date of equity acquisition on 24 June 2025. 2. H-shares of the Bank not subject to selling restrictions held by the promoters of the Bank, i.e., Huijin, State Grid, Yangtze Power and Baowu Steel Group. 6.2 NUMBER OF ORDINA RY SHAREHOLDERS AND PARTICULARS OF SHAREHOLDING At the end of the reporting period, the Bank had a total of 292,731 ordinary shareholders, of whom 257,897 were holders of A-shares and 34,834 were holders of H-shares. Unit: share Total number of ordinary shareholders 292,731 (Total number of registered holders of A-shares and H-shares as at 30 June 2026) Particulars of shareholding of top ten ordinary shareholders (excluding shares on loan through refinancing) Name of ordinary shareholder Nature of shareholder Shareholding percentage (%) Changes during the reporting period Total number of shares held Number of shares subject to selling restrictions held Huijin State 54.51 - 142,590,494,651 (H-shares) - 0.10 - 267,392,944 (A-shares) - HKSCC Nominees Limited1 Overseas legal person 32.86 1,679,259 85,953,826,041 (H-shares) - MOF2 State 4.43 - 11,589,403,973 (A-shares) 11,589,403,973 China Great Wall AMC State-owned legal person 3.01 - 7,865,000,000 (H-shares) - China Securities Finance Corporation Limited State-owned legal person 0.84 - 2,189,259,672 (A-shares) - State Grid3 State-owned legal person 0.62 - 1,611,413,730 (H-shares) - Reca Investment Limited Overseas legal person 0.33 - 856,000,000 (H-shares) - Yangtze Power State-owned legal person 0.25 - 648,993,000 (H-shares) - Hong Kong Securities Clearing Company Ltd.4 Overseas legal person 0.24 5,898,477 628,582,239 (A-shares) - China Life Insurance Company Limited - Traditional - Ordinary insurance product - 005L-CT001SH Others 0.21 442,545,362 542,588,282 (A-shares) - 1. The number of shares held by HKSCC Nominees Limited at the end of the period represents the total number of H -shares of the Bank it held as a nominee on behalf of all institutional and individual investors registered with it as at 30 June 2026. As at 30 June 2026, State Grid, Yangtze Power, and Baowu Steel Group held 1,611,413,730 H -shares, 648,993,000 H-shares and 335,000,000 H-shares of the Bank respectively, and China Great Wall AMC beneficially held 7,865,000,000 H-shares of the Bank, all of which were held under the name of HKSCC Nominees Limited. Save the aforesaid H -shares of the Bank, 85,953,826,041 H-shares of the Bank were held under the name of HKSCC Nominees Limited, which included the H -shares
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86 of the Bank held by Ping An Asset Management Co., Ltd. as an investment manager on behalf of several customers, as well as those held by Ping An Insurance (Group) Company of China, Ltd. through its controlled enterprises. 2. The Bank attracted strategic investment from the MOF through issuanc e of A-shares to specific target. As at 30 June 2026, the MOF held 11,589,403,973 A-shares of the Bank. The lock-up period is five years from the date of equity acquisition as at 24 June 2025. 3. As at 30 June 2026, the holdings of H -shares of the Bank by Sta te Grid through its subsidiaries were as follows: State Grid International Development Co., Ltd. held 296,131,000 shares, and State Grid International Development Limited held 1,315,282,730 shares. 4. The number of shares held by Hong Kong Securities Clearing Company Ltd. at the end of the period represents the total number of A -shares of the Bank (shares of northbound trading) it held as a nominee designated by and on behalf of Hong Kong and overseas investors. 5. Huijin holds 66.70% equity interest in China Securities Finance Corporation Limited and 94.34% equity interest in China Great Wall AMC. HKSCC Nominees Limited is a wholly-owned subsidiary of Hong Kong Securities Clearing Company Ltd. Apart from the aforesaid equity interest relationships , the Bank is no t aware of any connected relation or concerted action among the aforesaid shareholders. Huijin exercises the contributor’s rights and obligations in key state -owned financial institutions on behalf of the State, and it does not engage in any other commercial business activities, nor does it interfere with daily operations of the key state-owned financial institutions of which it is the controlling shareholder. 6. As at 30 June 2026, none of the top ten shareholders of the Bank were involved in margin trading, short selling or refinancing of funds or securities, except that the status of HKSCC Nominees Limited was unknown. 7. None of the aforesaid shares were pledged, marked or frozen except that the status of the shares held under the name of HKSCC Nominees Limited was unknown. Unit: share Particulars of shareholding of top ten ordinary shareholders not subject to selling restrictions (excluding shares on loan through refinancing) Number of ordinary shares held not subject to selling restrictions Huijin 142,590,494,651 (H-shares) 267,392,944 (A-shares) HKSCC Nominees Limited 85,953,826,041 (H-shares) China Great Wall AMC 7,865,000,000 (H-shares) China Securities Finance Corporation Limited 2,189,259,672 (A-shares) State Grid 1,611,413,730 (H-shares) Reca Investment Limited 856,000,000 (H-shares) Yangtze Power 648,993,000 (H-shares) Hong Kong Securities Clearing Company Ltd. 628,582,239 (A-shares) China Life Insurance Company Limited - Traditional - Ordinary insurance product - 005L - CT001SH 542,588,282 (A-shares) Central Huijin Asset Management Ltd 496,639,800 (A-shares) 1. Huijin holds 100% equity interest in Central Huijin Asset Management Ltd., 66.70% equity interest in China Securities Finance Corporation Limited, and 94.34% equity interest in China Great Wall AMC. HKSCC Nominees Limited is a wholly -owned subsidiary of Hong Kong Securities Clearing Company Ltd. Apart from the aforesaid equity interest relationships, the Bank is not aware of any connected relation or concerted action among the aforesaid shareholders. Huijin exercises the contributor’s rights and obligations in key state -owned financial institutions on behalf of the State, and it does not engage in any other commercial business activities, nor does it interfere with daily operations of the key state-owned financial institutions of which it is the controlling shareholder. 2. As at 30 June 2026, none of the top ten shareholders not subject to selling restrictions of the Bank were involved in margin trading, short selling or refinancing of funds or securities, except that the status of HKSCC Nominees Limited was unknown. Trading Schedule for Shares Subject to Selling Restrictions Unit: share Date Number of new tradable shares upon the expiry of the lock-up period Remaining number of shares subject to selling restrictions Remaining number of shares not subject to selling restrictions Note 24 June 2030 11,589,403,973 - 261,600,381,459 Shares held by the MOF
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87 Number of Shares Held by the Shareholder Subject to Selling Restrictions and the Selling Restrictions Unit: share Name of shareholder subject to selling restrictions Number of shares held subject to selling restrictions Tradable Date Number of new tradable shares Selling restrictions MOF 11,589,403,973 24 June 2030 - Five years from the date of equity acquisition 6.3 CHANGES IN CONTR OLLING SHAREHOLDER A ND ACTUAL CONTROLLING PARTY During the reporting period, there was no change in controlling shareholder or actual controlling party of the Bank. 6.4 INTERESTS AND SHORT POSITIONS OF SUBSTANTIAL SHAREHOLDERS AND OTHER PERSONS As at 30 June 2026, the interests and short positions of substantial shareholders and other persons in the shares and underlying shares of the Bank as recorded in the register required to be kept under Section 336 of the Securities and Futures Ordinance (SFO) of Hong Kong were as follows: Name Type of shares Title Number of shares Nature of rights and interests % of A- shares issued % of H- shares issued % of total ordinary shares issued Huijin 1 A-shares Beneficial owner 267,392,944 Long position 1.26 - 0.10 Interest of controlled corporations 2,685,899,472 Long position 12.68 - 1.03 MOF 2 A-shares Beneficial owner 11,589,403,973 Long position 54.71 - 4.43 Huijin 3 H-shares Beneficial owner 142,590,494,651 Long position - 59.31 54.51 Interest of controlled corporations 7,865,000,000 Long position - 3.27 3.01 1. On 27 June 2025 , Huijin declared its interests to the Hong Kong Stock Exchange. It disclosed that it held interests of 2,953,292,416 A-shares of the Bank, accounting for 13.94% of the A-shares issued (21,183,061,579 shares) and 1.13% of the ordinary shares issued (261,600,381,459 shares), in which 267,392,944 A-shares were directly held by Huijin, 496,639,800 A- shares were held by Central Huijin Asset Management Ltd., a wholly-owned subsidiary of Huijin, and 2,189,259,672 A-shares were held by China Securities Finance Corporation Limited, a controlled entity of Huijin. As at 30 June 2026, according to the A-share register of shareholders of the Bank, Huijin directly held 267,392,944 A-shares of the Bank, Central Huijin Asset Management Ltd. directly held 496,639,800 A-shares of the Bank, and China Securities Finance Corporation Limited directly held 2,189,259,672 A-shares of the Bank. 2. On 26 June 2025 , the MOF declared its interests to the Hong Kong Stock Exchange. It disclosed that it held interests of 11,589,403,973 A-shares of the Bank, accounting for 54.71% of the A-shares issued (21,183,061,579 shares) and 4.43% of the ordinary shares issued (261,600,381,459 shares). As at 30 June 2026, according to the A-share register of shareholders of the Bank, the MOF directly held 11,589,403,973 A-shares of the Bank. 3. On 1 August 2025, Huijin declared its interests to the Hong Kong Stock Exchange. It disclosed that it held interests of 150,455,494,651 H-shares of the Bank, accounting for 62.58% of the H-shares issued (240,417,319,880 shares) and 57.52% of the ordinary shares issued (261,600,381,459 shares), in which 142,590,494,651 H-shares were directly held by Huijin, and 7,865,000,000 H-shares were held by China Great Wall AMC, a controlled corporation of Huijin. As at 30 June 2026, according to the H-share register of shareholders of the Bank, Huijin directly held 142,590,494,651 H -shares of the Bank, and China Great Wall AMC beneficially held 7,865,000,000 H-shares of the Bank. 6.5 DIRECTORS’ INTERESTS AND SHORT POSITIONS During the reporting period, there was no change in the shareholdings of directors of the Bank. As at 30 June 2026, Mr. Zhang Yi indirectly held 9,848 H -shares of the Bank by participating in the employee stock incentive plan of the Bank before he assumed his current positions. Save as disclosed above, none of the directors of the Bank had any interests or short positions in the
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88 shares, underlying shares and debentures of the Bank or any of its associated corporations (within the meaning of Part XV of the SFO) which had to be notified to the Bank and Hong Kong Stock Exchange under Divisions 7 and 8 of Part XV of the SFO (including interests or short positions therein that they should be deemed to have pursuant to such provisions of the SFO), to be recorded in the register kept under Section 352 of the SFO, or to be notified to the Bank and Hong Kong Stock Exchange pursuant to the Model Code for Securities Transactions by Directors of Listed Issuers as set out in Appendix C3 to the Listing Rules of Hong Kong Stock Exchange. 6.6 DETAILS OF PREFERENCE SHARES At the end of the reporting period, the Bank had 26 preference shareholders, all of whom were domestic preference shareholders, and there was no restoration of voting rights. The particulars of shareholding of the top ten preference shareholders of the Bank were as follows. Unit: share Name of preference shareholder Nature of shareholder Shareholding percentage (%) Changes during the reporting period Total number of shares held China Fund Management Co., Ltd. Others 14.08 - 84,494,878 Jiangsu International Trust Corporation Limited Others 9.86 5,037,000 59,137,000 Everbright Securities Asset Management Co., Ltd. Others 9.68 - 58,100,000 Hwabao Trust Co., Ltd. Others 9.62 -13,910,000 57,720,000 China Mobile Communications Group Co., Ltd. State-owned legal person 8.33 - 50,000,000 China Life Insurance Company Limited Others 8.33 - 50,000,000 Ping An Life Insurance Company of China, Ltd. Others 8.28 - 49,660,000 Chongqing International Trust Inc. Others 4.53 8,873,000 27,203,000 Postal Savings Bank of China Co., Ltd. Others 4.17 - 25,000,000 China Credit Trust Company Limited Others 3.97 - 23,800,000 1. None of the aforesaid preference shares were pledged, marked or frozen. 2. The Bank is not aware of any connected relation or concerted action among the aforesaid preference shareholders, or between the aforesaid preference shareholders and the top ten ordinary shareholders. In accordance with Accounting Standard s for Business Enterprises No. 22 : Recognition and Measurement of Financial Instruments , Accounting Standards for Business Enterprises No. 37 : Presentation of Financial Instruments and Rules on Distinguishing Financial Liabilities and Equity Instruments and Relevant Accounting Treatments promulgated by the MOF, as well as IFRS 9 Financial Instruments and International Accounting Standard 32 Financial Instruments: Presentation formulated by the International Accounting Standards Board, the existing preference shares issued by the Bank meet the requirements of equity instruments in their terms and conditions, and are treated as equity instruments. The Bank had not issued preference shares in the past three years. During the reporting period, the Bank had no redemption or conversion of preference shares.
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89 APPENDIX: INDEPENDENT AUDITOR ’S REPORT AND FINANCIAL STATEMENTS REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION FINANCIAL STATEMENTS Consolidated statement of comprehensive income Consolidated statement of financial position Consolidated statement of changes in equity Consolidated statement of cash flows NOTES TO THE FINANCIAL STATEMENTS 1 Company information 2 Basis of preparation and significant accounting policies 3 Net interest income 4 Net fee and commission income 5 Net trading gain 6 Dividend income 7 Net gain arising from investment securities 8 Net gain on derecognition of financial assets measured at amortised cost 9 Other operating income, net 10 Operating expenses 11 Credit impairment losses 12 Other impairment losses 13 Income tax expense 14 Earnings per share 15 Cash and deposits with central banks 16 Deposits with banks and non-bank financial institutions 17 Placements with banks and non-bank financial institutions 18 Derivatives and hedge accounting 19 Financial assets held under resale agreements 20 Loans and advances to customers 21 Financial investments 22 Long-term equity investments 23 Structured entities 24 Fixed assets 25 Construction in progress 26 Land use rights 27 Intangible assets 28 Goodwill 29 Deferred tax 30 Other assets 31 Movements of allowances for impairment losses 32 Borrowings from central banks 33 Deposits from banks and non-bank financial institutions 34 Placements from banks and non-bank financial institutions 35 Financial liabilities measured at fair value through profit or loss 36 Financial assets sold under repurchase agreements 37 Deposits from customers
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90 38 Accrued staff costs 39 Taxes payable 40 Provisions 41 Debt securities issued 42 Other liabilities 43 Share capital 44 Other equity instruments 45 Capital reserve 46 Other comprehensive income 47 Surplus reserve 48 General reserve 49 Profit distribution 50 Notes to the statement of cash flows 51 Transfer of financial assets 52 Operating segments 53 Entrusted lending business 54 Pledged assets 55 Commitments and contingent liabilities 56 Related party relationships and transactions 57 Risk management 58 Statement of financial position and statement of changes in equity of the Bank 59 Events after the reporting period 60 Comparative figures 61 Ultimate parent 62 Possible impact of amendments, new standards and interpretations issued but not yet effective UNAUDITED SUPPLEMENTARY FINANCIAL INFORMATION 1 Difference between the financial statements prepared under IFRS Accounting Standards and those prepared in accordance with PRC GAAP 2 Currency concentrations 3 International claims 4 Overdue loans and advances to customers by geographical sector 5 Exposures to non-banks in the Chinese mainland
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Report on Review of Interim Financial Information To the Board of Directors of China Construction Bank Corporation (Established in the People’s Republic of China with limited liability) Introduction We have reviewed the accompanying interim condensed financial information set out on pages 1 to 19 7, which comprises the consolidated statement of financial position of China Construction Bank Corporation (the “Bank”) and its subsidiaries (the “Group”) as at 30 June 2026 and the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the six-month period then ended, and condensed 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 Accounting Standard 34 Interim Financial Reporting (“IAS 34”) as issued by the International Accounting Standards Board. The directors of the Bank are responsible for the preparation and presentation of interim condensed financial information in accordance with IAS 34. Our responsibility is to express a conclusion on this interim condensed financial information based on our review. Our 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 Hong Kong Standard on Review Engagements 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity as issued by the Hong Kong Institute of Certified Public Accountants. A review of interim financial information consists of making inquiries, primarily of 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 Hong Kong 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 accompanying interim condensed 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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China Construction Bank Corporation Consolidated statement of comprehensive income For the six months ended 30 June 2026 (Expressed in millions of RMB, unless otherwise stated) 1 Six months ended 30 June 2026 2025 Note (Unaudited ) (Unaudited ) Interest income 576,924 579,257 Interest expense (265,966 ) (292,548 ) Net interest income 3 310,958 286,709 Fee and commission income 70,604 71,450 Fee and commission expense (6,315 ) (6,232 ) Net fee and commission income 4 64,289 65,218 Net trading gain 5 3,608 1,854 Dividend income 6 2,006 2,648 Net gain arising from investment securities 7 20,167 11,691 Net gain on derecognition of financial assets measured at amortised cost 8 18,321 9,400 Other operating income, net: - Other operating income 17,312 17,707 - Other operating expense (10,328 ) (9,322 ) Other operating income, net 9 6,984 8,385 Operating income 426,333 385,905 Operating expenses 10 (98,960 ) (95,503 ) 327,373 290,402 Credit impairment losses 11 (130,028 ) (107,652 ) Other impairment losses 12 (2 ) (10 ) Share of profits/(losses) of associates and joint ventures 637 (299 ) Profit before tax 197,980 182,441 Income tax expense 13 (26,303 ) (19,803 ) Net profit 171,677 162,638 The notes on pages 14 to 197 form part of these financial statements.
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China Construction Bank Corporation Consolidated statement of comprehensive income (continued) For the six months ended 30 June 2026 (Expressed in millions of RMB, unless otherwise stated) 2 Six months ended 30 June 2026 2025 (Unaudited ) (Unaudited ) Other comprehensive income: (1) Other comprehensive income that will not be reclassified to profit or loss Remeasurements of post-employment benefit obligations 144 79 Fair value changes of equity instruments designated as measured at fair value through other comprehensive income (3,438 ) 671 Other comprehensive income under the equity method that cannot be reclassified to profit or loss (95 ) - Others 4 2 Subtotal (3,385 ) 752 (2) Other comprehensive income that may be reclassified subsequently to profit or loss Fair value changes of debt instruments measured at fair value through other comprehensive income 15,024 (6,626 ) Allowances for credit losses of debt instruments measured at fair value through other comprehensive income 235 951 Reclassification adjustments included in profit or loss due to disposals (1,484 ) (7,802 ) Net loss on cash flow hedges (280 ) (264 ) Exchange difference on translating foreign operations (8,318 ) 73 Others (1,707 ) (1,844 ) Subtotal 3,470 (15,512 ) Other comprehensive income for the period, net of tax 85 (14,760 ) The notes on pages 14 to 197 form part of these financial statements.
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China Construction Bank Corporation Consolidated statement of comprehensive income (continued) For the six months ended 30 June 2026 (Expressed in millions of RMB, unless otherwise stated) 3 Six months ended 30 June 2026 2025 Note (Unaudited ) (Unaudited ) Total comprehensive income for the period 171,762 147,878 Net profit attributable to: Equity shareholders of the Bank 169,564 162,076 Non-controlling interests 2,113 562 171,677 162,638 Total comprehensive income attributable to: Equity shareholders of the Bank 170,648 147,537 Non-controlling interests 1,114 341 171,762 147,878 Basic and diluted earnings per share (in RMB yuan) 14 0.65 0.65 The notes on pages 14 to 197 form part of these financial statements.
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China Construction Bank Corporation Consolidated statement of financial position As at 30 June 2026 (Expressed in millions of RMB, unless otherwise stated) 4 30 June 2026 31 December 2025 Note (Unaudited ) (Audited ) Assets: Cash and deposits with central banks 15 2,624,659 3,054,199 Deposits with banks and non-bank financial institutions 16 203,006 190,622 Precious metals 198,854 190,225 Placements with banks and non-bank financial institutions 17 813,820 819,823 Positive fair value of derivatives 18 74,843 49,300 Financial assets held under resale agreements 19 247,776 856,818 Loans and advances to customers 20 28,440,110 26,926,790 Financial investments 21 Financial assets measured at fair value through profit or loss 920,388 874,994 Financial assets measured at amortised cost 8,593,174 7,739,652 Financial assets measured at fair value through other comprehensive income 4,477,360 4,282,706 Long-term equity investments 22 25,739 27,781 Fixed assets 24 168,727 165,235 Construction in progress 25 2,965 6,002 Land use rights 26 11,228 11,548 Intangible assets 27 4,808 5,611 Goodwill 28 2,321 2,416 Deferred tax assets 29 145,190 139,747 Other assets 30 373,276 288,349 Total assets 47,328,244 45,631,818 The notes on pages 14 to 197 form part of these financial statements.
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China Construction Bank Corporation Consolidated statement of financial position (continued) As at 30 June 2026 (Expressed in millions of RMB, unless otherwise stated) 5 30 June 2026 31 December 2025 Note (Unaudited ) (Audited ) Liabilities: Borrowings from central banks 32 1,477,901 1,096,307 Deposits from banks and non-bank financial institutions 33 4,291,973 4,287,217 Placements from banks and non-bank financial institutions 34 482,204 499,957 Financial liabilities measured at fair value through profit or loss 35 343,945 324,230 Negative fair value of derivatives 18 45,388 89,804 Financial assets sold under repurchase agreements 36 1,450,984 1,490,932 Deposits from customers 37 31,818,419 30,835,574 Accrued staff costs 38 65,773 70,004 Taxes payable 39 28,634 30,896 Provisions 40 24,563 25,806 Debt securities issued 41 2,835,183 2,593,524 Deferred tax liabilities 29 3,278 2,576 Other liabilities 42 626,173 598,914 Total liabilities 43,494,418 41,945,741 The notes on pages 14 to 197 form part of these financial statements.
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China Construction Bank Corporation Consolidated statement of financial position (continued) As at 30 June 2026 (Expressed in millions of RMB, unless otherwise stated) 6 30 June 2026 31 December 2025 Note (Unaudited ) (Audited ) Equity: Share capital 43 261,600 261,600 Other equity instruments 44 Preference shares 59,977 59,977 Perpetual bonds 170,000 140,000 Capital reserve 45 229,317 229,113 Other comprehensive income 46 21,691 20,566 Surplus reserve 47 434,687 434,687 General reserve 48 587,285 587,051 Retained earnings 49 2,045,625 1,930,417 Total equity attributable to equity shareholders of the Bank 3,810,182 3,663,411 Non-controlling interests 23,644 22,666 Total equity 3,833,826 3,686,077 Total liabilities and equity 47,328,244 45,631,818 Approved and authorised for issue by the Board of Directors on 28 August 2026. Zhang Jinliang Zhang Yi Yin Pengfei Chairman and executive director Vice chairman, executive Person in charge of finance& director and president accounting department The notes on pages 14 to 197 form part of these financial statements.
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China Construction Bank Corporation Consolidated statement of changes in equity For the six months ended 30 June 2026 (Expressed in millions of RMB, unless otherwise stated) 7 (Unaudited) Attributable to equity shareholders of the Bank Share capital Other equity instruments Capital reserve Other comprehensive income Surplus reserve General reserve Retained earnings Non- controlling interests Total equity Preference shares Perpetual bonds As at 1 January 2026 261,600 59,977 140,000 229,113 20,566 434,687 587,051 1,930,417 22,666 3,686,077 Movements during the period - - 30,000 204 1,125 - 234 115,208 978 147,749 (1) Total comprehensive income for the period - - - - 1,084 - - 169,564 1,114 171,762 (2) Changes in share capital i Capital injection by shareholders - - - - - - - - 9 9 ii Capital injection by other equity instruments holders - - 30,000 (2 ) - - - - - 29,998 iii Decrease in subsidiaries - - - - - - - - (4 ) (4 ) (3) Profit distribution i Appropriation to general reserve - - - - - - 234 (234 ) - - ii Dividends to ordinary shareholders - - - - - - - (53,079 ) - (53,079 ) iii Dividends to other equity instruments holders - - - - - - - (796 ) - (796 ) iv Dividends to non-controlling interests holders - - - - - - - - (141 ) (141 ) (4) Internal transfer within owner’s equity i Other comprehensive income transferred to retained earnings - - - - 41 - - (41 ) - - ii Others - - - 206 - - - (206 ) - - As at 30 June 2026 261,600 59,977 170,000 229,317 21,691 434,687 587,285 2,045,625 23,644 3,833,826 The notes on pages 14 to 197 form part of these financial statements.
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China Construction Bank Corporation Consolidated statement of changes in equity (continued) For the six months ended 30 June 2025 (Expressed in millions of RMB, unless otherwise stated) 8 (Unaudited) Attributable to equity shareholders of the Bank Share capital Other equity instruments Capital reserve Other comprehensive income Surplus reserve General reserve Retained earnings Non- controlling interests Total equity Preference shares Perpetual bonds As at 1 January 2025 250,011 59,977 100,000 135,736 57,901 402,196 534,591 1,781,715 21,838 3,343,965 Movements during the period 11,589 - 40,000 93,377 (14,592 ) - 841 109,956 (277 ) 240,894 (1) Total comprehensive income for the period - - - - (14,539 ) - - 162,076 341 147,878 (2) Changes in share capital i Capital injection by shareholders 11,589 - - 93,380 - - - - 14 104,983 ii Capital injection by other equity instruments holders - - 40,000 (3 ) - - - - - 39,997 iii Increase in subsidiaries - - - - - - - - 11 11 iv Decrease in subsidiaries - - - - - - - - (498 ) (498 ) (3) Profit distribution i Appropriation to general reserve - - - - - - 671 (671 ) - - ii Dividends to ordinary shareholders - - - - - - - (51,502 ) - (51,502 ) iii Dividends to non-controlling interests holders - - - - - - - - (145 ) (145 ) (4) Internal transfer within owner’s equity i Other comprehensive income transferred to retained earnings - - - - (53 ) - - 53 - - (5) Others - - - - - - 170 - - 170 As at 30 June 2025 261,600 59,977 140,000 229,113 43,309 402,196 535,432 1,891,671 21,561 3,584,859 The notes on pages 14 to 197 form part of these financial statements.
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China Construction Bank Corporation Consolidated statement of changes in equity (continued) For the year ended 31 December 2025 (Expressed in millions of RMB, unless otherwise stated) 9 (Audited) Attributable to equity shareholders of the Bank Share capital Other equity instruments Capital reserve Other comprehensive income Surplus reserve General reserve Retained earnings Non- controlling interests Total equity Preference shares Perpetual bonds As at 1 January 2025 250,011 59,977 100,000 135,736 57,901 402,196 534,591 1,781,715 21,838 3,343,965 Movements during the year 11,589 - 40,000 93,377 (37,335 ) 32,491 52,460 148,702 828 342,112 (1) Total comprehensive income for the year - - - - (37,231 ) - - 338,906 1,334 303,009 (2) Changes in share capital i Capital injection by shareholders 11,589 - - 93,380 - - - - 59 105,028 ii Capital injection by other equity instruments holders - - 40,000 (3 ) - - - - - 39,997 iii Increase in subsidiaries - - - - - - - - 141 141 iv Decrease in subsidiaries - - - - - - - - (485 ) (485 ) (3) Profit distribution i Appropriation to surplus reserve - - - - - 32,491 - (32,491 ) - - ii Appropriation to general reserve - - - - - - 52,290 (52,290 ) - - iii Dividends to ordinary shareholders - - - - - - - (100,107 ) - (100,107 ) iv Dividends to other equity instruments holders - - - - - - - (5,420 ) - (5,420 ) v Dividends to non-controlling interests holders - - - - - - - - (221 ) (221 ) (4) Internal transfer within owner’s equity i Other comprehensive income transferred to retained earnings - - - - (104 ) - - 104 - - (5) Others - - - - - - 170 - - 170 As at 31 December 2025 261,600 59,977 140,000 229,113 20,566 434,687 587,051 1,930,417 22,666 3,686,077 The notes on pages 14 to 197 form part of these financial statements.
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China Construction Bank Corporation Consolidated statement of cash flows For the six months ended 30 June 2026 (Expressed in millions of RMB, unless otherwise stated) 10 Six months ended 30 June 2026 2025 Note (Unaudited ) (Unaudited ) Cash flows from operating activities: Profit before tax 197,980 182,441 Adjustments for: -Credit impairment losses 11 130,028 107,652 -Other impairment losses 12 2 10 -Depreciation and amortisation 13,729 14,768 -Interest income from impaired financial assets (1,739 ) (1,213 ) -Revaluation (gain)/loss on financial instruments measured at fair value through profit or loss (12,897 ) 2,618 -Share of (profits)/losses of associates and joint ventures (637 ) 299 -Dividend income 6 (2,006 ) (2,648 ) -Unrealised foreign exchange (gain)/loss (6,087 ) 14,690 -Interest expense on bonds issued 14,204 15,438 -Interest income from investment securities and net income from disposal (180,664 ) (161,806 ) -Net gain on disposal of fixed assets and other long-term assets (485 ) (137 ) 151,428 172,112 The notes on pages 14 to 197 form part of these financial statements.
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China Construction Bank Corporation Consolidated statement of cash flows (continued) For the six months ended 30 June 2026 (Expressed in millions of RMB, unless otherwise stated) 11 Six months ended 30 June 2026 2025 (Unaudited ) (Unaudited ) Cash flows from operating activities: (continued) Changes in operating assets: Net (increase)/decrease in deposits with central banks and with banks and non-bank financial institutions (56,557 ) 80,914 Net decrease/(increase) in placements with banks and non-bank financial institutions 19,553 (104,086 ) Net decrease/(increase) in financial assets held under resale agreements 608,415 (649,391 ) Net increase in loans and advances to customers (1,661,313 ) (1,666,880 ) Net increase in financial assets held for trading purposes (1,385 ) (117,817 ) Net increase in other operating assets (111,771 ) (105,580 ) (1,203,058 ) (2,562,840 ) Changes in operating liabilities: Net increase in borrowings from central banks 380,620 254,779 Net increase in deposits from customers and from banks and non-bank financial institutions 1,111,025 2,745,970 Net (decrease)/increase in placements from banks and non-bank financial institutions (9,430 ) 47,186 Net increase/(decrease) in financial liabilities measured at fair value through profit or loss 20,148 (21,630 ) Net (decrease)/increase in financial assets sold under repurchase agreements (39,470 ) 297,476 Net increase in certificates of deposit issued 139,370 477,729 Income tax paid (30,836 ) (42,375 ) Net decrease in other operating liabilities (169,114 ) (111,793 ) 1,402,313 3,647,342 Net cash from operating activities 350,683 1,256,614 The notes on pages 14 to 197 form part of these financial statements.
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China Construction Bank Corporation Consolidated statement of cash flows (continued) For the six months ended 30 June 2026 (Expressed in millions of RMB, unless otherwise stated) 12 Six months ended 30 June 2026 2025 (Unaudited ) (Unaudited ) Cash flows from investing activities: Proceeds from sales and redemption of financial investments 2,336,620 1,758,997 Interest and dividends received 169,911 150,323 Proceeds from disposal of subsidiaries, associates and joint ventures 1,001 293 Proceeds from disposal of fixed assets and other long-term assets 2,366 794 Purchase of investment securities (3,378,326 ) (2,733,734 ) Acquisition of subsidiaries, associates and joint ventures (257 ) (2,611 ) Purchase of fixed assets and other long-term assets (8,752 ) (5,251 ) Net cash used in investing activities (877,437 ) (831,189 ) Cash flows from financing activities: Issue of shares - 104,969 Issue of bonds 133,177 90,590 Proceeds from issuance of other equity instruments 29,998 39,997 Cash received from subsidiaries’ capital injection by non-controlling interests holders 9 25 Dividends paid (47,732 ) (100,820 ) Repayment of borrowings (24,239 ) (38,887 ) Interest paid on bonds issued (9,704 ) (9,747 ) Cash payment for other financing activities (3,372 ) (3,661 ) Net cash from financing activities 78,137 82,466 The notes on pages 14 to 197 form part of these financial statements.
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China Construction Bank Corporation Consolidated statement of cash flows (continued) For the six months ended 30 June 2026 (Expressed in millions of RMB, unless otherwise stated) 13 Six months ended 30 June 2026 2025 Note (Unaudited ) (Unaudited ) Effect of exchange rate changes on cash and cash equivalents (5,753 ) (4,396 ) Net (decrease)/increase in cash and cash equivalents (454,370 ) 503,495 Cash and cash equivalents as at 1 January 50 1,061,844 569,448 Cash and cash equivalents as at 30 June 50 607,474 1,072,943 Cash flows from operating activities include: Interest received, excluding interest income from investment securities 411,161 427,707 Interest paid, excluding interest expense on bonds issued (339,187 ) (292,176 ) The notes on pages 14 to 197 form part of these financial statements.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 14 1 Company information The history of China Construction Bank Corporation (the “Bank”) dates back to 1954, which was previously known as the People ’s Construction Bank of China when it was established. It was responsible for the management and distribution of government funds for construction and infrastructure related projects under the state economic plan. The People's Construction Bank of China gradually evolved into a comprehensive commercial bank following the takeover of the Bank’s function of granting policy loans by China Development Bank in 1994. In 1996, the People's Construction Bank of China changed its name to China Construction Bank. On 17 September 2004, China Construction Bank Corporation was established in the People’s Republic of China (the “PRC”) as a result of a separation procedure undertaken by its predecessor, China Construction Bank (the “former CCB”). In October 2005 and September 2007, the Bank’s H shares and A shares were listed on The Stock Exchange of Hong Kong Limited (Stock Code: 00939) and the Shanghai Stock Exchange (Stock Code: 601939), successively. As at 30 June 2026 , the Bank issued the total ordinary share capital of RMB261,600 million, with a par value of RMB1.00 per share. The Bank obtained its finance permit No.B0004H111000001 from the China Banking and Insurance Regulatory Commission (“CBIRC”) (In 2023, the regulator was renamed the National Financial Regulatory Administration, hereinafter referred to as the “NFRA”) of the PRC. The Bank obtained its unified social credit code No.911100001000044477 from the Beijing Municipal Administration for Market Regulation. The registered office of the Bank is located at No.25, Finance Street, Xicheng District, Beijing. The principal activities of the Bank and its subsidiaries (collectively the “Group”) are the provision of corporate finance business, personal finance business, treasury and asset management business and others. The Group mainly operates in the Chinese mainland and also has a number of overseas branches and subsidiaries. For the purpose of these financial statements, the Chinese mainland refers to the PRC excluding the Hong Kong Special Administrative Region of the PRC (“Hong Kong”), the Macau Special Administrative Region of the PRC (“Macau”) and Taiwan. Overseas refers to countries and regions other than the Chinese mainland. The Bank is mainly regulated by the NFRA, an institution directly under the State Council of the PRC (the “State Council”). The overseas financial institutions of the Bank are required to comply with the regulatory requirements of their respective local jurisdictions. Central Huijin Investment Ltd. (“Huijin”), a wholly-owned subsidiary of China Investment Corporation (“CIC”), exercises the contributor's rights and obligations in key state-owned financial institutions up to its contribution amount on behalf of the State.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 15 2 Basis of preparation and significant accounting policies (1) Basis of preparation The interim financial statements have been prepared in accordance with International Accounting Standard (“IAS”) 34 Interim Financial Reporting and all applicable disclosure provisions of the Rules Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited. The unaudited interim financial statements contain selected explanatory notes, which provide explanations of events and transactions that are significant to the understanding of the changes in financial position and performance of the Group since the finan cial statements for the year ended 31 December 2025. The selected notes do not include all of the information and disclosures 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 annual financial statements for the year ended 31 December 2025. (2) Use of estimates and assumptions The preparation of the interim financial statements 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 in the future may differ from those reported as a result of the use of estimates and assumptions about future conditions.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 16 2 Basis of preparation and significant accounting policies (continued) (3) Consolidation The interim financial statements comprise the Bank and its subsidiaries. The financial results and performance of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases. Necessary adjustments on the accounting period and accounting policies of subsidiaries are made to comply with those of the Bank. Intragroup balances and transactions, and any profits or losses arising from intragroup transactions are eliminated in full in preparing the consolidated financial statements. (4) Changes in significant accounting policies The Group has adopted the following amendments for the current interim period. (1) Amendments to IFRS 9 and IFRS 7 Amendments to the Classification and Measurement of Financial Instruments (2) Annual Improvements to IFRS Accounting Standards – Volume 11 Amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7 The adoption of the above amendments does not have a significant impact on the Group’s consolidated financial statements. Except for the matters described above, significant accounting policies adopted by the Group for its interim financial statements are consistent with those applied in the preparation of the Group’s annual financial statements for the year ended 31 December 2025.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 17 2 Basis of preparation and significant accounting policies (continued) (5) Taxation The Group’s main applicable taxes and tax rates are as follows: Value added tax (“VAT”) The Value -Added Tax Law of the People’s Republic of China and the Regulation on Implementation of the Value-Added Tax Law of the People’s Republic of China became effective from 1 January 2026. The predominant VAT rate applicable to the Bank and its subsidiaries in the Chinese mainland is 6%. City construction tax City construction tax is calculated as 1% to 7% of VAT. Education surcharge Education surcharge is calculated as 3% of VAT. Local education surcharge Local education surcharge is calculated as 2% of VAT. Income tax The predominant income tax rate applicable to the Bank and its subsidiaries in the Chinese mainland is 25%. Taxation on overseas operations is primarily charged at the relevant local rates. (6) Interim financial statements The interim financial statements have been reviewed by the Audit Committee of the Bank, and were approved by the Board of Directors of the Bank on 28 August 2026. The interim financial statements have also been reviewed by the Bank’s auditors, Ernst & Young, in accordance with Hong Kong Standard on Review Engagements 2410 “Review of Interim Financial Information Performed by the Independent Auditor of the Entity” issued by the Hong Kong Institute of Certified Public Accountants. The financial information relating to the financial year ended 31 December 2025 that is included in the interim financial statements is derived from those financial statements. The auditors have expressed an unqualified opinion on those financial statements in their report dated 27 March 2026.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 18 3 Net interest income Six months ended 30 June 2026 2025 Interest income arising from: Deposits with central banks 20,585 21,257 Deposits with banks and non-bank financial institutions 1,714 1,578 Placements with banks and non-bank financial institutions 7,993 8,074 Financial assets held under resale agreements 5,715 6,026 Financial investments 160,513 150,146 Loans and advances to customers -Corporate loans and advances 232,379 236,256 -Personal loans and advances 139,206 148,367 -Discounted bills 8,819 7,553 Total 576,924 579,257 Interest expense arising from: Borrowings from central banks (12,206 ) (10,222 ) Deposits from banks and non-bank financial institutions (36,485 ) (28,649 ) Placements from banks and non-bank financial institutions (8,003 ) (9,413 ) Financial assets sold under repurchase agreements (11,318 ) (8,961 ) Debt securities issued (27,880 ) (34,180 ) Deposits from customers -Corporate deposits (64,027 ) (79,622 ) -Personal deposits (106,047 ) (121,501 ) Total (265,966 ) (292,548 ) Net interest income 310,958 286,709
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 19 3 Net interest income (continued) (1) Interest income from impaired financial assets is listed as follows: Six months ended 30 June 2026 2025 Impaired loans and advances 1,723 1,182 Other impaired financial assets 16 31 Total 1,739 1,213 (2) Interest expense on financial liabilities with maturity over five years mainly represented the interest expense on debt securities issued. 4 Net fee and commission income Six months ended 30 June 2026 2025 Fee and commission income Settlement and clearing fees 20,263 19,870 Commission on trust and fiduciary activities 12,107 11,722 Agency service fees 11,209 9,441 Bank card fees 10,251 10,184 Consultancy and advisory fees 6,492 7,285 Income from asset management business 3,388 6,076 Others 6,894 6,872 Total 70,604 71,450 Fee and commission expense Bank card transaction fees (3,244 ) (3,105 ) Inter-bank transaction fees (462 ) (460 ) Others (2,609 ) (2,667 ) Total (6,315 ) (6,232 ) Net fee and commission income 64,289 65,218
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 20 5 Net trading gain Six months ended 30 June 2026 2025 Debt securities 3,310 1,583 Derivatives 704 305 Equity investments (311 ) (81 ) Others (95 ) 47 Total 3,608 1,854 6 Dividend income Six months ended 30 June 2026 2025 Dividend income from equity investments measured at fair value through profit or loss 1,456 2,181 Dividend income from equity investments measured at fair value through other comprehensive income 550 467 Total 2,006 2,648
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 21 7 Net gain arising from investment securities Six months ended 30 June 2026 2025 Net loss related to financial liabilities designated as measured at fair value through profit or loss (2,488 ) (1,920 ) Net gain related to other financial assets and liabilities measured at fair value through profit or loss 18,742 2,694 Net gain related to financial assets measured at fair value through other comprehensive income 2,150 10,020 Others 1,763 897 Total 20,167 11,691 8 Net gain on derecognition of financial assets measured at amortised cost For the six months ended 30 June 2026 , net gain on derecognition of financial assets measured at amortised cost consisted mainly of gain from Group’s disposal of bond investments (For the six months ended 30 June 2025, net gain on derecognition of financial assets measured at amortised cost consisted mainly of gain from Group’s disposal of bond investments).
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 22 9 Other operating income, net Six months ended 30 June 2026 2025 Other operating income Foreign exchange gains 7,734 8,342 Rental income 4,265 4,173 Insurance related income 2,774 2,784 Others 2,539 2,408 Total 17,312 17,707 Six months ended 30 June 2026 2025 Other operating expense Insurance related costs 6,083 4,878 Others 4,245 4,444 Total 10,328 9,322 Foreign exchange gains or losses include gains and losses in connection with the translation of foreign currency denominated monetary assets and liabilities, and net realised and unrealised gains and losses on foreign exchange derivatives (including those foreign exchange swaps, foreign exchange options and cross currency swaps entered into in order to economically hedge positions in foreign currency assets).
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 23 10 Operating expenses Six months ended 30 June 2026 2025 Staff costs - Salaries, bonuses, allowances and subsidies 37,858 37,121 - Defined contribution plans 8,655 8,458 - Housing funds 4,130 4,116 - Union running costs and employee education costs 1,104 1,147 - Compensation to employees for termination of employment relationship 8 9 - Others 8,622 6,937 60,377 57,788 Premises and equipment expenses - Depreciation charges 9,426 10,398 - Rent and property management expenses 1,568 1,628 - Utilities 814 845 - Maintenance 695 682 - Others 1,033 945 13,536 14,498 Taxes and surcharges 4,443 3,984 Amortisation expenses 1,554 1,618 Other general and administrative expenses 19,050 17,615 Total 98,960 95,503 For the six months ended 30 June 2026, the Group's operating expenses related to actual research and development activities amounted to RMB2,540 million (for the six months ended 30 June 2025: RMB2,006 million).
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 24 11 Credit impairment losses Six months ended 30 June 2026 2025 Loans and advances to customers 125,344 115,061 Financial investments -Financial assets measured at amortised cost 2,994 (2,077 ) -Financial assets measured at fair value through other comprehensive income 989 783 Off-balance sheet credit business (1,245 ) (1,669 ) Others 1,946 (4,446 ) Total 130,028 107,652 12 Other impairment losses Six months ended 30 June 2026 2025 Other impairment losses 2 10
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 25 13 Income tax expense (1) Income tax expense Six months ended 30 June 2026 2025 Current tax 33,984 35,095 - The Chinese mainland 32,333 33,172 - Hong Kong 985 893 - Other countries and regions 666 1,030 Deferred tax (7,681 ) (15,292 ) Total 26,303 19,803 The provisions for income taxes for the Chinese mainland and Hong Kong are calculated at 25% and 16.5% of the estimated taxable income from the Chinese mainland and Hong Kong operations, respectively. Taxation for other overseas operations is charged at th e appropriate current rates of taxation ruling in the relevant tax jurisdictions.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 26 13 Income tax expense (continued) (2) Reconciliation between income tax expense and accounting profit Six months ended 30 June Note 2026 2025 Profit before tax 197,980 182,441 Income tax calculated at the 25% statutory tax rate 49,495 45,610 Effects of different applicable rates of tax prevailing in other countries/regions (1,203 ) (673 ) Non-deductible expenses and others (a) 11,958 6,281 Non-taxable income (b) (33,947 ) (31,415 ) Income tax expense 26,303 19,803 (a) Non-deductible expenses primarily include non-deductible losses resulting from write-offs and impairment losses. (b) Non-taxable income primarily includes interest income from PRC government bonds and local government bonds. Before 30 June 2026, Pillar Two legislations were enacted in certain jurisdictions where the Group has operations and became effective successively from 1 January 2024. The aggregate top-up tax amount associated with Pillar Two model rules was not material to the Group’s financial statements for the six months ended 30 June 2026.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 27 14 Earnings per share Basic earnings per share for the six months ended 30 June 2026 and 2025 have been computed by dividing the net profit attributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during those periods. For the purpose of calculating basic earnings per share, dividends on other equity instruments declared in respect of the period should be deducted from the net profit attributable to equity shareholders of the Bank. The conversion feature of preference shares is considered to be contingently issuable ordinary shares. The triggering events of conversion did not occur for the six months ended 30 June 2026 and 2025, therefore the conversion feature of preference shares had no effect on the basic and diluted earnings per share calculations. Six months ended 30 June 2026 2025 Net profit attributable to equity shareholders of the Bank 169,564 162,076 Less: Net profit for the period attributable to other equity instruments holders of the Bank (796 ) - Net profit attributable to ordinary shareholders of the Bank 168,768 162,076 Weighted average number of ordinary shares (in millions of shares) 261,600 250,523 Basic earnings per share attributable to ordinary shareholders of the Bank (in RMB yuan) 0.65 0.65 Diluted earnings per share attributable to ordinary shareholders of the Bank (in RMB yuan) 0.65 0.65
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 28 15 Cash and deposits with central banks Note 30 June 2026 31 December 2025 Cash 46,589 48,588 Deposits with central banks - Statutory deposit reserves (1) 2,292,205 2,218,453 - Surplus deposit reserves (2) 226,448 734,336 - Fiscal deposits and others 58,333 51,639 Accrued interest 1,084 1,183 Total 2,624,659 3,054,199 As at the end of the reporting period, the Bank’s statutory deposit reserve s rates in the Chinese mainland were as follows: 30 June 2026 31 December 2025 Reserve rate for RMB deposits 7.50% 7.50% Reserve rate for foreign currency deposits 4.00% 4.00% The amounts of statutory deposit reserves placed with the central banks of overseas countries and regions are determined by local jurisdictions. (2) The surplus deposit reserve s maintained with the PBOC is mainly for the purpose of clearing. (1) The Group places statutory deposit reserves with the People’s Bank of China (“PBOC”) and overseas central banks where it has operations. The statutory deposit reserves are not available for use in the Group’s daily business. The statutory RMB deposit reserve rates applicable to domestic subsidiaries of the Group are determined by the PBOC.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 29 16 Deposits with banks and non-bank financial institutions (1) Analysed by type of counterparties 30 June 2026 31 December 2025 Banks 172,515 155,662 Non-bank financial institutions 30,092 34,253 Accrued interest 464 762 Gross balances 203,071 190,677 Allowances for impairment losses (Note 31) (65 ) (55 ) Net balances 203,006 190,622 (2) Analysed by geographical sectors 30 June 2026 31 December 2025 The Chinese mainland 163,734 158,772 Overseas 38,873 31,143 Accrued interest 464 762 Gross balances 203,071 190,677 Allowances for impairment losses (Note 31) (65 ) (55 ) Net balances 203,006 190,622 As at 30 June 2026 and 31 December 2025 , all of the Group’s deposits with banks and non-bank financial institutions were designated as Stage 1. For the six months ended 30 June 2026 and for the year ended 31 December 2025 , neither the book values nor the impairment allowances had any migrations between stages.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 30 17 Placements with banks and non-bank financial institutions (1) Analysed by type of counterparties 30 June 2026 31 December 2025 Banks 455,283 372,074 Non-bank financial institutions 354,904 443,777 Accrued interest 3,981 4,232 Gross balances 814,168 820,083 Allowances for impairment losses (Note 31) (348 ) (260 ) Net balances 813,820 819,823 (2) Analysed by geographical sectors 30 June 2026 31 December 2025 The Chinese mainland 577,401 670,850 Overseas 232,786 145,001 Accrued interest 3,981 4,232 Gross balances 814,168 820,083 Allowances for impairment losses (Note 31) (348 ) (260 ) Net balances 813,820 819,823 As at 30 June 2026 and 31 December 2025, all of the Group’s placements with banks and non-bank financial institutions were designated as Stage 1. For the six months ended 30 June 2026 and for the year ended 31 December 2025 , neither the book values nor the impairment allowances had any migrations between stages.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 31 18 Derivatives and hedge accounting (1) Analysed by type of contracts 30 June 2026 31 December 2025 Note Notional amounts Assets Liabilities Notional amounts Assets Liabilities Interest rate contracts 3,723,945 11,183 9,744 2,946,134 9,689 8,396 Exchange rate contracts 4,189,611 34,435 30,344 6,233,284 36,664 33,358 Other contracts (a) 276,303 29,225 5,300 330,223 2,947 48,050 Total 8,189,859 74,843 45,388 9,509,641 49,300 89,804 (a) Other contracts mainly consist of precious metals and commodity contracts. (2) Hedge accounting The following designated hedging instruments are included in the derivatives disclosed above: 30 June 2026 31 December 2025 Note Notional amounts Assets Liabilities Notional amounts Assets Liabilities Fair value hedges (a) Interest rate swaps 53,323 489 111 52,303 424 125 Cross currency swaps 12,775 487 43 13,478 321 54 Cash flow hedges (b) Foreign exchange swaps 4,776 118 13 6,146 42 14 Cross currency swaps 1,493 97 - 1,537 65 - Interest rate swaps 8,396 23 60 9,784 5 14 Total 80,763 1,214 227 83,248 857 207
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 32 18 Derivatives and hedge accounting (continued) (2) Hedge accounting (continued) (a) Fair value hedges The Group uses interest rate swaps and cross currency swaps to hedge against changes in fair value of loans and advances to customers, debt securities, placements from banks and non-bank financial institutions, financial assets sold under repurchase agreements, and deposits from customers. Net gains/(losses) on fair value hedges are as follows: Six months ended 30 June 2026 2025 Hedging instruments 255 (516 ) Hedged items (255 ) 485 The gain and loss arising from the ineffective portion of fair value hedges was immaterial for the six months ended 30 June 2026 and 2025. (b) Cash flow hedges The Group uses foreign exchange swaps, cross currency swaps and interest rate swaps to hedge against exposures to cash flow variability primarily from foreign exchange and interest rate risks on deposits with banks and non -bank financial institutions, placements with banks and non -bank financial institutions, debt securities , debt securities issued and unrecognised firm commitment. The maturities of hedging instruments and hedged items are predominantly within five years. For the six months ended 30 June 2026, the Group’s net loss from the cash flow hedges of RMB280 million was recognised in other comprehensive income (for the six months ended 30 June 2025: net loss from cash flow hedges of RMB264 million), and the gain and loss arising from the ineffective portion of cash flow hedges was immaterial.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 33 19 Financial assets held under resale agreements Financial assets held under resale agreements analysed by underlying assets are shown as follows: 30 June 2026 31 December 2025 Debt securities - Government bonds 127,055 405,394 - Debt securities issued by policy banks, banks and non-bank financial institutions 120,558 438,618 - Enterprise bonds 101 - Subtotal 247,714 844,012 Discounted bills - 12,692 Accrued interest 66 136 Total 247,780 856,840 Allowances for impairment losses (Note 31) (4 ) (22 ) Net balances 247,776 856,818 As at 30 June 2026 and 31 December 2025, all of the Group's financial assets held under resale agreements were designated as Stage 1. For the six months ended 30 June 2026 and for the year ended 31 December 2025 , neither the book values nor the impairment allowances had any migrations between stages.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 34 20 Loans and advances to customers (1) Analysed by measurement Note 30 June 2026 31 December 2025 Gross loans and advances to customers measured at amortised cost 26,788,811 25,629,143 Less: allowances for impairment losses (902,666 ) (846,037 ) Net loans and advances to customers measured at amortised cost (a) 25,886,145 24,783,106 Loans and advances to customers measured at fair value through other comprehensive income (b) 2,498,034 2,092,713 Accrued interest 55,931 50,971 Total 28,440,110 26,926,790
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 35 20 Loans and advances to customers (continued) (1) Analysed by measurement (continued) (a) Loans and advances to customers measured at amortised cost 30 June 2026 31 December 2025 Corporate loans and advances - Loans 17,508,558 16,370,983 - Finance leases 92,018 98,978 17,600,576 16,469,961 Personal loans and advances - Residential mortgages 5,919,225 6,054,134 - Personal business loans 1,454,668 1,315,605 - Credit card loans 934,714 1,012,246 - Personal consumer loans 806,809 704,099 - Other personal loans 72,819 73,098 9,188,235 9,159,182 Gross loans and advances to customers measured at amortised cost 26,788,811 25,629,143 Stage 1 - allowances for impairment losses (371,994 ) (328,800 ) Stage 2 - allowances for impairment losses (246,288 ) (239,445 ) Stage 3 - allowances for impairment losses (284,384 ) (277,792 ) Allowances for impairment losses at amortised cost (Note 31) (902,666 ) (846,037 ) Net loans and advances to customers measured at amortised cost 25,886,145 24,783,106
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 36 20 Loans and advances to customers (continued) (1) Analysed by measurement (continued) (b) Loans and advances to customers measured at fair value through other comprehensive income 30 June 2026 31 December 2025 Discounted bills 2,498,034 2,092,713 (2) Analysed by assessment method of expected credit losses 30 June 2026 Stage 1 Stage 2 Stage 3 Total Gross loans and advances to customers measured at amortised cost 25,502,500 907,335 378,976 26,788,811 Less: allowances for impairment losses (371,994 ) (246,288 ) (284,384 ) (902,666 ) Carrying amount of loans and advances to customers measured at amortised cost 25,130,506 661,047 94,592 25,886,145 Provision percentage for loans and advances to customers measured at amortised cost 1.46% 27.14% 75.04% 3.37% Carrying amount of loans and advances to customers measured at fair value through other comprehensive income 2,497,811 223 - 2,498,034 Allowances for impairment losses on loans and advances to customers measured at fair value through other comprehensive income (1,895 ) (5 ) - (1,900 )
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 37 20 Loans and advances to customers (continued) (2) Analysed by assessment method of expected credit losses (continued) 31 December 2025 Stage 1 Stage 2 Stage 3 Total Gross loans and advances to customers measured at amortised cost 24,406,012 859,149 363,982 25,629,143 Less: allowances for impairment losses (328,800 ) (239,445 ) (277,792 ) (846,037 ) Carrying amount of loans and advances to customers measured at amortised cost 24,077,212 619,704 86,190 24,783,106 Provision percentage for loans and advances to customers measured at amortised cost 1.35% 27.87% 76.32% 3.30% Carrying amount of loans and advances to customers measured at fair value through other comprehensive income 2,092,660 53 - 2,092,713 Allowances for impairment losses on loans and advances to customers measured at fair value through other comprehensive income (2,564 ) (11 ) - (2,575 ) The Group measures ECL of loans and advances using risk parameter modelling approach that incorporates relevant parameters such as Probability of Default (“PD”), Loss Given Default (“LGD”), and Exposure at Default (“EAD”). Specifically, for Stage 3 corpora te loans and advances not managed on a portfolio basis, as well as Stage 3 discounted bills, the Group calculates LGD using the discounted cash flow method on expected recoverable cash flows. The Group may also calculate LGD for other loans and advances us ing the discounted cash flow method on expected recoverable cash flows based on actual circumstances. The segmentation of the loans mentioned above is defined in Note 57(1).
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 38 20 Loans and advances to customers (continued) (3) Movements of allowances for impairment losses Six months ended 30 June 2026 Note Stage 1 Stage 2 Stage 3 Total As at 1 January 2026 328,800 239,445 277,792 846,037 Transfers: Transfers in/(out) to Stage 1 15,067 (14,129 ) (938 ) - Transfers in/(out) to Stage 2 (6,231 ) 9,430 (3,199 ) - Transfers in/(out) to Stage 3 (2,518 ) (24,466 ) 26,984 - Newly originated or purchased financial assets 113,533 - - 113,533 Transfer out/repayment (a) (80,787 ) (13,656 ) (55,054 ) (149,497 ) Remeasurements (b) 4,130 49,664 63,913 117,707 Write-offs - - (31,993 ) (31,993 ) Recoveries of loans and advances written off - - 6,879 6,879 As at 30 June 2026 371,994 246,288 284,384 902,666
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 39 20 Loans and advances to customers (continued) (3) Movements of allowances for impairment losses (continued) 2025 Note Stage 1 Stage 2 Stage 3 Total As at 1 January 2025 328,369 219,912 254,613 802,894 Transfers: Transfers in/(out) to Stage 1 22,161 (21,130 ) (1,031 ) - Transfers in/(out) to Stage 2 (7,843 ) 10,646 (2,803 ) - Transfers in/(out) to Stage 3 (4,778 ) (29,356 ) 34,134 - Newly originated or purchased financial assets 173,272 - - 173,272 Transfer out/repayment (a) (131,951 ) (31,084 ) (95,658 ) (258,693 ) Remeasurements (b) (50,430 ) 90,457 111,165 151,192 Write-offs - - (38,581 ) (38,581 ) Recoveries of loans and advances written off - - 15,953 15,953 As at 31 December 2025 328,800 239,445 277,792 846,037 (a) Transfer out/repayment refers to transfer of creditor’s rights, transfer of beneficial rights from credit assets, securitisation of assets, debt -to-equity swaps and reversal of loss provision due to repayment of debts in the form of other assets, as well a s repayment of loans, etc. (b) Remeasurements comprise the impact of changes in PD, LGD, and EAD; changes in model assumptions and methodologies; loss provisions change due to stage -transfer; unwinding of discount; and the impact of exchange rate changes, etc. The loss provisions disclosed above are for loans and advances to customers measured at amortised cost. (4) Packaged disposal of non-performing loans For the six months ended 30 June 2026, the Group’s total amount of non-performing loans sold through packaged disposal to external asset management companies was RMB12,514 million (for the six months ended 30 June 2025: RMB12,424 million). (5) Write-offs According to the Group’s Write -offs policy, it is required to continue to recover the bad debts that are written off. For the six months ended 30 June 2026, the amount of loans and advances to customers that the Group has written off under litigation-related condition but still under enforcement was RMB9,159 million (for the six months ended 30 June 2025: RMB2,953 million).
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 40 21 Financial investments (1) Analysed by measurement Note 30 June 2026 31 December 2025 Financial assets measured at fair value through profit or loss (a) 920,388 874,994 Financial assets measured at amortised cost (b) 8,593,174 7,739,652 Financial assets measured at fair value through other comprehensive income (c) 4,477,360 4,282,706 Total 13,990,922 12,897,352 (a) Financial assets measured at fair value through profit or loss Analysed by nature Note 30 June 2026 31 December 2025 Held-for-trading purposes - Debt securities (i) 317,360 317,667 - Equity instruments and funds (ii) 5,827 4,124 323,187 321,791 Others - Debt securities (iii) 114,820 140,979 - Equity instruments, funds and others (iv) 482,381 412,224 597,201 553,203 Total 920,388 874,994
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 41 21 Financial investments (continued) (1) Analysed by measurement (continued) (a) Financial assets measured at fair value through profit or loss (continued) Analysed by type of issuers Held-for-trading purposes (i) Debt securities 30 June 2026 31 December 2025 Government 31,657 23,096 Central banks 1,006 8,725 Policy banks 37,170 49,451 Banks and non-bank financial institutions 199,831 191,050 Enterprises 47,696 45,345 Total 317,360 317,667 Listed (Note) 310,763 312,684 -of which in Hong Kong 2,017 942 Unlisted 6,597 4,983 Total 317,360 317,667 Note: Debt securities traded on the China Domestic Interbank Bond Market are classified as “Listed”.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 42 21 Financial investments (continued) (1) Analysed by measurement (continued) (a) Financial assets measured at fair value through profit or loss (continued) Analysed by type of issuers (continued) Held-for-trading purposes (continued) (ii) Equity instruments and funds 30 June 2026 31 December 2025 Banks and non-bank financial institutions 4,579 2,570 Enterprises 1,248 1,554 Total 5,827 4,124 Listed 2,613 2,840 -of which in Hong Kong 104 72 Unlisted 3,214 1,284 Total 5,827 4,124
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 43 21 Financial investments (continued) (1) Analysed by measurement (continued) (a) Financial assets measured at fair value through profit or loss (continued) Analysed by type of issuers (continued) Others (iii) Debt securities 30 June 2026 31 December 2025 Policy banks 8,601 8,537 Banks and non-bank financial institutions 104,495 131,653 Enterprises 1,724 789 Total 114,820 140,979 Listed (Note) 114,772 140,876 -of which in Hong Kong 30 68 Unlisted 48 103 Total 114,820 140,979 Note: Debt securities traded on the China Domestic Interbank Bond Market are classified as “Listed”.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 44 21 Financial investments (continued) (1) Analysed by measurement (continued) (a) Financial assets measured at fair value through profit or loss (continued) Analysed by type of issuers (continued) Others (continued) (iv) Equity instruments, funds and others 30 June 2026 31 December 2025 Banks and non-bank financial institutions 313,717 259,479 Enterprises 168,664 152,745 Total 482,381 412,224 Listed 37,858 30,125 -of which in Hong Kong 3,764 4,438 Unlisted 444,523 382,099 Total 482,381 412,224 There was no significant limitation on the ability of the Group to dispose of financial assets measured at fair value through profit or loss.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 45 21 Financial investments (continued) (1) Analysed by measurement (continued) (b) Financial assets measured at amortised cost Analysed by type of issuers 30 June 2026 31 December 2025 Government 7,862,193 7,014,053 Central banks 1,440 4,274 Policy banks 392,035 331,704 Banks and non-bank financial institutions 70,879 124,985 Enterprises 165,081 166,260 Special government bond 49,200 49,200 Subtotal 8,540,828 7,690,476 Accrued interest 77,530 71,883 Gross balances 8,618,358 7,762,359 Allowances for impairment losses -Stage 1 (14,684 ) (12,214 ) -Stage 2 (943 ) (476 ) -Stage 3 (9,557 ) (10,017 ) Subtotal (25,184 ) (22,707 ) Net balances 8,593,174 7,739,652 Listed (Note) 8,474,911 7,596,333 -of which in Hong Kong 2,129 952 Unlisted 118,263 143,319 Total 8,593,174 7,739,652 Market value of listed bonds 8,990,513 8,059,224 Note: Debt securities traded on the China Domestic Interbank Bond Market are classified as “Listed”.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 46 21 Financial investments (continued) (1) Analysed by measurement (continued) (c) Financial assets measured at fair value through other comprehensive income Analysed by nature Note 30 June 2026 31 December 2025 Bond investments (i) 4,430,179 4,232,347 Debt investments 444 456 Equity instruments (ii) 46,737 49,903 Total 4,477,360 4,282,706
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 47 21 Financial investments (continued) (1) Analysed by measurement (continued) (c) Financial assets measured at fair value through other comprehensive income (continued) (i) Debt securities Analysed by type of issuers 30 June 2026 31 December 2025 Government 2,995,751 2,803,638 Central banks 24,308 57,129 Policy banks 303,321 400,583 Banks and non-bank financial institutions 584,473 567,102 Enterprises 445,911 345,382 Accumulated change of fair value charged in other comprehensive income 45,250 26,949 Subtotal 4,399,014 4,200,783 Accrued interest 31,165 31,564 Total 4,430,179 4,232,347 Listed (Note) 4,149,415 3,961,525 -of which in Hong Kong 96,206 91,356 Unlisted 280,764 270,822 Total 4,430,179 4,232,347 Note: Debt securities traded on the China Domestic Interbank Bond Market are classified as “Listed”.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 48 21 Financial investments (continued) (1) Analysed by measurement (continued) (c) Financial assets measured at fair value through other comprehensive income (continued) (ii) Equity instruments Six months ended 30 June 2026 Fair value changes Cumulative gains or losses transferred into retained earnings from other comprehensive income Items As at 1 January 2026 Acquisitions Changes related to derecognised investments Changes related to investments held at the end of the period Disposals As at 30 June 2026 -Carrying amount 49,903 2,345 (11 ) (4,653 ) (847 ) - 46,737 -Cumulative gains or losses recognised in other comprehensive income 12,719 - (11 ) (4,653 ) - 97 8,152 2025 Fair value changes Cumulative gains or losses transferred into retained earnings from other comprehensive income Items As at 1 January 2025 Acquisitions Changes related to derecognised investments Changes related to investments held at the end of the year Disposals As at 31 December 2025 -Carrying amount 32,222 19,152 109 197 (1,777 ) - 49,903 -Cumulative gains or losses recognised in other comprehensive income 12,591 - 109 197 - (178 ) 12,719 The Group designates certain non-trading equity investments as financial assets measured at fair value through other comprehensive income. For the six months ended 30 June 2026, dividend income from such equity investments was RMB550 million (for the six months ended 30 June 2025: RMB467 million), of which RMB11 million was attributable to investments derecognised during the current period (for the six months ended 30 June 2025: Nil) and RMB539 million was attributable to investments held at the end of the period (for the six months ended 30 June 2025: RMB467 million).
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 49 21 Financial investments (continued) (2) Movements of allowances for impairment losses (a) Financial assets measured at amortised cost Six months ended 30 June 2026 Note Stage 1 Stage 2 Stage 3 Total As at 1 January 2026 12,214 476 10,017 22,707 Transfers: Transfers in/(out) to Stage 1 - - - - Transfers in/(out) to Stage 2 - - - - Transfers in/(out) to Stage 3 - - - - Newly originated or purchased financial assets 1,711 - - 1,711 Financial assets derecognised during the period (895 ) (71 ) (130 ) (1,096 ) Remeasurements (i) 1,654 538 77 2,269 Write-offs - - (407 ) (407 ) Recoveries of financial assets written off - - - - As at 30 June 2026 14,684 943 9,557 25,184
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 50 21 Financial investments (continued) (2) Movements of allowances for impairment losses (continued) (a) Financial assets measured at amortised cost (continued) 2025 Note Stage 1 Stage 2 Stage 3 Total As at 1 January 2025 14,212 7 12,300 26,519 Transfers: Transfers in/(out) to Stage 1 - - - - Transfers in/(out) to Stage 2 (24 ) 24 - - Transfers in/(out) to Stage 3 - - - - Newly originated or purchased financial assets 1,102 - - 1,102 Financial assets derecognised during the year (1,936 ) - (2,106 ) (4,042 ) Remeasurements (i) (1,140 ) 445 853 158 Write-offs - - (1,037 ) (1,037 ) Recoveries of financial assets written off - - 7 7 As at 31 December 2025 12,214 476 10,017 22,707
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 51 21 Financial investments (continued) (2) Movements of allowances for impairment losses (continued) (b) Financial assets measured at fair value through other comprehensive income Six months ended 30 June 2026 Note Stage 1 Stage 2 Stage 3 Total As at 1 January 2026 4,143 85 252 4,480 Transfers: Transfers in/(out) to Stage 1 81 (81 ) - - Transfers in/(out) to Stage 2 - - - - Transfers in/(out) to Stage 3 - - - - Newly originated or purchased financial assets 1,183 - - 1,183 Financial assets derecognised during the period (608 ) - (7 ) (615 ) Remeasurements (i) 327 (3 ) 9 333 As at 30 June 2026 5,126 1 254 5,381
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 52 21 Financial investments (continued) (2) Movements of allowances for impairment losses (continued) (b) Financial assets measured at fair value through other comprehensive income (continued) 2025 Note Stage 1 Stage 2 Stage 3 Total As at 1 January 2025 2,939 8 303 3,250 Transfers: Transfers in/(out) to Stage 1 - - - - Transfers in/(out) to Stage 2 - - - - Transfers in/(out) to Stage 3 - - - - Newly originated or purchased financial assets 2,668 81 - 2,749 Financial assets derecognised during the year (1,266 ) - (51 ) (1,317 ) Remeasurements (i) (198 ) (4 ) - (202 ) As at 31 December 2025 4,143 85 252 4,480 (i) Remeasurements comprise the impact of changes in PD, LGD, and EAD; changes in model assumptions and methodologies; changes in allowance for impairment losses due to stage-transfer; and the impact of exchange rate changes, etc. As at 30 June 2026, the Group’s financial assets measured at amortised cost with carrying amount of RMB9,398 million (as at 31 December 2025: RMB9,945 million) and financial assets measured at fair value through other comprehensive income with carrying amount of RMB10 million (as at 31 December 2025:RMB24 million) were impaired and classified as Stage 3, financial assets measured at amortised cost with carrying amount of RMB5,602 million (as at 31 December 2025: RMB6,320 million) and financial assets measured at fair value through other comprehensive income with carrying amount of RMB561 million (as at 31 December 2025: RMB1,343 million) were classified as Stage 2, and the remaining financial assets measured at amortised cost and financial assets measured at fair value through other comprehensive income were classified as Stage 1. For the six months ended 30 June 2026, the increase in the Group’s Stage 1 financial assets due to newly originated or purchased financial assets amounted to RMB2,854,001 million (for the year ended 31 December 2025: RMB4,134,561 million), the decrease in Stage 1 financial assets due to derecognition amounted to RMB1,793,464 million (for the year ended 31 December 2025: RMB2,174,709 million), and there were no significant changes in the balances of financial assets classified as Stage 2 and 3. Both the amounts of financial assets transferred between stages and the amounts of financial assets with modifications of contractual cash flows that did not result in a derecognition were not significant.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 53 22 Long-term equity investments (1) Investments in subsidiaries (a) Investment balance 30 June 2026 31 December 2025 CCB Financial Asset Investment Co., Ltd. (“CCB Investment”) 27,000 27,000 CCB Wealth Management Co., Ltd. (“CCB Wealth Management”) 15,000 15,000 CCB Financial Leasing Co., Ltd. (“CCB Financial Leasing”) 11,163 11,163 CCB House Rental Fund (Limited Partnership) (“CCB House Rental Fund”) 10,000 10,000 CCB Brazil Financial Holding - Investimentos e Participaç õ es Ltda. 9,542 9,542 CCB Trust Co., Ltd. (“CCB Trust”) 7,429 7,429 CCB Life Insurance Co., Ltd. (“CCB Life”) 6,962 6,962 CCB Consumer Finance Co., Ltd. (“CCB Consumer Finance”) 6,000 6,000 China Construction Bank (Europe) S.A. (“CCB Europe”) 4,406 4,406 PT Bank China Construction Bank Indonesia Tbk (“CCB Indonesia”) 2,215 2,215 CCB Pension Management Co., Ltd. (“CCB Pension”) 1,610 1,610 Sino-German Bausparkasse Co., Ltd. (“Sino-German Bausparkasse”) 1,502 1,502 China Construction Bank (Malaysia) Berhad (“CCB Malaysia”) 1,334 1,334 China Construction Bank (New Zealand) Limited (“CCB New Zealand”) 976 976 China Construction Bank (Russia) Limited (“CCB Russia”) 851 851 Golden Fountain Finance Limited (“Golden Fountain”) 676 676 CCB Principal Asset Management Co., Ltd. (“CCB Principal Asset Management”) 130 130 CCB International Group Holdings Limited (“CCBIG”) - - Subtotal 106,796 106,796 Less: Allowance for impairment losses (8,672 ) (8,672 ) Total 98,124 98,124
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 54 22 Long-term equity investments (continued) (1) Investments in subsidiaries (continued) (b) Except for CCB Indonesia, the major subsidiaries of the Group are unlisted enterprises, details of the investments in subsidiaries are as follows: Name of company Principal place of business Particulars of issued and paid-up capital Kind of legal entity Principal activities % of ownership directly held by the Bank % of ownership indirectly held by the Bank % of voting rights held by the Bank Method of investment CCB Investment Beijing, the PRC RMB27,000 million Company with Limited Liability Investment 100% - 100% Establishment CCB Wealth Management Shenzhen, the PRC RMB15,000 million Company with Limited Liability Wealth Management 100% - 100% Establishment CCB Financial Leasing Beijing, the PRC RMB11,000 million Company with Limited Liability Financial Leasing 100% - 100% Establishment CCB House Rental Fund Beijing, the PRC RMB10,000 million Limited Partnership Investment 99.99% 0.01% 100% Establishment CCB Brazil Financial Holding- Investimentos e Participaç õ es Ltda. Sao Paulo, Brazil R$4,281 million Company with Limited Liability Investment 99.99% 0.01% 100% Acquisition CCB Trust Anhui, the PRC RMB10,500 million Company with Limited Liability Trust Business 67% - 67% Acquisition CCB Life Shanghai, the PRC RMB7,120 million Company Limited by Shares Insurance 51% - 51% Acquisition CCB Consumer Finance Beijing, the PRC RMB7,200 million Company with Limited Liability Consumer Finance 83.33% - 83.33% Establishment CCB Europe Luxembourg EUR550 million Company with Limited Liability Commercial Banking 100% - 100% Establishment CCB Indonesia Jakarta, Indonesia IDR3,791,973 million Company Limited by Shares Commercial Banking 60% - 60% Acquisition CCB Pension Beijing, the PRC RMB2,300 million Company with Limited Liability Pension Management 70% - 70% Establishment Sino-German Bausparkasse Tianjin, the PRC RMB2,000 million Company with Limited Liability House Savings 75.10% - 75.10% Establishment
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 55 22 Long-term equity investments (continued) (1) Investments in subsidiaries (continued) (b) Except for CCB Indonesia, the major subsidiaries of the Group are unlisted enterprises, details of the investments in subsidiaries are as follows: (continued) Name of company Principal place of business Particulars of issued and paid-up capital Kind of legal entity Principal activities % of ownership directly held by the Bank % of ownership indirectly held by the Bank % of voting rights held by the Bank Method of investment CCB Malaysia Kuala Lumpur, Malaysia MYR823 million Company with Limited Liability Commercial Banking 100% - 100% Establishment CCB New Zealand Auckland, New Zealand NZD199 million Company with Limited Liability Commercial Banking 100% - 100% Establishment CCB Russia Moscow, Russia RUB4,200 million Company with Limited Liability Commercial Banking 100% - 100% Establishment Golden Fountain British Virgin Islands US$ 50,000 Company with Limited Liability Investment 100% - 100% Acquisition CCB Principal Asset Management Beijing, the PRC RMB200 million Company with Limited Liability Fund Management Services 65% - 65% Establishment CCBIG Hong Kong, the PRC HK$1 Company with Limited Liability Investment 100% - 100% Establishment CCB International (Holdings) Limited (“CCB International”) Hong Kong, the PRC US$601 million Company with Limited Liability Investment - 100% 100% Acquisition China Construction Bank (Asia) Corporation Limited (“CCB Asia”) Hong Kong, the PRC HK$6,511 million RMB17,600 million Company Limited by Shares Commercial Banking - 100% 100% Acquisition (c) As at 30 June 2026 , the amount of the non -controlling interests of the subsidiaries was immaterial to the Group.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 56 22 Long-term equity investments (continued) (2) Interests in associates and joint ventures (a) The movements of the Group’s interests in associates and joint ventures are as follows: Six months ended 30 June 2026 2025 As at 1 January 27,781 23,560 Increase in capital during the period/year 257 4,359 Decrease in capital during the period/year (2,589 ) (623 ) Share of profits 637 336 Cash dividend receivable (69 ) (279 ) Allowances for impairment losses (Note 31) - (29 ) Effect of exchange difference and others (278 ) 457 As at 30 June/31 December 25,739 27,781
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 57 22 Long-term equity investments (continued) (2) Interests in associates and joint ventures (continued) (b) Details of the interests in major associates and joint ventures are as follows: Name of company Principal place of business Particulars of issued and paid-up capital Principal activities % of ownership held % of voting held Total assets at period end Total liabilities at period end Revenue for the period Net profit for the period Guoxin Jianyuan Equity Investment Fund (Chengdu) Partnership (Limited Partnership) Chengdu, the PRC RMB 9,633 million Equity investment 50.00% 50.00% 13,148 1 (678 ) (721 ) National Green Development Fund Co., Ltd. Shanghai, the PRC RMB 53,050 million Investment 9.04% 9.04% 57,082 994 540 329 Jianyuan Infrastructure Equity Investment Fund (Tianjin) Partnership (Limited Partnership) Tianjin, the PRC RMB 3,500 million Equity investment 48.57% 40.00% 4,196 - 76 76 Guomin Pension&Insurance Co., Ltd Beijing, the PRC RMB 11,378 million Insurance 8.79% 8.79% 113,580 100,255 1,325 446 Guangdong Strategic Industries Promotion and Development Fund Partnership (Limited Partnership) Guangzhou, the PRC RMB 1,204 million Equity investment 50.00% 50.00% 1,203 1 - (1 )
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 58 23 Structured entities (1) Unconsolidated structured entities Unconsolidated structured entities of the Group include wealth management products, asset management plans, trust plans, funds and asset-backed securities held for investment purposes, and wealth management products, trust plans and funds, which are issued or established by the Group for providing wealth management services to customers and earning management fees, commissions and custodian fees in return. As at 30 June 2026 and 31 December 2025, the assets recognised for the Group’s interests in the unconsolidated structured entities above included related investment and management fee, commission and custodian fee receivables accrued. Relevant carrying amounts and maximum risk exposures were as follows: 30 June 2026 31 December 2025 Financial investments Financial assets measured at fair value through profit or loss 319,362 261,601 Financial assets measured at amortised cost 3,891 3,906 Financial assets measured at fair value through other comprehensive income 18,991 5,369 Long-term equity investments 17,219 17,240 Other assets 2,868 3,353 Total 362,331 291,469
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 59 23 Structured entities (continued) (1) Unconsolidated structured entities (continued) For the six months ended 30 June 2026 and 2025, gains and losses from the Group’s unconsolidated structured entities were as follows: Six months ended 30 June 2026 2025 Interest income 74 55 Fee and commission income 4,029 6,527 Net trading gain 119 35 Dividend income 438 686 Net gain arising from investment securities 4,303 780 Share of profits/(losses) of associates and joint ventures 436 (306 ) Total 9,399 7,777 As at 30 June 2026, the balance of unconsolidated structured entities initiated by the Group totalled RMB6,885,705 million (as at 31 December 2025: RMB6,510,950 million). (2) Consolidated structured entities Structured entities included in to the Group's scope of consolidation consisted mainly of asset management plans and funds invested by the Group.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 60 24 Fixed assets CY Bank premises Equipment Aircraft and vessels,etc Others Total Cost/Deemed cost As at 1 January 2026 151,795 48,635 73,092 55,067 328,589 Additions 18 1,122 6,882 536 8,558 Transfer in (Note 25) 1,919 176 - 1,633 3,728 Other movements 2,629 (1,268 ) (3,974 ) (1,034 ) (3,647 ) As at 30 June 2026 156,361 48,665 76,000 56,202 337,228 Accumulated depreciation As at 1 January 2026 (71,178 ) (36,378 ) (14,137 ) (40,087 ) (161,780 ) Charge for the period (2,420 ) (2,212 ) (1,959 ) (1,991 ) (8,582 ) Other movements 171 1,218 950 976 3,315 As at 30 June 2026 (73,427 ) (37,372 ) (15,146 ) (41,102 ) (167,047 ) Allowances for impairment losses (Note 31) As at 1 January 2026 (385 ) - (1,186 ) (3 ) (1,574 ) Charge for the period - - - - - Other movements 1 - 119 - 120 As at 30 June 2026 (384 ) - (1,067 ) (3 ) (1,454 ) Net carrying value As at 1 January 2026 80,232 12,257 57,769 14,977 165,235 As at 30 June 2026 82,550 11,293 59,787 15,097 168,727
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 61 24 Fixed assets (continued) PY Bank premises Equipment Aircraft and vessels,etc Others Total Cost/Deemed cost As at 1 January 2025 153,028 49,102 65,399 52,273 319,802 Additions 141 4,440 14,166 2,065 20,812 Transfer in (Note 25) 649 19 - 2,517 3,185 Other movements (2,023 ) (4,926 ) (6,473 ) (1,788 ) (15,210 ) As at 31 December 2025 151,795 48,635 73,092 55,067 328,589 Accumulated depreciation As at 1 January 2025 (66,823 ) (36,065 ) (12,435 ) (37,873 ) (153,196 ) Charge for the year (4,907 ) (5,143 ) (3,774 ) (4,585 ) (18,409 ) Other movements 552 4,830 2,072 2,371 9,825 As at 31 December 2025 (71,178 ) (36,378 ) (14,137 ) (40,087 ) (161,780 ) Allowances for impairment losses (Note 31) As at 1 January 2025 (388 ) - (1,099 ) (3 ) (1,490 ) Charge for the year - - (319 ) - (319 ) Other movements 3 - 232 - 235 As at 31 December 2025 (385 ) - (1,186 ) (3 ) (1,574 ) Net carrying value As at 1 January 2025 85,817 13,037 51,865 14,397 165,116 As at 31 December 2025 80,232 12,257 57,769 14,977 165,235 (1) Aircraft and vessels, etc, include aircraft, vessels, shield machines and other fixed assets used for operating leases. (2) Other movements include disposals, retirements and exchange differences of fixed assets. (3) As at 30 June 2026, the ownership documentation for the Group’s bank premises with a net carrying value of RMB7,377 million (as at 31 December 2025 : RMB5,950 million) was being finalised. However, management took the view that the aforesaid matter would not affect the Group’s rights to these assets, nor would it have any significant impact on the Group’s business operation.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 62 25 Construction in progress Six months ended 30 June 2026 2025 Cost/Deemed cost As at 1 January 6,002 4,319 Additions 720 5,066 Transfer into fixed assets (Note 24) (3,728 ) (3,185 ) Other movements (29 ) (198 ) As at 30 June/31 December 2,965 6,002 Net carrying value As at 1 January 6,002 4,319 As at 30 June/31 December 2,965 6,002 Other movements include exchange differences.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 63 26 Land use rights Six months ended 30 June 2026 2025 Cost/Deemed cost As at 1 January 22,358 22,870 Additions 33 33 Other movements (170 ) (545 ) As at 30 June/31 December 22,221 22,358 Amortisation As at 1 January (10,678 ) (10,320 ) Charge for the period/year (248 ) (499 ) Other movements 63 141 As at 30 June/31 December (10,863 ) (10,678 ) Allowances for impairment losses (Note 31) As at 1 January (132 ) (133 ) Other movements 2 1 As at 30 June/31 December (130 ) (132 ) Net carrying value As at 1 January 11,548 12,417 As at 30 June/31 December 11,228 11,548 Other movements include exchange differences.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 64 27 Intangible assets CY Software Others Total Cost/Deemed cost As at 1 January 2026 24,056 607 24,663 Additions 322 - 322 Other movements (227 ) (3 ) (230 ) As at 30 June 2026 24,151 604 24,755 Amortisation As at 1 January 2026 (18,682 ) (358 ) (19,040 ) Charge for the period (1,062 ) (14 ) (1,076 ) Other movements 179 2 181 As at 30 June 2026 (19,565 ) (370 ) (19,935 ) Allowances for impairment losses (Note 31) As at 1 January 2026 - (12 ) (12 ) Additions - - - Other movements - - - As at 30 June 2026 - (12 ) (12 ) Net carrying value As at 1 January 2026 5,374 237 5,611 As at 30 June 2026 4,586 222 4,808
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 65 27 Intangible assets (continued) PY Software Others Total Cost/Deemed cost As at 1 January 2025 22,471 600 23,071 Additions 1,985 8 1,993 Other movements (400 ) (1 ) (401 ) As at 31 December 2025 24,056 607 24,663 Amortisation As at 1 January 2025 (16,902 ) (330 ) (17,232 ) Charge for the year (2,074 ) (28 ) (2,102 ) Other movements 294 - 294 As at 31 December 2025 (18,682 ) (358 ) (19,040 ) Allowances for impairment losses (Note 31) As at 1 January 2025 - (9 ) (9 ) Additions - (3 ) (3 ) Other movements - - - As at 31 December 2025 - (12 ) (12 ) Net carrying value As at 1 January 2025 5,569 261 5,830 As at 31 December 2025 5,374 237 5,611 Other movements include exchange differences.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 66 28 Goodwill (1) The goodwill is mainly attributable to the expected synergies arising from the acquisition of CCB Asia and CCB Indonesia. The movements of the goodwill are as follows: Six months ended 30 June 2026 2025 As at 1 January 2,416 2,522 Additions through acquisitions 3 38 Allowances for impairment losses (Note 31) (2 ) (4 ) Effect of exchange difference and others (96 ) (140 ) As at 30 June/31 December 2,321 2,416 (2) Impairment test for CGU containing goodwill The Group calculated the recoverable amounts of CGUs (including goodwill) in accordance with accounting policies. The Group estimated present values of future cash flows of CGUs using expected future cash flow projections based on financial forecasts approved by management. The average growth rates used by the Group were consistent with the forecasts in industry reports, while the discount rates reflected specific risks relating to relevant segments. The Group estimated net amounts of fair value less costs of disposal based on net assets within the CGUs. As at 30 June 2026 , the Group’s goodwill impairment provision amounted to RMB41 million (as at 31 December 2025: RMB40 million).
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 67 29 Deferred tax 30 June 2026 31 December 2025 Deferred tax assets 145,190 139,747 Deferred tax liabilities (3,278 ) (2,576 ) Total 141,912 137,171 (1) Analysed by nature 30 June 2026 31 December 2025 Deductible /(taxable) temporary differences Deferred tax assets /(liabilities) Deductible /(taxable) temporary differences Deferred tax assets /(liabilities) Deferred tax assets - Fair value adjustments (43,231 ) (10,982 ) (25,347 ) (6,490 ) - Allowances for impairment losses 607,368 151,337 558,505 139,123 - Employee benefits 55,308 13,759 59,196 14,736 - Others (35,151 ) (8,924 ) (30,324 ) (7,622 ) Total 584,294 145,190 562,030 139,747 Deferred tax liabilities - Fair value adjustments (28,719 ) (6,233 ) (19,356 ) (4,460 ) - Others 11,584 2,955 7,486 1,884 Total (17,135 ) (3,278 ) (11,870 ) (2,576 )
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 68 29 Deferred tax (continued) (2) Movements of deferred tax Fair value adjustments Allowances for impairment losses Employee benefits Others Total As at 1 January 2026 (10,950 ) 139,123 14,736 (5,738 ) 137,171 Recognised in profit or loss (2,756 ) 12,214 (977 ) (800 ) 7,681 Recognised in other comprehensive income (3,509 ) - - 569 (2,940 ) As at 30 June 2026 (17,215 ) 151,337 13,759 (5,969 ) 141,912 As at 1 January 2025 (23,857 ) 135,185 12,470 (4,838 ) 118,960 Recognised in profit or loss 782 3,938 2,266 712 7,698 Recognised in other comprehensive income 12,125 - - (1,612 ) 10,513 As at 31 December 2025 (10,950 ) 139,123 14,736 (5,738 ) 137,171 The Group did not have significant unrecognised deferred tax as at the end of the reporting period.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 69 30 Other assets Note 30 June 2026 31 December 2025 Repossessed assets (1) - Buildings 850 881 - Land use rights 6 6 856 887 Clearing and settlement accounts 209,933 135,936 Right-of-use assets (2) 21,640 22,942 Insurance related assets (3) 17,132 16,749 Fee and commission receivables 16,553 14,374 Investment properties 12,249 12,442 Leasehold improvements 3,574 3,922 Deferred expenses 1,555 1,438 Others 101,319 91,045 Gross balance 384,811 299,735 Allowances for impairment losses (Note 31) - Repossessed assets (702 ) (716 ) - Others (10,833 ) (10,670 ) (11,535 ) (11,386 ) Net balance 373,276 288,349 (1) For the six months ended 30 June 2026, the original cost of repossessed assets disposed of by the Group amounted to RMB28 million (for the six months ended 30 June 2025: RMB230 million). The Group intends to dispose of repossessed assets through various methods including auction, competitive bidding and transfer.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 70 30 Other assets (continued) (2) Right-of-use assets CY Bank premises Others Total Cost As at 1 January 2026 44,597 186 44,783 Additions 3,386 26 3,412 Other movements (5,129 ) (22 ) (5,151 ) As at 30 June 2026 42,854 190 43,044 Accumulated depreciation As at 1 January 2026 (21,737 ) (104 ) (21,841 ) Charge for the period (3,200 ) (26 ) (3,226 ) Other movements 3,645 18 3,663 As at 30 June 2026 (21,292 ) (112 ) (21,404 ) Allowances for impairment losses (Note 31) As at 1 January 2026 (247 ) - (247 ) Other movements 43 - 43 As at 30 June 2026 (204 ) - (204 ) Net carrying value As at 1 January 2026 22,613 82 22,695 As at 30 June 2026 21,358 78 21,436
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 71 30 Other assets (continued) (2) Right-of-use assets (continued) PY Bank premises Others Total Cost As at 1 January 2025 47,156 189 47,345 Additions 7,722 43 7,765 Other movements (10,281 ) (46 ) (10,327 ) As at 31 December 2025 44,597 186 44,783 Accumulated depreciation As at 1 January 2025 (22,143 ) (83 ) (22,226 ) Charge for the year (6,995 ) (54 ) (7,049 ) Other movements 7,401 33 7,434 As at 31 December 2025 (21,737 ) (104 ) (21,841 ) Allowances for impairment losses (Note 31) As at 1 January 2025 (228 ) - (228 ) Charge for the year (25 ) - (25 ) Other movements 6 - 6 As at 31 December 2025 (247 ) - (247 ) Net carrying value As at 1 January 2025 24,785 106 24,891 As at 31 December 2025 22,613 82 22,695 Other movements include exchange differences.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 72 30 Other assets (continued) (3) Insurance-related assets The total for groups of insurance contracts issued and reinsurance contracts that are assets as follows: 30 June 2026 31 December 2025 Insurance contracts issued - Insurance contracts issued not applying the premium allocation approach 21 23 - Insurance contracts issued applying the premium allocation approach - - Subtotal 21 23 Reinsurance contracts held - Reinsurance contracts held not applying the premium allocation approach 15,972 15,543 - Reinsurance contracts held applying the premium allocation approach 1,139 1,183 Subtotal 17,111 16,726 Total 17,132 16,749
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 73 31 Movements of allowances for impairment losses Six months ended 30 June 2026 Note As at 1 January Charge/ (reversal) for the period Transfer (out)/in Write-offs and others As at 30 June Deposits with banks and non-bank financial institutions 16 55 10 - - 65 Precious metals - - - - - Placements with banks and non- bank financial institutions 17 260 91 (3 ) - 348 Financial assets held under resale agreements 19 22 (18 ) - - 4 Loans and advances to customers measured at amortised cost 20 846,037 126,019 (37,397 ) (31,993 ) 902,666 Financial assets measured at amortised cost 21 22,707 2,994 (110 ) (407 ) 25,184 Long-term equity investments 22 73 - - - 73 Fixed assets 24 1,574 - - (120 ) 1,454 Land use rights 26 132 - - (2 ) 130 Intangible assets 27 12 - - - 12 Goodwill 28 40 2 (1 ) - 41 Other assets 30 11,386 1,842 74 (1,767 ) 11,535 Total 882,298 130,940 (37,437 ) (34,289 ) 941,512
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 74 31 Movements of allowances for impairment losses (continued) 2025 Note As at 1 January Charge/ (reversal) for the year Transfer (out)/in Write-offs and others As at 31 December Deposits with banks and non-bank financial institutions 16 107 (52 ) - - 55 Precious metals 1 (1 ) - - - Placements with banks and non- bank financial institutions 17 431 (177 ) 6 - 260 Financial assets held under resale agreements 19 33 (11 ) - - 22 Loans and advances to customers measured at amortised cost 20 802,894 147,895 (66,171 ) (38,581 ) 846,037 Financial assets measured at amortised cost 21 26,519 (1,326 ) (1,449 ) (1,037 ) 22,707 Long-term equity investments 22 44 29 - - 73 Fixed assets 24 1,490 319 - (235 ) 1,574 Land use rights 26 133 - - (1 ) 132 Intangible assets 27 9 3 - - 12 Goodwill 28 39 4 (1 ) (2 ) 40 Other assets 30 12,993 1,454 329 (3,390 ) 11,386 Total 844,693 148,137 (67,286 ) (43,246 ) 882,298 Transfer (out)/in includes exchange differences.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 75 32 Borrowings from central banks 30 June 2026 31 December 2025 The Chinese mainland 1,447,979 1,046,397 Overseas 20,015 41,726 Accrued interest 9,907 8,184 Total 1,477,901 1,096,307 33 Deposits from banks and non-bank financial institutions (1) Analysed by type of counterparties 30 June 2026 31 December 2025 Banks 170,942 307,834 Non-bank financial institutions 4,086,234 3,948,866 Accrued interest 34,797 30,517 Total 4,291,973 4,287,217 (2) Analysed by geographical sectors 30 June 2026 31 December 2025 The Chinese mainland 4,112,709 4,123,735 Overseas 144,467 132,965 Accrued interest 34,797 30,517 Total 4,291,973 4,287,217
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 76 34 Placements from banks and non-bank financial institutions (1) Analysed by type of counterparties 30 June 2026 31 December 2025 Banks 434,709 451,826 Non-bank financial institutions 44,450 43,859 Accrued interest 3,045 4,272 Total 482,204 499,957 (2) Analysed by geographical sectors 30 June 2026 31 December 2025 The Chinese mainland 202,489 189,769 Overseas 276,670 305,916 Accrued interest 3,045 4,272 Total 482,204 499,957
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 77 35 Financial liabilities measured at fair value through profit or loss 30 June 2026 31 December 2025 Financial liabilities related to precious metals 120,241 59,531 Structured financial instruments and others 223,704 264,699 Total 343,945 324,230 The structured financial instruments included under the Group’s financial liabilities measured at fair value through profit or loss are designated as financial liabilities measured at fair value through profit or loss. As at the end of the reporting period , the difference between the fair value of these financial liabilities and the contractual payables at maturity was not material. The amounts of changes in the fair value of these financial liabilities that were attributable to changes in credit risk of that liabilities were considered not significant during the period and the year presented and cumulatively as at 30 June 2026 and 31 December 2025. 36 Financial assets sold under repurchase agreements Financial assets sold under repurchase agreements analysed by underlying assets are shown as follows: 30 June 2026 31 December 2025 Debt securities - Government bonds 1,422,458 1,459,482 - Debt securities issued by policy banks, banks and non-bank financial institutions 22,093 21,992 - Corporate bonds 1,186 1,146 Subtotal 1,445,737 1,482,620 Discounted bills 376 4,129 Accrued interest 4,871 4,183 Total 1,450,984 1,490,932
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 78 37 Deposits from customers 30 June 2026 31 December 2025 Demand deposits - Corporate customers 6,552,727 6,524,221 - Personal customers 6,316,400 6,278,481 Subtotal 12,869,127 12,802,702 Time deposits (including call deposits) - Corporate customers 5,917,401 5,622,093 - Personal customers 12,667,792 11,955,803 Subtotal 18,585,193 17,577,896 Accrued interest 364,099 454,976 Total 31,818,419 30,835,574 Deposits from customers include: 30 June 2026 31 December 2025 (1) Pledged deposits - Deposits for acceptance 188,313 183,924 - Deposits for letter of credit 56,013 43,906 - Deposits for guarantee 26,375 28,139 - Others 229,158 143,707 Total 499,859 399,676 (2) Outward remittance and remittance payables 21,150 10,615
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 79 38 Accrued staff costs Six months ended 30 June 2026 Note As at 1 January Increased Decreased As at 30 June Salaries, bonuses, allowances and subsidies 53,750 38,740 (43,325 ) 49,165 Housing funds 145 4,178 (4,150 ) 173 Union running costs and employee education costs 9,701 1,137 (959 ) 9,879 Post-employment benefits (1) 466 8,605 (8,847 ) 224 Early retirement benefits 733 1 (11 ) 723 Compensation to employees for termination of employment relationship - 12 (12 ) - Others (2) 5,209 8,703 (8,303 ) 5,609 Total 70,004 61,376 (65,607 ) 65,773 2025 Note As at 1 January Increased Decreased As at 31 December Salaries, bonuses, allowances and subsidies 44,768 89,928 (80,946 ) 53,750 Housing funds 157 8,401 (8,413 ) 145 Union running costs and employee education costs 9,103 3,187 (2,589 ) 9,701 Post-employment benefits (1) 701 17,106 (17,341 ) 466 Early retirement benefits 763 2 (32 ) 733 Compensation to employees for termination of employment relationship - 30 (30 ) - Others (2) 5,169 19,148 (19,108 ) 5,209 Total 60,661 137,802 (128,459 ) 70,004 The Group had no overdue balance of accrued staff costs as at the end of the reporting period.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 80 38 Accrued staff costs (continued) (1) Post-employment benefits (a) Defined contribution plans Six months ended 30 June 2026 As at 1 January Increased Decreased As at 30 June Basic pension insurance 529 5,480 (5,554 ) 455 Unemployment insurance 63 202 (203 ) 62 Annuity contribution 657 3,074 (3,090 ) 641 Total 1,249 8,756 (8,847 ) 1,158 2025 As at 1 January Increased Decreased As at 31 December Basic pension insurance 345 10,841 (10,657 ) 529 Unemployment insurance 60 388 (385 ) 63 Annuity contribution 791 6,165 (6,299 ) 657 Total 1,196 17,394 (17,341 ) 1,249 There were no contributions into the Group’s basic retirement insurance and annuity scheme that had been forfeited and that could be used to deduct contributions payable by the Group according to the above plans.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 81 38 Accrued staff costs (continued) (1) Post-employment benefits (continued) (b) Defined benefit plans - Supplementary retirement benefits The Group’s obligations in respect of the supplementary retirement benefits as at the end of the reporting period were calculated using the projected unit credit method and reviewed by an external independent actuary, Towers Watson Management Consulting (ShenZhen) Co., Ltd. Present value of defined benefit plan obligations Fair value of plan assets Net assets of defined benefit plans Six months ended 30 June 2026 2025 Six months ended 30 June 2026 2025 Six months ended 30 June 2026 2025 As at 1 January 3,944 4,271 4,727 4,766 (783 ) (495 ) Cost of the net defined benefit liability in profit or loss - Interest costs 33 70 40 79 (7 ) (9 ) Remeasurements of the defined benefit liability in other comprehensive income - Actuarial losses/(gains) 89 (113 ) - - 89 (113 ) - Returns on plan assets - - 233 166 (233 ) (166 ) Other changes - Benefits paid (97 ) (284 ) (97 ) (284 ) - - As at 30 June/31 December 3,969 3,944 4,903 4,727 (934 ) (783 ) Interest cost was recognised in operating expenses.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 82 38 Accrued staff costs (continued) (1) Post-employment benefits (continued) (b) Defined benefit plans - Supplementary retirement benefits (continued) (i) Principal actuarial assumptions of the Group as at the end of the reporting period were as follows: 30 June 2026 31 December 2025 Discount rate 1.75% 1.75% Health care cost increase rate 7.00% 7.00% Average expected future lifetime of eligible employees 9.5 years 9.2 years As at 30 June 2026, mortality assumptions were based on China Life Insurance Mortality Table (2025) (31 Dec 2025: 2010 -2013), which contains publicly available statistical information in China. (ii) The sensitivity analysis of the present value of supplementary retirement benefit obligations to changes in the weighted principal assumption is: Impact on present value of supplementary retirement benefit obligations Increase in assumption by 0.25% Decrease in assumption by 0.25% Discount rate (75 ) 78 Health care cost increase rate 33 (32 ) (iii) As at 30 June 2026, the weighted average duration of supplementary retirement benefit obligations of the Group was 7.7 years (as at 31 December 2025: 7.8 years). (iv) Plan assets of the Group are as follows: 30 June 2026 31 December 2025 Cash and cash equivalents 616 1,414 Equity instruments 917 778 Debt instruments and others 3,370 2,535 Total 4,903 4,727 (2) Accrued staff costs - others mainly include employee welfare, medical insurance, maternity insurance and employment injury insurance.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 83 39 Taxes payable 30 June 2026 31 December 2025 Income tax 16,126 13,425 Value added tax 10,756 14,752 Others 1,752 2,719 Total 28,634 30,896 40 Provisions Note 30 June 2026 31 December 2025 Expected credit losses on the off-balance sheet credit business (1) 23,417 24,674 Expected losses from other businesses (2) 1,146 1,132 Total 24,563 25,806 (1) Movements of the provisions - expected credit losses on the off -balance sheet credit business: Six months ended 30 June 2026 Note Stage 1 Stage 2 Stage 3 Total As at 1 January 2026 19,937 2,664 2,073 24,674 Transfers: Transfers in/(out) to Stage 1 72 (72 ) - - Transfers in/(out) to Stage 2 (12 ) 12 - - Transfers in/(out) to Stage 3 - (14 ) 14 - Newly originated 8,400 - - 8,400 Decreased (7,989 ) (1,679 ) (104 ) (9,772 ) Remeasurements (a) (1,274 ) 1,232 157 115 As at 30 June 2026 19,134 2,143 2,140 23,417
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 84 40 Provisions (continued) (1) Movements of the provisions - expected credit losses on the off -balance sheet credit business: (continued) 2025 Note Stage 1 Stage 2 Stage 3 Total As at 1 January 2025 23,342 4,646 1,782 29,770 Transfers: Transfers in/(out) to Stage 1 92 (92 ) - - Transfers in/(out) to Stage 2 (32 ) 32 - - Transfers in/(out) to Stage 3 - (69 ) 69 - Newly originated 9,626 - - 9,626 Decreased (10,308 ) (3,459 ) (355 ) (14,122 ) Remeasurements (a) (2,783 ) 1,606 577 (600 ) As at 31 December 2025 19,937 2,664 2,073 24,674 (a) Remeasurements comprise the impact of changes in PD, LGD, and EAD; changes in model assumptions and methodologies; changes in allowance for impairment losses due to stage- transfer; and the impact of exchange rate changes, etc. (2) Other businesses include off -balance sheet businesses other than the off -balance sheet credit business, outstanding litigations and the precious metal leasing business.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 85 41 Debt securities issued Note 30 June 2026 31 December 2025 Interbank certificates of deposit issued/Certificates of deposit (1) 1,721,483 1,590,685 Bonds issued (2) 283,836 290,495 Subordinated bonds issued (3) 5,999 11,998 Non-capital TLAC bonds issued (4) 109,995 49,998 Eligible Tier 2 capital bonds issued (5) 698,513 638,904 Accrued interest 15,357 11,444 Total 2,835,183 2,593,524 (1) Interbank certificates of deposit issued/certificates of deposit were mainly issued by the Head Office, overseas branches, CCB New Zealand, CCB Europe and CCBIG.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 86 41 Debt securities issued (continued) (2) Bonds issued Issue date Maturity date Interest rate per annum Issue place Currency 30 June 2026 31 December 2025 16/05/2019 16/05/2029 3.88% Hong Kong USD 1,362 1,406 28/09/2020 28/09/2030 2.55% Hong Kong USD 681 703 22/04/2021 22/04/2026 1.46% Hong Kong USD - 3,843 22/07/2021 22/07/2026 1.80% Hong Kong USD 3,137 3,169 15/09/2021 15/09/2026 1.60% Hong Kong USD 2,385 2,322 29/09/2021 29/09/2026 1.50% Hong Kong USD 4,750 4,891 09/02/2023 09/02/2026 3M New Zealand benchmark interest rate +1.10% New Zealand NZD - 906 22/03/2023 24/03/2026 2.80% The Chinese mainland RMB - 10,000 31/05/2023 31/05/2026 4.50% Hong Kong,United Kingdom and Luxembourg USD - 3,490 02/11/2023 02/11/2026 3M New Zealand benchmark interest rate +1.20% New Zealand NZD 575 604 24/11/2023 24/11/2026 3.80% Luxembourg EUR 773 819 30/11/2023 30/11/2026 3.875% Luxembourg and Hong Kong EUR 2,319 2,458 30/11/2023 30/11/2026 SOFR +0.65% Dubai and Hong Kong USD 4,071 4,192 30/11/2023 30/11/2026 5.00% Hong Kong USD 3,393 3,494 28/02/2024 01/03/2027 2.35% The Chinese mainland RMB 20,000 20,000 28/02/2024 01/03/2029 2.50% The Chinese mainland RMB 10,000 10,000 09/04/2024 11/04/2027 2.44% The Chinese mainland RMB 2,700 2,700 12/06/2024 14/06/2027 2.15% The Chinese mainland RMB 2,800 2,800 09/07/2024 08/07/2027 SOFR +0.60% Hong Kong USD 815 836 16/07/2024 16/07/2027 SOFR +0.55% Hong Kong USD 6,785 6,987
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 87 41 Debt securities issued (continued) (2) Bonds issued (continued) Issue date Maturity date Interest rate per annum Issue place Currency 30 June 2026 31 December 2025 16/07/2024 16/07/2027 2.83% United Kingdom RMB 1,999 2,002 09/09/2024 11/09/2027 2.05% The Chinese mainland RMB 2,398 2,401 23/10/2024 25/10/2027 1.88% The Chinese mainland RMB 20,000 20,000 23/10/2024 25/10/2027 2.08% The Chinese mainland RMB 21,000 21,000 09/01/2025 13/01/2028 1.69% The Chinese mainland RMB 1,200 1,000 23/04/2025 25/04/2028 1.87% The Chinese mainland RMB 1,500 1,200 09/05/2025 09/05/2028 SOFR +0.52% Hong Kong USD 679 697 13/05/2025 13/05/2028 2.335% Luxembourg EUR 773 819 22/05/2025 26/05/2028 1.65% The Chinese mainland RMB 25,000 25,000 22/05/2025 26/05/2030 1.76% The Chinese mainland RMB 5,000 5,000 28/05/2025 28/05/2028 SOFR +0.52% Hong Kong USD 6,785 6,987 28/05/2025 28/05/2030 SOFR +0.60% Hong Kong USD 3,393 3,494 28/05/2025 28/05/2028 1.90% Hong Kong RMB 1,999 2,001 29/05/2025 29/05/2028 1.90% Luxembourg RMB 799 800 10/06/2025 12/06/2028 1.75% The Chinese mainland RMB 1,600 1,600 17/06/2025 16/06/2028 1.87% Luxembourg RMB 999 1,000 27/06/2025 23/06/2028 1.86% Luxembourg RMB 1,199 1,200 03/07/2025 07/07/2028 1.57% The Chinese mainland RMB 20,000 20,000 03/07/2025 07/07/2028 60-day arithmetic average of DR007 plus a fixed spread of 0% The Chinese mainland RMB 10,000 10,000 22/07/2025 24/07/2028 1.75% The Chinese mainland RMB 2,000 2,200 11/09/2025 11/09/2028 1.89% Hong Kong and United Kingdom RMB 1,999 2,002 11/09/2025 11/09/2028 SOFR +0.5% Hong Kong and United Kingdom USD 6,785 6,987 11/09/2025 11/09/2030 SOFR +0.58% Hong Kong and United Kingdom USD 3,393 3,494
Page 179
China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 88 41 Debt securities issued (continued) (2) Bonds issued (continued) Issue date Maturity date Interest rate per annum Issue place Currency 30 June 2026 31 December 2025 17/09/2025 17/09/2028 SOFR +0.62% Hong Kong USD 3,707 4,089 24/09/2025 26/09/2028 1.85% The Chinese mainland RMB 30,000 30,000 04/11/2025 06/11/2028 1.72% The Chinese mainland RMB 24,000 24,000 04/11/2025 06/11/2028 1-year LPR plus a fixed spread of -1.21% The Chinese mainland RMB 6,000 6,000 15/06/2026 15/06/2029 1.64% Hong Kong and United Kingdom RMB 2,999 - 15/06/2026 15/06/2029 SOFR +0.35% Hong Kong and United Kingdom USD 3,393 - 15/06/2026 15/06/2031 SOFR +0.38% Hong Kong and United Kingdom USD 3,393 - 22/06/2026 22/06/2029 SOFR +0.35% Singapore USD 678 - 25/06/2026 25/06/2029 SOFR +0.38% Singapore USD 1,052 - 29/06/2026 28/06/2029 SOFR +0.38% Singapore USD 1,323 - 29/06/2026 29/06/2029 SOFR +0.38% Singapore USD 339 - Total nominal value 283,930 290,593 Less: Unamortised issuance costs (94 ) (98 ) Carrying value 283,836 290,495
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 89 41 Debt securities issued (continued) (3) Subordinated bonds issued The carrying value of the Group’s subordinated bonds issued upon the approval of the PBOC and the NFRA is as follows: Issue date Maturity date Interest rate per annum Currency Note 30 June 2026 31 December 2025 28/01/2021 01/02/2031 4.30% RMB (a) - 6,000 18/03/2022 22/03/2032 3.70% RMB (b) 2,000 2,000 13/09/2023 14/09/2033 3.45% RMB (c) 4,000 4,000 Total nominal value 6,000 12,000 Less: Unamortised issuance cost (1 ) (2 ) Carrying value 5,999 11,998 (a) The Group elected to exercise the option to redeem all the bonds on 1 February 2026. (b) The Group has an option to redeem part or all of the bonds on 22 March 2027, subject to registration from the PBOC and the NFRA. (c) The Group has an option to redeem part or all of the bonds on 14 September 2028, subject to registration from the PBOC and the NFRA.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 90 41 Debt securities issued (continued) (4) Non-capital TLAC bonds issued Issue date Maturity date Interest rate per annum Currency Note 30 June 2026 31 December 2025 08/08/2024 12/08/2028 2.00% RMB (a) 35,000 35,000 08/08/2024 12/08/2030 2.10% RMB (b) 15,000 15,000 25/06/2026 29/06/2030 1.69% RMB (c) 40,000 - 25/06/2026 29/06/2032 1.86% RMB (d) 20,000 - Total nominal value 110,000 50,000 Less: Unamortised issuance cost (5 ) (2 ) Carrying value 109,995 49,998 (a) This bond issuance sets forth the right of the issuer to choose early redemption, and the Group has an option to redeem these bonds on 12 August 2027, subject to regulatory requirements. When the issuer enters the disposal stage, the PBOC and the NFRA may mandate that bonds be partially or fully written down in the current period after all Tier 2 capital instruments have been written down or converted into ordinary shares. (b) This bond issuance sets forth the right of the issuer to choose early redemption, and the Group has an option to redeem these bonds on 12 August 2029, subject to regulatory requirements. When the issuer enters the disposal stage, the PBOC and the NFRA may mandate that bonds be partially or fully written down in the current period after all Tier 2 capital instruments have been written down or converted into ordinary shares. (c) This bond issuance sets forth the right of the issuer to choose early redemption, and the Group has an option to redeem these bonds on 29 June 2029, subject to regulatory requirements. When the issuer enters the disposal stage, the PBOC and the NFRA may mandate that bonds be partially or fully written down in the current period after all Tier 2 capital instruments have been written down or converted into ordinary shares. (d) This bond issuance sets forth the right of the issuer to choose early redemption, and the Group has an option to redeem these bonds on 29 June 2031, subject to regulatory requirements. When the issuer enters the disposal stage, the PBOC and the NFRA may mandate that bonds be partially or fully written down in the current period after all Tier 2 capital instruments have been written down or converted into ordinary shares.
Page 182
China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 91 41 Debt securities issued (continued) (5) Eligible Tier 2 capital bonds issued Issue date Maturity date Interest rate per annum Currency Note 30 June 2026 31 December 2025 06/08/2021 10/08/2031 3.45% RMB (a) 65,000 65,000 06/08/2021 10/08/2036 3.80% RMB (b) 15,000 15,000 05/11/2021 09/11/2031 3.60% RMB (c) 35,000 35,000 05/11/2021 09/11/2036 3.80% RMB (d) 10,000 10,000 10/12/2021 14/12/2031 3.48% RMB (e) 12,000 12,000 10/12/2021 14/12/2036 3.74% RMB (f) 8,000 8,000 13/01/2022 21/01/2032 2.85% USD (g) 13,570 13,975 15/06/2022 17/06/2032 3.45% RMB (h) 45,000 45,000 15/06/2022 17/06/2037 3.65% RMB (i) 15,000 15,000 03/11/2022 07/11/2032 3.00% RMB (j) 25,000 25,000 03/11/2022 07/11/2037 3.34% RMB (k) 15,000 15,000 24/03/2023 28/03/2033 3.49% RMB (l) 5,000 5,000 24/03/2023 28/03/2038 3.61% RMB (m) 15,000 15,000 24/10/2023 26/10/2033 3.45% RMB (n) 45,000 45,000 24/10/2023 26/10/2038 3.53% RMB (o) 15,000 15,000 14/11/2023 16/11/2033 3.30% RMB (p) 25,000 25,000 14/11/2023 16/11/2038 3.42% RMB (q) 15,000 15,000 01/02/2024 05/02/2034 2.75% RMB (r) 20,000 20,000 01/02/2024 05/02/2039 2.82% RMB (s) 30,000 30,000 04/07/2024 08/07/2034 2.21% RMB (t) 40,000 40,000 04/07/2024 08/07/2039 2.37% RMB (u) 10,000 10,000 26/12/2024 30/12/2034 1.96% RMB (v) 35,000 35,000 25/03/2025 27/03/2035 2.07% RMB (w) 40,000 40,000 23/07/2025 25/07/2035 1.94% RMB (x) 40,000 40,000 23/07/2025 25/07/2040 2.13% RMB (y) 5,000 5,000 04/12/2025 08/12/2035 2.24% RMB (z) 40,000 40,000 05/06/2026 09/06/2036 1.89% RMB (aa) 60,000 - Total nominal value 698,570 638,975 Less: Unamortised issuance cost (57 ) (71 ) Carrying value 698,513 638,904
Page 183
China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 92 41 Debt securities issued (continued) (5) Eligible Tier 2 capital bonds issued (continued) (a) The Group has an option to redeem the bonds on 10 August 2026, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (b) The Group has an option to redeem the bonds on 10 August 2031, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (c) The Group has an option to redeem the bonds on 9 November 2026, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (d) The Group has an option to redeem the bonds on 9 November 2031, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (e) The Group has an option to redeem the bonds on 14 December 2026, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full o r in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (f) The Group has an option to redeem the bonds on 14 December 2031, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full o r in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (g) The Group has an option to redeem the bonds on 21 January 2027, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 93 41 Debt securities issued (continued) (5) Eligible Tier 2 capital bonds issued (continued) (h) The Group has an option to redeem the bonds on 17 June 2027, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or i n part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (i) The Group has an option to redeem the bonds on 17 June 2032, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (j) The Group has an option to redeem the bonds on 7 November 2027, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (k) The Group has an option to redeem the bonds on 7 November 2032, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (l) The Group has an option to redeem the bonds on 28 March 2028, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or i n part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (m) The Group has an option to redeem the bonds on 28 March 2033 , subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (n) The Group has an option to redeem the bonds on 26 October 2028 , subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 94 41 Debt securities issued (continued) (5) Eligible Tier 2 capital bonds issued (continued) (o) The Group has an option to redeem the bonds on 26 October 2033 subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (p) The Group has an option to redeem the bonds on 16 November 2028 subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (q) The Group has an option to redeem the bonds on 16 November 2033, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full o r in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (r) The Group has an option to redeem the bonds on 5 February 2029, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (s) The Group has an option to redeem the bonds on 5 February 2034, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (t) The Group has an option to redeem the bonds on 8 July 2029, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (u) The Group has an option to redeem the bonds on 8 July 2034, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 95 41 Debt securities issued (continued) (5) Eligible Tier 2 capital bonds issued (continued) (v) The Group has an option to redeem the bonds on 30 December 2029, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (w) The Group has an option to redeem the bonds on 27 March 2030, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or i n part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (x) The Group has an option to redeem the bonds on 25 July 2030, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (y) The Group has an option to redeem the bonds on 25 July 2035, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (z) The Group has an option to redeem the bonds on 8 December 2030, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (aa) The Group has an option to redeem the bonds on 9 June 2031, subject to agreement from the relevant authority. These eligible Tier 2 capital bonds have the write-down feature of a Tier 2 capital instrument, which allows the Bank to write down in full or in part the principal of the bonds when a regulatory triggering event occurs. The accumulated unpaid interest associated with the portion of bonds written off will not be paid either. (6) For the six months ended 30 June 2026 and for the year ended 31 December 2025, there were no defaults by the Group on principal and interests, nor were there any other defaults related to debt securities issued.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 96 42 Other liabilities Note 30 June 2026 31 December 2025 Insurance related liabilities (1) 308,196 288,165 Clearing and settlement accounts 93,638 85,352 Dividend Payable 53,106 46,822 Lease liabilities (2) 20,788 21,980 Deferred income 13,861 14,857 Payment and collection clearance accounts 11,591 17,955 Accrued expenses advance 9,616 9,207 Dormant accounts 8,430 9,313 Capital expenditure payable 4,843 5,641 Cash pledged and rental prepayments 1,413 1,792 Others 100,691 97,830 Total 626,173 598,914 (1) Insurance related liabilities The total for groups of insurance contracts issued and reinsurance contracts that are liabilities as follows: 30 June 2026 31 December 2025 Insurance contracts issued -Insurance contracts issued not applying the premium allocation approach 305,700 286,325 -Insurance contracts issued applying the premium allocation approach 2,494 1,839 Subtotal 308,194 288,164 Reinsurance contracts held -Reinsurance contracts held not applying the premium allocation approach - - -Reinsurance contracts held applying the premium allocation approach 2 1 Subtotal 2 1 Total 308,196 288,165
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 97 42 Other liabilities (continued) (2) Lease liabilities Maturity analysis - undiscounted cash flows 30 June 2026 31 December 2025 Within one year 5,841 6,338 Between one year and five years 11,858 13,148 More than five years 5,276 6,462 Total undiscounted lease liabilities 22,975 25,948 Lease liabilities 20,788 21,980 43 Share capital Structure of share capital 30 June 2026 31 December 2025 Listed in Hong Kong (H shares) 240,417 240,417 Listed in the Chinese mainland (A shares) 21,183 21,183 Total 261,600 261,600 All H and A shares are ordinary shares, have a par value of RMB 1 per share and rank pari passu with the same rights and benefits.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 98 44 Other equity instruments (1) Preference shares (a) Preference shares outstanding as at the end of the reporting period Financial instrument outstanding Issuance date Classification Year-end dividend rate Issuance price Quantity (million shares) Currency Total amount Maturity date Redemption/ conversion 2017 Domestic Preference Shares 21 December 2017 Equity instruments 3.57% 100 per share 600 RMB 60,000 No maturity date None Less: Issuance fee (23 ) Carrying amount 59,977 (b) The key terms Dividend The nominal dividend rate of the Domestic Preference Shares is adjusted on a phase -by- phase basis. It is the sum of the benchmark rate plus the fixed interest spread, and is adjusted every five years. The fixed interest spread is determined as the nominal dividend rate set for issuance less the benchmark rate at the time of issuance, and will not be subject to future adjustments. The dividends for domestic preference shares are non -cumulative. The Bank has the right to cancel dividend distribution on Domestic Preference Shares, and the cancellation does not constitute a default event. The Bank may, at its discretion, use the cancelled dividends to repay other indebtedness due and payable. If the Bank cancels all or part of the dividends on the Domestic Preference Shares, the Bank shall make no profit distribution to shareholders holding ordinary shares from the day after the cancellation proposal is adopted by the General Shareholders’ Meeting to the day when full distribution of dividends is resumed. The cancellation of dividends on Domestic Preference Shares will not constitute other restrictions to the Bank except for the distribution of dividends to ordinary shareholders. The dividends on the Domestic Preference Shares are distributed annually.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 99 44 Other equity instruments (continued) (1) Preference shares (continued) (b) The key terms (continued) Redemption The Bank may, subject to the NFRA’s approval and compliance with the redemption preconditions, redeem in whole or in part of the Domestic Preference Shares after at least five years from the completion date of the issuance (i.e., 27 December 2017). The redemption period begins from the first day of the redemption and ends on the day when all Domestic Preference Shares are redeemed or converted. The redemption price of the Domestic Preference Shares shall be their issue price plus any dividends accrued but unpaid in the current period. Compulsory conversion of preference shares If an Additional Tier 1 Capital Instrument Trigger Event occurs, i.e., the Common Equity Tier 1 ratio of the Bank has fallen to 5.125% or below, the Bank has the right to, without prior consent from the shareholders of the domestic preference shares and as agreed, convert all or part of the domestic preference shares issued and outstanding to ordinary A shares, to restore the Bank’s Common Equity Tier 1 ratio to above the trigger point (i.e., 5.125%). In the case of partial conversion, the domestic preference shares shall be subject to the same proportion and conditions of conversion. Once domestic preference shares are converted to ordinary A shares, they shall not be converted back to preference shares under any circumstances. When a Tier 2 Capital Instrument Trigger Event occurs, the Bank has the right to, without prior consent of the shareholders of the Domestic Preference Shares and as agreed, convert all the Domestic Preference Shares issued and outstanding to ordinary A sha res. Once Domestic Preference Shares are converted to ordinary A shares, they shall not be converted back to preference shares under any circumstances. A Tier 2 Capital Instrument Trigger Event is the earlier of the following two scenarios: (i) the NFRA ha ving decided that without a conversion or write -off of the Bank’s capital, the Bank would become non - viable; and (ii) the relevant authorities having decided that a public sector injection of capital or equivalent support is necessary, without which the Ba nk would become non - viable. When the compulsory conversion of preference shares occurs, the Bank shall report to the NFRA for approval and decision, and perform the announcement obligation according to the regulations of the Securities Law and China Securities Regulatory Commission (“CSRC”). The Bank classified preference shares issued as an equity instrument and presented as an equity item on the statement of financial position. Capital raised from the issuance of the above preference shares, after deduction of the expenses relating to the is suance, was wholly used to replenish the Bank’s additional tier 1 capital and to increase its capital adequacy ratios.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 100 44 Other equity instruments (continued) (1) Preference shares (continued) (c) Changes in preference shares outstanding 1 January 2026 Increase/(Decrease) 30 June 2026 Financial instrument outstanding Quantity (million shares) Carrying value Quantity (million shares) Carrying value Quantity (million shares) Carrying value 2017 Domestic Preference Shares 600 59,977 - - 600 59,977 Total 600 59,977 - - 600 59,977 (2) Perpetual bonds (a) Perpetual bonds outstanding at the end of the reporting period Financial instrument outstanding Issuance date Classification Year-end interest rate Issuance price Quantity (million units) Currency Total amount Maturity date Redemption/ write-down conditions 2022 Undated Additional Tier 1 Capital Bonds 29 August 2022 Equity instruments 3.20% 100 per unit 400 RMB 40,000 No maturity date None 2023 Undated Additional Tier 1 Capital Bonds (Series 1) 14 July 2023 Equity instruments 3.29% 100 per unit 300 RMB 30,000 No maturity date None 2023 Undated Additional Tier 1 Capital Bonds (Series 2) 22 September 2023 Equity instruments 3.37% 100 per unit 300 RMB 30,000 No maturity date None 2025 Undated Additional Tier 1 Capital Bonds (Series 1) 15 May 2025 Equity instruments 1.99% 100 per unit 400 RMB 40,000 No maturity date None 2026 Undated Additional Tier 1 Capital Bonds (Series 1) 16 June 2026 Equity instruments 1.92% 100 per unit 300 RMB 30,000 No maturity date None Carrying amount 170,000
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 101 44 Other equity instruments (continued) (2) Perpetual bonds (continued) (b) The key terms Distribution rate and distribution payment The distribution rate of the Undated Additional Tier 1 Capital Bonds (or “the Bonds”) will be adjusted at defined intervals, with a distribution rate adjustment period every 5 years since the payment settlement date. In any distribution rate adjusted period, the distribution payments on the Bonds will be made at a prescribed fixed distribution rate. The distribution rate is determined by a benchmark rate plus a fixed interest spread. The Bank shall have the right to cancel, in whole or in part, distributions on the Bonds and any such cancellation shall not constitute an event of default. When exercising such right, the Bank will take into full consideration the interest of the holders of the Bonds. The Bank may, at its sole discretion, use the proceeds from the cancelled distributions to meet other obligations as they fall due. In the case of cancelling any distributions on the Bonds, no matter in whole or in part, the Bank shall not ma ke any distribution to the ordinary shareholders from the next day following the resolution being approved by the general shareholders meeting, until its decision to resume the distribution payments in whole to the holders of the Bonds. The distributions o n the Bonds are non -cumulative, namely, upon cancellation, any amount of distribution unpaid to the holders of the Bonds in the applicable period will not accumulate or compound to the subsequent distribution period thereafter. The distributions of the Bonds will be payable annually. Conditional redemption rights of the Bank From the fifth anniversary since the issuance of the Bonds, the Bank may redeem whole or part of the Bonds on each distribution payment date (including the fifth distribution payment date since the issuance). If, after the issuance, the Bonds no longer qua lify as Additional Tier 1 Capital as a result of an unforeseeable change or amendment to relevant provisions of supervisory regulations, the Bank may redeem the whole but not part of the Bonds. The exercise of the Bank’s redemption right shall be subject to the consent of the NFRA and the satisfaction of the following preconditions: (i) the Bank shall use capital instruments of the same or better quality to replace the instruments to be redeemed, and such replacement shall only be carried out at conditions which are sustainable for the income capacity; (ii) or the capital position of the Bank after the redemption right is exercised will remain well above the regulatory capital requirements stipula ted by the NFRA.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 102 44 Other equity instruments (continued) (2) Perpetual bonds (continued) (b) The key terms (continued) Write-down/write-off clauses Upon the occurrence of a Non -Viability Trigger Event , the Bank has the right to write down/write off in whole or in part, without the need for consent of the holders of the Bonds, the principal amount of the Bonds. The amount of the write -down/write-off shall be determined by the ratio of the outstanding principal amount of the Undated Additional Tier 1 Capital Bonds to the aggregate principal amount of all additional tier 1 capital instruments with the identical Trigger Event. A Non -Viability Trigger Event refers to the earlier of the following events: (i) the NFRA having decided that the Bank would become non-viable without a write-down/write-off; (ii) any relevant authority having decided that a public sector injection of capital or equivalent support is necessary, without which the Bank would become non-viable. The write-down/write-off will not be restored. Subordination The claims in respect of the Bonds will be subordinated to the claims of depositors, general creditors, and subordinated indebtedness that ranks senior to the Bonds; will rank in priority to all classes of shares held by the Bank’s shareholders and rank pa ri passu with the claims in respect of any other additional tier 1 capital instruments of the Bank that rank pari passu with the Bonds. The Bank classified the Bonds issued as an equity instrument and presented as an equity item on the statement of financial position. Capital raised from the issuance of the Bonds, after deduction of the expenses relating to the issuance, was wholly used to replenish the Bank’s additional tier 1 capital and to increase its capital adequacy ratios.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 103 44 Other equity instruments (continued) (2) Perpetual bonds (continued) (c) Changes in perpetual bonds outstanding 1 January 2026 Increase/(Decrease) 30 June 2026 Financial instrument outstanding Quantity (million units) Carrying value Quantity (million units) Carrying value Quantity (million units) Carrying value 2022 Undated Additional Tier 1 Capital Bonds 400 40,000 - - 400 40,000 2023 Undated Additional Tier 1 Capital Bonds (Series 1) 300 30,000 - - 300 30,000 2023 Undated Additional Tier 1 Capital Bonds (Series 2) 300 30,000 - - 300 30,000 2025 Undated Additional Tier 1 Capital Bonds (Series 1) 400 40,000 - - 400 40,000 2026 Undated Additional Tier 1 Capital Bonds (Series 1) - - 300 30,000 300 30,000 Total 1,400 140,000 300 30,000 1,700 170,000 (3) Interests attributable to the holders of equity instruments Items 30 June 2026 31 December 2025 1. Total equity attributable to equity holders of the Bank 3,810,182 3,663,411 (1) Equity attributable to ordinary equity holders of the Bank 3,580,205 3,463,434 (2) Equity attributable to other equity holders of the Bank 229,977 199,977 Of which: net profit 796 5,420 dividends received 796 5,420 2. Total equity attributable to non-controlling interests 23,644 22,666 (1) Equity attributable to non-controlling interests of ordinary shares 21,645 20,667 (2) Equity attributable to non-controlling interests of other equity instruments 1,999 1,999 45 Capital reserve 30 June 2026 31 December 2025 Share premium and others 229,317 229,113
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 104 46 Other comprehensive income Other comprehensive income of the statement of financial position Other comprehensive income of the statement of comprehensive income Six months ended 30 June 2026 1 January 2026 Net-of-tax amount attributable to equity shareholders of the Bank Other comprehensive income transferred to retained earnings 30 June 2026 The amount before Income taxes Less: Reclassification adjustments included in profit or loss due to disposals Less: Related income tax impact Net-of-tax amount attributable to equity shareholders of the Bank Net-of-tax amount attributable to non-controlling interests (1)Other comprehensive income that will not be reclassified to profit or loss Remeasurements of post-employment benefit obligations 104 144 - 248 144 - - 144 - Fair value changes of equity instruments designated as measured at fair value through other comprehensive income 8,266 (2,657 ) 49 5,658 (4,664 ) - 1,226 (2,657 ) (781 ) Other comprehensive income under the equity method that cannot be reclassified to profit or loss - (30 ) (8 ) (38 ) (95 ) - - (30 ) (65 ) Others 881 4 - 885 4 - - 4 - (2)Other comprehensive income that may be reclassified subsequently to profit or loss Fair value changes of debt instruments measured at fair value through other comprehensive income 17,231 12,815 - 30,046 20,175 (1,979 ) (4,656 ) 12,815 725 Allowances for credit losses of debt instruments measured at fair value through other comprehensive income 5,505 153 - 5,658 314 - (79 ) 153 82 Net gain/(loss) on cash flow hedges 734 (280 ) - 454 (280 ) - - (280 ) - Exchange difference on translating foreign operations (2,036 ) (8,194 ) - (10,230 ) (8,318 ) - - (8,194 ) (124 ) Others (10,119 ) (871 ) - (10,990 ) (2,276 ) - 569 (871 ) (836 ) Total 20,566 1,084 41 21,691 5,004 (1,979 ) (2,940 ) 1,084 (999 )
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 105 46 Other comprehensive income (continued) Other comprehensive income of the statement of financial position Other comprehensive income of the statement of comprehensive income 2025 1 January 2025 Net-of-tax amount attributable to equity shareholders of the Bank Other comprehensive income transferred to retained earnings 31 December 2025 The amount before Income taxes Less: Reclassification adjustments included in profit or loss due to disposals Less: Related income tax impact Net-of-tax amount attributable to equity shareholders of the Bank Net-of-tax amount attributable to non-controlling interests (1)Other comprehensive income that will not be reclassified to profit or loss Remeasurements of post-employment benefit obligations (175 ) 279 - 104 279 - - 279 - Fair value changes of equity instruments designated as measured at fair value through other comprehensive income 8,719 (349 ) (104 ) 8,266 306 - (89 ) (349 ) 566 Others 865 16 - 881 16 - - 16 - (2)Other comprehensive income that may be reclassified subsequently to profit or loss Fair value changes of debt instruments measured at fair value through other comprehensive income 54,107 (36,876 ) - 17,231 (40,406 ) (11,441 ) 12,591 (36,876 ) (2,380 ) Allowances for credit losses of debt instruments measured at fair value through other comprehensive income 4,378 1,127 - 5,505 1,509 - (377 ) 1,127 5 Net gain/(loss) on cash flow hedges 806 (72 ) - 734 (72 ) - - (72 ) - Exchange difference on translating foreign operations 1,786 (3,822 ) - (2,036 ) (3,932 ) - - (3,822 ) (110 ) Others (12,585 ) 2,466 - (10,119 ) 6,447 - (1,612 ) 2,466 2,369 Total 57,901 (37,231 ) (104 ) 20,566 (35,853 ) (11,441 ) 10,513 (37,231 ) 450
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 106 47 Surplus reserve Surplus reserves consist of statutory surplus reserve fund and discretionary surplus reserve fund. The Bank is required to allocate 10% of its net profit, as determined under the Accounting Standards for Business Enterprises and other relevant requirements issued by the MOF on 15 February 2006. After making appropriations to the statutory surplus reserv e fund, the Bank may also allocate its net profit to the discretionary surplus reserve fund upon approval by shareholders in shareholders’ general meeting. 48 General reserve The general reserves of the Group are set up based on the requirements of: Note 30 June 2026 31 December 2025 MOF (1) 572,402 572,402 Hong Kong Banking Ordinance (2) 2,124 2,124 Other regulatory bodies in the Chinese mainland (3) 12,010 11,783 Other overseas regulatory bodies 749 742 Total 587,285 587,051 (1) Pursuant to relevant regulations issued by the MOF, the Bank has to appropriate a certain amount of its net profit as general reserves to cover potential losses against its assets. In accordance with the “ Regulation on Management of Financial Institutions for Reserves ” (Cai Jin [2012] No. 20) issued by the MOF on 30 March 2012, the general reserves balance for financial institutions should not be lower than 1.5% of the ending balance of risk assets. (2) Pursuant to the requirements of the Hong Kong Banking Ordinance, the Group’s banking operations in Hong Kong are required to set aside amounts in a regulatory reserve in respect of losses which it will, or may, incur on loans and advances to customers, in addition to impairment losses recognised in accordance with the accounting policies of the Group. Transfers to and from the regulatory reserve are made through retained earnings. (3) Pursuant to the relevant regulatory requirements in the Chinese mainland, the Bank’s subsidiaries are required to appropriate a certain amount of its net profit as general reserves.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 107 49 Profit distribution In the 2025 annual shareholders’ meeting held on 26 June 2026, the shareholders approved the profit distribution plan for 2025. The cash dividend for the year totalled RMB101,684 million. After deducting the interim dividend of RMB48,605 million, the Bank proposed to all ordinary shareholders a final cash dividend for 2025 in an aggregate amount of RMB53,079 million. On 19 May 2026, according to the initial annual interest rate of 1.99% before the first interest rate reset date determined by the terms of the 2025 Undated Additional Tier 1 Capital Bonds (Series 1), the interest on perpetual bonds issued by the Bank was RMB796 million. On 28 August 2026, the Board of Directors proposed a cash dividend of RMB2.010 per ten shares (including taxes) with an aggregate amount of RMB52,582 million to all ordinary shareholders for the 2026 interim profit distribution. The proposal will be submitted to the shareholders’ meeting for deliberation in the second half of 2026. Proposed dividends as at the end of the reporting period were not recognised as a liability. The above proposed profit distribution scheme is subject to the approval of the shareholders in the shareholders’ meeting, after which cash dividends will be dis tributed to all shareholders registered at the relevant date.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 108 50 Notes to the statement of cash flows Cash and cash equivalents 30 June 2026 31 December 2025 30 June 2025 Cash 46,589 48,588 47,703 Surplus deposit reserves with central banks 226,448 734,336 741,804 Demand deposits with banks and non-bank financial institutions 105,579 95,385 101,790 Time deposits with banks and non-bank financial institutions with original maturity with or within three months 58,304 30,814 44,775 Placements with banks and non- bank financial institutions with original maturity with or within three months 170,554 152,721 136,871 Total 607,474 1,061,844 1,072,943
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 109 51 Transfer of financial assets The Group enters into transactions in the normal course of business by which it transfers recognised financial assets to third parties or to structured entities. In some cases where these transferred financial assets qualify for derecognition, the transfer s 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 co ntinued to recognise the transferred assets. Repurchase and Securities lending transactions The financial assets that have not been derecognised but have been transferred consist mainly of securities that have been delivered to counterparties as collateral in repurchase transactions and securities lent out in securities lending transactions. Coun terparties are allowed to sell or repledge those securities in the absence of any default in transactions with the Group, but at the same time, they have an obligation to return such securities to the Group upon maturity of the contract. The Group has dete rmined that it retains substantially all the risks and rewards of these securities and therefore has not derecognised them. As at 30 June 2026 , the carrying amounts of the Group’s securities serving as collaterals under repurchase agreements and debt securities lent to counterparties was RMB1,486,440 million (as at 31 December 2025: RMB1,460,885 million). Credit asset securitisation transactions The Group enters into securitisation transactions in its normal course of business by which it transfers credit assets to structured entities which issue asset -backed securities to investors. The Group may retain interests in the form of holding subordinat ed tranches which would give rise to the Group’s continuing involvement in the transferred assets. Those financial assets are recognised on the statement of financial position to the extent of the Group’s continuing involvement, otherwise the financial assets are derecognised. As at 30 June 2026, loans with an original carrying amount of RMB68,905 million (as at 31 December 2025 : RMB68,905 million) have been securitised by the Group under arrangements in which the Group retained a continuing involvement in such assets. As at 30 June 2026 , the carrying amount of assets that the Group continued to recognise was RMB341 million (as at 31 December 2025 : RMB379 million). As at 30 June 2026 , the carrying amount of continuing involvement assets and liabilities that the Group continued to recognise was RMB341 million (as at 31 December 2025: RMB379 million). With respect to credit asset securitisations that did not qualify for derecognition as a whole, the Group continued to recognise credit assets that had been transferred, and recorded the consideration received as a financial liability. As at 30 June 2026, the carrying amount of transferred credit assets that the Group had continued to recognise was RMB21,319 million (as at 31 December 2025: RMB20,936 million) and the carrying amount of their associated financial liabilities was RMB21,178 million (as at 31 December 2025 : RMB13,717 million). As at 30 June 2026, the carrying amount of asset-backed securities held in the securitisation transaction derecognised by the Group was RMB1,238 million (as at 31 December 2025: RMB1,139 million), and its maximum loss exposure approximates to the carrying amount.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 110 52 Operating segments The Group has presented the operating segments in a manner consistent with the way in which information is reported internally to the Group's chief operating decision makers for the purposes of resource allocation and performance assessment. Measurement of segment assets and liabilities and segment income and results is based on the Group’s accounting policies. Transactions between segments are conducted under normal commercial terms and conditions. Internal charges and transfer prices are determined with reference to market rates and have been reflected in the performance of each segment. Net interest income and expense arising from internal charges and transfer pricing adjustments are referred to as “Internal net interest income/expense”. Interest income and expense earned from third parties are referred to as “External net interest income/expense”. Segment revenues, results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Segment income and results are determined before intra -group transactions are eliminated as par t of the consolidation process. Segment capital expenditure is the total cost incurred during the period to acquire fixed assets, intangible assets and other long-term assets. (1) Geographical segments The Group operates principally in the Chinese mainland with branches covering all provinces, autonomous regions and municipalities directly under the central government, and several subsidiaries located in the Chinese mainland. The Group also has bank branch operations in Hong Kong, Macau, Taiwan, Singapore, Frankfurt, Johannesburg, Tokyo, Seoul, New York, Sydney, Ho Chi Minh City, Luxembourg, Toronto, London, Zurich, Dubai, Chile, Astana, Labuan, Auckland, etc., and certain subsidiaries operating in Hong Kong, Moscow, Luxembourg, British Virgin Islands, Auckland, Jakarta, San Paulo and Kuala Lumpur, etc. In presenting information on the basis of geographical segments, operating income is allocated based on the location of the branches and subsidiaries that generate the income. Segment assets, liabilities and capital expenditure are allocated based on their geographical location.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 111 52 Operating segments (continued) (1) Geographical segments (continued) Geographical segments of the Group, for management reporting purposes, are defined as follows: - “Yangtze River Delta” refers to the following areas where the tier-1 branches and the subsidiaries of the Bank operate: Shanghai Municipality, Jiangsu Province, Zhejiang Province, City of Ningbo and City of Suzhou; - “Pearl River Delta” refers to the following areas where the tier -1 branches and the subsidiary of the Bank operate: Guangdong Province, City of Shenzhen, Fujian Province and City of Xiamen; - “Bohai Rim” refers to the following areas where the tier -1 branches and the subsidiaries of the Bank operate: Beijing Municipality, Shandong Province, Tianjin Municipality, Hebei Province and City of Qingdao; - the “Central” region refers to the following areas where the tier -1 branches and the subsidiary of the Bank operate: Shanxi Province, Hubei Province, Henan Province, Hunan Province, Jiangxi Province, Hainan Province and Anhui Province; - the “Western” region refers to the following areas where the tier -1 branches of the Bank operate: Sichuan Province, Chongqing Municipality, Guizhou Province, Yunnan Province, Tibet Autonomous Region, Inner Mongolia Autonomous Region, Shaanxi Province, Gansu Province, Qinghai Province, Ningxia Autonomous Region, Guangxi Autonomous Region and Xinjiang Autonomous Region; and - the “Northeastern” region refers to the following areas where the tier -1 branches of the Bank operate: Liaoning Province, Jilin Province, Heilongjiang Province and City of Dalian.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 112 52 Operating segments (continued) (1) Geographical segments (continued) Six months ended 30 June 2026 Yangtze River Delta Pearl River Delta Bohai Rim Central Western Northeastern Head Office Overseas Total External net interest income/(expense) 38,694 23,548 16,969 30,252 38,852 (1,083 ) 153,936 9,790 310,958 Internal net interest income/(expense) 18,495 18,738 34,808 22,213 17,922 13,948 (125,078 ) (1,046 ) - Net interest income 57,189 42,286 51,777 52,465 56,774 12,865 28,858 8,744 310,958 Net fee and commission income 12,713 9,985 11,116 9,386 7,207 1,633 10,619 1,630 64,289 Net trading gain/(loss) 32 (1 ) 15 (249 ) (33 ) (36 ) 3,256 624 3,608 Dividend income 528 - 1,089 144 110 - 101 34 2,006 Net gain/(loss) arising from investment securities 3,897 (708 ) 6,630 (16 ) (494 ) (234 ) 5,450 5,642 20,167 Net gain on derecognition of financial assets measured at amortised cost 1 169 - - 1 - 18,058 92 18,321 Other operating (expense)/income, net (2,765 ) 414 1,152 577 530 273 5,318 1,485 6,984 Operating income 71,595 52,145 71,779 62,307 64,095 14,501 71,660 18,251 426,333 Operating expenses (19,889 ) (12,771 ) (17,042 ) (16,862 ) (17,451 ) (6,091 ) (5,589 ) (3,265 ) (98,960 ) Credit impairment losses (21,190 ) (18,100 ) (16,736 ) (21,580 ) (30,577 ) (5,397 ) (16,755 ) 307 (130,028 ) Other impairment losses - - (2 ) - - - - - (2 ) Share of profits/(losses) of associates and joint ventures 540 19 (165 ) (132 ) - - 145 230 637 Profit before tax 31,056 21,293 37,834 23,733 16,067 3,013 49,461 15,523 197,980 Capital expenditure 350 195 788 291 328 151 976 6,620 9,699 Depreciation and amortisation 1,919 1,424 2,932 1,643 1,721 688 1,689 1,713 13,729 30 June 2026 Segment assets 8,127,914 5,682,379 9,634,156 6,543,023 6,639,294 2,280,341 16,929,100 1,911,016 57,747,223 Long-term equity investments 4,294 1,505 9,767 3,136 - - 5,075 1,962 25,739 8,132,208 5,683,884 9,643,923 6,546,159 6,639,294 2,280,341 16,934,175 1,912,978 57,772,962 Deferred tax assets 145,190 Elimination (10,589,908 ) Total assets 47,328,244 Segment liabilities 8,028,093 5,602,971 9,347,482 6,441,831 6,572,042 2,262,428 14,092,265 1,733,936 54,081,048 Deferred tax liabilities 3,278 Elimination (10,589,908 ) Total liabilities 43,494,418 Off-balance sheet credit commitments 849,696 679,683 778,571 820,366 652,983 215,353 - 312,120 4,308,772
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 113 52 Operating segments (continued) (1) Geographical segments (continued) Six months ended 30 June 2025 Yangtze River Delta Pearl River Delta Bohai Rim Central Western Northeastern Head Office Overseas Total External net interest income/(expense) 35,419 23,050 14,364 25,699 35,024 (2,492 ) 148,538 7,107 286,709 Internal net interest income/(expense) 13,940 15,333 31,335 20,028 14,274 14,062 (107,430 ) (1,542 ) - Net interest income 49,359 38,383 45,699 45,727 49,298 11,570 41,108 5,565 286,709 Net fee and commission income 13,577 10,782 10,681 8,887 7,124 1,748 11,182 1,237 65,218 Net trading (loss)/gain (90 ) (65 ) (126 ) - (65 ) (34 ) 1,398 836 1,854 Dividend income 519 - 1,738 231 88 5 34 33 2,648 Net gain/(loss) arising from investment securities 2,100 (640 ) 281 (780 ) (280 ) (179 ) 11,400 (211 ) 11,691 Net gain/(loss) on derecognition of financial assets measured at amortised cost 1 206 - - - (2 ) 9,046 149 9,400 Other operating (expense)/income, net (1,612 ) 422 871 284 329 119 2,317 5,655 8,385 Operating income 63,854 49,088 59,144 54,349 56,494 13,227 76,485 13,264 385,905 Operating expenses (17,216 ) (11,540 ) (15,343 ) (14,893 ) (15,359 ) (5,387 ) (12,433 ) (3,332 ) (95,503 ) Credit impairment losses (13,523 ) (19,342 ) (17,013 ) (25,644 ) (24,830 ) (120 ) (6,422 ) (758 ) (107,652 ) Other impairment losses - - 19 (29 ) - - - - (10 ) Share of (losses)/profits of associates and joint ventures (67 ) (3 ) (248 ) (15 ) - - 16 18 (299 ) Profit before tax 33,048 18,203 26,559 13,768 16,305 7,720 57,646 9,192 182,441 Capital expenditure 325 124 1,013 300 357 105 443 5,597 8,264 Depreciation and amortisation 2,017 1,504 3,321 1,733 1,801 710 2,195 1,487 14,768 31 December 2025 Segment assets 7,726,049 5,474,045 8,935,172 6,238,131 6,417,098 2,190,314 16,771,847 1,878,678 55,631,334 Long-term equity investments 3,961 1,476 10,860 3,391 - - 4,930 3,163 27,781 7,730,010 5,475,521 8,946,032 6,241,522 6,417,098 2,190,314 16,776,777 1,881,841 55,659,115 Deferred tax assets 139,747 Elimination (10,167,044 ) Total assets 45,631,818 Segment liabilities 7,660,429 5,417,298 8,667,925 6,169,431 6,373,431 2,177,813 13,907,876 1,736,006 52,110,209 Deferred tax liabilities 2,576 Elimination (10,167,044 ) Total liabilities 41,945,741 Off-balance sheet credit commitments 808,593 687,582 741,485 805,411 623,206 208,633 - 320,951 4,195,861
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 114 52 Operating segments (continued) (2) Business segments Business segments, as defined for management reporting purposes, are as follows: Corporate finance business This segment represents the provision of a range of financial products and services to corporations and institutions. The products and services include corporate deposits and loans, investment banking, settlement and cash management. Personal finance business This segment represents the provision of a range of financial products and services to individual customers. The products and services comprise personal deposits and loans, and personal payment. Treasury and asset management business This segment covers financial markets business, asset management business, interbank business, and asset custody business. Others This segment covers revenues, results, assets and liabilities that cannot be directly attributable or reasonably allocated to any of the above segments. Specifically, starting from the preparation of 2026 financial statements for the six months ended 30 June 2026, the Group has reclassified business segments of certain businesses of the Bank for the purpose of internal management and adjusted comparative f igures of the prior period accordingly.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 115 52 Operating segments (continued) (2) Business segments (continued) Six months ended 30 June 2026 Corporate finance business Personal finance business Treasury and asset management business Others Total External net interest income 163,932 36,607 100,202 10,217 310,958 Internal net interest (expense)/income (19,093 ) 109,047 (88,203 ) (1,751 ) - Net interest income 144,839 145,654 11,999 8,466 310,958 Net fee and commission income 22,438 28,367 12,971 513 64,289 Net trading gain/(loss) 78 (109 ) 2,379 1,260 3,608 Dividend income 1,118 523 143 222 2,006 Net gain/(loss) arising from investment securities 9,479 4,184 6,584 (80 ) 20,167 Net gain on derecognition of financial assets measured at amortised cost 2 - 18,227 92 18,321 Other operating income/(expense), net 700 (1,166 ) 5,653 1,797 6,984 Operating income 178,654 177,453 57,956 12,270 426,333 Operating expenses (39,151 ) (49,648 ) (6,222 ) (3,939 ) (98,960 ) Credit impairment losses (64,455 ) (61,124 ) (3,409 ) (1,040 ) (130,028 ) Other impairment losses - - (2 ) - (2 ) Share of profits/(losses) of associates and joint ventures 75 541 (116 ) 137 637 Profit before tax 75,123 67,222 48,207 7,428 197,980 Capital expenditure 1,393 1,494 184 6,628 9,699 Depreciation and amortisation 4,930 6,438 707 1,654 13,729 30 June 2026 Segment assets 18,747,632 9,328,681 17,268,700 2,038,386 47,383,399 Long-term equity investments 10,093 4,177 5,109 6,360 25,739 18,757,725 9,332,858 17,273,809 2,044,746 47,409,138 Deferred tax assets 145,190 Elimination (226,084 ) Total assets 47,328,244 Segment liabilities 12,632,739 19,439,678 9,856,284 1,788,523 43,717,224 Deferred tax liabilities 3,278 Elimination (226,084 ) Total liabilities 43,494,418 Off-balance sheet credit commitments 2,855,184 1,141,468 - 312,120 4,308,772
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 116 52 Operating segments (continued) (2) Business segments (continued) Six months ended 30 June 2025 Corporate finance business Personal finance business Treasury and asset management business Others Total External net interest income 150,735 30,998 97,107 7,869 286,709 Internal net interest (expense)/income (27,702 ) 105,520 (76,002 ) (1,816 ) - Net interest income 123,033 136,518 21,105 6,053 286,709 Net fee and commission income 23,370 27,193 14,616 39 65,218 Net trading gain/(loss) 30 (40 ) 1,020 844 1,854 Dividend income 1,738 514 262 134 2,648 Net (loss)/gain arising from investment securities (800 ) 1,650 11,004 (163 ) 11,691 Net (loss)/gain on derecognition of financial assets measured at amortised cost (1 ) - 9,252 149 9,400 Other operating income/(expense), net 596 (1,147 ) 2,566 6,370 8,385 Operating income 147,966 164,688 59,825 13,426 385,905 Operating expenses (37,320 ) (47,342 ) (6,311 ) (4,530 ) (95,503 ) Credit impairment losses (57,857 ) (48,854 ) 1,090 (2,031 ) (107,652 ) Other impairment losses 21 - (31 ) - (10 ) Share of (losses)/profits of associates and joint ventures (240 ) (64 ) (21 ) 26 (299 ) Profit before tax 52,570 68,428 54,552 6,891 182,441 Capital expenditure 1,092 1,081 522 5,569 8,264 Depreciation and amortisation 5,487 6,876 881 1,524 14,768 31 December 2025 Segment assets 17,328,650 9,305,658 17,051,767 2,003,254 45,689,329 Long-term equity investments 11,159 3,851 5,337 7,434 27,781 17,339,809 9,309,509 17,057,104 2,010,688 45,717,110 Deferred tax assets 139,747 Elimination (225,039 ) Total assets 45,631,818 Segment liabilities 12,277,484 18,807,760 9,283,194 1,799,766 42,168,204 Deferred tax liabilities 2,576 Elimination (225,039 ) Total liabilities 41,945,741 Off-balance sheet credit commitments 2,735,866 1,139,044 - 320,951 4,195,861
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 117 53 Entrusted lending business As at the end of the reporting period, the entrusted loans and entrusted funds were as follows: 30 June 2026 31 December 2025 Entrusted loans 4,898,343 4,802,787 Entrusted funds 4,898,343 4,802,787 54 Pledged assets (1) Assets pledged as securities The Group’s collateral for liabilities or contingent liabilities include financial assets such as securities and bills, which mainly serve as collateral for repurchase agreements, derivative contracts and local statutory requirements. As at 30 June 2026 , the carrying values of the Group’s financial assets pledged as collateral amounted to approximately RMB3,844,669 million (as at 31 December 2025: RMB3,305,874 million). (2) Collateral accepted as securities for assets As part of the resale agreements, the Group has received securities that were allowed to be sold or repledged in the absence of default by their owners. As at 30 June 2026, the Group has received securities with a fair value of RMB14,504 million on such terms (as at 31 December 2025: RMB26,385 million).
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 118 55 Commitments and contingent liabilities (1) Credit commitments Credit commitments take the form of undrawn loan facilities which are approved and contracted, unutilised credit card limits, financial guarantees, letters of credit, etc. The Group assesses and makes provisions for any probable losses accordingly. The contractual amounts of loan commitments and credit card overdraft commitments represent the cash outflows should the contracts be fully drawn upon. The amounts of guarantees and letters of credit represent the maximum potential loss that would be recognised if counterparties failed completely to perform as contracted. Acceptances comprise undertakings by the Group to pay bills of exchange drawn on customers. As credit commitments may expire without being drawn upon, the contractual amounts set out in the following table do not represent the expected future cash outflows. 30 June 2026 31 December 2025 Loan commitments - with an original maturity within one year 144,061 143,553 - with an original maturity of one year or over 455,255 428,870 Credit card commitments 1,167,933 1,168,634 1,767,249 1,741,057 Bank acceptances 663,006 718,844 Financing guarantees 32,986 35,174 Non-financing guarantees 1,354,007 1,326,074 Sight letters of credit 55,349 41,436 Usance letters of credit 389,055 301,471 Others 47,120 31,805 Total 4,308,772 4,195,861
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 119 55 Commitments and contingent liabilities (continued) (2) Credit risk-weighted asset amount The credit risk-weighted asset amount refers to the amount as computed in accordance with the rules set out by the NFRA and depends on the status of the counterparty and the maturity characteristics. 30 June 2026 31 December 2025 Credit risk-weighted asset amount of contingent liabilities and commitments 1,378,502 1,349,220 (3) Capital commitments As at 30 June 2026 , the Group’s contracted for but not disbursed capital commitments amounted to RMB4,092 million (as at 31 December 2025: RMB4,725 million). (4) Underwriting obligations As at 30 June 2026, there was no unexpired underwriting commitment of the Group (as at 31 December 2025: Nil). (5) Government bond redemption obligations As an underwriting agent of PRC government bonds, the Group has the responsibility to buy back those bonds sold by it should the holders decide to early redeem the bonds held. The redemption price for the bonds at any time before their maturity date is bas ed on the coupon value plus any interest unpaid and accrued up to the redemption date. Accrued interest payables to the bond holders are calculated in accordance with relevant rules of the MOF and the PBOC. The redemption price may be different from the fair value of similar instruments traded at the redemption date. 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 RMB52,830 million (as at 31 December 2025: RMB50,267 million).
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 120 55 Commitments and contingent liabilities (continued) (6) Outstanding litigations and disputes As at 30 June 2026, the Group was the defendant in certain pending litigations and disputes with gross claims of RMB14,860 million (as at 31 December 2025: RMB15,560 million). Provisions have been made for the estimated losses arising from such litigations based upon the opinions of the Group’s internal and external legal counsels (Note 40). (7) Contingent liabilities The Group assessed and made provisions for any probable outflow of economic benefits in relation to the commitments and contingent liabilities in accordance with their accounting policies.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 121 56 Related party relationships and transactions (1) Transactions with parent companies and their affiliates The immediate and ultimate parents of the Group are Huijin and CIC, respectively. As approved by the State Council, CIC was established on 29 September 2007 with registered capital of RMB1,550,000 million. Huijin was incorporated on 16 December 2003 as a wholly -state-owned investment company. It was registered in Beijing with registered capital of RMB828,209 million. As a wholly-owned subsidiary of CIC, Huijin makes equity investment in key state -owned financial institutions as authorised by the State Council, and exercises the contributor's rights and obligations in key state -owned financial institutions up to its c ontribution amount on behalf of the State to achieve preservation and appreciation of state -owned financial assets. Huijin does not engage in any other commercial business activities, nor does it interfere with daily operations of the key state-owned financial institutions of which it is the controlling shareholder. As at 30 June 2026, Huijin directly held 54.61% of shares of the Bank. Affiliates of parent companies include the subsidiaries under parent companies and other associates and joint ventures. The Group’s transactions with parent companies and their affiliates mainly include deposit taking, lending, purchase and sale of debt securities, money market transactions and inter- bank clearing. These transactions are priced based on market prices and co nducted under normal commercial terms. The Group has issued subordinated debts with a nominal value of RMB6,000 million (as at 31 December 2025 : RMB12,000 million). These are bearer bonds and tradable in the secondary market. The Group had no information in respect of the amount of the bonds held by the affiliates of parent companies as at the end of the reporting period. In the ordinary course of business, the material transactions that the Group entered into with parent companies and their affiliates are as follows: Amounts Six months ended 30 June 2026 2025 Note Amount Ratio to similar transactions Amount Ratio to similar transactions Interest income 8,897 1.54% 10,997 1.90% Interest expense 12,113 4.55% 3,653 1.25% Fee and commission income 66 0.09% 57 0.08% Fee and commission expense - - 3 0.05% Net trading gain 691 19.15% 629 33.93% Net gain arising from investment securities 947 4.70% 1,882 16.10% Other operating income - - 309 1.75% Operating expenses (i) 303 0.31% 242 0.25%
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 122 56 Related party relationships and transactions (continued) (1) Transactions with parent companies and their affiliates (continued) Balances outstanding as at the end of the reporting period 30 June 2026 31 December 2025 Note Balance Ratio to similar transactions Balance Ratio to similar transactions Deposits with banks and non- bank financial institutions 46,053 22.69% 30,349 15.92% Placements with banks and non-bank financial institutions 323,094 39.70% 186,467 22.74% Positive fair value of derivatives 9,712 12.98% 4,569 9.27% Financial assets held under resale agreements 29,740 12.00% 39,451 4.60% Loans and advances to customers 182,819 0.64% 134,485 0.50% Financial investments Financial assets measured at fair value through profit or loss 225,154 24.46% 225,094 25.73% Financial assets measured at amortised cost 211,202 2.46% 215,762 2.79% Financial assets measured at fair value through other comprehensive income 371,198 8.29% 484,568 11.31% Other assets 251 0.07% 3,382 1.17% Deposits from banks and non-bank financial institutions (ii) 254,525 5.93% 494,588 11.54% Placements from banks and non-bank financial institutions 208,948 43.33% 203,567 40.72% Negative fair value of derivatives 5,946 13.10% 6,384 7.11% Financial assets sold under repurchase agreements 550 0.04% 8,781 0.59% Deposits from customers 277,745 0.87% 348,435 1.13% Other liabilities 2,162 0.35% 75,503 12.61% Credit commitments 90,937 2.11% 16,702 0.40% (i) Operating expenses mainly represent fees for related services provided by the affiliates of parent companies. (ii) Deposits from the affiliates of parent companies are unsecured and are repayable under normal commercial terms.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 123 56 Related party relationships and transactions (continued) (2) Transactions with the MOF In 2025, the Bank issued ordinary A shares to the MOF and completed the share registration on 24 June 2025. The MOF is a national administrative authority responsible for fiscal revenue and expenditure, tax policies, and related matters. As at 30 June 2026, the MOF directly held 4.43% of the Bank’s shares. The Group’s transactions with the MOF primarily involve holding government bonds issued by the MOF. These transactions are priced based on market prices and conducted under normal commercial terms. In the ordinary course of business, the material transactions that the Group entered into with the MOF are as follows: Amounts Six months ended 30 June 2026 From 24 June to 30 June 2025 Amount Ratio to similar transactions Amount Ratio to similar transactions Interest income 38,197 6.62% 1,176 0.20% Interest expense 2 0.00% - - Fee and commission income 86 0.12% - - Net trading gain 145 4.02% 7 0.38% Balances outstanding as at the end of the reporting period 30 June 2026 31 December 2025 Balance Ratio to similar transactions Balance Ratio to similar transactions Financial investments Financial assets measured at fair value through profit or loss 20,547 2.23% 17,050 1.95% Financial assets measured at amortised cost 1,940,807 22.59% 1,512,632 19.54% Financial assets measured at fair value through other comprehensive income 1,740,704 38.88% 1,637,989 38.25% Deposits from customers 204 0.00% 112 0.00% Other liabilities - - 2,153 0.36%
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 124 56 Related party relationships and transactions (continued) (3) Transactions with China Great Wall Asset Management Co. Ltd. and its affiliates China Great Wall Asset Management Co. Ltd. (“China Great Wall AMC”) established on 18 October 1999 with the approval of the State Council and the PBOC, is a state -owned financial enterprise registered with the MOF. It is mainly engaged in the acquisition a nd entrusted operation of non -performing assets from financial institutions, as well as the management, investment, and disposal of such assets. As at 30 June 2026, China Great Wall AMC, which beneficially held 3.01% of the Bank’s shares, had nominated one non -executive director to the Board. Affiliates of China Great Wall AMC include its subsidiaries and joint ventures. The Group’s transactions with China Great Wall AMC and its affiliates mainly include deposits from banks and non -bank financial institutions, purchase and sale of debt securities, and money market transactions. These transactions are priced based on market prices and are conducted under general commercial terms. In the ordinary course of business, material transactions that the Group entered into with China Great Wall AMC and its affiliates are as follows: Amounts Six months ended 30 June 2026 Amount Ratio to similar transactions Interest income 24 0.00% Interest expense 29 0.01%
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 125 56 Related party relationships and transactions (continued) (3) Transactions with China Great Wall Asset Management Co. Ltd. and its affiliates (continued) Balances outstanding as at the end of the reporting period 30 June 2026 Balance Ratio to similar transactions Placements with banks and non-bank financial institutions 2,000 0.25% Loans and advances to customers 505 0.00% Financial investments Financial assets measured at fair value through profit or loss 14 0.00% Financial assets measured at fair value through other comprehensive income 124 0.00% Deposits from banks and non-bank financial institutions 188 0.00% Deposits from customers 7 0.00% Note: As China Great Wall AMC is an affiliate of the Group’s parent companies, the aforementioned transactions are also included in Note 5 6(1) – Transactions with parent companies and their affiliates.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 126 56 Related party relationships and transactions (continued) (4) Transactions between the Group and its associates and joint ventures of the Group Transactions between the Group and its associates and joint ventures are conducted in the normal and ordinary course of the business and under normal commercial terms as those transactions conducted between the Group and non-related companies outside the Group. In the ordinary course of the business, material transactions that the Group entered into with associates and joint ventures are as follows: Amounts Six months ended 30 June 2026 2025 Interest income 594 543 Interest expense 79 44 Fee and commission income 78 48 Operating expenses 89 54 Balances outstanding as at the end of the reporting period 30 June 2026 31 December 2025 Loans and advances to customers 66,387 54,462 Financial assets measured at amortised cost - 902 Other assets 2 485 Deposits from banks and non-bank financial institutions 786 827 Deposits from customers 25,435 28,143 Other liabilities 68 1,972 Credit commitments 38,353 39,087
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 127 56 Related party relationships and transactions (continued) (5) Transactions between the Bank and its subsidiaries Transactions between the Bank and its subsidiaries are conducted in the normal and ordinary course of the business and under normal commercial terms as those transactions are conducted between the Bank and non -related companies outside the Group. All the inter-group transactions and inter -group balances are eliminated when preparing the consolidated financial statements as mentioned in Note 2(3). In the ordinary course of the business, material transactions that the Bank entered into with its subsidiaries are as follows: Amounts Six months ended 30 June 2026 2025 Interest income 1,468 1,345 Interest expense 810 863 Fee and commission income 954 1,174 Fee and commission expense 347 311 Dividend income 614 718 Net trading gain (3 ) - Operating expenses 4,896 3,406 Other operating income, net 58 36
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 128 56 Related party relationships and transactions (continued) (5) Transactions between the Bank and its subsidiaries (continued) Balances outstanding as at the end of the reporting period 30 June 2026 31 December 2025 Deposits with banks and non-bank financial institutions 4,636 3,759 Placements with banks and non-bank financial institutions 127,001 135,556 Positive fair value of derivatives 331 1,218 Financial assets held under resale agreements 351 400 Loans and advances to customers 21,864 24,950 Financial investments Financial assets measured at amortised cost 800 806 Financial assets measured at fair value through other comprehensive income 29,804 30,965 Other assets 39,517 39,940 Deposits from banks and non-bank financial institutions 23,041 16,951 Placements from banks and non-bank financial institutions 40,219 54,951 Negative fair value of derivatives 396 868 Deposits from customers 8,702 9,777 Debt securities issued - 200 Other liabilities 2,689 4,103 As at 30 June 2026, the total maximum guarantee limit of guarantee letters issued by the Bank with its subsidiaries as beneficiary was RMB470 million (as at 31 December 2025: RMB838 million). As at 30 June 2026, the transactions between subsidiaries of the Group were mainly Loans and advances to customers and Deposits with banks and non -bank financial institutions, and the balances of the above transactions were RMB2,126 million and RMB1,343 million respectively (as at 31 December 2025, the transactions among subsidiaries of the Group were mainly loans and advances to customers and other investment s in bonds, and the balances of the above transactions were RMB2,044 million and RMB799 million, respectively).
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 129 56 Related party relationships and transactions (continued) (6) Transactions with other PRC state-owned entities State-owned entities refer to those entities directly or indirectly owned by the PRC government through its government authorities, agencies, affiliates and other organisations. Transactions with other state-owned entities include but are not limited to: lending and deposit taking; taking and placing of inter -bank balances; entrusted lending and other custody services; insurance and securities agency, and other intermediary services; purchase, sale, underwriting and redemption of bonds issued by other state-owned entities; purchase, sale and leases of property and other assets; and rendering and receiving of utilities and other services. These transactions are conducted in the ordinary course of the Group’s banking business on terms similar to those that would have been entered into with non-state-owned entities. The Group’s pricing strategy and approval processes for major products and services, such as loans, deposits and commission income, do not depend on whether the customers are state-owned entities or not. Having due regard to the substance of the relationships, the Group is of the opinion that none of these transactions were materia l related party transactions that require separate disclosure. (7) Transactions with the Annuity Scheme and Plan Assets The transactions between the Group and the Annuity Scheme mainly comprised the obligations for defined contributions to the Annuity Scheme and regular banking transactions. As at 30 June 2026 , the fair value of the Group’s supplementary retirement benefit plan assets managed by CCB Principal Asset Management and CCB Pension was RMB3,186 million (as at 31 December 2025 : RMB3,047 million), and management fees payable to CCB Principal Asset Management and CCB Pension were RMB19.41 million (as at 31 December 2025: RMB5.00 million). (8) Key management personnel Key management personnel are those persons having authorities and responsibilities for planning, directing and controlling the activities of the Group, directly or indirectly, including directors and senior executives. The Group enters into banking transactions with key management personnel in the normal course of business. For the six months ended 30 June 2026 and for the year ended 31 December 2025, there were no material transactions and balances with key management personnel. The Group had no material balance of loans, quasi -loans and other credit transactions to directors and senior executives as at the end of reporting period. Those loans, quasi -loans and other credit transactions to directors and senior executives were condu cted in the normal and ordinary course of the business and under normal commercial terms or on the same terms and conditions with those which are available to other employees, based on terms and conditions granted to third parties adjusted for risk reduction.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 130 57 Risk management The Group has exposure to the following risks: - credit risk - market risk - liquidity risk - operational risk - insurance risk This note presents information about the Group’s exposures to each of the above risks, the Group’s objectives, policies and processes for measuring and managing risk, and the Group’s capital management. Risk management framework The Board fulfils its risk management responsibilities pursuant to the Articles of Association of the Bank and regulatory requirements. The Board and its Risk Management Committee are responsible for developing risk management strategies and supervising the implementation of such strategies, evaluating the Group’s overall risk profile, conducting regular reviews of the Group’s statements of risk appetite and communicating the Group’s risk appetite through relevant policies. Senior management and its Risk an d Internal Control Management Committee are responsible for executing risk management strategies developed by the Board and organising the implementation of comprehensive risk management across the Group. Risk Management Department is the lead department responsible for the Group’s comprehensive risk management and leads market risk management. Credit Management Department is responsible for the Group’s overall credit risk management and leads country risk management. Asset & Liability Management Department is the lead department responsible for the management of liquidity risk and interest rate risk in the banking book. Internal Control & Compliance Department is the lead department responsible for operational risk management. FinTech Department and Internal Control & Compliance Department take joint responsibility in leading IT risk management. Public Relations & Corporate Culture Department is the lead department responsible for reputational risk managemen t. The Strategy and Policy Coordination Department is the lead department responsible for strategic risk management. Other risks are managed under the Group’s comprehensive risk management framework in accordance with relevant policies and division of responsibilities. The Bank continued to improve its group -wide integrated risk management system and effectively strengthened look-through risk management of its subsidiaries. Adhering to a prudent operation principle, it strengthened risk appetite management of subsidiarie s, improved the pertinence and effectiveness of the risk management policy of “One Policy for One Subsidiary”, and clearly defined differentiated risk control priorities for different types of subsidiaries. The Bank further reinforced constraints based on policies by effectively addressing the weaknesses in subsidiaries’ policies and regulations, and enhanced the refined management of subsidiaries in terms of authorisation, limits, and approval. Additionally, it conducted risk scanning and detection of subs idiaries to clarify the risk profile, and bolstered risk management of key subsidiaries and key businesses, thereby laying a solid foundation for the high-quality development of its subsidiaries.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 131 57 Risk management (continued) (1) Credit risk Credit risk management Credit risk represents the risk of financial loss that arises from the failure of a debtor or counterparty to discharge its contractual obligations or commitments to the Group. Credit risk management covers the management of key aspects designed to effectively identify, measure, evaluate, monitor, report and control the Group’s credit risk. The Credit Management Department is the leading department responsible for overall management of the Group’s credit risk. The Risk Management Department takes the lead in the development and implementation of the credit risk measurement tools including customers rating and facilities grading. The Special Assets Resolution Department is responsible for the special assets resolutions. The Credit Approval Department is responsible for specific credit management work such as comprehensive credit limits and credit approval of various credit businesses for the Group’s customers. With the Credit Management Department taking the lead, the Credit Approval Department and the Risk Management Department participate in, share the workload and coordinate with other departments such as the Corporate Banking Department, the Inclusive Finance Department, the Institutional Banking Department, the International Business Department, the Strategic Clients Department, the Housing Finance & Personal Lending Department, the Credit C ard Centre, and the Legal Affairs Department to implement credit risk management policies and procedures. With respect to credit risk management of corporate and institutional business, the Group has accelerated the adjustment of its businesses structure, enhanced post -lending (investment) monitoring, and refined the industry -specific guideline and policy base line for credit approval. Management also fine-tuned eligibility and exit policies, and optimised economic capital management and industry risk limit management. All these policies have been implemented to maintain the stability of asset quality. The Group ’s credit risk management covers processes such as pre -lending (investment) due diligence, credit (investment) inspection, and post -lending (investment) monitoring for credit granting business. The Group performs pre -lending (investment) investigations by assessing the borrower’s credit ratings based on internal rating criteria and completing the borrower’s assessment report and by performing a comprehensive evaluation of the risks and rewards of the project and completing an evaluation report. Approvals mu st be authori sed by approvers with the appropriate authorisation. The Group conducts ongoing post -lending (investment) monitoring activities, particularly focusing on the monitoring of credit risk s arising from key industries and key clients, and takes timely measures to prevent and control these risks.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 132 57 Risk management (continued) (1) Credit risk (continued) Credit risk management (continued) With respect to the personal credit business, the Group relies on credit assessment of applicants as the basis for loan approval. Customer relationship managers are required to assess the income, credit history, and repayment ability of the applicant. The customer relationship managers then forward the application and recommendations to the loan - approval departments for consent. The Group pays great attention to post -lending monitoring of personal loans, focuses on borrowers’ repayment ability, the status o f collateral and pledges and any changes to the value of collateral and pledges. Once a loan becomes overdue, the Group starts the recovery process according to standard recovery procedures. To mitigate risks, the Group requests the customers to provide collateral and pledges or guarantees where appropriate. A refined management system and operating procedure for collateral and pledges have been developed, and there is a guideline to specify t he suitability of accepting specific types of collateral and pledges. The values, structures and legal covenants of collateral and pledges are monitored continuously to ensure that they still serve their intended purposes and conform to market practices. For risk management purposes, the Group conducts independent management over credit risk arising from derivatives exposures, with information disclosed in Notes (1)(k). The Group sets credit limits for treasury activities and monitors them regularly with r eference to the fair values of the relevant financial instruments. Measurement of expected credit losses (ECL) The Group continues to improve its unified expected credit loss approach implementation system which has covered all credit risk exposures on and off -balance sheet, and clarified the division of responsibilities between the Board of Directors and its speci alised committees, senior management, the leading department of the Head Office and other relevant departments. The Group has set up a comprehensive implementation management system, strengthened control over the entire implementation process, consolidated the foundation, and adhered to the high -quality implementation of the expected credit loss approach. In the implementation process of the expected credit loss approach, the Group has fully considered uncertainties facing credit risk management. Based on the r esults of expected credit loss assessment, the Group recognises allowances for impairment losses timely and adequately to ensure that the accrued allowances for impairment losses have effectively covered expected credit losses.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 133 57 Risk management (continued) (1) Credit risk (continued) Measurement of expected credit losses (ECL) (continued) (A) Segmentation of financial instruments The Group adopts a “three -stage” model for impairment based on changes in credit risk since initial recognition or by determining whether the financial instruments are credit - impaired, to estimate the expected credit losses. The key definition of the three stages are summarised below: Stage 1: For financial instruments with no significant increase in credit risk after initial recognition, expected credit losses in the next 12 months are recognised. Stage 2: For financial instruments with significant increase in credit risk since initial recognition, but with no objective evidence of impairment, lifetime expected credit losses are recognised. Stage 3: For financial instruments with objective evidence of impairment on the balance sheet date, lifetime expected credit losses are recognised.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 134 57 Risk management (continued) (1) Credit risk (continued) Measurement of expected credit losses (ECL) (continued) (B) Significant increase in credit risk (“SICR”) The Group assesses at least quarterly whether the credit risk of a financial instrument has increased significantly since initial recognition. In accordance with the principle of substantive risk judgment, the Group compares the risk of default of financial instruments as at the end of reporting period with that as at the date of initial recognition for an individual financial instrument or a group of financial instruments with common credit risk characteristics to determine whether the credit risk has increased significantly since initial recognition. The Group sufficiently considers all reasonable and supportable information when making related assessments, including but not limited to: internal credit rating of the borrower; information such as business r isk classification, overdue status, and contract terms; information on changes in the credit strategy or credit risk management methods towards the borrower; information such as the borrower’s credit information, external ratings, changes in debt and equit y prices, credit default swap prices, credit spreads, and public opinion; business and financial information of the borrower, its shareholders, and affiliated enterprises; and the macro economy, industry development, technological innovation, climate chang e, natural disasters, socio -economic and financial policies, government support or relief measures that may have a potential impact on the borrower’s repayment capacity. The Group has set qualitative and quantitative criteria for assessing whether the credit risk of financial instruments has increased significantly since initial recognition. For example, generally, the credit risk of loans whose internal credit ratings hav e fallen to level 15 and below, is regarded as having increased significantly. Usually, if a financial instrument has been overdue for more than 30 days, then this indicates that the credit risk of this financial instrument has increased significantly.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 135 57 Risk management (continued) (1) Credit risk (continued) Measurement of expected credit losses (ECL) (continued) (C) Definition of defaulted and credit-impaired assets The Group considers a financial instrument as having defaulted when it is credit-impaired. Generally, financial instrument overdue for more than 90 days on contractual payment terms shall be considered as having credit-impaired. The following factors can be referred to when determining whether credit impairment has occurred: - Significant financial difficulty of the issuer or borrower; - Breach of contract term, such as a default or delinquency in interest or principal payments; - Concessions that would not otherwise be granted to the borrower, in light of economic or contractual considerations related to the borrower's financial difficulties; - It is becoming probable that the borrower will enter bankruptcy or other financial reorganisation; - Disappearance of an active market for financial assets because of financial difficulties of the issuer or borrower; - A financial asset purchased or originated by a large discount which reflects the fact of credit-impairment having occurred; and - Other objective evidence indicating there is a credit impairment of the financial asset. The Group’s definition of default has been consistently applied to the estimates of PD, LGD and EAD during the ECL measurement.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 136 57 Risk management (continued) (1) Credit risk (continued) Measurement of expected credit losses (ECL) (continued) (D) Explanation of parameters, assumptions and estimation techniques The ECL is measured on either a 12 -month or lifetime basis depending on whether a significant increase in credit risk has occurred since initial recognition or whether a financial instrument is considered to be credit -impaired. Expected credit losses are t he discounted product of the weighted average of PD, LGD, and EAD under the optimistic, baseline and pessimistic scenarios. Defined as follows: PD refers to the likelihood of a debtor and its businesses defaulting in the future, after consideration of forward-looking information. Please refer to earlier disclosure in this note for the definition of default. LGD refers to the Group’s expected loss amount resulting from default as a proportion of total exposure, after consideration of forward-looking information. EAD is the total amount of risk exposure on and off -balance sheet at the time of default. The exposure is determined by the repayment plan according to different types of products. The discount rate used in the ECL measurement is the effective interest rate. During the reporting period, based on changes in macroeconomic environment, the Group has updated forward -looking information used in the measurement of expected credit losses. Please refer to further disclosure in this note for forward-looking information which is incorporated in the measurement of expected credit losses. The assumptions underlying the ECL measurement, such as the PDs for different maturities are monitored and reviewed on a quarterly basis. There have been no significant changes in estimation techniques and such assumptions made during the reporting period.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 137 57 Risk management (continued) (1) Credit risk (continued) Measurement of expected credit losses (ECL) (continued) (E) Forward-looking information incorporated in the ECL The Group has performed historical data analysis and identified the macroeconomic variables affecting expected credit losses, such as GDP, CPI, M2, PPI, RMB deposit reserve rate, London spot gold price, average exchange rate of US Dollar to RMB, sales price indices of second -hand residential buildings in 70 large and medium -sized cities, national real estate climate index, and so on. The Group set forecast GDP value for baseline scenario by reference to average value of forecasts released by authoritative international and domestic institutions, and the forecast 2026 GDP growth value under the baseline scenario was set at round 5%. Forecast 202 6 GDP growth value under the optimistic and pessimistic scenarios had been determined by moving up and down, by a certain degree, from the baseline scenario forecast. For other macroeconomic variables, the Group involved internal experts and used methods su ch as transmission models, economic principles, and expert judgment to calculate the predicted value of each variable under each scenario. The Group constructs empirical models to derive the relationship between historical macroeconomic variables and PD and LGD, and calculates the PD and LGD values for a given future horizon using the forecasted macroeconomic variables. The Group constructs empirical models to determine the weightings for optimistic, baseline and pessimistic scenarios. As at 30 June 2026 and 31 December 2025 , the optimistic, baseline and pessimistic scenarios were of comparable weightings. (F) Risk grouping For the purpose of ECL measurement, the Group has divided businesses with common credit risk characteristics into separate groups. When grouping corporate business, the Group considered credit risk characteristics such as client type and the industry in wh ich the client operates. When grouping personal business, the Group considered credit risk characteristics such as internal risk pool and product type. The Group obtained sufficient information to ensure risk grouping is statistically reliable.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 138 57 Risk management (continued) (1) Credit risk (continued) (a) Maximum credit risk exposure The following table presents the maximum exposure to credit risk as at the end of the reporting period without taking into consideration any collaterals and pledges held or other credit enhancements. In respect of the financial assets recognised in the sta tement of financial position, the maximum exposure to credit risk is represented by the carrying amount after deducting any impairment allowance. 30 June 2026 31 December 2025 Deposits with central banks 2,578,070 3,005,611 Deposits with banks and non-bank financial institutions 203,006 190,622 Placements with banks and non-bank financial institutions 813,820 819,823 Positive fair value of derivatives 74,843 49,300 Financial assets held under resale agreements 247,776 856,818 Loans and advances to customers 28,440,110 26,926,790 Financial investments Financial assets measured at fair value through profit or loss 512,796 542,326 Financial assets measured at amortised cost 8,593,174 7,739,652 Financial assets measured at fair value through other comprehensive income 4,430,623 4,232,803 Other financial assets 355,637 267,490 Total 46,249,855 44,631,235 Off-balance sheet credit commitments 4,308,772 4,195,861 Maximum credit risk exposure 50,558,627 48,827,096
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 139 57 Risk management (continued) (1) Credit risk (continued) (b) Loans and advances to customers analysed by credit quality Within overdue but not credit-impaired loans and advances and credit-impaired loans and advances, the portions covered and not covered by collateral held are as follows: 30 June 2026 Overdue but not credit-impaired loans and advances Credit-impaired loans and advances Corporate Personal Corporate Portion covered 15,970 37,686 92,203 Portion not covered 10,489 26,581 167,237 Total 26,459 64,267 259,440 31 December 2025 Overdue but not credit-impaired loans and advances Credit-impaired loans and advances Corporate Personal Corporate Portion covered 10,364 31,818 94,857 Portion not covered 6,602 20,326 160,317 Total 16,966 52,144 255,174 The above collateral and pledges include land use rights, buildings and equipment. The fair value of collateral and pledges was estimated by the Group with reference to the latest available external valuations adjusted after taking into account the current realisation experience as well as the market situation.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 140 57 Risk management (continued) (1) Credit risk (continued) (c) Loans and advances to customers analysed by economic sector concentrations 30 June 2026 31 December 2025 Gross loan balance Percentage Balance secured by collateral Gross loan balance Percentage Balance secured by collateral Corporate loans and advances - Leasing and commercial services 3,106,594 10.59% 662,486 2,906,669 10.47% 678,710 - Manufacturing 2,849,870 9.71% 431,285 2,506,771 9.03% 415,316 - Transportation, storage and postal services 2,798,044 9.54% 765,107 2,678,905 9.65% 726,510 - Production and supply of electric power, heat, gas and water 1,909,056 6.51% 260,221 1,852,383 6.67% 254,435 - Wholesale and retail trade 1,759,195 6.00% 710,969 1,540,743 5.55% 693,009 - Real estate 977,746 3.33% 496,128 992,689 3.57% 500,249 - Water, environment and public utility management 910,976 3.10% 269,852 819,616 2.95% 253,445 - Construction 906,529 3.09% 171,092 814,178 2.93% 169,052 - Finance 571,347 1.95% 17,572 713,758 2.57% 19,214 - Mining 456,321 1.56% 24,404 411,432 1.48% 23,662 - Data Transfer, Software and Data Technology Services 346,926 1.18% 99,012 306,652 1.10% 94,662 - Scientific Research and Technological services 243,833 0.83% 92,115 217,811 0.78% 88,494 - Others 764,139 2.60% 185,008 708,354 2.55% 184,587 Total corporate loans and advances 17,600,576 59.99% 4,185,251 16,469,961 59.30% 4,101,345 Personal loans and advances 9,188,235 31.31% 6,680,190 9,159,182 32.98% 6,743,185 Discounted bills 2,498,034 8.51% - 2,092,713 7.54% - Accrued interest 55,931 0.19% - 50,971 0.18% - Total loans and advances to customers 29,342,776 100.00% 10,865,441 27,772,827 100.00% 10,844,530
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 141 57 Risk management (continued) (1) Credit risk (continued) (d) Loans and advances to customers analysed by geographical sector concentrations 30 June 2026 31 December 2025 Gross loan balance Percentage Balance secured by collateral Gross loan balance Percentage Balance secured by collateral Yangtze River Delta 6,131,793 20.90% 2,478,299 5,772,902 20.79% 2,446,903 Western 5,585,414 19.04% 2,183,495 5,273,064 18.99% 2,177,373 Central 5,086,184 17.33% 1,907,730 4,727,097 17.02% 1,908,120 Bohai Rim 4,934,947 16.82% 1,590,731 4,696,417 16.91% 1,587,031 Pearl River Delta 4,554,316 15.52% 2,236,171 4,303,152 15.49% 2,244,347 Northeastern 1,168,199 3.98% 333,840 1,105,191 3.98% 339,739 Head office 1,076,783 3.67% - 1,101,691 3.97% - Overseas 749,209 2.55% 135,175 742,342 2.67% 141,017 Accrued interest 55,931 0.19% - 50,971 0.18% - Gross loans and advances to customers 29,342,776 100.00% 10,865,441 27,772,827 100.00% 10,844,530
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 142 57 Risk management (continued) (1) Credit risk (continued) (d) Loans and advances to customers analysed by geographical sector concentrations (continued) Details of Stage 3 loans and allowances for impairment losses in respect of geographical sectors as at the end of the reporting period are as follows: 30 June 2026 Stage 3 Gross loan balance Allowances for impairment losses Stage 1 Stage 2 Stage 3 Pearl River Delta 83,802 (52,660 ) (49,165 ) (64,560 ) Western 67,678 (79,930 ) (65,912 ) (45,396 ) Central 60,934 (77,169 ) (39,585 ) (44,866 ) Bohai Rim 60,522 (58,473 ) (39,889 ) (45,701 ) Yangtze River Delta 51,093 (75,536 ) (31,529 ) (38,748 ) Head office 23,693 (11,107 ) (8,465 ) (22,422 ) Northeastern 23,093 (14,803 ) (9,983 ) (16,922 ) Overseas 8,161 (2,316 ) (1,760 ) (5,769 ) Total 378,976 (371,994 ) (246,288 ) (284,384 ) 31 December 2025 Stage 3 Gross loan balance Allowances for impairment losses Stage 1 Stage 2 Stage 3 Pearl River Delta 86,633 (50,309 ) (44,315 ) (67,963 ) Western 60,585 (68,324 ) (59,774 ) (41,541 ) Central 57,045 (64,460 ) (42,746 ) (42,533 ) Bohai Rim 56,441 (50,472 ) (42,140 ) (43,572 ) Yangtze River Delta 48,550 (66,928 ) (30,068 ) (36,436 ) Head office 23,912 (14,251 ) (8,563 ) (22,732 ) Northeastern 22,517 (11,722 ) (9,817 ) (16,705 ) Overseas 8,299 (2,334 ) (2,022 ) (6,310 ) Total 363,982 (328,800 ) (239,445 ) (277,792 ) The definitions of geographical segments are set out in Note 52(1). The above allowances for impairment losses do not include allowances for loans and advances measured at fair value through other comprehensive income.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 143 57 Risk management (continued) (1) Credit risk (continued) (e) Loans and advances to customers analysed by type of collateral 30 June 2026 31 December 2025 Unsecured loans 14,309,467 13,224,073 Guaranteed loans 4,111,937 3,653,253 Loans secured by property and other immovable assets 9,072,866 9,125,558 Other pledged loans 1,792,575 1,718,972 Accrued interest 55,931 50,971 Gross loans and advances to customers 29,342,776 27,772,827 (f) Restructured loans and advances to customers The Bank implements the Rules on Risk Classification of Financial Assets of Commercial Banks (CBIRC PBOC Order [2023] No.1) for its restructured loans and advances to customers. The proportion of the Group’s restructured loans and advances to customers was not significant as at 30 June 2026 and 31 December 2025. (g) Overdue loans analysed by overdue period 30 June 2026 Overdue within three months Overdue between three months and one year Overdue between one year and three years Overdue over three years Total Unsecured loans 39,127 47,650 27,228 3,728 117,733 Guaranteed loans 13,175 24,696 38,325 22,558 98,754 Loans secured by property and other immovable assets 52,237 53,548 49,588 17,616 172,989 Other pledged loans 7,159 3,899 2,309 3,323 16,690 Total 111,698 129,793 117,450 47,225 406,166 As a percentage of gross loans and advances to customers 0.38% 0.45% 0.40% 0.16% 1.39%
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 144 57 Risk management (continued) (1) Credit risk (continued) (g) Overdue loans analysed by overdue period (continued) 31 December 2025 Overdue within three months Overdue between three months and one year Overdue between one year and three years Overdue over three years Total Unsecured loans 31,303 41,114 30,250 2,248 104,915 Guaranteed loans 9,555 19,038 39,676 20,010 88,279 Loans secured by property and other immovable assets 45,066 52,559 45,782 17,130 160,537 Other pledged loans 5,148 1,755 3,837 3,343 14,083 Total 91,072 114,466 119,545 42,731 367,814 As a percentage of gross loans and advances to customers 0.33% 0.41% 0.43% 0.16% 1.33% Overdue loans represent loans of which the whole or part of the principal or interest is overdue for 1 day or more.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 145 57 Risk management (continued) (1) Credit risk (continued) (h) Credit risk exposure Loans and advances to customers 30 June 2026 Stage 1 12-month ECL Stage 2 Lifetime ECL Stage 3 Lifetime ECL Total Low risk 28,000,311 383,740 - 28,384,051 Medium risk - 523,818 - 523,818 High risk - - 378,976 378,976 Total carrying amount excluding accrued interest 28,000,311 907,558 378,976 29,286,845 Allowances for impairment losses on loans and advances measured at amortised cost (371,994 ) (246,288 ) (284,384 ) (902,666 ) Allowances for impairment losses on loans and advances measured at fair value through other comprehensive income (1,895 ) (5 ) - (1,900 )
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 146 57 Risk management (continued) (1) Credit risk (continued) (h) Credit risk exposure (continued) Loans and advances to customers (continued) 31 December 2025 Stage 1 12-month ECL Stage 2 Lifetime ECL Stage 3 Lifetime ECL Total Low risk 26,498,672 341,618 - 26,840,290 Medium risk - 517,584 - 517,584 High risk - - 363,982 363,982 Total carrying amount excluding accrued interest 26,498,672 859,202 363,982 27,721,856 Allowances for impairment losses on loans and advances measured at amortised cost (328,800 ) (239,445 ) (277,792 ) (846,037 ) Allowances for impairment losses on loans and advances measured at fair value through other comprehensive income (2,564 ) (11 ) - (2,575 ) The Group classifies credit risk characteristics based on the quality of assets. “Low risk” means that loans are of good credit quality and there are no sufficient reasons to doubt that the borrowers of loans are not expected to fulfil its contractual obli gations to repay its loans, nor are there any other behavio ur breaching the loan contracts and impacting significantly on the repayment of loans; “Medium risk” means that there are factors adversely impacting on the repayment capacity of borrowers, but there are as yet no behaviour impacting significantly on normal repayment of loans; “High risk” means that failure of borrowers to repay loans in accordance with loan contract terms or other behaviour breaching the loan contracts and impacting significantly on the repayment of loans. Off-balance sheet credit commitments As at 30 June 2026 and 31 December 2025, the Group’s credit risk exposures in off-balance sheet credit commitments were primarily designated as Stage 1 and were primarily assigned the “Low Risk” credit risk rating.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 147 57 Risk management (continued) (1) Credit risk (continued) (h) Credit risk exposure (continued) Financial investments 30 June 2026 Stage 1 12-month ECL Stage 2 Lifetime ECL Stage 3 Lifetime ECL Total Low risk 12,902,797 508 - 12,903,305 Medium risk 21,918 5,655 - 27,573 High risk - - 9,408 9,408 Total carrying amount excluding accrued interest 12,924,715 6,163 9,408 12,940,286 Allowance for impairment losses on financial assets measured at amortised cost (14,684 ) (943 ) (9,557 ) (25,184 ) Allowance for impairment losses on financial assets measured at fair value through other comprehensive income (5,126 ) (1 ) (254 ) (5,381 )
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 148 57 Risk management (continued) (1) Credit risk (continued) (h) Credit risk exposure (continued) Financial investments (continued) 31 December 2025 Stage 1 12-month ECL Stage 2 Lifetime ECL Stage 3 Lifetime ECL Total Low risk 11,873,978 419 - 11,874,397 Medium risk 105 7,244 - 7,349 High risk - - 9,969 9,969 Total carrying amount excluding accrued interest 11,874,083 7,663 9,969 11,891,715 Allowance for impairment losses on financial assets measured at amortised cost (12,214 ) (476 ) (10,017 ) (22,707 ) Allowance for impairment losses on financial assets measured at fair value through other comprehensive income (4,143 ) (85 ) (252 ) (4,480 ) The Group classifies financial investment risk characteristics based on asset eligibility and internal rating changes. “Low risk” means that the issuer’s initial internal rating is above the eligible level, and there are no reasons to suspect that the fina ncial investment is expected to be defaulted; “Medium risk” means that although the issuer’s internal rating is reduced to a certain extent, but there are not enough reasons to suspect that the financial investment is expected to be defaulted; “High risk” means that there are obvious problems which may cause a default, or the financial investment indeed is defaulted.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 149 57 Risk management (continued) (1) Credit risk (continued) (h) Credit risk exposure (continued) Amounts due from banks and non-bank financial institutions Amounts due from banks and non -bank financial institutions include deposits and placements with banks and non-bank financial institutions, and financial assets held under resale agreements of which counterparties are banks and non-bank financial institutions. 30 June 2026 Stage 1 12-month ECL Stage 2 Lifetime ECL Stage 3 Lifetime ECL Total Low risk 1,260,508 - - 1,260,508 Medium risk - - - - High risk - - - - Total carrying amount excluding accrued interest 1,260,508 - - 1,260,508 Allowance for impairment losses (417 ) - - (417 )
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 150 57 Risk management (continued) (1) Credit risk (continued) (h) Credit risk exposure (continued) Amounts due from banks and non-bank financial institutions (continued) 31 December 2025 Stage 1 12-month ECL Stage 2 Lifetime ECL Stage 3 Lifetime ECL Total Low risk 1,862,470 - - 1,862,470 Medium risk - - - - High risk - - - - Total carrying amount excluding accrued interest 1,862,470 - - 1,862,470 Allowance for impairment losses (337 ) - - (337 ) The Group classifies risk characteristics of amounts due from banks and non-bank financial institutions based on asset eligibility and internal rating changes. “Low risk” means that the issuer’s initial internal rating is above the eligible level, and ther e are no reasons to suspect that the amount due from banks and non-bank financial institutions is expected to be defaulted; “Medium risk” means that although the issuer’s internal rating is reduced to a certain extent, but there are not enough reasons to suspect that the amount due from banks and non-bank financial institutions is expected to be defaulted; “High risk” means that there are obvious problems which may cause a default, or the amount due from banks and non-bank financial institutions indeed is defaulted.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 151 57 Risk management (continued) (1) Credit risk (continued) (i) Distribution of amounts due from banks and non -bank financial institutions in terms of credit quality is as follows: 30 June 2026 31 December 2025 Credit-impaired - - Allowances for impairment losses - - Subtotal - - Neither overdue nor credit-impaired - grades A to AAA 1,119,229 1,400,014 - grades B to BBB 1,234 19,963 - unrated 140,045 442,493 Accrued interest 4,511 5,130 Total 1,265,019 1,867,600 Allowances for impairment losses (417 ) (337 ) Subtotal 1,264,602 1,867,263 Total 1,264,602 1,867,263 Amounts neither overdue nor credit-impaired are analysed above according to the Group’s internal credit ratings. Unrated amounts due from banks and non-bank financial institutions include amounts due from a number of banks and non-bank financial institutions for which the Group has not assigned internal credit ratings.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 152 57 Risk management (continued) (1) Credit risk (continued) (j) Distribution of debt investments analysed by rating The Group adopts a credit rating approach to manage the credit risk of the debt investment portfolio held. The ratings are obtained from Bloomberg Composite, or major rating agencies where the issuers of the debt investments are located. The carrying amoun ts of the debt investments analysed by the rating agency designations as at the end of the reporting period are as follows: 30 June 2026 Unrated AAA AA A Lower than A Total Credit-impaired - Banks and non-bank financial institutions 404 - - - - 404 - Enterprises 9,446 - - - - 9,446 Total 9,850 - - - - 9,850 Allowances for impairment losses (9,557 ) Subtotal 293 Neither overdue nor credit-impaired - Government 4,572,410 6,284,717 148,013 37,543 20,751 11,063,434 - Central banks 2,152 - 20,311 2,249 2,055 26,767 - Policy banks 745,802 - - 11,569 - 757,371 - Banks and non-bank financial institutions 404,940 351,841 97,089 139,260 26,859 1,019,989 - Enterprises 377,499 207,987 25,606 61,895 11,379 684,366 Total 6,102,803 6,844,545 291,019 252,516 61,044 13,551,927 Allowances for impairment losses (15,627 ) Subtotal 13,536,300 Total 13,536,593
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 153 57 Risk management (continued) (1) Credit risk (continued) (j) Distribution of debt investments analysed by rating (continued) 31 December 2025 Unrated AAA AA A Lower than A Total Credit-impaired - Banks and non-bank financial institutions 416 - - - - 416 - Enterprises 9,955 - - - - 9,955 Total 10,371 - - - - 10,371 Allowances for impairment losses (10,017 ) Subtotal 354 Neither overdue nor credit-impaired - Government 4,065,703 5,760,661 121,525 24,146 18,271 9,990,306 - Central banks 29,233 13,125 21,060 4,716 2,091 70,225 - Policy banks 745,289 - - 65,395 - 810,684 - Banks and non-bank financial institutions 433,567 394,994 46,819 166,277 38,641 1,080,298 - Enterprises 187,396 293,096 19,548 66,923 8,641 575,604 Total 5,461,188 6,461,876 208,952 327,457 67,644 12,527,117 Allowances for impairment losses (12,690 ) Subtotal 12,514,427 Total 12,514,781
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 154 57 Risk management (continued) (1) Credit risk (continued) (k) Credit risk arising from the Group’s derivative exposures The Group’s derivatives transactions entered into with customers have been hedged against transactions entered into with banks and non-bank financial institutions. The credit risk the Group is exposed to is related to customers, banks and non-bank financial institutions. The Group manages credit risk through regular monitoring. From 1 January 2024, the Group adopted the Rules on Capital Management of Commercial Banks and other related policies. According to the rules set out by the NFRA, the Group measures the EAD of derivative transactions using the standardised approach for counterparty credit risk (SA-CCR), measures counterparty credit risk -weighted assets of derivative transactions using the standardised approach for credit risk, and measures risk - weighted assets for credit valuation adjustment using the reduced version of basic approach. Analysed by counterparty credit risk-weighted asset: Note 30 June 2026 31 December 2025 Counterparty credit default risk- weighted assets - Interest rate contracts 6,740 6,227 - Exchange rate contracts 71,644 62,668 - Other contracts (i) 47,168 31,354 Subtotal 125,552 100,249 Risk-weighted assets for credit valuation adjustment 30,106 20,685 Total 155,658 120,934 (i) Other contracts mainly consist of precious metals and commodity contracts. (l) Settlement risk The Group’s activities may give rise to settlement risk at the time of the settlement of transactions and trades. Settlement risk is the risk of loss due to the failure of an entity to honour its obligations to deliver cash, securities or other assets as contractually agreed. For certain types of transactions, the Group mitigates this risk by conducting settlements through a settlement or clearing agent to ensure that a trade is settled only when both parties have fulfilled their contractual settlement obligations.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 155 57 Risk management (continued) (1) Credit risk (continued) (m) Sensitivity analysis Models and parameters such as forward -looking empirical models, forecast values of macroeconomic variables and stage designation results would have an impact on ECL. (i) Sensitivity analysis of segmentation A significant increase in credit risk since initial recognition will result in financial assets transferring from Stage 1 to Stage 2, and the loss allowance for those financial assets shall be measured at an amount equal to the lifetime expected credit losses. The following tables present the impact of ECL from the second year to the end of the lifetime for financial assets in Stage 2. 30 June 2026 Allowances for 12-month ECL of all performing financial assets Impact over lifetime Current allowances for impairment losses Performing loans 565,576 52,706 618,282 Performing financial investments 20,471 283 20,754 31 December 2025 Allowances for 12-month ECL of all performing financial assets Impact over lifetime Current allowances for impairment losses Performing loans 515,934 52,311 568,245 Performing financial investments 16,703 215 16,918 The above allowances for impairment losses of financial assets did not contain the impairment loss allowances for loans and advances measured at fair value through other comprehensive income.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 156 57 Risk management (continued) (1) Credit risk (continued) (m) Sensitivity analysis (continued) (ii) Sensitivity analysis of macroeconomic variables The Group has carried out sensitivity analysis of GDP forecast. As at 30 June 2026, when GDP growth rate in the baseline scenario increased or decreased by 10%, the change in allowances for impairment losses of financial assets did not exceed 5%(as at 31 December 2025: did not exceed 5%). (2) 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. A trading book consists of positions in financial instruments and commodities held either with trading intent or in order to hedge other elements of the trading book. Non -trading book records those financial instruments and commodities which are not included in the trading book. The Group continues to improve market risk management system. The Risk Management Department is responsible for leading the establishment of market risk management policies and rules, developing the market risk measurement tools, monitoring and reporting the trading market risk and related daily work. The Asset and Liability Management Department (the “ALM”) is responsible for managing interest rate risk and exchange rate risk of non-trading businesses, as well as the size and structure of assets and liabil ities in response to structural market risk. The Financial Market Department manages the Bank’s RMB and foreign currency investment portfolios, conducts proprietary and customer - driven transactions, as well as implementing market risk management policies and rules. The Audit Department is responsible for regularly performing independent audits of the reliability and effectiveness of the processes constituting the risk management system.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 157 57 Risk management (continued) (2) Market risk (continued) The Group’s interest rate risk mainly comprises repricing risk and basis risk arising from the mismatch of term structure and pricing basis of assets and liabilities. The Group uses multiple tools such as repricing gap analysis, sensitivity analysis on net interest income, scenario analysis and stress testing, to monitor the interest rate risk periodically. The Group’s foreign exchange exposures mainly comprise exposures from foreign currency portfolios within treasury proprietary investments in debt securities and money market placements, and currency exposures from its overseas business. The Group manages i ts foreign exchange exposures by spot foreign exchange transactions and by matching its foreign currency denominated assets with corresponding liabilities in the same currency, and also uses derivatives in the management of its own foreign currency asset and liability portfolios and structural positions. The Group monitors market risk separately in respect of trading portfolios and non-trading portfolios. Trading portfolios include exchange rate and interest rate derivatives as well as trading securities. The historical simulation model for the Value-at-Risk (“VaR”) analysis is a major tool used by the Bank to measure and monitor the market risk of its trading portfolio. Net interest income sensitivity analysis, interest rate repricing gap analysis and foreign exchange risk concentration analysis are the ma jor tools used by the Group to monitor the market risk of its overall businesses.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 158 57 Risk management (continued) (2) Market risk (continued) (a) VaR analysis VaR is a technique which estimates the potential losses that could occur on risk positions taken, due to movements in market interest rates, foreign exchange rates of all books and other market prices over a specified time horizon and at a given level of c onfidence. The Risk Management Department calculates interest rates for the Bank’s trading book, foreign exchange rates and commodity prices VaR for the Bank’s trading book and banking book. By reference to historical movements in interest rates, foreign exchange rates and commodity prices, the Risk Management Department calculates VaR on a daily ba sis for the trading book and monitors it regularly. VaR is calculated at a confidence level of 99% and with a holding period of one day. A summary of the VaR of the Bank’s trading portfolio as at the end of the reporting period and during the respective periods is as follows: Six months ended 30 June 2026 Note As at 30 June Average Maximum Minimum VaR of trading portfolio 383 285 576 170 Of which: - Interest rate risk 98 87 116 65 - Foreign exchange risk (i) 392 272 565 145 - Commodity risk 22 26 36 14 Six months ended 30 June 2025 Note As at 30 June Average Maximum Minimum VaR of trading portfolio 328 309 363 241 Of which: - Interest rate risk 202 124 213 73 - Foreign exchange risk (i) 281 309 363 246 - Commodity risk 1 1 2 - (i) The VaR in relation to bullion is included in the foreign exchange risk above. VaR for each risk factor is the independently derived largest potential loss for a specific holding period and at a given confidence level due to fluctuations solely in that risk factor. The individual VaRs do not add up to the total VaR as there is diversification effect due to correlation amongst the risk factors.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 159 57 Risk management (continued) (2) Market risk (continued) (a) VaR analysis (continued) Although VaR is an important tool for measuring market risk, the assumptions on which the model is based give rise to some limitations, including the following: - A 1-day holding period assumes that it is possible to hedge or dispose of positions within that period. This is considered to be a realistic assumption in almost all cases but may not be the case in situations in which there is severe market illiquidity f or a prolonged period; - A 99 percent confidence level does not reflect losses that may occur beyond this level. Within the model used, there is 1 percent probability that losses could exceed the VaR; - VaR is calculated on an end-of-day basis and does not reflect exposures that may arise on positions during the trading day; - The use of historical data as a basis for determining the possible range of future outcomes may not always cover all possible scenarios, especially those of an exceptional nature; and - The VaR measure is dependent upon the Bank’s position and the volatility of market prices. The VaR of an unchanged position reduces if the market price volatility declines and vice versa.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 160 57 Risk management (continued) (2) Market risk (continued) (b) Interest rate sensitivity analysis In monitoring interest rate risk on its overall non-derivative financial assets and liabilities, the Bank regularly measures its future net interest income sensitivity to an increase or decrease in market interest rates (assuming no asymmetrical movement in yield curves and a constant financial position). An incremental 100 basis points parallel fall or rise in all yield curves, other than that applicable to deposits with central banks, would increase or decrease annualised net interest income of the Group by RMB80,086 million (as at 31 December 2025 : RMB61,732 million). Had the impact of yield curves movement for demand deposits from customers been excluded, the annualised net interest income of the Group would decrease or increase by RMB77,098 million (as at 31 December 2025 : RMB91,958 million). In the event of a parallel fall or rise of 100 basis points in the yield curve, equity would increase by RMB193,862 million (as at 31 December 2025 : RMB190,344 million) or decrease by RMB173,993 million (as at 31 December 2025 : RMB170,372 million), respectively. The above interest rate sensitivity is for illustration purposes only and is assessed based on simplified assumptions. The figures here indicate estimated net interest income and equity movements under various predicted yield curve scenarios and subject to the Bank’s current interest rate exposures. However, the possible risk management measures that can be undertaken by the interest risk management department or related business departments to mitigate interest rate risk have not been taken into account. In practice, the departments that manage the interest rate risk strive to reduce loss arising from the risk while increasing the net income. These figures are estimated on the assumption that the interest rates on various maturities will move within similar ranges, and therefore do not reflect the potential net interest income changes and equity changes in the event that interest rates on some maturities may change and others remain unchanged. Moreover, the above estimations are based on other simplified assumptions, including that all positions will be held to maturity and rolled over upon maturity. (c) Interest rate risk Interest rate risk refers to the risk where the market interest rates, term structure and other factors may experience unfavourable fluctuations which impact the overall profitability and fair value resulting in losses to the Bank. The key determinants of the Group’s interest rate risk arise from the mismatch between the maturity periods of the assets and liabilities, and inconsistent pricing basis, resulting in re-pricing risk and basis risk. The ALM is responsible for regularly monitoring the interest rate risk positions and measuring the interest rate re-pricing gap. The main reason for measuring the interest rate re-pricing gap is to assist in analysing the impact of interest rate changes on net interest income.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 161 57 Risk management (continued) (2) Market risk (continued) (c) Interest rate risk (continued) The following tables indicate the analysis by the expected next repricing dates (or maturity dates whichever are earlier) for the assets and liabilities of the Group as at the end of the reporting period. 30 June 2026 Note Non- interest- bearing Within three months Between three months and one year Between one and five years More than five years Total Assets Cash and deposits with central banks 118,124 2,506,268 267 - - 2,624,659 Deposits and placements with banks and non-bank financial institutions - 555,853 451,099 9,874 - 1,016,826 Financial assets held under resale agreements - 247,075 701 - - 247,776 Loans and advances to customers (i) 54,844 10,627,909 16,018,414 1,679,974 58,969 28,440,110 Investments (ii) 482,138 998,228 1,447,998 5,293,440 5,794,857 14,016,661 Others 982,212 - - - - 982,212 Total assets 1,637,318 14,935,333 17,918,479 6,983,288 5,853,826 47,328,244 Liabilities Borrowings from central banks - 234,309 1,242,742 850 - 1,477,901 Deposits and placements from banks and non-bank financial institutions - 4,010,009 507,191 244,218 12,759 4,774,177 Financial liabilities measured at fair value through profit or loss 122,914 188,463 32,568 - - 343,945 Financial assets sold under repurchase agreements - 1,157,399 293,585 - - 1,450,984 Deposits from customers 92,587 16,655,217 6,673,353 8,392,494 4,768 31,818,419 Debt securities issued - 776,483 1,204,195 701,527 152,978 2,835,183 Others 793,809 - - - - 793,809 Total liabilities 1,009,310 23,021,880 9,953,634 9,339,089 170,505 43,494,418 Asset-liability gap 628,008 (8,086,547 ) 7,964,845 (2,355,801 ) 5,683,321 3,833,826
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 162 57 Risk management (continued) (2) Market risk (continued) (c) Interest rate risk (continued) 31 December 2025 Note Non- interest- bearing Within three months Between three months and one year Between one and five years More than five years Total Assets Cash and deposits with central banks 108,736 2,945,069 394 - - 3,054,199 Deposits and placements with banks and non-bank financial institutions - 534,144 468,241 8,060 - 1,010,445 Financial assets held under resale agreements - 856,818 - - - 856,818 Loans and advances to customers (i) 31,704 13,373,913 12,095,528 1,362,208 63,437 26,926,790 Investments (ii) 411,653 985,382 1,385,738 4,418,378 5,723,982 12,925,133 Others 858,433 - - - - 858,433 Total assets 1,410,526 18,695,326 13,949,901 5,788,646 5,787,419 45,631,818 Liabilities Borrowings from central banks - 131,408 963,993 906 - 1,096,307 Deposits and placements from banks and non-bank financial institutions - 3,771,169 762,287 232,898 20,820 4,787,174 Financial liabilities measured at fair value through profit or loss 61,046 204,144 59,040 - - 324,230 Financial assets sold under repurchase agreements - 1,237,502 253,346 84 - 1,490,932 Deposits from customers 84,900 16,994,422 6,025,931 7,695,240 35,081 30,835,574 Debt securities issued - 701,597 1,085,924 668,026 137,977 2,593,524 Others 818,000 - - - - 818,000 Total liabilities 963,946 23,040,242 9,150,521 8,597,154 193,878 41,945,741 Asset-liability gap 446,580 (4,344,916 ) 4,799,380 (2,808,508 ) 5,593,541 3,686,077 (i) For loans and advances to customers, the “within three months” category includes overdue amounts (net of allowances for impairment losses) of RMB80,663 million as at 30 June 2026 (as at 31 December 2025: RMB61,881 million). (ii) Investments include financial assets measured at fair value through profit or loss, financial assets measured at amortised cost, financial assets measured at fair value through other comprehensive income and long-term equity investments, etc.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 163 57 Risk management (continued) (2) Market risk (continued) (d) Currency risk The Group’s foreign exchange exposures mainly comprise exposures that arise from the foreign currency proprietary investments of the treasury business and currency exposures originated by the Group’s overseas businesses. The Group manages currency risk by spot and forward foreign exchange transactions and by matching its foreign currency denominated assets with corresponding liabilities in the same currency, and also uses derivatives (principally foreign exchange swaps and cross currency swaps) in the management of its own foreign currency asset and liability portfolios and structural positions. The Group actively manages foreign currency exposures by minimising foreign exchange risk by business lines. Therefore, the net exposure is not sensitive to exchange rate fluctuations and the potential impact on the pre -tax profits and other comprehensive income of the Group is not material.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 164 57 Risk management (continued) (2) Market risk (continued) (d) Currency risk (continued) The currency exposures of the Group’s assets and liabilities as at the end of the reporting period are as follows: 30 June 2026 Note RMB USD (RMB equivalent) Others (RMB equivalent) Total Assets Cash and deposits with central banks 2,484,905 62,044 77,710 2,624,659 Deposits and placements with banks and non-bank financial institutions 760,733 167,304 88,789 1,016,826 Financial assets held under resale agreements 218,540 21,575 7,661 247,776 Loans and advances to customers 27,620,746 451,584 367,780 28,440,110 Investments (i) 13,264,623 449,221 302,817 14,016,661 Others 886,967 40,466 54,779 982,212 Total assets 45,236,514 1,192,194 899,536 47,328,244 Liabilities Borrowings from central banks 1,457,723 5,992 14,186 1,477,901 Deposits and placements from banks and non-bank financial institutions 4,322,062 280,616 171,499 4,774,177 Financial liabilities measured at fair value through profit or loss 336,650 5,852 1,443 343,945 Financial assets sold under repurchase agreements 1,409,589 24,979 16,416 1,450,984 Deposits from customers 30,773,822 513,581 531,016 31,818,419 Debt securities issued 2,554,602 179,793 100,788 2,835,183 Others 737,038 6,196 50,575 793,809 Total liabilities 41,591,486 1,017,009 885,923 43,494,418 Net position 3,645,028 175,185 13,613 3,833,826 Net notional amount of derivatives 52,664 (93,365 ) 45,574 4,873 Credit commitments 3,809,367 339,009 160,396 4,308,772
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 165 57 Risk management (continued) (2) Market risk (continued) (d) Currency risk (continued) 31 December 2025 Note RMB USD (RMB equivalent) Others (RMB equivalent) Total Assets Cash and deposits with central banks 2,894,887 94,349 64,963 3,054,199 Deposits and placements with banks and non-bank financial institutions 824,333 157,189 28,923 1,010,445 Financial assets held under resale agreements 809,717 40,853 6,248 856,818 Loans and advances to customers 26,152,567 398,078 376,145 26,926,790 Investments (i) 12,314,342 332,274 278,517 12,925,133 Others 780,558 59,839 18,036 858,433 Total assets 43,776,404 1,082,582 772,832 45,631,818 Liabilities Borrowings from central banks 1,053,514 10,921 31,872 1,096,307 Deposits and placements from banks and non-bank financial institutions 4,239,481 350,434 197,259 4,787,174 Financial liabilities measured at fair value through profit or loss 300,719 2,993 20,518 324,230 Financial assets sold under repurchase agreements 1,477,336 7,054 6,542 1,490,932 Deposits from customers 29,895,899 529,999 409,676 30,835,574 Debt securities issued 2,301,945 179,425 112,154 2,593,524 Others 787,461 7,842 22,697 818,000 Total liabilities 40,056,355 1,088,668 800,718 41,945,741 Net position 3,720,049 (6,086 ) (27,886 ) 3,686,077 Net notional amount of derivatives (59,717 ) (77,330 ) 133,833 (3,214 ) Credit commitments 3,699,905 308,250 187,706 4,195,861 (i) Please refer to Note 57(2)(c)(ii) for the scope of investments.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 166 57 Risk management (continued) (3) Liquidity risk The Group adheres to a liquidity management strategy featuring prudence, decentralisation, coordination and diversification. Management’s objective for liquidity risk management is to establish and improve a liquidity management system that can fully ident ify, accurately measure, continuously monitor, and effectively control liquidity risk, effectively balance the return on funds and security of funds, and safeguard the steady operation across the Bank. The Group conducts quarterly liquidity risk stress testing in order to gauge its risk tolerance in different stress scenarios. The results of stress testing show that under different stress scenarios, the Group’s liquidity risk is under control. The Group adopts liquidity indicator analysis, remaining maturity analysis and undiscounted cash flow analysis to measure the liquidity risk.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 167 57 Risk management (continued) (3) Liquidity risk (continued) (a) Maturity analysis The following tables provide an analysis of the assets and liabilities of the Group based on the remaining periods to repayment as at the end of the reporting period: 30 June 2026 Indefinite Repayable on demand Within one month Between one and three months Between three months and one year Between one and five years More than five years Total Assets Cash and deposits with central banks 2,350,538 273,037 - 1,084 - - - 2,624,659 Deposits and placements with banks and non-bank financial institutions - 107,004 268,912 179,937 451,099 9,874 - 1,016,826 Financial assets held under resale agreements - - 244,927 2,148 701 - - 247,776 Loans and advances to customers 122,593 929,045 1,079,881 2,132,680 7,678,639 8,015,891 8,481,381 28,440,110 Investments –Financial assets measured at fair value through profit or loss 287,186 121,798 40,248 63,694 144,885 71,161 191,416 920,388 –Financial assets measured at amortised cost 667 - 64,753 191,869 412,749 3,489,456 4,433,680 8,593,174 –Financial assets measured at fair value through other comprehensive income 46,748 - 162,820 233,924 765,020 1,895,497 1,373,351 4,477,360 –Long-term equity investments 25,739 - - - - - - 25,739 Others 374,354 445,059 20,397 34,744 62,060 33,070 12,528 982,212 Total assets 3,207,825 1,875,943 1,881,938 2,840,080 9,515,153 13,514,949 14,492,356 47,328,244 Liabilities Borrowings from central banks - - 48,294 186,015 1,242,742 850 - 1,477,901 Deposits and placements from banks and non-bank financial institutions - 2,902,118 381,047 682,697 510,478 271,296 26,541 4,774,177 Financial liabilities measured at fair value through profit or loss - 122,859 78,474 110,044 32,568 - - 343,945 Financial assets sold under repurchase agreements - - 481,512 675,887 293,585 - - 1,450,984 Deposits from customers - 13,043,350 1,607,030 2,089,846 6,678,111 8,394,930 5,152 31,818,419 Debt securities issued - - 313,500 398,035 1,209,656 761,014 152,978 2,835,183 Others 4,280 312,211 37,741 29,824 87,555 66,868 255,330 793,809 Total liabilities 4,280 16,380,538 2,947,598 4,172,348 10,054,695 9,494,958 440,001 43,494,418 Net gaps 3,203,545 (14,504,595 ) (1,065,660 ) (1,332,268 ) (539,542 ) 4,019,991 14,052,355 3,833,826 Notional amount of derivatives – Interest rate contracts - - 343,101 654,255 1,596,224 1,094,480 35,885 3,723,945 – Exchange rate contracts - - 1,294,578 908,934 1,788,997 191,662 5,440 4,189,611 – Other contracts - - 46,447 62,520 158,643 8,693 - 276,303 Total - - 1,684,126 1,625,709 3,543,864 1,294,835 41,325 8,189,859
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 168 57 Risk management (continued) (3) Liquidity risk (continued) (a) Maturity analysis (continued) 31 December 2025 Indefinite Repayable on demand Within one month Between one and three months Between three months and one year Between one and five years More than five years Total Assets Cash and deposits with central banks 2,270,092 782,530 - 1,183 394 - - 3,054,199 Deposits and placements with banks and non-bank financial institutions - 96,253 258,250 179,300 468,315 8,327 - 1,010,445 Financial assets held under resale agreements - - 856,519 299 - - - 856,818 Loans and advances to customers 111,651 989,462 1,181,008 2,147,384 6,583,500 7,506,760 8,407,025 26,926,790 Investments –Financial assets measured at fair value through profit or loss 243,317 90,358 28,029 41,102 183,202 76,873 212,113 874,994 –Financial assets measured at amortised cost 269 - 35,733 183,685 589,195 2,756,059 4,174,711 7,739,652 –Financial assets measured at fair value through other comprehensive income 49,928 - 260,486 351,664 619,177 1,653,631 1,347,820 4,282,706 –Long-term equity investments 27,781 - - - - - - 27,781 Others 370,863 355,272 20,599 33,801 38,305 27,350 12,243 858,433 Total assets 3,073,901 2,313,875 2,640,624 2,938,418 8,482,088 12,029,000 14,153,912 45,631,818 Liabilities Borrowings from central banks - - 39,697 91,711 963,993 906 - 1,096,307 Deposits and placements from banks and non-bank financial institutions - 2,638,906 496,089 605,677 766,434 249,727 30,341 4,787,174 Financial liabilities measured at fair value through profit or loss - 61,046 143,921 60,223 59,040 - - 324,230 Financial assets sold under repurchase agreements - - 650,221 587,281 253,346 84 - 1,490,932 Deposits from customers - 12,912,506 1,831,290 2,323,640 6,028,584 7,703,800 35,754 30,835,574 Debt securities issued - - 141,719 505,542 1,090,722 717,564 137,977 2,593,524 Others 73,594 240,087 55,061 39,423 100,582 71,526 237,727 818,000 Total liabilities 73,594 15,852,545 3,357,998 4,213,497 9,262,701 8,743,607 441,799 41,945,741 Net gaps 3,000,307 (13,538,670 ) (717,374 ) (1,275,079 ) (780,613 ) 3,285,393 13,712,113 3,686,077 Notional amount of derivatives –Interest rate contracts - - 281,216 573,781 1,446,332 619,539 25,266 2,946,134 –Exchange rate contracts - - 1,582,796 1,622,801 2,895,267 127,811 4,609 6,233,284 –Other contracts - - 142,984 61,649 117,455 8,135 - 330,223 Total - - 2,006,996 2,258,231 4,459,054 755,485 29,875 9,509,641
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 169 57 Risk management (continued) (3) Liquidity risk (continued) (b) Contractual undiscounted cash flow The following tables provide an analysis of the contractual undiscounted cash flow of the non-derivative financial liabilities and off-balance sheet credit commitments of the Group as at the end of the reporting period. The Group’s expected cash flows on these instruments may vary significantly from this analysis. 30 June 2026 Carrying amount Gross cash outflow Repayable on demand Within one month Between one and three months Between three months and one year Between one and five years More than five years Non-derivative financial liabilities Borrowings from central banks 1,477,901 1,490,748 - 48,353 186,660 1,254,883 852 - Deposits and placements from banks and non-bank financial institutions 4,774,177 4,799,327 2,902,118 381,492 685,498 518,071 282,666 29,482 Financial liabilities measured at fair value through profit or loss 343,945 343,945 122,859 78,474 110,044 32,568 - - Financial assets sold under repurchase agreements 1,450,984 1,454,415 - 481,708 677,327 295,380 - - Deposits from customers 31,818,419 32,202,559 13,043,350 1,607,828 2,104,496 6,776,371 8,664,878 5,636 Debt securities issued 2,835,183 2,934,926 - 315,682 400,642 1,232,340 823,293 162,969 Other non- derivative financial liabilities 543,334 782,529 146,112 19,465 15,431 55,250 54,671 491,600 Total 43,243,943 44,008,449 16,214,439 2,933,002 4,180,098 10,164,863 9,826,360 689,687 Off-balance sheet loan commitments and credit card commitments (Note) 1,767,249 1,171,802 16,429 31,203 114,712 229,778 203,325 Guarantees, acceptances and other credit commitments (Note) 2,541,523 39,060 353,439 448,514 1,135,277 527,436 37,797
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 170 57 Risk management (continued) (3) Liquidity risk (continued) (b) Contractual undiscounted cash flow (continued) 31 December 2025 Carrying amount Gross cash outflow Repayable on demand Within one month Between one and three months Between three months and one year Between one and five years More than five years Non-derivative financial liabilities Borrowings from central banks 1,096,307 1,107,419 - 39,763 92,125 974,622 909 - Deposits and placements from banks and non-bank financial institutions 4,787,174 4,815,508 2,638,906 496,848 607,824 776,729 262,171 33,030 Financial liabilities measured at fair value through profit or loss 324,230 324,230 61,046 143,921 60,223 59,040 - - Financial assets sold under repurchase agreements 1,490,932 1,494,133 - 650,474 588,666 254,909 84 - Deposits from customers 30,835,574 31,212,014 12,912,506 1,848,935 2,348,899 6,109,991 7,955,489 36,194 Debt securities issued 2,593,524 2,691,121 - 143,498 507,028 1,116,825 775,243 148,527 Other non- derivative financial liabilities 520,595 753,895 143,015 20,202 10,958 51,926 62,212 465,582 Total 41,648,336 42,398,320 15,755,473 3,343,641 4,215,723 9,344,042 9,056,108 683,333 Off-balance sheet loan commitments and credit card commitments (Note) 1,741,057 1,176,125 8,631 14,447 135,124 186,666 220,064 Guarantees, acceptances and other credit commitments (Note) 2,454,804 346 326,628 382,514 1,163,870 538,518 42,928 Note: The off-balance sheet loan commitments and credit card commitments may expire without being drawn upon. Guarantees, acceptances and other credit commitments do not represent the amounts to be paid.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 171 57 Risk management (continued) (4) Operational risk The Group has established and improved its operational risk governance framework, with the Board assuming the ultimate responsibility for operational risk management and senior management responsible for the implementation of operational risk management. T he “three lines of defence” for operational risk management comprise business and management departments, operational risk management departments, and audit departments, which jointly enhance the identification and control of operational risks. The Group has established and improved an operational risk management system tailored to its business nature, size, complexity and risk profile, has formulated operational risk management policies, and has strengthened the coordinated control of “three lin es of defence”. Guided by operational risk appetite, empowered by operational risk management tools and supported by operational risk culture, staffing, incentives and disciplines, and IT systems, the Group continuously conducts the identification and asse ssment, control and mitigation, monitoring and reporting, and capital measurement of operational risks in business products and management activities. It also periodically reviews and optimises the operational risk management system. In addition, it system atically embeds internal control requirements into the development of policies, processes, and systems related to operation management, implementing internal control measures across business operations, products, and management activities to effectively pr event and control operational risks and reduce losses. In the first half of 2026, the Group strictly complied with regulatory requirements, constantly strengthened its operational risk management system, and systematically pressed ahead with preparatory work for the regulatory assessment and validation pursuant to the new standardised approach for operational risk. By leveraging the guiding role of operational risk appetite, the Group significantly enhanced the digital and intelligent capabilities of its management tools, reviewed key risk indicators, and conso lidated the foundation of its operational risk management. Furthermore, the Group enhanced its business continuity management, having completed a new round of business impact analysis to identify important business operations and focus on key management priorities. It optimised contingency planning, coordinated comprehensive drills, and strengthened business-technology collaboration. Moreover, the Group refined business continuity initiatives for overseas operations, so as to enhance the ability to respond to operational risk exposures.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 172 57 Risk management (continued) (5) Fair value of financial instruments (a) Valuation process, technique and input The Board is responsible for establishing a robust internal control policy of valuation, and takes the ultimate responsibility for the adequacy and effectiveness of internal control system. According to the requirements of the Board, senior management is responsible for organising and implementing the internal control system over the valuation process to ensure the effectiveness of the internal control system of valuation. The Group has established an independent valuation process for financial assets and financial liabilities. The relevant departments are responsible for performing valuation, verifying valuation model and accounting of valuation results. For the six months ended 30 June 2026, there was no significant change in the valuation techniques or inputs used to determine fair value as compared to those used for the year ended 31 December 2025. (b) Fair value hierarchy The Group measures fair values using the following fair value hierarchy that reflects the significance of the inputs used in making the measurements: - Level 1: Fair value based on quoted prices (unadjusted) in active markets for identical assets or liabilities. - Level 2: Fair value based on inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). - Level 3: Fair value based on inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 173 57 Risk management (continued) (5) Fair value of financial instruments (continued) (c) Financial instruments measured at fair value (i) Fair value hierarchy The tables below analyse financial instruments, measured at fair value at the end of the reporting period, by the level in the fair value hierarchy into which the fair value measurement is categorised: 30 June 2026 Level 1 Level 2 Level 3 Total Measured at fair value on a recurring basis Assets Positive fair value of derivatives - 74,841 2 74,843 Loans and advances to customers – Loans and advances to customers measured at fair value through other comprehensive income - 2,498,034 - 2,498,034 Financial assets measured at fair value through profit or loss Financial assets held for trading purposes – Debt securities 4,648 312,712 - 317,360 – Equity instruments and funds 1,527 4,300 - 5,827 Other financial assets measured at fair value through profit or loss – Debt securities 25 111,416 3,379 114,820 – Equity instruments, funds and others 25,276 297,148 159,957 482,381 Financial assets measured at fair value through other comprehensive income – Bond investments 489,587 3,939,625 967 4,430,179 – Debt investments - - 444 444 – Equity instruments designated as measured at fair value through other comprehensive income 20,537 - 26,200 46,737 Total 541,600 7,238,076 190,949 7,970,625 Measured at fair value on a recurring basis Liabilities Financial liabilities measured at fair value through profit or loss 42 341,285 2,618 343,945 Negative fair value of derivatives - 45,386 2 45,388 Total 42 386,671 2,620 389,333
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 174 57 Risk management (continued) (5) Fair value of financial instruments (continued) (c) Financial instruments measured at fair value (continued) (i) Fair value hierarchy (continued) 31 December 2025 Level 1 Level 2 Level 3 Total Measured at fair value on a recurring basis Assets Positive fair value of derivatives - 49,297 3 49,300 Loans and advances to customers – Loans and advances to customers measured at fair value through other comprehensive income - 2,092,713 - 2,092,713 Financial assets measured at fair value through profit or loss Financial assets held for trading purposes – Debt securities 3,636 314,031 - 317,667 – Equity instruments and funds 1,756 2,368 - 4,124 Other financial assets measured at fair value through profit or loss – Debt securities 62 137,534 3,383 140,979 – Equity instruments, funds and others 20,423 243,883 147,918 412,224 Financial assets measured at fair value through other comprehensive income – Bond investments 414,423 3,816,967 957 4,232,347 – Debt investments - - 456 456 – Equity instruments designated as measured at fair value through other comprehensive income 21,540 - 28,363 49,903 Total 461,840 6,656,793 181,080 7,299,713 Measured at fair value on a recurring basis Liabilities Financial liabilities measured at fair value through profit or loss - 322,715 1,515 324,230 Negative fair value of derivatives - 89,801 3 89,804 Total - 412,516 1,518 414,034
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 175 57 Risk management (continued) (5) Fair value of financial instruments (continued) (c) Financial instruments measured at fair value (continued) (i) Fair value hierarchy (continued) A majority of the financial assets classified as level 2 are RMB bonds. The fair value of these bonds is determined based on the valuation results provided by China Central Depository & Clearing Co., Ltd. A majority of the financial liabilities designated as measured at fair value through profit or loss classified as level 2 are the funds raised from structured deposits, the fair value of which are determined based on the income approach. The majority of derivatives are classified as level 2 and valued using the income approach. For the valuation of financial instruments classified as level 2, all significant inputs are observable market data. The financial assets classified as level 3 are primarily unlisted equity instruments . These financial assets are valued using the income approach and market approach, which incorporate the non-observable assumptions including discount rate and P/B ratio. The Group upgraded certain financial instruments from Level 3 to Level 1 of the fair value hierarchy due to the fact that the valuation technique had changed or that certain previously unobservable significant inputs used in fair value measurements had now become observable.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 176 57 Risk management (continued) (5) Fair value of financial instruments (continued) (c) Financial instruments measured at fair value (continued) (ii) Movements of fair value of financial instruments in level 3 of the fair value hierarchy The following tables show a reconciliation from the opening balances to the ending balances for fair value measurement in level 3 of the fair value hierarchy: Six months ended 30 June 2026 Positive fair value of derivatives Other financial assets measured at fair value through profit or loss Financial assets measured at fair value through other comprehensive income Total assets Financial liabilities measured at fair value through profit or loss Negative fair value of derivatives Total liabilities Debt securities Equity instruments, funds and others Bond investments Debt investments Equity instruments As at 1 January 2026 3 3,383 147,918 957 456 28,363 181,080 (1,515 ) (3 ) (1,518 ) Total gains or losses: In profit or loss (1 ) 40 13,577 - - - 13,616 (1,103 ) 1 (1,102 ) In other comprehensive income - - - 10 (12 ) (3,014 ) (3,016 ) - - - Purchases - 62 14,967 - - 851 15,880 (106 ) - (106 ) Sales, settlements and transfers out - (106 ) (16,505 ) - - - (16,611 ) 106 - 106 As at 30 June 2026 2 3,379 159,957 967 444 26,200 190,949 (2,618 ) (2 ) (2,620 )
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 177 57 Risk management (continued) (5) Fair value of financial instruments (continued) (c) Financial instruments measured at fair value (continued) (ii) Movements of fair value of financial instruments in level 3 of the fair value hierarchy (continued) 2025 Positive fair value of derivatives Other financial assets measured at fair value through profit or loss Financial assets measured at fair value through other comprehensive income Total assets Financial liabilities measured at fair value through profit or loss Negative fair value of derivatives Total liabilities Debt securities Equity instruments , funds and others Bond investments Debt investments Equity instruments As at 1 January 2025 4 3,472 145,807 960 41 18,441 168,725 (1,588 ) (4 ) (1,592 ) Total gains or losses: In profit or loss (1 ) 18 (1,459 ) - - - (1,442 ) (161 ) 1 (160 ) In other comprehensive income - - - (3 ) (15 ) (1,432 ) (1,450 ) - - - Purchases - 208 43,089 - 430 12,432 56,159 (346 ) - (346 ) Sales, settlements and transfers out - (315 ) (39,519 ) - - (1,078 ) (40,912 ) 580 - 580 As at 31 December 2025 3 3,383 147,918 957 456 28,363 181,080 (1,515 ) (3 ) (1,518 )
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 178 57 Risk management (continued) (5) Fair value of financial instruments (continued) (c) Financial instruments measured at fair value (continued) (ii) Movements of fair value of financial instruments in level 3 of the fair value hierarchy (continued) In level 3 of the fair value hierarchy, total gains or losses included in profit or loss for the period in the above table are presented in net trading gain and net gain arising from investment securities. Gains or losses on level 3 financial assets and liabilities included in the statement of comprehensive income comprise: Six months ended 30 June 2026 Six months ended 30 June 2025 Realised Unrealised Total Realised Unrealised Total Net gains/(losses) 1,280 11,234 12,514 1,187 (1,341 ) (154 )
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 179 57 Risk management (continued) (5) Fair value of financial instruments (continued) (d) Financial instruments not measured at fair value (i) Financial assets The Group’s financial assets not measured at fair value mainly include cash and deposits with central banks, deposits and placements with banks and non-bank financial institutions, financial assets held under resale agreements, loans and advances to custom ers and financial assets measured at amortised cost. Deposits with central banks, deposits and placements with banks and non -bank financial institutions and financial assets held under resale agreements Deposits with central banks, deposits and placements with banks and non -bank financial institutions and financial assets held under resale agreements are mainly priced at market interest rates and mature within one year. Accordingly, the carrying values approximate to the fair values. Loans and advances to customers Majority of the loans and advances to customers measured at amortised cost are repriced at least annually to the market rate. Accordingly, their carrying values approximate to the fair values. Financial assets measured at amortised cost The following table shows the carrying values and the fair values of financial assets measured at amortised cost as at 30 June 2026 and 31 December 2025 which are not presented in the statement of financial position at their fair values.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 180 57 Risk management (continued) (5) Fair value of financial instruments (continued) (d) Financial instruments not measured at fair value (continued) (i) Financial assets (continued) 30 June 2026 31 December 2025 Carrying value Fair value Level 1 Level 2 Level 3 Carrying value Fair value Level 1 Level 2 Level 3 Financial assets measured at amortised cost 8,593,174 9,113,552 9,532 9,070,705 33,315 7,739,652 8,207,460 5,791 8,158,832 42,837 Total 8,593,174 9,113,552 9,532 9,070,705 33,315 7,739,652 8,207,460 5,791 8,158,832 42,837
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 181 57 Risk management (continued) (5) Fair value of financial instruments (continued) (d) Financial instruments not measured at fair value (continued) (ii) Financial liabilities The Group’s financial liabilities not measured at fair value mainly include borrowings from central banks, deposits and placements from banks and non -bank financial institutions, financial assets sold under repurchase agreements, deposits from customers, a nd debt securities issued. As at 30 June 2026, the collective fair value of subordinated bonds, non- capital TLAC bonds and the eligible Tier 2 capital bonds was RMB837,463 million (as at 31 December 2025 : RMB725,160 million) and the collective carrying value was RMB826,607 million (as at 31 December 2025: RMB708,686 million), and the carrying values of other financial liabilities approximated to their fair values as at the end of the reporting period. The Group uses observable inputs to measure the fair values of subordinated bonds, non-capital TLAC bonds and eligible Tier 2 capital bonds issued, and classified them as level 2 of the fair value hierarchy. (6) Offsetting financial assets and financial liabilities Certain financial assets and financial liabilities of the Group are subject to enforceable master netting arrangements or similar agreements. The agreement between the Group and the counterparty generally allows for net settlement of the relevant financial assets and financial liabilities when both elect to settle on a net basis. In the absence of such an election, financial assets and financial liabilities will be settled on a gross basis. However, each party to the master netting arrangements or similar a greements will have the option to settle all such amounts on a net basis in the event of default of the other party. These financial assets and financial liabilities of the Group are not offset. In addition, financial assets and financial liabilities are offset against each other and reported as net amounts in the statement of financial position when certain agreements between the Group and its counterparties specify that both parties have a legal ly enforceable right to offset the recognised amounts and the transactions are intended to be settled on a net basis or by simultaneously realising the asset and settling the liability (“the offsetting criteria”). As at 3 0 June 2026, the amounts of financial assets and financial liabilities meeting the offsetting criteria are not material to the Group.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 182 57 Risk management (continued) (7) Insurance risk The risk under an insurance contract is the possibility that the insured event occurs and the uncertainty in the resulting claim amount. By the very nature of an insurance contract, the risk is difficult to precisely predict or entails uncertainty. The principal risk that the Group faces under its insurance contracts is that the actual claims and benefit payments exceed the carrying amount of the insurance contract liabilities. The Group manages the uncertainty of insurance risk through its underwriting strategy and policies to diversify underwriting risks, as well as adequate reinsurance arrangements, and enhanced underwriting control and claim control. The Group makes related assumptions for insurance risks and recogni ses insurance contract liabilities. For long -term life insurance contracts and short -term life insurance contracts, the insurance risk may be aggravated by the difference between insurance risk assumptions and actual insurance risks, including assumptions o n death events, relevant expenses, morbidity assumptions, the loss ratios assumptions and surrender rates assumptions, etc. For property and casualty insurance contracts, claims are often subject to factors such as natural disasters, catastrophes, and terr orist attacks. In addition, the insurance risk can also be affected by the policyholder’s termination of the contract, reduction of premiums, and refusal to pay premiums, i.e., the insurance risk is affected by the actions and decisions of the policyholder.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 183 57 Risk management (continued) (8) Capital management The Bank has implemented comprehensive capital management, covering capital management policy design, capital projecting and planning, capital calculation, internal capital assessment, capital allocation, capital incentive, restriction and conduction, capital raising, monitoring and reporting, and applications of advanced approach of capital calculation in the management of the ordinary course of the business. General principles of capital management of the Bank are to continuously retain an adequate capita l level, retain a certain margin of safety and a certain level of buffer based on that all regulatory requirements have been complied, and ensure that the capital can cover all kinds of risks adequately; exercise reasonable and effective capital allocation and strengthen capital restraint and incentive mechanism to support the strategic planning effectively and to restrict and conduct the business so as to increase the capital efficiency and return level continuously; consolidate capital strength, maintain relatively high capital quality, and reasonably apply a range of capital instruments to optimise capital structure based on the principle of leveraging both internal accumulation and external capital; continuously develop the advanced approach of capital management on the applications in the business management such as credit policies, credit approval and pricing. Capital adequacy ratios are a reflection of the Group’s ability to maintain a stable operation and resist adverse risks. In accordance with the NFRA’s Rules on Capital Management of Commercial Banks and relevant regulations, commercial banks should meet the minimum capital requirements from 1 January 2024. The Common Equity Tier 1 ratio should be at or above a minimum of 5%, Tier 1 ratio at or above a minimum of 6% and the Total capital ratio at or above a minimum of 8%. Besides, capital conservation buffer requirements, additional buffer requirements of Global and Domestic Systemically Important Banks should also be met. If a countercyclical buffer is required or the Pillar 2 capital requirement is raised by the regulator to a specific commercial bank, the minimum requirements should be met within the transitional period.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 184 57 Risk management (continued) (8) Capital management (continued) The Group timely monitors, analyses and reports capital adequacy ratios, assesses if the capital management objectives have been met and exercises effective management of capital adequacy ratio s. The Group adopts various measures such as controlling asset growth, adjusting the structure of risk assets, increasing internal capital supply and raising capital through external channels, to ensure that the Common Equity Tier 1 ratio, Tier 1 ratio and Total capital ratio of the Group are in full compliance with regulatory requirements and meet internal management requirements. This helps to insulate against potential risks as well as support healthy business developments. The Group now fully complies with all regulatory requirements in this respect. The Group’s capital planning has taken the regulatory requirements, the Group’s development strategy and risk appetite into consideration, and based on those factors the Group projects the capital usage and need. The capital raising management of the Group involves reasonable utilisation of various capital instruments to ensure that both external regulatory and internal capital management objectives are met, taking into account capital planning and operating enviro nment. This helps to optimise the Group's capital structure. The Bank is required to calculate and disclose capital adequacy ratios in accordance with the Rules on Capital Management of Commercial Banks . Based on the scope of Rules on Capital Management of Commercial Banks as approve by regulators, the Bank measures: 1) credit risk exposure of eligible financial institutions and capital requirements for corporate credit risk exposure using preliminary internal rating approach; 2) capital requirements for retail credit risk exposure using advanced internal rating approach; 3) credit risk that has not been covered by internal rating approach using weighted approach; 4) market risk capital requirements using standard approach; and 5) operational risk capital requirements using standard approach. The Group calculates capital adequacy ratios using both advanced approach and other approaches for capital measurement in accordance with regulatory requirements and is in compliance with relevant requirements for capital floors.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 185 57 Risk management (continued) (8) Capital management (continued) The Group’s capital adequacy ratio s calculated in accordance with the Rules on Capital Management of Commercial Banks issued by the NFRA as at the end of the reporting period are as follows: Note 30 June 2026 31 December 2025 Common Equity Tier 1 ratio (a)(b) 14.24% 14.63% Tier 1 ratio (a)(b) 15.15% 15.47% Total capital ratio (a)(b) 19.42% 19.69% Common Equity Tier 1 capital: instruments and reserves - Qualifying common share capital and capital reserve 490,891 490,687 - Surplus reserve 434,687 434,687 - General reserve 586,673 586,449 - Retained earnings 2,040,460 1,929,943 - Accumulated other comprehensive income 28,566 26,669 - Non-controlling interest given recognition in Common Equity Tier 1 capital 4,651 4,271 Common Equity Tier 1 capital: regulatory adjustments - Goodwill (net of deferred tax liabilities) 1,964 2,061 - Other intangible assets (excluding land use rights) (net of deferred tax liabilities) 4,316 4,970 - Net deferred tax assets relying on future profitability and arising from operating losses 16 - - Cash flow hedge reserves that relate to the hedging of items that are not fair valued on the balance sheet 564 823 - Directly or indirectly investments in own shares 2 - Additional Tier 1 capital: instruments - Qualifying Additional Tier 1 instruments 229,977 199,977 - Non-controlling interest given recognition in Additional Tier 1 capital 151 142 Additional Tier 1 capital: regulatory adjustments - Significant investments in the Additional Tier 1 capital of financial institutions outside the regulatory scope of consolidation 1,140 1,188 Tier 2 capital: instruments and provisions - Qualifying Tier 2 instruments 698,513 638,904 - Non-controlling interest given recognition in Tier 2 capital 247 229 - Provisions in Tier 2 373,177 360,510 Common Equity Tier 1 capital (c) 3,579,066 3,464,852 Tier 1 capital (c) 3,808,054 3,663,783 Total capital (c) 4,879,991 4,663,426 Risk-weighted assets (d) 25,132,550 23,685,171
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 186 57 Risk management (continued) (8) Capital management (continued) Notes: (a) The Common Equity Tier 1 ratio is calculated by dividing the Common Equity Tier 1 Capital after deduction by risk -weighted assets. Tier 1 ratio is calculated by dividing the Tier 1 Capital after deduction by risk -weighted assets. Total capital ratio is cal culated by dividing the Total capital after deduction by risk-weighted assets. (b) The scope for calculating capital adequacy ratio s of the Group includes all the domestic and overseas branches and subsidiaries in the financial sector (excluding insurance companies). (c) Common Equity Tier 1 capital is calculated by netting off the corresponding deduction items from the Common Equity Tier 1 capital before regulatory adjustments. Tier 1 capital is calculated by netting off the corresponding deduction items from the Tier 1 capital before regulatory adjustments . Total capital is calculated by netting off the corresponding deduction items from the Total capital before regulatory adjustments. (d) Risk-weighted assets after applying capital floor requirements and making necessary adjustments.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 187 58 Statement of financial position and statement of changes in equity of the Bank 30 June 2026 31 December 2025 (Unaudited ) (Audited ) Assets: Cash and deposits with central banks 2,610,296 3,038,074 Deposits with banks and non-bank financial institutions 146,978 146,067 Precious metals 198,488 189,826 Placements with banks and non-bank financial institutions 917,134 923,962 Positive fair value of derivatives 71,538 46,766 Financial assets held under resale agreements 237,544 840,850 Loans and advances to customers 28,023,342 26,517,673 Financial investments Financial assets measured at fair value through profit or loss 602,358 566,403 Financial assets measured at amortised cost 8,525,307 7,671,704 Financial assets measured at fair value through other comprehensive income 4,124,292 3,985,259 Long-term equity investments 103,199 103,054 Investments in consolidated structured entities 20,497 30,186 Fixed assets 102,210 103,617 Construction in progress 2,677 5,752 Land use rights 10,706 11,036 Intangible assets 3,964 4,565 Deferred tax assets 140,908 135,806 Other assets 355,535 263,905 Total assets 46,196,973 44,584,505
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 188 58 Statement of financial position and statement of changes in equity of the Bank (continued) 30 June 2026 31 December 2025 (Unaudited ) (Audited ) Liabilities: Borrowings from central banks 1,477,901 1,096,265 Deposits from banks and non-bank financial institutions 4,272,272 4,265,513 Placements from banks and non-bank financial institutions 372,064 423,839 Financial liabilities measured at fair value through profit or loss 340,913 299,023 Negative fair value of derivatives 42,419 87,305 Financial assets sold under repurchase agreements 1,395,700 1,447,531 Deposits from customers 31,429,153 30,467,754 Accrued staff costs 59,949 63,845 Taxes payable 26,269 28,690 Provisions 24,292 25,456 Debt securities issued 2,794,233 2,547,523 Deferred tax liabilities 163 193 Other liabilities 258,444 260,911 Total liabilities 42,493,772 41,013,848
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 189 58 Statement of financial position and statement of changes in equity of the Bank (continued) 30 June 2026 31 December 2025 (Unaudited ) (Audited ) Equity: Share capital 261,600 261,600 Other equity instruments Preference shares 59,977 59,977 Perpetual bonds 170,000 140,000 Capital reserve 228,177 228,179 Other comprehensive income 35,882 27,876 Surplus reserve 434,687 434,687 General reserve 573,299 573,292 Retained earnings 1,939,579 1,845,046 Total equity 3,703,201 3,570,657 Total liabilities and equity 46,196,973 44,584,505 Approved and authorised for issue by the Board of Directors on 28 August 2026. Zhang Jinliang Zhang Yi Yin Pengfei Chairman and executive director Vice chairman, executive Person in charge of finance& director and president accounting department
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 190 58 Statement of financial position and statement of changes in equity of the Bank (continued) CY (Unaudited) Share capital Other equity instruments Capital reserve Other comprehensive income Surplus reserve General reserve Retained earnings Total equity Preference shares Perpetual bonds As at 1 January 2026 261,600 59,977 140,000 228,179 27,876 434,687 573,292 1,845,046 3,570,657 Movements during the period - - 30,000 (2 ) 8,006 - 7 94,533 132,544 (1)Total comprehensive income for the period - - - - 8,006 - - 148,415 156,421 (2)Changes in share capital i.Capital injection by other equity instruments holders - - 30,000 (2 ) - - - - 29,998 (3)Profit distribution i.Appropriation to general reserve - - - - - - 7 (7 ) - ii.Dividends to ordinary shareholders - - - - - - - (53,079 ) (53,079 ) iii.Dividends to other equity instrument holders - - - - - - - (796 ) (796 ) As at 30 June 2026 261,600 59,977 170,000 228,177 35,882 434,687 573,299 1,939,579 3,703,201
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 191 58 Statement of financial position and statement of changes in equity of the Bank (continued) PY (Unaudited) Share capital Other equity instruments Capital reserve Other comprehensive income Surplus reserve General reserve Retained earnings Total equity Preference shares Perpetual bonds As at 1 January 2025 250,011 59,977 100,000 134,802 64,560 402,196 522,757 1,708,688 3,242,991 Movements during the period 11,589 - 40,000 93,377 (14,328 ) - 9 103,991 234,638 (1)Total comprehensive income for the period - - - - (14,328 ) - - 155,502 141,174 (2)Changes in share capital i.Capital injection by shareholders 11,589 - - 93,380 - - - - 104,969 ii.Capital injection by other equity instruments holders - - 40,000 (3 ) - - - - 39,997 (3)Profit distribution i.Appropriation to general reserve - - - - - - 9 (9 ) - ii.Dividends to ordinary shareholders - - - - - - - (51,502 ) (51,502 ) As at 30 June 2025 261,600 59,977 140,000 228,179 50,232 402,196 522,766 1,812,679 3,477,629
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 192 58 Statement of financial position and statement of changes in equity of the Bank (continued) (Audited) Share capital Other equity instruments Capital reserve Other comprehensive income Surplus reserve General reserve Retained earnings Total equity Preference shares Perpetual bonds As at 1 January 2025 250,011 59,977 100,000 134,802 64,560 402,196 522,757 1,708,688 3,242,991 Movements during the year 11,589 - 40,000 93,377 (36,684 ) 32,491 50,535 136,358 327,666 (1)Total comprehensive income for the year - - - - (36,684 ) - - 324,911 288,227 (2)Changes in share capital i.Capital injection by shareholders 11,589 - - 93,380 - - - - 104,969 ii.Capital injection by other equity instruments holders - - 40,000 (3 ) - - - - 39,997 (3)Profit distribution i.Appropriation to surplus reserve - - - - - 32,491 - (32,491 ) - ii.Appropriation to general reserve - - - - - - 50,535 (50,535 ) - iii.Dividends to ordinary shareholders - - - - - - - (100,107 ) (100,107 ) iv.Dividends to other equity instrument holders - - - - - - - (5,420 ) (5,420 ) As at 31 December 2025 261,600 59,977 140,000 228,179 27,876 434,687 573,292 1,845,046 3,570,657
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 193 59 Events after the reporting period On 24 July 2026, the Group completed the issuance of RMB60.00 billion ten -year, fixed- rate Tier 2 capital bonds with a coupon rate of 1.88% , and the issuer shall have a conditional redemption right at the end of the fifth year. On 24 August 2026, the Group completed the issuance of RMB50.00 billion total loss-absorbing capacity (“TLAC”) non- capital bonds, which consisted of two types: 1) RMB35. 00 billion four -year, fixed-rate bond with a coupon rate of 1.68% and the issuer shall have a conditional redemption right at the end of the third year; 2) RMB15.00 billion six -year, fixed-rate bond with a coupon rate of 1.80% and the issuer shall have a conditional redemption right at the end of the fifth year. On 10 August 2026, the Group exercised its right to redeem all RMB65.00 billion fixed - rate Tier 2 capital bonds issued in the domestic market on 6 August 2021 with a coupon rate of 3.45%. 60 Comparative figures The presentation of certain comparative figures ha s been adjusted to conf orm with the presentation and disclosures in the current period. 61 Ultimate parent As stated in Note 1, the immediate and ultimate parents of the Group are Huijin and CIC, respectively.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 194 62 Possible impact of amendments, new standards and interpretations issued but not yet effective Up to the date of issue of the financial statements, the IASB has issued the following amendments, new standards and interpretations which are relevant to the Group. These amendments, new standards and interpretations are not yet effective for the period ended 30 June 2026 and have not been adopted in the financial statements. Standards Effective for annual periods beginning on or after (1) Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Effective date has been deferred indefinitely (2) IFRS 18 Presentation and Disclosure in Financial Statements (New) 1 January 2027 (3) IFRS 19 Subsidiaries without Public Accountability: Disclosures (New) 1 January 2027 (4) Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures 1 January 2027 (5) Amendments to IAS 21 Translation to a Hyperinflationary Presentation Currency 1 January 2027 (6) IFRS 20 Regulatory Assets and Regulatory Liabilities (New) 1 January 2029 (7) Amendments to IAS 28 the Fair Value Option for Investments in Associates and Joint Ventures Applied when an entity first applies IFRS 18 The Group anticipates that the adoption of the new standards and amendments will not have a significant impact on the Group’s consolidated financial statements.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 195 62 Possible impact of amendments, new standards and interpretations issued but not yet effective (continued) (1) Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The narrow-scope amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures clarify the accounting treatment for sales or contribution of assets between an investor and its associates or joint ventures. They confirm that the accounting treatment depends on whether the non -monetary assets sold or contributed to an associate or joi nt venture constitute a “business” (as defined in IFRS 3 “Business Combinations”). Where the non -monetary assets constitute a business, the investor will recognise the full gain or loss on the sale or contribution of assets. If the assets do not meet the definition of a business, the gain or loss is recognised by the investor only to the extent of the other investor’s interests in the associate or joint venture. The amendments apply prospectively. (2) IFRS 18 Presentation and Disclosure in Financial Statements (New) The IASB issued IFRS 18 Presentation and Disclosure in Financial Statements, replacing IAS 1 Presentation of Financial Statements . Compared with the current IAS 1, the new requirements in IFRS 18 mainly include: introducing three new categories for income and expenses – operating, investing and financing – to improve the structure of the income statement; requiring the disclosures o f management -defined performance measures to improve the transparency of performance indicators defined by management; and strengthening information aggregation and disaggregation to further improve the usefulness of information in financial statements in decision-making. (3) IFRS 19 Subsidiaries without Public Accountability: Disclosures (New) The IASB issued IFRS 19 Subsidiaries without Public Accountability: Disclosures, which allows voluntary adoption by eligible subsidiaries to reduce the cost of preparing their own financial statements. IFRS 19 is a disclosure-only standard which specifies reduced disclosure requirements that eligible subsidiaries are permitted to apply instead of the disclosure requirements in other IFRS Accounting Standards (except in exceptional circumstances). However, such eligible subsidiaries should still apply the recognition, measurement and presentation requirements in other IFRS Accounting Standards. IFRS 19 allows an eligible subsidiary to voluntarily apply or revoke its election to apply the standard. An entity may apply IFRS 19 more than once – for example, an entity that applied IFRS 19 in a prior period but not in the immediately preceding period may elect to apply IFRS 19 in the current period.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 196 62 Possible impact of amendments, new standards and interpretations issued but not yet effective (continued) (4) Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures The IASB issued Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures. The amendments reduce disclosure requirements for new and amended IFRS Accounting Standards issued between February 2021 and May 2024, which had previously been included in full in IFRS 19. The main disclosure requirements which are now reduced include: (i) remove disclosure objectives from IFRS 19; (ii) reduce the disclosure requirements relating to supplier finance arrangements and a specific class of financial liabilities; and (iii) replace disclosure requirements relating to management -defined performance measures with a cross - reference to IFRS 18 for entities that use these measures. (5) Amendments to IAS 21 Translation to a Hyperinflationary Presentation Currency The IASB issued Amendments to IAS 21 Translation to a Hyperinflationary Presentation Currency, which require translation from a non-hyperinflationary functional currency into a hyperinflationary presentation currency at the closing rate. The amendments also require an entity whose functional currency and presentation currency are the currency of a hyperinflationary economy to restate the comparative amounts of a foreign operation whose functional currency is that of a non-hyperinflationary economy, by applying the general price index, in accordance with paragraph 34 of IAS 29 Financial Reporting in Hyperinflationary Economies , to the foreign operation’s comparative figures. The amendments introduce certain additional disclosures. The amendments apply for annual periods beginning on or after 1 January 2027 and earlier application is permitted.
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China Construction Bank Corporation Notes to the financial statements (Expressed in millions of RMB, unless otherwise stated) 197 62 Possible impact of amendments, new standards and interpretations issued but not yet effective (continued) (6) IFRS 20 Regulatory Assets and Regulatory Liabilities (New) The IASB issued IFRS 20 Regulatory Assets and Regulatory Liabilities. IFRS 20 sets out the requirements for the recognition, measurement, presentation and disclosure of regulatory assets, regulatory liabilities, regulatory income and regulatory expense. IFRS 20 introduces requirements that will result in information that supplements the information an entity already provides by applying IFRS Accounting Standards, including IFRS 15 Revenue from Contracts with Customers . Such information enables users of financial statements to understand the total allowed compensation for regulatory goods or services supplied in each reporting period and the related rights and obligations. The income, expenses, assets and liabilities an entity reports by applying IFRS 20 supplement, but do not replace, the information the entity provides by applying IFRS 15 and other IFRS Accounting Standards. (7) Amendments to IAS 28 the Fair Value Option for Investments in Associates and Joint Ventures The IASB issued Amendments to the Fair Value Option for Investments in Associates and Joint Ventures. The amendments clarify which entities can apply the fair value option in IAS 28 Investments in Associate s and Joint Ventures . The amendments respond to stakeholder feedback highlighting diversity in practice in applying the fair value option and how this interacts with the classification requirements introduced by IFRS 18. The amendments do not change the requirements in IFRS 18 for the classification of income and expenses. The classification of income and expenses arising from investments in associates and joint ventures measured at fair value, is determined by applying paragraphs 53 and 55 of IFRS 18, including the assessment of whether the reporting entity has a main business activity of investing in associates, joint ventures and unconsolidated subsidiaries. The amendments are applied when an entity first applies IFRS 18. If an entity elects to apply IFRS 18 for an earlier period, the amendments are applied consistently with that early application. However, if IFRS 18 is applied early for a period beginning be fore the issuance of the amendments, entities apply the amendments for the first reporting period ending on or after their issuance.
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Unaudited supplementary financial information (Expressed in millions of RMB unless otherwise stated) 1 The following information of the Group does not form part of the reviewed financial statements, and is included herein for information purposes only. 1 Difference between the financial statements prepared under IFRS Accounting Standards and those prepared in accordance with PRC GAAP China Construction Bank Corporation (the “Bank”) prepares consolidated financial statements, which include the financial statements of the Bank and its subsidiaries (collectively the “Group”), in accordance with IFRS Accounting Standards and its interpretations promulgated by the International Accounting Standards Board and the applicable disclosure provisions of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. As a financial institution incorporated in the People’s Republic of China (the “PRC”) and listed on the Shanghai Stock Exchange, the Group also prepares its consolidated financial statements for the six months ended 30 June 2026 in accordance with the Accounting Standards for Business Enterprises and other relevant regulations issued by the regulatory bodies of the PRC (collectively “PRC GAAP and regulations”). There is no difference in the net profit for the six months ended 30 June 2026 or total equity as at 30 June 2026 between the Group’s consolidated financial statements prepared under IFRS Accounting Standards and those prepared under PRC GAAP and regulations.
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Unaudited supplementary financial information (Expressed in millions of RMB unless otherwise stated) 2 2 Currency concentrations 30 June 2026 USD (RMB equivalent) HKD (RMB equivalent) Others (RMB equivalent) Total Spot assets 1,180,245 363,861 551,176 2,095,282 Spot liabilities (1,001,877 ) (570,694 ) (345,769 ) (1,918,340 ) Forward purchases 1,996,127 533,095 496,992 3,026,214 Forward sales (2,188,376 ) (273,309 ) (672,547 ) (3,134,232 ) Net option position (294 ) (131 ) (36 ) (461 ) Net (short)/long position (14,175 ) 52,822 29,816 68,463 Net structural position 58,834 3,435 136 62,405 31 December 2025 USD (RMB equivalent) HKD (RMB equivalent) Others (RMB equivalent) Total Spot assets 1,046,547 355,121 501,900 1,903,568 Spot liabilities (1,047,201 ) (607,080 ) (325,064 ) (1,979,345 ) Forward purchases 3,388,012 544,604 354,980 4,287,596 Forward sales (3,395,800 ) (252,624 ) (504,594 ) (4,153,018 ) Net option position (4,132 ) (6 ) (207 ) (4,345 ) Net (short)/long position (12,574 ) 40,015 27,015 54,456 Net structural position 57,175 2,126 578 59,879 The net option position is calculated using the delta equivalent approach required by the Hong Kong Monetary Authority (the “HKMA”). The net structural position of the Group includes the structural positions of the Bank’s overseas branches, banking subsidiaries and other subsidiaries substantially involved in the foreign exchange. Structural assets and liabilities include: - investments in property and equipment, net of accumulated depreciation; - capital and statutory reserves of overseas branches; and - investments in overseas subsidiaries and related companies.
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Unaudited supplementary financial information (Expressed in millions of RMB unless otherwise stated) 3 3 International claims The Group is principally engaged in business operations within the Chinese mainland. The international claims of the Group are the sum of cross -border claims in all currencies and local claims in foreign currencies. International claims include loans and advances to customers, deposits with central banks, deposits and placements with banks and non-bank financial institutions, holdings of trade bills and certificates of deposit and investment securities. International claims have been disclosed by country or geographical area. A country or geographical area is reported where it constitutes 10% or more of the aggregate amount of international claims, after taking into account any risk transfers. Risk transf ers are only made if the Group reduces its exposure to a particular country/region by an effective transfer of credit risk to a different country/region with the use of credit risk mitigation which include guarantees, collateral and credit derivatives. 30 June 2026 Banks Public sector entities Non-bank private institutions Others Total Asia Pacific 423,874 148,013 637,896 66,650 1,276,433 - of which attributed to Hong Kong 42,864 37,163 313,723 17,532 411,282 Europe 120,762 84,515 90,521 534 296,332 North and South America 51,420 180,046 103,932 394 335,792 Total 596,056 412,574 832,349 67,578 1,908,557 31 December 2025 Banks Public sector entities Non-bank private institutions Others Total Asia Pacific 392,688 193,606 588,934 48,815 1,224,043 - of which attributed to Hong Kong 37,025 53,329 309,683 8,316 408,353 Europe 49,839 56,254 92,551 - 198,644 North and South America 26,445 227,759 78,193 - 332,397 Total 468,972 477,619 759,678 48,815 1,755,084
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Unaudited supplementary financial information (Expressed in millions of RMB unless otherwise stated) 4 4 Overdue loans and advances to customers by geographical sector 30 June 2026 31 December 2025 Pearl River Delta 70,464 72,352 Bohai Rim 51,121 45,324 Central 47,819 44,392 Western 44,552 40,116 Yangtze River Delta 44,133 37,395 Head office 16,611 16,785 North-eastern 15,088 13,755 Overseas 4,680 6,623 Total 294,468 276,742 According to regulatory requirements, the above analysis represents the gross amount of loans and advances to customers overdue for more than three months. Loans and advances to customers with a specific repayment date are classified as overdue when the principal or interest is overdue. Loans and advances to customers repayable on demand are classified as overdue when a demand for repayment has been served on the borrower but repayment has not been made in accordance with the instructions. If the loans and advances to customers repayable on demand are outside the approved limit that was advised to the borrower, they are also considered to be overdue. 5 Exposures to non-banks in the Chinese mainland The Bank is a commercial bank incorporated in the Chinese mainland with its banking business primarily conducted in the Chinese mainland . As at 30 June 2026 , substantial amounts of the Bank’s exposures arose from businesses with the Chinese mainland entities or individuals. Analyses of various types of exposures by counterparty have been disclosed in the respective notes to the financial statements.