Financial Highlights for 2013:

l Total assets surpassed RMB 15 trillion, up 9.95% over 2012.

l Profit before tax reached RMB 279,806 million, up 11.28% over 2012. Net profit increased by 11.12% to RMB 215,122 million from 2012.  

l Operating income increased by 10.51% to RMB 511,140 million over 2012.Net interest income increased by 10.29%, and net interest margin was 2.74%.

l Asset quality remained stable. Non-performing loan ratio was 0.99% and the ratio of allowances for impairment losses to non-performing loans was 268.22%.

l The Board recommends a cash dividend for 2013 of RMB 0.30 per share.

Beijing, 30 March 2014 – China Construction Bank Corporation (Hong Kong stock code: 939, Shanghai stock code: 601939; CCB or the “Bank”) today announced its operating performance for 2013 (note: unless otherwise stated, the data herein are calculated in accordance with International Financial Reporting Standards on a consolidated basis in RMB). As at the end of December 2013, CCB’s total assets increased by9.95% from 2012 to 15,363,210 million. Profit before tax reached 279,806 million, up 11.28% over 2012, and net profit grew by 11.12% to 215,122 million. The Bank’s return on average assets and the return on average equity were 1.47% and 21.23%, respectively. On account of strong business performance, the Board recommends a cash dividend of 0.30 per share for 2013.

In 2013, CCB adhered to prudence in operations, supported the real economy and accelerated its strategic transformation. The Bank realized growth while ensuring stability in operating results and market performance, and achieved good results despite complex economic situations. The Bank realized an operating income of 511,140 million, representing an increase of 10.51% over 2012. Of this amount, net interest income grew by 10.29%, and net interest margin was 2.74%. The Bank’s gross loans and advances to customers increased by 14.35% over 2012 to 8,590,057 million, and deposits from customers rose by 7.76% to 12,223,037 million from 2012. Asset quality continued to be stable. Non-performing loan ratio was 0.99%, which remained unchanged from 2012, and the ratio of allowances for impairment losses to non-performing loans stood at 268.22%. The Bank’s total capital ratio and common equity tier-one ratio were 13.34% and 10.75%, respectively.

Optimized the allocation of new financial resources and adjusted that of existing ones

As the results indicated, CCB maintained its strengths in traditional businesses while recording rapid development in emerging businesses. Over the course of 2013, the Bank accelerated adjustments of business structure in response to changes in macro-economic policies. In credit lending, the Bank strengthened support to selected sectors, including advanced manufacturing, modern services, cultural industries and strategic emerging sectors. 

Firstly, the Bank’s advantages in traditional businesses remained strong. The increase of loans to infrastructure accounted for 43.89% of the increase in corporate loans, and these were mainly granted to support key areas and major projects in the development of the national economy, with a view to boosting economic growth and industry upgrades.

Secondly, CCB enhanced support to small and micro businesses. In 2013, loans to small and micro businesses rose by 15.89%, and a total of 909,722 million loans were granted to 155,600 small and micro businesses. The Bank also provided settlement services for more than two million small and micro businesses.

Thirdly, CCB gave high priority to granting loans to sectors closely related to the wellbeing of domestic communities. Domestic personal loans increased by 446,828 million, or 22.14% over 2012, to 2,464,654 million. Of this amount, residential mortgages, which were primarily granted to support the financing needs for residential purposes, rose by 22.99% to 1,880,219 million and ranked first among peers in loan balance. Loans for personal needs in consumption and business operation were mainly granted to meet the citizens’ spending needs in small and micro businesses as well as in sectors closely related to their wellbeing. A number of innovative products, such as the personal business loans on “e.ccb.com” (the Bank’s e-commerce platform), were also launched. As of at the end of 2013, CCB’s personal consumer loans reached 71,490 million and personal business loans totaled 91,655 million.

Fourthly, the Bank’s emerging businesses grew rapidly. By the end of 2013, CCB had issued a total number of 52.01 million credit cards, leading the market in the number of newly issued cards and increasing the loan balance of cards by 50.99% over 2012. Underwriting of debt securities amounted to 342,486 million, ranking first among peers in the underwriting volume for three consecutive years. The number of contracted corporate customers in the pension business exceeded 20,000, and multiple indicators, such as the increase in pension assets under custody and growth in account management, led the market. The volume of cross-border RMB settlement exceeded 900 billion, representing a growth of 54.04% from 2012. The ratio of the volume in accounting transactions through electronic banking and self-service channels to the total volume of accounting transactions in all channels surged to 85.40%. The number of personal online banking customers and mobile phone banking customers increased to 150 million and 117 million, respectively.  

Achieved progress while ensuring stability, accelerated strategic transformation

Adhering to a strategy of “integration, multifunction and intensiveness”, CCB gained breakthroughs in key areas of strategic transformation and the Bank’s comprehensive financial service capabilities were further enhanced. The Bank completed an acquisition agreement with Shanghai Liangmao Futures, taking market leadership position in the number of non-banking financial licenses. Key business indicators of the Bank’s affiliated life insurance and trust companies ranked first among peers of large banks. Furthermore, the Bank’s overseas network expanded rapidly, and the year witnessed the set-up of six branches or subsidiaries in Russia, Dubai, Taipei, Osaka, and Luxembourg respectively. The Bank also concluded an M&A agreement with Banco Industrial e Comercial S.A. of Brazil, and effectively integrated the banking outlets and resources in Hong Kong. As a result, total assets of CCB’s overseas entities increased by over 40%. In addition, the bank effectively integrated its customers, operations, resources and technology. During the year, CCB completed the separation of front desk and back office for 28 categories of counter businesses in 14,000 operating entities. With continued efforts in the integration of functions, frontline staff and marketing teams at outlets (the “three integrations”), customers can now have their financial needs met at any counter of the outlets transformed and enjoy a “one-stop” experience with the Bank’s comprehensive financial services.

Stabilised asset quality and controlled risks

As indicated in the annual results of 2013, CCB’s reform of risk management mechanisms and its adjustment of credit mechanisms produced initial but positive results, and the Bank’s risk management capability continued to be improved. In a period of economic restructuring when growth of the economy slowed down, risk factors invariably emerged. Nonetheless, the Bank seized this opportunity to reform its credit mechanisms, and completed the reforms and adjustments of risk management, credit mechanisms and credit procedures, while balancing the needs for risk prevention and performance efficiency. The Bank also installed a new model of whole process risk management that enables collaboration between business sectors, the up-streams and the down-streams, as well as between domestic and overseas businesses. This has helped the Bank to strengthen its regulation of high-risk areas and ensured that all risks were under control.

As the results demonstrated, CCB has succeeded in maintaining stable asset quality as well as achieving an expanding asset scale. The Bank has provided sufficient allowances for impairment losses, and its ability to manage risk was further enhanced. In the months of June and December of 2013, despite temporary fluctuations of interest rates in the money market, the Bank managed to maintain a reasonable level of liquidity, and ensured safety in payment and settlement in the capacity of a “market stabilizer”.

Commenting on the complex economic situations and the challenges of reforms ahead in 2014, Wang Hongzhang, Chairman of China Construction Bank, said that CCB would proactively seize the valuable opportunities brought forward by China’s deepening of reforms in all aspects; the Bank would reform and optimize its governance systems and mechanisms, vigorously advance its strategic transformation, drive growth by innovation, continue to improve its suite of financial services, boost its ability to create value, and endeavor to become an innovative bank that is “best in China and first class internationally”.

About China Construction Bank Corporation

China Construction Bank Corporation, established in October 1954 and headquartered in Beijing, is a large and leading joint-stock commercial bank in China and a well-known brand in overseas markets. The Bank was listed on Hong Kong Stock Exchange in October 2005, and was listed on the Shanghai Stock Exchange in September 2007. As at the end of 2013, the market capitalization of the Bank reached USD 187.8 billion, ranking fifth among all listed banks in the world. The Bank upholds an operating philosophy of “customers-centric and market-oriented”, adheres to a strategic direction featuring “integration, multifunction and intensiveness”, and strives to provide customers with premium, efficient, comprehensive and modern financial services by accelerating and achieving innovation across products, channels and service models.