2015 annual results announcement - ccb · this information was prepared by the china construction...

2015 Annual Results Announcement

Beijing / Hong Kong

Disclaimer

This information was prepared by the China Construction Bank Corporation (“CCB” or the

“Bank”), without being independently verified. This information is not to express or imply any

representation or warranty, accuracy, fairness or integrity of the information expressed or contained

and the information is not and should not be relied upon. The advisors or representatives will not bear

any responsibility as expressed in this information or any information contained in any manner

whatsoever for any loss caused by the Bank and any of its affiliates, advisors or representatives. Please

do not rely on any forward-looking statements, information or language of such nature contained

herein.

2China Construction Bank 2015 Annual Result Announcement

Key Financials

3

RMB (billion) 31 December 2015 31 December 2014 Y-o-Y Change

Total assets 18,349.5 16,744.1 9.6%

Loans and advances to customers

10,485.1 9,474.5 10.7%

Total liabilities 16,904.4 15,492.2 9.1%

Deposits from customers 13,668.5 12,899.2 6.0%

Capital adequacy ratio 15.39% 14.86% 0.53pps

January - December 2015 January - December 2014 Y-o-Y Change

Net interest income 457.8 437.4 4.7%

Net fee and commission income

113.5 108.5 4.6%

Net profit 228.9 228.2 0.3%

Earnings per share RMB0.91 RMB0.91 Even

Cost to income ratio 27.02% 28.92% 1.9pps

China Construction Bank 2015 Annual Result Announcement

Transformation and Development

Financial Performance

Risk Management

Outlook

12,281.8 13,972.8

15,363.2 16,744.1

18,349.5

0.0

2,000.0

4,000.0

6,000.0

8,000.0

10,000.0

12,000.0

14,000.0

16,000.0

18,000.0

20,000.0

2011 2012 2013 2014 2015

Total Assets

Outstanding achievements during 12th Five-year Plan period

5

Total assets up by 70% with a 11.2% CAGR

RMB(Billion)

Total net profit amounted to RMB 1.04 trillion, dividends reached nearly RMB 345 billion

59.1 67.0 75.0 75.3 68.5

169.4193.6

215.1228.2 228.9

0.0

50.0

100.0

150.0

200.0

250.0

2011 2012 2013 2014 2015Dividends Net Profit


RMB(Billion)

Pushed forward with strategic transformation

6

Based on five principles Seven focus points for the Bank’s transformation


I n t e g r a t e d o p e r a t i o n s

M u l t i - f u n c t i o n a l s e r v i c e s

I n t e n s i v e d e v e l o p m e n t

I n n o v a t i v e b a n k

S m a r t b a n k

Assets & liabilities

Management of assets and liabilities as a bank

Management of assets and liabilities on a consolidated basis as a group

Wholesale business

Deposit, loan and transfer services

Integrated customer services

Retail business Personal business Integrated retail business

on a consolidated basis

Electronic banking Traditional services Comprehensive e-

banking

Asset management

Deposit and loan businesses

Deposit & loan + asset management

Subsidiaries’ products & services

few types of product Diversify

International business

Traditional servicesIntegrated, internationalized, efficient and quality services

Promoted operation and management of assets and liabilities on a consolidated basis

7

Significant achievements in managing assets and liabilities on a consolidated basis Transformation and development measures


9.6%

16.5%

40.7%

6.0%

9.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

1 2 3 4 5 6Asset

growthAsset

growth of overseas commercial banks

Asset growth of integrated

subsidiaries

Deposit growth

Growth of integrated liabilities

Proactive expansion on customers’ financial assets

Maintained stable growth of deposits

Diversified sources of liability

Launched a system to consolidate the planning and management of assets and liabilities

Strategies for promoting the operation and management of assets

Strategies for promoting the operation and management of liabilities

Integrated assets

Integrated liabilities

Integrated financial services

Expanded integrated asset business

Strengthened integrated financial services capability

Strengthened collaborative development within the Group

Continued to reinforce the strengths of the wholesale business

8

Continuous growth in infrastructure loans Visible achievements in the “Three Integrateds” for corporate customers


The number of pilot corporate customers for integrated pricing increased to 4,639

RMB (Billion)Improved integrated marketing capability

Improved integrated service capability

Expanded integrated pricing scope

Strengthened collaboration between departments, the Bank and its subsidiaries, and between branches in different regions

Head office helped to implement over 500 major marketing projects

Designed integrated financial service plans for customers

Invested insurance funds in commercial and industrialsectors

Built a corporate-oriented e-finance service system

44.4% 46.9%

2,559.2 2,707.8

0

1000

2000

3000

0%

20%

40%

60%

80%

100%

2014-12-31 2015-12-31Infrastructure loans as % of domestic corporate loans …Infrastructure loan balance

Built a leading retail bank

9

Ranks first among peers in personal housing finance

Total credit card issuance amounted to RMB 80.74 million


RMB(Billion)

1,183.3

1,510.4

2,253.8

2,773.9

0

500

1,000

1,500

2,000

2,500

3,000

2014-12-31 2015-12-31Personal provident housing loan balanceResidential mortgages balance

1,658.1

2,218.3

18.7

22.9

0

6

12

18

24

30

0

500

1000

1500

2000

2500

2014 2015Volume of customer transactionIntermediate business income

RMB(Billion)

Built a comprehensive internet finance service system


Comprehensive internet finance service system

Three online channels

Three life services platforms Smart applications

Three internet product lines

Online banking

Mobile banking

WeChat banking

Internet payment

Internet wealth management

Internet financing

Smart customer services robots

Smart banks

E.ccb.com

“Joy Life”

“Wonderful Life”

Maintained a leading position in bond underwriting for five consecutive years

Established a trail transport PPP fund and urbanization-related fund

One of the first banks to provide an agency service for the Mainland - Hong Kong Mutual Recognition of Funds

55.3

93.9

384

456

200

250

300

350

400

450

500

20.0

40.0

60.0

80.0

100.0

2014-12-31 2015-12-31

Assets under custody Personal accounts in operation

(in 10,000)

Developed asset management business

11

Steady growth in personal pension accounts and assets under custody

New breakthroughs in consolidated management of assets


RMB(Billion)

Amount of assets under custody exceeded RMB 7 trillion

Balance of wealth management products exceeded RMB 1.6 trillion, making a new record high in terms of scale

Constructed an integrated operation platform

12

Rapid growth in assets and profit of integrated operation subsidiaries

Outperformed peers in integrated operation licenses


RMB(Billion)

2.46

3.90

189.5

266.6

0.0

50.0

100.0

150.0

200.0

250.0

300.0

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

5.0

2014-12-31 2015-12-31

Net profit Total assets

CCB pension management company was founded

CCB insurance asset management company received approval to be established

CCB Trust ranked first in the sector with its trust assets under management exceeding RMB 1 trillion

CCB Life ranked first in the banking industry in terms of premium income

CCB Financial Leasing topped the list for the amount of leasing assets invested in leasing services

CCB International was a leading player in a number of securities sponsoring and underwriting projects plus M&A financial advisory projects

Total volume of funds managed by CCB Principal Asset Management reached RMB 686.3 billion

CCB Futures received approval to practice asset management

Improved global network for financial services


瑞士Switzerland

荷兰Netherlands美国

USA加拿大Canada

开曼群岛Cayman Islands

巴西Brazil

爱尔兰Ireland

西班牙Spain

法国France

英国UK

卢森堡Luxembourg

意大利Italy

南非South Africa

德国Germany

俄罗斯Russia

阿联酋UAE

韩国Korea

日本Japan

新加坡Singapore

香港Hong Kong

澳门Macau

台北Taipei

澳大利亚Australia

新西兰New Zealand

Over 130 overseas outlets across 25 countries and regions

Clearing network covers 43 countries and regions

Financing services cover 139 countries and regions

越南Vietnam

Promoted intensive development, innovation and smart banking

14

Continuously improved the business process Built an innovative and smart bank


Asset management business centresBanking business centresFinancial market trading centres

Significant achievements in the development of the three integrated outlets

Integrated outlets totaled 14,500 covering 98% of the countryIntegrated tellers accounted for 89%21,532 integrated marketing teams were established

Established specialized operation centres

Phase II of the “New Generation Core Banking System” was successfully put into operation and provided 4,465 business functions

Accelerated the development of innovative banks

Completed 1,970 product innovation and innovation duplication projects in 2015Facilitated the role of innovation laboratories as platforms for strategic product research and development Established an innovation duplication system across the Group

Accelerated the development of smart banks

Established 12 smart banksThe handling volume of smart customer services exceeded the total handling volume of manual customer services

Promoted the development of big data technologies

Launched big data-based strategiesBuilt big data analysis centresExplore big data applications

Built the most socially responsible bank


International communications

Public welfare project

Relief donations

Small & micro enterprises and agriculture-related loans

Green credit

Donated to the Tibet earthquake area and continued to launch key public welfare projects in the fields of poverty relief, education and health care. The total amount of donations in 2015 reached RMB 412.1 million

Lowered corporate financing costs and offered relief on certain corporate and personal charges to promote inclusive finance

As at end-December 2015, the Bank’s small & micro enterprises loan balance was RMB 1,277.9 billion and the balance of agriculture-related loans was RMB 1,892.8 billion

As at end December 2015, the Bank’s green credit balance amounted to RMB 733.6 billion and it achieved significant results in energy saving and emission reduction

The Bank joined international organizations such as APEC and B20 to strengthen interaction and cooperation with the international market and foster mutual access



Risk Management

Outlook

Stable Profitability


Steady growth in net profit

47.1 46.3 69.1

92.6 106.8

135.0

169.4 193.6

215.1 228.2 228.9

0

60

120

180

240

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

RMB(Billion)

251.5 304.6

353.2 389.5

437.4 457.8

0.0

100.0

200.0

300.0

400.0

500.0

2010 2011 2012 2013 2014 2015

Net interest income

Net interest income continued to grow

18

Net interest income up by 4.7% YoY

RMB(Billion)

Net interest margin stayed relatively stable


2.49%

2.70%2.75% 2.74% 2.80%

2.63%2.83%

3.27%

3.58%3.74%

4.03%3.97%3.74%

4.27%

4.70% 4.54% 4.72%4.43%

1.34%

1.70%2.12% 1.98% 2.11%

1.97%

1.0%

2.0%

3.0%

4.0%

5.0%

2010 2011 2012 2013 2014 2015

Net income margin Bond yieldYield of interest-bearing assets Cost of interest bearing liabilities

35.0

20.0

14.5 13.7 13.2 9.9

6.7

30.6

13.2 10.9

18.6

13.6

8.8 6.4

0

10

20

30

40

Bank card fees Agency service fees Income of financing

product

Advisory and

consulting fees

Settlement and

clearing fees

Custodian and other

entrusted business

Electronic banking

income

2015 2014

Stable growth in fee income


Net fee and commission income up by 4.6%, in a leading position among commercial banking peers

RMB (Billion)

Effective cost control

20

Effective control of operating costs

RMB(Billion)

Cost-to-income ratio continued to decrease


91.6 91.5

30.5 33.0

38.9 34.0

161.0 158.5

0

30

60

90

120

150

180

2014 2015

28.92%27.02%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2014 2015Cost-to-income ratio


21

Sufficient provisions

Asset impairment expenditure up by 51.3% YoY Provision to loans ratio remained relatively stable

35.8 40.0 43.2

61.9

93.6

0.50% 0.51% 0.50%

0.63%

0.88%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

0

20

40

60

80

100

2011 2012 2013 2014 2015Expenditure of impairment Credit cost

171.2

202.4

228.7 251.6 250.6

2.64% 2.69% 2.66% 2.66%2.39%

1.00%

2.00%

3.00%

4.00%

5.00%

0

60

120

180

240

300

2011-12-312012-12-312013-12-312014-12-312015-12-31Balance of allowances for impairment losses of loans

Provision to loans ratio

RMB(Billion) RMB(Billion)



Risk Management

Outlook

Improved overall risk management capability

23

Strengthened Group’s all-round risk management Controlled and managed risks in key areas


Promoted the re-examination, monitoring and conduction of its risk appetite

Formulated, improved and applied stress testing-based management policies

Intensified overseas institutions’ anti-money laundering and compliance management

Conducted coordinated liquidity management at Group level

Strengthened operational risk management

Improved reputational risk management standards

Optimized and utilized risk measurement tools

Improved credit risk management capability

Enhanced risk early-warnings, forecasts, prevention and pre-control measuresStrengthened efforts to dispose of non-performing assetsStrengthened foundation for credit management

Improved market risk management capability

Established a contingency mechanism for major market risksIntensified stress tests on interest and foreign exchange ratesPushed forward with the development of the market risk management and control system

Adjusted credit structure


Incremental loan balance in related domestic sectors

RMB (Billion)520.1

148.6 135.0 101.0

60.0

8.0

-3.6

-53.0 -70.8

-88.5 -100

0

100

200

300

400

500

600

Residential

mortgages

Infrastructure-

related loans

Small and micro

businesses

Agriculture-

related loans

Emerging

strategic sectors

Wholesale and

retail

Industries with excess capacity

Localgovernment

financingvehicles

Real estatesector

Manufacturingsectors

Note: Industries with excess capacity include steel, cement, electrolytic aluminum, plate glass, and shipping.

956.6 1,046.3

1,146.0

0.55%0.46%

0.28%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

2013-12-31 2014-12-31 2015-12-31Balance of loans to transportation,storage and postal servicesNPL ratio

Effective risk control in key sectors – stable asset quality of infrastructure loans

25

Good quality of loans to transportation, storage and postal services

RMB (Billion)

Good quality of loans to production and supply of electric power, heat, gas and water


571.0 606.3

642.0

0.36%0.31% 0.33%

0.0%

0.3%

0.5%

0.8%

1.0%

0.0

160.0

320.0

480.0

640.0

800.0

2013-12-31 2014-12-31 2015-12-31Loans to production and supply of electric power,heat,gas and waterNPL ratio

RMB (Billion)

Effective risk control in key sectors－asset quality of real estate loans under control

26

Asset quality of real estate loans under control Asset quality of residentialmortgages outperformed peers

1,880.2

2,253.8

2,773.9

0.17%0.21%

0.31%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

2013-12-31 2014-12-31 2015-12-31

Balance of residential mortgage NPL ratio

500.4 520.1

449.3

0.76%

1.10%1.23%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

0.0

150.0

300.0

450.0

600.0

2013-12-31 2014-12-31 2015-12-31

Balance of real estate loans NPL ratio

RMB (Billion)


RMB (Billion)

Effective risk control in key sectors－risk of loans to industries with excess capacity under control

27

Loans to industries with excesscapacity gradually decreasing

Risk management measures

133.8 130.3

0.0

50.0

100.0

150.0

200.0

2014-12-31 2015-12-31

Balance of loans to industries with excess capacity

Implemented list management and provided different solutions based on the categories of customers

Implemented credit exit policy

Strengthened post-lending monitoring and organized more company visits and on-site inspections

RMB (Billion)


Strictly controlled the total amount of loans

Maintained reasonable liquidity level

28

Liquidity maintained within a reasonable range Key measures

Improved the overall management of liquidity at Group level

46.57% 48.88%44.17%

55.20% 57.03%59.84%

0.00%

20.00%

40.00%

60.00%

80.00%

2013-12-31 2014-12-31 2015-12-31

RMB liquidity ratio Foreign currency liquidity ratio

Intelligently planned interbank business scale

Leveraged interest rate and increased bond investment

Optimized overall capital allocation and reduced financing costs at Group level

Integrated the management of RMB and foreign currency,

and intensified overseas operation of RMB

Strengthened large fund flow alert


12.11%

13.13%

12.11%

13.32%

14.86%15.39%

0%

4%

8%

12%

16%

CAR was calculated in accordance with the Measures for CapitalManagement of Commercial Banks (Trial) using AdvancedMeasurement Approach, parallel period rules applicable.

Constantly improved capital adequacy ratios

29

Highest capital adequacy ratio among peers Strengthened capital management capability

Named on the list of “Global Systemically Important Banks” and initiated the recovery and resolution plan

2014-12-31 2015-12-31

Innovative capital management tools.

Preference shares: offshore non-public preference shares of US$3.05 billion

Tier 2 capital bonds: offshore tier 2 capital bonds of US$2 billion, onshore tier 2 capital bonds of RMB24 billion

Improved capital pass-through and constraint mechanism and promoted operational transformation towards more intensive

utilization of capital

Improved internal advanced rating model of credit risks and advanced measurement for operational risks


Com

mon equity tier 1 ratio

Com

mon equity tier 1 ratio

Tier 1 ratio

Tier 1 ratio

Capital adequacy ratio

Capital adequacy ratio



Risk Management

Outlook

Opportunities and challenges

31

Opportunities Challenges

U.S and Eurozone economies getting back on track

Continuous favorable prospects for Chinese economy

Deepening structural reforms on the supply side

Important strategy deployment of One Belt One Road, Beijing-Tianjin-Hebei synergy development and

Yangtze River Economic Zone construction

Rapid growth of emerging industries and new business models

Rapid development of the financial market and continuous expansion of banks’ business scopes

Complex and changing global economic situation; further divergence between the growth trends of major

economies and monetary policies

Aggravated fluctuation of the international financial market and commodity price

Pressure exerted by de-leveraging and de-capacity on banks’ assets quality

Higher standards for banking operations and management raised from capital regulation, macro-

prudential assessment system (MPA) and new supervisory regulations for service fee practices


Counter measures

32

Develop into a modern commercial banking group that is highly capable of value creation under the guidance of the transformation development plan

Push forward with the implementation of the Bank’s transformation development plan and strengthen the foundation for operation management

Support important national strategies and improve capability to serve the real economy

Continue to optimize credit structure and improve efficiency in asset allocation

Improve integrated pricing power and tackle the risk of interest rate liberalization

Continue to strengthen overall risk management and improve compliance management of overseas institutions

Establish a financial ecosystem based on "Internet +” and improve the capacity of big data


Well recognized in the industry

33

2nd in the “Top 1000 World

Banks” (in terms of tier 1 capital)

29th in the "Fortune Global 500"

Best CSR Contribution Award 2015

2015 Best Bank in China

2nd in the "Forbes Global

2000"

2016 Best Retail Bank in China


Q&A15

Beijing/Hong Kong

Thank you15

Beijing/Hong Kong

2015 annual results announcement - ccb · this information was prepared by the china construction...

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