industrial and commercial bank of china limited · 2009-08-21 · industrial and commercial bank of...

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Industrial and Commercial Bank of China LimitedIndustrial and Commercial Bank of China Limited

August 2009August 2009

2009 Interim Results Announcement(IFRS)

2009 Interim Results Announcement(IFRS)

2009 8 20

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DisclaimerDisclaimer

The material in this presentation is not to be construed as an offer or a solicitation of an offer to buy the securities of Industrial and Commercial Bank of China Limited (“the Company”) in Hong Kong, the United States or other regions. The Company’s securities have not been registered under the US Securities Act of 1933 and its amendments, and no offer for or sales of these securities shall be made in the United States, unless registered under the right law or exempted from registration.

The statements in this release are "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks and uncertainties, and is based on the current forecast, assumption, estimation and expectation for the company and the industry which the company operates in. Unless otherwise stipulated by the law, the company assumes no obligation to update the forward looking statements whether as a result of new information, future events or otherwise. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the expectations will be proved to be correct. Investors are cautioned that actual results could differ materially from those forecasts.

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AgendaAgenda

Business Features

Financials

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Growing Earnings and Dual-decline in NPL Balance and NPL RatioGrowing Earnings and Dual-decline in NPL Balance and NPL Ratio

Note: (1) Excluding business taxes and surcharges

+2.8%64.966.7Profit after Tax (IFRS)

+13.3%24.527.7Net Fee and Commission Income

+5.3%0.190.20EPS(RMB Yuan)

change（%）1H 20081H 2009（RMB billion）

+5bps1.211.26ROAA (%)

+143bps19.4320.86Weighted ROAE (%)

-48bps2.291.81NPL Ratio (%)

+1bps29.8429.85Cost / Income Ratio (%)(1)

13.06

130.15

2008 year-end

-97bps

+805bps

change( bps)

12.09Capital Adequacy Ratio(%)

138.20NPL Coverage Ratio (%)

1H 2009

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NIM Stabilized Quarter-on-quarterNIM Stabilized Quarter-on-quarter

58.357.766.564.865.566.3

1Q 2008 2Q 2008 3Q 2008 4Q 2008 1Q 2009 2Q 2009

Net Interest Income Stabilizes Quarter-on-quarter

（RMB billion）

6

277

245

440

384

163

Rapid Growth of Net Fee and Commission IncomeRapid Growth of Net Fee and Commission Income

Rapid Growth in Various Fee Business Segments

YoY Growth1H09 Income

Investment Banking 48.1%7.143

Corporate Wealth Management 25.9%

1.836

4.355Bank Card 36.2%27.7

24.5

44.0

38.4

16.3

2006 2007 2008 1H2008 1H2009

06-08 CAGR=64.3%

9.0%

Y-o-Y Growth=13.3%14.9%

14.2%

As % of Operating

Income

（RMB billion）

Steady Growth of Fee Income and Higher Percentage

（RMB billion）

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Optimizing Asset Quality and Higher NPL Coverage RatioOptimizing Asset Quality and Higher NPL Coverage Ratio

Declining NPL Balance and NPL Ratio

98.7 104.5 105.1

111.8

137.7

1.81%

2.29%2.41%

2.74%

3.79%

2006 2007 1H2008 2008 1H2009NPL Balace NPL Ratio

70.56%

103.50%

138.20%130.15%

2006 2007 2008 1H 2009

Higher Provisioning and Coverage Ratio

（RMB billion,%）

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Competitive Cost-EfficiencyCompetitive Cost-Efficiency

Competitive Cost/income Ratio

29.85%29.84%

35.02%

2007 2008 1H 2009

23.1%22.2%

1H2008 1H2009

Lower Effective Tax Rate

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AgendaAgenda

Financials

Business Features

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FeatureⅠ: Optimized Income Structure and Superior Earnings GrowthFeatureⅠ: Optimized Income Structure and Superior Earnings Growth

64.9 66.7

1H 2008 1H 2009

Sustained Growth of Profit After Tax

YoY Growth=2.8%

（RMB billion）

6.1%

9.0%

14.9% 14.2%

18.7%

2005 2006 2007 2008 2009 1H

Fee Income As % of Operating Income

Greater Contribution from Fee Income

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Feature Ⅱ: Reasonable Loan Growth and Rapid Deposit GrowthFeature Ⅱ: Reasonable Loan Growth and Rapid Deposit Growth

8,816.1

10,504.4

2008 1H2009

5,436.54,572.0

4,073.23,631.23,289.6

2005 2006 2007 2008 1H2009

Reasonable Expansion of Loan Book Sustained Growth of Deposit Book

+19.2%

+63.9%

+18.9%

26.1% 25.8%

68.4% 69.9%

4.3%5.5%

2008 1H 2009A-and Below A、A+ AA- and Above

46.9%

44.8%

2008 1H 2009

Optimized Customer Structure Lowest Average Risk-weighted Asset Percentage

Average Risk-weighted Asset as % of Total AssetLoan Balance Structure

05-08 CAGR=11.6%

（RMB billion） Customers+Other Institutions Other Institutions（RMB billion）

971.3

592.6

2008 1H2009

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Feature Ⅲ: NIM Upside in SightFeature Ⅲ: NIM Upside in Sight

Higher Proportion of Demand Deposit

47.7%48.0%

50.8%

2009-4-30 2009-5-31 2009-6-30

Upside Trend in Monetary Market

0.94% 0.94% 0.95%

1.21%

1.01% 1.00% 0.96%1.02%

1.13%

1.29% 1.28%

1.42%

1.99%

1.93%

1.64%

2009-3-31 2009-4-30 2009-5-31 2009-6-30 2009-7-31

7-day LIBOR 1-year T-bond

1-year Financial bond

Decreasing Discounted Bills

（RMB billion）

134.96

33.11 32.8513.53

5.79

-78.6

8.63%

10.33%10.27%

10.13%10.15%

9.69%

-1000

-500

0

500

1000

1500

Jan Feb Mar April May June

7.5%

8.0%

8.5%

9.0%

9.5%

10.0%

10.5%

Bills Discounted Bills Discounted as % of total loan book

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Thank you!