Industrial and Commercial Bank of China (ICBC) got off to a good start in the first quarter

On April 29, 2024, Industrial and Commercial Bank of China (stock code: SH: 601398; HK: 1398) announced its operating results for the first quarter of 2024. Since the beginning of this year, ICBC has adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, implemented the new development concept completely, accurately and comprehensively, thoroughly implemented the spirit of the Central Financial Work Conference, the Central Economic Work Conference and the special seminar on promoting high-quality financial development for major leading cadres at the provincial and ministerial levels, consolidated and expanded the achievements of thematic education, and strived to serve the high-quality economic and social development through high-quality financial supply, helping to consolidate and enhance the positive trend of economic recovery, and achieving a good start in the first quarter.

In the first quarter, ICBC accelerated the transformation of the "five modernizations" of layout modernization, digitalization of kinetic energy, structural diversification, basic ecology, and intelligent risk control, focusing on the central task of serving Chinese-style modernization, the primary task of high-quality development, and the strategic task of building a new development pattern, and continuously improved its development capabilities in a balanced, coordinated and sustainable manner. Deposits and loans grew steadily. Customer deposits exceeded 35 trillion yuan, an increase of 4.52% from the beginning of the year. The Group's total assets exceeded 47 trillion yuan, and domestic RMB loans increased by more than 1.2 trillion yuan, an increase of 5.06% from the beginning of the year. Risk control capabilities continue to be enhanced. The level of comprehensive risk management and intelligent risk control has been continuously improved. Asset quality remained stable, with a non-performing loan ratio of 1.36%, unchanged from the end of the previous year, and the scissors spread between overdue and non-performing loans remained negative for 16 consecutive quarters. The provision coverage ratio increased to 216%. The capital adequacy ratio remained at an excellent level. The customer ecosystem is constantly improving. The results of GBC+ basic projects have been further revealed, and the coordinated customer ecology of "large, medium, small and micro" has been accelerated, and funds, assets and capital have become more balanced and coordinated.

Focus on the modern layout and serve the entity to demonstrate the responsibility of the main force

In the first quarter, ICBC accurately grasped the rhythm, intensity and focus of investment and financing, highlighted its main responsibilities and main businesses, focused on doing a good job in the "five major articles", strengthened high-quality financial services for the "three major projects" such as new quality productivity and affordable housing construction, national key projects, people's livelihood consumption and other major strategies, key areas and weak links, and built a modern ICBC in helping to build a financial power and serving Chinese-style modernization.

Continue to increase the supply of funds to the real economy. In the first quarter, ICBC's domestic RMB loans increased by more than 1.2 trillion yuan, maintaining a leading position in terms of increment. Investment in renminbi bonds increased by nearly 200 billion yuan. The lead underwriting of various types of bonds exceeded 360 billion yuan, maintaining a leading position. We will further promote the implementation of the urban real estate financing coordination mechanism, and maintain a leading position in the cumulative investment amount of projects under the coordination mechanism.

Precise and direct credit delivery. In the first quarter, the growth rate of ICBC's loans to manufacturing, green, inclusive, strategic emerging industries, private and agriculture-related loans was higher than that of various loans. Among them, the balance of loans for the manufacturing industry exceeded 4 trillion yuan, and the balance of medium and long-term loans for the manufacturing industry exceeded 2 trillion yuan, while the number of inclusive loans increased by more than 350 billion yuan compared with the beginning of the year, and the number of inclusive loan customers increased by more than 300,000 compared with the beginning of the year, which was 2.3 times the increase of the same period last year.

Front-line service, new quality, productivity cultivation and growth. ICBC established a science and technology finance center, held a symposium on new quality productivity of financial services, and improved the comprehensive service level for major projects and key areas of scientific and technological innovation. At the end of the first quarter, the balance of ICBC's loans to strategic emerging industries exceeded 3 trillion yuan, an increase of more than 370 billion yuan from the beginning of the year. We will continue to improve the integrated investment and financing service system of "commercial bank + investment bank", "financing + investment", "debt + equity" and "financing + financial intelligence", so as to "build momentum and empower" for cultivating and expanding new quality productivity.

Strengthen intelligent risk control to keep all kinds of risks stable and controllable

ICBC firmly established the overall national security concept, coordinated development and security, adhered to the four-pronged approach of "managing people, money, defense and bottom line", and deepened the comprehensive risk management system of "five accounts" for head office branches, domestic and overseas, on-balance sheet and off-balance sheet, online and offline, and investment banking subsidiaries of commercial banks and investment banks in accordance with the path of "active prevention, intelligent control and comprehensive management", so as to continuously build a solid and stable ICBC advantage.

Credit asset quality remained stable. We will continue to improve the credit approval system and mechanism, and give full play to the role of the "key valve" of asset quality management. Continue to select and allocate strong risk officers, and consolidate the risk control responsibilities of the front, middle and back offices. At the end of the first quarter, the non-performing loan ratio was 1.36%, unchanged from the end of the previous year. The "scissors gap" between overdue and non-performing loans has remained negative for 16 consecutive quarters. The provision coverage ratio increased by 2.34 percentage points from the beginning of the year, and the risk resilience continued to be enhanced.

Intelligent risk control capabilities continue to improve. Continuously optimize the five intelligent risk control systems of the "Rong'an e" series to cover all kinds of risks. Among them, since the "Rong'an e-core" real-time intelligent risk control model independently built by ICBC was put into operation in August last year, it has intercepted more than 400 million yuan of fraudulent funds in corporate accounts, and has taken practical actions to protect the "money bags" of the masses. We will continue to improve the joint prevention and control mechanism of cross-market risks such as currency, foreign exchange, bonds, stocks, and commodities, improve the ability of intelligent risk identification, measurement, early warning, and control, timely and comprehensively grasp all kinds of risk information, effectively respond to various risk impacts, and achieve stable operation in complex situations.

Practice finance for the people, and the foundation and momentum of high-quality development promote each other

ICBC firmly grasped the direction of modern financial development, focused on the changes in customer needs, accelerated the implementation of GBC+ basic projects and the construction of digital ICBC, continuously consolidated the foundation for high-quality development, and expanded new momentum for high-quality development.

Dynamically upgrade GBC+ basic projects. The formation of a customer system for the coordinated development of "large, medium, small and micro" has been accelerated, and the ecological foundation for high-quality development has been continuously consolidated. In the first quarter, the net increase of individual customers exceeded 5 million, and the financial assets under management (AUM) of individual customers exceeded 21 trillion yuan, continuing to maintain its leading position. The scale of entrusted management annuities exceeds 580 billion yuan. Focusing on innovative products to meet the needs of the people for a better life, we have continuously optimized 15,000 "ICBC Post Station" service points, and the coverage rate of the outlets adapted to the elderly has reached 100%. We continued to improve the level of payment facilitation services, established 9 overseas guest payment service centers, and vigorously promoted coin wallet services in outlets. At the end of the first quarter, ICBC accepted more than 140,000 foreign card POS merchants.

Digital momentum accelerates. The construction of ICBC Digital Industrial and Commercial Bank of China (D-ICBC) has been further promoted, and new growth points have been continuously formed. Released version 9.0 of mobile banking, providing customers with smarter and more convenient mobile financial services, maintaining a leading position in the scale and monthly activity of mobile banking customers, and exceeding 43 million fans of the wealth community. Apply cutting-edge technologies such as artificial intelligence and large models to cultivate and expand the new quality productivity of digital ICBC. At the same time, we will give full play to the advantages of scenarios, data and connecting customers, strengthen the joint innovation of "production, education, research and application", and form a number of replicable ICBC solutions in the transformation of achievements, engineering applications and enterprise practice, so as to jointly develop new quality productivity with all parties.

Help accelerate the construction of a trade power. ICBC focused on solving the "urgent, difficult, and longing" problems of domestic and foreign trade enterprises, and released the "Spring Financing Action 2024" to support the integrated development of domestic and foreign trade, and improved financial services covering accounts, settlement, financing, exchange, inclusive finance, digital finance, cash management, business matchmaking, and specific customer groups. In the first quarter, a total of nearly 320 billion yuan of on- and off-balance sheet financing was issued to key domestic foreign trade and foreign-funded enterprises. Actively participated in the pilot of the online business of cross-border e-commerce retail import tax guarantee of the General Administration of Customs, and successfully handled the first batch of online tariff guarantee business in China.

ICBC will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, conscientiously implement the decisions and arrangements of the CPC Central Committee and the State Council, take the opportunity of accepting the inspection of the Central Committee and carrying out Party discipline study and education, deeply practice the political and people's nature of financial work, unswervingly follow the path of financial development with Chinese characteristics, and deeply implement the "Five Modernizations" based on the positioning of "serving the main force of the real economy, maintaining the ballast of financial stability, strengthening the leading goose of financial institutions, and being a benchmark bank specializing in the main business Transformation, to create a clean and healthy balance sheet, a balanced, coordinated and sustainable income statement, and a "by your side, trustworthy" ESG statement, accelerate the construction of a world-class modern financial institution with Chinese characteristics, and continue to make new and greater contributions to serving Chinese modernization and the construction of a financial power.