China Construction Bank Announces 2018 Q3 Results

China Construction Bank Announces 2018 Q3 Results

Balanced and Stable Core Indicators - Asset Size Grows Steadily and Profitability Continues to Improve

Beijing/Hong Kong, 23 October 2018 - China Construction Bank Corporation (“the Bank” or “CCB”) (A-share stock code SH:601939; H-share stock code HK:939) released its operating results for the third quarter of 2018 (the data herein was prepared according to the International Financial Reporting Standards on a consolidated basis and expressed in RMB unless otherwise stated). This year, CCB has maintained sound development, with stable and improving business performance, and core indicators including asset size, profitability and asset quality in line with expectations.

As of 30 September, 2018, the total assets of CCB were RMB23,354.08 billion, up by RMB1,229.70 billion or 5.56% from the end of last year. The total amount of customer loans and advances was RMB13,765.78 billion, an increase of RMB862.34 billion from the end of last year. Customer deposits amounted to RMB17,228.19 billion, an increase of RMB864.44 billion or 5.28% from the end of last year.

As of September 30, 2018, CCB's total capital adequacy ratio was 16.23%, Tier 1 ratio was 13.92% and Common Equity Tier 1 ratio was 13.34%, meeting the regulatory requirements.

As of September 30, CCB achieved a net profit of RMB214.86 billion, of which the net profit attributable to shareholders was RMB214.11 billion, up by 6.22% and 6.39% year-on-year respectively. The annualized return on average assets was 1.26% and the annualized return on average equity was 16.08%. Net interest income was RMB365.73 billion, up 9.72% from a year ago. The net interest spread and the net interest margin reached 2.21% and 2.34% respectively, both up by 0.18 percentage points from a year ago. Meanwhile, the income from intermediary business increased steadily. The Bank’s net fee and commission income was RMB96.53 billion, a 3.07% year-on-year increase. Among those, bank cards, e-banking, custody and other fiduciary products enjoyed sound development and incomes maintained rapid growth. The cost-to-income ratio fell further, down by 0.62 percentage points to 23.20% from a year ago.

CCB has taken the adjustment of national industrial policies and the trend in supply-side structural reform as the focus of its risk prevention and control, and further improved its risk prevention and control mechanism. In 2018, CCB has continued to strengthen its ability to prevent risks and maintain stable asset quality through continuous strict and effective comprehensive risk management. According to the five-category classification of loans, the non-performing loan balance was RMB201.82 billion, and the non-performing loan ratio was 1.47%, down by 0.02 percentage points from the end of last year. The ratio of impairment provision to non-performing loans was 195.16%, up by 24.08 percentage points from the end of last year.

Since 2018, CCB has continued to implement the three major strategies for house leasing, fintech and inclusive finance. The Bank has continued to focus on building the service brand of "To Lease a Home, Go to CCB.” The house rental services platform has been launched in more than 300 administrative areas at or above prefecture-level in mainland China. There are more than 2 million on-line listings, and 310,000 have been leased out.

CCB will implement its financial technology strategy “TOP+” which leverages technology and data to drive financial innovation to create a smart financial platform ecosystem. With this, the Bank aims to use financial technology to empower society, actively solve social problems and challenges, and contribute to a high-quality development of the real economy.

CCB will continue to fully implement and promote its inclusive finance strategy. Leveraging its "New Generation" financial technology, the Bank will launch "CCB understands you", an app that is underpinned by big data, providing an on-line one-stop access for “SME Quick Loan”. The Bank released “China's Blue Book on Inclusive Finance (2018)” and the "CCB • Xinhua Inclusive Finance SME Index as the barometer of and compass for inclusive finance. In addition, CCB has sponsored China's Internet Plus Innovation and Entrepreneurship competition for four consecutive years, benefiting 5 million college students. In the first nine months of 2018, the volume of inclusive finance loans increased by RMB160 billion, among which the volume of SME loans increased by more than RMB130 billion, and the number of SME borrowers increased by 155,000, making the Bank a leader in this area.  At the same time, it is active in fulfilling its social responsibilities. To date, the Bank has set up 14,413 “Caring Stations” in its branches, serving more than 13.5 million people.

Facing the complex domestic and international economic environment, CCB always bears in mind the mission of state-owned large commercial banks. While maintaining steady growth and improving service capabilities, CCB is committed to building a better life, sharing the fruits of modern financial development and helping people realize the Chinese dream through financial innovation.