2014 Financial Highlights:

·          Total assets amounted to RMB 1,674.413 billion, representing an increase of 8.99% compared with the previous year.

·          Profit before tax reached RMB 299.086 million, representing a growth of 6.89% compared with the previous year. Net profit increased by 6.10% year-on-year to RMB 228.247 million.

·          Total loans and advances to customers stood at RMB 9,474.523 billion, growing 10.30% year-on-year. Total customer deposits totaled RMB 12,898.675 billion, representing an increase of 5.53% year-on-year.

·          The annualized return on average assets and annualized return on average equity were 1.42% and 19.74% respectively.

·          Total capital adequacy ratio (CAR) was 14.87%, non-performing loan ratio was 1.19% and the provision coverage ratio was 222.33%.

·          Revenue grew by 12.16% year-on-year to RMB 570.47 billion. Operating income increased by 8.92% year-on-year to RMB 556.74 million. Net interest income increased by 12.28%, and net interest margin (NIM) was 2.80%.

·          On account of a strong business performance, the Board recommends a cash dividend for 2014 of RMB 0.301 per share.

Beijing, 27 March 2015 – China Construction Bank Corporation (Hong Kong stock code: 939, Shanghai stock code: 601939; CCB or the “Bank”) today announced its operating performance for 2014 (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 2014, CCB’s total assets reached RMB 16.74 billion, and recorded a net profit of RMB 228,247 million. The Bank’s return on average assets and return on average equity were 1.42% and 19.74%, respectively. On account of the strong business performance, the Board recommends a cash dividend of RMB 0.301 per share for 2014.

In 2014, amidst complex economic conditions in domestic and overseas markets, as well as increasingly fierce competition, CCB operated in line with the requirements placed on the Bank’s capabilities to service the construction of the national economy, to prevent financial risks, and to participate in international competition. The Bank devised a strategy to deepen reform, and enable and accelerate a transformational development to become a bank with comprehensive services at group level that offers multifunctional services; runs with intensive operations, leads innovation; and that is a Smart Bank. CCB solidified its market position and led its peers in core indicators and business operations. In 2014, the Bank presented a number of new features during its strategic transformation and business operations:

Supported the development of the real economy and improved the adjustment of credit structure

CCB continued to prioritize support for the real economy and participated in the implementation of international development strategies including “One-Belt-One-Road”, the coordinated development of Beijing-Tianjin-Hebei, and the Yangtze River Economic Zone. In 2014, CCB took full advantage of its strengths, and achieved an incremental growth in infrastructure and construction loans of RMB 271.482 billion, accounting for 75.25% of loan increments of all corporate loans and supporting areas including projects under construction, national key projects, urbanization and new-rural construction. Meanwhile, the Bank sustained its leadership position in residential finance, recording RMB 2.25 trillion in balance of residential mortgages, earning the number one spot in both volume and incremental increase among peers and accounting for over 50% of market share in residential-related reform services. The Bank also actively expanded financial services to small and micro businesses, stepped up the promotion of new operation models and improved the level of service for small and micro businesses with products such as “Zhu Bao Dai” (partial collateral for loans), and specially designed services that are developed through big data information technology such as “Shan Rong Dai” (rolling facilities) and “Jie Suan Tong” (settlement). The Bank explored new models in rural financial services, continued to increase the number of outlets in township and counties, strengthened cross-sector cooperation with purchasing cooperatives and other relevant rural companies and institutions, and promoted and expanded a plethora of service channels including mobile banking, ATMs and sales terminals. In areas that focus on market attention, such as local government financing platforms, the real estate sector and industries with excess capacity, CCB carefully controlled loans granted to industries with excess capacity and those regulated by regulatory policies. As a result, loans to five industries with severe over capacity, including steel, cement, electrolytic aluminum, flat glass and shipping, shrank by RMB 4.986 million compared with the beginning of the year, and loans to local government financing platforms decreased by RMB 28.638 million compared with the previous year.

Formed a main framework for comprehensive operations and significantly improved multifunctional service capabilities

In 2014, CCB achieved new breakthroughs in building a comprehensive operational platform, and continued to lead the industry in the number of non-bank financial licences. CCB Futures officially began operation, and major progress was made in the pension and policy residential businesses with government approval secured. The financial assets of the Bank’s subsidiaries doubled to reach a new height of RMB 1.2 trillion and recorded a growth of 32% in net profit. Key business indicators for the Bank’s subsidiaries ranked ahead of its peers. Multifunctional service capabilities were significantly improved. Through comprehensive servicing, combining asset management, investment banking and the network of subsidiaries, the Bank solved client financing needs totalling RMB 1.04 trillion. Accumulated credit cards issued surged to over 65 million, leading the Bank to be first among peers in new card issuance, newly accumulated merchants, and number of consumer transactions. In bonds, the underwriting fee and revenue from bond issuance sustained its market leadership positon for a fourth consecutive year. In investment under custody, business volume increased by 38.06%, and the Bank ranked first among peers in the number and the amount of new-to-market incremental securities investment fund custody products. The Bank also ranked first among peers in the market share of corporate annuity and pension custody products. The proportion of transactions conducted through e-banking and self-help channels increased to 88.8%, individual online customers reached 147 million and mobile banking customers reached 147 million.

Accelerated overseas network with a wide range of measures and recorded rapid development of international business

In 2014, CCB saw fruitful and transformational results in its internationalization efforts. The Bank officially launched four subsidiaries; the Macau branch, the New Zealand subsidiary, the Toronto branch and the Brisbane branch. It received domestic and overseas regulatory approval to set up entities including those in London, Paris, Amsterdam, Barcelona and Cape Town; completed the acquisition of a 72% total share capital in Brazil’s Banco Industrial & Comercial and applied for the further establishment of entities in Chile, Zurich and Milan. At present, CCB has 21 tier-one subsidiaries in overseas markets, has accomplished the initial goal of covering major overseas markets, and has established a correspondent banking relationship at headquarter level with 1,470 institutions in 138 countries and regions. The Bank also succeeded in issuing RMB bonds in overseas markets in Hong Kong, Frankfurt, Sydney, Switzerland and Taiwan, and received strong market reception. As at the end of 2014, CCB’s total overseas commercial banking assets increased by 32.67% and its profit before tax grew by 68.99%. The volume of cross-border RMB business in domestic and overseas markets totalled over RMB 3.3 trillion, of which domestic business accounted for RMB 1.46 trillion with a year-on-year growth of 61.94%. In the same year, CCB successfully secured an RMB clearing licence in London, signifying a continued evolution in the Bank’s offshore RMB consolidated clearing system and marked an expanding and direct scope of service covering 17 countries and regions across three continents. 

Strengthened infrastructure and improved growth momentum

In 2014, CCB accelerated the consolidation of channels and functions. The Bank built a total of 13,700 comprehensive-service outlets with a team of 17,500 staff for comprehensive service marketing, enabling a gradual transition of the outlet’s functions to emphasize customer marketing, customer experience and product display. The level of application with e-banking channels continued to increase. Of this, the proportion of transactions conducted through e-banking and self-help channels increased to 88.8%, up 2.63 percentage points on the previous year. E-banking customers grew 25.98% to 147 million. Customers using WeChat banking services reached 14 million, of which 8.73 million followed the Bank on WeChat and linked their accounts to the Bank’s services. The Bank’s customer base continued to strengthen, with an incremental growth of valid corporate clients, corporate RMB settlement accounts, and individual valid customers to 110,000, 680,000 and 11.88 million respectively. The separation of front- and back-office operations for outlet counter services continued, and over 14,500 outlets achieved headquarter centralization for 30 categories of real-time counter services and products. As a result, operational efficiency increased by 60% and the Bank continued to enhance its product innovation capacity. In 2014, CCB produced innovative solutions in areas including urbanization, environmental protection, cultural industry, township and county finance, small and micro businesses, people’s livelihoods, and consumer finance. Meanwhile, the Bank strengthened the generational upgrade of areas where it maintained traditional advantages, and completed 1,370 product innovations and 223 product migrations. A new generation of the Bank’s core system was further improved, and phase I of 13 applications went online. The Bank completed the transfer of a total of 340,000 corporate cash management customers, 190,000 agents for collection and payment, and 2.52 million corporate e-banking customers. Phase II of the core system made progress in advance, enabling a total of 34 functions in nine projects for customer channels, employee management, corporate cash management and personal mortgages. This led to a remarkable improvement in employee and customer experience, and provided strong support to the transformation of operations.

Strengthened risk management and strict commitment to the risk baseline

With great efforts to adjust economic structure, CCB made a strict commitment to the risk baseline, and pushed forward comprehensive risk management at branches and subsidiaries both home and abroad in compliance with the requirements of the Basel New Capital Accord. The implementation of risk control transformed from “unconventional measures” to regular and routine management, from after-event disposal to whole-process management and control with an emphasis on prevention and precaution. The Bank improved the responsibility system for comprehensive risk prevention and control, improved the whole fundamental credit management process, established centralized loan centers, and reinforced before-loan investigations and after-loan normative management. CCB continued to put pressure on management and control of asset quality and improved special examinations of high-risk fields. The Bank advanced the gateways of risk management and control, highlighted major risk projects and non-performing loan disposal, and realised the goal of asset quality control. Considering the evolving changes in the macro-economic environment, CCB made sufficient and prudent provision for loan impairment losses, and maintained a good level of risk compensation. As at the end of 2014, the non-performing loan ratio was 1.19%, the NPL coverage ratio was 222.33%, and the ratio of allowances for impairment losses to total loans was 2.66%.

Fulfilled corporate social responsibility and significantly increased corporate brand value

CCB has supported long-term welfare projects including the construction of “CCB Hope Primary School”, “CCB Scholarships and Grants for College Students from Ethnic Minorities Programme” and “Sponsorship Programme for Impoverished Mothers of Heroes and Exemplary Workers in China”, with a total donation of over RMB 700 million. In 2014, 45 “Mother Health Express” vehicles donated by CCB delivered healthcare services and obstetric care to women in impoverished villages in Xinjiang, Tibet, Inner Mongolia and other provinces. The Bank continued its “Credit Card Points Donation Community Drive” programme, which uniquely explored new means to support charitable activities by encouraging card holders to donate their card points. CCB’s prudent management and undertakings in civil social responsibilities have been widely acknowledged by both domestic and overseas markets. The Bank received over 100 major awards from renowned institutions, including “The Best Bank in China” from Global Finance magazine in 2014, and was ranked second in the “Top 1000 World Banks” in tier-one capital, complied by The Banker magazine.

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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 (Stock Code 939), and was listed on the Shanghai Stock Exchange in September 2007 (Stock Code 601939). As at the end of 2014, the market capitalization of the Bank reached USD 207.9 billion, ranking fourth among all listed banks in the world. The Bank has an extensive network of 14,856 branch outlets in mainland China, serving 3.48 million corporate customers and 314 million personal customers, and maintains close relationships with leading enterprises in strategic sectors for Chinese economy and numerous high-profile clients. The Bank has established overseas branches in Hong Kong, Macau, Singapore, Frankfurt, Johannesburg, Tokyo, Osaka, Seoul, New York, Ho Chi Minh City, Sydney, Melbourne, Taipei, Luxembourg, Brisbane and Toronto, and owns entities and subsidiaries including China Construction Bank (Asia) Corporation Limited, China Construction Bank International (Holdings) Limited, China Construction Bank (London) Limited, China Construction Bank (Russia) Limited, China Construction Bank (Dubai) Limited, China Construction Bank (Europe) Limited, China Construction Bank (New Zealand) Limited, China Construction Bank Principal Asset Management Co. Ltd, China Construction Bank Financial Leasing Corporation Limited, China Construction Bank Trust Co. Ltd, China Construction Bank Life Insurance Co. Ltd, China Construction Bank Futures Co. Ltd and Sino-German Bausparkasse Co. Ltd.