Bank of China Limited

Market definition The banks industry profile comprises activities of banks and similar institutions, offering savings, loans, mortgages, and related financial services to consumers and businesses. The data in this report measures the total assets held by these institutions at calendar year-end. The geographical segmentation measures the total assets held by the commercial banks of the region. Any currency conversions used in the creation of this report have been calculated using constant 2012 annual average exchange rates.

For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, and Thailand. Market analysis The Chinese banking industry has experienced very strong growth in recent years and although a deceleration is projected, double-digit growth is forecast through to 2017. China is the largest banking industry in the Asia-Pacific region, accounting for over 50% of its total assets. The Chinese banking industry had total assets of $21,181. 0bn in 2012, representing a compound annual growth rate (CAGR) of 20.

1% between 2008 and 2012. In comparison, the Japanese and Indian industries grew with compound annual growth rates (CAGRs) of 2. 1% and 17. 3% respectively, o ver the same period, to reach respective values of $11,065. 8bn and $1,381. 3bn. The bank credit segment was the industry's most valuable in 2012, with total assets of $6,713. 3bn, equivalent to 31. 7% of the industry's overall value. The trading assets segment contributed assets of $5,381. 1bn in 2012, equating to 25. 4% of the industry's aggregate value. The performance of the industry is forecast to decelerate, with an anticipated CAGR of 13.

1% for the five -year period 2012 - 2017, which is expected to drive the industry to a value of $39,139. 7bn by the end of 2017. Comparatively, the Japanese and Indian industries will grow with CAGRs of 2. 1% and 14. 6% respectively, over the same period, to reach respective values of $12,288. 9bn and $2,725. 7bn in 2017. China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 2013 - 2012 Page | 7 MARKET DATA Market value The Chinese banks sector grew by 17. 5% in 2012 to reach a value of $21,181 billion. The compound annual growth rate of the sector in the period 2008–12 was 20.

1%. Table 1: China banks sector value: $ billion, 2008–12 Year $ billion CNY billion € billion 2008 10,163. 9 64,150. 2 7,916. 4 2009 12,830. 6 80,981. 8 9,993. 4 26. 2% 2010 15,235. 6 96,160. 9 11,866. 6 18. 7% 2011 18,028. 2 113,786. 7 14,041. 7 18. 3% 2012 21,181. 0 133,686. 3 16,497. 4 17. 5% CAGR: 2008–12 SOURCE: MARKETLINE % Growth 20. 1% M AR KE TL IN E Figure 1: China banks sector value: $ billion, 2008–12 SOURCE: MARKETLINE China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED M AR KE TL IN E 0099 - 2013 - 2012 Page | 8 MARKET SEGMENTATION

Category segmentation Bank credit is the largest segment of the banks sector in China, accounting for 31. 7% of the sector's total value. The Trading assets segment accounts for a further 25. 4% of the sector. Table 2: China banks sector category segmentation: $ billion, 2012 Category 2012 % bank credit 6,713. 3 31. 7% trading assets 5,381. 1 25. 4% inter-bank loans 4,617. 5 21. 8% cash assets 3,516. 1 16. 6% other assets 953. 1 4. 5% 21,181. 1 100% Total SOURCE: MARKETLINE M AR KE TL IN E Figure 2: China banks sector category segmentation: % share, by value, 2012 SOURCE: MARKETLINE China - Banks

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED M AR KE TL IN E 0099 - 2013 - 2012 Page | 9 Geography segmentation China accounts for 50. 2% of the Asia-Pacific banks sector value. Japan accounts for a further 26. 2% of the Asia-Pacific sector. Table 3: China banks sector geography segmentation: $ billion, 2012 Geography 2012 % China 21,181. 0 50. 2 Japan 11,065. 8 26. 2 South Korea 2,136. 1 5. 1 India 1,381. 3 3. 3 Rest of Asia-Pacific 6,423. 4 15. 2 42,187. 6 100% Total SOURCE: MARKETLINE M AR KE TL IN E Figure 3: China banks sector geography segme ntation: % share, by value, 2012

SOURCE: MARKETLINE China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED M AR KE TL IN E 0099 - 2013 - 2012 Page | 10 MARKET OUTLOOK Market value forecast In 2017, the Chinese banks sector is forecast to have a value of $39,139. 7 billion, an increase of 84. 8% since 2012. The compound annual growth rate of the sector in the period 2012–17 is predicted to be 13. 1%. Table 4: China banks sector value forecast: $ billion, 2012 –17 Year $ billion CNY billion € billion % Growth 2012 21,181. 0 133,686. 3 16,497. 4 17. 5% 2013 23,543. 6 148,597. 8 18,337.

5 11. 2% 2014 26,818. 4 169,266. 8 20,888. 1 13. 9% 2015 30,462. 1 192,264. 3 23,726. 1 13. 6% 2016 34,551. 3 218,074. 0 26,911. 1 13. 4% 2017 39,139. 7 247,034. 2 30,484. 9 13. 3% CAGR: 2012–17 SOURCE: MARKETLINE 13. 1% M AR KE TL IN E Figure 4: China banks sector value forecast: $ billion, 2012 –17 SOURCE: MARKETLINE China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED M AR KE TL IN E 0099 - 2013 - 2012 Page | 11 FIVE FORCES ANALYSIS The banks market will be analyzed taking banks, bank holding companies and financial holding compa nies as players.

The key buyers will be taken as individual consumers and businesses, and information communication technology system providers as the key suppliers. Summary Figure 5: Force s driving competition in the banks sector in China, 2012 SOURCE: MARKETLINE M AR KE TL IN E Rivalry in the Chinese banking industry is intense as players look to maximize revenues in a crowded marketplace. Banks, insurance companies, investment banks, credit unions, thrifts, advisory firms and credit card issuers, among others, are all active within the industry. The wide range of customer types weakens buyer power.

However, the recent economic crisis has led to an erosion of trust in banks as safe places to deposit savings and thus reduce d the number of buyers. Players operating within this industry need a reliable and secure ICT infrastructure in place. The providers of these products and services tend to be large, with the ability to assess the complex ICT needs of a major bank and offer appropriate solutions, which strengthens supplier power. The high level of government regulation may serve to dissuade new entrants to the Chinese banking industry, as does the fact the fact that the Chinese government owns the country? s four biggest banks.

Substitutes include loaning from family, friends or loan sharks, or renting rather than buying properties. The benefits of such alternatives are difficult to gauge since different investments offer varied returns and risk. China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 2013 - 2012 Page | 12 Buyer power Figure 6: Drivers of buyer power in the banks sector in China, 2012 SOURCE: MARKETLINE M AR KE TL IN E The banking industry serves a wide range of customer types: from mass -market individual consumers to high net-worth individuals; and from small, local businesses to major corporates.

Due to the large number of buyers, the gain or loss of an individual customer is not significant, thereby reducing buyer power. This is, however, not the case with large companies, some of whom generate a large amount of revenue and profit for banks. The effect of gaining or losing one or more of these „key clients? would be significant. The recent economic crisis has led to an erosion of customers' trust in banks as safe places to deposit savings, and has thus reduced the number of buyers, particularly for those banks that were most affected.

Product differentiation exists in the form of fees, interest rates on loans and deposits, lending limits, notice periods for withdrawing, customer convenience, as well as general quality and range of product and service offerings. These factors, along with customer service, reputation and security against fraud, influence customer loyalty. However, there is little differentiation between the core services for a given custom er type, e. g. extending credit, deposit and withdrawal of funds for mass -market individual consumers; asset management and private banking for high networth individuals and businesses.

Customers are therefore sensitive to price changes in the form of fees and interest rates. Switching costs depend upon the product and customer type. For individual consumers, early exit from a mortgage usually incurs a fee, whilst the cost of switching credit cards is minimal, with many providers offering 0% on balance transfers. For business customers, with more complex banking needs, the switching process may be more complicated and with a potential impact on their business operations. This reduces their buyer power.

Overall, buyer power is assessed as moderate in the Chinese banking industry. China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 2013 - 2012 Page | 13 Supplier power Figure 7: Drivers of supplier power in the banks sector in China, 2012 SOURCE: MARKETLINE M AR KE TL IN E Players operating within this industry need a reliable and secure ICT infrastru cture in place, increasing the power of such providers. In addition, the only providers of these products and services capable of satisfying a large bank?

s needs tend to be large, with the ability to assess the complex ICT needs of a major bank and offer a ppropriate solutions, further strengthening supplier power. Furthermore, due to the size and appearance of offices required by banks, only a small number of real estate management and construction companies are able to provide what is needed, thus strength ening their power as suppliers. Switching costs can be high when employees are trained to use a specific system that is integral to a bank's operations.

Players are unlikely to integrate backwards into the business of suppliers, who can offer their products and services to a wide range of other industries. As a result, supplier power is further increased. Supplier power in this industry is assessed as strong overall. China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 2013 - 2012 Page | 14 New entrants Figure 8: Factors influencing the likelihood of new entrants in the banks sector in China, 2012 SOURCE: MARKETLINE M AR KE TL IN E Entering the Chinese banking industry as an entirely new start-up company would require substantial investment in brand-building and distribution networks (e. g. setting up a branch network).

Moreover, new players need to have substantial funds to lend and additional capital as safety reserves. Smaller entry may be possible by only delivering products and services through the telephone and/or internet. However, a new playe r would still be competing with similar services offered by large, existing players. Reputation is also a key factor in this industry, with a players' reputation concerning security and customer service holding particular importance. Thus, huge investments are required in marketing and customer service initiatives.

Another barrier to entry is compliance with the regulations that oversee the banking industry (e. g. pri vacy, disclosure, fraud prevention, anti -money laundering, anti-terrorism). These regulations frequently change and, therefore, make it difficult for players to predict the impact they will have on their business. For example, Basel III legislation (a new global regulatory standard on bank capital adequacy and liquidity agreed by the members of the Basel Committee on Banking Supervision) will increase the mandatory Tier 1 capital ratio of banks from 4% to 6% by January 2015.

This will make operating in the industry more capital intensive and in turn more difficult, thus reducing the likelihood of new entrants. The difficulty of compliance with such regulation may, therefore, serve to dissuade new entrants from entering the Chinese banking industry. The China Banking Regulatory Commission (CBRC), which is responsible for regulating the industry, has committed to implementation of this Basel III legislation. Furthermore, enhanced restrictions have been placed on new loans and refinancing to developers by the CBRC.

This increased level of government regulation may serve to dissuade new entrants to an e xtent. Furthermore, the Chinese banking industry remains heavily influenced by the Chinese government. For example, a recent report, published by the United States Congressional Research Service, claims that “China? s banks operate in a hybrid world in which they are at time encouraged to make decisions based on commercial considerations, and at other times expected to abide by government directives”. This is exacerbated by the fact that the country?

s four largest banks (the Bank of China, the China Construction Bank, the Industrial and Commercial Bank of China and the Agricultural Bank of China) are state-owned. Such a complex relationship between the Chinese industry and the Chinese government could act as a deterrent for prospective new entrants. China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 2013 - 2012 Page | 15 New entrants may be discouraged by the recent global economic crisis, which heavily affected the banking industry, with high-profile acquisitions, mergers and bankruptcies, even amongst some of the world?

s largest financial institutions. However, this was much more of a factor in the US and Europe, and the Chinese banking industry was not hit with substantial losses as a result. Strong industry growth, both in the recent past, and projected for the future, may attract new entrants. The likelihood of new entrants to this industry is assessed as moderate overall. China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 2013 - 2012 Page | 16 Threat of substitutes Figure 9: Factors influencing the threat of substitute s in the banks sector in China, 2012

SOURCE: MARKETLINE M AR KE TL IN E Gifts and loans from family or friends may provide a substitute for loans from banks and credit cards. Other substitutes can include lending through loan sharks or payday lenders. However, these will not be as stringently regulated as banks and do not have a good reputation among consumers. It is also possible for most consumers to save for major purchases. In itself, this is nearly always a cheaper option than a bank loan, which accrues interest. Individuals access mortgages in order to buy homes, and so rented accommodation is one substitute threatening mortgage lenders.

Assessing the true cost of this substitute is difficult: while monthly rent may be lower than mortgage repayments for comparable properties, a homeowner ends up with an asset whose ultimate value may be much greater than the cost of the mortgage. However, confidence in industry players may still be low following their role in the economic crisis. Overall, there is a moderate threat from substitutes. China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 2013 - 2012 Page | 17 Degree of rivalry

Figure 10: Drivers of degree of rivalry in the banks sector in China, 2012 SOURCE: MARKETLINE M AR KE TL IN E There are numerous competitors within the banking industry. Players must compete with banks, thrifts, credit unions, investment banking firms, investment advisory firms, brokerage firms, investment companies, insurance companies, mortgage banking companies, credit card issuers, mutual fund companies and e -commerce and other internet-based companies. Some of these competitors are large multinationals, which places greater competitive pressure on market players.

However, according to a report published by the United States Congressional Research Service (CRS) in February 2012, foreign banks are severely limited in their operations within China. For example, the report states that US banks face greater barriers to opening new branches or expanding operations than Chinese commercial banks. Difficulty in expansion could, therefore, serve to increase rivalry amongst multinational banks, although Chinese commercial banks will be able to enjoy a less competitive environment.

Most banks offer a diverse range of products including: retail banking (home, small business, insurance), card services, investment banking, asset management, cash management, e-commerce products and services. In addition, players can differ in the method of delivering their products: retail branch, online or telephone banking. Both product and geographical diversification ease rivalry, as companies depend less on a specific market for success. However, fixed costs for players in this industry are relatively high, and include the cost of developing branches, advertising and brand building, thereby increasing rivalry.

Strong industry growth serves to alleviate rivalry to an extent. Overall, rivalry within this industry is assessed as moderate. China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 2013 - 2012 Page | 18 LEADING COMPANIES Agricultural Bank of China Limited Table 5: Agricultural Bank of China Limited: key facts Head office: No 69 Jianguomen Nei Avenue, Dongcheng District, Beijing 100005 CHN Telephone: 86 10 8510 8888 Website: www. abchina. com Financial year-end: December Ticker: 601288, 1288

Stock exchange: Shanghai, Hong Kong SOURCE: COMPANY WEBSITE M AR KE TL IN E Agricultural Bank of China Limited (ABC or "the group") is a Chinese s tate-owned commercial bank. The group provides various corporate and retail banking products and services for a range of customers and carries out treasury operations for its own accounts or on behalf of customers. ABC's business operations also cover investment banking, fund management, and financial leasing. ABC finances projects in agro -industry, rural infrastructure and agricultural development.

At the end of 2011, the group had total assets of CNY11,677,577m, deposits of CNY9,622,026m and loans of CNY5,628,705m. The group had 23,461 domestic branch outlets, including the head office, 32 tier -1 branches, five branches directly managed by the head office, 316 tier-2 branches, 3,479 tier-1 sub-branches and 19,628 other establishments. ABC's overseas branch outlets consisted of three overseas branches and four overseas representative offices. The group's major subsidiaries consisted of six domestic subsidiaries and three overseas subsidiaries.

ABC operates through four business segments: corporate banking, p ersonal banking, treasury operations, and others and unallocated. The group's corporate banking segment provides financial products and services to corporations, government bodies and financial organizations. This segment may be further segmented into units that provide corporate loans and deposits, small enterprise banking business services, institutional banking, settlement and cash management, trade financing and international settlement, investment banking, custody service, and pension business.

In 2011 , ABC pushed forward the business transformation for corporate banking and optimized credit resources allocation in response to the changes of market and policies actively. More resources were allocated to support the development of national key economic development zones, strategic emerging industries and industries of energy conservation and emission reduction, and loans to Industries with high energy consumption, high pollution and overcapacity were under strict control. It focused on the development of green financing and supply chain financing to promote our

business innovation. The group also enhanced product cross -selling and integrated marketing throughout the whole bank. Investment banking, bancassurance, custody, settlement and cash management busi nesses achieved rapid growth and the fee- and commission based businesses kept growing steadily. The o verall competitiveness of the Bank has been further enhanced. The regional market shares of some city branches increased significantly due to the accelera ted reform and development of major city branches.

ABC continued to refine the customer segmentation -based management system, expanded the core customer base of head office, tier-1 branches and tier-2 branches, strengthened the strategic cooperation with large-scale customers and improved the capability of integrated financial services. At the end of 2011, the group had approximately 2. 81 million corporate banking customers. China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 2013 - 2012 Page | 19

ABC's personal banking segment of the ABC provides financial products and services to individual customers. This segment may be further segmented into units that accept retail deposits, and provide retail loans, bank cards, agency distribution of fund products, agency sales of PR China government bonds, and private banking business. At t he end of 2011, ABC had over 395 million retail customers, ranking first among all large commercial banks, and among which it had 14. 06 million VIP customers.

The group had over 12,800 domestic Associate Financial Planners (AFP), o ver 1,500 international Certified Financial Planners (CFP) and more than 590 Executive Financial Planners (EFP), maintaining a leading position among all commercial banks in China. The group's treasury operations segment conduct money market or repurchase transactions, holding of derivative positions, and debt instruments investments, for its own accounts or on behalf of customers. This segment may be further segmented into units that cater to money market activities, investment and trading activities, wealth management, and precious metal business activities.

ABC's others and unallocated segment comprise equity investments and the remaining part of the group that is not attributable to any of the above segments, and certain assets, liabilities, income or expenses of the head office that could not be allocated on a reasonable basis. Key Metrics The company recorded revenues of $99,875 million in the fiscal year ending December 2012, an increase of 18. 4% compared to fiscal 2011. Its net income was $22,480 million in fiscal 2012, compa red to a net income of $18,891 million in the preceding year.

Table 6: Agricultural Bank of China Limited: key financials ($) $ million 2008 2009 2010 2011 2012 52,753. 3 51,659. 6 62,872. 5 84,352. 5 99,875. 4 7,975. 0 10,069. 4 14,704. 2 18,890. 5 22,479. 9 Total assets 1,086,754. 9 1,376,206. 6 1,601,606. 0 1,809,242. 8 2,051,986. 6 Total liabilities 1,041,740. 5 1,323,076. 2 1,517,905. 6 1,708,569. 2 1,935,577. 0 Revenues Net income (loss) SOURCE: COMPANY FILINGS M AR KE TL IN E Table 7: Agricultural Bank of China Limited: key financials (CNY) CNY million Revenues Net income (loss) 2008 2009 2010 2011 2012 340,491. 0 333,432. 0 405,804. 0 544,445. 0 644,636. 0 51,474. 0 64,992. 0 94,907. 0 121,927. 0 145,094. 0 Total assets 7,014,351.

08,882,588. 0 10,337,406. 0 11,677,577. 0 13,244,342. 0 Total liabilities 6,723,810. 0 8,539,663. 0 9,797,170. 0 11,027,789. 0 12,492,988. 0 SOURCE: COMPANY FILINGS China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED M AR KE TL IN E 0099 - 2013 - 2012 Page | 20 Table 8: Agricultural Bank of China Limited: key financial ratios Ratio 2008 2009 2010 2011 2012 Profit margin 15. 1% 19. 5% 23. 4% 22. 4% 22. 5% Revenue growth 52. 4% (2. 1%) 21. 7% 34. 2% 18. 4% Asset growth 32. 2% 26. 6% 16. 4% 13. 0% 13. 4% Liabilities growth 11. 4% 27. 0% 14. 7% 12. 6% 13. 3% Debt/asset ratio

95. 9% 96. 1% 94. 8% 94. 4% 94. 3% Return on assets 0. 8% 0. 8% 1. 0% 1. 1% 1. 2% SOURCE: COMPANY FILINGS M AR KE TL IN E Figure 11: Agri cultural Bank of China Limited: revenues & profitability SOURCE: COMPANY FILINGS China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED M AR KE TL IN E 0099 - 2013 - 2012 Page | 21 Figure 12: Agri cultural Bank of China Limited: assets & liabilities SOURCE: COMPANY FILINGS China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED M AR KE TL IN E 0099 - 2013 - 2012 Page | 22 Bank of China Limited

Table 9: Bank of China Limited: key facts Head office: 1 Fuxingmen Nei Dajie, Beijing 100818 CHN Telephone: 86 10 6659 6688 Fax: 86 10 6659 3777 Website: www. boc. cn Financial year-end: December Ticker: 601988, 3988 Stock exchange: Shanghai, Hong Kong SOURCE: COMPANY WEBSITE M AR KE TL IN E Bank of China Limited (BOC or "the group" or "the bank") is engaged in providing commercial banking, including corporate banking, personal banking and financial market. It also offers other financial services, including investment banking, insurance, fund management, direct investment and investment management, and aircraft leasing.

The group operates in Asia Pacific and Europe. The bank operates through six business segments: corporate banking, personal banking, treasury operations, insurance, other, and investment banking. The corporate banking segment provides services to corporate customers, government authorities and financial institutions. This segment offers products and services, including current accounts, deposits, overdrafts, lending, custody, trade related products and other credit facilities, foreign currency and derivative products.

The personal banking segment provides services to retail customers. This segment offers products and services, including savings deposits, personal loans, credit cards and debit cards, payments and settlements, wealth management products and funds and insurance agency services. The treasury operations segment consist of foreign exchange transactions, customer-based interest rate and foreign exchange derivative transactions, money market transactions, proprietary trading and asset and liability management. The insurance segment provides underwriting of general and life

insurance business and insurance agency services. The group offers insurance services through another wholly-owned subsidiary, Bank of China Group Insurance Company Limited and its subordinate and associate companies. The other operations segment comprises investment holding and other miscellaneous activities. The investment banking segment consists of debt and equity underwriting and financial advisory, sales and trading of securities, stock brokerage, investment research and asset management services, and private equity investment services.

The group conducts investment banking business through Bank of Ch ina International Holdings Limited, its wholly-owned subsidiary. Key Metrics The company recorded revenues of $90,129 million in the fiscal year ending December 2012, an increase of 20. 4% compared to fiscal 2011. Its net income was $21,603 million in fisca l 2012, compared to a net income of $19,240 million in the preceding year. China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED 0099 - 2013 - 2012 Page | 23 Table 10: Bank of China Limited: key financials ($)

$ million 2008 2009 2010 2011 2012 51,226. 9 48,286. 1 57,750. 8 74,851. 3 90,128. 6 9,971. 5 12,521. 5 16,177. 8 19,239. 9 21,602. 6 Total assets 1,077,045. 1 1,355,965. 4 1,620,579. 0 1,832,868. 4 1,964,646. 6 Total liabilities 1,001,145. 4 1,271,465. 8 1,515,821. 0 1,715,755. 5 1,831,165. 3 Revenues Net income (loss) SOURCE: COMPANY FILINGS M AR KE TL IN E Table 11: Bank of China Limited: key financials (CNY) CNY million 2008 2009 2010 2011 2012 330,639. 0 311,658. 0 372,747. 0 483,120. 0 581,726. 0 64,360. 0 80,819. 0 104,418. 0 124,182. 0 139,432. 0

Total assets 6,951,680. 0 8,751,943. 0 10,459,865. 0 11,830,066. 0 12,680,615. 0 Total liabilities 6,461,793. 0 8,206,549. 0 9,783,715. 0 11,074,172. 0 11,819,073. 0 Revenues Net income (loss) SOURCE: COMPANY FILINGS M AR KE TL IN E Table 12: Bank of China Limited: key financial ratios Ratio 2008 2009 2010 2011 2012 Profit margin 19. 5% 25. 9% 28. 0% 25. 7% 24. 0% Revenue growth 12. 7% (5. 7%) 19. 6% 29. 6% 20. 4% Asset growth 16. 0% 25. 9% 19. 5% 13. 1% 7. 2% Liabilities growth 16. 6% 27. 0% 19. 2% 13. 2% 6. 7% Debt/asset ratio 93. 0% 93. 8% 93. 5% 93. 6%

93. 2% Return on assets 1. 0% 1. 0% 1. 1% 1. 1% 1. 1% SOURCE: COMPANY FILINGS China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED M AR KE TL IN E 0099 - 2013 - 2012 Page | 24 Figure 13: Bank of China Limited: revenues & profitability SOURCE: COMPANY FILINGS M AR KE TL IN E Figure 14: Bank of China Limited: assets & liabilities SOURCE: COMPANY FILINGS China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED M AR KE TL IN E 0099 - 2013 - 2012 Page | 25 China Construction Bank Corporation

Table 13: China Construction Bank Corporation: key facts Head office: Number 25 Finance Street, Xicheng District, Beijing CHN Telephone: 86 10 6621 5533 Fax: 86 10 6621 8888 Website: www. ccb. com Financial year-end: December Ticker: 939, 601939 Stock exchange: Hong Kong, Shanghai SOURCE: COMPANY WEBSITE M AR KE TL IN E China Construction Bank Corporation (CCB or "the company") is one of the leading commercial bank in China, offering a range of financial products and services including retail banking, corporate banking, investment services and property lending.

CCB operates through a network of 13,581 branches and sub branches in China. In addition, CCB operates overseas branches in Hong Kong, Singapore, Frankfurt, Johannesburg, Tokyo, Seoul, New York, Ho Chi Minh City and Sydney, and representative offices in Taipei and Moscow, and owned multiple subsidiaries, such as CCB Asia, CCB Financial Leasing, CCB International, CCB Trust, Sino-German Bausparkasse, CCB London, CCB Principal Asset Management, and CCB Life. The company operates through four business segments: corporate banking, personal banking, treasury business, and others.

The corporate banking segment offers a range of financial products and services to corporations, government agencies and financial institutions. The products and services include corporate loans, trade finan cing, deposit taking activities, agency services, financial consulting and advisory services, cash management services, remittance and settlement services, custody services and guarantee services. The personal banking segment offers a range of financial products and services to individual and retail customers.

The products and services comprise personal loans, deposit taking activities, card business, personal wealth management services, remittance services and securities agency services. The treasury business segment covers the company's treasury operations. The treasury enters into inter-bank money market transactions, repurchase and resale transactions, and invests in debt securities. It also trades in derivatives and foreign currency for its own account. The treasury carries out customer-driven derivatives, foreign currency and precious metal trading.

Its function also includes the management of the company's overall liquidity position, including the issuance of debt securities. The other segment represents equity investments and the revenues, results, assets and liabilities of overseas branches and subsidiaries. Key Metrics The company recorded revenues of $108,369 million in the fiscal year ending December 2012, an increase of 22. 3% compared to fiscal 2011. Its net income was $29,930 million in fiscal 2012, compared to a net income of $26,224 million in the preceding year. China - Banks © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED

0099 - 2013 - 2012 Page | 26 Table 14: China Construction Bank Corporation: key financials ($) $ million 2008 2009 2010 2011 2012 Revenues 61,439. 6 60,315. 8 69,090. 7 88,581. 6 108,369. 3 Net income (loss) 14,353. 3 16,552. 4 20,891. 8 26,223. 7 29,929. 8 Total assets 1,170,589. 4 1,490,975. 9 1,674,875. 6 1,902,862. 2 2,164,853. 1 Total liabilities 1,098,148. 5 1,404,365. 2 1,566,282. 2 1,776,334. 4 2,017,727. 3 298,581 301,537 313,867 329,438 355,290 Employees SOURCE: COMPANY FILINGS M AR KE TL IN E Table 15: China Construction Bank Corporation: key financials (CNY) CNY million 2008 2009 2010 2011 2012 396,5