Performance in brief (in 6 months, up to June 30, 2007)
● Profit after tax is RMB 41.4 billion, a y-on-y increase of 61.4%
● Profit every share (basic and diluted) is RMB 0.12
● Annualized weighted average return rate is 16.93%
● Annualized average total capital return rate is 1.05%, an increase of 0.34 percentage point from the end of the previous year
● Total capital is RMB 8,301.167 billion, an increase of 10.6% from the end of the previous year
● Capital adequacy rate is 13.67%; core capital adequacy rate is 11.83%
● The cost-income ratio is 31.09%
● Non-performing loan ratio is 3.29%, a decrease of 0.5 percentage point from the end of the previous year
● NPL provisioning coverage ratio is 81.25%, an increase of 10.69 percentage point from the end of the previous year
Remarks: The above-mentioned mid-year performance information is based on International Financial Reporting Standards issued by the International Reporting Standards Code Board. The formula of Cost Income Ratio is operating expenses (deducting sales taxes and additional taxes)/ income.

ICBC (Stock Code SH:601398；HK:1398) held a video news press simultaneously at Beijing and Hong Kong today to release officially the 2007 mid-year performance, which was also the first mid-year report after ICBC's A+H listing. According to the International Financial Reporting Standards, ICBC's after-tax profits in the first half of the year is RMB 41.4 billion, a y-on-y increase of 61.4% (according to China Accounting Standards, ICBC's after-tax profits in the first half of the year is RMB 41.2 billion, a y-on-y increase of 62.0%); profit per share is RMB 0.12.
　　
Since its listing, ICBC has grown rapidly. The y-on-y increase of after-tax profit in 2007 is 61.4%, which exceeds by far the 30.2% net profit compound annual growth rate between 2003 and 2006. Excellent financial performance has created excellent returns. The average annualized total capital return rate in the first half of 2007 reaches 1.05%, an increases of 0.34 percentage points over 2006, and the annualized weighted average return rate is 16.93%. Meanwhile, the non-performing loans balance and ratio keep declining. The non-performing loans ratio has reduced to 3.29% by the end of June from 3.79% at the end of 2006; the NPL provisioning coverage ratio has risen to 81.25% by the end of June from 70.56% at the end of 2006, a further enhancement in its risk resistance.

As is revealed in ICBC's mid-year report, the key factors for ICBC's impressive performance growth in the first half of 2006 include the obvious increase in net interest yield rate, the significant growth in fees and commission income, a reasonable ratio of cost and return, and excellent risk managing capacities.
　　
Net interest yield rate is an important indicator weighing the asset allocation efficiency and profitability of any commercial bank. For the first half of 2007, ICBC's net interest yield is 2.65%, a y-on-y increase of 0.28%. In raising the asset returns rate, ICBC kept optimizing structure of loan varieties, expanding high-yield loans and developing loan pricing power, and compressing the loan scale of the relatively low yield discount notes in the first half of the year, which made the integrated loan yield rise continuously from 5.42% in 2006 to 5.81% in the first half of 2007, an increase of 0.39 percentage points. In the first half of the year, ICBC's loans increased by RMB 284.4 billion, mainly in advantageous industries such as transportation, energy, and infrastructure construction, and high-yield and quality small businesses and individuals as well. Among these loans, personal and small businesses loans increased by RMB 84.3 billion and RMB 48.1 billion respectively, which accounted for 46.5% in all the loans in the first half of the year. Meanwhile, ICBC's interest yield on bond investment reached RMB 42.821 billion, a y-on-y increase of 39.9%. The optimization of investment portfolio and duration varieties stimulated the overall bond yield rate to rise from 2.60% in 2006 to 2.91% in the first half of  2007, an increase of 0.31 percentage points.

In cost control of liabilities, ICBC took initiatives to make adjustment in deposit structure by developing financing business in alterative deposit and thus a large amount of fixed deposit was separated into financing business in the first half of 2007. On this basis, by the end of June, customers' deposit in ICBC increased by RMB 365.88 billion against the end of 2006, an increase of 5.8%; customers' deposit balance reached RMB 6.6923 trillion, among which the percentage of low-cost demand deposit increased by 2 percentage points, reaching 52%; the liabilities structure has been further optimized. Despite the twice interest raises in this year, the total paid deposit interest rate remains stable.

ICBC has achieved new breakthroughs in intermediary business, thanks to its solid customer base, network edge and innovation. The net fee and commission reached a new record of RMB 14.9 billion, an 89.0% y-on-y increase; the percentage against business income reached 12.7%, an increase of 3.5 percentage points over the previous year. With respect of strategic development of intermediary business, ICBC, on the one hand, strived to consolidate and expand traditional intermediary businesses such as clearing, settlement and agency, achieving a profit of RMB 2.7 billion in settlement and clearing in the first half of 2007, a y-on-y increase of 23.5%; on the other hand, ICBC enhanced the development of emerging intermediary businesses such as financing business, asset custody, corporate annuities, investment banking and E-banking. In the first half of the year, the sales of various financing products amounted to RMB 518.5 billion, which surpassed the total sales amount of the whole year in 2006, with a high y-on-y increase of 310%. In addition, in comparison with the same period of last year, the asset custody business increased by 118%; the profit in bank card business increases by 50%; the investment banking business increased by 33%; the profit in E-banking business increased by 83.6%. ICBC has further enhanced its competitive edge in intermediary business.
　　
ICBC achieved rapid growth in operational income in the first half of 2007, and the cost was controlled in effect. The cost-income ratio remained 31.1%, with a y-on-y decrease of 3.1 percentage points compared to 34.2%  in the same period of last year.

In addition, ICBC picked up its development in overall risk management capacity. The organizational structure and operating mechanism of risk management kept improving, the internal rating device in non-retail business was gradually implemented, the internal control system was further developed, and its operation risk remained relatively low in the same industry home and abroad.
　　
Jiang Jianqing, General Director of ICBC, said, "ICBC has won wide recognition from home and abroad for its new achievement in reform and development since its listing. This year, ICBC has brought home various awards presented by internationally renowned media, including the Best Bank of China, Best Retail Bank, Best Custodian Bank and Best Cash Management Bank in China, Most Profitable Bank in Asia, and Best Trading Bank in the world. Moody's also moved ICBC's long-term credit rating from A2 to A1. The rapid development in the first half of the year laid a solid foundation for the whole year. We will seize the opportunities created by China's fast development in economy to achieve co-growth in corporate properties, return of shareholders and profits of both customers and employees. We will forge ahead to build ICBC into a world-class modern financial enterprise. "

Yang Kaisheng, Deputy Director and Governor of ICBC, said, "ICBC has decided to make the first year after listing the quality service year. We have gone all out to improve our financial service, and are determined to build ICBC into a first-class service bank in China in 2 to 3 years. Within 3 years starting from 2007, we plan to put in about RMB 2 billion every year in setting up and transforming business outlets, including 3,000 VIP financial centers and 200 wealth management centers, so that a new service pattern will be formed featuring network classification, functional areas, customer stratification and business separation. Meanwhile, we have also initiated to reform personal financing service and publish business process for high efficiency and better service. In the second half of the year, we shall, in accordance with the strategic goal set by the board of directors, adopt ourselves to the changing financial situation and stick to service improvement and innovation. We shall forge towards a new pattern for consistent development through reform and transformation, with guarded risk management and internal control, and by reinforcing our edge in competition.
　　
Forward-looking Statements
This press release contains some forward-looking statements about ICBC's financial situation, operational performance and business. These statements involve known or unknown risks and uncertainties, and are based on the existing anticipation, assumptions, estimates and projections of the company and the industry the company is in. Unless otherwise required by the law, the company shall not be obliged to update the forward-looking statements to reflect future events or situations, neither to do relevant modification to the statements. Despite the fact that the company believes the anticipation in the statements are reasonable, the company shall not pledge to you that the anticipation will be proved correct in the future, and the investors should be aware that the actual results and the anticipation may differ.