On October 29th, 2007, Industrial and Commercial Bank of China Limited (the stock codes, SH: 601398；HK: 1398) published its financial reports of the first three quarters of 2007.

The reports showed that, ICBC continued its energetic momentum since first half year to the third quarter and made another sharp ascent on ability of attaining profit. According to the International Accounting Standards, its after-tax profit achieved at RMB 64.1 billion for the first nine months of the year, which was RMB 14.2 billion more than the total profit of the year 2006, and the increase rate increased 66.0% over the same period of last year. According to the China Accounting Standards, its after-tax profit achieved at RMB 63.9 billion, which was RMB 14.6 billion more than the total profit of the year 2006, and the increase rate increased 65.5% over the same period of last year. The increasing rate was much more than the rate of 30.2%, which was the rate of quadrennial series of compound growth rate from the year 2003 to 2006.

At the same time, the asset quality of ICBC achieved a further step, and both of the non-performing loan balance and ratio continued to decrease. The non-performing loan rate decreased from 3.79% to 3.06% from the end of 2006 to the third-quarter-end of 2007; and the granting and reserving coverage rate increased from 70.56% to 88.12%, which meant that the bank attained more powerful anti-risk ability.

The excellent performances of ICBC brought prosperous returns to its shareholders. At the end of the third quarter of 2007, the ICBC average asset return rate ascended to 35 basic points to 1.06% according to annual accounting standards, and the average weighted equity return rate grew 176 basic points to 17.13%, both of which held the leading position among the same industry of China.

On the market side, as the "aircraft carrier" of leading enterprise of China financial field, it was so out of expectation that ICBC had made such powerful increasing impetus after only one year of listing. The analysts believed that, ICBC had large and stable customer base, advanced distribution , abundant financial products, as well as developed midst business platform and system, and it had made some degree of effects for its management transformation, and its fast growing impetus can be continuous.

The reports showed that the reasons why ICBC got soaring profit in the first three quarters of 2007 mainly concluding that, the income of credit business was stable; the profit structure was effectively adjusted;  debt cost was controlled well, and the midst business increase was powerful.

In the first three quarters of 2007, the various loans of RMB of domestic organizations of ICBC had increased RMB 348.72 billion, and the increase rate was 10.3%. The loans mainly floated to controllable risk and well returned fields, among which the personal loan increased 142.4 billion, with the increase rate of 24.6%; small-scaled enterprises had increased 63.1 billion with the increase rate of 44%. Through the continuous optimization of credit and loan structure and expansion of high-return loans, the complex profit of loans of ICBC had been keeping increasing from 5.42% to 5.81% during the end of 2006 to the first half year of 2007, and then to 5.88% till the third quarter of the year. Meanwhile, ICBC was positively perfecting the asset trading platform and market risk management system, improving investment structure, optimizing investment category, which had greatly increased the return of un-reconstruction debt bond investment from 2.84% to 3.34% from the end of 2006 to the third quarter of 2007, which added 50 basic points. On the base of these efforts, the net interest profit rate of ICBC had greatly increased 31 basic points with 2.7% increasing rate.

For the debt cost control, ICBC satisfied customer's demands on asset management through initiative managing the debt, which distributed large amount of fixed deposit to financing business, so to enforce the tendency on more current deposit businesses. At the end of the third quarter, the amount of current deposit increased RMB 339.7 billion with the increasing rate of 10.7%. And its proportion had reached to 52% among various deposits, which allowed interest payment rate keep being stable under the environment of continuous increasing on deposit standard interest.

The nonstop fast growing development of midst business had done more and more contribution to ICBC on its profit increase. The handling charge and commission of the first three quarters of 2007 had reached to 24.3 billion Yuan, with 104.7% increasing rate over the same period of last year, which was 62 basic points more than the compound growth rate 42.7% during the year 2003 to 2006, through which showing the situation of accelerating increase. The proportion of the net income of handling charge and commission took 13.3% of the net turnover, which was 4.3% higher over the same period of last year, improving the income structure to a higher level.

And the mutual corporation and development pattern of financing and deposit businesses had been gradually formed. The total amount of financing business of ICBC in the first three quarters had increased 89% over the total amount of last year, and the sales amount of various financing products reached to 814.6 billion which including 722 billion as the personal financing product, increasing 86% than the total amount of last year, which had played a very important role on substitution of personal deposit business. Besides, for the Internet Banking, it had created 73.6 trillion for the trading amount, which had increased 62.8% over the total amount of last year. The proportion of its business amount also improved 5% to 35.1% compared to the last year. The function of product and business distribution of internet channel was more and more enforced. The gross net asset of trusteeship had reached to 1240.1 billion Yuan, with the increase of 776.7 billion Yuan compared to the beginning of this year, with the increasing rate of 168%, and the annual income increasing rate was as high as 371%.The annual income increasing rate of Investment Banking had reached 71%.

At the end of the third quarter of 2007, the total asset of ICBC had reached to RMB 8,597.7 billion (converted into US dollars was 1,144.7 billion dollars), with the increasing rate of 14.5% compared to the beginning of this year; the existing total market value was RMB 2,559.5 billion (converted into US dollars was 343.8 billion dollars), which made it to be the largest financing enterprise on market value of the global financing field.

Notes: according to the convention of capital market, the financial reports of ICBC in the first three quarters have not been audited. Ernst & Young executed the set procedure on relevant reports according to No.4400 of International Standards on Related Services.