Beijing, 29 April 2008 - Industrial and Commercial Bank of China Limited (“ICBC” or the “Bank”, SSE: 601398; SEHK: 1398) today announced the financial results for the first quarter of financial year 2008. Based on International Financial Reporting Standards, ICBC’s profit after tax for the first quarter of 2008 was RMB 33.282 billion, up76.10% from the same period last year. (Based on PRC GAAP, ICBC’s profit after tax for the quarter was RMB 33.282 billion, up 76.17% from the same period last year). Earnings per share were RMB 0.10.

Since the beginning of 2008, the Bank further implemented its strategic adjustments and developed its business in an innovative manner, which resulted in enhancement of its profitability and delivered outstanding returns to shareholders. In the first quarter of 2008, ICBC’s return on average total assets (annualized) reached 1.49%, up 51 basis points from the same period in 2007. Return on weighted average equity (annualized) was 23.99%, up 825 basis points from the same period in 2007. While enhancing its profitability, ICBC further strengthened its risk management capabilities, resulting in a substantial improvement in asset quality. As at the end of the first quarter, ICBC’s non-performing loan ratio was 2.51%, down 0.23 percentage points from the end of 2007. Allowance to NPL ratio reached 110.72%, up 7.22 percentage points from the end of 2007, further enhancing the Bank’s ability to withstand risks.

The strong performance for the first quarter was the result of rapid growth in net fee and commission income. This also reflects that ICBC has achieved encouraging results by adhering to the strategy of focusing on value-enhancing and sustainable development. During the first quarter, ICBC further stepped up its efforts in service and product innovation, which resulted in substantial growth in intermediary businesses including asset custody, foreign exchange business, wealth management, investment banking, bank cards and local currency settlement. The Bank’s net fee and commission income increased by 86.4% from the same period in 2007  to RMB 12.1 billion, accounting for 15.9% of the Bank’s operating income, up 4.1 percentage points from the same period last year, further enhancing the Bank’s revenue structure.

In the first quarter of 2008, ICBC further adjusted and optimized the structure of its asset and liability business, resulting in a substantial improvement in its profitability. The Bank’s yield on assets increased significantly. Its net interest income reached RMB 66.3 billion, up 36.4% from the same period last year. In the lending business, ICBC adhered to the government’s macroeconomic tightening policy. While controlling the overall growth in loans, ICBC also proactively managed its loan business for different sectors to further enhance its loan product and client base structures. The Bank reduced lending to a number of highly polluting and high energy consuming sectors as well as industries with excess production capacity. At the same time, the Bank increased loans for infrastructure, modern manufacturing, new service industries and innovative and energy conserving sectors. At the end of the first quarter of 2008, ICBC’s total renminbi loans reached RMB 3,888.7 billion, up RMB 145.5 billion or 3.9% from the end of 2007. The Bank also achieved strong growth in its liability business. At the end of the first quarter, ICBC’s total customer deposits reached RMB 7,228.8 billion, an increase of 4.8% from the end of 2007, while deposits from other banks and financial institutions reached RMB 784.0 billion, an increase of 7.7% from the end of last year.

In 2008, ICBC made further progress in overseas expansion. In the first quarter of 2008, ICBC completed the acquisition of a 79.93% stake in Seng Heng Bank in Macau and a 20% equity interest in Standard Bank Group of South Africa. The Standard Bank transaction was the largest foreign investment by a Chinese company to date. According to the business cooperation agreement, ICBC and Standard Bank will commence in-depth cooperation in areas including trade finance, international settlement, fund transactions and sharing of client resources. In addition, the Bank is making steady progress in seeking approval from foreign regulators to establish branches in New York and Sydney as well as a subsidiary bank in Dubai. Through opening new branches and acquisitions, ICBC will continue to establish an international business network that focuses on emerging markets, covers major international financial centres and China’s major economic and trading partners, and integrates with the Bank’s domestic operations.