2006 Interim Report－A Share.pdf - 中国银行

Notes to the Condensed Financial Statements
For the six month period ended 30 June 2006
(Amount in millions of Renminbi, unless otherwise stated)
VI. SEGMENT REPORTING(continued)
For the six month period ended 30 June 2005 and as at 31 December 2005
Corporate Personal Treasury Investment
Insurance Others Elimination Total
banking banking Operations banking
Interest income 39,592 31,510 24,679 243 183 128 (18,869) 77,466
Interest expense (13,848) (15,489) (17,623) (180) (537) 18,869 (28,808)
Net interest income 25,744 16,021 7,056 63 183 (409) 48,658
Net fee and commission income 2,522 1,802 215 171 (254) 62 4,518
Net trading income/(expense) 1,584 755 507 203 (48) (8) 2,993
Investment (losses)/income 1 24 (39) 17 146 149
Other operating income, net 29 331 43 (42) 361
29,879 18,579 7,802 398 229 (166) (42) 56,679
Operating and administrative
expenses
(7,876) (10,148) (2,680) (195) (88) (301) 288 (21,000)
Business tax and surcharges (1,455) (436) (760) (2) (1) (16) (2,670)
Operating profit 20,548 7,995 4,362 201 140 (483) 246 33,009
Non-operating income, net 107 215 71 1 (4) 1,001 (246) 1,145
Profit before impairment losses 20,655 8,210 4,433 202 136 518 34,154
Impairment (losses)/ write-back (5,471) 819 19 1 (2) 58 (4,576)
Profit before tax 15,184 9,029 4,452 203 134 576 29,578
Income tax (10,860)
Profit after tax 18,718
Minority interests (2,284)
Net profit 16,434
Segment assets 1,658,718 603,891 2,399,377 15,159 12,398 77,644 (24,381) 4,742,806
Capital expenditure 342 665 32 4 25 698 1,766
With effect from 1 January 2006, the internal funding transfer pricing mechanism of the Bank was revised. The new
pricing mechanism is based on the external market deposit and lending rates, adjusted for pre-determined margins
with reference to the different products and respective maturities. Previously, blended mid prices between the Bank’s
average cost of funding and average yield on interest bearing assets were adopted, without taking into consideration
the variety of products and respective maturities. The reason for the change is primarily to better reflect the performance
of the individual segments as part of the Bank’s efforts to enhance its assets and liabilities management
capability.
The effect of the change in basis of pricing between business segments for the period ended 30 June 2005 is summarized
below:
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