Annual Report 2012

1 FINANCIAL HIGHLIGHTSThe financial information set forth in this annual report is prepared on a consolidated basis in accordance with the IFRS, and expressed in RMBunless otherwise stated.(Expressed in millions of RMB unless otherwise stated) 2012 2011 Change (%) 2010 2009 2008For the yearNet interest income 353,202 304,572 15.97 251,500 211,885 224,920Net fee and commission income 93,507 86,994 7.49 66,132 48,059 38,446Other operating income 15,824 7,837 101.91 8,148 9,370 6,381Operating income 462,533 399,403 15.81 325,780 269,314 269,747Operating expenses (171,081) (144,537) 18.36 (121,366) (105,146) (99,193)Impairment losses (40,041) (35,783) 11.90 (29,292) (25,460) (50,829)Profit before tax 251,439 219,107 14.76 175,156 138,725 119,741Net profit 193,602 169,439 14.26 135,031 106,836 92,642Net profit attributable to equity shareholders of the Bank 193,179 169,258 14.13 134,844 106,756 92,599As at 31 DecemberNet loans and advances to customers 7,309,879 6,325,194 15.57 5,526,026 4,692,947 3,683,575Total assets 13,972,828 12,281,834 13.77 10,810,317 9,623,355 7,555,452Deposits from customers 11,343,079 9,987,450 13.57 9,075,369 8,001,323 6,375,915Total liabilities 13,023,219 11,465,173 13.59 10,109,412 9,064,335 7,087,890Total equity attributable to equity shareholders of the Bank 941,732 811,141 16.10 696,792 555,475 465,966Share capital 250,011 250,011 – 250,011 233,689 233,689Core capital 875,752 750,660 16.66 634,683 491,452 431,353Supplementary capital 238,168 189,855 25.45 144,906 139,278 86,794Net capital 1,093,429 924,506 18.27 762,449 608,233 510,416Risk-weighted assets 7,637,705 6,760,117 12.98 6,015,329 5,197,545 4,196,493Per share (In RMB)Basic and diluted earnings per share 0.77 0.68 13.24 0.56 0.45 0.40Final cash dividend proposed after the reporting period 0.268 0.2365 13.32 0.2122 0.202 0.0837Net assets per share 3.80 3.27 16.21 2.80 2.39 2.00Financial ratios (%) 2012 2011 Change +/(-) 2010 2009 2008Profitability indicatorsReturn on average assets 1 1.47 1.47 – 1.32 1.24 1.31Return on average equity 21.98 22.51 (0.53) 22.61 20.87 20.68Net interest spread 2.58 2.57 0.01 2.40 2.30 3.10Net interest margin 2.75 2.70 0.05 2.49 2.41 3.24Net fee and commission income to operating income 20.22 21.78 (1.56) 20.30 17.84 14.25Cost-to-income ratio 2 29.60 29.93 (0.33) 31.55 33.05 30.89Loan-to-deposit ratio 66.23 65.05 1.18 62.47 60.24 59.50Capital adequacy indicatorsCore capital adequacy ratio 3 11.32 10.97 0.35 10.40 9.31 10.17Capital adequacy ratio 3 14.32 13.68 0.64 12.68 11.70 12.16Total equity to total assets 6.80 6.65 0.15 6.48 5.81 6.19Asset quality indicatorsNon-performing loan ratio 0.99 1.09 (0.10) 1.14 1.50 2.21Allowances to non-performing loans 271.29 241.44 29.85 221.14 175.77 131.58Allowances to total loans 2.69 2.64 0.05 2.52 2.63 2.911. Calculated by dividing net profit by the average of total assets at the beginning and end of the year.2. In order to maintain consistency for cost-to-income ratio between the PRC and IFRS reports, as well as taking other banks’ relevant disclosures into considerations, the calculation of such a ratio has beenamended to operating expenses (after deductions of business taxes and surcharges and other business costs) divided by operating income (after deduction of other business costs). The comparative figureshave been amended accordingly.3. Calculated in accordance with the Measures for the Management of Capital Adequacy Ratios of Commercial Banks and the relevant regulations issued by the CBRC.China Construction Bank Corporation annual report 20125