中国建设银行2008年中期业绩主要指标

（截至2008年6月30日）

·经营收入为人民币1,357.36亿元，同比增长36.04%

（2007年上半年为人民币997.73亿元）

·税前利润为人民币756.55亿元，同比增长49.69%

（2007年上半年为人民币505.42亿元）

·净利润为人民币586.92亿元，同比增长71.34%

（2007年上半年为人民币342.55亿元）

·每股基本及摊薄盈利人民币0.25元，同比增长66.67%

(2007年上半年为人民币0.15元）

·年化平均资产回报率1为1.72%，提高0.54个百分点
（2007年上半年为1.18%）

·年化平均股东权益回报率2为26.36%，提高6.56个百分点
(2007年上半年为19.80%)

·净利差为3.16%，提高0.15个百分点

（2007年上半年为3.01%）

·净利息收益率为3.29%，提高0.18个百分点
(2007年上半年为3.11%)

·手续费及佣金净收入对经营收入比率为14.86%，提高2.17个百分点

(2007年上半年为12.69%)

·成本对收入比率为34.03%，下降3.33个百分点
（2007年上半年为37.36%）

·资产总额为人民币70,577.06亿元，比上年末增长6.96%
（2007年12月31日为人民币65,981.77亿元）

·核心资本充足率3为10.08%，比上年末下降0.29个百分点
（2007年12月31日为10.37%）

·资本充足率3 为12.06% ，比上年末下降0.52个百分点
（2007年12月31日为12.58%）

·减值准备对不良贷款比率为117.23%，比上年末提高12.82个百分点
（2007年12月31日为104.41%）

·不良贷款率为2.21%，比上年末下降0.39个百分点
(2007年12月31日为2.60%) 

1.    按照净利润除以该期期初及期末资产总额的平均值后的两倍计算。

2.    按照归属于本行股东的净利润除以该期归属于本行股东权益总额的月平均值后的两倍计算。

3.     按照银监会颁布的指引计算。

中国建设银行公布2008年中期业绩

盈利水平持续提高  资产突破7万亿元 

2008年8月22日，中国建设银行股份有限公司（以下简称建行）对外发布2008年中期业绩报告。2008年上半年，面对复杂的国际国内经济形势，建行全面贯彻落实科学发展观，严格执行国家宏观调控政策，不断深化经营管理体制改革，继续推进业务发展战略转型，着力提高客户服务水平，业务结构得到明显改善，中间业务收入继续保持快速增长势头，抵御风险能力进一步增强，取得了良好的经营业绩。

报告显示，截至6月30日，建行资产总额达人民币70,577.06亿元（以下数据除特别注明外，均按照国际会计准则计算，币种为人民币），突破7万亿元，较上年末增长6.96%；实现税前利润756.55亿元，同比增加251.13 亿元，增长49.69%；受益于业务发展、内地企业所得税税率调整，实现净利润586.92 亿元，同比增加244.37 亿元，增长71.34%；实现经营收入 1,357.36亿元，同比增长36.04 %，其中利息净收入达1,110.80亿元，手续费及佣金净收入达201.68亿元，同比分别增长24.51%、59.30%；综合盈利能力继续保持内地同业领先地位，年化平均资产回报率为1.72%，年化平均股东权益回报率为26.36%，净利息收益率为3.29％，分别较上年同期提高0.54、6.56和0.18个百分点；资本充足率为12.06%，核心资本充足率为10.08%；资产质量稳步提升, 不良贷款额、不良贷款率继续双降，不良贷款率降至2.21%，较上年末下降0.39个百分点；抗风险能力进一步增强，减值准备对不良贷款比率为117.23%，比上年末提高12.82个百分点。

建行董事长郭树清表示，2008年上半年的经营业绩良好，得益于中国经济金融环境和建行内部的改革创新，凝聚了全行上下的智慧和辛劳。建行在大力推进业务发展的同时，积极关注民生，面对今年年初发生的冰冻灾害和四川汶川特大地震，全行心系灾区，为抗灾救灾、灾区重建提供了快捷有效的金融服务和信贷支持，履行了“为社会承担全面的企业公民责任”的崇高使命。 

业务创新力度加大  综合竞争实力显著提高

年初以来，建行围绕市场和客户的需求，加大金融产品和服务的创新力度，综合竞争力和盈利能力显著提高。

在巩固传统业务优势的同时，投资银行等新兴业务发展迅速，实现收入32.03亿元，比上年同期增长195.71%。其中，通过推进企业首次公开发行及再融资、并购重组、股权投资、项目融资等新型财务顾问业务，不断拓展AA级以上客户、跨国公司、外资银行、大中型企业等财务顾问客户，仅财务顾问业务实现手续费收入23.77亿元，增幅高达165.10%。

为小企业量身定做的系列金融产品不断推陈出新，到6月30日，全行小企业贷款余额达2,495.32亿元，较年初增长11.16%。与阿里巴巴合作开发了电子商务联贷联保、速贷通和订单融资等产品，半年内向175个客户发放贷款5.2亿元。

率先于内地同业创设了“客户接待日”制度，建立了从总行、分行到支行的各级管理人员定期接待客户机制，1-6月共接待客户1500多人，解决客户疑难问题1700多项。客户服务个性化、差异化工作取得进展。一方面网点转型扎实推进，另一方面组建了私人银行顾问与专家团队，建成了81家财富管理中心和1,570多个理财中心，北京和上海私人银行先后开业，为中高端客户提供专属理财产品、资产管理、顾问咨询、公益慈善信托等全方位、个性化服务。

在内地同业中首家建成集中分布式的电话银行95533客户服务体系，实现了全行统一的95533客户服务系统平台，前置人工通话子项，客户进入人工服务的平均时间从原来的45秒缩短到15秒，接通率提高到98％。到6月30日，全行电子银行客户数达到9,210.06万户，新增2,140.30万户，比上年末增长30.27%；实现交易额77.64万亿元，同比增长143.92％，创历史最好水平。

信用卡业务竞争力进一步提升，上半年推出了以奥运为主题的奥运白金卡、针对成功创业人士的创富精英卡等新产品。双币种信用卡新增301万张，居内地同业首位；消费交易额同比增长95.7％，信用卡透支额较年初增长38.7％，消费交易额和透支额在内地四大行中居首位。

在为奥运服务中，除积极办理外币兑换、旅行支票和外币受理等涉外金融服务外，还特别推出了95533多语种电话银行服务功能，为境外客户提供英语、法语、德语、俄语、日语、韩语等多语种服务支持，努力提高服务境外来华客户的能力和水平。同时，与美国银行合作开发的ATM取现互免手续费业务， 使持有美国银行借记卡和信用卡的运动员和游客可以在建行ATM享受到免服务费取现的服务。 

  信贷结构进一步优化  资产质量继续提升     

2008年上半年，建行继续深化风险管理体制改革，积极调整信贷结构，提高精细化管理水平，资产质量稳步提升。

公司类贷款客户结构进一步优化。到6月30日，建行内部评级A级及以上客户贷款余额占比达到89.50%，较上年末提高0.89个百分点。“绿色信贷”工作成效明显，主动退出资产质量不佳、产能过剩、高耗能、高污染行业中不符合绿色信贷要求的贷款，上半年退出类客户贷款余额比上年末减少318.76亿元。

实施区域、产品和客户的差别化措施，重点满足优质个人客户的信贷需要。上半年个人贷款余额达7,726.13亿元，占比21.84%。其中个人住房贷款较上年末增加394.15亿元，增幅为7.47%；个人消费贷款较上年末增加35.35亿元，增幅为5.31%。

优化风险管理工具。上半年建行持续优化经济资本和行业风险限额管理，改进经济资本计量方案，优化小企业违约概率、部分产品风险敞口和违约损失率参数的设置以及资金业务产品风险计量；行业风险限额管理由原有的20多个行业细化到50多个行业，涵盖了建行80%以上对公贷款，并实施行业经济资本限额和行业贷款限额双线控制，提高了资产组合风险管理水平。同时，在内地同业中率先采用了基于违约概率（PD）模型的信用评级方法，通过对行业贷款组合实时监测并定期发布监测信息，优化行业结构，降低行业风险集中度。

强化操作风险控制，推进业务持续性管理。今年以来，建行稳步推进操作风险与内部控制自我评估工作，加强基层机构关键风险点监控检查，防范产生重大操作风险和案件。以奥运服务为契机，推进业务持续性管理，建立了各主要生产系统应急预案，强化应急管理。同时，启动业务持续性管理中长期规划项目，建立完善的业务持续性管理体系。

完善风险监控措施，加大不良贷款处置力度。上半年，建行进一步完善授信风险监测预警机制，对大额授信客户风险进行集中会诊，跟踪化解。继续加大对大额关注类客户和大额不良客户以及重点分支机构风险处置力度，建立大额授信客户风险处置机制，促进不良贷款压缩。探索不良贷款处置新渠道，在国内率先推出第一单不良资产证券化债券，规模为27.65 亿  元，处置存量不良贷款。

强化零售业务风险管理。目前已建成覆盖各类产品、各业务流程的专业化的零售风险管理体系框架，在内地同业中率先完成了基于信用评分统计模型的零售评分卡的研发和上线运行，实现了对重要零售信贷业务的自动审批和风险跟踪监控，提升了零售风险管理的计量管理水平。

信贷结构的优化、风险内控能力的提升，促使建行整体贷款质量持续改善。截至2008年6月30日，建行不良率较高的批发和零售业、房地产业、制造业的不良贷款余额和不良率继续保持下降势头，3个行业的不良率较上年末分别下降2.38、0.64和1.01个百分点。 

深化战略合作层次   全面履行社会责任

上半年，建行继续推进与战略投资者的合作，积极履行企业社会责任，全力为抗震救灾和灾后重建提供金融服务与资金支持，各项工作成效显著。

建行与战略投资者的合作，不断向深度、广度推进。在美国银行的协助下，“零售网点转型”项目继续顺利实施。到6月底，建行已有9,207家零售网点实现了以营销服务为主的功能转型，占网点总数的68.69%。转型后的网点日均产品销售量提高67%，是转型前的2.15倍，客户等候时间平均下降39%。上半年中美双方合作为零售网点转型设计了VIP客户网点销售与服务流程，试点网点平均销售量增长144%。适应新的形势和客户需求的“零售网点转型”二代项目也在顺利推进。同时，建行上半年与美国银行在中小企业产品研发、网上银行系统稳定性与客户体验改进等项目进行了深度合作，完成了IT规划、数据管控、信用卡评分卡和按揭贷款评分卡推广等项目，进一步提高了建行的IT管理能力、数据管理能力及风险控制能力。

截至6月30日，建行与美国银行在零售业务、公司业务、信息技术、人力资源管理、风险管理等领域实施的42个协助项目中已完成28个。如“客户之声”项目已为部门、分行改进客户服务、业务管理及流程再造提供了量化的决策依据；新产品创新责任体系、量化监测考核和分级决策模式开始在业务领域进行试点。

在实现业务稳健、快速发展的同时，建行高度重视履行企业社会责任。汶川特大地震发生后，建行累计向灾区捐款1.56亿元，其中员工捐款8600多万元，党员交纳“特殊党费”4700多万元。全行约有10000多员工为灾区义务献血，300多名建行志愿者赶赴灾区，为灾区人民提供救助服务。在金融服务方面，建行特事特办，创新了一系列特殊服务措施，及时、有效地支持了抗震抢险和恢复重建工作。如创新推出了凭有效身份证明或密码提取救急款的无介质取款，相继推出汇款快速通道及免收费、网上汇款直通车、帐篷银行及移动银行等服务措施。增加了对灾区电力、交通、制造业等行业的贷款投放，为地震灾区授信业务审批建立“绿色通道”，保证救灾贷款及时到位。

上半年，建行还向遭受严重雨雪冰冻天气灾害的湖南、湖北、安徽、贵州等省份捐款1200万元，向遭受严重洪涝灾害的贵州省捐款100万元，支持遭受自然灾害的群众抗灾救灾、重建家园。

去年建行向中国教育发展基金会捐赠1.2亿元人民币设立了“建设未来－中国建设银行资助贫困高中生成长计划”，到今年上半年，已将2000多万元助学金发放到全国各地近14000名贫困高中生手中。去年捐赠5000万元启动的“中国贫困英模母亲建设银行资助计划”，到今年上半年，已经完成第一年500万元的资助计划。

上半年，建行正式对外发布了2007年企业社会责任报告，这是建行继2006年在国有大型商业银行中首家披露企业社会责任报告以来，第二次向社会各界披露企业社会责任的年度报告，进一步展示了建行积极履行社会责任所取得的丰硕成果。

建行大力推进改革发展、积极承担社会责任的良好表现，获得了社会各界的充分肯定和积极评价。上半年以来，建行在英国《银行家》杂志公布的金融品牌500强中列第18位；在美国《福布斯》杂志公布的全球上市公司2000强中列第62位；在英国《金融时报》公布的“全球500强”中列第20位；荣获英国《欧洲货币》杂志“最佳房地产投资奖”、香港《资本》杂志“中国杰出零售银行奖”、万事达国际组织“最佳商务卡奖”、“最佳联名卡奖”、“最佳产品设计奖”和香港《财资》杂志“中国最佳托管银行”等奖项。

建行行长张建国表示，建行2008年上半年的良好业绩，为实现全年经营目标奠定了坚实基础。我们将积极关注宏观经济金融形势的变化，认真研究市场波动对本行经营管理的影响，提早采取应对措施，防范风险隐患，进一步提升经营管理水平，顺利完成全年经营目标。

 

公司简介：

中国建设银行股份有限公司（以下简称建行）在中国拥有长期的经营历史。其前身中国人民建设银行于1954年成立， 1996年更名为中国建设银行。中国建设银行股份有限公司由原中国建设银行于2004年9月分立而成立，继承了原中国建设银行的商业银行业务及相关的资产和负债。建行总部设在北京。截至2008年6月30日，在境内设有超过1.3万个分支机构，并在香港、新加坡、法兰克福、约翰内斯堡、东京、首尔设有分行，在伦敦、纽约、悉尼设有代表处，全资拥有中国建设银行（亚洲）股份有限公司、建银国际（控股）有限公司，持有中德住房储蓄银行75.1%的股权、建信基金管理公司65%的股权、建信金融租赁公司75.1%的股权，现有员工约30万人。

建行H股于2005年10月27日在香港联合交易所上市交易，股票代号为0939；A股于2007年9月25日在上海证券交易所上市交易，股票代号为601939。

 主要业务范围

         公司银行业务：向公司客户、政府机构客户和金融机构客户提供包括公司类贷款、贸易融资、存款、代理服务，以及顾问与咨询、现金管理、汇款及结算、托管及担保服务等多种金融产品和服务；

        个人银行业务：向个人客户提供包括个人贷款、存款、银行卡、个人理财，以及汇款和证券代理服务等金融产品和服务；

         金融市场业务：货币市场业务，包括银行间同业拆借交易及回购交易；投资组合，包括持有证券以作买卖及投资用途；进行自营式的代客交易，包括外汇及衍生工具交易。

 

  

China Construction Bank Corporation

2008 Interim Results - Major Financial Indicators

 (As of 30 June 2008) 

·       Operating income rose by 36.04% y-o-y to RMB135.736 billion

(1H2007: RMB99.773 billion)  

·       Profit before tax increased by 49.69% y-o-y to RMB75.655 billion

(1H2007: RMB50.542 billion)  

·       Net profit increased by 71.34% y-o-y to RMB58.692 billion

(1H2007: RMB34.255 billion)  

·       Earnings per share (basic and diluted) increased by 66.67% y-o-y to RMB0.25

(1H2007: RMB0.15) 

·       Annualised return on average assets1 rose by 0.54 percentage points y-o-y to 1.72%

(1H2007: 1.18%)  

·       Annualised return on average equity2 advanced by 6.56 percentage points y-o-y to 26.36%

(1H2007: 19.80%) 

·       Net interest spread rose by 0.15 percentage points y-o-y to 3.16%

(1H2007: 3.01%) 

·       Net interest margin rose by 0.18 percentage points y-o-y to 3.29%

(1H2007: 3.11%) 

·       Net fee and commission income to operating income increased by 2.17 percentage points y-o-y to 14.86%

(1H2007: 12.69%)

 ·       Cost-to-income ratio declined by 3.33 percentage points y-o-y to 34.03%

(1H2007: 37.36%) 

·       Total assets increased by 6.96% to RMB7,057.706 billion compared to the end of last financial year

(As at 31 December 2007: RMB6,598.177 billion)  

·       Core capital adequacy ratio3 decreased by 0.29 percentage points to 10.08% compared to the end of last financial year

(As at 31 December 2007: 10.37%)  

·       Capital adequacy ratio3 decreased by 0.52 percentage points to 12.06% compared to the end of last financial year

(As at 31 December 2007: 12.58%)  

·       Allowances to non-performing loans ratio rose by 12.82 percentage points to 117.23% compared to the end of last financial year

(As at 31 December 2007: 104.41%)  

·       Non-performing loan ratio decreased by 0.39 percentage points to 2.21% compared to the end of last financial year

(As at 31 December 2007: 2.60%)  

Notes:

1 Calculated by dividing net profit by the average of total assets as at the beginning and end of the period and then multiplying two.

2 Calculated by dividing net profit attributable to shareholders of the Bank by the monthly average of total equity attributable to shareholders of the Bank for the period and then multiplying two.

3 Calculated in accordance with the guidelines issued by the China Banking Regulatory Commission (“CBRC”). 
 

China Construction Bank Corporation

2008 Interim Result Announcement 

Sustainable Growth in Profitability Assets Exceeded RMB7 Trillion 

22 August 2008 - China Construction Bank Corporation (”CCB” or “the Bank”) today announced its 2008 interim results. In the first half of 2008, facing complex international and domestic economic situations, CCB had been comprehensively adopting a scientific approach towards development, stringently executing national macro-economic adjustment policies, entrenching reforms in operational and management systems, continuously pushing forward with strategic transformation in business development and concentrating on lifting customer service levels. In this period, remarkable improvements in business structure were made; strong income growth momentum in intermediary business was maintained; risk mitigation capability was further strengthened; and sound operating results were achieved. 

As at 30 June, CCB‘s total assets exceeded RMB7 trillion, reaching RMB7.057706 trillion (all figures below are calculated in accordance with the International Accounting Standards and are denominated in RMB unless otherwise specified), which was an increase of 6.96% over the end of last financial year. Profit before tax was 75.655 billion, a year-on-year increase of 25.113 billion or 49.69%. Benefiting from business development and an adjustment in the rate of enterprise income tax for domestic enterprises, a net profit of 58.692 billion was realised, which was a year-on-year increase of 24.437 billion or 71.34%. The realised operating income was 135.736 billion, representing a 36.04% year-on-year increase. The net interest income reached 111.080 billion and net fee and commission income reached 20.168 billion, up by 24.51% and 59.30% from the same period of the previous year respectively. CCB continued leading the mainland banking industry in terms of overall profitability: the Bank achieved an annualised return on average assets of 1.72%, an annualised return on average equity of 26.36% and a net interest margin of 3.29%, representing increases of 0.54, 6.56 and 0.18 percentage points over the same period of the previous year respectively. Its capital adequacy ratio was 12.06% while its core capital adequacy ratio was 10.08%. CCB’s asset quality had improved steadily: the amount and ratio of its non-performing loans continued to decrease; the ratio of non-performing loans fell to 2.21%, which was a drop of 0.39 percentage points from the end of last year. There was also further improvement in CCB’s risk mitigation capability: the ratio of allowances to non-performing loans was 117.23%, an increase of 12.82 percentage points over the end of the previous year. 

Mr. Guo Shuqing, Chairman of CCB, said that CCB achieved good operating results for the first half of 2008 because it had benefited from China’s overall economic and financial environment and from the Bank’s own internal reform and innovation, and had availed itself of the wisdom and efforts of all staff. While striving for business development, CCB had seriously concerned itself with the livelihood of the people of China. Following the snowstorm disaster early this year and the severe earthquake in Wenchuan, Sichuan, the whole Bank focused its attention on the disaster areas and joined efforts in providing quick and effective financial services and credit support for disaster relief and reconstruction work, thereby carrying out its noble mission: “assume full responsibilities as a corporate citizen”. 

Stronger Efforts in Business Innovation and Significant Enhancement of Overall Competitiveness 

Since the beginning of this year, in response to market and customer demands, CCB has been putting additional effort in the innovation of financial products and services, resulting in significant enhancement in its overall competitiveness and profitability.

While consolidating its traditional business areas, CCB saw a rapid development in its newly developed businesses such as investment banking, which realised an income of 3.203 billion, representing a year-on-year increase of 195.71%. In particular, by launching new types of financial advisory business such as IPO and re-financing; mergers & acquisitions and restructuring; equity investment; and project financing, it had been acquiring incessantly customers in financial advisory services from the ranks of customers graded AA or above, multinational corporations, foreign banks and large to medium-sized enterprises. Financial advisory business fees for the period was 2.377 billion, a substantial increase of 165.10%. 

Tailor-made new financial products had been offered to small enterprises continuously. By 30 June, loans to small enterprises reached a balance of 249.532 billion, an increment of 11.16% from the beginning of the year. It has also been cooperating with Alibaba to develop new electronic corporate banking products such as “Joint Borrowing & Joint Guarantee Loans”, “Quick Finance” and “Single Order Financing”. Within the half year, loans amounting to 520 million had been extended to 175 customers. 

CCB was a pioneer in the mainland to establish a “Customer Day” system in which management personnel from headquarters, branches and sub-branches would meet customers on constant basis. From January to June, more than 1,500 customers were received and over 1,700 issues received from customers were tackled. Progress in customisation and differentiation of customer services was achieved. While solid work on branch transformation was being carried out, CCB set up teams of private banking consultants and experts, establishing 81 wealth management centres and more than 1,570 VIP centres. Its private banking business in Beijing and Shanghai had commenced operation successively, providing comprehensive and customised services in exclusive financial management products, asset management, advice and consultation, public welfare and charity trusts for medium to high-end customers. 

CCB was the first in China to establish a centralized network of the 95533 Customer Service Hotline system for its call centres, providing a unified 95533 customer service platform for the whole bank. By moving forward the "agent service" choice in the menu, the average speed of answering customer’s enquiry was reduced from 45 seconds to 15 seconds and the rate of successful connection was raised to 98%. By 30 June, with 21.4030 million new customers in its electronic banking business, CCB boasted a cumulative customer count of 92.1006 million, an increase of 30.27% from the end of the previous year. The transaction volume for the period amounted to 77.64 trillion, a 143.92% increase over the same period last year and setting a historical record. 

The competitiveness of CCB’s credit card business was further lifted. During the period, CCB launched a number of new Olympic-themed products including an Olympic platinum card and an “Elite Entrepreneur Card” specifically targeting successful entrepreneurs. The number of additional dual currency cards issued during the period was 3.01 million, the highest among all Chinese domestic banks. Credit card spending increased by 95.7% over the same period last year, while the amount of credit card overdrafts saw an increase of 38.7% over the beginning of this year, launching CCB into the leading position among the four major Chinese commercial banks in terms of both credit card spending and overdrafts amount. 

In providing services to the Olympics, CCB was actively getting involved in relevant services such as foreign exchange, travellers cheques and foreign currency acceptance etc. In addition, in an endeavour to enhance the Bank’s capabilities in serving foreigners, CCB launched the multi-language service functions in its call centres to provide service support in English, French, German, Russian, Japanese and Korean. Meanwhile, it cooperated with the Bank of America in developing a business in which ATM cash withdrawal handling fee would be mutually waived between the two banks. This allowed tourists and athletes holding Bank of America debit cards or credit cards to enjoy withdrawal services on CCB ATMs free-of-charge. 

 

Further Optimisation of Credit Structure and Continued Enhancement of Asset Quality 

During the first half of 2008, CCB continued to entrench reforms in its risk management system, adjusted its credit structure and raised the standards of refined management. These resulted in steady improvement in its asset quality.

 There was further optimisation in the customer structure for corporate loans. By 30 June, the balance of corporate loans granted to customer with internal credit ratings of A and above reached 89.50%, which was 0.89 percentage points higher than that at the end of the previous year. The effectiveness of CCB’s “Green Credit” project was in evidence. It has taken initiatives to retreat from lending to industries which were known for poor asset quality, excess capacity, high energy consumption and high pollution and which were not able to meet the Green Credit criteria. In the first half of the year, the balance of loans in the “opt-ed out” category was reduced by 31.876 billion compared to the end of the previous year. 

By implementing differentiated measures according to regions, products and customers, CCB focused on meeting the credit needs of premium personal customers. In the first half of 2008, the balance of personal loans reached 772.613 billion, which was 21.84% of the total amount of loans. Of these personal loans, personal residential mortgage loans witnessed an increase of 39.415 billion or 7.47% from the end of last year, while personal consumer loans saw a growth of 3.535 billion or 5.31% from the same period. 

Optimisation of risk management tools. In the first half of this year, CCB continued its optimisation of economic capital management and the implementation of risk limit management by industry. It had refined its economic capital quantification project, optimised respectively the probability of default for small enterprises, the risk exposure of some of its products, the installation of loss given default parameters, and the risk quantification of treasury business products. Originally, 20 some industries were under risk limit management; now it has been diversified to more than 50 industries, covering over 80% of CCB’s corporate loans. By implementing two-track control of economic capital limits and industrial loan limits, CCB has also raised the standard of its asset portfolio risk management. At the same time, CCB was the first among its counterparts in adopting a credit grading methodology based on a model of probability of default (PD). By monitoring the composition of the loan portfolio by industry on a real time basis and releasing information of such monitoring on a regular basis, the Bank was able to optimise the industrial loan structure and lower the extent of industry concentration risk. 

Strengthening of operational risk control and the introduction of business continuity management. Since this year, in order to prevent the occurrence of serious operational risks and offences, CCB has steadily introduced self assessment of operational risks and internal controls. In addition, it had stepped up the monitoring and inspection of critical risk points at the front-lines. Using Olympic-related services as a pivot, CCB introduced business continuity management measures by developing contingency plans for its key production systems and strengthend its emergency management. Concurrently, it kicked off the medium to long-term planning projects in an effort to establish a sound business continuity management system. 

Optimisation of risk monitoring measures and strong efforts in disposing of non-performing loans. In the first half of 2008, CCB further improved its early warning mechanism for risk monitoring of credit extension. For large credit customers, centralised risk assessment, follow-up and problem solving were implemented. Efforts were redoubled for the risk handling of customers with large special-mention loans, large non-performing loans or for the risk handling of key subsidiaries. Mechanism for risk handling of customers with large loan extension was established to expedite the disposal of non-performing loans. Research in new channels for the disposal of non-performing loans was carried out. For example, to dispose existing non-performing loans, CCB was the first among China’s banking industry in issuing the first securitised bond of non-performing assets amounting to 2.765 billion to handle non-performing loans. 

Strengthening of risk management of retail business. CCB has structured a professional risk management framework for all types of products and workflows of its retail business. It is the first bank among its national counterparts to develop an online scorecard system for its retail business based on a credit ratings model. The advanced system enabled automatic examination procedures for crucial retail credit business and the tracking and monitoring of the risks involved, and as well lifted the level of risk management in retail business.

The enhancement of credit structure and advancement in internal risk control together contributed to a continuous improvement in the overall loan quality of CCB. As of 30 June, 2008, the non-performing loan ratio and the balances of the non-performing loans in wholesale and retail trade, real estate and manufacturing industries, the three industries which CCB used to record higher non-performing loan ratios continued to decline and reported a drop of 2.38, 0.64 and 1.01 percentage points in their non-performing loan ratios respectively when compared to the figures at the end of 2007. 

Intensification of Cooperation with Strategic Alliances and Undertaking of Corporate Social Responsibility 

During the first half of the year, CCB not only intensified its cooperation with strategic investors, but also actively fulfilled its corporate social responsibility through providing financing services and donations for the relief of the earthquake in China and the reconstruction work after the earthquake. CCB has attained impressive results in all aspects. 

CCB has been deepening and widening its cooperation with strategic investors. With the assistance of Bank of America, branch transformation has continued. By the end of June, CCB had transformed 9,207 branches to provide marketing services, accounting for 68.69% of the total number of branches. The transformed branches recorded an improved average daily sales volume for 67%, 2.15 times of the sales volume prior to transformation. The average waiting time for customers has also been significantly reduced by 39%. In the first half of the year, CCB and Bank of America together designed a new sales and service process for its VIP customers in transformed branches. The advancement boosted up the average sales volume by 144% in pilot branches. To accommodate the latest trends and customer needs, CCB is conducting the second generation of branch transformation with good progress. In addition, CCB also cooperated intensively with Bank of America in developing products for small and medium enterprises, stabilising the online banking system and improving customer satisfaction. The Bank’s IT management, data management and risk control capabilities have been vastly improved through cooperative projects on IT planning, data governance as well as the scorecards for credit card and mortgage loan. 

Out of the 42 collaborative projects spanning retail business, corporate business, information technology, human resources management and risk management, CCB and Bank of America have completed 28 projects as of 30 June. For example, the “Voice of Customers” project has provided an important measurable guide for various departments and branches to improve their customer services, operations management and process design. Innovative responsibility systems for new products, quantified monitoring and assessment and the divisional decision-making model are being tested in different business areas. 

While achieving sound and rapid development of the Bank's businesses, CCB is highly concerned about its undertaking of corporate social responsibilities. After the severe earthquake in Wenchuan, Sichuan, CCB has donated 156 million to the disaster-stricken areas, of which over 86 million were donated by CCB staff and the “Special party fees” submitted by the members of the Communist Party of China amounted to over 47 million. Approximately 10,000 staff across CCB participated in voluntary blood donation and over 300 volunteers went to the disaster-stricken areas to offer rescue services to the victims.  

In terms of financial services, CCB dealt with extraordinary events with exceptional measures by implementing a series of contingency measures to effectively and promptly support quake relief and reconstruction work. The Bank has adopted a medium-free cash withdrawal measure to verify urgent cash withdrawals by any valid identification document or passcode. Various services and measures, such as express remittance channels, free-of-charge online remittance, tent bank and mobile bank were launched. The Bank has also increased the loan extension to the power supply, transportation and manufacturing industries in the disaster-affected areas and set up an “Express Credit Channel” for credit approval in those areas to ensure the timely delivery of disaster relief loans.  

In the first half of 2008, CCB donated 12 million to the victims of provinces stricken by extreme snow fall, including Hunan, Hubei, Anhui and Guizhou, and donated 1 million to victims in Guizhou who suffered from a severe flood to support rescue, relief and rebuilding efforts.  

In 2007, CCB made a donation of 120 million to the China Education Development Foundation in starting up a sponsorship programme for impoverished high school students. As at the first half of 2008, over 20 million of education subsidy was granted to nearly 14,000 impoverished high school students across the country. The 50-million CCB financing programme for “Impoverished Mothers of Heroes and Exemplary Workers in China” which was launched last year has completed its first year of subsidy programme by donating 5 million in the first half of 2008. 

During the first half of the year, CCB published the Corporate Social Responsibility Report 2007. Being the first state-owned commercial bank in China to publish a report of this kind in 2006, this is the second annual report that reported CCB’s corporate social responsibility achievements. 

CCB’s performances in pushing forward reform and development and its dedication to undertaking its social responsibilities have won well recognition and positive appraisals from various sectors of society. In the first half of 2008, CCB was ranked 18th in The Banker’s Global 500 Financial Brands, 62nd in the Forbes’ Global 2000 leading public companies and 20th in Financial Times’ FT Global 500. The Bank also won the “Best Real Estate Investment, China” award by Euromoney and the “Outstanding Retail Bank in China” award by Capital. CCB was awarded the “Best Business Card”, the “Best Co-branded Card” and the “Best Product Design” by the MasterCard Worldwide and the “Best Subcustodian Bank, China” award by The Asset. 

Mr. Zhang Jianguo, President of CCB, said the good results in the first half of 2008 have laid a solid foundation for the Bank to achieve its annual operational goal. The Bank will pay close attention to the changes in the macro-economic and financial situation, conduct comprehensive researches on the impact of market fluctuations on our operations and management and adopt responsive measures in advance in order to avoid risks, to further uplift operational and management standards and to successfully accomplish the operational goals of the year. 

Background Information:

The history of the China Construction Bank Corporation (“CCB” or the “Bank”) dates back to 1954 when the People’s Construction Bank of China was founded. This entity was renamed China Construction Bank in 1996. China Construction Bank Corporation was formed in September 2004 when it separated from its predecessor, China Construction Bank, and assumed its commercial banking business and related assets and liabilities. Headquartered in Beijing, CCB had a network of over 13,000 branches and sub-branches in Mainland China as of 30 June 2008, and maintained overseas branches in Hong Kong, Singapore, Frankfurt, Johann