1、2022 Annual ReportBank of China Limited(a joint stock company incorporated in the Peoples Republic of China with limited liability)Ordinary H-Share Stock Code:3988Offshore Preference Share Stock Code:4619BEIJINGBERLINHAMBURGMUNICHMANCHESTERKUCHINGNAIROBIPORT LOUISDAR ES SALAAMLUANDAJOHANNESBURGLUSAK

2、AKITWEDURBANSYDNEYADELAIDEMELBOURNEPERTHBRISBANEMOSCOWAKTOBEKHABAROVSKULAANBAATARSEOULANSANDAEGUOSAKA NAGOYATOKYOYOKOHAMAVLADIVOSTOKTAIPEIHONG KONGMACAOLISBONCASABLANCADOHAKARACHIABU DHABIBAHRAINHO CHI MINH CITYVIENTIANESTOCKHOLMSURABAYAJAKARTAGLASGOWDUBLINBIRMINGHAMLONDONISTANBULROMEVIENNAPRAGUEFRA

3、NKFURTBUDAPESTWARSAWPARISBRUSSELSDUSSELDORFROTTERDAMLUXEMBOURGLYONMILANYANGONSIEM REAPBANGKOKRAYONGPHNOM PENHNAKHON RATCHASIMAMANILACHIANG MAI BANDAR SERI BEGAWANSINGAPOREPENANGJOHOR BAHRUMELAKAMUARPUCHONGMEDANKUALA LUMPURSIHANOUKVILLEKLANGDUBAICOLOMBOMEXICO CITYSANTIAGOMUMBAIASTANAALMATYBELGRADEATH

4、ENSDJIBOUTIBUCHARESTBLAGOVESHENSKGENEVAHANOIBOC Head OffceBOCHKSingapore BranchNAIROBIPORT LOUISDAR ES SALAAMLUANDAJOHANNESBURGLUSAKAKITWEDURBANSYDNEYADELAIDEMELBOURNEPERTHBRISBANEAUCKLANDVANCOUVERCALGARYLOS ANGELESCHICAGOTORONTONEW YORKMONTREALMOSCOWAKTOBEKHABAROVSKULAANBAATARSEOULANSANDAEGUOSAKA N

5、AGOYATOKYOYOKOHAMAVLADIVOSTOKTAIPEIHONG KONGMACAOLISBONCASABLANCADOHAKARACHIABU DHABIBAHRAINHO CHI MINH CITYVIENTIANESTOCKHOLMSURABAYAJAKARTAGLASGOWDUBLINBIRMINGHAMLONDONISTANBULROMEVIENNAPRAGUEFRANKFURTBUDAPESTWARSAWPARISBRUSSELSDUSSELDORFROTTERDAMLUXEMBOURGLYONMILANYANGONSIEM REAPBANGKOKRAYONGPHNO

6、M PENHNAKHON RATCHASIMAMANILAGRAND CAYMANPANAMA CITYSAO PAULORIO DE JANEIROLIMACHIANG MAI BANDAR SERI BEGAWANSINGAPOREMEXICO CITYSANTIAGOBUENOS AIRESCHRISTCHURCHBEIJINGBERLINHAMBURGMUNICHMANCHESTERKUCHINGNAIROBIPORT LOUISDAR ES SALAAMLUANDAJOHANNESBURGLUSAKAKITWEDURBANSYDNEYADELAIDEMELBOURNEPERTHBRI

7、SBANEAUCKLANDVANCOUVERCALGARYLOS ANGELESCHICAGOTORONTONEW YORKMONTREALMOSCOWAKTOBEKHABAROVSKULAANBAATARSEOULANSANDAEGUOSAKA NAGOYATOKYOYOKOHAMAVLADIVOSTOKTAIPEIHONG KONGMACAOLISBONCASABLANCADOHAKARACHIABU DHABIBAHRAINHO CHI MINH CITYVIENTIANESTOCKHOLMSURABAYAJAKARTAGLASGOWDUBLINBIRMINGHAMLONDONISTAN

8、BULROMEVIENNAPRAGUEFRANKFURTBUDAPESTWARSAWPARISBRUSSELSDUSSELDORFROTTERDAMLUXEMBOURGLYONMILANYANGONSIEM REAPBANGKOKRAYONGPHNOM PENHNAKHON RATCHASIMAMANILAGRAND CAYMANPANAMA CITYSAO PAULORIO DE JANEIROLIMACHIANG MAI BANDAR SERI BEGAWANSINGAPOREPENANGJOHOR BAHRUMELAKAMUARPUCHONGMEDANKUALA LUMPURSIHANO

9、UKVILLEKLANGDUBAICOLOMBOMEXICO CITYSANTIAGOMUMBAIASTANAALMATYBELGRADEATHENSDJIBOUTIBUCHARESTBUENOS AIRESBLAGOVESHENSKGENEVAHANOICHRISTCHURCHLondon BranchNew York BranchShanghai Branch1IntroductionBank of China LimitedBank of China is the bank with the longest continuous operation among Chinese banks

10、.Formally established in February 1912,the Bank served consecutively as the countrys central bank,international exchange bank and specialised international trade bank.After 1949,drawing on its long history as the state-designated specialised foreign exchange and trade bank,the Bank became responsibl

11、e for managing Chinas foreign exchange operations and offering international trade settlement,overseas fund transfer and other non-trade foreign exchange services.Restructured into a wholly state-owned commercial bank in 1994,the Bank provides various financial services,and has developed into a larg

12、e commercial bank delivering services in local and foreign currencies and featuring complete business varieties and strong strength.The Bank was listed on the Hong Kong Stock Exchange and the Shanghai Stock Exchange in 2006,becoming the first Chinese bank to launch an A-Share and H-Share initial pub

13、lic offering and achieve a dual listing in both markets.The Bank is the official banking partner of the Beijing 2008 Summer Olympics and the Beijing 2022 Winter Olympics,thus making it the only bank in China to serve two Olympic Games.In 2011,Bank of China became the first financial institution from

14、 an emerging economy to be designated as a Global Systemically Important Bank,a designation it has now maintained for 12 consecutive years.With its growing international status,competitiveness and comprehensive strengths,the Bank has marched forward into the ranks of the worlds large banks.In 2021,t

15、he Bank prepared the Groups 14th Five-Year Plan,clarified its positioning and comparative advantages in the domestic economy and in the domestic and international economic flows,and focused on the development of the“Eight Priority Areas”of technology finance,green finance,inclusive finance,cross-bor

16、der finance,consumer finance,wealth finance,supply chain finance and county-level finance.It moved faster in forming a strategic development landscape with its domestic commercial banking services as the business mainstay,its globalised operations and diversified business platforms as the two growth

17、 engines,and worked hard to write a new chapter of building a first-class global banking group.As Chinas most globalised and integrated bank,Bank of China has institutions across the Chinese mainland as well as 62 countries and regions,and BOCHK and the Macau Branch serve as local note-issuing banks

18、 in their respective markets.The Bank has a well-established global service network and an integrated service platform based on the pillars of its corporate banking,personal banking,financial markets and other commercial banking business,which covers investment banking,direct investment,securities,i

19、nsurance,funds,aircraft leasing,asset management,financial technology,financing leasing and other areas,thus providing its customers with financial solutions featuring global expertise and all-round services accessible at any point of contact.Bank of China embodies a noble sense of duty and commitme

20、nt.Over its 111 years of development,the Bank constantly cared about the nation,dedicated to contribute to the country,and continued to strive for prosperity of the country and rejuvenation of the nation.Being deeply rooted in people and committed to providing excellent services,it has fulfilled its

21、 responsibilities of delivering financial services for the people,bringing benefits and convenience to the people,and improving the living standards of the people.Keeping the common good in mind and advocating openness and inclusiveness,the Bank has mobilised domestic and overseas resources to serve

22、 the two-way interactions between China and the world.It has always followed the law,innovated with prudence,and upheld the spirit of integrity and innovation to strengthen the Bank.As a large state-owned commercial bank on a new journey towards fully building a modern socialist country,the Bank,und

23、er the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,will carry forward the Banks century-old tradition of pursuing excellence,take full,accurate and comprehensive implementation of the new development philosophy,contribute to the new development pattern;cons

24、ciously uphold the mission of“Bridge China and the World for the Common Good”;practice the values of“provide excellent service,innovate with prudence,uphold openness and inclusiveness,collaborate for mutual growth”;accelerate the building of a first-class global banking group,bolster the Chinese mod

25、ernisation,promote high-quality economic and social development,and make an even greater contribution to realising the Chinese Dream of national rejuvenation in all respects.2022 Annual Report2Contents03ENVIRONMENTAL AND SOCIAL RESPONSIBILITIES116125ENVIRONMENT RESPONSIBILITIESSOCIAL RESPONSIBILITIE

26、SFINANCIAL STATEMENTS ANDOTHERS05192203378381383INDEPENDENT AUDITORS REPORTCONSOLIDATED FINANCIAL STATEMENTSREFERENCE FOR SHAREHOLDERSORGANISATIONAL CHARTLIST OF MAJOR BRANCHES AND SUBSIDIARIESCORPORATE GOVERNANCE04 131 137154172183190CHANGES IN SHARES AND SHAREHOLDINGS OF SHAREHOLDERSDIRECTORS,SUPE

27、RVISORS AND SENIOR MANAGEMENT MEMBERSCORPORATE GOVERNANCEREPORT OF THE BOARD OF DIRECTORSREPORT OF THE BOARD OF SUPERVISORSSIGNIFICANT EVENTS01ABOUT USINTRODUCTIONHONOURS AND AWARDSDEFINITIONSIMPORTANT NOTICEFINANCIAL HIGHLIGHTSCORPORATE INFORMATIONMESSAGE FROM THE CHAIRMANMESSAGE FROM THE PRESIDENT

28、MESSAGE FROM THE CHAIRWOMAN OF THE BOARD OF SUPERVISORS13567101115 1902MANAGEMENT DISCUSSION AND ANALYSIS224291105 107111114FINANCIAL REVIEWBUSINESS REVIEWRISK MANAGEMENTCAPITAL MANAGEMENTORGANISATIONAL MANAGEMENT,HUMAN RESOURCES DEVELOPMENT AND MANAGEMENTKEY ISSUES OF CONCERN TO CAPITAL MARKETSOUTL

29、OOK3Bank of China LimitedThe BankerFORTUNEGlobal FinanceAsiamoneyIFFThe Asian BankerThe AssetTrade Finance GlobalPBOCChina Banking AssociationChina Banking Association,21st Century Institute of Finance Ranked 4th in Top 1000 World Banks Ranked 4th in Top 500 Global Banking Brands Ranked 42nd in Glob

30、al 500(2022)Outstanding Leadership in ESG-related Loans Stars of China Best Private Bank Best Bank for Sustainable Finance Chinas Best Bank for ESG China Private Banking Award Best State-owned Bank Global Green Finance Award Innovation Award Best Bank Infrastructure Technology Implementation in Chin

31、a Triple A Innovation Award for Digital Finance Best Custodian for QDII Best Issuer for Sustainable Finance Best Bond Adviser Global Best Trade Finance Bank in Asia-Pacific Finance Technology Development Award Outstanding Contribution Award for Green Credit Committee Typical Case of Inclusive Financ

32、e in China(2022)Honours and Awards2022 Annual Report4 Best RMB-Foreign Exchange Market Maker Best Bank in Wealth Management Best Bank with Responsible Investment IDC Financial Industry Technology Application Scenario Innovation Award Peoples Inventive Service Award Bank of Chinas Mobile Banking Gold

33、 Prize of Round Table Special Contribution to Board Governance Best Company for Investor Relations Best Board of Directors for Investor Relations Annual Report Gold Award Ranked 6th in Best China Brands Ranked 6th in the Most Successful Chinese Heritage Brands Best and Most Attractive Employer for C

34、ollege Student 2022 Forbes Chinas Best Employer Most Sustainable Employer Most Digitally Responsible EmployerChina Foreign Exchange Trade SystemCBNSinaInternational Data Corporation(IDC)PDirectors&BoardsSecurities TimesLACPInterbrandHurun Research InstituteXinhuanet,ChinaHR.comForbes5Bank of China L

35、imitedIn this report,unless the context otherwise requires,the following terms shall have the meaning set out below:The Bank/the GroupBank of China Limited or its predecessors and,except where the context otherwise requires,all of the subsidiaries of Bank of China LimitedArticles of AssociationThe p

36、erforming Articles of Association of the BankA ShareDomestic investment share(s)in the ordinary share capital of the Bank,with a nominal value of RMB1.00 each,which are listed on the SSE(Stock Code:601988)Basis Point(Bp,Bps)Measurement unit of changes in interest rate or exchange rate.1 basis point

37、is equivalent to 0.01 percentage pointsBOC Asset InvestmentBOC Financial Asset Investment Co.,Ltd.BOC AviationBOC Aviation Limited,a public company limited by shares incorporated in Singapore under the Singapore Companies Act,the shares of which are listed on the Hong Kong Stock ExchangeBOC Consumer

38、 FinanceBOC Consumer Finance Co.,Ltd.BOC Financial TechnologyBOC Financial Technology Co.,Ltd.BOC Fullerton Community Bank BOC Fullerton Community Bank Co.,Ltd.BOC InsuranceBank of China Insurance Company LimitedBOC LifeBOC Group Life Assurance Co.,Ltd.BOCG InsuranceBank of China Group Insurance Com

39、pany LimitedBOCG InvestmentBank of China Group Investment LimitedBOCHKBank of China(Hong Kong)Limited,an authorised financial institution incorporated under the laws of Hong Kong SAR and a wholly-owned subsidiary of BOCHK(Holdings)BOCHK(Holdings)BOC Hong Kong(Holdings)Limited,a company incorporated

40、under the laws of Hong Kong SAR,the ordinary shares of which are listed on the Hong Kong Stock ExchangeBOCIBOC International Holdings LimitedBOCIMBank of China Investment Management Co.,Ltd.BOCI ChinaBOC International(China)Co.,Ltd.,a company incorporated in the Chinese mainland,the ordinary shares

41、of which are listed on the SSEBOCLBOC Financial Leasing Co.,Ltd.BOC-Samsung LifeBOC-Samsung Life Ins.Co.,Ltd.BOC Wealth ManagementBOC Wealth Management Co.,Ltd.CASChinese Accounting StandardsCBIRCChina Banking and Insurance Regulatory CommissionCentral and Southern ChinaThe area including,for the pu

42、rpose of this report,the branches of Henan,Hubei,Hunan,Guangdong,Shenzhen,Guangxi and HainanCompany LawThe Company Law of PRCCSRCChina Securities Regulatory CommissionEastern ChinaThe area including,for the purpose of this report,the branches of Shanghai,Jiangsu,Suzhou,Zhejiang,Ningbo,Anhui,Fujian,J

43、iangxi,Shandong and QingdaoHKEXHong Kong Exchanges and Clearing LimitedHong Kong Listing RulesThe Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong LimitedHong Kong Stock ExchangeThe Stock Exchange of Hong Kong LimitedH ShareOverseas-listed foreign investment share(s)in th

44、e ordinary share capital of the Bank,with a nominal value of RMB1.00 each,which are listed on the Hong Kong Stock Exchange and traded in Hong Kong dollars(Stock Code:3988)HuijinCentral Huijin Investment Ltd.IFRSInternational Financial Reporting StandardsIndependent DirectorIndependent director under

45、 the listing rules of the SSE and the Articles of Association,and independent non-executive director under the Hong Kong Listing RulesMOFMinistry of Finance,PRCNortheastern ChinaThe area including,for the purpose of this report,the branches of Heilongjiang,Jilin,Liaoning and DalianNorthern ChinaThe

46、area including,for the purpose of this report,the branches of Beijing,Tianjin,Hebei,Shanxi,Inner Mongolia and the Head OfficePBOCThe Peoples Bank of ChinaPRCThe Peoples Republic of ChinaRMBRenminbi,the lawful currency of PRCSAFEState Administration of Foreign Exchange,PRCSFOSecurities and Futures Or

47、dinance(Chapter 571 of the Laws of Hong Kong)SSEThe Shanghai Stock ExchangeWestern ChinaThe area including,for the purpose of this report,the branches of Chongqing,Sichuan,Guizhou,Yunnan,Shaanxi,Gansu,Ningxia,Qinghai,Tibet and XinjiangDefinitions2022 Annual Report6The Board of Directors,the Board of

48、 Supervisors,directors,supervisors and senior management members of the Bank warrant that the information in this report is authentic,accurate and complete,contains no false record,misleading statement or material omission,and jointly and severally accept full responsibility for the information in t

49、his report.The 2022 Annual Report and Annual Results Announcement of the Bank have been approved by the Board of Directors of the Bank on 30 March 2023.The number of directors who should attend the meeting is 13,with 12 directors attending the meeting in person.Independent Director Mr.JIANG Guohua d

50、id not attend the meeting in person due to other important business engagements and appointed Independent Director Mr.E Weinan as his authorised proxy to attend and vote on his behalf.All of the 13 directors of the Bank exercised their voting rights at the meeting.The supervisors and senior manageme

51、nt members of the Bank attended the meeting as non-voting attendees.The 2022 financial statements prepared by the Bank in accordance with CAS and IFRS have been audited by PricewaterhouseCoopers Zhong Tian LLP and PricewaterhouseCoopers in accordance with Chinese and international auditing standards

52、,respectively.Both auditors issued an unqualified opinion.Vice Chairman of the Board of Directors and President of the Bank Mr.LIU Jin,who is also responsible for the Banks finance and accounting,and Principal of the accounting department Ms.WEN Lan,warrant the authenticity,accuracy and completeness

53、 of the financial statements in this report.The Board of Directors has recommended a final dividend on ordinary shares for 2022 of RMB2.32 per ten shares(before tax),subject to approval in the forthcoming 2022 Annual General Meeting.No capitalisation of the capital reserve to share capital is propos

54、ed in this profit distribution.During the reporting period,there was no misappropriation of the Banks funds by its controlling shareholder or other related parties for non-operating purposes and no material guarantee business that has violated the applicable regulations and procedures.This report ma

55、y contain forward-looking statements that involve risks and future plans.These forward-looking statements are based on the Banks own information and information from other sources that the Bank believes to be reliable.They relate to future events or the Banks future financial,business or other perfo

56、rmance and are subject to a number of factors and uncertainties that may cause the actual results to differ materially.Any future plans mentioned do not constitute a substantive commitment by the Bank to its investors.Investors and people concerned should be fully aware of the risks and understand t

57、he differences between plans,forecast and commitment.The Bank is faced with risks arising from changes in the macroeconomic environment and from political and economic conditions in different countries and regions as well as risks arising from its day-to-day operations,including the risk arising fro

58、m changes in the credit status of borrowers,adverse changes in market prices and operational risk.It shall at the same time meet regulatory and compliance requirements.The Bank actively adopts adequate measures to effectively manage all types of risks.Please refer to the section“Management Discussio

59、n and Analysis Risk Management”for details.Important Notice7Bank of China LimitedFinancial Highlights2022 Operating income619,139(RMB Million)2022 Operating proft283,950(RMB Million)2022 Proft for the year237,504(RMB Million)2022 EPS(basic)0.73(RMB)2022 ROA0.85%2022 ROE10.81%Operating income(RMB Mil

60、lion)Operating profit(RMB Million)Profit for the year(RMB Million)EPS(basic)(RMB)ROA(%)ROE（%）201820192020202120222018201920202021202220182019202020212022201820192020202120222018201920202021202220182019202020212022503,806550,010567,647605,717619,139227,533249,588246,220275,142283,950192,435201,891205

61、,096227,339237,5040.590.610.610.700.730.940.920.870.890.8512.0611.4510.6111.2810.812022 Net interest margin1.76%2022 Cost to income ratio27.88%2022 Non-interest income to operating income25.59%2022 Credit cost0.56%Non-performing loans to total loans As at the end of 20221.32%Allowance for loan impai

62、rment losses to non-performing loans As at the end of 2022188.73%Net interest margin(%)Cost to income ratio(calculated under regulations in the Chinese mainland)(%)Non-interest income to operating income(%)Credit cost(%)Non-performing loans to total loans(%)Allowance for loan impairment losses to no

63、n-performing loans(%)2018201920202021202220182019202020212022201820192020202120222018201920202021202220182019202020212022201820192020202120221.951.891.851.751.7628.0928.0026.7328.1727.8825.9829.0826.7329.8125.590.950.800.760.660.561.421.371.461.331.32181.97182.86177.84187.05188.732022 Annual Report8

64、Financial HighlightsNote:The financial information in this report has been prepared in accordance with IFRS.The data are presented in RMB and reflect amounts related to the Group,unless otherwise noted.Unit:RMB millionNote20222021202020192018Results of operations Net interest income460,678425,142415

65、,918390,050372,930 Non-interest income1158,461180,575151,729159,960130,876 Operating income619,139605,717567,647550,010503,806 Operating expenses(231,196)(226,355)(202,411)(198,269)(176,979)Impairment losses on assets(103,993)(104,220)(119,016)(102,153)(99,294)Operating profit283,950275,142246,22024

66、9,588227,533 Profit before income tax284,595276,620246,378250,645229,643 Profit for the year237,504227,339205,096201,891192,435 Profit attributable to equity holders of the Bank227,439216,559192,870187,405180,086 Total dividend of ordinary sharesN.A.65,06057,99456,22854,167Financial position Total a

67、ssets28,913,85726,722,40824,402,65922,769,74421,267,275 Loans,gross17,554,32215,712,57414,216,47713,068,78511,819,272 Allowance for loan impairment losses2(437,241)(390,541)(368,619)(325,923)(303,781)Investments36,445,7436,164,6715,591,1175,514,0625,054,551 Total liabilities26,346,28624,371,85522,23

68、9,82220,793,04819,541,878 Due to customers20,201,82518,142,88716,879,17115,817,54814,883,596 Capital and reserves attributable to equity holders of the Bank2,427,5892,225,1532,038,4191,851,7011,612,980 Share capital294,388294,388294,388294,388294,388Per share Basic earnings per share(RMB)0.730.700.6

69、10.610.59 Dividend per share(before tax,RMB)40.2320.2210.1970.1910.184 Net assets per share(RMB)56.996.475.985.615.14Key financial ratios Return on average total assets(%)60.850.890.870.920.94 Return on average equity(%)710.8111.2810.6111.4512.06 Net interest margin(%)81.761.751.851.891.95 Non-inter

70、est income to operating income(%)925.5929.8126.7329.0825.98 Cost to income ratio(calculated under regulations in the Chinese mainland,%)1027.8828.1726.7328.0028.09Capital ratios11 Net common equity tier 1 capital1,991,3421,843,8861,704,7781,596,3781,465,769 Net additional tier 1 capital381,648329,84

71、5287,843210,057109,524 Net tier 2 capital573,481525,108458,434394,843347,057 Common equity tier 1 capital adequacy ratio(%)11.8411.3011.2811.3011.41 Tier 1 capital adequacy ratio(%)14.1113.3213.1912.7912.27 Capital adequacy ratio(%)17.5216.5316.2215.5914.97Asset quality Credit-impaired loans to tota

72、l loans(%)121.321.331.461.371.42 Non-performing loans to total loans(%)131.321.331.461.371.42 Allowance for loan impairment losses to non-performing loans(%)14188.73187.05177.84182.86181.97 Credit cost(%)150.560.660.760.800.95 Allowance for loan impairment losses to total loans(%)162.502.492.602.502

73、.58Exchange rate USD/RMB year-end central parity rate6.96466.37576.52496.97626.8632 EUR/RMB year-end central parity rate7.42297.21978.02507.81557.8473 HKD/RMB year-end central parity rate0.89330.81760.84160.89580.87629Bank of China LimitedFinancial HighlightsNotes:1 Non-interest income=net fee and c

74、ommission income+net trading gains/(losses)+net gains/(losses)on transfers of financial asset+other operating income.2 Allowance for loan impairment losses=allowance for loans at amortised cost+allowance for loans at fair value through other comprehensive income.3 The investments include financial a

75、ssets at fair value through profit or loss,financial assets at fair value through other comprehensive income and financial assets at amortised cost.4 Dividend per share is the dividend per ordinary share distributed to ordinary shareholders.5 Net assets per share=(capital and reserves attributable t

76、o equity holders of the Bank at year-end other equity instruments)number of ordinary shares in issue at year-end.6 Return on average total assets=profit for the year average total assets 100%.Average total assets=(total assets at the beginning of the year+total assets at year-end)2.7 Return on avera

77、ge equity=profit attributable to ordinary shareholders of the Bank weighted average capital and reserves attributable to ordinary shareholders of the Bank 100%.Calculation is based on No.9 Preparation and Reporting Rules of Information Disclosure of Public Offering Companies Calculation and Disclosu

78、re of Return on Average Equity and Earnings per Share(Revised in 2010)(CSRC Announcement 2010 No.2)issued by the CSRC.8 Net interest margin=net interest income average balance of interest-earning assets 100%.Average balance is average daily balance derived from the Groups management accounts(unaudit

79、ed).9 Non-interest income to operating income=non-interest income operating income 100%.10 Cost to income ratio is calculated in accordance with the Measures of the Performance Evaluation of Financial Enterprises(Cai Jin 2016 No.35)formulated by the MOF.11 The capital ratios are calculated under the

80、 advanced approaches and in accordance with Capital Rules for Commercial Banks(Provisional)(Y.J.H.L.2012 No.1).12 Credit-impaired loans to total loans=credit-impaired loans at year-end total loans at year-end 100%.Total loans are exclusive of accrued interest when being used to calculate credit-impa

81、ired loans to total loans.13 Non-performing loans to total loans=non-performing loans at year-end total loans at year-end 100%.Total loans are exclusive of accrued interest when being used to calculate non-performing loans to total loans.14 Allowance for loan impairment losses to non-performing loan

82、s=allowance for loan impairment losses at year-end non-performing loans at year-end 100%.Total loans are exclusive of accrued interest when being used to calculate allowance for loan impairment losses to non-performing loans.15 Credit cost=impairment losses on loans average balance of loans 100%.Ave

83、rage balance of loans=(balance of loans at the beginning of the year+balance of loans at year-end)2.Total loans are exclusive of accrued interest when being used to calculate credit cost.16 Allowance for loan impairment losses to total loans=allowance for loan impairment losses at year-end total loa

84、ns at year-end 100%.Calculation is based on the data at the Group level,with historical data adjusted accordingly.Total loans are exclusive of accrued interest when being used to calculate allowance for loan impairment losses to total loans.2022 Annual Report10Registered Name in Chinese中國銀行股份有限公司(“中

85、國銀行”)Registered Name in EnglishBANK OF CHINA LIMITED(“Bank of China”)ChairmanGE HaijiaoVice Chairman and PresidentLIU JinListing Affairs RepresentativeYU KeOffice Address:No.1 Fuxingmen Nei Dajie,Xicheng District,Beijing,ChinaTelephone:(86)10-6659 2638E-mail:Registered AddressNo.1 Fuxingmen Nei Daji

86、e,Xicheng District,Beijing,ChinaOffice AddressNo.1 Fuxingmen Nei Dajie,Xicheng District,Beijing,China,100818Telephone:(86)10-6659 6688Facsimile:(86)10-6601 6871Website:Customer Service and Complaint Hotline:(86)Area Code-95566Place of Business in Hong Kong SARBank of China Tower,1 Garden Road,Centra

87、l,Hong Kong,ChinaSelected Newspapers for Information Disclosure(A Share)China Securities Journal,Shanghai Securities News,Securities Times,Securities DailyWebsite of the SSE for Publication of the Annual RWebsite of the HKEX for Publication of the Annual Reportwww.hkexnews.hkPlace Where Annual Repor

88、t Can Be ObtainedHead Office of Bank of China LimitedShanghai Stock ExchangeCorporate InformationLegal AdvisorKing&Wood MallesonsClifford ChanceAuditorsDomestic AuditorPricewaterhouseCoopers Zhong Tian LLPOffice Address:Room 01,Unit 507,DBS Bank Tower,1318 Lu Jia Zui Ring Road,(Shanghai)Pilot Free T

89、rade Zone,ChinaCertified Public Accountants who signed the auditors report:Ms.HO Shuk Ching Margarita,Mr.ZHU Yu,Mr.LI DanInternational AuditorPricewaterhouseCoopersOffice Address:22/F,Princes Building,Central,Hong Kong,ChinaUnified Social Credit Code911000001000013428Financial Institution Licence Se

90、rial NumberB0003H111000001Registered CapitalRMB294,387,791,241Securities InformationA ShareShanghai Stock ExchangeStock Name：中國銀行Stock Code：601988H ShareThe Stock Exchange of Hong Kong LimitedStock Name：Bank of ChinaStock Code：3988Domestic Preference ShareShanghai Stock ExchangeThird TrancheStock Na

91、me：中行優3Stock Code：360033Fourth TrancheStock Name：中行優4Stock Code：360035Offshore Preference Share Second TrancheThe Stock Exchange of Hong Kong LimitedStock Name:BOC 20USDPREFStock Code:461911Bank of China Limited2022 Annual Report12Message from the ChairmanThe past year of 2022 was one of great chang

92、es and new beginnings for Bank of China.We celebrated our 110th anniversary and entered the next chapter of our history.Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,we continued to seek progress while ensuring stability,and at the same time oriented towards th

93、e New Development Pattern featuring positive interplay between domestic and international economic flows.Helped by the strong resilience,tremendous potential and great vitality of Chinese economy,and the strong fundamentals sustaining its long-term growth,weve effectively managed headwinds from unex

94、pected factors and achieved solid and hard-earned results.In 2022,we delivered continued and steady growth.The Group reported an operating income of RMB619.139 billion,up 2.22%from the previous year;profit reached RMB237.504 billion,up 4.47%;and profit attributable to equity holders increased by 5.0

95、2%to RMB227.439 billion.Our assets and liabilities registered stable growth as well.For the year,the Group reported total assets of RMB28.91 trillion and total liabilities of RMB26.35 trillion,a year-on-year increase of 8.20%and 8.10%,respectively.Weve also been constantly at work to improve our ris

96、k prevention and control.As at the end of the year,our ratio of non-performing loans was 1.32%,down 0.01 percentage point,our allowance for loan impairment losses to non-performing loans was 188.73%,up 1.68 percentage points;and our capital adequacy ratio increased by 0.99 percentage point from a ye

97、ar earlier,further bolstering our cushion against risk.In line of these results,the Board of Directors has proposed a cash dividend of RMB2.32 per ten ordinary shares,representing a dividend payout ratio of 30%.And we made substantial progress in key areas including serving the real economy,preventi

98、ng financial risks,and advancing financial reform.We played an increasing role in supporting the macro-economy.We scaled up credit supply and grew our domestic RMB loans by over RMB1.58 trillion,hitting a record high.Especially,we channeled more resources to the key areas and underserved sectors in

99、the national economy;domestic lending to the technology sector,to the strategic and emerging industries,and to green development-related fields all achieved a double-digit growth.We also cut the financing cost for businesses in the real economy,with the interest rate on new loans down by 53 basis po

100、ints.Furthermore,in acting upon the finance-for-the-people philosophy,we grew our loans to micro and small businesses by nearly 40%and significantly ramped up non-housing consumer loans.We further improved the health of our business through prudent operations.We established a research and analysis m

101、echanism for major risks that would allow us to stay ahead of the market curve in risk management.We accelerated implementing the comprehensive risk management system 2.0 across the Group,and pushed ahead with the building of a long-effect mechanism for compliance management in overseas operations,e

102、ffectively promoting the culture of comprehensive risk management at all levels.We also worked proactively to conduct reviews of our credit assets,identifying and resolving credit risks as appropriate,which has allowed us to maintain healthy and stable asset quality.Replenishing capital both interna

103、lly and from outer sources,we have increased our capital adequacy ratio and allowance for losses to non-performing loans,and become better positioned to withstand risk.13Bank of China LimitedMessage from the ChairmanWe brought more dynamism and energy to our organization through reform.We made revis

104、ions to the Articles of Association of the Bank and enhanced corporate governance.We took a practical and problem-oriented approach to address many of the pain points and bottlenecks that had hindered our development.We also kept up advancing reform of our systems and procedures,to build stronger ad

105、aptability into them and lay a solid foundation for future high-quality growth of the Group.And we pushed for faster digital transformation on all fronts,delivering breakthroughs in enterprise-level infrastructure development and starting a full roll-out of smart operation and outlet transformation

106、initiatives.Additionally,we launched more talent exchange programs,cultivated expertise in key areas,and continued optimizing our incentives and accountability policies.We also actively facilitated the New Development Pattern.Last year,our total international settlement volume was USD7.7 trillion an

107、d cross-border RMB settlement volume stood at RMB31.14 trillion;and we provided over RMB550 billion of import and export financing for the year,up 15%year on year.We also provided high-quality services to major exhibitions events hosted in China to support businesses to tap into opportunities both a

108、t home and abroad.In addition,we proudly served as the sole banking partner to the Beijing 2022 Winter Olympics,making us the only bank to have sponsored both the Winter and Summer Olympics.In terms of global presence,we pressed ahead with regionalized management and integrated operations.A synergy

109、mechanism for our institutions in areas under the Regional Comprehensive Economic Partnership(“RCEP”)was successfully implemented;our regional headquarters in the EU,the IPU,was put into operation and running smoothly;contribution from overseas operations to the Group has picked up again.2023 will b

110、e the first full year that we comprehensively implement the guiding principles of the 20th National Congress of the CPC,which has drawn up an inspiring blueprint for advancing the great rejuvenation of the Chinese nation on all fronts through a Chinese path to modernization.We will thoroughly and fa

111、ithfully follow through Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,and carry out the strategies and initiatives of the CPC Central Committee and the State Council,to contribute to Chinese modernization through high-quality financial services.We will continue to be gui

112、ded by our founding mission to provide stronger support to the real economy.We will work to match financial services to the needs of Chinese modernization,to support the transformation and upgrading of traditional industries and boost growth of strategic and emerging industries.We will also expand o

113、ur green finance service and unlock our potential to support high-quality indigenous technological innovation.We will remain committed to serving the country and step up efforts to contribute to the new development pattern.We will actively align our business with major national strategies and keep o

114、ptimizing allocation of resources,to further enhance our competence and sharpen our competitive edge in globalization,and step up in our role as a“main financial conduit”in Chinas opening up.We will keep putting people first and make more progress in making finance inclusive for the benefit of all.W

115、e will provide more funding support to help businesses grow while reducing their financing costs.And we will make our services better targeted to reach more of the micro,small and medium-sized enterprises and private enterprises,promote consumption,and stimulate domestic demand.2022 Annual Report14M

116、essage from the ChairmanWe will also hold the bottom-line of preventing major financial risks and strengthen our capabilities to cope with risks and challenges.We will raise awareness of potential dangers and risks,and carry out accurate and dynamic risk analysis.We will also ensure that emergency p

117、lans are ready and in place to cope with all situations,to guarantee healthy and stable running of our business and improve the quality of our operation.Under no circumstances will we allow the occurrence of systemic risk.Having enjoyed excellence and success for over a century,Bank of China is now

118、standing at the starting point of a new journey that promises new hopes and opportunities.Riding the force of Chinese modernization,we will work hard and forge ahead with fortitude and enterprise,to chart out a path of financial development with Chinese characteristics,and create greater value for o

119、ur clients,our shareholders,and the society.GE HaijiaoChairman15Bank of China Limited2022 Annual Report16The past year of 2022 was marked by extraordinary hard work,but great rewards as well.Early in the year,we celebrated our 110th anniversary,a new starting point that saw us shouldering greater re

120、sponsibilities and rising above challenge after challenge.We carried through the strategies and plans of the CPC Central Committee and the State Council,delivering simultaneous gains on multiple fronts,including serving the real economy,forestalling financial risks,deepening reform and innovation,an

121、d Covid-19 prevention and control.We also pushed ahead with the Groups plan for the 14th Five-Year Period and made substantial progress on all major strategic priorities,which has better positioned us to serve as a ballast for the economy and got us off to a new stage of excellence.We focused on ser

122、ving the high-quality development of the economy and society,and along the way,achieved fruitful results in each of the“Eight Priority Areas”.Our outstanding credit balance for technology finance exceeded RMB1 trillion,and loans granted to strategic and emerging industries doubled within the year.Fo

123、r green finance,we gathered pace to build and expand“BOC Green+”,our full range of diverse green financial products and services.In addition,we issued RMB87.7 billion worth of green bonds in domestic and offshore markets,leading the peers;and completed operational carbon footprint verification for o

124、ver 10,000 entities under the Group.With respect to inclusive finance,over 60%of new inclusive loans were processed online,and more than RMB345 billion of credit facilities were extended to over 18,000 specialized and sophisticated enterprises producing new and unique products.We also reinforced our

125、 advantage in cross-border finance,further expanding the client base for our cross-border settlement services;and provided wider offerings of consumer finance products,with remarkable growth in non-mortgage loans.In terms of wealth finance,we acquired a record number of new domestic medium to high-n

126、et worth clients and saw the total retail assets under management(AUM)of the Group closing on RMB13 trillion.For supply-chain finance,we ramped up support for core enterprises and their upstream and downstream partners,with RMB2.5 trillion of revolving credit facilities and RMB2.2 trillion of term l

127、oans newly granted and increasingly rich scenario-based services under the“BOC Smart Chain”brand.In the market of counties and townships,our network of outlets has constantly grown in coverage,and reported over RMB2 trillion in outstanding balance of agriculture loans.Also,we directed more financing

128、 resources to support businesses upgrading equipment,manufacturers with medium and long-term needs,and projects eligible for funding under the development and policy-backed financial instruments,to better align our services with what the country and people expected of us.We enhanced the synergy betw

129、een the“One Mainstay”and“Two Engines”in an effort to sharpen our competitive edge.To keep up with the trend and meet customer needs,we worked to ensure that our global expertise and all-round services are accessible at any point of contact.There has been constant improvement for the strategic develo

130、pment landscape with our domestic commercial banking services as the business mainstay,our globalised operations and diversified business platforms as the two growth engines.Domestically,we reviewed and optimised our development plans for the Beijing-Tianjin-Hebei region,Yangtze River Delta,Guangdon

131、g-Hong Kong-Macao Greater Bay Area and Chengdu-Chongqing Economic Circle to Message from the President17Bank of China LimitedMessage from the Presidentsuit the changing environment;a move that has enabled our domestic commercial banking business to amplify its anchoring role amid the increasing unce

132、rtainty.For overseas operations,weve set up the Cross-border Finance Committee under the Executive Committee,and updated our market-by-market strategies to reflect the changing international landscape.The Banks overseas commercial banking business led to a higher contribution to the Groups total pro

133、fit at 18.28%.Furthermore,we unveiled new financial service solutions to support the RCEP and the internationalisation of RMB;and participated in more projects in BRI partner countries,with over USD269.0 billion of credit extended to over 900 projects already.We also hosted many match-making events

134、under the“100 Activities for 10,000 Enterprises”program,in partnership with various government ministries and agencies,to facilitate growth of export-oriented enterprises.For non-commercial banking operations,weve enhanced the role of Integrated Service and Synergy Office to cover all key regions,bu

135、ilt a debt-equity financing platform,and launched technological innovation-themed FOFs for the Yangtze River Delta and Hengqing New Area,enabling our non-banking subsidiaries to outperform major peers in their contribution to the Groups total revenue.And in our private banking line,weve set up the“E

136、ntrepreneurs Office”,to create a globally integrated platform providing all-around and full-cycle wealth management services.We achieved initial success in digital transformation on all fronts,laying a solid foundation for future reform and development.We pressed ahead with the reform to the technol

137、ogy management system,promoting our ability to invigorate and adapt to change,thus enhancing IT capacity for the year.We got 611 FinTech patents approved,which was a great leap ahead.We reengineered key businesses process to fit them into the EA framework,and ensured all new systems would go live as

138、 scheduled,bringing our next-generation distributed technology platform into shape.We also established Digital Asset Operation Centre,which enhanced our capabilities in data mining,application and management;and we completed the building of a national operation center that boosted our productivity t

139、hrough business integration.To adapt to digital economy,we released the white paper on“Building Scenario-Based Financial Services Ecosystem V2.0”and launched new digital service package such as“I-SMART BOC inclusive finance services”,“digital CIIE services”and“smart business treasurer”,to cater for

140、different sectors and areas.In addition,we featured e-CNY in our Winter Olympics scenarios,and built the largest network of merchants using our e-wallet services in China.And we upgraded our online and mobile banking services at a faster pace,hitting 76.2 million monthly active users of our mobile p

141、ersonal banking APP.We made progress in refined management,building a solid foundation for operation and development.While cutting fees and interest rates in support of the real economy,we proactive balanced sheet management and maintain a stable net interest margin and a steadily-increasing EVA.In

142、our pursuit of better financial performance,we continued to trim cost and expenditure and improve input-output efficiency,lowering the cost-to-income ratio by 0.29 percentage points.We advanced projects aiming to generate more accounts and attract more clients:on the corporate side,we saw a double-d

143、igit growth in basic corporate clients and a 9.1%increase in effective corporate clients;on the retail side,the number of private banking customers witnessed steady growth,and the personal clients,still higher.In addition,we accelerated the building of comprehensive risk management system,and kept a

144、ll major risk indicators within regulatory and the Boards requirements.We also set up a Cyber Security Operation Centre to enhance our IT defense system.2022 Annual Report18Message from the PresidentSuch achievements were only made possible by the devotion and tenacity of our staff.In 2022,all our 3

145、00,000-plus employees met challenges head-on,went out of their way and achieved satisfactory results that are especially hard to come by in times like this,celebrating the 110th anniversary of the Bank in an extraordinary way and fully demonstrating the century-old inheritance of BOC.For that,the Se

146、nior Management extends the most heartfelt thanks to all our customers,shareholders and friends from all sectors of society for your generous trust and support;and to all our employees for your extraordinary hard work and contribution.In 2023,we will continue to make confident strides towards our go

147、als.Following the guiding principles of the 20th CPC National Congress,the Senior Management team will work closely with the Board of Directors and the Board of Supervisors,to lead the Bank to enhance strategy execution,sharpen market competitiveness,and better serve the high-quality economic and so

148、cial development.We will remain steadfast,diligent and united on our great journey to build BOC into a first-class global banking group.LIU JinPresident19Bank of China Limited2022 Annual Report20In 2022,in compliance with relevant laws and regulations,regulatory requirements and the Articles of Asso

149、ciation of the Bank,the Board of Supervisors performed its duties diligently and earnestly,acted with initiative,and deepened its understanding of the political and people-centred nature of financial work.It aligned its efforts with national decisions and plans on economic and financial work,the rec

150、tification requirements raised in the discipline inspection of the CPC Central Committee,the audit opinions of the National Audit Office,regulatory requirements,the Banks 14th Five-Year Development Plan and its core supervisory responsibilities,thus further enhancing its political orientation and ca

151、pacity as a supervisory body.By intensifying supervision efforts,employing new supervision methods,strengthening supervision quality and effectiveness,and reinforcing self-development,the Board of Supervisors forged synergies with all parties related to corporate governance so as to jointly promote

152、the high-quality development of the Bank.In 2022,the Board of Supervisors actively adhered to the strategies and priorities of the country and constantly improved its supervision efficiency,keeping a close eye on the work priorities of the Bank.It focused on the Banks efforts to fully observe major

153、national decisions and plans as well as the inspection feedback of the CPC Central Committee,and intensified its supervisory and guidance efforts.The Board of Supervisors paid close attention to the Banks efforts to help stabilise the economy,increase the supply of financial resources to key areas,b

154、etter meet peoples diverse financial needs,and effectively forestall and defuse major financial risks,etc.,and gave timely reflections and prompts by means of letters of supervisory recommendation,supervision and evaluation opinions,quarterly supervision reports and special survey reports.It effecti

155、vely performed its strategy supervision responsibilities.The Board of Supervisors closely followed up on the implementation progress of the Groups 14th Five-Year Development Plan,provided evaluation opinions on the execution of its strategic plans,conducted special surveys on various topics such as

156、promoting high-level opening up,cross-border risk management,integrated operations and IT management,and supervised and encouraged the Group to continue to develop the key strategic aspects of the“Eight Priority Areas”,consolidate and expand its advantages in globalised and integrated operations,and

157、 accelerate digital transformation,so as to continuously improve the effectiveness of strategy implementation.It organised duty performance supervision for directors and senior management members in an orderly manner.The Board of Supervisors conscientiously conducted an annual evaluation of the duty

158、 performance of the Board of Directors and the Senior Management,carried out special surveys on financial services support for the rural revitalisation strategy and the implementation of the Guangdong-Hong Kong-Macao Greater Bay Area strategy,and supervised and encouraged the Board of Directors and

159、Senior Management to better serve major national strategies and perform their duties in compliance with the law and regulations.It strengthened supervision of financial management.The Board of Supervisors issued deliberations on regular reports,conducted special surveys on the effectiveness of finan

160、cial management,and supervised and encouraged the Group to improve the refined management of its financial operations,in a bid to enhance the Groups comprehensive competitiveness.It deepened supervision of risk management and internal control through a problem-oriented approach.In response to change

161、s in the external situation,the Board of Supervisors delivered supervision reports and risk alerts in a timely manner,conducted special surveys on the key links of comprehensive risk management,and supervised and encouraged the Group to strengthen credit risk prevention and control in key areas,impr

162、ove market risk and derivative risk management,Message from the Chairwoman of the Board of Supervisors21Bank of China LimitedMessage from the Chairwoman of the Board of Supervisorsreinforce cross-border and cross-industry integrated risk management for overseas institutions and comprehensive operati

163、on companies,and enhance the effectiveness of major risk screening and stress tests.All these efforts ensured that no systemic risks arose.It worked to enhance coordination and integration.The Board of Supervisors adhered to the coordination mechanism that exists between directors and supervisors,de

164、epened its coordination with the Banks second and third lines of defence and comprehensive management departments,and strengthened the supervision and guidance of internal and external audits,in a bid to better leverage supervision synergies.In 2022,the Board of Supervisors made further headway in p

165、ursuing self-improvement.It improved its policy system,strengthened its team building,upgraded its professionalism,and enhanced the incentive and constraint mechanism for supervisors to perform their duties.All members of the Board of Supervisors performed their supervisory duties faithfully and dil

166、igently,and rendered professional,well-considered and unbiased suggestions.The Board of Directors and Senior Management highly valued and strongly supported the work of the Board of Supervisors,and earnestly responded to and widely adopted its opinions and recommendations.In this way,the supervision

167、 results of the Board of Supervisors were effectively communicated,implemented and applied across the Bank.The work of the Board of Supervisors was fully recognised and appreciated by the market and its peers,with the Board of Supervisors of the Bank winning the“Best Practices Award for the Board of

168、 Supervisors of Listed Companies”for the first time.In 2022,the Board of Supervisors completed changes to some of its members in compliance with laws and regulations and the Articles of Association of the Bank.The Board of Supervisors would like to express our sincere gratitude to Mr.LENG Jie and Mr

169、.ZHENG Zhiguang,who no longer serve as supervisors of the Bank,for their efforts and contributions to the Bank during their tenure,and extend our warm welcome to Mr.HUI Ping and Mr.CHU Yiyun as new supervisors of the Bank.In 2023,under the guidance of Xi Jinping Thought on Socialism with Chinese Cha

170、racteristics for a New Era,the Board of Supervisors will earnestly implement the guiding principles of the 20th CPC National Congress,major national decisions and plans,and regulatory requirements,by taking practical actions to complete all supervision work to a high standard of quality.With a focus

171、 on the Banks 14th Five-Year Development Plan,it will continue to conduct effective supervision of strategy,duty performance,financial management,risk management and internal control in a more forward-looking,timely and professional manner,and make greater contributions to the Banks drive towards bu

172、ilding a first-class global banking group.ZHANG KeqiuChairwoman of the Board of Supervisors2022 Annual Report22Management Discussion and AnalysisFinancial ReviewEconomic and Financial Environment 23Income Statement Analysis 24 Net Interest Income and Net Interest Margin Non-interest Income Operating

173、 Expenses Impairment Losses on Assets Income Tax ExpenseFinancial Position Analysis 31 Loans and Advances to Customers Investments Due to Customers Liability Quality Management EquityOff-balance Sheet Items 38Cash Flow Analysis 38Segment Reporting by Geography 39Critical Accounting Estimates and Jud

174、gements 40Fair Value Measurement 41Other Financial Information 4123Bank of China LimitedManagement Discussion and Analysis Financial ReviewEconomic and Financial EnvironmentIn 2022,global economic growth decelerated amid intensified international geopolitical conflicts,greater downward pressures on

175、the global economy and increased uncertainty in the development environment.Major developed economies continued to tighten monetary policy,albeit with a slowdown in interest rate hikes.The US Federal Reserve,European Central Bank and Bank of England hiked interest rates by an aggregate of 425 bps,25

176、0 bps and 325 bps respectively in 2022.The Bank of Japan fine-tuned its yield curve control policy and several emerging economies repeatedly raised interest rates.Global exchange rates experienced intensified volatility,and the US Dollar Index and US Treasury yields moved higher,causing cross-border

177、 capital increasingly flow back to the US.Global financial markets fluctuated sharply,with rebounds in major US and European stock markets.The risk of sovereign debt default increased in some economies.Commodity prices soared at the beginning of the year and softened towards year-end.China efficient

178、ly coordinated its epidemic prevention and control with economic and social development,intensified macroeconomic policies,and coped with shocks brought about by unexpected factors,thus steadily improving the quality of its development and maintaining a stable economic and social situation.In 2022,C

179、hinas gross domestic product(GDP)increased by 3.0%year-on-year.Value-added of industrial enterprises above a designated size rose by 3.6%year-on-year,total retail sales of consumer goods(TRSCG)fell by 0.2%year-on-year,total fixed asset investments(TFAI)(excluding those by rural households)grew by 5.

180、1%year-on-year,total imports and exports of goods rose by 7.7%year-on-year,the trade surplus was RMB5.86 trillion,and the consumer price index(CPI)went up by 2.0%year-on-year.The PBOC stepped up efforts to implement a prudent monetary policy and gave full play to the guiding role of structural monet

181、ary policy instruments,realising reasonable growth in the scale of monetary credit and social financing,continuous optimisation of the credit structure,and a steady decrease in comprehensive financing costs,which strongly supported the stabilisation of the macro economy.Overall,financial markets ope

182、rated smoothly,liquidity was kept adequate at a reasonable level,and RMB exchange rates remained generally stable at an adaptive and equilibrium level.As at 31 December 2022,the outstanding broad money supply(M2)grew by 11.8%year-on-year to RMB266.4 trillion.Outstanding RMB loans increased by 11.1%t

183、o RMB214.0 trillion.Aggregate financing to the real economy(AFRE)increased by 9.6%to RMB344.21 trillion.The Shanghai Stock Exchange Composite Index stood at 3,089,down 15.1%from the prior year-end.The central parity rate of RMB against USD was 6.9646,a depreciation of 8.5%compared with the prior yea

184、r-end.Chinas banking institutions firmly supported the national development strategy and strengthened their support to key fields and weak links of the national economy as well as coordinated regional development.The financial industry helped stabilise the macro economy by facilitating the financing

185、 and execution of major projects and meeting the financial service needs of key fields such as infrastructure and strategic emerging industries.New consumer finance scenarios were created to support consumption recovery and expansion.In an ongoing effort to enhance public well-being,stronger support

186、 was provided to assist micro and small-sized enterprises,bolster the private sector,serve rural revitalisation and promote common prosperity.The new development philosophy was applied to support sci-tech innovation and high-level opening up,and to boost green,circular and low-carbon economic and so

187、cial development.By forestalling and defusing major risks in real estate and local government debt,the banking industry defended 2022 Annual Report24Management Discussion and Analysis Financial Reviewthe bottom line that no systemic risk should occur.As at the end of 2022,the total assets of Chinas

188、banking industry grew by 10.0%from the prior year-end to RMB379.39 trillion,while total liabilities increased by 10.4%to RMB348.00 trillion.Commercial banking institutions recorded an aggregate profit after tax of RMB2.30 trillion.Outstanding non-performing loans(NPLs)stood at RMB2.98 trillion at th

189、e year-end,with an NPL ratio of 1.63%.Income Statement AnalysisClosely adhering to the requirements of the Groups 14th Five-Year Plan,the Bank coordinated its pandemic response efforts with the advancement of its operations and management,gave full play to the synergies of the“One Mainstay,Two Engin

190、es”strategy,and focused on all aspects of the“Eight Priority Areas for Enhancing Financial Services Capabilities”,thus pursuing progress while ensuring stability in business performance.In 2022,the Group In 2022,the Group achieved a profit for the year ofRMB237.504 billionan increase of 10.165 billi

191、onor 4.47%compered with the prior yearachieved a profit for the year of RMB237.504 billion,an increase of RMB10.165 billion or 4.47%compared with the prior year.It realised a profit attributable to equity holders of the Bank of RMB227.439 billion,an increase of RMB10.880 billion or 5.02%compared wit

192、h the prior year.Return on average total assets(ROA)was 0.85%and return on average equity(ROE)was 10.81%.The principal components and changes of the Groups consolidated income statement are set out below:Unit:RMB million,except percentagesItems20222021ChangeChange(%)Net interest income460,678425,142

193、35,5368.36%Non-interest income158,461180,575(22,114)(12.25%)Including:net fee and commission income72,24881,426(9,178)(11.27%)Operating income619,139605,71713,4222.22%Operating expenses(231,196)(226,355)(4,841)2.14%Impairment losses on assets(103,993)(104,220)227(0.22%)Operating profit283,950275,142

194、8,8083.20%Profit before income tax284,595276,6207,9752.88%Income tax expense(47,091)(49,281)2,190(4.44%)Profit for the year237,504227,33910,1654.47%Profit attributable to equity holders of the Bank227,439216,55910,8805.02%25Bank of China LimitedManagement Discussion and Analysis Financial ReviewA de

195、tailed review of the Groups principal items in each quarter of 2022 is summarised in the following table:Unit:RMB millionFor the three-month period ended31 December30 September30 June31 MarchItems2022202220222022 Operating income151,203154,325152,460161,151Profit attributable to equity holders of th

196、e Bank54,35853,15762,17357,751Net cash inflow/(outflow)from operating activities302,030(186,627)167,397(294,137)Net Interest Income and Net Interest MarginIn 2022,the Group achieved net interest income of RMB460.678 billion,an increase of RMB35.536 billion or 8.36%compared with the prior year.Specif

197、ically,interest income stood at RMB882.273 billion,an increase of RMB92.785 billion or 11.75%compared with the prior year,and interest expense stood at RMB421.595 billion,an increase of RMB57.249 billion or 15.71%compared with the prior year.Interest IncomeIn 2022,interest income on loans was RMB652

198、.729 billion,an increase of RMB71.729 billion or 12.35%compared with the prior year,which was primarily attributable to an increase in loan scale.Interest income on investments amounted to RMB165.954 billion,an increase of RMB12.095 billion or 7.86%compared with the prior year,mainly due to an incre

199、ase in investment scale.The Group achieved net interest income ofRMB460.678 billion,an increase of RMB35.536 billionor 8.36%compared with the prior year.Interest income stood at RMB 882.273 billion,an increase of RMB92.785 billion or 11.75%compared with the prior year.Interest expense stood at RMB 4

200、21.595 billion,an increase of RMB57.249 billionor 15.71%compared with the prior year.2022 Annual Report26Management Discussion and Analysis Financial ReviewInterest income on balances with central banks and due from and placements with banks and other financial institutions was RMB63.590 billion,an

201、increase of RMB8.961 billion or 16.40%compared with the prior year,mainly due to the increase in interest rates.Interest ExpenseIn 2022,interest expense on due to customers was RMB311.936 billion,an increase of RMB48.337 billion or 18.34%compared with the prior year,principally due to an increase in

202、 the scale and the interest rate of deposits.Interest expense on due to and placements from banks and other financial institutions was RMB65.378 billion,an increase of RMB6.467 billion or 10.98%compared with the prior year,which was primarily attributable to the increase in interest rates.Interest e

203、xpense on bonds issued was RMB44.281 billion,an increase of RMB2.445 billion or 5.84%compared with the prior year,which was mainly attributable to an increase in the scale of bonds issued.Net Interest MarginIn 2022,the Groups net interest margin was 1.76%,up 1bp compared with the prior year.With the

204、 reduction of the RMB Loan Prime Rate(LPR)and decline of RMB loan yields,the Bank seized the opportunity arising from the US Federal rates hike and optimised its asset and liability structure,making steady progress on the net interest margin.First,average interest rates of foreign currency assets in

205、creased,which was driven by US Federal rates hike and optimisation of asset structure of foreign currency.Second,RMB assets structure was optimised.The proportion of RMB loans within the Banks interest-earning assets increased,with the proportion of the average balance of RMB medium and long-term lo

206、ans within its total RMB loans in the Chinese mainland being 74.45%.Third,the Bank maintained a balance between quantity and price,strengthened liability cost control,the costs of its domestic RMB liabilities kept decreasing.27Bank of China LimitedManagement Discussion and Analysis Financial ReviewT

207、he average balances1 and average interest rates of the major interest-earning assets and interest-bearing liabilities of the Group,as well as the impact on interest income/expense of variances in the volume factor and the interest rate factor2,are summarised in the following table:Unit:RMB million,e

208、xcept percentages20222021Analysis of changes in interest income/expenseItemsAverage balanceInterest income/expenseAverage interest rateAverage balanceInterest income/expenseAverage interest rateVolume factorInterest rate factorTotal Interest-earning assetsLoans16,750,217652,7293.90%15,173,295581,000

209、3.83%60,39611,33371,729Investments5,616,331165,9542.95%5,237,687153,8592.94%11,13296312,095Balances with central banks and due from and placements with banks and other financial institutions3,878,78063,5901.64%3,860,70654,6291.42%2578,7048,961Total26,245,328882,2733.36%24,271,688789,4883.25%71,78521

210、,00092,785Interest-bearing liabilitiesDue to customers18,854,117311,9361.65%17,356,352263,5991.52%22,76625,57148,337Due to and placements from banks and other financial institutions3,831,83165,3781.71%3,739,85458,9111.58%1,4535,0146,467Bonds issued1,440,78744,2813.07%1,313,38741,8363.19%4,064(1,619)

211、2,445Total24,126,735421,5951.75%22,409,593364,3461.63%28,28328,96657,249Net interest income460,678425,14243,502(7,966)35,536Net interest margin1.76%1.75%1 BpNotes:1.Investments include debt securities at fair value through other comprehensive income,debt securities at amortised cost,investment trust

212、s and asset management plans,etc.2.Balances with central banks and due from and placements with banks and other financial institutions include mandatory reserves,surplus reserves,other placements with central banks and due from and placements with banks and other financial institutions.3.Due to and

213、placements from banks and other financial institutions include due to and placements from banks and other financial institutions,due to central banks and other funds.1 Average balances are average daily balances derived from the Groups management accounts(unaudited).2 The impact on interest income/e

214、xpense of variances in the volume factor is calculated based on the changes in average balances of interest-earning assets and interest-bearing liabilities during the reporting period.The impact on interest income/expense of variances in the interest rate factor is calculated based on the changes in

215、 the average interest rates of interest-earning assets and interest-bearing liabilities during the reporting period.The impact relating to the combined changes in both the volume factor and the interest rate factor has been classified as a change in the interest rate factor.2022 Annual Report28Manag

216、ement Discussion and Analysis Financial ReviewThe average balances and average interest rates of loans and due to customers in the Chinese mainland,classified by business type,are summarised in the following table:20222021ChangeItemsAverage balanceAverage interest rateAverage balanceAverage interest

217、 rateAverage balanceAverage interest rate RMB businesses in the Chinese mainlandUnit:RMB million,except percentagesLoansCorporate loans7,492,1733.86%6,535,8974.08%956,276(22)BpsPersonal loans5,554,5414.84%5,243,8204.83%310,7211BpTrade bills445,5601.80%287,5322.66%158,028(86)BpsTotal13,492,2744.20%12

218、,067,2494.38%1,425,025(18)BpsIncluding:Medium and long-term loans10,045,1684.59%9,072,0854.73%973,083(14)BpsShort-term loans within 1 year and others3,447,1063.05%2,995,1643.31%451,942(26)BpsDue to customersCorporate demand deposits3,978,9310.92%3,693,3550.82%285,57610BpsCorporate time deposits2,871

219、,1722.77%2,614,6182.85%256,554(8)BpsPersonal demand deposits2,570,7150.30%2,387,4140.35%183,301(5)BpsPersonal time deposits4,220,9282.93%3,671,8593.07%549,069(14)BpsOther738,4263.11%664,5643.22%73,862(11)BpsTotal14,380,1721.88%13,031,8101.90%1,348,362(2)BpsForeign currency businesses in the Chinese

220、mainlandUnit:USD million,except percentagesLoans52,8801.88%45,0290.97%7,85191BpsDue to customersCorporate demand deposits70,3720.27%76,6200.25%(6,248)2BpsCorporate time deposits38,0481.19%31,5060.78%6,54241BpsPersonal demand deposits27,0240.02%26,3070.01%7171BpPersonal time deposits15,8290.40%16,390

221、0.40%(561)Other3,1461.68%2,6051.73%541(5)BpsTotal154,4190.50%153,4280.36%99114BpsNote:“Due to customers Other”includes structured deposits.29Bank of China LimitedManagement Discussion and Analysis Financial ReviewNon-interest IncomeIn 2022,the Group reported non-interest income of RMB158.461 billion

222、,a decrease of RMB22.114 billion or 12.25%compared with the prior year.Non-interest income represented 25.59%of operating income.Net Fee and Commission IncomeThe Group earned net fee and commission income of RMB72.248 billion,a decrease of RMB9.178 billion or 11.27%compared with the prior year,repre

223、senting 11.67%of operating income.The decrease was mainly driven by a decline in income from agency commission fees and the sale of wealth management products and funds,which was influenced by the weak overall performance of the capital market.Changes in net fee and commission income are set out bel

224、ow:Unit:RMB million,except percentagesItems20222021ChangeChange(%)GroupAgency commissions22,31929,875(7,556)(25.29%)Bank card fees12,25612,717(461)(3.63%)Settlement and clearing fees15,99415,3716234.05%Credit commitment fees11,36811,868(500)(4.21%)Consultancy and advisory fees5,6514,5761,07523.49%Sp

225、read income from foreign exchange business5,7885,5202684.86%Custodian and other fiduciary service fees6,8446,4004446.94%Other6,8828,126(1,244)(15.31%)Fee and commission income87,10294,453(7,351)(7.78%)Fee and commission expense(14,854)(13,027)(1,827)14.02%Net fee and commission income72,24881,426(9,

226、178)(11.27%)Chinese mainlandAgency commissions17,70222,869(5,167)(22.59%)Bank card fees10,07810,490(412)(3.93%)Settlement and clearing fees14,37013,7995714.14%Credit commitment fees5,4005,733(333)(5.81%)Consultancy and advisory fees4,7804,4663147.03%Spread income from foreign exchange business5,5205

227、,3072134.01%Custodian and other fiduciary service fees6,1946,232(38)(0.61%)Other5,4358,031(2,596)(32.32%)Fee and commission income69,47976,927(7,448)(9.68%)Fee and commission expense(10,772)(12,587)1,815(14.42%)Net fee and commission income58,70764,340(5,633)(8.76%)2022 Annual Report30Management Dis

228、cussion and Analysis Financial ReviewOther Non-interest IncomeThe Group realised other non-interest income of RMB86.213 billion,a decrease of RMB12.936 billion or 13.05%compared with the prior year.This was primarily attributable to a decrease in net trading gains compared with the prior year as a r

229、esult of market price fluctuations.Please refer to Notes V.3,4,5 to the Consolidated Financial Statements for detailed information.Unit:RMB million,except percentagesItems20222021ChangeChange(%)Net trading gains13,33228,291(14,959)(52.88%)Net gains on transfers of financial asset2,0573,197(1,140)(35

230、.66%)Other operating income70,82467,6613,1634.67%Total86,21399,149(12,936)(13.05%)Operating ExpensesThe Bank continued to operate its business in a prudent manner.It optimised its cost structure,allocated greater resources to key products,areas and regions,and strictly reduced the general expenses s

231、o as to further strengthen its refined management and improve input and output efficiency.In 2022,the Group recorded operating expenses of RMB231.196 billion,an increase of RMB4.841 billion or 2.14%compared with the prior year.The Groups cost to income ratio(calculated in accordance with regulations

232、 in the Chinese mainland)was 27.88%,a decrease of 0.29 percentage points compared with the prior year.Please refer to Notes V.6,7 to the Consolidated Financial Statements for detailed information.Unit:RMB million,except percentagesItems20222021ChangeChange(%)Staff costs102,75699,3173,4393.46%General

233、 operating and administrative expenses45,64747,403(1,756)(3.70%)Depreciation and amortisation23,90823,882260.11%Taxes and surcharges6,1355,7154207.35%Insurance benefits and claims33,16431,5791,5855.02%Other19,58618,4591,1276.11%Total231,196226,3554,8412.14%Impairment Losses on AssetsThe Bank continu

234、ed to improve its comprehensive risk management system and adopted a proactive and forward-looking risk management approach,thus ensuring generally stable credit asset quality.It stringently implemented a prudent and solid risk provisioning policy and maintained adequate capacity for risk mitigation

235、.In 2022,the Groups impairment losses on assets totalled RMB103.993 billion,a decrease of RMB0.227 billion or 0.22%compared with the prior year.Please refer to the section“Risk Management Credit Risk Management”and Notes V.17,24 and VI.2 to the Consolidated Financial Statements for more information

236、on loan quality and allowance for loan impairment losses.31Bank of China LimitedManagement Discussion and Analysis Financial ReviewIncome Tax ExpenseIn 2022,the Group incurred income tax of RMB47.091 billion,a decrease of RMB2.190 billion or 4.44%compared with the prior year.The Groups effective tax

237、 rate was 16.55%.Please refer to Note V.10 to the Consolidated Financial Statements for the reconciliation of statutory income tax expense to effective income tax expense.Financial Position AnalysisThe Bank committed itself to high-quality development,proactively adjusted its business strategies in

238、a timely manner and continually improved its business structure,thus achieving steady growth in assets and liabilities.As at the end of 2022,the Groups total assets amounted to RMB28,913.857 billion,an increase of RMB2,191.449 billion or 8.20%compared with the prior year-end.The Groups total liabili

239、ties amounted to RMB26,346.286 billion,an increase of RMB1,974.431 billion or 8.10%compared with the prior year-end.The principal components of the Groups consolidated statement of financial position are set out below:Unit:RMB million,except percentagesAs at 31 December 2022As at 31 December 2021Ite

240、msAmount%of totalAmount%of total AssetsLoans and advances to customers,net17,117,56659.20%15,322,48457.34%Investments6,445,74322.29%6,164,67123.07%Balances with central banks2,313,8598.00%2,228,7268.34%Due from and placements with banks and other financial institutions1,924,4546.66%1,842,7116.90%Oth

241、er assets1,112,2353.85%1,163,8164.35%Total assets28,913,857100.00%26,722,408100.00%LiabilitiesDue to customers20,201,82576.68%18,142,88774.44%Due to and placements from banks and other financial institutions and due to central banks3,622,51613.75%4,046,06316.60%Other borrowed funds1,565,8405.94%1,41

242、5,0325.81%Other liabilities956,1053.63%767,8733.15%Total liabilities26,346,286100.00%24,371,855100.00%Note:“Other borrowed funds”includes bonds issued and other borrowings.2022 Annual Report32Management Discussion and Analysis Financial ReviewLoans and Advances to CustomersThe Bank earnestly fulfill

243、ed its responsibilities as a large state-owned bank and increased its support for the real economy,thus achieving solid growth in lending scale.It thoroughly implemented Chinas major regional strategies and coordinated regional development strategies,bolstered support for key areas such as inclusive

244、 finance,green finance and strategic emerging industries,and continued to improve its credit structure.As at the end of 2022,the Groups loan and advances to customers amounted to RMB17,554.322 billion,an increase of RMB1,841.748 billion or 11.72%compared with the prior year-end.Specifically,the Grou

245、ps RMB loans and advances to customers totalled RMB14,343.427 billion,an increase of RMB1,584.769 billion or 12.42%compared with the prior year-end,while its foreign currency loans amounted to USD461.031 billion,a decrease of USD2.278 billion or 0.49%compared with the prior year-end.Please refer to

246、Note V.17 to the Consolidated Financial Statements for detailed information.The Bank further improved its risk management system,paid close attention to changes in the macroeconomic situation,strengthened risk identification and management in key areas and made greater efforts in the disposal of non

247、-performing assets,thus maintaining generally stable asset quality.As at the end of 2022,the balance of the Groups allowance for loan impairment losses amounted to RMB437.241 billion,an increase of RMB46.700 billion compared with the prior year-end.The balance of the Groups restructured NPLs amounte

248、d to RMB28.417 billion,an increase of RMB5.204 billion compared with the prior year-end.59.20%8.00%22.29%6.66%3.85%Loans and advances to customers,net17,117,566Balances with central banks2,313,859Investments6,445,743Due from and placements with banks and other fnancial institutions1,924,454Other ass

249、ets1,112,235Due tocustomers20,201,825Due to and placements from banks and other fnancial institutions and due to central banks 3,622,516Other borrowed funds1,565,840Other liabilities956,10576.68%13.75%5.94%3.63%LiabilitiesAssetsAssetsLiabilitiesUnit:RMB million,except percentagesAs at 31 December 20

250、22Unit:RMB million,except percentagesAs at 31 December 202233Bank of China LimitedManagement Discussion and Analysis Financial ReviewLoans and Advances to Customers by GeographyUnit:RMB million,except percentagesAs at 31 December 2022As at 31 December 2021ItemsAmount%of totalAmount%of total Corporat

251、e loansChinese mainland:RMB8,523,46348.55%7,161,41645.58%Foreign currency295,1211.68%329,4632.10%Hong Kong(China),Macao(China),Taiwan(China)and other countries and regions2,280,23913.00%2,090,36513.30%Subtotal11,098,82363.23%9,581,24460.98%Personal loansChinese mainland:RMB5,681,11032.36%5,461,64534

252、.76%Foreign currency1,0890.01%7350.00%Hong Kong(China),Macao(China),Taiwan(China)and other countries and regions726,3274.14%631,3704.02%Subtotal6,408,52636.51%6,093,75038.78%Accrued interest46,9730.26%37,5800.24%Total loans17,554,322100.00%15,712,574100.00%InvestmentsThe Bank closely tracked domesti

253、c and overseas financial market dynamics,maintained investment activity at a reasonable pace and dynamically adjusted its portfolio structure.As at the end of 2022,the Group held investments of RMB6,445.743 billion,an increase of RMB281.072 billion or 4.56%compared with the prior year-end.Specifical

254、ly,the Groups RMB investments totalled RMB5,006.109 billion,an increase of RMB229.213 billion or 4.80%compared with the prior year-end,while foreign currency investments totalled USD206.707 billion,a decrease of USD10.959 billion or 5.03%compared with the prior year-end.The classification of the Gro

255、ups financial investment portfolio is shown below:Unit:RMB million,except percentagesAs at 31 December 2022As at 31 December 2021ItemsAmount%of totalAmount%of totalFinancial assets at fair value through profit or loss571,9608.87%561,6429.11%Financial assets at fair value through other comprehensive

256、income2,468,37538.30%2,389,83038.77%Financial assets at amortised cost3,405,40852.83%3,213,19952.12%Total6,445,743100.00%6,164,671100.00%2022 Annual Report34Management Discussion and Analysis Financial ReviewInvestments by Issuer TypeUnit:RMB million,except percentagesAs at 31 December 2022As at 31

257、December 2021ItemsAmount%of totalAmount%of total Debt securitiesIssuers in the Chinese mainlandGovernment3,382,60252.48%3,183,33251.64%Public sector and quasi-governments168,1822.61%164,7412.67%Policy banks609,8779.46%532,7838.64%Financial institutions411,9666.39%505,5778.21%Corporates249,7733.88%26

258、9,3454.37%China Orient Asset Management Corporation152,4332.36%152,4332.47%Subtotal4,974,83377.18%4,808,21178.00%Issuers in Hong Kong(China),Macao(China),Taiwan(China)and other countries and regionsGovernments685,78410.64%646,22110.48%Public sector and quasi-governments124,6371.93%100,0721.62%Financ

259、ial institutions207,9573.23%158,7402.58%Corporates132,7812.06%147,2092.39%Subtotal1,151,15917.86%1,052,24217.07%Equity instruments and others319,7514.96%304,2184.93%Total6,445,743100.00%6,164,671100.00%Note:“Equity instruments and others”includes accrual interest.Investments by CurrencyUnit:RMB mill

260、ion,except percentagesRMB5,006,109USD843,124HKD295,544Other300,966As at 31 December 202277.67%13.08%4.59%4.66%RMB4,776,896USD801,236HKD260,080Other326,459As at 31 December 202177.49%13.00%4.22%5.29%35Bank of China LimitedManagement Discussion and Analysis Financial ReviewTop Ten Financial Bonds by V

261、alue Held by the GroupUnit:RMB million,except percentagesBond NamePar ValueAnnual rateMaturity dateImpairment Allowance Bond issued by policy banks in 201916,6273.48%2029-01-08Bond issued by policy banks in 201915,1763.65%2029-05-21Bond issued by policy banks in 201812,9404.98%2025-01-12Bond issued

262、by policy banks in 202212,2002.82%2027-06-17Bond issued by policy banks in 201811,6574.88%2028-02-09Bond issued by policy banks in 201711,6504.39%2027-09-08Bond issued by policy banks in 201810,7304.73%2025-04-02Bond issued by policy banks in 201910,1453.75%2029-01-25Bond issued by policy banks in 2

263、0179,3084.04%2027-04-10Bond issued by policy banks in 20198,9813.74%2029-07-12Note:Financial bonds refer to debt securities issued by financial institutions in the bond market,including the bonds issued by policy banks,other banks and non-bank financial institutions,but excluding restructured bonds

264、and PBOC bills.Due to CustomersIn order to improve both the scale and pricing of its deposits,the Bank continuously accelerated product and service innovation,improved the building of scenario-based financial services ecosystems,enhanced its financial services offering and expanded the scale of cust

265、omers financial assets.It actively expanded key deposit products such as salary payment agency,cash management,quick payment service and social security cards,with the increment of domestic RMB deposits reaching a record high.By vigorously expanding demand deposits and reducing the scale of high-cos

266、t deposits such as structured deposits and negotiated deposits,the Bank achieved a decline in the interest rates paid out on its RMB deposits and continuously improved the development quality of its deposit business.As at the end of 2022,the Groups due to customers amounted to RMB20,201.825 billion,

267、an increase of RMB2,058.938 billion or 11.35%compared with the prior year-end.Specifically,the Groups RMB due to customers totalled RMB15,879.434 billion,an increase of RMB1,731.214 billion or 12.24%compared with the prior year-end,while its foreign currency due to customers stood at USD620.623 bill

268、ion,a decrease of USD5.923 billion or 0.95%compared with the prior year-end.an increase of11.35%The Groups due to customers2022 RMB20,201.825 billion2021 RMB18,142.887 billionRMB due to customersan increase of12.24%2022 RMB15,879.434 billion2021 RMB14,148.220 billiona decrease of0.95%Foreign currenc

269、y due to customers2022 USD620.623 billion2021 USD626.546 billion2022 Annual Report36Management Discussion and Analysis Financial ReviewThe principal components of due to customers of the Group and its institutions in the Chinese mainland are set out below:Unit:RMB million,except percentagesAs at 31

270、December 2022As at 31 December 2021ItemsAmount%of totalAmount%of total GroupCorporate depositsDemand deposits5,370,05726.58%5,275,51429.08%Time deposits4,462,32822.09%3,968,52721.87%Structured deposits328,6021.63%351,4451.94%Subtotal10,160,98750.30%9,595,48652.89%Personal depositsDemand deposits3,75

271、7,37318.60%3,487,43319.22%Time deposits5,384,03426.65%4,299,05023.70%Structured deposits255,2891.26%300,6281.66%Subtotal9,396,69646.51%8,087,11144.58%Certificates of deposits290,0821.44%160,4190.88%Others354,0601.75%299,8711.65%Total20,201,825100.00%18,142,887100.00%Chinese mainlandCorporate deposit

272、sDemand deposits4,614,93327.88%4,482,51630.06%Time deposits3,246,54919.62%2,892,99619.40%Structured deposits299,8391.81%320,0782.15%Subtotal8,161,32149.31%7,695,59051.61%Personal depositsDemand deposits3,097,56118.72%2,711,69318.19%Time deposits4,713,81028.48%3,920,10126.29%Structured deposits246,81

273、31.49%297,9352.00%Subtotal8,058,18448.69%6,929,72946.48%Others331,0272.00%285,4301.91%Total16,550,532100.00%14,910,749100.00%Note:“Others”is inclusive of accrued interest.37Bank of China LimitedManagement Discussion and Analysis Financial ReviewDue to Customers by GeographyUnit:RMB million,except pe

274、rcentagesAs at 31 December 2022As at 31 December 2021ItemsAmount%of totalAmount%of total Corporate depositsChinese mainland:RMB7,532,87837.29%6,949,08938.30%Foreign currency628,4433.11%746,5014.12%Hong Kong(China),Macao(China),Taiwan(China)and other countries and regions1,999,6669.90%1,899,89610.47%

275、Subtotal10,160,98750.30%9,595,48652.89%Personal depositsChinese mainland:RMB7,752,56538.38%6,635,79436.58%Foreign currency305,6191.51%293,9351.62%Hong Kong(China),Macao(China),Taiwan(China)and other countries and regions1,338,5126.62%1,157,3826.38%Subtotal9,396,69646.51%8,087,11144.58%Certificates o

276、f deposits290,0821.44%160,4190.88%Others354,0601.75%299,8711.65%Total deposits20,201,825100.00%18,142,887100.00%Note:“Others”includes accrued interest.Due to Customers by CurrencyUnit:RMB million,except percentagesRMB15,879,434USD2,028,393HKD1,360,104Other933,894As at 31 December 202278.60%10.04%6.7

277、3%4.63%RMB14,148,220USD1,765,005HKD1,311,343Other918,319 As at 31 December 202177.98%9.73%7.23%5.06%2022 Annual Report38Management Discussion and Analysis Financial ReviewLiability Quality ManagementThe Bank earnestly implemented regulatory requirements on liability quality management and continuous

278、ly improved its liability quality management system to support the development of its liability business.According to its business strategy,risk appetite,and overall business characteristics,the Bank effectively managed the source,structure,and cost of liabilities,with relevant indicators meeting in

279、ternal and external management requirements.By enhancing the expansion in customer deposits,strengthening internal and external pricing management,improving its market financing capabilities,and appropriately managing the level of mismatch in the terms and currencies of its liability business,the Ba

280、nk improved its liability quality management and achieved steady development of the Groups liability business.EquityAs at the end of 2022,the Groups total equity stood at RMB2,567.571 billion,an increase of RMB217.018 billion or 9.23%compared with the prior year-end.This was primarily attributable t

281、o the following factors:(1)In 2022,the Group realised a profit for the year of RMB237.504 billion,among which profit attributable to equity holders of the Bank amounted to RMB227.439 billion.(2)The Bank pushed forward its external capital replenishment projects in a proactive and prudent manner,succ

282、essfully issuing RMB50.0 billion of undated capital bonds.(3)As per the 2021 profit distribution plan approved at the Annual General Meeting,a cash dividend of RMB65.060 billion was paid out on ordinary shares.(4)The Bank paid a dividend on its preference shares of RMB5.187 billion and interest on u

283、ndated capital bonds of RMB8.233 billion.Please refer to the“Consolidated Statement of Changes in Equity”in the Consolidated Financial Statements for detailed information.Off-balance Sheet ItemsOff-balance sheet items include derivative financial instruments,contingent liabilities and commitments,et

284、c.The Group entered into various derivative financial instruments relating to foreign currency exchange rates,interest rates,equity,credit,precious metals and other commodities for trading,hedging,asset and liability management and on behalf of customers.Please refer to Note V.16 to the Consolidated

285、 Financial Statements for the contractual/notional amounts and fair values of derivative instruments.Contingent liabilities and commitments include legal proceedings and arbitrations,assets pledged,collateral accepted,capital commitments,operating leases,treasury bond redemption commitments,credit c

286、ommitments and underwriting obligations,etc.Please refer to Note V.41 to the Consolidated Financial Statements for detailed information on contingent liabilities and commitments.Cash Flow AnalysisAs at the end of 2022,the balance of the Groups cash and cash equivalents was RMB2,091.466 billion,an in

287、crease of RMB115.835 billion compared with the prior year-end.39Bank of China LimitedManagement Discussion and Analysis Financial ReviewIn 2022,net cash flow from operating activities was an outflow of RMB11.337 billion while it was an inflow of RMB843.258 billion compared with the prior year.This w

288、as mainly attributable to a net decrease in due to banks and other financial institutions as compared to a net increase in the prior year.Net cash flow from investing activities was an outflow of RMB22.242 billion,a decrease of RMB373.319 billion compared with the prior year.This was mainly attribut

289、able to an increase in proceeds from the disposal/maturity of financial investments compared with the prior year.Net cash flow from financing activities was an inflow of RMB53.047 billion,a decrease of RMB21.297 billion compared with the prior year.This was mainly attributable to an increase in repa

290、yments of debts issued compared with the prior year.Segment Reporting by GeographyFrom a geographical perspective,the Group operates in three principal regions:the Chinese mainland;Hong Kong(China),Macao(China)and Taiwan(China),and other countries and regions.From a business perspective,the Group pr

291、ovides financial services through six main business segments:corporate banking,personal banking,treasury operations,investment banking,insurance and other operations.A geographical analysis of profit contribution and related assets and liabilities is set forth in the following table:Unit:RMB million

292、Chinese mainlandHong Kong(China),Macao(China)and Taiwan(China)Other countries and regionsEliminationGroupItems2022202120222021202220212022202120222021 Net interest income401,927375,90640,06934,05318,38515,183297460,678425,142Non-interest income83,329105,13970,81672,8557,0085,129(2,692)(2,548)158,461

293、180,575Including:net fee and commission income58,70764,34010,48914,4804,2783,959(1,226)(1,353)72,24881,426Operating expenses(165,056)(163,673)(60,587)(57,445)(8,043)(7,843)2,4902,606(231,196)(226,355)Impairment losses on assets(89,983)(99,622)(11,360)(4,317)(2,650)(281)(103,993)(104,220)Profit befor

294、e income tax230,644218,52939,15645,84514,70012,1889558284,595276,620As at the year-endAssets23,377,60421,491,8464,969,6024,625,9242,347,2032,292,838(1,780,552)(1,688,200)28,913,85726,722,408Liabilities21,330,20219,607,6344,524,9594,230,2152,271,6152,222,113(1,780,490)(1,688,107)26,346,28624,371,855A

295、s at the end of 2022,total assets3 of the Banks Chinese mainland segment amounted to RMB23,377.604 billion,an increase of RMB1,885.758 billion or 8.77%compared with the prior year-end,representing 76.16%of the Groups total assets.In 2022,this segment recorded a profit before income tax of RMB230.644

296、 billion,an increase of RMB12.115 billion or 5.54%compared with the prior year,representing 81.07%of the Groups profit before income tax.3 Figures for segment assets,segment profit before income tax and their respective proportions are prior to intragroup elimination.2022 Annual Report40Management D

297、iscussion and Analysis Financial ReviewTotal assets of the Hong Kong(China),Macao(China)and Taiwan(China)segment amounted to RMB4,969.602 billion,an increase of RMB343.678 billion or 7.43%compared with the prior year-end,representing 16.19%of the Groups total assets.In 2022,this segment recorded a p

298、rofit before income tax of RMB39.156 billion,a decrease of RMB6.689 billion or 14.59%compared with the prior year,representing 13.76%of the Groups profit before income tax.Total assets of the other countries and regions segment amounted to RMB2,347.203 billion,an increase of RMB54.365 billion or 2.3

299、7%compared with the prior year-end,representing 7.65%of the Groups total assets.In 2022,this segment recorded a profit before income tax of RMB14.700 billion,an increase of RMB2.512 billion or 20.61%compared with the prior year,representing 5.17%of the Groups profit before income tax.Operating incom

300、e for the main business segments of the Group is set forth in the following table:Unit:RMB million,except percentages20222021ItemsAmount%of totalAmount%of total Commercial banking business559,32190.34%528,04187.17%Including:Corporate banking223,38136.08%203,65433.62%Personal banking245,65339.68%216,

301、45035.73%Treasury operations90,28714.58%107,93717.82%Investment banking and insurance42,9056.93%45,1227.45%Others and elimination16,9132.73%32,5545.38%Total619,139100.00%605,717100.00%Please refer to Note V.44 to the Consolidated Financial Statements for detailed information related to the Groups ot

302、her operating results and financial position in terms of its geographic segment and business segments categories.Critical Accounting Estimates and JudgementsThe accounting estimates and judgements made by the Group will generally affect the carrying amounts of assets and liabilities of the next fina

303、ncial year.These estimates and judgements are continually evaluated and are based on historical experience,expectations of future events that are believed to be reasonable under the circumstances and other factors.The management believes that the accounting estimates and judgements have properly ref

304、lected the Banks operating environment.Please refer to Notes II and III to the Consolidated Financial Statements for detailed information related to the Banks accounting policies and accounting estimates.41Bank of China LimitedManagement Discussion and Analysis Financial ReviewFair Value Measurement

305、Movement of Financial Instruments Measured at Fair ValueUnit:RMB millionItemsAs at 31 December 2022As at 31 December 2021Change Due from and placements with banks and other financial institutions at fair value12,33312,333Financial assets at fair value through profit or loss Debt securities357,320356

306、,462858 Equity instruments112,217102,2689,949 Fund investments and other102,423102,912(489)Loans and advances to customers at fair value587,256355,600231,656Financial assets at fair value through other comprehensive income Debt securities2,441,1742,363,07878,096 Equity instruments and other27,20126,

307、752449Derivative financial assets152,03395,79956,234Derivative financial liabilities(135,838)(89,151)(46,687)Due to and placements from banks and other financial institutions at fair value(162)162Due to customers at fair value(36,701)(31,311)(5,390)Bonds issued at fair value(2,080)(317)(1,763)Financ

308、ial liabilities held for trading(53,868)(12,458)(41,410)The Bank has put in place a sound internal control mechanism for fair value measurement.In accordance with the Guidelines on Market Risk Management in Commercial Banks,the Regulatory Guidelines on Valuation of Financial Instruments in Commercia

309、l Banks,CAS and IFRS,with reference to the New Basel Capital Accord,and drawing on the best practices of leading international banks regarding valuations,the Bank formulated the Valuation Policy of Financial Instrument Fair Values of Bank of China Limited to standardise the fair value measurement of

310、 financial instruments and enable timely and accurate financial information disclosure.Please refer to Note VI.5 to the Consolidated Financial Statements for detailed information related to fair value measurement.Other Financial InformationThere are no differences in the equity and profit for the ye

311、ar of the Group prepared in accordance with IFRS to those prepared in accordance with CAS.Please refer to Supplementary Information I to the Consolidated Financial Statements for detailed information.2022 Annual Report42Management Discussion and AnalysisBusiness ReviewOverview of Key Business 43 Tec

312、hnology Finance Green Finance Inclusive Finance Cross-Border Finance Consumer Finance Wealth Finance Supply Chain Finance County-level FinanceCommercial Banking in the Chinese Mainland 55 Corporate Banking Personal Banking Financial Markets Business Village BankGlobalised Operation 70 Corporate Bank

313、ing Personal Banking Financial Markets Business Clearing Business Digital Transformation and Online Service Channels Management for Business Continuity BOCHKComprehensive Operation 78 Investment Banking Business Asset Management Business Insurance Investment Business Leasing Business Consumer Financ

314、e Financial TechnologyService Channels 85 Online Channels Offline ChannelsInformation Technology Development 8743Bank of China LimitedManagement Discussion and Analysis Business ReviewIn 2022,the Bank earnestly executed the national decisions and plans,pushing forward the implementation of its 14th

315、Five-Year Plan while serving the overall development of the country and helping to stabilise the overall economic situation,and its strategy has been successfully implemented.Adhering to its original as-piration of serving the real economy,the Bank continued to apply the new development philosophy f

316、ully,faithfully and in all felds of endeavour.It also took necessary steps to deepen supply-side structural reform in the fnancial sector and pushed forward the in-depth development of key businesses.The Bank contrib-uted to the positive interplay between domestic circulation and international circu

317、lation within the nations new development pattern and improved the quality and effciency of its service to the real economy.To embrace the digital era,it intensifed the application of various technologies such as big data,cloud com-puting,artifcial intelligence,block-chain and 5G mobile communicatio

318、ns,as part of its efforts to accelerate digital transformation.Firmly adopting bottom-line thinking,the Bank made efforts to advance its compre-hensive risk management,build a stronger line of defence against risks,and mitigate risks and challenges,thus continuously improving the effciency of its co

319、mprehensive risk management.Overview of Key Businesses2022 Annual Report44Management Discussion and Analysis Business ReviewTo better align with the goal of making China a global leader in science and technology,the Bank has been committed to serving as an all-elements integrator,a full-chain innova

320、tor and a full-cycle provider of technology finance,with the aim of becoming the leading bank for technology finance in the new development stage.Improving the product and service systemThe Bank conducted in-depth research on high-tech industries,clarified the key customers of technology finance,exp

321、lored innovative business modes for credit granting and implemented differentiated risk management systems,thus improving the financing experience for technological enterprises.It developed exclusive evaluation model and optimised its method of risk assessment.It developed unique products for scient

322、ific and technological innovation,provided featured products and services such as option loans and intellectual property pledge financing for technology enterprises.The Bank built a comprehensive spectrum of financial products,launched an information platform for technology finance,and facilitated h

323、igh-quality business linkages between commercial and investment banks,providing full-lifecycle services for technological enterprises.Continuing to deepen cooperation with governmentsThe Bank has deepened strategic cooperative relations with the Ministry of Science and Technology(“MST”),the Ministry

324、 of Industry and Information Technology,China National Intellectual Property Administration and China Association for Science and Technology.It also jointly released an Action Plan for Assisting Enterprises Innovation through FinTech and“One Mainstay,Two Engines”with Torch High Technology Industry D

325、epartment Centre of the MST,with the aim of promoting innovation-driven high-quality development in various aspects,including collaborative efforts to support the nations strategic strengths in science and technology,deepen the service system for“specialised,refined,featured and innovative”enterpris

326、es and increase the application of scientific and technological achievements.Technology FinanceIntensifying comprehensive supportThe Bank promoted transformation across its technology finance business,expanding its client base from mature corporates to businesses in the start-up and growth stage,evo

327、lving its available products from bank credit to comprehensive financial services,and refining its risk system from traditional modes to become more adaptive to scientific and technological innovation.As at the end of 2022,comprehensive technology finance support exceeded RMB1.45 trillion,including

328、over RMB1 trillion of credit support4 to nearly 50,000 customers,more than RMB120 billion of capital input such as equity investment,bond investment and leasing,and more than RMB330 billion of non-capital input such as undertakings and asset management.The number of outlets offering technology finan

329、ce services grew to 184.4 Including national high-tech enterprises and technology-based small and medium-sized enterprises.$BANKComprehensive technology fnance(RMB trillion)Customers receiving credit supportOutlets offering technology fnance services1.4550,00018445Bank of China LimitedManagement Dis

330、cussion and Analysis Business ReviewAs a signatory to the United Nations Principles for Responsible Banking,the Bank is committed to the mission of“Bridge China and the World for the Common Good”,firmly supports sustainable development,and promotes the realisation of the“carbon peaking and neutralit

331、y”with financial strength.In strict adherence with the national decision and plan of“carbon peak and carbon neutrality”,the Bank fully implemented the Green Finance Guidelines for Banks and Insurers issued by CBIRC and its green development strategy,optimised its green finance governance structure,a

332、nd improved supporting measures for green finance,with the goal of becoming the first-choice bank for green finance.As a result,it achieved rapid and sound progress in green finance.Rapid growth in green creditAs at the end of 2022,the Banks domestic green credit balance5 reached RMB1,987.2 billion,

333、a year-on-year increase of 41.08%.The Bank participated in benchmark green projects with international influence,supported the worlds largest offshore wind power project currently under construction,ranking first among Chinese banks on Bloombergs“Global Green Loans”and“Global Sustainability-Linked Loans”lists.5 The balance of green credit is based on CBIRC statistic standard.A leading position in