Hong Kong, 25 March 2009 – Industrial and Commercial Bank of China Limited ("ICBC" or the "Bank", SSE: 601398; SEHK: 1398) today announces its annual results for the financial year 2008. Based on International Financial Reporting Standards, ICBC's profit after tax for the year ended 31 December 2008 was RMB 111.2 billion, up 35.2% from the year 2007. Earnings per share were RMB 0.33. This has been the sixth consecutive year of high growth since 2003. During these six years, the compound annual growth rate of after tax profit was 37.5%, making ICBC one of the world's fastest growing major international banks. In 2008, ICBC strengthened its position as the world's largest bank by market value and became the most profitable bank in the world.

Despite the complex and constantly changing operating environment in 2008, ICBC achieved exceptional returns for its shareholders through its continual efforts in strategic transformation of business operations and innovative development of its business. In 2008, ICBC's return on average total assets reached 1.21%, up 19 basis points from 2007. Return on weighted average equity was 19.43%, up 320 basis points from 2007. Net interest margin reached 2.95%, up 15 basis points from 2007. The Bank continued to effectively control cost, with its cost-to-income ratio decreasing by 5.18 percentage points from 2007 to 29.84%. Capital adequacy ratio was maintained at 13.06%, while core capital adequacy ratio was 10.75%. The strong capital position ensured the bank's sustained development capability. The Board proposed a final dividend of RMB 1.65 per 10 shares (including tax), an increase of 24.06% over 2007.

For all the challenges from the global financial crisis, ICBC still recorded a strong set of results, which was primarily attributable to the Bank's winning business strategy and risk management capabilities. ICBC prides itself on the most comprehensive, complete and advanced risk management system in China's banking industry. The Bank is also a leader among its peers in terms of establishing the system for the internal rating-based system. ICBC's non-retail internal rating-based system has met the requirements for an advanced system and has been in use in areas including credit approval, risk pricing and portfolio management. ICBC closely monitored the development of the international financial crisis and its potential impact on the business. Relevant risks, especially those associated with foreign bonds, were effectively controlled. Since 2008, ICBC has promptly adjusted its investment strategy according to the situation in the international financial markets, substantially reduced the holdings of foreign currency bonds and has made sufficient provisions for foreign bonds. As at the end of 2008, the Bank's non-performing loans (NPL) decreased by RMB 7.3 billion from the end of 2007, and the NPL ratio dropped by 0.45 percentage points to 2.29%, which marked 2008 as the ninth consecutive year when the Bank achieved declines in both NPL balance and ratio. Allowance to NPL ratio increased by 26.65 percentage points to 130.15%, further enhancing the Bank's ability to withstand risks.

Rapid and healthy development of the Bank's business resulted in outstanding business performance in 2008. During the year, ICBC aligned the role of supporting the economic development of China with the business principles of a commercial bank and adjusted its lending policies according to the government's macro tightening policy and the central bank's monetary policy in a timely manner. The Bank proactively and prudently increased lending, resulting in higher profitability, while at the same time supporting the government's policy of expanding domestic demand. In 2008, ICBC's new renminbi loans reached RMB 536.8 billion, an increase of RMB 190.1 billion or 14.3% from 2007, the highest level of new loans in the industry.

Meanwhile, ICBC leveraged its strong customer base, extensive distribution network and diversified product structure to further develop its intermediary business in a varied and innovative manner. In 2008, the Bank's net fee and commission income reached RMB 44 billion, an increase of 14.7% from 2007. The Bank achieved rapid and healthy growth in the emerging business areas including bank cards, investment banking, asset custody, annuity, cash management and wealth management, with market leading performance in these areas. ICBC's bank cards in issue exceeded 238 million with consumption volume close to RMB 800 billion. This included over 39 million credit cards in issue whose consumption volume surpassed RMB 250 billion, reinforcing the Bank's market leading position. Income of investment banking business increased by 78.2%. The Bank underwrote 52 bond issues during the year, with a total value of RMB 164.6 billion underwritten, becoming the largest domestic bond underwriter for the second consecutive year. Income of the Bank's asset custody business increased by 41%, with the largest asset under custody for the 11th consecutive year. The Bank has also maintained its leading position in various areas of asset custody business, including investment funds, annuity and insurance. The Bank has a market share of almost 50% in the domestic annuity market, and is the biggest annuity service provider in Mainland China. The rapid growth of wealth management business continued during the year, with 216 products being introduced. In 2008, sales of the Bank's own wealth management products reached RMB 2197.6 billion, an increase of 715% from 2007.

The considerable improvement in service quality facilitated the Bank's business development and enhanced its profitability. During the year, ICBC adhered to a modern "customer centred" service approach and improved service quality in aspects including distribution channel, business process, IT system and product innovation. The Bank also leveraged the opportunity of the "Olympics Service Year" to enhance its service quality and contributed to the success of the Beijing Olympics by achieving a record of "no incidents" and "no complaints". To meet the increasing demand for diversified financial services, ICBC launched its private banking service during the year and established 110 Wealth Management Centres and close to 3,000 VIP Wealth Management Centres. In addition, the Bank upgraded a large number of outlets and further enhanced its electronic banking service network. A customer service system based on customer classification and service has been established. The Bank also launched its customer experience enhancement programme to improve service efficiency and enable the Bank to provide targeted and differentiated services. At the same time, ICBC adhered to the strategy of development through acceleration of innovation. Leveraging its advanced information technology platform, the Bank accelerated product development. Currently, the Bank offers more than 3,000 financial products, and has become the bank with the largest number and types of financial products in Mainland China.

The continual transformation in ICBC's models of business operation and development resulted in substantial improvement in its operating efficiency and significantly improved its capability of sustainable development. In 2008, ICBC made further adjustments to its business operation and optimised its business structure. In terms of asset structure, the percentage of non-credit assets increased to 54.5%. In terms of income structure, the proportion of non-interest income in total operating income increased to 15.2%. Structure of the Bank's lending business also improved, resulting in a 96-basis-point increase in loan yields, from 6.11% in 2007 to 7.07% in 2008. In terms of distribution channels, the percentage of off-counter business increased to 43.1%. In terms of the structure of ICBC's customer base, the number of mid-to-high end personal banking customers increased by 18.6% over last year and the contribution from this segment to the Bank's profit also increased. With regard to the Bank's overseas expansion and business diversification, ICBC's overseas branches in New York, Sydney and Doha, and its subsidiary bank ICBC Middle East, were opened in 2008. In addition, ICBC International Capital Ltd. received its investment banking license in 2008. As at the end of 2008, the Bank has expanded its overseas network to 15 countries and regions around the world, including 134 branches and subsidiary banks. It has also established a corresponding bank relationship with 1,358 banks in 122 countries and regions, turning into a new chapter of the Bank's overseas expansion and diversified operation.

As a major financial enterprise, ICBC earnestly carried out its corporate social responsibility, whilst providing sound returns to shareholders and superb financial services to customers. After the devastating earthquake in Wenchuan, ICBC offered quality financial services and timely quake-relief assistance to the affected region. ICBC was also the bank that provided the most donations and relief-related loans to the region. The Bank granted a total of RMB 28.8 billion of loans for disaster relief and for the resumption of economic activities. Its donation to the region totalled RMB 140 million, including RMB 88.69 million from the Bank's staff. To weather the challenges posed by the financial crisis, ICBC, in accordance to business principles of commercial banks, provided financial support to companies with sound fundamentals but were encountering short-term difficulties. ICBC has also dedicated great efforts to the implementation of the "Green Credit Policy" by limiting loans to high energy consumption and highly polluting industries and by providing more support to energy-saving and environmentally-friendly industries. As at the end of 2008, over 99% of the total loans granted by the Bank and of the companies that received loans from the Bank complied with the national environmental protection policy. The remaining 1% of the companies that received loans from the Bank were those that have not yet received certifications from the relevant environmental protection authorities.