China CITIC Bank Corporation Limited Important Notice The Board of Directors, the Board of Supervisors, (A joint stock limited company incorporated directors, supervisors and senior management members of the Bank guarantee that the information in the People’s Republic of China with limited liability) contained in this annual report does not include any false records, misleading statements or material Stock Code: 0998 omissions, and assume several and joint liabilities for its truthfulness, accuracy and completeness. The meeting of the Board of Directors of the Bank adopted the full text and summary of the Bank’s 2017 Annual Report on 26 March 2018. All of the 10 eligible directors attended the meeting. The supervisors of the Bank attended the meeting as non-voting delegates. The 2017 annual financial reports that the Bank prepared in accordance with the PRC Accounting Standards and the International Financial Reporting Standards (IFRS) were audited respectively by PricewaterhouseCoopers Zhong Tian LLP and PricewaterhouseCoopers in accordance with the auditing standards of mainland China and Hong Kong SAR respectively, with both firms producing an audit report with a standard unqualified audit opinion. Ms. Li Qingping as Chairperson of the Board of Directors, Mr. Sun Deshun as President of the Bank, Mr. Fang Heying as Vice President and concurrently Chief Financial Officer of the Bank and Ms. Li Peixia as 2017 Annual Report General Manager of the Finance and Accounting Department of the Bank hereby guarantee the truthfulness, accuracy and completeness of the financial report contained in the Bank’s 2017 Annual Report. Profit Distribution Plan: Chapter 9 “Report of Board of Directors – Profit and Dividend Distribution” of this report discloses the Bank’s Profit Distribution Plan for 2017 as reviewed and adopted by the Board of Directors and to be submitted to the 2017 Annual General Meeting for deliberation. The plan proposes to pay a cash dividend of RMB2.61 per 10 shares (before tax). No scheme for transfer of capital reserve to share capital will be applied for the current year. Cautionary note on forward-looking statements: Forward-looking statements such as future plans and development strategies contained in this report do not constitute substantive commitments of the Bank to its investors. Investors and relevant persons are kindly reminded to maintain adequate risk awareness of such statements and understand the differences between plans, forecasts and commitments. Material risk reminder: During the reporting period, the Bank was not aware of any material risk that would adversely affect its future development strategies and business targets. The Bank has detailed in this report the major risks that it was and may be exposed to in its operation and management and its countermeasures thereof. For relevant information Strive to Be the Company offering thereof, please refer to “Risk Management” and “Outlook” in Chapter 8 “Management Discussion the Best Comprehensive Financial Services and Analysis” of the report. The terms the “Bank”, the “Company”, “CITIC Bank”, “China CITIC Bank” and “CNCB” as mentioned in the report all refer to China CITIC Bank Corporation Limited; and the term the “Group” refers to China CITIC Bank Corporation Limited and its subsidiaries. For the purpose of this report, numbers are expressed 2017 in Renminbi (RMB) unless otherwise specially stated. The report is compiled both in Chinese and English. Address : No.9 Chaoyangmen Beidajie, Dongcheng District, Beijing Should there be any discrepancy between the Postal Code : 100010 Chinese and English versions, the Chinese version Annual Report shall prevail. Investor Hotline : +86-10-85230010 Website : www.citicbank.com Corporate Introduction China CITIC Bank was founded in 1987. It is one of the earliest emerging commercial banks established during China’s reform and opening up and also China’s first commercial bank participating in financing at both domestic and international financial markets. A keen contributor to China’s economic development, the Bank is renowned at home and abroad for brushing numerous track records in the modern Chinese financial history. In April 2007, the Bank simultaneously listed its A + H shares at the Shanghai Stock Exchange and The Stock Exchange of Hong Kong Limited. The Bank aspires to become “the enterprise offering the best comprehensive financial services”. To attain this development vision, the Bank fully leverages on the unique competitive advantages of CITIC Group in placing financial and non-financial businesses on an equal footing, and at the same time holds firm to its “customer orientation” and adheres to the business concept of “safe CITIC Bank, compliant operation, science and technology for growth, serving the real economy, market orientation and value creation”. To corporate customers and institutional customers, the Bank offers integrated financial solutions in corporate banking business, international business, financial markets business, institutional banking business, investment banking business, factoring business and custody business. For individual customers, the Bank provides diversified financial products and services in retail banking, credit card, consumer finance, wealth management, private banking, going abroad finance and e-banking. As such, the Bank satisfies the needs of corporate, institutional and individual customers for comprehensive financial services on all fronts. As at the end of 2017, the Bank had 1,435 outlets in 142 large and medium-sized cities in China and 5 affiliated institutions including CITIC International Financial Holdings Corporation Limited (“CIFH”), CNCB (Hong Kong) Investment Co., Ltd., CITIC Financial Leasing Co., Ltd., Zhejiang Lin’an CITIC Rural Bank Limited and CITIC aiBank Corporation Limited. CITIC Bank International Limited (“CNCBI”), a subsidiary of CIFH, had 41 outlets in Hong Kong SAR, Macau SAR, New York, Los Angeles, Singapore and mainland China. CITIC aiBank Corporation Limited, a joint venture co-sponsored by the Bank and Baidu, became the first independent legal entity practicing direct banking in China. In addition, the Bank concluded equity transaction agreements with JSC Halyk Bank of Kazakhstan and other relevant parties, the first Chinese joint-stock bank to acquire a bank in Kazakhstan. 2017 was a landmark year for the Bank, marking its 30th anniversary. Over the three decades, the Bank has persevered in serving the real economy, engaging in stable healthy business operation and keeping abreast with the times. Thriving through 30 years’ growth and expansion, the Bank has become a financial conglomerate with strong comprehensive competitiveness and powerful brand influence, registering more than RMB5 trillion total assets and nearly 60,000 employees. In 2017, The Banker magazine of the United Kingdom rated the Bank the 22nd on its list of the “Top 500 Global Bank Brands”, the 25th on its list of the “Top 1,000 World Banks” in terms of tier-one capital, and the 2017 “Bank of the Year in China”. CITIC Bank was the exclusive bank winner of the latter honor in mainland China. Contents Chapter 1 Definitions 2 Chapter 2 Corporate Introduction 4 Chapter 3 Financial Highlights 6 Chapter 4 Chairperson’s Letter to Shareholders 10 Chapter 5 President’s Letter to Shareholders 16 Chapter 6 Honors 22 Chapter 7 Business Summary 24 Chapter 8 Management Discussion and Analysis 27 Overview of the External Macro Environment 27 and the Bank’s Operating Results Analysis of the Financial Statements 29 Business Overview 46 Risk Management 69 Capital Management 88 Material Investments, Material Acquisitions 89 and Disposal and Restructuring of Assets Information about Structured Vehicles 89 Controlled by the Bank Outlook 89 Management of Corporate Social Responsibility 91 Chapter 9 Report of Board of Directors 92 Chapter 10 Changes in Ordinary Share Capital and 111 Information on Ordinary Shareholders Chapter 11 Preference Shares 120 Chapter 12 Directors, Supervisors, Senior Management 123 Members, Staff and Affiliates Chapter 13 Corporate Governance Report 139 Chapter 14 Independent Auditor’s Report and Financial Report 161 Chapter 15 Reference for Shareholders 293 Chapter 16 Corporate Structure 296 Chapter 17 List of Affiliates, Subsidiaries and Joint Ventures 297 Chapter 1 Definitions Articles of Association Articles of Association of China CITIC Bank Corporation Limited Auditors PricewaterhouseCoopers Zhong Tian LLP and PricewaterhouseCoopers Bank/Company/China CITIC Bank/CITIC China CITIC Bank Corporation Limited Bank/CNCB BBVA Banco Bilbao Vizcaya Argentaria S.A. BFAE Binhai (Tianjin) Financial Assets Exchange Company Limited Board of Directors Board of Directors of the Bank Board of Supervisors Board of Supervisors of the Bank CBRC China Banking Regulatory Commission Central Bank/PBOC The People’s Bank of China China Securities China Securities Co., Ltd. China Tobacco China Tobacco Corporation CIAM CITIC International Assets Management Limited CIFH CITIC International Financial Holdings Limited CITIC aiBank CITIC aiBank Corporation Limited CITIC Cloud Network CITIC Cloud Network Co., Ltd. CITIC Corporation Limited CITIC Corporation Limited (formerly known as CITIC Limited prior to renaming in August 2014) CITIC Financial Leasing CITIC Financial Leasing Co., Ltd. CITIC Group CITIC Group Corporation Limited (formerly known as CITIC Group Corporation prior to renaming in December 2011) CITIC Limited CITIC Limited (formerly known as CITIC Pacific Limited prior to renaming