A Century of Services Always With
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Stock Code: 2388 Annual Report 2016 BOC Hong Kong (Holdings) Limited (“the Company”) was incorporated in Hong Kong on 12 September 2001 to hold the entire equity interest of Bank of China (Hong Kong) Limited (“BOCHK”), its principal operating subsidiary. Bank of China Limited (“BOC”) holds approximately 66.06% of the equity interest in the Company through BOC Hong Kong (BVI) Limited, an indirect wholly-owned subsidiary of BOC. The Company began trading on the main board of the Stock Exchange of BOC Hong Kong (Holdings) Limited Kong (Holdings) BOC Hong Hong Kong on 25 July 2002 and is one of the largest listed companies and commercial banking groups in Hong Kong, with stock code “2388” and ADR OTC Symbol: “BHKLY”. BOCHK has strong market positions in all major businesses. We have the most extensive local branch network and diverse service platforms, including 197 branches, efficient e-channels of over 1,000 self- service machines, as well as Internet and mobile banking services. We offer a comprehensive range of financial, investment and wealth management services to personal, corporate and institutional customers. To implement the overseas development strategy of BOC Group, we strive to drive the regional development and expand our business in the Southeast Asian region. In accordance with the strategic plan of BOC Group, through the acquisition of BOC’s institutions in Southeast Asia, and the 24/F Bank of China Tower, 1 Garden Road, Hong Kong opening of the Brunei Branch, we have been expanding our market to the Southeast Asian region and www.bochk.com transforming into a regional bank. BOCHK is one of the three note-issuing banks and the Clearing Bank for Renminbi business in A Century of Services Hong Kong. With our strong RMB franchise, we are the first choice for customers in this business. Annual Report 2016 Through the deep collaboration with our parent bank, BOC, we provide a full range of high quality Always with You cross-border services to multinationals, cross-border customers, Mainland enterprises going global, central banks and super-sovereign organisations. As a mainstream bank as well as an integrated and regional financial group with roots firmly planted in Hong Kong for 100 years, we are committed to fulfilling our social responsibilities to promote sustainable development and create greater value for our customers, shareholders, employees and the community. Stock Code: 2388 Annual Report 2016 BOC Hong Kong (Holdings) Limited (“the Company”) was incorporated in Hong Kong on 12 September 2001 to hold the entire equity interest of Bank of China (Hong Kong) Limited (“BOCHK”), its principal operating subsidiary. Bank of China Limited (“BOC”) holds approximately 66.06% of the equity interest in the Company through BOC Hong Kong (BVI) Limited, an indirect wholly-owned subsidiary of BOC. The Company began trading on the main board of the Stock Exchange of BOC Hong Kong (Holdings) Limited Kong (Holdings) BOC Hong Hong Kong on 25 July 2002 and is one of the largest listed companies and commercial banking groups in Hong Kong, with stock code “2388” and ADR OTC Symbol: “BHKLY”. BOCHK has strong market positions in all major businesses. We have the most extensive local branch network and diverse service platforms, including 197 branches, efficient e-channels of over 1,000 self- service machines, as well as Internet and mobile banking services. We offer a comprehensive range of financial, investment and wealth management services to personal, corporate and institutional customers. To implement the overseas development strategy of BOC Group, we strive to drive the regional development and expand our business in the Southeast Asian region. In accordance with the strategic plan of BOC Group, through the acquisition of BOC’s institutions in Southeast Asia, and the 24/F Bank of China Tower, 1 Garden Road, Hong Kong opening of the Brunei Branch, we have been expanding our market to the Southeast Asian region and www.bochk.com transforming into a regional bank. BOCHK is one of the three note-issuing banks and the Clearing Bank for Renminbi business in A Century of Services Hong Kong. With our strong RMB franchise, we are the first choice for customers in this business. Annual Report 2016 Through the deep collaboration with our parent bank, BOC, we provide a full range of high quality Always with You cross-border services to multinationals, cross-border customers, Mainland enterprises going global, central banks and super-sovereign organisations. As a mainstream bank as well as an integrated and regional financial group with roots firmly planted in Hong Kong for 100 years, we are committed to fulfilling our social responsibilities to promote sustainable development and create greater value for our customers, shareholders, employees and the community. Theme In 2016, the Group delivered another year of record results, A Century of Services with improved profitability and further progress achieved in the implementation of our strategic plans. As we continue to develop our business in Southeast Asia, we are opening a new chapter in our Always with You transformation from a local bank into a regional bank. The year 2017 marks the centenary of Bank of China’s service to Hong Kong. To mark this special occasion, we have developed the theme — A Century of Services, Always with You — for this year’s annual report. Our centennial logo on the cover, with the landmark Bank of China Tower and the two circles symbolising the globe, represents our 100 years of history in Hong Kong. The silk ribbon around the globe stands for our oriental origins, our customer-centric culture, commitment to excellence and global service capabilities. To illustrate the growth and prosperity we have enjoyed together with Hong Kong over the past century, we have presented photos depicting our history on the gatefold cover of this report. Our centennial year represents the beginning of a new era for the Group. In the years ahead, we will adhere to our strategic goal of Serving Society, Delivering Excellence and will capture new opportunities arising from major national strategic initiatives to continue the Group’s sustainable development. We will remain committed to creating greater value for our stakeholders and building a brighter future together with, and for, Hong Kong. Be environmentally friendly for our better future This annual report is printed on elemental chlorine free paper with varnishing, an environmentally friendly technique, on the cover. We strive to protect the environment and undertake corporate citizenship for the betterment of our future generations. Theme In 2016, the Group delivered another year of record results, A Century of Services with improved profitability and further progress achieved in the implementation of our strategic plans. As we continue to develop our business in Southeast Asia, we are opening a new chapter in our Always with You transformation from a local bank into a regional bank. The year 2017 marks the centenary of Bank of China’s service to Hong Kong. To mark this special occasion, we have developed the theme — A Century of Services, Always with You — for this year’s annual report. Our centennial logo on the cover, with the landmark Bank of China Tower and the two circles symbolising the globe, represents our 100 years of history in Hong Kong. The silk ribbon around the globe stands for our oriental origins, our customer-centric culture, commitment to excellence and global service capabilities. To illustrate the growth and prosperity we have enjoyed together with Hong Kong over the past century, we have presented photos depicting our history on the gatefold cover of this report. Our centennial year represents the beginning of a new era for the Group. In the years ahead, we will adhere to our strategic goal of Serving Society, Delivering Excellence and will capture new opportunities arising from major national strategic initiatives to continue the Group’s sustainable development. We will remain committed to creating greater value for our stakeholders and building a brighter future together with, and for, Hong Kong. Be environmentally friendly for our better future This annual report is printed on elemental chlorine free paper with varnishing, an environmentally friendly technique, on the cover. We strive to protect the environment and undertake corporate citizenship for the betterment of our future generations. Our Vision is to be Contents Your Premier Bank Financial Highlights 2 Five-Year Financial Summary 3 Our Mission is to Chairman’s Statement 4 Chief Executive’s Report 8 customer satisfaction and provide quality Build and professional service Management’s Discussion and Analysis 14 Corporate Information 54 rewarding career opportunities and Offer cultivate staff commitment Board of Directors and Senior Management 55 Report of the Directors 64 values and deliver superior returns to Create shareholders Corporate Governance 70 Investor Relations 92 Our Core Values are Corporate Social Responsibility 100 Awards and Recognition 112 Social We care for and contribute to Contact Us 116 our communities Responsibility Financial Section 117 Appendix – Subsidiaries of the Company 312 We measure results and Performance reward achievement Definitions 314 We uphold trustworthiness Integrity and business ethics We cherish every Respect individual Innovation We encourage creativity We work together to Teamwork succeed Combining the initials of mission and core values, we have BOC SPIRIT BOC Hong Kong (Holdings) Limited Annual