Preparation Explanation Table of Contents

The 2017 Corporate Social Responsibility Report of CITIC Bank Corporation Limited is hereinafter referred to as “the Report”. China CITIC Bank Corporation Limited is hereinafter referred to as “the Bank”. China CITIC Bank Corporation Limited and its subsidiaries are hereinafter referred to as “the Group” 1. The subsidiaries of China CITIC Bank Corporation Limited include: Zhejiang Lin’an CITIC Rural Bank, CITIC Financial Leasing Co., Ltd., CITIC International Financial Holdings Limited, China CITIC Bank ( Kong) Investment Limited (formerly known as “China Investment and Finance Limited”) and CITIC aiBank Corporation Limited. Preparation Basis The basis for preparation of the Report includes the Opinions on Strengthening Social Responsibilities of Banking Financial Institutions promulgated by the China Banking Regulatory Commission (“CBRC” hereinafter), the SSE Guidelines on Environmental Information Disclosure of Listed Companies, Guidelines on Preparation of Report on Company’s Fulfillment of Social Responsibilities and relevant notifications released by the SSE. The Report was prepared in accordance with the index systems as detailed in the Guide of Report on Sustainable Development (4th Version) (G4) issued by the Global Reporting Initiative (“GRI” hereinafter) and ISO14064-1. The Report was prepared with reference made to the Guidelines on Corporate Social Responsibilities of Banking Financial Institutions promulgated by the China Banking Association (“CBA” hereinafter) and GB/T36001-2015 Guide on the Preparation of Social Responsibilities Report. Preparation Method The work process related to preparation of the Report was based on the Measures of China CITIC Bank for Management of Social Responsibility Reporting and work approach was based on the Information Management System for Social Responsibility Reporting of the 02 Chairperson’s Chapter 1 Chapter 5 Bank. Statement Strategy and Management Employees and Culture Information about the Board of Directors, the Board of Supervisors, corporate governance and risk management information and financial 04 President’s Statement 13 Fruitful Strategy Implementation 59 Basic Profile of Employees data in the Report were sourced from the 2017 Annual Report (A Share) of the Group. For the purpose of the Report, denomination 15 Improvement and Upgrading of Corporate 60 Basic Staff Welfare Programs currency is “” and “as at the end of the year, as at the end of the reporting period” refers to “as at 31 December 2017”. 06 The Group’s Profile Cultural System 61 Equal Pay for Equal Work The reporting period of the data and statements disclosed in the Report is identical with those of the Report (unless otherwise specified). 15 Effective Building of Corporate Culture 07 Key Performance 61 Improved Assessment Mechanism Methodologies for collection of data, statements and cases disclosed in the Report are made through the online information management 17 Enhanced Awareness of the Corporate Indicators 61 Career Planning for Employees system. All data mentioned in the Report relating to the previous reporting period are basically consistent with those disclosed in the Social Responsibility (CSR) Philosophy previous report of the Bank. In the event of data adjustment, explanations thereof are provided in corresponding sections of the Report. 61 Caring Physical and Mental Health 08 Ten-year Development 18 Identification of Key CSR Topics 62 Protection of the Legitimate Rights and The Report was written in the Simplified Chinese. The English version was translated based on the Simplified Chinese version. In case of of the Corporate 18 Enhancement of CSR Communication any discrepancies among the versions, the Simplified Chinese version shall prevail. Social Responsibility Interests of Employees 21 Strengthening of CSR Management 64 Enhanced Vocational Training Preparer of the Report Report 65 Caring for Employees’ Lives The Report was prepared by the Culture, Labor Union Office & Security Department of China CITIC Bank Corporation Limited located in Chapter 2 Corporate Governance and Risk Control No.9 Chaoyangmen Beidajie, Dongcheng District, . Annexes Chapter 6 Reporting Period 23 Improvement of Corporate Governance 84 Corporate Structure Public Benefit and Charity The reporting period, as covered by the Report, ranges from 1 January 2017 to 31 December 2017 (unless otherwise specified), 29 Strengthening Risk Management coinciding with that of the annual report. The time ranges of the statistics regarding the statements, data and cases of the Group/the 85 Outlet Map 67 Enthusiastic Return to the Society Bank as mentioned in the Report coincide with those of the Report. 86 Honors Chapter 3 69 Implementing Precision Poverty alleviation Responsibility of the Report 88 Independent Assurance Duty Performance and Obligations through Finance Report 70 Enhancing Efforts in Targeted Poverty The Report was deliberated and adopted by the Board of Directors, the Board of Supervisors and the senior management of the Bank. 33 Enthusiastic Response to National Alleviation The Board of Directors and all directors of the Bank guarantee that the information contained herein does not include any false records, 90 Index for GRI Indicators Strategies 71 Providing Considerate Financial Services misleading statements or material omissions, and assume several and joint liabilities for its truthfulness, accuracy and completeness. 92 Feedback Questionnaire 37 Implementation of National Policies 73 Promoting Financial Literacy Assurance of the Report 42 Participation in Development of the Banking 75 Organizing Employee Volunteer Activities PwC Zhong Tian LLP has carried out independent limited assurance of the Report and produced its independent assurance report thereof Sector 42 Promotion of Party Building (refer to the relevant annex of the Report). Chapter 7 Publication of the Report 44 Safeguarding Financial Order Green Banking and Environmental The Simplified Chinese version of the Report is released in the three forms of interim announcement, printed hardcopy and PDF electronic Protection edition. The English version of the Report is published in PDF electronic form only. The interim announcement (the Simplified Chinese Chapter 4 Customers and Services 77 Influence of Climate Change version) is released at SSE. Hardcopies (the Simplified Chinese version) are distributed to the public via outlets of the Bank, by postal 77 Support for Green Credit service or at related events. The PDF electronic edition (the Simplified Chinese version and the English version) is made available on the 47 Protection of Customer Rights and Interests official website of the Bank (http://www.citicbank.com/). 80 Promotion of E-banking Transactions 50 Improvement for Service Quality The Bank has officially published its social responsibility report once a year as of 2008. The Report is both the 10th social responsibility 81 The Practice of Energy Conservation and 52 Enhancement for Customer Experience th Emission Reduction report officially published by the Bank and the 9 social responsibility report officially published by the Bank after independent assurance 57 Strengthened Management of Suppliers by a third party.

1 Data of “the Group” in the Report did not include CITIC aiBank Corporation Limited. 2 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chairperson’s Statement 3

Fully Implementing Policies on Inclusive Pressing ahead with Precision Poverty stressed the leading role of Party building Finance Alleviation through Finance culture and highlighted the centric position of customers. It also identified the vision Committed to the concept of inclusive Paying great attention to poverty alleviation, of “To become the best provider of finance, the Bank explicitly proposed the Bank actively implemented precision comprehensive financial services which greater favor to inclusive financial sectors poverty alleviation through finance, is responsible, warm, characteristic and such as small and micro businesses, formulated the “13th five-year plan” on has dignity”, the mission of “seek value “agriculture, farmer and rural area” and the work and took a series of measures for customers, happiness for employees poverty alleviation. Within the reporting such as enhancing credit support and and benefits for shareholders, and assume period, the Bank set up Inclusive Finance improving the product system. By the end due responsibilities to the society”, the Leading Group headed by me, formulated of the reporting period, the Bank’s loan core values of “Customer Focus, Trust, the inclusive financial development plan balance for precision poverty alleviation Innovation, Collaboration, Excellence” and accelerated to realize concentrated through finance reached RMB 4.225 billion, and the brand slogan of “Integrity and review, approval, loan extension up 50.62%. Moreover, it continued to Intelligence Lead to Prosperity”. and post-loan management through donate RMB 7 million to targeted poverty The Bank cared for personal development “implementation in pilot areas first step alleviation in Tibet, Gansu and Xinjiang and and physical and mental health of its by step”. Focused on financial service sent managers to local areas for precise employees and provided the entire staff for small and micro businesses as implementation and actual effect. with smooth career development paths priority of inclusive finance, the Bank The Bank has established a complete and all-round occupational security, allocated special credit for the corporate system in poverty alleviation through including the mature assessment, training customers, set up 28 dedicated education and realized all-round support and career system and the occupational institutions for small enterprises and for poverty-stricken students from primary security system consisting of “five social strictly carried out the “no less than” school and middle school all the way to insurances and one housing provident policy requirements in three aspects college. It cooperated with education fund” and voluntary enterprise annuity. for granting loans to small and micro foundations of higher education institutions It adhered to gender equality and equal businesses. By the end of the reporting to provide aid for college students in pay for equal work and safeguarded Chairperson’s Statement period, the Bank’s balance of loans to the poverty, worked with China Foundation employees’ legitimate rights and interests businesses grew by 9.73%, among which for Poverty Alleviation to launch the “CITIC such as appeal, labor and rest, trade balance of loans to micro businesses BankNew Great Wall High School Class” In 2017, the Bank firmly carried out the “Top 1,000 World Banks” published by prudent and risk-resistant ability was union membership and special rights and grew by 27.64%. program and offered subsidy to primary the decisions and arrangement of the the British Magazine The Banker, the Bank further enhanced. interests of women. The Bank strictly practiced the policy school students in impoverished areas Central Committee of the CPC and the ranked the 25th in terms of tier-one capital, In 2018, the Bank will remain true to its Actively Serving the Belt and Road requirement of financial charge reduction throughout the year. Within the reporting State Council and earnestly implemented up 12 notches compared with 2014, and original aspiration, keep its mission firmly Initiative and profit sharing and further expanded period, the Bank input RMB 10 million to regulatory requirements. It fully performed was awarded “Bank of The Year China” for in mind, continue to combine its own the reduction and exemption scope initiate the “Convoy Plan” together with the economic responsibility, environmental the first time. The Bank always followed the trend, and development with performance of social of service charges. For instances, it China Children and Teenagers Foundation protection responsibility and social firmly practiced national strategies. It responsibility and strive to grow into the Over the three years, the Bank better exempted personal RMB remote deposit/ to offer minor students studying overseas responsibility, with the comprehensive connected transformation of development closely followed the course of Renminbi best provider of comprehensive financial withdrawal fees and transfer fee via exclusive banking service, cultural identity competitiveness further improved. modes with change of dynamics under the internationalization, actively expanded services which is responsible, warm, the Bank, exempted promissory note cultivation service and safety rescue new normal and promoted capital-light, market along the Belt and Road and characteristic and has dignity, so as to Accomplishing the “Three-year Strategic and bank draft fees, loss reporting fee service, so as to improve their cultural asset-light and cost-light development. provided Chinese enterprises that “go contribute to comprehensive building of a Plan” and card issuing fee and exempted awareness and cultural confidence. Proportion of retail operating income global” with all-round financial support to moderately prosperous society. account management charge (including The past three years were three eventful was accumulatively increased by 14.5 help them with cross-border trade, capital Comprehensively Promoting Building of petty account management charge) of years in the development course of the percentage points, proportion of net markets and engineering construction. Corporate Culture corporate customers. Bank. In the face of complicated changes non-interest income increased by 12.4 Within the reporting period, the Bank 2017 was the last year of the Bank’s three- as China’s economy entered the period percentage points and cost-income ratio successfully developed a group of cross- The Bank strived to improve coverage, year plan on corporate culture building. of new normal, the Bank sized up the decreased by 0.4 percentage point. The border merger & acquisition projects with availability and satisfaction of inclusive Over the past three years, adhering to the situation and formulated the 2015-2017 business pattern of the entire Bank was wide market influence such as acquisition finance by expanding the coverage principles in the CITIC corporate culture, the strategic plan. Over the three years, further harmonized. The Bank prioritized of Syngenta AG by China National of outlets and constantly improving Bank preliminarily constructed the “Five- bearing consensus in mind, the entire proactive prevention and mitigation of Chemical Corp. It actively got engaged e-banking services. It provided customers in-One” corporate culture building system Bank persistently pressed ahead with risks and actively promoted the risk in management of the Belt and Road with offline financial service in 142 large covering cultural mechanism, cultural team, all work and accomplished its strategic management system reform. With multiple Foundation of CITIC Group and made and medium-sized cities and on this targets and tasks, finding a development measures taken in risk culture building, joint investment mainly in five sectors such as basis, offered more customers financial cultural carrier, cultural demonstration path compatible with the new normal of prevention and control with three defense rail transit, shanty town renovation, new and non-financial services via multiple and cultural brand and carried out “Five economy and the market-based financial lines, credit structural adjustment, non- countryside construction and ecological channels such as mobile banking. By the Projects” including “Imprint on Mind, reform. Compared with the end of 2014, performing asset operation and internal culture. Subsidiaries of the Bank initiated end of the reporting period, number of Imprint on Heart, Benchmark, Atmosphere the entire Bank registered total assets of control & compliance management, it establishment of the USD 500 million Belt mobile banking customers of the Bank and Responsibility”. By doing so, it carried RMB 5.68 trillion, at a compound growth ramped up on provisions and NPL write-off, and Road Foundation in Hong Kong for increased by 39.53%, transaction value forward positive energy, stimulated vitality Chairperson and Executive Director rate of 11.1%, and achieved an operating with the provision/loan ratio accumulatively investment in capital construction, energy, of mobile banking grew by 55.52% and and played the role of enhancing cohesion. income of RMB 156.708 billion, at a increased by 0.48 percentage point. transport, finance and consumption in number of personal online banking users In the early 2018, the Bank released the Li Qingping compound growth rate of 7.9%. Among Development of the entire Bank was more China and ASEAN countries. climbed by 19.18%. Corporate Culture Manual 2.0, in which it 26 March 2018 4 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chairperson’sPresident’s Statement 5

Cherishing a “customer-centric” service The Bank actively carried out the national gasoline equivalent to 4,416.84 tons and philosophy, the Bank made efforts to policy of precision poverty alleviation electricity used equivalent to 188,500 tons. provide customers with further enriched through finance and ramped up its support In 2018, the Bank will uphold the mission financial products and thoughtful financial to the designated areas. It launched of “seek value for customers, happiness for service. In 2017, the Bank further improved targeted poverty alleviation projects in employees and benefits for shareholders, management of protection of consumers’ and sent managers to Tibet, Gansu and and assume due responsibilities to the rights and interests, safeguarded safety Xinjiang and expanded the aid scope of society” and adhere to the responsibility of customer fund and information through “CITIC Bank • New Great Wall High School concept. It will respond to national policies enhancing information technology and Class” program of poverty alleviation on economic development, carry out improving customer service abilities, and through education. Meanwhile, the regulatory requirements of government, augmented safety guarantee of outlets. Bank actively rendered financial service deepen business development It also standardized service processes, of warmth, joined the “Convoy Plan”, transformation and strategic transformation proactively bettered service, optimized segmented support service for the blind and promote inclusive finance and green service channels, innovated in services and and the disabled and gave care to the finance. While striving to become the products and improved e-banking services elderly and other special customer groups. “best provider of comprehensive financial to further elevate its service quality and It also continuously organized events for services, which is responsible, warm, customer experience. By the end of the popularizing financial knowledge to the characteristic and has dignity”, the Bank will year, the Group organized nearly 8,000 public and various volunteer activities. By promote collaborated growth of economic, customer activities of various kinds and the end of the year, donations to various environmental and social benefits in a bid around 66,000 person times of employees projects in poverty alleviation, educational to contribute to the common sustainability provided consultation service for roughly aid, disaster relief and support of vulnerable of all stakeholders. 4,215,700 person times of customers. groups amounted to RMB 29.743 million The Bank put into operation 1,435 outlets and donations by employees were RMB and 9,295 sets of self-service equipment 1,311,200. Amount of tax totaled RMB and made over 23 million service calls 24.232 billion and social contribution per to customers. Its wealth management share stood at RMB 4.37. The Bank’s President’s Statement products created direct benefits of RMB balance of loans for precision poverty 45,656 million for the buyers. alleviation through finance was RMB 4.225 billion, fund donations for poverty Fully recognizing the fundamental role of truthfully and responsibly disclosed social alleviation reached RMB 15,177,700 and In 2017, led by the thought on employees, the Bank offered employees responsibility information and continued to 41 managers were sent to villages for the with Chinese characteristics for a new era sufficient basic benefits, rational plans hire the third-party institution to conduct work. The Bank organized 164 volunteer and guided by the new strategic plans, for career development and professional assurance of the important statements, activities, which were participated by the Bank upheld the value concept of training, responded to employees’ appeal key data and cases in the Report, so as to around 3,100 person times of employees. “performance of social responsibility, and safeguarded employees’ rights and pursuit of sustainable development” and make the Report more credible. interests. It established a complete benefit In its active response to the impact of comprehensively introduced the mindset In 2017, the Bank proactively supported security system, upheld equal pay for climate change, the Bank engaged in the Executive Director and President of social responsibility management in the , “coordinated equal work, attached great importance to cause of green credit by clarifying credit its operation and management. It made Sun Deshun development of the Beijing-Tianjin-Hebei protection of employees’ legitimate rights extension policies, identifying environmental substantial efforts that proved effective, 26 March 2018 region” and the “Going Global” strategy and interests such as right to appeal, rights and social risks, ramping up loans for green achieved admirable performance, and especially facilitated emerging and interests of trade union, rights and credit, strictly controlling loans to industries implemented the social responsibility industries of strategic importance and interests of labor and rest and rights and with high energy consumption and high target of “a green bank, a people’s bank, manufacturing upgrade projects related interests of women, cared for employees’ pollution and issuing green bonds. Focus a charitable bank, a trustworthy bank, a to the “ 2025” plan. It physical and mental health and was was put on mobile finance to promote rapid valuable bank of value and a bank with a supported development of industries concerned about their life. By the end of development of e-banking. Meanwhile, the great brand” and promoted harmonious concerning social undertakings and the year, the Bank had 53,346 employees, Bank advocated energy conservation and sustainability featuring economic people’s livelihood, facilitated real among whom female ones accounted emissions reduction and drove the ability development, social advance and economy, optimized loan structure of for 53.08%, those of ethnic minorities and level of carbon footprint verification environmental friendliness. regional economy, innovated in service reached 2,433 and those with bachelor to constantly improve. By the end of last The Bank paid great attention to for small and micro businesses and degree or above accounted for 92.06%. year, the Bank’s balance of loans granted communication on social responsibility, maintained stability of national financial Input into trainings totaled RMB 80 million, to green credit projects was RMB 60.358 conducted questionnaire surveys among order. While reaping social benefits, the with the trainings covering over 600,000 billion and balance of loans to industries stakeholders and understood concern Bank also realized constant improvement person times of employees. Voluntary with high energy consumption, high of the public about the topic, laying a of economic value. By the end of the year, physical check-ups were offered to around pollution and over capacity stood at RMB solid foundation for better performing its the Bank recorded net profit attributable to 47,600 person times. 100% of the Bank’s 45.71 billion. Transaction value of personal social responsibility. Meanwhile, the Bank shareholders of RMB 42.566 billion, total contracted employees joined trade union; mobile banking reached RMB 4,232.368 adopted active and effective measures to assets of RMB 5,677.691 billion, a capital 40 institutional units established the system billion and replacement rate of transactions earnestly respond to will and appeal of adequacy ratio of 11.65%, a provision of workers’ congress and 40 units signed by e-banking was 98.96%. A4 copy paper all stakeholders in time and strengthened coverage ratio of 169.44% and an NPL collective contracts on special protection of purchased by the Group was equivalent to social responsibility management. It ratio of 1.68%. female employees. 1,310.28 tons of carbon dioxide emission, 6 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Key Performance Indicators 7

The Group’s Profile Key Performance Indicators

Key Performance Indicators 2 three-year strategic plan and identified the market business, institutional banking strategic vision of building the “bank of business, investment banking business, offering the best comprehensive financing inter-bank business and custody business, Key Performance Indicators Unit 2017 2016 services”. Currently, total assets of the and purveyed personal customers Economic Responsibility Performance Bank approached RMB 6 trillion. With diversified financial products and services Operating income RMB 100 million 1,567.08 1,538.443 a brand value of USD 9,479 million, it covering general retail banking, credit card, nd Total profit RMB 100 million 522.76 546.08 ranked the 22 in the “Top 500 Global consumer finance, wealth management, Bank Brands” by the Banker magazine in private banking, going abroad finance Net profit attributable to shareholders of the Bank RMB 100 million 425.66 416.29 th February 2017. In May, it ranked the 78 and e-banking. All in all, the Bank tried its Basic earnings per share RMB 0.84 0.85 among the “Top 2,000 Global Companies” best to meet the comprehensive financial Return on average assets（ROAA） % 0.74 0.76 published by the Forbes magazine. In July, service demand of corporate and personal Founded in 1987 as the largest subsidiary the Bank ranked the 25th in terms of tier- Return on weighted average equity % 11.67 12.58 of CITIC Group, the Group is among customers in an all-round way. one capital among the “Top 1,000 World the earliest emerging commercial banks Total assets RMB 100 million 56,776.91 59,310.50 Banks” published by the Banker magazine. The Bank maintained 1,435 outlets established during China’s reform and Total liabilities RMB 100 million 52,652.58 55,465.54 With a prudent development pace and in 142 large and medium-sized cities opening up and China’s first commercial constantly deepened reform and innovation, nationwide, mainly distributed in eastern NPL ratio % 1.68 1.69 bank participating in financing in both in November 2017, the Bank was named coastal areas and economically developed Provision coverage ratio % 169.44 155.50 the domestic and international financial the “Bank of The Year China in 2017” by the cities in central and western areas, and markets. It is renowned at home and Capital adequacy ratio % 11.65 11.98 Banker magazine. had over 50,000 employees. There were abroad for renewing numerous track London Representative Office in the United Social Responsibility Performance records in the contemporary Chinese In the context of economic new normal and Kingdom and Sydney Representative Office Taxes paid4 RMB 100 million 242.32 259.52 financial history. Over the years, it has made market-orientation of finance, following the in . There were five subsidiaries positive contributions to China’s economic development vision of “To become the best Total donations RMB 10 thousand 2,974.30 2,285.33 under the Bank, namely Zhejiang Lin’an development. provider of comprehensive financial services CITIC Rural Bank, CITIC Financial Leasing Value of social contribution per share RMB Yuan 4.37 4.07 which is responsible, warm, characteristic In April 2007, the Bank’s A shares and H Co., Ltd. and CITIC aiBank Corporation Outlets* In number 1,435 1,424 and has dignity”, the Bank leveraged on the shares were listed on both the Limited in the Chinese mainland, as well unique competitive edge of CITIC Group Self-service terminals* In number 9,295 10,029 Stock Exchange (“SSE”) and The Stock as CITIC International Financial Holdings in coordinating the development of finance Headcount* Person 53,346 54,6285 Exchange of Hong Kong (“SEHK”) Limited and China CITIC Bank (Hong Kong) and industries, built an integrated service 6 simultaneously. In 2009, the Bank Investment Limited (formerly known as Including: Male employees* Person 25,030 25,539 platform and improved its unique advantage successfully acquired CITIC International “China Investment and Finance Limited”) in Female employees* Person 28,316 29,0897 of core competitiveness. Financial Holdings Limited and controlled Hong Kong. CITIC International Financial Ethnic-minority employees* Person 2,433 2,323 China CITIC Bank International Limited. In Cherishing the fundamental role of Holdings Limited’s subsidiary China CITIC Total training input* RMB 10 thousand 8,464.19 9,181.16 2011, the Bank successfully completed re- customers, the Bank provided corporate Bank International Limited had more than financing via A+H shares-rationing, laying & institutional customers with assorted 2,000 employees at 41 outlets in Hong Voluntary activities* In number 164 144 the foundation for development at the new financial solutions in corporate banking Kong, the Chinese mainland, Macau, New Voluntary participants* Person-time Around 3,100 Around 4,600 stage. In 2015, the Bank formulated the business, international business, financial York, Los Angeles and Singapore. Environmental Responsibility Performance Loan balance of green credit*8 RMB 100 million 603.58 396.70

Transaction value of personal internet banking* RMB 100 million 123,758.07 114,705.39 6 Transaction value of corporate internet banking* RMB 100 million 695,965.67 661,236.60 Per capita urban power consumption* KwH 4,965.37 4,776.08

Total assets of the Bank approached Per capita urban water consumption* Ton 39.34 38.74 RMB 6 trillion. With a brand value 9 Per capita A4 Xerox paper purchase volume* Pack 9.48 8.06 of USD 9,479 million, it ranked the 22nd in the “Top 500 Global Bank Total number of account statements* 10,000 envelopes 21,400 16,058 Brands” by the Banker magazine in Consumption of hardcopy account statements* 10,000 envelopes 2,087 3,286 February 2017 Hardcopy-to-e-statement substitution rate* % 90.25 79.54

Video conferences* In number 4,818 Around 4,300

2 Indicators marked with “*” in the table are data of the Bank and those without the “*” 7 Data disclosed in last year’s report was 29,088 persons. After caliber adjustment, the mark are data of the Group. current data prevails. 3 Data disclosed in last year’s report was RMB 153,781 million, which is adjusted to the 8 The data is disclosed according to statistical caliber of the Green Credit Guidelines and current one. the Statistical Table of Energy Saving and Environmental Protection Projects and Service 4 Data source: “Cash Flow Statement – Taxes Paid” in the annual financial report. Loans released by CBRC, while related data disclosed in last year’s report was based on statistical caliber of the Industrial Classification for National Economic Activities (GB/ 5 Data disclosed in last year’s report was 54,620 persons. After caliber adjustment, the T4754-2011). current data prevails. 9 Statistical caliber is the same as “Per capita Xerox paper purchase volume” disclosed in 6 Data disclosed in last year’s report was 25,532 persons. After caliber adjustment, the last year’s report. current data prevails. 8 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Ten-year Development of the Corporate Social Responsibility Report 9

Ten-year Development of the Corporate Social Responsibility Report

2017 Corporate Social Responsibility one and another attempt to specialize, authoritative standards, diversified the the corporate social responsibility report Report of the Bank is the 10th annual standardize and internationalize the social indicator system and enriched the content, and standardized the basis, principle and corporate social responsibility report responsibility report, winning broad respect such as the Guidelines on Corporate cycle of the report as well as the whole- openly published by the Bank. Over the of the public and the industry. Social Responsibilities of Banking Financial process management mode covering decade, the report matured and gained Institutions promulgated by the CBA and responsibility division, compilation, Over the decade, the Bank persisted with confidence, transformed from a brochure the Guide on the Preparation of Social assurance, approval, disclosure and the highest reporting standard. In the 2009 of enterprise image to a professional report Responsibilities Report (GB/T36001- evaluation. In 2015, the Bank developed report, the Bank adopted the international up to international standard. The ten years 2015) issued by China National Institute of and launched the Management System on of the report were the result of wisdom GRI (G3) standard for the first time. In the Standardization. In terms of identification, Social Responsibility Report Information and will of the Board of Directors and 2011 report, it upgraded the standard caliber, definition and statistical collection of China CITIC Bank and adopted digital of greenhouse gas emission, it also referred Senior Management of the Bank, result of to GRI (G3.1) and was rated A+ in the methods to implement information to methodology of ISO14064-1. persistence and hard work of compilers report rating review implemented by GRI collection and statistical analysis. It also and result selfless support and contribution for three years consecutively. In the 2015 Over the decade, the Bank persisted with upgraded the “Head Office - branches” of the entire staff. With great perseverance, report, it upgraded the standard again to standardized management methods. It extensive management mode to the courage for innovation and bravery for GRI (G4). In the compilation of the report, issued the interim management measures, “head office – tier-one branches – tier- challenging new heights, the Bank made the Bank constantly introduced other management measures 1.0 and 2.0 on two branches – sub-branches” whole-

59,310.50 56,776.91 2,974.30 41,388.15 2,285.33 29,599.39 1,766.9942 10-year development 1,400 1,661.6 1,461.6 1,559.11 10-year development of 20,813.14 51,222.92 of total assets and net 13,192.55 588 685.14 36,411.93 400 total donations and value profit attributable to 27,658.81 of social contribution per 17,750.31 425.66 shareholders of the Bank 391.75 406.92 411.58 416.29 4.19 4.12 4.07 4.37 share 308.19 310.32 3.34 2.71 Total assets (RMB 100 million) 215.09 2.33 1.71 Total donations (RMB 10 thousand) 132.62 143.20 1.62 1.31 Net profit attributable to shareholders of Value of social contribution per share the Bank (RMB 100 million) (RMB Yuan)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

3,254.95 3,105.54 3,213.79 10-year development 1,353 1,424 1,435 3,030.67 1,230 1,073 of loan balance to small 885 700 773 2,373.42 enterprises and 5-year 544 615 10-year development of 1,913.33 development of loan the number of outlets and 1,075.72 balance to micro businesses 246 257 257 outlets in western regions 214 1,039.50 842.80 173 132 629.06 Loans to small enterprises 78 95 112 679.34 468.80 Outlets (in number) 418.89 (RMB 100 million) 318.42 393.87 Outlets in western regions (in number) Loans to micro businesses (RMB 100 million)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

10-year development of 53,136 54,628 53,346 46,822 50,735 882.30 891.83 870.43 loan balance of green 41,365 33,552 37,195 credit and loan balance to 658.32 676.55 633.45 21,385 24,180 492.19 501.80 industries of high energy 10-year development of 437.45 457.10 consumption, high pollution headcount and proportion and over-capacity of female employees 271.25 274.87 52.00 52.19 52.64 53.20 53.10 52.68 52.78 52.91 53.26 53.08 236.96 254.78 183 189.60 207.64 High energy consumption, high pollution 149.96 161.14 and over-capacity (RMB 100 million) Headcount (person) 92.65 Proportion of female employees (%) Loan balance of green credit (RMB 100 million)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 10 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Ten-year Development of the Corporate Social Responsibility Report 11

organization process management mode. of advises for management improvement to the Bank disclosed 712 items of data of EXE electronic book, the 2014 and 2015 Besides, it conducted systematic trainings, the Bank after assurance was concluded in total, including 29 on economic report in the form of APP and the report surveys and improvement work to ensure each time. The strict assurance process, responsibility, 133 on environmental from 2012 to 2015 at domestic mainstream reliability, completeness and traceability serious professional ethics and beneficial responsibility, 215 on social responsibility media in the form of abstract of corporate of over 700 indicators collected via the management advices of the independent and 335 on management and control. The social responsibility report. system. In the Report, the Bank collected third-party institution helped the Bank data increased by 442 items or 163.70% in After ten years of unremitting efforts in 374 items of text information with around 2 perfect its report management system terms of number over the decade. compiling corporate social responsibility million characters from 11,085 information and work methods and especially improve Over the decade, the Bank persisted with reports, the Bank made fruitful periodical centers and 503 items of data information statistical effectiveness of its environmental innovative disclosure methods. Corporate achievements and reached one and from 442,603 information centers, with performance indicators. Meanwhile, the social responsibility reports of the Bank another new level amid constantly completeness of the Report considerably institution popularized the concept of were compiled in Simplified Chinese and overtaking, innovating, improving and improved. social responsibility in its work practice and officially disclosed in the form of interim making standard. With abundant truthful promoted cultivation and formation of the Over the decade, the Bank persisted announcement at the SSE. Later, they data and vivid cases, the reports displayed responsibility culture of the Bank. with third-party independent assurance. were designed and printed by specialized to the public, besides financial statements, It introduced KPMG for the first time in Over the decade, the Bank persisted with design companies and handed out to the a lifelike, dedicated and responsible China the 2009 report and engaged PwC as the philosophy of data-based decision public in hardcopies through outlets of CITIC Bank. Looking forward, the Bank will independent third-party institution in the making. In the 2008 report, the Bank the Bank nationwide, postal service and stand at a higher starting point in compiling 2015 report. The institution conducted disclosed 270 items of data in total, offline activities. English version of the the corporate social responsibility reports assurance with limited assurance over including 20 on economic responsibility, reports was published only in the PDF to truthfully disclose to the public full all the key statements, data and cases in 24 on environmental responsibility, 97 electronic form. Simplified Chinese version information on performing its economic, the report according to the international on social responsibility and 129 on and English PDF electronic version were environmental and social responsibility common ISAE3000 and issued a proposal management and control. In the Report, published at the Bank’s official website and show the image of China CITIC Bank (http://www.citicbank.com/). Besides, the with a sense of responsibility, temperature, Bank published the 2011 report in the form features and dignity.

264.88 10-year development 249.15 260.87 224.40 of total urban power 190.75 consumption and per 167.13 capita urban power 102.30 108.30 108.53 96.18 consumption

47.84 46.89 47.76 49.65 44.79 40.40 40.74 44.23 Urban power consumption (million KwH) 32.35 25.86 Per capita urban power consumption (KwH)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

10-year development 200.85 211.60 209.87 170.79 159.82 of total urban water 133.40 126.42 96 113 consumption and per 58.58 capita urban water consumption 44.89 46.73 39.76 41.29 37.80 38.74 39.34 27.00 31.50 Urban water consumption (10,000 tons) 15.75 Per capita urban water consumption (Ton)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

10-year development of 50.55 A4 Xerox paper purchase 44.02 39.57 40.91 34.65 volume and per capita 28.21 A4 Xerox paper purchase 19.16 16.40 volume 8.77 9.58 9.48 7.40 7.80 7.70 8.06 Xerox paper purchase volume 6.82 (10,000 tons) 5.71 4.10 3.96 4.41 Per capita A4 Xerox paper purchase volume (Pack)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Chapter 1 Strategy and Management 13

Chapter 1 Fruitful Strategy Implementation Strategy and

2017 was the last year of implementing the the majority shares of Halyk Bank, and thus Management 2015-2017 Strategic Plan of China CITIC became China’s first joint-stock commercial Bank (the “Strategic Plan”). Over the past bank of buying a financial institution in three years, the Bank has defined clear, Kazakhstan. characteristic market positioning, profit Fourth, the Bank further stimulated Fruitful Strategy Implementation model and competitive strategy, paved innovation-driven development on the basis Improvement and Upgrading of a way of development that suits to the of a better system. On the basic principle Corporate Cultural System new normal of economy and the financial of pursuing steadiness and innovation, the liberalization reform, and made remarkable Bank has further improved the innovation Effective Building of Corporate Culture progress in becoming the bank offering the system, while setting up the Innovation Enhanced Awareness of the best comprehensive financing services. Management Committee under the Senior Corporate Social Responsibility (CSR) First, the Bank empowered operation Management. It opened the Financial IT Philosophy and development via strategy-guidance. Product Innovation Lab, and built a group Three years’ efforts made the Bank scale of innovation bases; it took the lead in Identification of Key CSR Topics up steadily, profitability enhance smoothly, forming the “Internet Banking Union”, and Enhancement of CSR Communication asset quality under control, structural introduced a variety of model innovations; transformation superbly effective, and it launched a series of industry-leading Strengthening of CSR Management market status elevate significantly. By the innovation projects and the first modeling end of 2017, the Bank had reported net innovation project, and achieved a brilliant profit at RMB 42,566 million, NPL ratio outcome in product innovation. at 1.68% and provision coverage ratio at Fifth, the Bank further strengthened risk 169.44%. defense lines through deeper promotion. Second, the Bank balanced business From 2015 to 2017, under the guidance mix through deepened transformation. of the Guidelines on the Three-Year Plan 42,566 After development for three years, the for Risk Culture Construction and its Bank has made remarkable achievement implementation program, the Bank has the Bank had reported net profit at in implementing the “large industry, large launched training and promotional activities, RMB 42,566 million system, large city and high-end customer” education for warning purpose, knowledge strategy, strengthened and even elevated competitions and risk inspections, etc., its status in the corporate banking market, and propelled risk culture construction energetically put the “Four-Three-Three” across the board; it made available a “four- 4,215,700 retail banking strategy into place, solidly in-one” parallel working mechanism, a full- pushed forward the initiative of “second- time credit granting approver system and the Group had organized about 7,870 around transformation”, and continuously the certification of risk management quality, bank-wide or regional marketing events boosted the competitiveness of financial among others, which comprehensively for customers. Around 66,000 person- time employees provided professional markets business. reinforced the risk management system. At financial services for about 4,215,700 Third, the Bank exhibited a more the same time, the Bank made innovations person-time customers distinctive brand image by means of to the problematic asset disposal characteristic development. In the past approaches, paid greater efforts to non- three years, the Bank systematically performing asset recovery, strictly pursued advanced the business coordination with the accountability in respect of non- 23,284,473 CITIC Group and other companies affiliated performing assets, and fully improved the to CITIC Group, and set up a “Combined risk control system. E-banking of the Bank made Fleet of CITIC Bank”. The Bank established Sixth, the Bank cemented internal control 23,284,473 outgoing calls, up 101.61% CITIC Leasing and the brand of “Green and compliance through governing the Lease”; it bought the equity stake of CIFH; Bank more strictly. The last three years saw it strengthened the capital base of CNCB the improvement and sort-out of internal Investment which obtained investment bank by-laws. As a result, the internal control license at abroad; it founded aiBank, China’s and compliance system became more 40,000 first direct bank with an independent legal sound, the authorization management more person, creating a role model for Chinese standard, the staff conduct control more By the end of the year, via various commercial bank plus Internet; it set up an comprehensive, the pursuit of rectification national (and local) media, the Bank asset management center, and introduced accountability stronger, and special published over 40,000 pieces of media a CITIC-featured asset management and inspections deeper. Besides, the backward coverage, up 5.26% investment rating system; and it acquired review for “strengthening and curbing 14 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 1 Strategy and Management 15

respectively in two aspects” was launched culture through posters on the wall, reading on a solid basis. cultural books and “One Wall, Two Lectures Improvement and Upgrading of Seventh, the Bank enhanced and Three Meetings”, and advanced the Corporate Cultural System 42,566 comprehensive support via consolidating training on promotion and implementation the foundation. Over the prior three years, from many different perspectives; it In 2017, the 19th National Congress of developed the corporate cultural system the Bank had reported net profit the Bank has strengthened the political selected and rewarded advanced units at RMB 42,566 million the CPC ushered the Chinese people into and the corporate cultural manual version core function of the Party Committee in and individuals, set role models on cultural a new era and a new journey. The Bank 2.0. In the updated version which was corporate governance, and further improved building, and extensively promoted the good examples; it introduced and popularized earnestly studied the spirits of the report officially released and became effective in corporate governance; it reconstructed the th the Employee Assistance Program (EAP), delivered at the 19 National Congress of early 2018, the Bank emphasized cultural performance-linked assessment system, bought critical illness insurance for all the the CPC, proposed to embed “upholding guidance in Party building and customer and further ameliorated the financial & employees, conducted a wide range of Party leadership” into the corporate focus, and showcased the CITIC Bank- 1.68% accounting model and the asset & liability cultural and sports events, and cared for culture, streamlined and improved the featured corporate culture in the new era of management model; it basically formed an the Bank had reported NPL ratio particularly the employees in difficulties, former corporate cultural system, and socialism with Chinese characteristics. enterprise-level information architecture, and at 1.68% female employees and the retired, recording achieved a breakthrough in IT development; plentiful fruits in employee care and love. it created the long-distance centralized authorization model, and effectively And tenth, the Bank better performed Motto Mission unleashed the efficiency and effectiveness social responsibilities by bravely taking Focus on customers, be Seek value for customers, of operations management; and it them. In the past three years, the Bank employee-based, pursue happiness for employees 169.44% integrity and compliance, and benefits for established a value-oriented remuneration actively acted upon national strategies, strengthen professionalism shareholders, and assume tried hard to address effective credit and innovation, team- due responsibilities to the Bank had reported provision and performance system, and recorded work, and create the society. coverage ratio at 169.44% outstanding results in human resources demand of the real economy, and served value. management reform. the real economy very effectively; it set up the Inclusive Finance Leading Group Eighth, the Bank further deepened Party Cultural Vision Core values and the Working Group which helped to building work with unremitting efforts. guidance in Party To become the best Customer Focus, Trust, forcefully promote inclusive finance; it strictly building provider of comprehensive Innovation, Collaboration, Throughout the three years, institutional financial services which Excellence. complied with the “No Lending under Four Uphold Party leadership, is responsible, warm, guarantee enabled the Party Committee of strengthen Party building, Circumstances” and the “Six Necessary characteristic and has and govern the Bank the Head Office and Party committees of dignity. Conditions”, practiced the “one-vote- strictly. the branches to exert the leadership core down system in environmental protection”, and political core function, and primary-level extended lots of green credit, and enhanced Party organizations realized full coverage Song the effectiveness of green finance; it Brand slogan across the whole bank; the Bank put in Together for Glories. supported the targeted poverty alleviation Integrity and Intelligence place an all-directional education model efforts in Gansu, Tibet and Yibin in Sichuan Lead to Prosperity. covering all the Party members, set up an Province, and carried out the “China CITIC “Internet Plus Party Building” platform, and Bank·New Great Wall Self-reliance Senior realized the four-wheel drive by the Party High Class” program to financially aid poor Committee, Youth League Committee, students. Labor Union and Women’s Federation; it, fully commit to In February 2018, the Bank prepared and take firm actions abiding by the principle of placing officials strengthening released the 2018-2020 Development Plan Party leadership to serve overall under Party supervision, promoted the of China CITIC Bank in line with the spirits interests of the implementation of the “Two Responsibilities”, Effective Building of Corporate Culture country of the 19th National Congress of the CPC, established the Party Discipline Committee remain dedicated of the Fifth China National Financial Working to serve the real Secretary Exchange Mechanism and the Conference and of the Central Economic economy pursue customer Response-on-Demand Mechanism for Periodic Success in Corporate Culture Building focus Working Conference, as well as China’s Secretaries of the Party Committee and the 13th Five-year Plan and the 13th Five-year Party Discipline Committee, and worked Plan of CITIC Group. The Development 2015-2017 was the first three-year planning and Responsibility), and consecutively deepen reform relentlessly to deepen the strict governing of period for the Bank’s corporate culture went through three stages (policy building, and development always enhance Plan, aiming to “become the best provider bank. Unification of with firmness compliant of comprehensive financial services which building. In the past three years, the promotion and study; demonstration and operation vision and mission Ninth, the Bank made corporate culture is responsible, warm, characteristic and Party Committee of the Head Office and image improvement; experience sharing Unification of value even stronger through bringing people has dignity”, laid down six basic principles Chairperson Li Qingping attached much and cultural test). The hard efforts paid off and philosophy

together. Within the three years, the Bank attention to the building of corporate culture. in enabling corporate culture to exert the Unification of logo (i.e. fully commit to strengthening Party and image “Five attached importance to the top-level design leadership, take firm actions to serve overall Under enhanced top-level design, the Bank core function of uniting the people, and Unification of mottoUnifications” of corporate culture, built a corporate interests of the country, remain dedicated to was guided by “Five Unifications” (unification promoting positive energies and spirits. and pledge cultural system with CITIC characteristics, serve the real economy, pursue customer of vision and mission, unification of value and All the employees of the Bank were in the released the cultural manual, formulated focus, deepen reform and development with philosophy, unification of codes of conduct, enterprising spirits, and the “Five-in-One” the three-year plan on cultural building, and firmness, and always enhance compliant unification of motto and pledge, and corporate culture building system covering Unification of codes effectively put the enterprise cultural values operation), and served as the action plan unification of logo and image), proceeded cultural mechanism, cultural team, cultural of conduct into practice. The Bank carried out a series to guide all officials and employees in from the “Five Projects” (Imprint on Mind, carrier, cultural demonstration and cultural six basic principles of innovative cultural events like promoting completing each task in 2018 to 2020. Imprint on Heart, Benchmark, Atmosphere brand basically met its objective. 16 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 1 Strategy and Management 17

The 30-Year Anniversary Celebrations to Boost Morale Intensive Promotion of Risk and Compliance Culture

In 2017, adhering to the core ideology responsibilities shall be commensurate of “holding the bottom line, enhancing with powers, the Bank shall define the responsibilities, highlighting implementation, parties responsible for risk and compliance conducting active management and creating management and a clear boundary of value”, the Bank deepened the building of responsibility, and persist in “holding those risk and compliance culture, guided the who have violated regulations, exempting voluntary formation of risk and compliance those that have diligently fulfilled their duties”. awareness, called all the employees to Highlighting Implementation. The Bank develop the idea of operating in accordance shall strictly implement policies and rules, with laws and regulations, said no to execute orders and proclaim prohibitions, extensive operation and misconducts, and shall not violate provisions or act beyond and created a risk and compliance cultural the authority for any reasons and in any system covering “all employees, all lines and forms. The Bank shall optimize and adjust all processes”. rules and procedures on a timely basis, and Holding the Bottom Line. Legality & take the initiative in identifying, exposing and The year 2017 marked the 30th of Supervisors Cai Huaxiang were invited compliance and risk appetite are the bottom eliminating hidden risks. anniversary of the Bank. On the principles to the Conference. Chairperson of the line of operating and risk management. All Conducting Active Management. The of “being simple but grand, highlighting Board of Directors Li Qingping, President staff shall strictly abide by laws, regulations Bank shall conduct active management of the theme, and being cost-effective”, Sun Deshun, and Chairman of the Board and regulatory provisions, strictly implement risks by all means, enhance support of risk while letting the employees be the main of Supervisors Cao Guoqiang, as well as the Head Office’s risk policy and risk management to product innovation, business participants and giving due consideration members of the Party Committee of the appetite, observe professional ethics and development and strategic transformation, to the outsiders, the Bank launched Head Office, members of the Board of guard legal bottom line, compliance bottom and realize transformation from risk control a series of celebrations including the Directors and the Board of Supervisors, line and risk bottom line, and shall not to risk operation. challenge the bottom line for any reason. corporate culture speech contest senior management members, and Creating Value. The Bank shall balance “Upholding Cultural Spirits, Abiding by leaders of branches and the Head Office Enhancing Responsibilities. Main person in- relations between risk, capital and income, Professional Ethics”, the “Search for the departments attended the Conference on charge of units at all levels is the first liable as well as risk, development and innovation, Beauty of CITIC Bank” activity and the the spot. Chairman of CITIC Group Chang person for risk management. All employees boost the harmonious development of “30-Year Exhibition of CITIC Bank” under Zhenming addressed the Conference. shall practice and be directly responsible benefit, quality and scale, and practically the theme of “Forging Ahead towards And Chairperson Li Qingping of the Bank for risk management and compliant and enable risk management to create value for Prosperity”. legal operations. In the principle that the Bank. The 30th Anniversary Celebration Logo10 delivered a speech on celebrating the th The Bank held the Conference on 30 anniversary. The Bank conferred 10 The dominant color of this logo is red. The Celebrating the 30th Anniversary of CITIC the 30-year meritorious medals to 28 ribbons as a kind of innovative element signal Bank on 16 September. CITIC Group employees to show the lofty respect to vitality and reflect the Chinese culture in the senior management members including them. All the employees expressed their Enhanced Awareness of the Corporate Social Responsibility shape of plum blossom cross. “30” seems like heartfelt wishes to the 30-year birthday the infinity symbol, and points to that CITIC Chairperson of the Board of Directors (CSR) Philosophy Bank will open an infinitely good future with Chang Zhenming, General Manager of the Bank in videos, showing the good customers. Wang Jiong and Chairman of the Board spirits and their love of the Bank. In 2017, still based on the CSR philosophy Performance of Social Responsibility: To development, to support energy of “performance of social responsibility, be a responsible enterprise, to effectively conservation and emission reduction, pursuit of sustainable development”, the fulfill economic, social and environmental to support credit of green economy and “Search for the Beauty of CITIC Bank” Activity Bank has been “committed to growing responsibilities, to connect closely with circular economy, to construct a green

th all stakeholders, to be committed to While celebrating the 30 anniversary, the Bank launched a large-scale activity “Search for into a green bank, a people’s bank, a bank, to advocate a low-carbon life style, public benefits with love and care, and the Beauty of CITIC Bank” on the mobile Internet for the purpose of witnessing beauty, charitable bank, a trustworthy bank, to protect the ecological environment, to become a responsible state-owned showing the beauty of present and future CITIC Bank, and displaying the beauty of a valuable bank of value and a bank and to take the path of sustainable with a great brand” while promoting the enterprise. development. innovation. All the employees could take part in the activity by uploading photography, harmonious and sustainable development Pursuit of Sustainable Development: calligraphy, drawing and micro-video works. of economy, society and environment. To uphold the scientific outlook on Innovatively using the H5+WeChat public account, the Bank opened a full range of transmission channels like subscription account, WeChat group, intranet, email, poster and offline, and received more than 10,000 photography, calligraphy, drawing and micro-video Pursuit of Sustainable Development: works showcasing the 30-year operation and management achievements and the spirits Performance of Social Responsibility: To uphold the scientific outlook on development, of employees from employees mainly together with their family members, relatives and To be a responsible enterprise, to effectively to support energy conservation and emission friends, and friendly customer groups. During the activity, the WeChat platform recorded fulfill economic, social and environmental CSR responsibilities, to connect closely with all reduction, to support credit of green economy over 1.6 million visits, daily peak up to 280 thousand and more than 1.35 million votes. This philosophy stakeholders, to be committed to public and circular economy, to construct a green bank, helped to foster a rich cultural atmosphere of “Looking into the Future, Staying True to benefits with love and care, and to become a to advocate a low-carbon life style, to protect the the Founding Mission, Forging ahead, Becoming Prosperous by Sticking to Integrity, and responsible state-owned enterprise. ecological environment, and to take the path of Pursuing Excellence”. sustainable development. 18 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 1 Strategy and Management 19

Recognition of Stakeholders Identification of Key CSR Topics Recognition of Stakeholders by the Bank With the support of a third-party shareholders, personal customers, institution, the Bank sorted out 18 key corporate customers, other banks, Stakeholder Expectations as topics on sustainable development suppliers, the media and public welfare Understood by the Bank Forms of Communication Response Measures Performance pursuant to the GRI (G4) Standards representatives, and internal stakeholders Compliance with state laws Laws, regulations, policy Answered government Tax payment according to law and the Environmental, Social and such as employees to gauge the and regulations as well as guidelines and normative calls Support to the real economy industrial standards and documents Governance (ESG) Reporting Guide. importance of those topics. Please see Implemented regulatory norms Steady improvement of Industrial meetings, policies And, questionnaires were sent to external below for importance distribution of the operating results Safeguarding safety of bank special reports, regulatory stakeholders including the government, Bank’s key CSR topics: Participated in funds announcements and ratings, Remarkable management development of industrial Government and briefings results Fair competition according to standards and norms law, and safeguarding a fair On-site inspections and off-site Anti-corruption and clean Improved operating and competition environment regulation governance The Bank’s Matrix of Topic Importance management results Sustainable development Symposiums, seminars and Safeguarding a stable Accepted regulatory forums financial order, etc. evaluation 4.5 Concern of external stakeholders of external Concern M Operating risk management Standard corporate General Meetings Formulated and implemented Better CSR management governance development strategies J Anti-corruption Periodical announcements Higher social contribution Higher return to shareholders Refined corporate governance value per share Shareholder Communication and 4.4 Higher profitability exchanges with investors Reinforced risk prevention Lasting brand value and honors Higher corporate value Road shows Increased transparency of P Inclusive finance information disclosure Better operating results L Product R&D Sustainable development Results releases Internal regulatory ratings, etc. R Service quality management 4.3 Provision of high-quality Business outlets Provided convenient express Survey of customer financial services financial services satisfaction and demand E-banking Provision of high-quality Diversified financial products Better service quality O Green finance Marketing activities financial products Timely launched product & Better customer Customer Salons and lectures Provision of complete, truthful marketing announcements experience 4.2 and accurate product and Market surveys Understood customer Safeguarding customer service information Result evaluation comments and suggestions rights and interests, etc. Safeguarding information Strengthened safety and K Community investment safety I Product responsibility security of business outlets C Environment and natural resources 4.1 N Corporate culture building H Supply chain management Compliance with commercial Publicly available procurement Set up and improved the Establishment of centralized B Resource utilization G Labor standards ethics information supplier management procurement center mechanism A Emissions Open, equitable and fair Negotiations and exchanges Formulation of relevant procurement Established and maintained a rules and regulations on Supplier Cooperation agreements and E Health and safety supplier database centralized procurement Mutual benefit, win-win and contracts 4.0 management D Enployment common development Reinforced communication and contact with suppliers Establishment of partnership F Development and training with suppliers

Q Shareholder returns 3.9 Creation of jobs Employee representatives’ Uniformly recruited Realizing the role of trade congresses employees union Concern of internal stakeholders Reasonable remuneration and welfare Trade unions Upheld equal pay for equal Staff performance evaluation 4.2 4.3 4.4 4.5 4.6 4.7 4.8 work for promotion purpose Satisfactory work Intranet emails and forums Safeguarded staff health and environment Health examination and Employee Internal meetings safety psychological counseling for Smooth communication Organized cultural and sports employees mechanisms activities Diversified professional Admirable room for personal Protected essential rights and training sessions career development interests of staff Employees arranged to go on Provided on-job skill training all types of leaves Listened to employee Symposiums with young viewpoints employees, etc.

Enhancement of CSR Communication Care for vulnerable Field surveys and visits Made outbound donations More outbound donations groups Visit to poverty alleviation Implemented poverty Organization of targeted Communication with organizations alleviation projects poverty alleviation events government on poverty In 2017, the Bank paid great attention wishes and demands in a timely and Assisted vulnerable groups and public benefit and Community Visit to charity and public alleviation charity activities to reinforcing communication with sincere manner, thereby promoting benefit organizations Promoted financial literacy Charity and public benefit stakeholders and adopted effective harmonious sustainable development of activities Organized public benefit Participation in voluntary activities activities, etc. measures to respond to stakeholder both itself and the stakeholders. Financial literacy 20 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 1 Strategy and Management 21

Issue the Brand Slogan Communication with Stakeholders Winner of the “Bank of The Year China” Award Media Communication for the 30th Anniversary Celebration The Bank issued the brand slogan On 29 November 2017 (London Time), The Banker, “Integrity and Intelligence Lead to Active Visits. Chairperson Li Qingping and a British magazine, unveiled its selections of best In July 2017, the Bank organized 18 central President Sun Deshun of the Bank led teams Prosperity” officially in February 2018. banks in 2017. The Bank became the only Chinese and mainstream media agencies including to visit provinces, autonomous regions and In details, “Integrity” is a brand asset winner of the “Bank of The Year China” award the Financial Times, the Economic municipalities directly under the central exclusively owned by the Bank, and can for 2017 by virtue of sound development steps and Daily, the Securities Daily, the Caijing government. They actively paid visits to the magazine, people.cn and Tencent, as well be interpreted in the following three governments of Beijing Municipality, Guangxi increasingly deeper reform and innovation. Since aspects: first, “honest”, the Bank treats Zhuang Autonomous Region, Guizhou IPO in Shanghai and Hong Kong a decade ago, the as the newspaper CITIC People to visit the customers honestly; second, “believe”, Province, Hebei Province, Hunan Province, Bank has increased total assets from over RMB 700 featured business of Credit Card Center the Bank believes in tradition, Ningxia Hui Autonomous Region, Qinghai billion at end-2006 to more than RMB 5 trillion and and Guangzhou Branch. They made an innovation and any possibility; and Province, Sichuan Province and Zhejiang net assets from over RMB 30 billion to close to RMB extensive interview on the Bank’s innovative third, “self-confidence”, the Bank Province. During their visits, sufficient 400 billion. Over the past few years, the Bank, under credit card service and comprehensive has confidence in own culture, own communications and exchanges were the strategic guidance, has paved a development financial services for new energy vehicles, carried out with government agencies for development objective and own road suiting to the new normal of economy and the and gave reports on the Bank’s achievement continuous improvement of the Bank’s work financial strength. “Intelligence” means financial liberalization. in serving the real economy. in various aspects and enhancement of the Group had organized about 7,870 bank-wide that the Bank adopts technology and Bank’s capacity and competence in serving or regional marketing events for customers. innovation in products, businesses and the real economy. Around 66,000 person-time employees services in the Internet era, and creates provided professional financial services for Information Disclosure. The Bank published a bright future full of potential with about 4,215,700 person-time customers. regular reports and interim announcements E-banking of the Bank made 23,284,473 customers. In words, with integrity in strict accordance with the laws and outgoing calls, up 101.61%. Strengthening of CSR Management and intelligence, the Bank will set to regulations of listing places on information embrace prosperity. disclosure. There were over 400 disclosures Internal Communication. The Bank established communication channels with on the SSE and the SEHK, providing Put in Place Rigorous Management submission13 and completion of poverty Assurance of the Bank’s 2017 Social basic-level employees through senior sufficient information for investors in a timely Process. According to the Articles of alleviation and charity activity14 aimed at Responsibility Report would be still management “reception day” system, and effective way. The Bank strengthened Association of the Bank and the Procedural raising the social responsibility awareness provided by PwC Zhong Tian LLP, which “president’s mailbox”, “Head Office is information disclosure policy building, Rules of the Board of Directors, the of all employees and actively fulfilling social would review the truthfulness of important Listening to You”, consultation symposium reviewed and amended the information Board of Directors shall be responsible responsibilities. statements and key data in the report and disclosure related operational procedure and and other forums, through which the Bank for deciding the Bank’s strategy, Information System Management. produce further opinions and suggestions special management regulation, and ensured encouraged employees to make suggestions reviewing and finalizing the Bank’s basic The Bank continued to disclose social upon the completion of assurance. In systematic and well-regulated information on and jointly supervise business management policies, hearing working 2017, PwC Zhong Tian LLP put forth three disclosure on the institutional sphere. development and internal management responsibility information mainly using thus to establish a sound internal and reports by the President and other senior the “Information Management System for aspects of eight-point key opinions and Administrative Transparency. To make external feedback mechanism and rational management members, supervising their Social Responsibility Reporting of China suggestions to the Bank, all of which were staff get a better understanding of whole suggestion soliciting channels. duty performance and ensuring they can CITIC Bank”, and to improve the social remedied and responded to in daily work. bank’s development strategies and business perform the management duty effectively. responsibility management indicators development plan, the Bank further Brand Promotion. The Bank issued the The proposed CSR report approved by enhanced information disclosure mechanism brand slogan “Integrity and Intelligence Lead system with reference to the indicators in the Bank’s management will be submitted in the internal network, continued to carry to Prosperity” officially. During 2007 and the GRI (G4) Standards, the Environmental, to the directors for review, and be 11 The “service quality” evaluates retail service out the Administrative Measures for Internal 2017, the Bank has sponsored the China Social and Governance (ESG) Reporting quality of branches and aims at strengthening Network of China CITIC Bank, and released Tennis Open for 11 consecutive years; and it amended according to their comments Guide and the social responsibility system evaluation guidance for higher customer will continue to sponsor this event from 2018 and suggestions. The CSR report will be of the China Banking Association. The the Bank’s major movements in relation to service quality. It covers two sub-indicators, to 2022. operation and management in time under disclosed after being approved by the Head Office departments, 38 branches namely “third-party mysterious customer the premise of guaranteeing the safety and Media Release. The Bank continued to Board of Directors. Each year, the Bank’s and more than 1,400 banking outlets monitoring” and “number of subordinating security of confidential information. By the update the “Social Responsibility Reporting” Board of Directors actively informs its made quarterly and yearly reporting over institutions placed on the list of 1,000 Best Role Model Units”. end of 2017, about 96,500 messages were column on its official website to disclose members of the regulatory thinking and the above-said system. What’s more, 12 posted on the Bank’s internal network, its CSR information to the general public. updates on economy, environment and the reporting data was subject to the Loans to micro and small enterprises should meet the “three minimums” requirement, i.e. a decrease of about 3.73%, while visits By the end of the year, via various national society in forms like circulations to directors administrator and approver system to growth rate being no lower than the average (and local) media, the Bank published over approximated to 13.22 million, an increase and supervisors, and strengthens their make sure all representations, data and growth rate of all loans, number of customers of about 11.73%. 40,000 pieces of media coverage, up 5.26%; understanding of relevant work through cases disclosed are reliable, complete and securing loans being no lower than that of Exchanges with Customers. The Group and on its official website, the Bank made study and investigation. traceable. the previous year and rate of loans being granted being no less than that of the previous launched a series of exchanges with over 1,500 news releases, the same as last Establishment of Assessment Insistence on Third-Party Assurance. year. The indicators were focused on guiding customers, e.g. publicity of product year. Mechanism. The Bank continued to Since 2009, the Bank has engaged third- domestic branches to step up their credit contents, product promotion, door-to-door Talks and Exchanges. The Bank received incorporate “social responsibility” into party assurance agencies to conduct support for micro and small enterprises. service provision, care for customer activities, institutional investors, analysts and personal branches’ comprehensive performance independent limited assurance of the 13 Social responsibility data submission assesses friendship celebrations with customers, investors in such forms as reception of assessment indicators. The “social truthfulness of all important statements and the acceptance rate of social responsibility and education and communication on investigation personnel, telephone call, active data submitted in every quarter. responsibility” indicator included four sub- key data in its social responsibility reports, financial policies and knowledge. The Bank visit, investor forum, strategic meeting, email 14 Completion of poverty alleviation and charity indicators, namely service quality11, the and given opinions and suggestions made outgoing calls to conduct e-banking and the e-interaction online platform run by activity assesses the direction, project, approval customer surveys, customer care and SSE. These moves impressed the market “three minimums” for micro and small regarding the improvement of the Bank’s and compliance and budget execution ratio of 12 business handling. By the end of 2017, the with positive energies on business growth. enterprises , social responsibility data management of social responsibility. branches’ donations. Chapter 2 Corporate Governance and Risk Control 23

Chapter 2 Corporate Improvement of Corporate Governance Governance and Risk Control Corporate Governance Structure

The Bank’s Corporate Governance Structure

Improvement of Corporate Governance General Strengthening Risk Management Meeting Board of Directors Board of Supervisors 600

The Bank collaborated with CITIC Securities, China Securities and CITIC Trust, among others, to provide customers integrated financing services in the amount of over RMB 600 billion Committee Strategic Development Committee Transactions Control Audit and Related Party Committee Risk Management Committee Remuneration Nomination and Protection Committee Consumer Rights Supervision Committee Nom1nation Committee

300

the Bank, along with China CITIC Bank International and CNCB Investment, provided customers

cross-border services worth over Management Senior RMB 300 billion, up 186%

94.68%

The Bank already rectified the problems found during these audits, with a rectification rate of 94.68% Internal ControlInternal Committee Risk Management and Committee Asset and Liability Committee Information Technology Committee Innovation Management Disposal Committee Non-performing Assets Committee Brand Management Committee Wholesale Business Committee Retail Business Business Committee Financial Market Procurement Committee Committee Inquiry Working Leading Group Anti-money Laundering Marketing Committee Business Committee Asset Management Committee Credit Approval EarTy Warning Committee Head Office Credit Risk 24 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 2 Corporate Governance and Risk Control 25

Overall Profile of Corporate Governance class meeting, one H shareholders class Rules. The Board of Directors shall review meeting, ten meetings of the Board the annual social responsibility report of Directors (including nine regular of the Bank, assess the performance In 2017, the Bank implemented the governance in terms of system and on-site meetings and one vote by of social responsibilities and assume corporate governance and business mechanism. The Board of Directors correspondence), nine meetings of the relevant responsibilities in accordance operation according to the requirements continued to attach equal importance to Board of Supervisors (including eight with the regulatory requirements of the of the laws and regulations such as the system building and culture construction, regular on-site meetings and one vote by Guidelines on Corporate Governance of Company Law of the People’s Republic of made overall amendments to the The proportion correspondence) and 32 meetings of the Commercial Banks by the CBRC and the China, the Commercial Bank Law of the Bank’s corporate governance system, of meetings specialized committees under the two Environmental, Social and Governance People’s Republic of China, the Banking improved the information communication held by the boards. Reporting Guide of the Hong Kong Stock Bank in 2017 Supervision Law of the People’s Republic mechanism for governance entities, The chairperson and president of the Exchange. of China and the Securities Law of the and strengthened the implementation of Bank held their positions separately. Ms. The General Meeting approved that the People’s Republic of China. decision outcomes while actively fostering Li Qingping is Chairperson and Executive Directors of Board adopted the allowance In 2017, in face of the new normal in a corporate governance culture centered Director, responsible for presiding over the policy. The non-executive directors economic and financial development, on respect, trust and support. It was general meetings, convening and presiding (excluding the independent non-executive the Bank strengthened its judgment with continuously guaranteed that independent annual shareholders’ general meeting 1 over the Board of Directors’ meetings directors) do not receive any director’s calm and active response, conscientiously directors played an active role and temporary shareholders’ and examining the implementation of the allowance from the Bank; among the implemented the policies of the state expressed their professional opinions. The general meeting 2 resolutions of the Board of Directors; and executive directors, the Chairperson and adhered to its value orientation, to Board of Supervisors performed its duties A shareholders class meeting 1 Mr. Sun Deshun is Executive Director of the Board does not receive any vigorously step up strategic management, conscientiously, operated in a standard H shareholders class meeting 1 and President of the Bank, responsible director’s allowance or position-related accelerate the process of business and efficient manner, and actively meetings of the Board of Directors 10 for implementing the Board of Directors’ remuneration from the Bank, whereas the transformation, comprehensively carried out supervision in the aspects of meetings of the Board of Supervisors 9 resolutions, and presiding over the President does not receive any director’s reinforce risk prevention and control financial management, internal control meetings of the specialized committees operation and management of the Bank. allowance but can receive corresponding and consistently improve corporate development, risk prevention and control, under the two boards 32 The respective responsibilities of the remuneration in accordance with his/ governance, hence achieving outstanding and duty performance, further enhancing Chairperson and the President of the Bank her position in the Bank; independent results. the effectiveness of supervision. Generally, are clearly defined, which complies with non- executive directors receive pre-tax there was no significant discrepancy In 2017, the relationship between the the requirements of the Hong Kong Listing allowance of RMB 300,000 annually. Bank’s corporate governance entities was between the setting and operation of the further coordinated, with its corporate Bank’s corporate governance institutions governance mechanism further improved and the related requirements of the Board of Directors and the capabilities of the Board of Company Law, the China Securities Composition Directors and Board of Supervisors to Regulatory Commission (“CSRC” As at the disclosure date of the Report, Deshun (President); three non-executive of the Board perform duties consistently intensified. hereinafter) and the Stock Exchange of Mr. Zhu Gaoming was appointed as directors, namely, Mr. Zhu Gaoming, Ms. of Directors According to laws, regulations, regulatory Hong Kong, and no significant corporate Independent Non-Executive Director of Huang Fang and Mr. Wan Li Ming; five provisions and the overall requirement for governance issue that regulators had the Bank; Mr. Chang Zhenming resigned independent non-executive directors, including party building into the Bank’s requested to solve but was left unsolved from his duties as Non-Executive Director namely, Ms. Wu Xiaoqing, Mr. Wong Luen articles of association, the Board of could be found. and member of the Strategic Development Cheung Andrew, Mr. He Cao, Ms. Chen Executive Director 2 Directors proceeded with the amendment The Bank in total convened one annual Committee under the Board of Directors of Lihua and Mr. Qian Jun. Non-executive directors 3 to the articles of association to effectively general meeting, two extraordinary the Bank due to work arrangements; Mr. Meetings of the Board of Directors. In independent nonexecutive integrate party leadership into corporate general meetings, one A shareholders Zhu Xiaohuang resigned from his duties 2017, the Board of Directors convened directors 5 as Non-Executive Director and member of 10 meetings whereby 69 proposals were the Strategic Development Committee and deliberated and adopted, including the the Risk Management Committee under 2016 Annual Report of CITIC Bank, 2016 the Board of Directors of the Bank due to Internal Control Assessment Report of an advanced age. CITIC Bank and 2016 Corporate Social Composition of the Board of Directors. Responsibility Report of CITIC Bank; Composition The Board of Directors is the decision- and 33 reports were made, including the of the Board of making body of the Bank. As at the Bank’s business operation report of 2016, Supervisors disclosure date of the Report, the Board business plan report for 2017 and 2016 of Directors of the Bank consisted of strategy implementation assessment ten members, including one chairperson report. namely, Ms. Li Qingping; two executive Specialized Committees under the Board external supervisors 3 directors, namely, Ms. Li Qingping of Directors. There were five specialized employee representative (Chairperson of the Board) and Mr. Sun committees under the Board of Directors, supervisors 3 26 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 2 Corporate Governance and Risk Control 27

namely the Strategic Development Consumer Rights Protection Committee. subsidiaries. Through these investigations, supervisory role. Whiling conscientiously Committee, the Audit and Related Party The remuneration of members of the the Board of Supervisors came up with carrying out conventional supervision, Transactions Control Committee, the Risk Board of Directors of the Bank is set a series of targeted and highly workable the Board of Supervisors further Management Committee, the Nomination by the Nomination and Remuneration suggestions, and effectively passed optimized the mechanism for tracking its and Remuneration Committee and the Committee, and then submitted to the them on to the Board of Directors, senior supervisory opinions, strengthened the Consumer Rights Protection Committee. Board of Directors for deliberation and management, departments of the Head implementation of its decisions, promoted In 2017, the Bank convened eight adoption before approved and finalized by Office and branches of the Bank in the the application of supervision outcomes, meetings of the Strategic Development the General Meeting. All members of the form of investigation reports based on and effectively enhanced its supervision Committee, nine meetings of the Audit Nomination and Remuneration Committee actual conditions, giving full play to its efficiency. and Related Party Transactions Control of the Bank are directors independent Committee, four meetings of the Risk of the Bank; the committee can engage Management Committee, five meetings outside experts or intermediaries to Senior Management of the Nomination and Remuneration provide professional consulting services Committee and one meeting of the based on its actual need. As at the disclosure date of the Report, operating results, major contracts, Mr. Yao Ming, Mr. Hu Gang and Mr. Mo financial condition, risk profile, business Board of Supervisors Yue served as CRO, Vice President and prospects and significant events, among Secretary of the Discipline Inspection others, to the Board of Directors or the Committee of the Bank respectively; Mr. Board of Supervisors on a regular basis, As at the disclosure date of the Report, responsibility report, the evaluation Zhu Jialin and Mr. Zhang Qiang resigned or as required by the latter. As at the Mr. Chen Panwu and Ms. Zeng Yufang report on the performance of directors, their duties as Vice Presidents of the disclosure date of the Report, the senior served as employee representative supervisors and the senior management, 9 Bank due to work adjustments. management of the Bank consisted of supervisors of the Bank; Ms. Wen the amendment to the rules of procedure Composition of the Senior Management eight members, namely, Mr. Sun Deshun, the Board of Supervisors held Shuping resigned from her duties as for the Board of Supervisors and The senior management is the executive Mr. Fang Heying, Mr. Guo Danghuai, Mr. nine meetings whereby 21 employee representative supervisor of accounting policy changes; 11 reports Yang Yu, Mr. Mo Yue, Mr. Hu Gang, Mr. proposals were deliberated body of the Group reporting to the Board the Bank due to an advanced age; Mr. were made, mainly covering the strategy of Directors. The senior management Yao Ming, and Mr. Lu Wei. Ma Haiqing resigned from his duties assessment report, the business should truthfully report the Bank’s as employee representative supervisor operation report, the comprehensive risk of the Bank due to work adjustments; 3 management report, the internal control Management of Related Party Transactions Mr. Shu Yang resigned from his duties and compliance report, and the report on

t he Board of Supervisors as supervisor of the Bank due to work the rectification of problems notified by organized three collective adjustments; and Mr. Cao Guoqiang the CBRC. By deliberating on proposals In 2017, the Bank strictly followed the management and dynamic update of investigations, involving six resigned from his duties as chairman and and listening to reports, the Board of regulatory requirements of the CBRC, related parties, and routine statistics branches and subsidiaries CSRC, the SSE, the SEHK and the collection and monitoring of related party member of the Board of Supervisors of Supervisors practically supervised key accounting standards, and further transactions, and executed procedures the Bank due to work adjustments. proposals, major contents and effectively fulfilled more informatized and refined for the deliberation, disclosure and Composition of the Board of fulfilled the duties of meeting discussion management of related party transactions filing of such transactions in a standard Supervisors. The Board of Supervisors and supervision. Furthermore, the Board with an eye to improving the related manner, ensuring all the Bank’s related is the supervisory body of the Bank of Supervisors supervised the Group’s party transaction standardization system, party transactions were conducted in a reporting to the General Meeting. As operation and management activities which ensured that the Bank’s related compliant and orderly manner. at the disclosure date of the Report, by attending meetings of the Board of party transaction procedures complied The Bank continuously stepped up the the Board of Supervisors consisted of Directors and the senior management with laws and regulations, and that the management of related party transaction six members, including three external as non-voting delegates, and reviewing interests of the Bank and its shareholders limits, ensured all of its continuous related supervisors, namely Ms. Wang Xiuhong, various documents, among other means. were effectively protected. party transactions were conducted within Mr. Jia Xiangsen and Mr. Zheng Wei; The Board of Supervisors worked to The Audit and Related Party Transactions the upper limits it applied for to the Stock and three employee representative continuously diversify the approaches Control Committee under the Board of Exchanges of Shanghai and Hong Kong, supervisors, namely Mr. Cheng Pusheng, and boost the quality and efficiency of Directors conducted rigorous reviews of and completed the application for such Mr. Chen Panwu and Ms. Zeng Yufang. investigation by centering on the priorities related party transactions with independent limits in 2018-2020 in advance. Meetings of the Board of Supervisors. of the Bank including operation and directors giving independent opinions The Bank further enhanced the level of In 2017, the Board of Supervisors held management, strategy implementation, thereon to ensure all related party informatized related party transaction nine meetings whereby 21 proposals internal risk control and disposal of non- transactions were conducted fairly on management, completed the development were deliberated. Research and review performing assets, as well as key issues it terms no more favorable than granted to and launch of the related party transaction were made on the regular reports, the was concerned about. In 2017, the Board independent third parties. system, and realized the identification of profit distribution plan, the internal of Supervisors organized three collective The Bank strictly abided by regulatory related parties and systemized processing control assessment report, the social investigations, involving six branches and provisions, strengthened classified of related party transaction statistics. 28 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 2 Corporate Governance and Risk Control 29

Coordinated Business Management Strengthening Risk Management

In 2017, the Bank worked with its for industrial parks, comprehensive subsidiaries and the subsidiaries of CITIC environmental management and Risk Management Structure 600 Group to create a one-stop integrated infrastructure construction, among other financing service system for customers. major areas. The Bank’s Comprehensive Risk Management Structure The Bank collaborated with CITIC Securities, China Securities and The Bank collaborated with CITIC The Bank accelerated the pace of CITIC Trust, among others, to Securities, China Securities and building an overseas commercial banking provide customers integrated CITIC Trust, among others, to provide and full-licensed investment banking financing services in the amount of over RMB 600 billion customers integrated financing services in platform and actively built its presence Board of Directors the amount of over RMB 600 billion. The along the Belt and Road. It provided Board of Directors Bank set up a “CITIC PPP consortium” domestic and overseas one-stop services by joining hands with China International to customers by working with overseas 300 Audit and Related Party Transactions Risk Management Committee Economic Consultants, CITIC Securities, platforms including CITIC Securities Control Committee the Bank, along with China CITIC China Securities, CITIC Trust, CITIC International and China Securities Bank International and CNCB Engineering, CITIC Envirotech and CITIC International. In 2017, the Bank, along Investment, provided customers Construction (among others), through with China CITIC Bank International and cross-border services worth over RMB 300 billion, up 186% which to jointly undertake key PPP CNCB Investment, provided customers projects at city- and province-levels, cross-border services worth over RMB extensively participating in the planning 300 billion, up 186%. President & President’s Panel Head Office Risk Management and CITIC aiBank was Officially Opened Internal Control Committee

On 18 November 2017, CITIC aiBank (“aiBank”) was officially opened for business. Audit Department Senior management member Risk consultant By leveraging the advantages of the Bank and Baidu, aiBank is the first direct bank in of the Bank in charge of risk management segment the sector in China operating in the capacity of an independent legal, creating a new Vice presidents of “finance + the Internet” model, and marking a milestone in the Internet finance area. District Audit Centers the Bank Since it obtained the approval from the CBRC on 15 August 2017, aiBank has taken “providing wealth management and financing services to the masses so that everyone Financial Markets General Office: can enjoy a simple and reliable financial life” as its mission, which signals a useful Department: reputational / liquidity risk strategic risk experiment taken by commercial banks to adapt themselves to market demand and Risk Management the development trend of the Internet. As a strategic layout of the Bank in the Fintech Credit Approval Credit Law and Department: Compliance Asset and Liability Department: Department: Management Preservation credit / market / Department: liquidity / bank account interest rate area, aiBank has embodied the all-out efforts made by the Bank to build a smart and credit risk Department: Department: operational / compliance risk risk / financial statements consolidation credit risk credit / legal risk concentration / management inclusive bank under the “O+O” (online + offline) and “B+B” (business + banking) country risk model by integrating its financial capabilities into its ecosystem.

Branch President Branches

Branch vice president Branch Risk Director or assistant president

Relevant branch departments Credit Law and Credit Approval Compliance Management Preservation Department / Department Department Department Risk Management Department 30 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 2 Corporate Governance and Risk Control 31

Comprehensive Risk Management System management mechanism, based across the Bank. In 2017, the on the overall thinking of “relevant Bank successfully launched its

the “three defenses” to implement entities remaining unchanged and new-generation credit business an enquiry-based accountability embedding in the foreground”. system and credit management mechanism, optimize incentives Based on the three lines of defenses, APP project. The rollout of the business operation institutions and and constraints and clarify the the Bank established a consistent, system will enable the Bank to fulfill business management departments at all levels boundary of their duties; continuously standardized and targeted post- intelligent marketing, risk control improved the comprehensive risk lending management mechanism and operation, and fundamentally management assessment system for for comprehensive financing and enhance its basic capacity and risk risk management branches; optimized the division of credit business, and promoted the management level for the credit departments audit, disciplinary inspection and responsibilities for risk management, implementation of such mechanism business. supervision, and security and improved various procedures departments of the risk management system. Reinforcing Internal Control and Compliance Management According to the Comprehensive Risk “three defenses” Management Policy of CITIC Bank, In 2017, the Bank strictly implemented over 3,600 opinions given, and the Board of Directors shall take the regulatory requirements, strengthened supported business innovation ultimate responsibility for bank-wide the building of its internal control and development; strengthened In 2017, the Bank put in place a risk management, and is responsible system and authorization mechanism, the accountability mechanism for comprehensive risk management for formulating risk management established a comprehensive and rectifications, consistently held system to exercise across-the- strategies, approving major risk well-structured “three-defense” relevant parties accountable for board management of risks of all management policies and procedures, internal control system with clear systemic rectifications and those from types. The Bank defined the parties as well as information disclosures in report lines, and enhanced the the source, and boosted the quality responsible for comprehensive risk respect of comprehensive risks and authoritativeness, timeliness and and efficiency of such practices; management. Presidents at all levels all types of key risks. seriousness of authorization; improved the anti-money laundering were held primarily responsible for The Bank adhered to an overall reinforced employee behavior management system, put in place a risk management at their respective prudent risk preference, and management, carried out risk “centralized, systemic and expert- levels, while vice presidents in stressed the alignment of business screening, home visits and integrity based” operating process, and charge of risk management shall scale and profitability level with reporting to boost employees’ brought into play intensive efficiencies; take main responsibility. The Bank risk taking on the precondition of awareness; stepped up early effectively carried out compliance specified the “three defenses” for compliant operation; gave play to identification and assessment of culture construction and enhanced risk management, i.e. business the role of capital constraints, raised compliance risks, completed over employees’ ability to “understand, operation institutions and business comprehensive income and RAROC, 1,500 compliance audits with identify and mitigate risks”. management departments at all and shifted from controlling risks levels; risk management departments; to operating risks on the principle Optimizing Audit Supervision and Management audit, disciplinary inspection of “risk coverage with income”, by and supervision, and security using advanced risk quantification In 2017, the Bank continued and comprehensive audits, and departments. The “three defenses” techniques and strengthening to step up offsite audit and issued 119 audit reports of various jointly assumed the responsibility economic capital management; monitoring, initiated and conducted types. The Bank already rectified the 94.68% for risk management, and were held continued to implement differentiated comprehensive risk management, problems found during these audits, responsible for risk management credit policies by region, industry, The Bank already rectified the liquidity risk management and anti- with a rectification rate of 94.68%; problems found during these audits, outcomes. The Bank prompted customer and product. money laundering audits, and carried and strengthened follow-up audits with a rectification rate of 94.68% out a planned mid-term economic and the supervision and assessment Strengthening Post-lending Management responsibility audit for the first time, of rectifications to continuously giving full play to the functions of boost the self-healing and error In 2017, the Bank reinforced duty of the first line of defense, audits. By the end of the year, the correction capacities of its internal the post-lending management and improved the post-lending Bank conducted a number of special controls. Chapter 3 Duty Performance and Obligations 33

Chapter 3 Duty Performance and Obligations

Enthusiastic Response to National Strategies Enthusiastic Response to National Implementation of National Policies Strategies Participation in Development of the Banking Sector In 2017, according to the national strategic manufacturing upgrading projects in relation Promotion of Party Building layout, the Bank responded earnestly to the to the “” strategy, Belt and Road Initiative, the coordinated the development of cultural industries Safeguarding Financial Order development of the Beijing-Tianjin-Hebei that reflects the nation’s confidence in its region and “Go Global” strategies of the culture and of industries closely related to government, with focus placed on supporting social undertakings and people’s livelihood, the strategic emerging industries and performing its bounden duty.

Support for the Belt and Road Initiative Balance of loans to small and micro enterprises (RMB 100 million) Since 2015, the Bank has vigorously used to invest in the infrastructure, energy 9.73% expanded markets along the Belt and and transport sectors of China and Road, stepped up stockpiling of high- ASEAN nations along the Belt and Road, 5,254.62 2017 quality credit projects, and offered as well as premium enterprises in the 4788.61 2016 necessary support in terms of credit finance and consumers industries. policy, marketing resources allocation, credit approval process and credit quota allocation. 1,550,000 The Bank participated in the establishment of the Belt and Road fund worth RMB the Bank confiscated 20,275 counterfeit 108.7 billion in total. In 2017, the Bank 108.7 RMB banknotes, down by 1.87%, and the continued to strengthen the management total amount of the counterfeit banknotes of the Belt and Road fund, mainly The Bank participated in the was RMB 1,550,000, up 4.42% over the establishment of the Belt and previous year targeting five areas including rail transit, Road fund worth RMB 108.7 shantytown reconstruction, construction billion in total of new countryside and ecological culture. In doing so, it effectively supported infrastructure construction in 13 key Belt 21,000 and Road cities, including Guangzhou, 500 Hangzhou, Changsha, Hefei and Hohhot. the Bank organized over 2,000 party CNCB (Hong Kong) Investment Co., CNCB (Hong Kong) Investment Co., organizations and 21,000 party members Ltd., a subsidiary of the Bank, and to listen to and watch the live broadcast of Ltd., a subsidiary of the Bank, and CITIC CITIC Securities International jointly Secretary General Xi Jinping’s report Securities International jointly set up a set up a USD 500 million CNCB Belt USD 500 million CNCB Belt and Road and Road fund in Hong Kong fund in Hong Kong. The fund is mainly 34 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 3 Duty Performance and Obligations 35

Supporting the ABP London project in the UK Support for Enterprises “Going Global”

ABP London Phase-I broke ground officially in June 2017. As a major comprehensive In 2017, oriented to value creation utilize overseas funds to lower financing project developed on the public land of London, it will allow Chinese enterprises to and light-style development, the Bank costs, helped enterprises access low- establish European branches in the city upon completion of construction, and strengthen focused on market trends, adhered to cost funding abroad by adopting trade ties between China and European and emerging markets. Secretary General Xi compliant operations and enhanced the “overseas loan under domestic Jinping witnessed the signing of the project agreement, under which CITIC Construction its cross-border integrated service guarantee” model, and provided them would serve as the general contractor for the project, while project loans be provided by capacity by closely following the with related foreign exchange hedging an export buyer’s credit syndication led by the Bank. As an onshore correspondent bank RMB internationalization process, and value preservation services. of the syndication, the Bank discussed the financing structure with China Export & Credit and centering on national strategies Insurance Corporation on behalf of the syndication, the borrower and the guarantor, (including the Belt and Road Initiative coordinated with the syndication over the signing of the loan agreement, signed relevant and Chinese enterprises “going global”) mortgage and pledge agreements on behalf of the syndication, and provided technical and the development of reforms like support for loan disbursements to the members of the syndication. By the end of 2017, the capital account convertibility, against the “the Belt and syndication successfully completed its first disbursement. backdrop of continuously falling imports Road” and exports. In response to the Belt and Road In response to the Belt and Road Support for the National Strategy of the coordinated Initiative, the Bank provided export Initiative, the Bank provided export credit financing support to credit financing support to Chinese development of the Beijing-Tianjin-Hebei region Chinese enterprises going global enterprises going global. According to In 2017, the Bank formulated the Guiding strengthened study of the latest policies the requirements of the People’s Bank of Opinion of CITIC Bank on Coordinated on BTH coordinated development and the China for macro prudential supervision, Marketing in Beijing, Tianjin and Hebei, construction of Xiong’an New Area to fully the Bank supported the real economy specifying the thinking, objectives and support the implementation of such national by encouraging domestic enterprises to marketing strategies of relevant work, strategy. The Bank’s projects related to as well as the systematic measures BTH coordinated development involved Leading the Biggest Syndicated Loan Project in the History of and supporting policies to facilitate the key areas including transport, real estate, the Asia-Pacific Region IFR task. Moreover, the Bank developed shantytown reconstruction, ecological and differentiated credit policies for the environmental governance, industrial parks 16 May 2017, ChemChina completed the first loan disbursement of the syndicated Asia-Pacific Loan of the Beijing-Tianjin-Hebei (BTH) region, and and industrial transfer and upgrading. loan project leading by the Bank, for its cross-border acquisition of Syngenta AG in Year 2017 Switzerland. As the global coordinator for the project, the Bank led and established IFR ASIA a USD 12.7 billion cross-border M&A syndicated loan for the deal. It was not only Supporting the Shantytown Reconstruction Project in the biggest syndicated loan project in the Asia-Pacific region, but also the first major Loan of the Year 2017 Yushuzhuang Village, Beijing cross-border M&A syndicated loan project exclusively led by a Chinese joint-stock bank the Asia Pacific Loan Market Shantytown reconstruction is an efficient way to divert Beijing’s non-capital functions. in history. As such, it won the “Asia-Pacific Loan of the Year 2017” award granted Association by IFR, the “Loan of the Year 2017” granted by IFR ASIA, and the “Best Leveraged In earnest response to the national policy, the Bank took shantytown reconstruction as Best Leveraged Buyout a crucial means to support the capital’s socioeconomic development. The Yushuzhuang Buyout Financing Project in Asia Pacific of 2016” and “Best Syndicated Project in Asia Financing Project in Asia shantytown reconstruction project is the first of its kind in Beijing featuring commercial Pacific of 2016” awards from the Asia Pacific Loan Market Association. Pacific of 2016 bank-led financing and government purchasing. As the lead bank and correspondent & bank for the project, CITIC Bank provided it a credit line of RMB 7.94 billion in Best Syndicated Project in Asia Pacific of 2016 syndicated loans for a term of 8 years. By the end of 2017, a total of RMB 5.3 billion Support for Emerging Industries and the Upgrading of the loans were disbursed for the project, including RMB 2.868 billion from the Bank and Manufacturing Industry RMB 2.432 billion from other banks.

In 2017, the Bank tilted its credit as well as the areas mentioned in Supporting the Construction of Beijing Section of the policy to support the development of Made in China 2025 for prioritized Beijing- Passenger Line strategic emerging industries and high- development. The Bank’s credit policy end manufacturing industry which are chiefly supported “Three Bigs (big The Beijing-Shenyang Passenger Line is a trunk line project for the construction of a “four knowledge- and technology-intensive, culture, big health and big environmental vertical and four horizontal” railway network. This high-speed rail line starts from the consume fewer material resources, protection), Three Highs (high-tech, Xinghuo Railway Station in Beijing and passes through Xinglong County and Chengde and feature huge growth potential and high-end manufacturing and high-quality of Hebei, Chaoyang and Fuxin of Liaoning before joining up with the Shenyang Railway comprehensive profitability, such as service and consumption) and Three Station, a rail hub in Shenyang. The line is due to be open for traffic at the end of 2019. energy conservation and environmental News (new energy, new materials and Under this project, the Bank provided loans of RMB 1.63 billion to support the building of protection, new-generation information new models)”, including enterprises from the Xinghuo railway station complex in the Beijing section and land development in the technology, biology, high-end equipment strategic emerging sectors such as new surrounding area. By the end of the year, the project progressed smoothly, with the balance manufacturing, new energy, new materials, new energy, NEVs and high- of various loans from the Bank at RMB 349 million. materials and new energy vehicles, end equipment manufacturing. 36 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 3 Duty Performance and Obligations 37

Supporting the Development of Enterprises in the Lithium Support for Social Undertakings and the Cause of Carbonate Industry People’s Livelihood

The lithium sector is an emerging industry in the new energy and new materials fields. The Bank’s Xining Branch vigorously supported a company engaged in the research, In 2017, the Bank actively supported and infrastructure. Moreover, the Bank development, production and sales of cathode materials for new energy batteries. The borrowers with relatively solid vigorously supported public utility and company has its own IPR on the “industrialization of lithium-ion ferrous phosphate comprehensive strength in cities along infrastructure operators by addressing the Belt and Road to build projects their financial needs through securitization, and relevant new types of energy storage materials” and mainly operates three key concerning urbanization, shantytown and dominant players in the sectors of product series including lithium cobalt oxide, ternary lithium manganese oxide and reconstruction, land management, healthcare and educational services with lithium-ion ferrous phosphate, which are applied to batteries of mobile phones, laptop indemnificatory housing, industrial parks evident competitive advantages. computers and digital products, as well as power batteries and energy storage batteries. In 2017, the Bank offered a credit line of RMB 60 million for it to purchase raw materials and to meet its other needs. Supporting the Building of Telemedicine Projects

The Bank’s Shijiazhuang Branch entered into a telemedicine strategic cooperation agreement with a hospital in Hebei in September 2017 to support its efforts to build a telemedicine system, providing tele-consultation and inter-hospital coordination services to grassroots hospitals, promoting vertical flows of medical resources, and facilitating cooperation between major hospitals and medical institutions at grassroots and county levels. The project would greatly enhance regional medical resources sharing in Baoding, boost the diagnosis and treatment level of county hospitals and provide convenience to people seeking medical services.

Support for the Development of Cultural Industries

In 2017, by adhering to the credit projects had stable cash flow, and whose principle of “closely following industry space for future growth was still huge, policies, actively carrying out credit such as radio and television network business, selecting premium projects operation and broadcasting, press and or enterprises on the basis of industry publishing; and offered preferential differentiation, encouraging innovation support to cinemas, theaters for artistic and strengthening risk control” for shows, and national and provincial key Implementation of National Policies cultural industries, the Bank actively got cultural industrial parks which are run involved in such industries where industry steadily, managed in a standard manner, development and business model was financially healthy, and have relatively Supporting the Real Economy relatively mature, where enterprises or high market shares.

the Bank posted a balance of loans In 2017, on the basis of meeting involved itself in industries plagued granted to the manufacturing industry of Supporting a Digital Film Studio Industrial Park the requirements of national macro by overcapacity; developed white-list RMB 303.218 billion policies, industry policies and regulatory criteria and favored industry leaders. Approved to be established by the State Administration of Press, Publication, authorities, the Bank supported the The Bank granted loans preferentially to 18.52% Radio, Film and Television (“SAPPRFT”) in 2010, Wuxi Studio is the only national- financing platforms of local governments; the sectors of manufacturing, property level digital film industrial park in China, and a key project to be developed by the 303.218 2017 actively selected key projects for development, leasing and business SAPPRFT as a parallel to the China Film & TV Base in Huairou, Beijing. The Bank the implementation of major national services, wholesale and retail. By the 372.152 2016 considered the project to well reflect the efforts taken by the local government to strategies; offered preferential support end of 2017, the Bank posted a balance develop the cultural industry, and be a pioneer in China’s technology-based film and to the sectors of railways, highway of loans granted to the manufacturing television products and going to become a key force for film post-production in the transportation, port construction, water industry of RMB 303.218 billion, down country. As such, the Bank provided a fixed asset loan of RMB 850 million to build conservancy, environmental protection 18.52%, which accounted for 18.27% the Wuxi Studio industrial park project, marking its effort to support the development and real estate; strengthened risk of all corporate loans, down 4.15 of China’s cultural industries. monitoring and management of existing percentage points from the end of the wealth management business; prudently previous year. 38 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 3 Duty Performance and Obligations 39

The Bank’s Loans by Sector Highway industry: The Bank strongly equity funds private supported the 2016 - 2018 national key structured financing projects and construction of local highway 2017 2016 networks, and preferentially granted on- balance sheet project loans. Support for innovative Industry government national key projects was realized through services models Loan Balance Share in Corporate Loan Balance Share in Corporate procurement of letters of (RMB 100 million) Loans (%) (RMB 100 million) Loans (%) innovative models, such as structured guarantee

financing, private equity funds, letters PPP of guarantee, buyer’s credit, PPP and buyer’s credit Manufacturing 3,032.18 18.27 3,721.52 22.42 government procurement of services. Transportation, warehousing and postal services 1,465.74 8.83 1,576.66 9.50 Supporting the Development of Highway Logistics Enterprises Production and supply of 457.72 2.76 447.43 2.70 power, gas and water A Guiyang-based technology company was the biggest highway logistics online Wholesale and retail 1,775.26 10.70 2,231.18 13.44 platform in China, committed to helping improve the low-efficiency and scattered 50 traditional logistics industry, providing truck drivers and consigners with an efficient Real estate development the Bank granted RMB 50 million 2,920.55 17.60 2,515.64 15.16 and accurate vehicle-freight matching platform and correcting the information loans to the company, helping it Water conservancy, asymmetry between consigners and drivers. The platform, involving around 4.5 complete automatic payments environment and public utility 1,702.35 10.26 1,373.65 8.28 million truck drivers and 880,000 consigners, released over 6 million messages on for more than 8,000 corporate management average about freight sources each day, and matched orders with total freights of accounts each day Leasing and business services 2,184.12 13.16 1,778.07 10.71 around RMB 1.7 billion each day, with the daily ETC top-up amount exceeding RMB 90 million. The Bank served the customer chiefly through “Fintech” to meet Construction 762.82 4.60 885.56 5.34 its demand for high-frequency payments by clients, intelligent cash sorting, and information automation, designing a product solution closely integrating “scenario Public and social organizations 181.73 1.09 194.12 1.17 + technology + finance”. By the end of 2017, the Bank granted RMB 50 million Others 2,114.51 12.73 1,874.34 11.28 loans to the company, helping it complete automatic payments for more than 8,000 corporate accounts each day. Total corporate loans 16,596.98 100.00 16,598.17 100.00

Prudently Formulating Credit Policies for High-Profile Industries Government financing business: As far as government financing business was concerned, by consistently adhering orderly development In 2017, the Bank adhered to an overall product allocation structure by making to the overall principle of “orderly prudent risk preference on the precondition appropriate adjustments, carried out real development, structural optimization of compliant operation, and stressed the estate-related credit business by firmly and classified management”, the Bank overall alignment of business scale and profitability following the basic principle of coordinated vigorously supported the financing need of principle level with risk taking on the principle development of profit, quality and scale, government procurements of services and of “risk coverage with income”; raised prudently controlled business involvement in structural classified PPP projects with committed repayment optimization management comprehensive income and RAROC, and tier-3/4 cities with huge destocking pressures sources, and avoided relevant business in shifted from controlling risks to operating and facing a supply-demand imbalance, high-risk areas and regions. risks, by using advanced risk quantification mainly supported old city reconstruction techniques and strengthening economic projects in tier-one and some tier-two cities capital management. that demonstrated the sense of social Supporting Water Conservancy and Renovation Projects Real estate industry: The Bank maintained responsibility and were backed by local the percentage of credit assets allocated governments, and continued to take a list- The Bank’s Shanghai Branch was actively involved in a water conservancy and to the real estate sector, but optimized its based management approach to the sector. renovation PPP project in Anhui built and operated by a Shanghai-based major SOE, and became a joint lead bank of syndicated loans for the project. Shanghai Taking the Lead in Entering the Rental Housing Market Branch and CITIC Financial Leasing Co., Ltd., a subsidiary of the Bank, jointly developed a prepayment sale-and-lease-back solution for the customer, finally “A combination of rental and purchase” is a key part of the long-term development mech- realizing total financing of RMB 700 million, and helping the customer address fund th anism for the real estate sector proposed at the 19 National Congress of the CPC. And payment pressures as banks usually find it difficult to get involved in PPP projects the Bank took the lead in carrying out the business. On 30 October 2017, the Bank signed a during the formation of immovable assets. In 2017, Shanghai Branch and CITIC strategic cooperation agreement for an RMB 30 billion long-term rental housing guarantee Financial Leasing worked together and completed the disbursement of the first fund with Country Garden, under which both sides agreed to cooperate in the development, financial leading fund worth RMB 300 million. building, refurbishment, holding, operation and later-stage exit of long-term rental housing projects, and jointly promote product innovation under the guarantee fund. 40 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 3 Duty Performance and Obligations 41

Optimizing the Loan Structure of Regional15 Economies Implementing the Policy of Inclusive Finance

15 Geographically, the “eastern region” specified 17 According to the regulatory criteria set herein corresponds to the “Yangtze River In 2017, the Bank stepped up efforts to protection, education, tourism, healthcare In 2017, according to the regulatory “professionalism and focus”; established by the CBRC, small and micro enterprises Delta”, “Bohai Rim Area (including the optimize the loan structure of regional and agricultural products processing. requirements of the Implementation Plan a service system integrating “special -related loans include: loans granted to small Head Office)” and “Pearl River Delta and enterprises, micro enterprises, individual economies, and made a scientific layout By the end of 2017, the balance of loans for the Establishment of Inclusive Financial institutions, special process, special West Strait” disclosed in the annual report based on the characteristics of relevant Business Divisions by Medium and Large- team, special products, special system businesses and owners of small and micro (excluding Dalian Branch); the “central region” granted by the Bank to the western region enterprises. regions. For the western region, the Bank Sized Commercial Banks, the Bank means the following areas where tier-one stood at RMB 389.152 billion, up 2.63%, and special resources”; tilted its credit made allocations mainly to the sectors worked earnestly to establish an inclusive branches of the Bank are located: Taiyuan, and accounting for 13.08% of the total; that policy mainly to big consumption, modern Hefei, Nanchang, Zhengzhou, Changsha and of transport infrastructure investment, finance development model aligned with to the eastern region was RMB 2,065.270 services and strategic emerging sectors; Wuhan; the “western region” refers to the environmental management, resources & its actual conditions, set up an inclusive set aside a special credit quota for small following areas where tier-one branches of billion, up 14.32% and representing 69.41% energy, high-end equipment manufacturing finance leading group and working group and micro enterprises-related financial the Bank are located: Chengdu, , of the total; that to the northeastern region and tourism, among others. For the eastern headed by the Chairperson of the Bank, Xi’an, Kunming, Nanning, Hohhot, Urumchi, was RMB 99.693 billion, down 6.38% and services; prescribed that tolerance of NPLs Guiyang, Lanzhou, Xining, Yinchuan and region, the Bank’s allocations mainly covered formulated the Development Plan of granted to small and micro enterprises accounting for 3.35% of the total; and that Lhasa; the “northeastern region” includes the industries of transport, urban infrastructure China CITIC Bank for Inclusive Finance, should not exceed the NPL ratio of Dalian Branch, in addition to the“northeastern to the central region reached RMB 421.160 investment, electronic information technology, and actively advanced the centralization various loans of the Bank by more than 2 region” disclosed in the annual report. billion, up 12.50% and representing 14.16% high-end equipment manufacturing, energy of review, approval, disbursement and percentage points; and set up 28 special 16 Due to rounding reasons, the sum of the loans of the total. conservation & environmental protection, new post-lending management. Meanwhile, of the above regions was more than the total small and micro enterprise-dedicated By the end of the year, the Bank’s business loans; data provided herein shall prevail. energy, environmental management, modern the Bank explicitly proposed offering institutions in “4 cities and 11 provinces”. outlets in the western region numbered 257, 17 services industries, healthcare, education and more preferential policy support to small By the end of 2017, the balance of loans on par with the previous year, and accounting tourism. For the northeastern region, the Bank and micro enterprises, agriculture, rural to small and micro enterprises stood for 17.91%, down 0.14 percentage points principally made allocations to the sectors of areas and farmers, and poverty alleviation at RMB 525.462 billion, accounting for high-end equipment manufacturing, energy from the previous year; a total of 1,990 undertakings during the development of 17.97% and representing an increase of conservation & environmental protection, ATMs were placed, representing 21.41% inclusive finance. 9.73% over the previous year. In particular, of the total, slightly higher than the previous education, healthcare and modern agriculture. Financial services to small and micro the balance of loans to small enterprises year. The Bank had 7,444 employees in the For the central region, the Bank’s allocations enterprises. In fully implementing the amounted to RMB 325.495 billion, up western region, accounting for 13.95%, were mainly made to the sectors of high- requirements of the Guiding Opinions on 1.28%; and the balance of loans to micro end equipment manufacturing, environmental slightly lower than the previous year. the Development of a Special Operation enterprises stood at RMB 107.572 billion, Model of Small and Micro Enterprises- up 27.64%. In addition, the Bank disbursed The Bank’s Loans by Region related Financial Business of China CITIC personal loans to over one million small Bank, the Bank defined its operational and micro enterprise owners through its thinking and development model as credit card service. 2017 年 2016 年 Region Loan Balance Loan Balance Share (%) Share (%) (RMB 100 million) (RMB 100 million) Balance of loans to small and micro Balance of loans to small enterprises Balance of loans to micro enterprises enterprises (RMB 100 million) (RMB 100 million) (RMB 100 million) Eastern region 20,652.70 69.41 18,065.36 67.75

Central region 4,211.60 14.16 3,743.58 14.04 9.73% 1.28% 27.64% 5,254.62 2017 3,254.95 2017 1,075.72 2017 Western region 3,891.52 13.08 3,791.92 14.22 4,788.61 2016 3,213.79 2016 842.80 2016 Northeastern region 996.93 3.35 1,064.82 3.99

Total loans 29,752.7416 100.00 26,665.68 100.00 Supporting the Development of a Small Enterprise

Supporting an Industrial Group with High Employment Rate A company located in the Hefei High-Tech Industrial Development Zone was founded in June 2004. With the relocation of office area and the continuous growth of orders, it The second symposium of the CPC Central Committee on the work in Xinjiang explicitly found itself running short of working capital, and hoped to address the issue through required that higher priority should be given to the promotion of employment, and the financing. On the one hand, its existing size would leave it facing high costs if it sought development of the textile and apparel industry be taken as a strategic measure and vigorously direct financing from outside; on the other hand, as an asset-light enterprise, it had limited supported so as to spur employment. A Xinjiang-based group sought local expansion under fixed assets; if it resorted to banks for indirect financing, the amount of funding could not the guidance of the Belt and Road Initiative, and planned to focus on the textile and apparel meet its current capital turnover need. As it was trapped in such a dilemma, the special sector and invest RMB 40 billion in a green and eco-friendly yam demonstration area and small and micro business institution of the Bank’s Hefei Branch came to it after learning a regenerated fiber industrial park. In 2016, the Bank granted it a credit line of RMB 230 the situation, successfully provided it RMB 3 million in funding by fully leveraging the million, and completed a disbursement of RMB 682 million to it together with CITIC Financial advantage of the Bank’s “government-bank-guarantee institution” product which supports Leasing. In 2017, the Bank offered it a credit line of RMB 4 billion, among which RMB 1 billion premium small and micro enterprises and enterprises related to “agriculture, rural areas would be dedicated to the operation of projects in Xinjiang. and farmers”, solving its difficulty of working capital shortage. 42 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 3 Duty Performance and Obligations 43

Efforts were made to build a learning- striving to be a qualified party member”, Participation in Development of oriented leadership. The Bank made with party organizations at all levels the Banking Sector a full-year learning plan, held three launching over 800 such activities. (expanded) learning conferences of the Measures were taken to make political theoretical study center of the Head As a standing member of the Green Credit of regional tourism resources, and build a life within the party more serious. The Office’s party committee, and invited Committee under the China Banking new business form of “Internet + tourism”. Bank adhered to the basic systems experts to tutor party members in the Association, the Bank actively participated in Furthermore, the Bank actively supported and institutions, including party guidelines of the 19th National Congress the various work arranged by the committee. the China National Tourism Investment & branch general meetings, meetings of the CPC and important rules and In 2017, the Bank attended the working Financing Promotion Conference, and jointly of party branch committees, party regulations of the Party. At the two meeting for the assessment and trial rating of released the quality tourism projects of 2017 group meetings, and Party lectures, training courses for cultivating the party green credit business of the banking industry, with the National Tourism Administration, meetings of democratic life, meetings of spirit of senior management opened at and the workshop on practical techniques for contributing to the development of the tourist party organization life and democratic the China Executive Leadership Academy, the management of environmental and social economy. appraisal of party members. By strictly Pudong, all members of the Head Office’s risks; examined the preparation of teaching standardizing relevant contents and The Bank continuously stepped up party committee, party secretaries of all materials on green credit and reviewed such procedures, the Bank seriously held exchanges with its peers, participating in four branches and party branch secretaries of materials as a member of the expert steering the annual meeting of democratic life, exchange workshops for audit institutions, all HO departments received training in committee and editorial committee for these soliciting opinions and suggestions and discussing a number of subjects rotation, with Party Secretary Li Qingping materials. ranging from “informatized audit”, “economic serving as the class monitor and making bank-wide and making practical In March 2017, the Bank signed a strategic responsibility audit”, “overseas audit”, special party lectures. rectifications. Moreover, the Bank cooperation agreement with the National “audit methods for cross-financial risks and earnestly implemented a dual party Efforts were made to advance the Tourism Administration, under which both Internet financial risks” and “internal control organization life system. Led by normalization and institutionalization of sides would cooperate to develop a tourism management from an auditing perspective”. Party Secretary Li Qingping, the studies on the theoretical and practical investment project library, innovate in Moreover, the Audit Department of the Bank party committee of the Head Office issues of party building. The Head tourism investment and financing platforms, was honored “National Advanced Internal attended the meetings of party Office opened 7 rotational training support the innovation and development of Audit Collective” in 2017 by the China branch organization life, and offered courses for cultivating the party spirit tourism enterprises, promote the integration Institute of Internal Audit. onsite instructions on the meetings of at the China Executive Leadership democratic life and party organization Academy, Jinggangshan; over 3,000 party members of the Bank participated life to the party committees of some in centralized learning sessions in Yan’an branches and HO departments. Promotion of Party Building and Pudong, with education within the 71 party gradually realizing full coverage. Implementation of the Party’s guidelines The Bank organized exchanges over held the internal party congress, the experiences of undertaking studies and organized 71 representatives on the theoretical and practical issues to attend the party congress of the The Bank earnestly completed the task (expanded) learning conference of the of party building, and organized 7 Group of electing delegates to the 19th National theoretical study center of the Head advanced grassroots party organizations Congress of the CPC. According to the Office’s party committee, organizing the to exchange their work experiences on requirements of the Central Committee of heads of its branches, subsidiaries and the spot. The Bank also carried out party 21,000 the CPC and the Party Committee of the HO departments to study the guidelines day activities under the theme of “making th greater contributions from your post and Group, the Bank organized its internal of the 19 National Congress of the CPC, the Bank organized over 2,000 party organizations at all levels to prepare and inviting experts to offer on-the-spot party organizations and 21,000 party for the nomination and recommendation explanations. The Bank also prepared members to listen to and watch the Developing the Online Payment Platform for Party Membership Dues and printed the Dictionary for Studying live broadcast of Secretary General of relevant delegates; held the internal th Xi Jinping’s report party congress, and organized 71 the Reports of the 19 National Congress CITIC Dang Fei Tong is a comprehensive management platform of the Bank of the CPC, purchasing and distributing representatives to attend the party integrating the payment and management of party membership dues and relevant over 70,000 learning materials of five congress of the Group, successfully education and services. The platform effectively resolved the difficulty in collecting types to all party members bank-wide. completing the task of election. party membership dues in the manual mode, innovated in the methods and channels Moreover, the Bank formulated a work of paying party membership dues and the management model for such dues, and The Bank thoroughly studied and plan for studying and implementing the th facilitated the informatization of party building. Furthermore, by fully leveraging implemented the guidelines of the 19 th guidelines of the 19 National Congress the advantage of the Bank’s account management system, the platform realized the National Congress of the CPC. On of the CPC, and chiefly arranged for payment of party membership dues through various channels including the Bank’s the opening day of the 19th National nine key tasks under four categories, WeChat banking, mobile banking, online banking and official website as well as Congress of the CPC, the Bank i.e. learning & training, special lectures, interbank payment. It could also be flexibly embedded into a number of application organized over 2,000 party organizations theme activities and conversion of platforms such as official WeChat accounts and APPs. In 2017, the Bank realized and 21,000 party members to listen to achievements, with a view to “focusing the online application of the platform among over 2,000 party organizations and and watch the live broadcast of Secretary on the central task, serving the overall 20,000 party members, and promoted its use to the public on a full scale beginning General Xi Jinping’s report. During the interests, highlighting characteristics and from the end of the year. National Congress, the Bank held an covering all the staff”. 44 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 3 Duty Performance and Obligations 45

Promotion of Construction of Party Conduct and Clean Maintaining Social Stability Government In 2017, the Bank worked vigorously risks of telecommunication frauds, In 2017, the Bank strengthened the talking with the party secretaries and to maintain financial security. By the and froze the accounts and canceled construction of an honest party and secretaries of discipline inspection end of the year, the Bank intercepted the transactions that were used for clean government. The Bank conducted committees of branches, and urged Head a total of 3,446 risk events involving telecommunication frauds. The Bank warning education by closely monitoring Office officials to actively perform “dual the counterfeiting or alteration of bills, successfully safeguarded customers’ critical links, circulated the typical duties on one post”. Meanwhile, the Bank use of non-reserved seals to conduct interests and reduced destabilizing cases that violated the requirements also had collective talks with secretaries business, and conducting business factors in the society. The Bank actively of the Eight-Point Regulation of the of discipline inspection committees with forged ID cards or others’ names; cooperated with public security organs, Commission for Discipline Inspection and established a work report system and avoided potential losses of RMB immediately reported destabilizing of the Central Committee of the CPC, for these secretaries to prompt them 143 million for customers or itself. factors once spotting them, assisted compiled and distributed typical to seriously perform their supervisory The Bank continuously made efforts the police in emergency criminal cases disciplinary cases inside and out of the duty. The Bank took measures to to combat telecommunication frauds and helped maintain social stability and system. The Bank strictly implemented strictly prevent the resurrection of bank-wide, helped customers identify harmony. the “two responsibilities” of strengthening “four undesirable work styles”, and party self-discipline; signed the firmly implemented the requirements commitment letters for performing the of the Eight-Point Regulation; carried Cooperating with Public Security to Capture a Fugitive “two responsibilities” at all levels of party out special rectifications of the “four organizations to hold them accountable; undesirable work styles” and a centralized At 15:00 on 5 December 2017, a woman came to the Bank’s Guiyang Branch to activate conducted report on and assessment of investigation into and rectification of the credit card she held in hand. The lobby manager of the branch received her, checked party building work; continued with the illegal purchase of high-grade liquor with her identity and helped with card activation according to due procedures. At 16:15, practice of HO party committee members the public fund of the Bank. the branch received a warrant of arrest against women from the local public security bureau; the lobby manager then froze her credit card and reported the situation. The branch immediately launched its emergency early plan. At the noon of 6 December when the suspect reappeared, complaining she still couldn’t use her credit card activated the Safeguarding Financial Order day before, the lobby manager immediately informed the police, and tactfully controlled her mood to hold off for more time. Soon policemen came and took away the suspect. The whole process of capturing was very smooth, without any influence on the branch Strengthening Anti-money Laundering Management or its customers. 1,550,000 The year of 2017 witnessed the effective around 1.14 million reports on large- the Bank confiscated 20,275 operation of the Bank’s anti-money sum transactions, among which about Intercepting Online Pyramid Scheme Frauds counterfeit RMB banknotes, down launching mechanism, as the Bank 50,000 involved suspicious transactions. At around 14:30 on 3 December 2017, a senior customer came to the Bank’s Suzhou by 1.87%, and the total amount established the annual reporting and In 2017, 7 branches of the Bank were of the counterfeit banknotes was Branch, applying for the opening of a debit card. The handling teller asked routine RMB 1,550,000, up 4.42% over the significant events reporting system, rewarded by their respective local PBOC questions about account opening, learning that the customer wanted to use the previous year and amended internal control rules on offices or public security bureaus, and 15 the reporting of suspicious large-sum branches received a rating of A for their debit card to transfer RMB 13,579 to the account of a company. And the customer transactions and customer identification. annual anti-money laundering work from looked very anxious, saying the transfer must be completed before 7 December, By the end of the year, the Bank made the PBOC. otherwise it was impossible to obtain the promised equity interest. The information immediately got the teller on alert, who continuously warned the customer of fund Preventing the Circulation of Counterfeit Money transfer security, and suggested potential security risk about the transfer. The accounting manager of the branch also came over to make an enquiry, learning that the customer lately joined a WeChat group, whose administrator promised members In 2017, the Bank put in large amounts business conditions. All the branches and that they would each get a commemorative coin made of 10g gold and 100g silver, of manpower and resources to effectively sub-branches of the Bank organized their a certain original stock worth RMB 100,000 and credit points which could redeem prevent the circulation of counterfeit employees to promote the fight against goods worth RMB 100,000. The accounting manager and the teller both judged that money, and helped maintain a stable counterfeit money at business outlets, the customer was possibly trapped in an online pyramid scheme, and immediately financial order in the country. In November, marketplaces and public transit hubs, and reported the situation to the police after pacifying the mood of the customer. Two the Bank invited an RMB business expert raise the anti-counterfeit money awareness policemen then arrived at the branch, telling the customer this organization had from PBOC to train its key cashiers on of the masses. By the end of 2017, the left investigation records in the public security networking system, and immediately anti-counterfeit RMB banknotes, who Bank confiscated 20,275 counterfeit RMB offered detailed explanations for the banknotes, down by 1.87%, and the reporting the case and the WeChat group concerned to the national anti-fraud security features and key identification total amount of the counterfeit banknotes center. The customer finally came to his sense, and thanked the branch staff for methods of RMB banknotes of all versions, was RMB 1,550,000, up 4.42% over the their help and sense of responsibility. and answered questions based on actual previous year. Chapter 4 Customers and Services 47

Chapter 4 Customers and Services In 2017, the Bank continued to adhere to guarantee and further improve the quality the “Customer Focus” philosophy, strove to of the services. By the end of the year, the provide satisfactory products and services wealth management products issued by Protection of Customer Rights and for customers to realize the growth of the Bank have generated direct earnings Interests the value that customers own. The Bank of RMB 45.656 billion for customers, Improvement for Service Quality completed financial services so as to representing an increase of 19.92%. Enhancement for Customer Experience Protection of Customer Rights and Strengthened Management of Interests Suppliers

Protection of Consumer Rights and Interests

The Bank strictly complied with the a sound management system of protection Law of the People’s Republic of China of consumer rights and interests was built on Protection of Consumer Rights and to ensure that the protection of consumer 5,580,365 Interests and adhered to the “Customer rights and interests can be carried out in an Focus” philosophy. It earnestly effective and orderly manner. the Bank’s telephone banking received safeguarded the rights and interests The “Double-recording” System The 5,580,365 calls from customers, of consumers and built a harmonious Bank formulated the Measures for the representing an increase of 4.58% relationship with consumers through Administration of Audio and Video formulating strategic plans of protecting Recording of Wealth Management consumer rights and interests, perfecting Products and Consignment Products of the management organizational structure of China CITIC Bank, clarified the regulations protecting consumer rights and interests, for the implementation of audio and video 45.656 strengthening supervision and inspection of recording in the sales area, and revised protecting consumer rights and interests, the Measures for the Administration of comprehensively assessing protection of the Bank have generated direct earnings the Suitability of Individual Investor Fund of RMB 45.656 billion for customers, consumer rights and interests, carrying Sales to earnestly implement the idea of representing an increase of 19.92% out publicity and education activities about suitability in selling wealth management financial knowledge, organizing training products and effectively protect the in protection of consumer rights and rights and interests of small and medium interests for employees, enhancing service investors. In the management of service levels and optimizing the management of quality, the Bank requires that each 23,000 complaints channels. A Refined Top-level Design The Bank

more than 23,000 companies actively paid continued to promote the implementation through the platform, which provides local of the 2015-2017 Strategic Plan for businesses with convenient social services Protection of Consumer Rights and 45.656 Interests of China CITIC Bank. The special

committee for protection of consumer the Bank have generated direct rights and interests under the Board of earnings of RMB 45.656 billion for Directors and the Office of Protection of customers, representing an increase 142 Consumer’s Rights and Interests under the of 19.92% high management fulfilled their duties. And

The Bank’s business outlets have covered 142 large and medium-sized cities in 31 provincial-level administrative regions (except for Hong Kong, Macau and Taiwan) 48 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 4 Customers and Services 49

sales documents, especially the statement WM manager must act according to the Blocked the Facility Installation of Card Stealing “double recording” system and provide risk of risk disclosure and instructions of rights warning and risk assessment tests for each and interests; confirm customers copied At 20:05 on 4 January 2017, employees of the Xi’an Branch of the Bank performed on-site customer so as to fully protect consumer the risk confirmation statements. inspection of ATMs at Jindi Plaza, Qujiang, Xi’an. During the playback of the monitoring rights and interests. The Bank has regularly The Bank provides that the salespeople of video, a suspicious person with a cap and a face mask was found to have taken suspicious organized mysterious visits to outlets to WM products must give a comprehensive items from an ATM of the Bank at 19:13. The on-site employee made a preliminary check and evaluate the implementation of introduction to the products, including judgment that the suspect attempted to steal customer bank card information with high- these regulations. the duration, investment direction and tech methods to clone bank cards and steal customer funds in other places or even overseas. Strict Regulations on Sales of Wealth income estimates in different scenarios, The Bank immediately launched an emergency plan, reviewing the monitoring video to Management Products In the sales of to customers when selling the products; sort out the case overnight, retrieving transaction information and contacting for peer wealth management products, the Bank meanwhile fully disclose the risk of WM collaboration. At the same time, the Bank arranged for security personnel to observe the site strictly complied with the requirements of products, explain the most unfavorable and established a communication mechanism with the police. At 15:56 on 6 January, when the Measures for the Administration of the investment situation and investment the suspect came again to commit crimes at the ATM of Jindi Plaza, the staff of the Bank Sales of Wealth Management Products results in a highly accessible way and followed the suspect under the direction of the police. Soon, the suspect discovered the staff of Commercial Banks, and specifically with necessary examples, and confirm and attempted to get rid of the tracking by speeding up, retrograding, running the red light, formulated the China CITIC Bank customers’ complete and accurate making U-turn and other dangerous driving methods. Finally, with the assistance of the Personal Wealth Management Products understanding. police, the staff successfully subdued the suspect and the police quickly found a number of Sales Process to strictly regulate the The Bank provides that the salespeople tools for committing crimes on the car of the suspect. sales process and protect the rights and of WM products shall not make publicity interests of customers. The Bank’s official or commitments of the products’ principal website is the disclosure channel of wealth and income which are inconsistent with the Safety Protection for Customer Information management products information. products to customers, and shall not guide The Bank provides that the salespeople of customers to purchase the products by The Bank strengthened the protection and strictly controlled the access to and WM products must effectively identify the giving compulsory or misleading publicity. of customer information by integrating the management rights of the business customers’ identity before sales; introduce The salespeople of WM products are various measures as acting in accordance system. The Bank adopted process the sales business process, charge prohibited from going through the trading with the requirements of national grade approval and data desensitization to standards and ways of WM products to process like WM products subscription, protection standards, designing regulatory prevent data leakage during the internal customers; understand the assessment application and redemption, from keeping system requirements and building related circulation and usage, and took various of customers’ ability of risk acceptance, the certificate media (files or USBKEY) on business systems. It strictly isolated measures like mobile media control, duration of investment and liquidity behalf of the customers, and from making the business network environment and networking behavior restrictions, mail requirements; remind customers to read commitments of income or bearing losses. the non-business network environment, sending detection and screen watermarks prevented illegal access to data, properly to prevent the data leakage caused by Safety Protection for Customer Funds encrypted sensitive customer information, non-standard daily operations.

Information Technology Guarantee when Information technology risks occur. Safety Protection for Outlet Operation ensure the authenticity of The Bank established an e-channel Customer Service Guarantee The Bank customer transactions transaction risk control system to implement adopted the HTTPS protocol to encrypt In accordance with the requirements of hired were not well reviewed, images of differentiated safety certification measures data messages in e-channel transactions Fire Protection Law of People’s Republic video monitoring systems were not clear, including SMS dynamic pass- based on the risk status of the customer and used a variety of security authentication of China, Regulations on Internal Security overall fire-prevention systems at premises words, USBKEY digital certificate transaction environment, and to prevent methods to ensure the authenticity of Enterprises and Institutions and other rented were not complete, security signatures, fingerprint authenti- fraud transactions. The Bank regularly of customer transactions, including laws and regulations, the Bank further personnel were understaffed and other cation, face recognition, gesture organized security penetration tests for SMS dynamic passwords, USBKEY strengthened the business security issues, the Bank developed a rectification passwords, and privacy questions and answers Internet applications to promptly identify digital certificate signatures, fingerprint of outlets, and fully played the role of plan to further strengthen management potential risks and carry out corresponding authentication, face recognition, gesture protecting operation management. for key posts and security personnel, measures, and comprehensively monitored passwords, and privacy questions and According to the Rating Measures for the stepped up formulating the corresponding and promptly shut down the phishing answers. To control the risk of capital Security of China CITIC Bank, the Bank management practice and implementation websites against the Bank to prevent transactions, the Bank established continued to carry out on-site rating task rules, and assessed security operational customers from being cheated and losing inspection mechanism for a single for branches’ safety and security. Led risks with quantified indicators. Focusing money. The Bank continued to strengthen transaction limit and daily cumulative limit. by the Head Office, the Bank formed a on preventing emergencies happened the information technology emergency To prevent the client program from being number of rating groups to conduct a at business outlets and self-service response mechanism and formulated the adversely analyzed, the Bank enhanced comprehensive on-site inspection for equipment such as robbery, theft, fire and Contingency Plan for Information Technology the security of mobile banking client. At the construction and management of terrorist attack, the Bank carried out drills Outsourcing Management of China CITIC the same time, the Bank established a the civil air defense, physical defense, for emergency contingency plans and Bank, which clarifies the division of labor, counterfeit mobile phone client monitoring technical defense and fire protection at training for “119” National Fire Prevention basic processes, risk prevention, early mechanism for various Apps publishing the office area of branches’ outlets, and Day publicity by combining with the warning and disposal, drills and updates platforms, which can immediately withdraw made the assessment report. In light of security precautions and risk points, which of outsourcing management emergency the detected counterfeit mobile phone these major problems found during the further enhanced the safety awareness organizations, to protect customer funds clients. rating process that security personnel and practice skills of the Bank. 50 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 4 Customers and Services 51

Improvement for Business Continuous Management is “zero disturbance” at the hall of the other risk management and control outlet. Outlets are required to create a mechanisms, the Bank assured the safety spacious, comfortable, free, safe and of customers’ business transactions. At The Bank formulated the China CITIC plan for recovering 28 key services. On casual environment, so that customers present, the smart counter has covered Bank Business Continuity Strategy, 24 October, the Bank carried out a bank- can possibly keep good moods during the 50 businesses of 6 categories including clarifying the business continuity wide business continuity drill, simulating whole process of enjoying service and really bank cards, investment and wealth management standards, implementation the emergency handling when electronic gain pleasant spiritual enjoyment from the management, customer services, overseas principles and direction; formulated the channels, smart counters, overseas beginning to the end. finance, credit cards and e-banking, and China CITIC Bank Business Continuity credit card acquiring and other business “Safe and attainment”: Outlets are required its replacement rate of similar services Plan and Overall Emergency Response operations fail to continue, to improve to solve the problem that guaranteeing reached approximately 65.8%. As of the Plan; and formulated a special emergency customer service capabilities. customers’ personal safety and property end of the year, the Bank had 4,024 sets of safety while guaranteeing the Bank’s good smart counters, including 563 vertical sets service for customers. and 3,461 desktop sets. Improvement for Service Quality Intelligent Customer Services. In 2017, Flexible Services for Small Business. the Bank continued to further promote In 2017, the Bank introduced a variety the intelligent transition of the hall of of flexible repayment methods for small outlets and provided more smart counters. business, allowing small and micro Great Efforts in Capacity Improvement The “Smart Counter” utilized many enterprises to select the most interest- advanced service mechanisms, such as saving and most-matching repayment The Bank aimed to create the “Bank with “welcoming with hands raised, greeting with face detection and recognition, remote methods based on their own capital the Best Customer Experience”, and smiles, treating in polite manners, handling identity review, integrated contract signing, turnover conditions. The Bank also dynamic verification of mobile phone developed the borrowing and returning 4,024 tidy made great efforts to improve customer business at once, caring for customers with satisfaction through continuously promoting enthusiasm, delivering bills with reminder, numbers and electronic signature, which facility, which allows customers to make Sweep the Bank had 4,024 sets of smart the “Ten Ones” service process, 6S and seeing off customers with eye contact.” all greatly reduce the difficulty and time of withdrawals and repayments at any time counters, including 563 vertical sets business process and comprehensively through online banking, with interests being management model, Smart Counter, By the end of last year, the “Ten Ones” and 3,461 desktop sets Consolidate 6S comprehensive financial services and so on. and “Heptalogy” standards were posted at improve customer experience. Meanwhile, accrued based on the number of days of through key information protection and loan use. The Implementation of “Ten Ones” Service conspicuous positions at all outlets of the Bank, which represents the Bank’s service Clean Safe Procedure. The Bank integrated service commitment to the public, and reflects standards and processes of reception Appropriate Handling for Complaints confidence and determination of the Bank managers and tellers by considering many Attainment to provide the public with the best service. factors such as customer circulation, pain The Bank continued to improve the re-optimization”. At present, a full-dimension, points of customer experience, banking The Promotion for 6S Management handling system for complaints, revising the full-cycle management system covering business standards and so on, and formed Model. The Bank has introduced the 6S Measures for the Administration of Service all channels has been formulated for the the “Ten Ones” for reception service process management mode of “tidy, consolidate, Quality of China CITIC Bank Credit Card project, finding out 597 customer experience and “Heptalogy” of the counter service sweep, clean, safe and attainment” across Center to optimize the complaints handling pain points and producing 130 experience process. As for reception staff’s service, the the whole bank to further meet the greater principles, processing procedures and projects, which laid a solid foundation for Bank helped save customers’ time through customer demand and effectively improve efficiency, and formulating the Measures for further improvement of customer experience. “Ten Ones” service including “one greeting, the customer service experience. At the the Administration of Complaint Prevention one smile, one inquiry, one guidance, one same time, the Bank urged each staff to As of the end of the year, customer service Mechanism of China CITIC Bank Credit piece of reminder, one instruction, one develop a good habit, and work according telephone system of the Bank had received Card Center to regulate the procedures and care, one beverage, one diversion and one to rules. 83,350 complaints from credit card customers, a afterwards rectification for the early intervention goodbye”, and provided smoother and more “Tidy, consolidate, sweep, clean”: Outlets decrease of 0.15% over the last year; credit card of major complaints. satisfactory service. As for tellers’ service, are required to solve problems in how customers complaints reached about 0.280‰, the Bank assured staff members’ accurate to make good use of spaces, and fully The Bank launched the “Ultimate Customer a decrease of 0.056‰ over the previous and instant service and care for customers use spaces, keep environment clean Experience” project to listen to the customers, year; the degree of customer satisfaction of through implementing “Heptalogy” including and form good habits, so that there improve and optimize the customer complaint processing was 96.89%, a decrease experience, and form a spiral closed circle of 0.01% from the previous year; and the timely of customer experience management of rate of complaint handling was 100%, the one goodbye one greeting “experience - optimization - re-experience - same as the previous year.

one diversion one smile Assessment of Customer Satisfaction

one beverage “Ten Ones” Service one inquiry Procedure The Bank reviewed and called back all satisfaction through post-call IVR, of dissatisfied customers, and collected which 898,501 customers were satisfied one care one guidance reasons of dissatisfaction to promote the and very satisfied. The degree of customer adoption of customer’ advices. By the satisfaction was 98.43%, representing an one instruction one piece of end of the year, the Bank successfully increase of 0.26 percentage points from reminder surveyed 912,837 customers on the previous year. 52 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 4 Customers and Services 53

Proactive Service Improvement 7.32%. The Bank’s business outlets have potential or actual negative impact on local covered 142 large and medium-sized cities environment and communities. 18 360 label is an intelligent app platform set up in 31 provincial-level administrative regions The Bank assessed the newly built and Telephone Banking Service. Through district and outlets of the receiving bank. by China CITIC Bank, through which counter (except for Hong Kong, Macau and Taiwan), relocated sites by outlet location selection 142 adding complaint sensitive labels in the The Bank added the facility which supports tellers can better serve customers. of which 4 cities welcomed the first outlets mode, which fully considers residence, teller system, establishing satisfaction the repayment for other owner’s CITIC of the Bank, further expanding the coverage office group, commercial facilities, traffic The Bank’s business outlets have survey control mechanism, introducing Bank credit card. The Bank also added of the Bank’s financial services and covered 142 large and medium- 18 conditions and other factors around the 360 label management systems, gesture login and fingerprint login for sized cities in 31 provincial-level effectively optimizing and supplementing proposed locations, to greatly facilitate improving system construction, and mobile banking in spite of password login. administrative regions (except for the local financial ecological network. The customers. Taking the interests of optimizing service processes, the Hong Kong, Macau and Taiwan) Promoted Inspection Efforts. In order to Bank continued to promote the functional customers around the original sites into average call duration was reduced to 241 improve the quality of customer service area zoning standards and the image full consideration, the Bank required seconds, which increased the number at outlets, the Bank regularly organized construction standards for outlets, including these outlets to make an announcement of customer being served and reduced customer experience inspections, daily standards for barrier-free facilities and in advance to remind the customers of 5,580,365 their waiting time. In 2017, the Bank’s inspections of 6S service standards and signs, convenience service facilities and the relocation. By the end of the year, the telephone banking received 5,580,365 other items in spite of existing mysterious smart experience equipments. The Bank Bank relocated 49 outlets, and set up 11 calls from customers, representing an the Bank’s telephone banking visits, open inspections and monitoring has no business outlets that have significant new ones. received 5,580,365 calls from increase of 4.58%. video inspections in 2017. The Bank also customers, representing an Mobile Banking Service. The Bank revised the China CITIC Bank Service increase of 4.58% adjusted the complicated entry items of Quality Standards Manual and produced Improved Accounts Management mobile banking transfer, which allows paper versions and network training accurate transfer without entering the materials for employees to learn. In 2017, the Bank actively promoted the the MPP and checked the positioning construction of the “Business Account information with the actual registration Reduction and Exemption of Service Charges Life Cycle Management” project, actively / operating address of the entity in the optimized both the system functions follow-up review, which improved the and business processes, and solved reliability of the managers’ door-to-door In order to standardize service charges Small and micro enterprises can get the problems of complicated and time- account opening service and the real- related to business operations, reduce exemption of loan commitment fees consuming procedures for the opening of time collection of information. burdens for enterprises, and optimize and fund management fees; bank business settlement accounts. Optimized Account Opening Review The the environment for the development In addition, customers can get exemption Online Form Pre-filling The Bank made Bank promoted data interface between of the real economy, the Bank strictly of promissory note service charges, lots of work that was originally needed the counter system and the anti-money implemented relevant requirements of promissory note loss-reporting fees, to be done by customers at the counters laundering system, automatically verifying the National Development and Reform promissory note nominal fees, bank draft possible to be processed online, and customer’s basic information, thus Commission and the CBRC, and service charges, bank draft loss-reporting prompted the customers to prepare improved the accuracy and efficiency of actively expanded the range of charges fees, bank draft nominal fees. the necessary information before going account opening review. reduction and exemption. For inclusive The Bank has publicized the above policy to the bank to effectively reduce the financial business, the Bank continued to Optimized Signing-up Process The in prominent locations at its business errors in filling forms and the frequency implement “four categories of services for Bank, by opening the data interface of premises and on its official website. of stamping, thus improved customer free” in 2017, including: each system, made it possible of the Outlets with enabling environment have experience. unified signing-up management at the Customers can get exemption of annual also disclosed information of service Door-to-door Service of Account counters, which further simplified the fees and account management fees; charges through electronic display Opening The Bank added the door- counter operations and improved the Customers can get exemption of service screens, multimedia terminals, computer to-door service of account-opening to efficiency of business processing. charges for remote RMB deposits, queries, etc., fully protecting customers’ the Bank had business outlets withdrawals and transfers in the Bank; rights to be informed and choose. In Customers can get exemption of service addition, customers can consult through Innovative Services and Products charges for online banking and mobile calling for customer service via 95558. 0.77% banking domestic transfers; In 2017, the Group actively implemented Republic of China on Commercial Banks. 1,435 2017 new development strategy, fulfilled The Group also abided with relevant 1,424 2016 the concept of “innovation”, enhanced national laws and regulations in product product and service innovation, built promotion and marketing, and protected 23,000 Enhancement for Customer Experience industrial comparative advantage, and its own intellectual property rights. more than 23,000 companies provided self-service equipments launched a series of financial services The Unified Social Insurance Funds actively paid through the platform, and products with the characteristics of Settlement Platform. The Bank created which provides local businesses with Optimization of Service Channels the Group. The Group strictly complied a “unified social insurance funds convenient social services 7.32% with the Advertising Law of the People’s settlement platform” for social insurance 9,295 2017 The Bank adopted prudent network including 1,350 comprehensive/ premium Republic of China, the Trademark Law agencies. At present, the platform of the People’s Republic of China, the has become the only platform for the 10,029 2016 development strategies. By the end of outlets and 85 community / small and the year, the Bank had a total of 1,435 micro outlets; and provided 9,295 sets Contract Law of the People’s Republic management of social insurance funds business outlets, an increase of 0.77%, of self-service equipments, a decrease of of China, and the Law of the People’s revenue and expenditure of a provincial 54 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 4 Customers and Services 55

capital. The Bank is the exclusive approximately RMB 43 billion over the Intelligent Robots in Outlets agent for payment of social insurance year. through Internet, APP and self-service The Online Credit Consumption Loan The intelligent robots in outlets are smart customer service robots for banking devices. As of the end of the year, more Product. The Bank launched this business scenarios in outlets. As an innovative combination of artificial intelligence than 23,000 companies actively paid product for well-paid customers and and banking services, the robot employs cutting-edge technologies such as natural through the platform, which provides customers of asset-related business. It language processing, 1:N face recognition, and the banking service knowledge local businesses with convenient social grants credit loans for consumption to base based on deep learning to intelligently communicate with customers. The services. customers who meet the requirements intelligent robots will be used to help lobby managers in outlets to conduct customer Transaction Banking 2.0. The Bank of the Bank through acquiring verifiable identification, business consulting, products recommendation, business guidance and successfully completed the first phase information of customers like revenue, other services. At present, the intelligent robot has been officially launched at the of the Transaction Banking 2.0 project. liabilities and credit on-line, and Bank’s Nanxincang Sub-branch in Beijing and began to serve customers. The project focuses on optimizing conducting comprehensive credit the business system composition, evaluations of customers relying on the improving the service management Bank’s online credit service platform. Improved E-banking Services system, and building whole-process This product, with the whole online services such as the sale of products operations of application, approval, through the transaction banking and the granting and repayment, effectively In 2017, regarding the user experience signing a financial technology deepening one-stop signing-up for customers. It meets customers’ demands of highly as the core, the Bank launched Mobile business cooperation agreement with created a new version of online banking frequent, fast and small amount of Banking 4.0, smart billing, smart Tencent, and combined the latest Internet and launched the mobile banking for small-credit loans,. recommendation, smart investment and technological achievements with financial corporate, and optimized the internal Credit Card Products. The Bank consulting, going abroad finance and other services by using the expertise of Internet management system, thus significantly innovated integration models with customized financial and non-financial companies to provide customers with safer, improved the system interface, product internet companies, deepening services, as well as fingerprint identification, smarter, and more accurate, convenient functions, customer experience, and cooperation with products of huge traffic white list for transfer and other methods and personalized service and explore the security operations. and expanding cooperation areas. It for safety, so as to strike a good balance new model of win-win cooperation between Foreign Currency Xinjin Bao. The launched various co-branded credit between experience and safety. the Internet and the banking industry. Bank launched the “Foreign Currency cards like Jingdong Xiaobai TWO Card, The Bank further improved the e-banking The Bank established a mechanism Xinjin Bao” product, which innovatively Naughty Card, Cat’s Eye Card, Netease real-time risk control system and optimized of “prompt discovery, rapid analysis combines the foreign currency Cloud Music Card, OFO Card, Yixin the anti-fraud model for online transactions, and quick solution” to collect problems operational returns in the financial Card and Dedao Card, so as to build realizing real-time analysis and course through electronic channels, customer market with the foreign currency asset an unbounded financial ecosystem that intervention in e-banking transaction service centers, WeChat groups, on-site management needs of customers. covers e-commerce, entertainment, risks and effectively reducing the risk of investigations and other channels, and to Allowing deposits and withdrawals traveling, Internet finance, Internet e-banking transactions. It launched the track the process of problem handling to at any time and steady returns, the information and other consumption “e-commerce housekeeper”, an intelligent ensure that “progress will be made every The Family Trust Business product dynamically adjusts the foreign scenarios to help valuable customer with liquidation product which provides B2C week and every problem will be solved”. Ranking First in the Industry currency asset returns of customers acquiring and operating. At the same e-commerce platforms with a full-process The Bank continued to optimize its online according to the operational returns time, the Bank also launched the young fund settlement solution that integrates banking facility and conduct upgrading “CITIC Family Trust Business” of foreign currencies, which offers group oriented “Color Series” credit “collection, management, and payment”. once a month. It has cumulatively optimized integrates the CITIC Group and other the first domestic management tool cards of its own brand based on user The Bank also upgraded Quanfutong, more than 70 items, adding new WeChat high-quality resources and adopts the of cash in foreign currencies. The experience, thus provided users with Cross Border Trade and CITIC e-pay, to notifications, updating expired certificate, “1+1+N” exclusive team service model annualized return rate of the first phase more personalized and better credit card accelerate the construction of Internet and upgrading “CNCB Connectivity”, and to provide professional, comprehensive US dollar products exceeded 0.88%, services. payment ecosystem. It deepened the has reformed its functions such as asset cooperation with Internet companies, inquiry and wealth management insurance. and customized wealth management approximately 18 times that of US dollar Block Chain Business. The Bank’s services and asset preservation and savings deposit. By the end of the Block Chain based Letter of Credit inheritance solutions for high-net- year, the product recorded over 2,000 System (BCLC) was successfully Service Stars worth private banking customers. It product transactions over the past 40 launched, which applies the block has enabled the implementation of plus days since its launching, and was chain technology to the settlement of In 2017, the Bank’s Tianjin Haihe Sub- various innovative models such as fully recognized by the market and letters of credit. The whole process branch, Hangzhou Xiaoshan Sub-branch, insurance trusts, transfer of claims and customers. of opening letters of credit was done Chengdu Zijing Sub-branch and shareholding entrustment. As of the end Borrowing and Repayment Online. through the block chain system, which City Plaza Flagship Sub-branch were of the year, the Bank realized over RMB This facility supports online applications shortens the transmission time of letters listed among the “Top 100 Demonstration and online commissioned payments, of credit and documents, improves the 32 9.177 billion of family trust business Institutions of Civilized and Standard and served 400 customers with ultra- and optimizes the providing of loan processing efficiency and security of the Services of the Chinese Banking Sector” A total of 32 employees of the Bank high net-worth, ranking among the related materials to improve customer letter of credit business, and enhances by the China Banking Association. A were conferred the title of “Lobby best in the industry in terms of scale, experience while meeting actual the participation of customers and the total of 32 employees of the Bank were Manager Star of Civilized and professionalism, market share and the financing needs of customers. It transparency, allowing customers to conferred the title of “Lobby Manager Star Standard Services of the Chinese Banking Sector” degree of customer satisfaction. was formally launched in May 2017 obtain detailed real time information of of Civilized and Standard Services of the and had granted cumulative loans of the whole process. Chinese Banking Sector”. 56 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 4 Customers and Services 57

List of the Bank’s “Lobby Manager Star of Civilized and Standard” Strengthened Management of Suppliers

these methods show cost advantage and Once the supplier induced major negative relevant suppliers are likely to distinguish environmental and / or social impact on the Centralization Competitiveness themselves and successfully be selected Bank, the Bank will take measures such as the Bank’s suppliers in the environment as interviewing, downgrading, restrictions Independence of sufficient competition. The Bank on purchases, and even quitting based on Beijing Fuhua Beijing Zhongxin City Banking Department Chongqing Nanping Guiyang Huguo Sub- Ningbo Zhongxing Taiyuan Dayingpan Ji’nan Quancheng completed central procurement based Mansion Sub-branch Sub-branch of Hohhot Branch Sub-branch branch Road Sub-branch Sub-branch Road Sub-branch purchasing the supplier management system. As of Duan Yi Wang Yao Zhu Lan Guo Ruiling Zhou Lulu Hu qiuxia Zhang Ying Wang Rui work on the principles of pursuing lower costs the end of the year, no supplier had ever and better quality so as to provide quality induced any negative environmental and / products at the favorable and appropriate or social impact on the Bank. Applicability prices in the procurement industry. Fundamental conditions of supplier acceptance and candidate suppliers of the Bank include but are not limited to:

Suzhou Wujiang Wuhu Economic Banking Department Shenyang Tiexi Sub- Nanjing Jiangyan Banking Department Zhengzhou Shijiazhuang Xiumen In 2017, the Bank completed the central (1) being able to bear civil liabilities Sub-branch Development Zone of Fuzhou Branch branch Sub-branch of Zhengzhou Branch Jingguang Road Street Sub-branch procurement based on the principles independently; 0 Lv Man Sub-branch Zhang Qiuyu Hua Zhenyu Zhou Qiong ma Minhan Sub-branch Zhang Jing Xu Jie Wang Xiaopan of “centralization, independence, (2) having a good business reputation and As of the end of the year, no supplier competitiveness and applicability” complete financial and accounting policies; had ever induced any negative and “separated administration and (3) having the necessary financial strength, environmental and / or social impact procurement”. It obtained goods of on the Bank professional technical skills, service access comparative advantages in the market support skills and industry experience for in the centralized and unified way by performance; leveraging the specified procurement (4) showing no record of any gross violation Shaoxing Shengzhou Qingdao South Sub- Harbin Nangang Tianjin Jinnan Sub- Shanghai South Yinchuan Minzu Banking Department Shenzhen City Plaza methods and procedures. Sub-branch branch Sub-branch branch Sub-branch North Street Sub- of Guangzhou Flagship Sub-branch of laws regarding business activities or bad 29 Qian Zhouping He Jiani Liu Shijun Zhi Shengjie Lin Mengjiao branch Branch Guo Yixin Centralization The Bank’s systematic Xu Xiaoxiao Wen Fengqiao information concerning violation of social procurement level should converge on responsibility in the recent three years; the Bank mainly had cooperation the Head Office in steps. With gradual relationship with 29 major suppliers (5) meeting other special conditions related integration and centralization of the Bank’s in total in China mainland to the supplied commodities. By the end of demand for commodity procurement in the year, the Bank mainly had cooperation steps, the Bank’s procurement policy and relationship with 29 major suppliers19 in process should be regulated and unified. total in China mainland. Wuhan Economic Changsha Wanfu Nanchang Qingshan Banking Department Xi’an Taibai North Changzhi Taihang Banking Department Changchun Xingfu Independence The Central Procurement The Bank regulates the environmental and Technological Road Sub-branch Lake Sub-branch of Sanya Branch Road Sub-branch West Street Sub- of Nanning Branch Street Sub-branch Department (Team) of the Bank should Development Zone Li Xiongjie Zhou Riting Li Hui Chen Baoyu branch Jiang Ganshu Wang Jinghong and social risk management of suppliers Sub-branch Zhang Tingting operate independently according to mainly based on the “law and regulation Chen Jiawei the central procurement policy and the compliance” provision. The Bank collects procurement process to ensure the various risk information of contracted List of the Bank’s Special “Lobby Manager Star of Civilized and Standard Services of the Chinese Banking Sector” publicity, fairness and equity as well as suppliers, including environmental and effective supervision. social risks, through third-party agencies, Competitiveness During procurement, the and its screening criteria come from the Bank should ensure sufficient competition Labor Law of the People’s Republic of among commodity suppliers to maximize China and the Environmental Protection “Star of Charm” “Star of Charm” “Star of Charm” “Star of Charm” the efficiency of procurement. Law of the People’s Republic of China

Beijing Fuhua Qingdao South Sub- Banking Department Tianjin Jinnan Sub- Applicability The Bank should acquire a and other regulations. The Bank has Mansion Sub- branch of Guangzhou branch wide range of commodities in line with included all of the suppliers, including new branch He Jiani Branch Zhi Shengjie Duan Yi Wen Fengqiao operation and management demands suppliers, in its overall supplier evaluation with reasonable procurement methods. In system and has conducted due diligence particular, the principle of competitiveness on environmental and social activities of has positive significance for “local major suppliers. The Bank enhanced the procurement” and “procurement from the acceptance and assessment of suppliers, Lobby Manager “Star of Wealth” “Star of Wealth” “Star of Smile” Super Star origin”. Since “local procurement” and refused manufacturers and products of high Shanghai South Sub- Harbin Nangang Taiyuan Dayingpan Banking Department “procurement from the origin” spare the pollution and energy consumption levels 19 of Hohhot Branch Major supplier refers to one which has a branch Sub-branch Sub-branch time of intermediate link of the supply and instructed the suppliers to assume Lin Mengjiao Liu Shijun Zhang Ying Zhu Lan contracted amount of over RMB 20 million chain as well as the transportation cost, their social responsibility as required. with the Bank. Chapter 5 Employees and Culture 59

Chapter 5 Employees and Culture

Basic Profile of Employees Basic Profile of Employees Basic Staff Welfare Programs At the end of the year, the Group registered In accordance with government regulations Equal Pay for Equal Work a total of 56,724 employees, a decrease on dispatched labor, the Bank reinforced Improved Assessment Mechanism of 2.24%; and the Bank registered a the management of dispatched staff. There total of 53,346 employees, representing had been no dispatched labor added since Career Planning for Employees a decrease of 2.35%. Among them, the 2015. The Bank continued to gradually Caring Physical and Mental Health number of employees with labor contract reduce the proportion of dispatched was 49,257, accounting for 92.33%, 1.34% labor in total staff. By the end of the year, Protection of the Legitimate Rights lower over the end of the previous year; the the number of employees without labor and Interests of Employees percentages of female and male employees contract was 4,089, accounting for 7.67%, Enhanced Vocational Training were respectively 53.08% and 46.92%, decreasing by 13.07%. with the former decreasing by 0.17%; By the end of the year, subsidiaries of the Caring for Employees’ Lives the employees of ethnic minorities was 2,433, accounting for 4.56%, increasing Bank registered a total of 3,378 employees, by 4.74%; the percentages of basic-level a decrease of 0.73%. Specifically, 44 were employees, management staff of branches employed by Zhejiang Lin’an CITIC Rural and the Head Office were respectively Bank, 94 by CITIC Financial Leasing Co., 89.80%, 9.28% and 0.92%; the percentage Ltd., 2,056 by CITIC International Financial of basic-level employees kept rising, and Holdings Limited, 1,184 by China CITIC 5,430 that of management staff dropped mildly; Bank (Hong Kong) Investment Limited the percentage of employees with college (formerly known as “China Investment and education was 92.06%, increasing by 2.28%. Finance Limited”). the Group had organized about 240 health-related training courses and lectures, attracting participation of around 5,430 employees the bank registered a total of 56,724 the number of employees with labor employees contract was 49,257 2.35% 1.34% 665,000 53,346 2017 49,257 2017 54,628 2016 49,924 2016 trade unions of the Bank allocated a total of RMB 665,000 for courtesy

the female employees of ethnic minorities the employees of ethnic minorities was was 28,316 2,433 Total training input (RMB 10,000) 4.74% 2.66% 28,316 2017 7.81% 2,433 2017 29,089 2016 8,464.19 2017 2,323 2016 9,181.16 2016 60 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 5 Employees and Culture 61

20 The total number of employees disclosed in last year’s report was 54,620, which was then adjusted to Equal Pay for Equal Work 54,628, and other figures of the year 2016 in this table were adjusted. 21 This includes assistant general managers at departments of the branches, assistant general managers of sub-branches (inclusive), and above. The Bank formulated the remuneration system centered on value of particular standards based on value of particular post. post, promote differentiated remuneration 22 This includes assistant general managers (inclusive) at departments of the Head Office and above. The Bank fully observed the principle of construction and the remuneration 20 Employee Statistics equal pay for equal work, with no gender- structure, strengthen assessment and specific differences in its remuneration supervision, and standardize distribution of and promotion standards. The Bank remuneration and benefits and insurance 2017 2016 Changes continued to improve its remuneration payment.

Headcount 53,346 54,628 -2.35% Employees under labor contract with 49,257 49,924 -1.34% Improved Assessment Mechanism the Bank Employees dispatched to the Bank or 4,089 4,704 -13.07% hired with letters of engagement The Bank set up the value creation- the system, the management staff tracked Male employees 25,030 25,539 -1.99% oriented performance management and responded to employees’ fulfillment system to improve its performance of performance plan, and provided Female employees 28,316 29,089 -2.66% management, and encourage employees necessary support for them to complete to enhance their value and performance. tasks on time. At the end of 2017, the Ethnic-minority employees 2,433 2,323 4.74% On the basis of the key performance Head Office organized a performance indicators specified in the post description assessment for all employees, and made Basic-level employees 47,905 48,479 -1.18% and combining its strategic objectives thorough assessment of employees’ Branch managerial employees21 4,952 5,723 -13.47% and key tasks, Departments of the Head fulfillment of performance plan by means office of the Bank developed the annual of performance assessment and online Head Office managerial employees22 489 426 14.79% performance plan to guide the works of assessment, and gave out their annual all posts in the early 2017. To implement assessment results. PhDs 203 176 15.34%

Postgraduates 10,422 9,471 10.04% Career Planning for Employees Undergraduates 38,485 39,398 -2.32% philosophy Junior college graduates 3,849 5,079 -24.22% The Bank continued to embrace such and ranks of three major types of positions philosophy conveyed in its selection, of management, professional technology, both ability and political integrity Below junior college (non-inclusive) 387 504 -23.21% utilization and promotion of talents, i.e., pay and operation support, clarifying the equal attention to ability and integrity equal attention to ability and integrity but qualification, promotion and adjustment Aged 30 and below 23,689 27,184 -12.86% prioritize integrity in promotion, select the principles for all ranks of professional best from the elites, apply the principle of technology and operation support, thus Aged between 31 and 40 20,876 19,081 9.41% survival of the fittest, take full advantage of broadened the career development the talents pool, put the right candidates to Aged between 41 and 50 7,003 6,641 5.45% channels for employees. The Bank 5,430 the right positions, and motivate employees formulated the Implementation Plan for with a sound incentives mechanism, thereby Aged between 51 and 59 1,776 1,718 3.26% the Exchanges of Directors at the Head the Group had organized about 240 tapping into the full potential of talents. Office and Branches, the Implementation health-related training courses and Aged above 60 2 4 -50.00% The Bank formulated the Measures for Measures for the Open Selection of lectures, attracting participation of the Management of Posts of CITIC Bank, Directors at the Head Office of China CITIC around 5,430 employees standardizing and unifying the Bank’s Bank to promote the growth of excellent position system, determining the division managers through the mentoring system. Basic Staff Welfare Programs Caring Physical and Mental Health In accordance with the Labor Law of the care insurance, unemployment insurance, People’s Republic of China and Labor work injury insurance, maternity insurance Contract Law of the People’s Republic of for employees, and housing provident funds. Out of its great care for physical and mental health of female employees, health-care of China, Social Insurance Law of the People’s The Bank also established a multi-pillar health of employees, the Group organized infants and young children, prevention and Republic of China, as well as local basic staff old-age caring system such as corporate health training courses and lectures for its treatment of middle to old-age diseases welfare regulations, the Bank established annuities, in which regular employees who employees, covering extensive areas, such (coronary heart disease, hypertension, the basic staff welfare system, comprising have completed the probation period can as how to keep fit with the use of traditional diabetes, etc.), psychological knowledge, the basic pension insurance, basic medical- join voluntarily. Chinese medicine (TCM), tips on the and emergency self-rescue and first aid. 62 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 5 Employees and Culture 63

were collected, processed by related Party Committee of the Head Office would Employee Mental Assistance Program (EAP) departments and publicized on the Intranet. receive and communicate with employees In 2017, to implement the concept of “Making Employees Happy” and get closer to Leaders’ Open Day The Bank continued to maintain the communication channel employees, the Bank continued to promote multi-level and multi-dimensional caring to implement the system of Leaders’ Open between the Party Committee of the Head services. The Bank organized the “Happiness (Xing Fu)” Lecture to learn about the courses Day. Each month, the members of the Office and employees. needed by employees through voting. With more than 1,200 employees participating in the program, the curriculum was set up according to their voting results, and the diet and Protection of employee right to work and rest physical and mental health classes were the most popular ones. The Bank issued mental health knowledge through its special WeChat Account of “Energy from Within, Faith in the Future”. Meanwhile, the Bank promoted the EAP Phase II project at the Head The Bank formulated the Measures for the Management of Labor Contract of China Office of the Bank. Employees can use the EAP consulting platform to conduct daily 23 This includes overtime in extended work time, CITIC Bank (Version 2.0 2017) according to psychological consultations. And professional consultants will help employees solve their weekend and holidays. the Labor Law of the People’s Republic of problems and relieve their pressure on work and life. 24 This does not include the maternity leave. China, and followed regulations of working 47,600 hours, breaks and leaves and labor All these helped employees to understand and monetary cares. Senior management protection to safeguard employee right their bodies, improve their work habits and members of the Bank paid courtesy visits employees voluntarily participating in to work and rest. In 2017, if employees 1,552,500 physical check-ups recorded about develop self-consciousness of disease to retirees on a regular basis, called on sick were required work overtime due to work 2,759,300 47,600 person-times, decreasing prevention. By the end of the year, the employees, and visited staff who worked demand, the application form shall be The employees totaled 1,552,500 days mildly over the previous year Group had organized about 240 health- on the annual account. By the end of the submitted to the department head for the Group registered total overtime of due annual leaves, of which 28.76% related training courses and lectures, year, trade unions of the Bank allocated a review and approval. By the end of the of about 2,759,300 hours in the or 446,500 days were actualized, 2.98 attracting participation of around 5,430 total of RMB 665,000 for courtesy. year, the Group registered total overtime23 year, decreasing by 11.27% percentage points higher over the end employees. of the previous year As of the end of the year, no employee of about 2,759,300 hours or 48.64 hours 665,000 In order to help its employees maintain death occurred at the Bank. 34 employees per capita in the year, decreasing by top form, the Group organized routine got injured when do sports, commute, at 11.27% and 4.95 hours. The employees trade unions of the Bank allocated a physical check-ups for its employees on work places or on office trips, a decrease totaled 1,552,500 days of due annual total of RMB 665,000 for courtesy 312,100 a regular basis. Some branches offered of 7 person-times, and 1,772.5 days were leaves, of which 28.76% or 446,500 48.64 more items checked for employees aged off due to work injuries of employees. days were actualized, 2.98 percentage Other leaves including marital 45 and above, and organized special When the employees got injured, the points higher over the end of the previous the Group registered total overtime leave, personal leave, sick leave physical check-ups for female employees. year. Other leaves24 including marital leave, Bank actively submitted applications for of about 48.64 hours per capita in and funeral leave of the Group was By the end of the year, employees work injury recognition to the local human personal leave, sick leave and funeral leave of the year, decreasing by 4.95 hours totaled 312,100 days, or 5.50 days 0 voluntarily participating in physical check- resource and social security departments. the Group was totaled 312,100 days, or 5.50 per capita, an increase of 0.75 day ups recorded about 47,600 person-times, When the injury cannot be identified for any days per capita, an increase of 0.75 day. As of the end of the year, no decreasing mildly over the previous year. reason, the Bank also actively provided employee death occurred at the The Bank supported the trade unions of employees with material and spiritual Bank Protection of employee rights as trade union members branches’ courtesy visits to employees, and compensation to reassure them about visited sick employees with both mental recovery and returning to work. In accordance with the requirements of the branches; 40 branches signed the Special Trade Union Law of the People’s Republic Collective Contract of China CITIC Bank for of China, the Head Office and branches of Protecting the Rights & Interests of Female the Bank all had trade unions in place and Employees, equaling to the previous year. Protection of the Legitimate Rights budgeted operating funds for trade unions in For the whole year, the Bank convened 62 and Interests of Employees full amounts to ensure extensive organization employee representatives’ congresses at of trade union activities. By the end of the different levels, 6 congresses less than that year, the Bank achieved 100% trade union at the end of the previous year, deliberated Protection of employee right to make claims membership rate among employees with over 335 items, and recorded about labor contract; employee representatives’ 4,457 participants in total, decreasing by congresses were already in place at the approximately 25.65% over the end of the Following the introduction of “President’s mechanism and a channel for solicitation Head Office, the Credit Card Center and 38 previous year. Mailbox” and “Leaders’ Open Day”, the Bank of rationalization proposals. The President’s introduced the “Listen to Me” in 2017, which Mailbox is an important channel for staff at the broadened the communication channel for basic level to communicate with the senior Protection of women’s rights and interests employees to express opinions and make management. Each employee may send mail suggestions, and showed that the senior to the Box in real name or anonymously to file The Bank signed the Special Collective about 1,700 pieces of radiation-proof management took practical actions to complaints, comments or suggestions. The Contract of China CITIC Bank for Protecting maternity clothing to pregnant female communicate with staff at the basic level. presidents would give feedback to and settle the Rights & Interests of Female Employees employees of branches at the “Wish you the hot issues within set time limit. President’s Mailbox. Employees were with all female employees, and actively a Pleasant Pregnancy” activity; and the encouraged to offer opinions on business Listens to Me. The Bank established the carried out various caring activities for female Lhasa Branch organized a series of activities development and internal management, so as Listen to Me section on the homepage of its employees of the Bank. For example, the themed “Caring and Blooming” to express to build a sound internal and external feedback Intranet. More than 200 pieces of opinions trade union of the Head Office distributed respect and caring for female employees. 64 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 5 Employees and Culture 65

Sharing of Good Writing on “8 March” Caring for Employees’ Lives On the morning of 8 March, 2017, Li Qingping, Chairperson of the Bank, attended 80 and presided over the “Sharing of Good Writing on ‘8 March’”. During the event, Chairperson Li Qingping shared an article on filial piety and her own experience of The Bank’s trade unions actively supported lead in organizing trade unions to visit sick the improvement of living conditions in the Bank had trained nearly 80 growing into a female professional with other attendants and told female managers how employees and those in difficulties and to internal trainers at the Head Office basic-level outlets and created a warm support trade unions of the branches to to handle relationships between their career and their families, couples, children and level environment for employees. The trade provide good services and tangible benefits colleagues. She hoped that all female workers could have a healthy body and a happy unions regularly allocated special funds to to their employees. mood in their work and life, be empathetic, learn to think in others’ shoes, and realize a support the “five smalls” construction of win-win outcome in both family and career. The trade unions of the branches of the small canteens, small activity rooms, small Bank actively organized various sport and 3,400 reading rooms, small locker rooms and cultural activities. The Chongqing Branch small coffee breaks at basic-level outlets, as organized the 2017 Spring Staff Games, well as the construction of nursery rooms. the Bank now has over 3,400 the Tianjin Branch organized the “Hangqing internal trainers. As of the end of The Bank strongly supported the regulation (Celebration) Cup” table tennis game, the the year project for trade unions, and encouraged Shenyang Branch held the “Celebration them to legally elect the chairman of the the 30th Anniversary of the Bank” 6th Staff union, build an independent and well- Games, the Urumqi Branch held the organized structure, carry out activities for “Celebration the 30th Anniversary of the serving employees, establish a sound and Bank” 3rd Staff Mien Competition, and the complete institutional mechanism, manage Guiyang Branch held the “Celebration the th their own funds, and deliver satisfactory 30 Anniversary of the Bank” Second Five- The atlas of sport and culture activities organ- performance. Leaders of the Bank took the man Football Match. ized by the branches of the Bank

Enhanced Vocational Training

The Bank strengthened the top-level resources based on internal training. In design of staff training, formulated 8 2017, the Bank had trained nearly 80 professional training guidelines, revised 4 internal trainers at the Head Office level management systems including the China and the Bank now has over 3,400 internal CITIC Bank Staff Training Management trainers. As of the end of the year, the Measures, further refined the rights and Bank’s total training input totaled RMB 84, obligations of staff training, and shared 641,900, a decrease of 7.81%; and more than 600,000 employees participated in the training, a decrease of 10.90%. The training plan formulated by the Bank Total training input (RMB 10,000) Training input per capita (RMB) is divided into four categories: Party School training, strategic management, 7.81% 5.61% strategic execution and business development. In 2017, the Bank 8,464.19 2017 1,586.66 2017 launched training on post certification 9,181.16 2016 1,680.92 2016 for more than 50,000 employees across the Bank, which focuses on basic knowledge and is closely related to the career development of employees. In Total training attendance (person-time) Training courses per capita (person-time) addition, the Bank integrated internal and external experts and learning resources, classified employees, developed unified 10.90% 8.75% online training courses and certification 600,533 2017 11.26 2017 questions, conducted unified online learning and certification examinations, 674,035 2016 12.34 2016 and established the training model of “training + examination + certification + promotion”. In this way, the training system of banking business, retail business and risk management has initially taken shape. Chapter 6 Public Benefit and Charity 67

Chapter 6 Public Benefit and Charity

Enthusiastic Return to the Society Enthusiastic Return to the Society Implementing Precision Poverty alleviation through Finance The Group strictly observed the newly Enhancing Efforts in Targeted promulgated Charity Law of the People’s The group donated a equivalent to a total Poverty Alleviation of RMB 29.7430 million Republic of China and other laws and Providing Considerate Financial regulations, pro-actively repaid society, 30.15% Services and mainly donated money to the neediest Promoting Financial Literacy areas. By the end of the year, the Group 29.7430 2017 donated RMB 27.6849 million and HKD 22.8533 2016 Organizing Employee Volunteer 25 2.4522 million, equivalent to a total of Activities RMB 29.7430 million, up 30.15% primarily for poverty alleviation, disaster relief, assisting poor students and aiding social disadvantaged groups. Employees of the 1,311,200 Group donated RMB 1,311,200, down by Employees of the Group donated 56.62%. Taxes paid by the Group26 totaled RMB 1,311,200, down by 15,177,700 RMB 24,232 million, down by 6.63%. 56.62% Social contribution per share of the Group27 the Bank donated RMB 15,177,700 stood at RMB 4.37, up 7.86% than that at mainly for agriculture, capital construction, the end of the previous year. Taxes paid by the Group totaled RMB education and charity for poverty alleviation, 24,232 million which benefited around 100,000 poverty- stricken people 6.63%

24,232 2017

25 Calculated based on the announcement on the 25,952 2016 4,225 RMB central parity rate released by the China Foreign Exchange Trade System (CFETS) on 31 December 2017, i.e. 1 HK dollar = 0.8359 loan balance of the Bank for financial Social contribution per share of the yuan. precision poverty alleviation reached Group stood at RMB 4.37 26 RMB 4,225 million, up 50.62% In 2017, the Bank paid taxes by law as always and incurred no tax dispute or penalty. 27 Social contribution per share = (annual tax 7.86% paid + staff salaries paid + loan interest paid 4.37 2017 to creditors + total outbound donations + the Group organized 164 employee volunteer activities, involving approximately 3,100 person-times other social costs as a result of environmental 4.07 2016 of employee volunteers pollution) ÷total share capital + basic 33.23% earnings per share.

3,100 2017 4,600 2016 68 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 6 Public Benefit and Charity 69

Greeting Primary School Making Achievements in the “China CITIC Bank – New Implementing Precision Poverty Students at the End of the Year Great Wall High School Student Self-improvement Classes” Program for Education Poverty Alleviation alleviation through Finance In December 2017, Chairperson Li Qingping, Vice President Guo Danghuai, Starting from 2013, following the guiding principle of “standardized operation, focus on The Bank set up a leading group for bond. The Bank also stepped up support Vice President Yang Yu and Secretary of actual effect”, the Bank launched the program of “China CITIC Bank-New Great Wall High financial poverty alleviation and formulated for characteristic agriculture and tourism in Disciplinary Inspection Committee Mo School Student Self-improvement Classes” (hereinafter referred to as “New Great Wall Self- the Work Plan of China CITIC Bank for impoverished areas. It actively assisted with Yue of the Bank travelled to Qinghai, improvement Classes”) together with the China Foundation for Poverty Alleviation (CFPA). Financial Poverty Alleviation in the 13th Five- development of education, medical care 4,225 Jiangsu and Fujian one after another to With 50 under-privileged high school students in each “New Great Wall Self-improvement Year Plan Period and the 2017 Financial and other public services in under-privileged visit Qinglin Country School in Datong Class” and 17 Classes run in total, the number of students totaled 850 (all from national- loan balance of the Bank for Poverty Alleviation Work Plan of China areas and supported their infrastructure County, Gusu Special Education School level impoverished counties; including 501 female students that accounted for 58.94%; financial precision poverty CITIC Bank. In credit policies, it supported and information-based construction. The in Suzhou City and Yunlong Houlong including 231 students from 11 minority ethnic groups such as Bouyei, Dai, Dong, Hani, Hui, alleviation reached RMB 4,225 infrastructure projects in transport, water Bank proactively communicated with local million, up 50.62% Primary School in Minqing County, Manchu, Mongol, Miao, Yao, Yi and Zhuang, accounting for 27.18%) and the number over conservancy, power, energy and ecological government and explored the mode of offering students in the impoverished the past three years amounted to 2,550. Over the three years, the Bank donated RMB 5.1 million to provide each student with RMB 1,800 in cash each year for tuition fees and living environment in impoverished areas and industrial fund for poverty alleviation. areas down coat and other warmth expense subsidies. Employees from 17 branches offered assistance to help them finish study basic public service projects in culture, supplies valued RMB 220,000 in the Personal business. The Bank actively in high school, enter higher education institutions, improve social competitiveness and get medical care and health. The Bank also bitter winter. explored mortgage loans against lifted out of poverty. supported projects that offered jobs to management right of rural contracted land During the program, the Bank maintained routine exchanges with the school and students. registered destitute households and drove (farmland) and housing property right of It established basic contact with the students by attending inauguration ceremony of the their income growth, developed featured farmers and tracked progress in trading 17 “Self-improvement Classes”, regularly collected their archives such as growth reports industries based on resource endowment platform establishment, evaluation and and transcripts, raised fund through charity sale, regularly attended their themed class and supported the households’ loan collateral disposal by superiors in pilot areas meetings and offered featured lessons such as popularization of financial knowledge to demand for production, start-up and to promote the business development at help them build up the value of “knowledge changes one’s fate”. The Bank also organized education and payment service demand. proper times. It fully utilized upper- and summer camp for the students to visit outlets of the Bank, museums and higher education By the end of the year, loan balance of down-stream cluster projects across the institutions during summer vacation. Representatives of youth employees that graduated ② the Bank for financial precision poverty supply chain to realize precision poverty from top higher education institutions constituted volunteer teams to share their experience ① alleviation reached RMB 4,225 million, alleviation. The Bank actively cooperated ③ in study and exam preparation, which was warmly welcome among the students. up 50.62%, including RMB 2,780 million Among students in the 2013 “Self-improvement Class”, 360 were recruited by undergraduate with guarantee companies and innovated in colleges, accounting for 72%, and 42 recruited by universities under 985 Program and 211 personal loans, up 24.67%, and RMB 1,444 financial service mode for “agriculture, rural million corporate loans, up 151.34%. areas and farmers”. It continued to offer ① Chairperson Li Qingping travelled to Qinghai Program and those directly under ministries and commissions of the central government for to visit the students impverished of Qinglin undergraduate and above courses, accounting for 8.4%. Among students in the 2014 “Self- Corporate business. The Bank offered greater support for student loans, so as to Country School in Datong County improvement Class”, 173 were recruited by undergraduate colleges, accounting for 49.43%, great support to railway, road, rural power help address tuition fees, accommodation ② Vice President Yang Yu travelled to Jiangsu and 35 recruited by universities under 985 Program and 211 Program and those directly grid upgrade and water conservancy fee and basic living expenses of under- to visit the students of the Gusu Special under ministries and commissions of the central government for undergraduate and above projects in poverty-stricken areas and privileged students at school. Education School in Suzhou city courses, accounting for 10%. actively facilitated livelihood projects Inter-bank business. The Bank continued ③ Secretary of Disciplinary Inspection Committee In 2017, the Bank signed an agreement with CFPA to donate RMB 6 million in total to such as comfortable housing and to promote building of bank-bank Mo Yue of the Bank travelled to Fujian to 20 “Self-improvement Classes” nationwide in the next three years, which will cover 1,000 municipal work to help the areas improve cooperation platform, extended business students. RMB 1,800 cash will be provided to each student annually as tuition fees and living visit the students of Yunlong Houlong Primary development conditions. It supported new- to impoverished counties and broad rural School expense subsidy and 20 branches will offer support to designated classes. The Bank will type urbanization projects such as ease areas and improved financial services continue to tighten contact with the schools, maintain routine exchanges with the students of poverty alleviation and relocation and for enterprises in areas in poverty and and organize more popular joint construction activities to help them perform better in the meanwhile pro-actively explored application registered destitute households. It prioritized National Higher Education Entrance Examination. of new-type financial products and service arrangement of position for projects in modes in financial poverty alleviation such as impoverished areas or poverty alleviation PPP-based industrial or project fund, eco- projects and actively supported financing compensation, emission trading and green demand of poverty alleviation enterprises.

Supporting Personal Start-up

Mr. Li, the Bank’s personal loan customer, ran a hotpot restaurant and intended to open a branch to expand the business scale, but was baffled by floating capital strain. He was fully aware of high cost and high risk of private lending and worried about high threshold, complex procedure and slow pace of bank loans. Having learnt about his need, Chongqing Branch of the Bank proactively contacted him and recommended a loan product against housing mortgage, which featured fast pace in loan approval and extension, reasonable interest rate and multiple repayment methods. Mr. Li then applied for the loan with a credit line of RMB 560,000 for a term of 20 years, during which repeated withdrawals were available. With his fund shortage addressed, Mr. Li now ran his business stably and felt grateful for the capital support of the Bank. 70 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 6 Public Benefit and Charity 71

Supporting Green Poverty Alleviation Projects Implementing Targeted Poverty Alleviation in Gansu

In 2017, the Bank’s subsidiary CITIC Financial Leasing Co., Ltd. signed a strategic 2017 was the second year for the Bank to conduct poverty alleviation work in Gansu. cooperation agreement with some monocrystalline silicon company to financially support It continued to donate RMB 2 million to Tanchang County, Gansu for new countryside its photovoltaic poverty alleviation project. The project, located in Guantou Village, construction and education poverty alleviation. Mr. Zhang Qi was dispatched to the County Yanshuiguan Town, Yanchuan County in Yan’an City, Shaanxi Province, was planned for as deputy head to support poverty alleviation work. a scale of 15MW and total investment of RMB 100 million. It was one of the first-group The Bank donated fund to connect the road in Poli Village and Guanjie Village for a PV poverty alleviation projects approved by National Energy Administration and the total length of 3.5km, which addressed inaccessibility of field roads and unavailability of State Council Leading Group Office of Poverty Alleviation and Development and also a agricultural mechanical equipment in poverty-stricken areas and helped improve local demonstration project for combination between PV power station for poverty alleviation development conditions. The Bank donated to build a fitness square and purchased cultural and financial leasing. and sport facilities in Poli Village and Zhayuhe Village respectively, finished yard hardening The project was put into operation on 30 June 2017 with an annual power generation for 100 square meters of the service center and built 43m walls in Poli Village, built CITIC of around 16.42 million KwH. Through power generation, it created RMB 3,000 income culture square in Pingtao Commune of Rushu Village, and repaired 2km drinking water per person per year for 600 local destitute farmers, which would last for 20 years. Power facilities for human and animals, dug ditches and laid pipes for 2.5 kilometers in Xixilu generated could save 5,300 tons of standard coal and reduce emission of 17,000 tons of carbon Commune, Wangjiashan Commune and Pingtao Commune in Rushu Village. The Bank also dioxide, 246.4 tons of nitrogen oxides, 492.8 tons of sulfur dioxide and 4,500 tons of dust per actively contacted a guarantee company in Longnan City and communicated with some year on average, generating admirable economic, social and environmental benefits. financial institutions in Tanchang County, with a plan to grant RMB 70 million loans to provide fund security for the poverty alleviation work in the county.

Enhancing Efforts in Targeted Poverty Alleviation Providing Considerate Financial Services

15,177,700 The Bank donated RMB 7 million to stricken people get rid of poverty and inject Joining “The Convoy Plan”. “The Convoy participating bank, it provided minor continue to support the poverty alleviation vitality into local economy. By the end of the Plan” was a national large-scope public students studying overseas with exclusive benefit program initiated by China Children banking service, cultural identity cultivation t he Bank donated RMB in Xaitongmoin County (Tibet Autonomous year, the Bank donated RMB 15,177,700 15,177,700 mainly for agriculture, Region), Zhaoyuhe Village, Rushu Village mainly for agriculture, capital construction, and Teenagers’ Fund, an industrial chain service and safety & rescue service, so as 10 capital construction, education and Poli Village of Dangchang County education and charity for poverty alleviation, eco-system for overseas study integrating to improve their cultural awareness and and charity for poverty alleviation, In December 2017, the Bank (Gansu Province) and Kuoshituogelake which benefited around 100,000 poverty- national registration system for students cultural confidence. which benefited around 100,000 donated RMB 10 million to poverty-stricken people Village of Yiganqi Town (Aksu City in stricken people. It dispatched 41 managers studying overseas, one-stop service Paying Greater Attention to Details in the Plan Xinjiang Uygur Autonomous Region). The to the areas, including 5 people as platform and offline industrial cluster and a Serving the Visually Impaired. All outlets Bank also dispatched managers to the temporary deputy county chief and 6 as national security project for the students. of the Bank were equipped with wheelchair In December 2017, the Bank donated poverty-stricken areas to help the poverty- temporary village secretary. ramps, sidewalks for the blind, service RMB 10 million to the Plan. As the sole guides in Braille, convenience cards for

Implementing Targeted Poverty Alleviation in Tibet

2017 was the second year for the Bank to conduct poverty alleviation work in Tibet. It continued to donate RMB 4 million to Xaitongmoin County, Tibet for local farmland water conservancy projects and education poverty alleviation. Mr. Li Qingtao of Zhengzhou Branch was dispatched to the County as executive deputy head to support the work. In 2017, with a total investment of RMB 3,007,000, the “CITIC Bank Canals” were located in Garuchong Village and Xugui Village of Danada Town, Kaga Village of Kaga Town and Longxia Village of Rongma Town, covering a total length of 5.5km and involving 7 agricultural bridges, 10 dividing gates and 1 water diversion aqueduct. After the completion of the project, the yield per mu (1 mu equals to 666.67 square meters) of farmland in the project area will increase from 420 jin (1 jin equals to 500 grams) to 470 jin, up 50 jin per mu. The annual increase of yield will be about 308,000 jin, bringing in an income of RMB 616,000. The income per capita will increase by RMB 425. Over the past two years, the Bank also donated RMB 2 million to set up “CITIC Bank Education Development Foundation”, offering subsidy to 580 person-times of undergraduate/junior college students, secondary school students and students that were recruited by inland Tibetan Class. 72 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 6 Public Benefit and Charity 73

the visually impaired, Braille keyboards, for the handicapped to improve service Taking Care of Special Customer the elderly, weak, sick and disabled that voice-cued ATMs, emergency call buttons, facilities for the customer group and Groups. The Bank opened courtesy could not come to the counter, at-door courtesy seats and courtesy windows and improve their convenience and safety. In windows for special customers and service can be provided. In doing so, the offered wheelchairs to customers with order to offer the customers considerate required hall ushers to patiently ask Bank strived to improve the ability and difficulty in mobility. Some outlets were and natural services, the Bank hired senior about special need of the customers in level of serving special customers and equipped with low-height online banking teachers in special education to offer details and arrange green channel for the boost the customers’ satisfaction with machines to provide special customers sign language training and psychological group. For special customers such as services of the Bank. with more considerate and convenient education guidance to outlet hall staff, services. who would truly understand need of the Proactively Serving the Sick at Door Offering Considerate Services to the handicapped, pay attention to sensitive On the morning of 20 October, Ms. Liu aged over 70 came to Chongqing Branch of the Handicapped. All outlets of the Bank were issues when offering them services and Bank for withdrawal, with a bank card of his husband in hand, but was denied by the equipped with access and service signs avoid unintentional harm to the customers. machine because wrong password was input three times in a row. Card owner had to come to the counter to unlock the card before withdrawal can be made successfully. Having learnt Offering Warm Service with Love that her husband was severely ill and struggling at sickbed, the hall manager immediately inquired related rules on providing at-door service, finished corresponding approval On 6 November 2017, a special customer, who was deaf-mute, arrived at Xining procedure, consigned the accounting superior to bring related vouchers and visited the Branch Banking Department of the Bank for confirmation of credit card. Besides hospital of the patient to learn about actual situation and ask the patient to authorize his providing ID card, bank card and confirmation form for credit card, the customer wife for the business in the written form. On the afternoon of the same day, Ms. Liu came to need answer three questions correctly, namely address of his affiliation, home the Bank again and made withdrawal successfully, with grateful tear in her eyes. address and name of emergency contact. As he was deaf-mute, the teller first greeted him with simple sign language, signaled him to sit down and wrote the three questions on paper with a pen for him to fill out slowly. After the business was handled, the customer wrote on paper: “Thank you. CITIC has the best service attitude!” Promoting Financial Literacy

Rendering Thoughtful Services to the Newspapers, periodicals and magazines In line with related regulatory selected to visit schools, communities Elderly. The Bank equipped its outlets for the elderly were always available at requirements, the Bank actively carried and shopping centers to promote financial with bus cue cards, walking sticks, the newspaper section and mobile form- out three public financial education knowledge and anti-risk skills necessary wheelchairs and courtesy seats with filling desks were customized to offer “at- campaigns including “Financial Literacy for financial consumers in daily life. arm rest to facilitate and guide elderly door” service to elderly customers with Promotion”, “Month of Financial Besides, the Bank integrated commercial customers that waited and walked difficulty in mobility. Besides, the Bank Knowledge Promotion” and “Promoting channels to promote financial knowledge around at outlet. Reading glasses at four regularly organized activities in elderly Financial Knowledge”. All the campaigns for public benefit and promoted publicity diopters and super-large stand magnifiers communities to popularize knowledge were deployed by the Head Office, at both traditional media such as Beijing were put on the form filling desk to help on financial investment and anti-telecom organized by branches and implemented News, Xinhua Net and people.net and its the elderly read and write. Mobile phones fraud, so as to enhance the elderly’s by outlets. Outstanding employees were WeChat platform. for the elderly in the service cabinet could awareness of anti-fraud, especially anti- be used for free to aid the elderly in need. telecom fraud.

“Financial Literacy Promotion” Warming the Elderly at Ordinary Work

One day in May 2017, the hall manager of Shijiazhuang Branch of the Bank received two customers aged over 80. Having learnt that they were here to consult about renew- al of US visa, he led the two to sit in the rest area first. Later, he learnt that they used to be rejected the visa before and thus were worried about the visa this time. After looking through their visa record, with his years of experience in serving going-abroad financial customers, the hall manager explained in details to the elderly the process of applying for US visa, listed with a pen materials to be prepared and told them his own mobile phone number for contact in the future. After the materials were ready, the hall manager helped the two elderly customers send them out. Ten working days later, passports of the two were sent back with US visa. Ordinary moves like this were seen at the Bank’s outlets repeatedly every day. The ordinary staff members of the Bank, with their cozy service and precious persistence, built up the Bank’s reputation of sin- cere and warm service. 74 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 6 Public Benefit and Charity 75

“Financial Literacy Promotion” Campaign Organizing Employee Volunteer Activities According to requirements of CBRC, the Bank carried out the “Financial Literacy Promotion” campaign in September 2017 as hosted by the Head Office and co- organized by branches. During the campaign, subsidiaries of the Bank followed The Bank established the CITIC Bank to disaster-stricken areas, providing warmth Youth Volunteer Association in 2014. unified schedule to organize rich promotion activities in schools and communities and caring to sanitation workers, advocating The association works for the following the Lei Feng Spirit, donating blood, with outlets as base. Literacy promoted included Renminbi, deposits and loans, purposes: to practice the voluntary advocating traffic compliance and raising payment and settlement, credit checking, deposit insurance, wealth management, spirit, disseminate advanced cultures, funds for disaster relief by organizing charity foreign exchange, digital financial service, anti-illegal fund raising, anti-telecom and contribute to the construction of a bazaars etc. By the end of 2017, the Group fraud, safe use of bank card and protection against bad Internet lending at campus. harmonious society characterized by unity organized 164 employee volunteer activities, A total of 1,846 activities of various types were organized and over 920,000 copies of and mutual help, equality and fraternity, involving approximately 3,100 person-times publicity materials were handed out, covering around 1.05 million person-times of and common advancement. Volunteers of of employee volunteers, down by 33.23%. customers. the Bank have made the following solemn At Zhengzhou Branch, Nongye Road Sub-branch visited the commodity market commitments: “Help others and serve the society to our best capacity irrespective of the Group organized 164 employee volunteer near the railway station to publicize intelligent payment and payment collection to activities, involving approximately 3,100 person- merchants; Zhongyuan Road Sub-branch went to an athletic chain club to promote remunerations”. times of employee volunteers digital financial service to young consumers; Jiaozuo New District Sub-branch and Under the leadership of volunteer Anyang Linzhou Sub-branch arrived at a construction site to promote basic financial organizations, employee volunteers of the 33.23% knowledge to migrant workers; Jiaozuo Branch visited a traditional Chinese medical Group participated in various voluntary 3,100 2017 hospital to publicize safe use of bank cards; Anyang Branch came to the grass-roots service activities, including but not limited to popularize how to distinguish authentic RMB banknotes from counterfeit money; to voluntary teaching, caring for the elderly, 4,600 2016 Nanyang Branch visited a car dealer to promote knowledge on loans and insurance caring for children suffering from diseases as well as protection against telecom frauds. as well as other vulnerable groups, donating At Banking Department of the Head Office, Beijing Zhichun Road Sub-branch visited the Cuiwei Campus of RDFZ to promote among teachers financial knowledge on Caring for Autistic Children safe use of bank cards, prevention skills against telecom frauds, e-banking financial knowledge and anti-counterfeit mark of the fifth set of Renminbi; Beijing Cuiwei On the morning of 8 July, volunteers of Zhengzhou Branch of the Bank visited Road Sub-branch arrived at Haihang Kindergarten to give the kids a vivid lesson Kangda Ability Training Center to organize a campaign for care for autistic children. themed “World Money”, introducing currencies of some countries, teaching tips on Senior language trainer of the Center offered basic training to the volunteers how to tell authentic RMB from counterfeits and inviting the kids to try on stage. first. Later, the volunteers presented gifts to the autistic children in training and “Financial Literacy Promotion” accompanied them for habilitation exercise. In order to arouse social attention to the children and promote knowledge on autism rehabilitation, Zhengzhou Branch Banking Department set up a dedicated publicity board.

Joining the “Green Finance • Youth First” Campaign ① ②

On 12 March, the 39th Chinese Tree Planting Day, Xiamen Branch of the Bank actively got engaged in the “Green Finance•Youth First” public benefit activity. Under the ① Zhengzhou Branch of the Bank organized a guidance of gardeners, volunteers of the Bank collaborated with orderly work division to campaign for care for autistic children. dig holes, plant seedlings, backfill soil and water the seedlings and hang cards of good ② Xiamen Branch of the Bank actively got wishes in the trees. In the following 2km walkathon, the volunteers cleared garbage engaged in the “Green Finance•Youth First” along the route in a bid to advocate urban environmental sustainability. public benefit activity. Chapter 7 Green Banking and Environmental Protection 77

Chapter 7 Green Banking and Environmental Protection During the “12th Five-Year Plan” period, the requirements of laws and regulations China promulgated a series of laws such as Environmental Protection Law of and regulations on building “resource- the People’s Republic of China and Energy conserving” and “environmentally Conservation Law of the People’s Republic friendly” society and changing the of China, and the 2015-2017 Strategic Influence of Climate Change previous extensive mode of economic Plan of China CITIC Bank defines the Support for Green Credit development. The State Council also Bank’s industry positioning in the future, reiterated its determination to vigorously namely, adhering to putting the new Promotion of E-banking Transactions develop the environmental protection economy and service industries as well as The Practice of Energy Conservation industry, and has established the National strategic emerging industries represented and Emission Reduction Energy Commission. Such moves will not by energy conservation and environmental only promote the shift of China’s economic protection, new energy, new-generation model from “high carbon” to “low carbon”, information technology, biology and high- but also significantly fuel the development end equipment manufacturing as the key of carbon finance. The Bank strictly follow supporting areas.

Per capita urban power consumption (KwH) Influence of Climate Change 3.96%

4,965.37 2017 The extreme weather and natural reduction, new energy development and disasters caused by climate change afforestation. On the other hand, it will 4,776.08 2016 will, on the one hand, lead to increased pose a serious threat to the health of government spending on the response social groups, and a challenge to the to natural disasters and special subsidies supporting capacity of existing social Per capita urban water consumption (Ton) for energy conservation and emission system and social security fund.

1.55% Support for Green Credit 39.34 2017 38.74 2016 Participation in Green Credit

Defining credit policy. The Bank formulated regulatory requirements and constructed the 2017 Policy on Credit Extension of a green financial management system to 13,000 China CITIC Bank Corporation Limited step up support for green economy, low- and identified its credit extension policy carbon economy and circular economy, By the end of the year, the Group disposed on green credit. Following the spirit of the prevent environmental and social risk around 13,000 electronic devices, an Opinions of the CPC Central Committee and improve its environmental and social increase of 4.04% and the State Council on Accelerating performance. Meanwhile, it optimized the the Construction of Ecological Civilization credit structure and bettered services to and the Integrated Reform Plan for promote transformation of the development Promoting Ecological Progress, the Bank mode. The Policy clarified main support observed the development philosophy of sectors of the Bank’s green credit and innovation, collaboration, green, openness raised requirements for construction of the and sharing, strictly carried out related green financial management system. 78 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 7 Green Banking and Environmental Protection 79

Building a Green Leasing Brand Supporting Renewable Energy

In September 2017, the Bank’s subsidiary CITIC Financial Leasing Co., Ltd. worked Distributed rooftop photovoltaic power generation project developed by a Hebei-based with China Development Bank Leasing, Financial Leasing and Hengxin new energy company adopted clean and environmental-friendly solar energy to build grid- Financial Leasing to set up China’s first green leasing development community. A “symbiotic” connected photovoltaic power station. Relying on photovoltaic modules located on the platform of consensus and connectivity that realized mutual benefit and common growth rooftop of workshops, the project fully utilized land resource, realized power generation with through customer sharing and asset transaction with peers and financial institutions was clean and green solar energy, reduced environmental pollution and eased power shortage in built up. So far, over 100 financial institutions have joined the community. North China. Compared with thermal power with same generation, solar photovoltaic power generation could save 1,777 tons of standard coal and reduce around 36 tons of sulfur dioxide emission and 12.34 tons of nitrogen oxides emission annually. In 2017, the Bank offered the company RMB 60 million credit line in fixed assets to develop the distributed rooftop photovoltaic power generation project, which basically met the project’s loan demand.

Stringent Risk Control of “High Pollution, High Energy Consumption and Over-capacity”30 30 Statistical caliber is based on the balances of items with the category names as per The Bank ramped up on gradual tightening be tightened and exit in a short time, on the Industry Classification of the National and exiting of industries of “high energy the premise that their interests are well Economy (GB/T 4754-2011). consumption, high pollution and over- protected, the Bank adopted the policy 31 Iron and steel industry includes iron making, capacity” and adopted differentiated that credit granting is maintained and steel making, ferrous metal casting, steel policies towards enterprises in the tightening and exiting will be carried out at rolling and processing and ferroalloy smelting. Issuing green bonds. In active response and the country’s first green short-time 32 industries. What will be supported are an opportune time. The Bank practiced list- Cement industry includes cement manufacturing to regulatory guidance, the Bank guided financing bond issued by Tianjin SDIC and cement product manufacturing. 28 Statistical caliber is based on the Green Credit those excellent leading enterprises with based management among the industries. issued debt funds to flow to key sectors, Jinneng Electric Power. 33 Due to round-up of data, sum total of “share Guidelines and Statistics of Energy Saving and high technology, high efficiency, huge By the end of the year, the Bank’s balance in corporate loans” of the items listed above Environmental Protection Projects and Service major areas and weak spots encouraged More green loans. The Bank’s green credit potential and broad market prospect. As of loans to the industries stood at RMB exceeds 2.59%. This data shall prevail. Loans issued by CBRC. by government to realize precision support was mainly granted to projects for green for other companies, the Bank formulated 45.71 billion, up 4.49%, and the share of 29 Statistical caliber includes 21 categories as per 34 Due to round-up of data, sum total of “share of debt market funds for real economy. It transport, renewable and clean energies, the Industry Classification of the National plans in time for their gradual tightening such loans in total corporate loans of the in corporate loans” of the items listed above is guided issuers to register and issue green Economy (GB/T 4754-2011). energy conservation and environmental and exiting. For enterprises that cannot Bank went down by 0.05 percentage point. lower than 2.64%. This data shall prevail. bonds and promoted implementation of protection services, waste disposal, and green bond projects. Presently, credit line pollution prevention and control. By the end Statistics on Loans to Industries of “High Pollution, High Energy Consumption and Over-capacity” of registered projects totaled over RMB 10 of the year, the balance of loans to green billion and the raised funds were mainly credit projects under the new statistical used in construction of green projects and caliber28 stood at RMB 60.358 billion, an “High pollution, high 2017 2016 purchase of raw materials and parts for increase of 52.15% compared with the end energy consumption and Loan balance Share in corporate Loan balance Share in corporate wind generator sets. The projects were of the previous year, and the loan balance over-capacity” industries 29 (RMB 100 million) loans (%) (RMB 100 million) loans (%) 60.358 China’s first green panda bond issued by under the old statistical caliber was RMB China Power International New Energy 27.487 billion, an increase of 7.88%. Iron and steel31 181.09 1.03 219.63 1.31 the balance of loans to green credit 32 projects under the new statistical Cement 36.58 0.21 54.08 0.31 caliber stood at RMB 60.358 billion, Supporting Development of Coal Deep-Processing an increase of 52.15% compared Coke 28.01 0.16 29.25 0.19 with the end of the previous year The Coal deep-processing industry boasts higher utilization efficiency of energy and resources and lower pollutant emissions and is a main approach for clean and efficient Copper smelting 10.95 0.06 12.85 0.07 utilization of coal. An Inner Mongolia-based group is a major large-sized coal enterprise in China that keeps expanding the coal conversion sector and now making full efforts to Aluminum smelting 89.20 0.51 23.17 0.14 27.487 develop a 1,200,000t/y fine chemicals project. The project is the practice of industrialized Lead and zinc smelting clean and effective technologies such as coal gasification, purification and Fischer-Tropsch 10.68 0.06 4.21 0.02 the loan balance under the old synthesis that have been proved successful. In 2017, the Bank offered RMB 2 billion statistical caliber was RMB 27.487 Thermal power generation 100.59 0.57 94.26 0.57 billion, an increase of 7.88% financial support in the form of equity investment with wealth management funds and RMB 6 billion financial support in the form of project loans. Total 457.10 2.5933 437.45 2.6434 80 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 7 Green Banking and Environmental Protection 81

35 Transaction amount of personal Internet banking refers to Identification of Environmental Risk sum of transaction amount of personal Internet banking, B2C Statistics on E-banking Business of the Bank online payment and third-party express payment.

The Bank formulated the Methods and what was evaluated included the of Categorized Management for clients’ management status of the risks, Environmental and Social Risk of China performance status and communication 2017 2016 Changes CITIC Bank Corporation Limited. Based on status with the outside. The evaluation Personal E-banking seriousness degree of their environmental result would be regarded as important and social risk, corporate credit clients or basis for client access, management and Customer number of personal Internet 2,750.95 2,308.19 19.18% projects were categorized into type A, B, exist and the clients’ environmental and banking (10,000 accounts) and C. For type-A or B clients and projects, social risk management was integrated into Transaction amount of personal Internet 123,758.07 114,705.39 7.89% banking35 (RMB 100 million) their progress in environmental and social business processes such as pre-extension risk was subject to dynamic evaluation investigation, review and approval, contract Customer number of personal mobile 2,732.63 1,958.48 39.53% banking (10,000 accounts) during credit application, review and management, credit use review and post- Transaction amount of personal mobile 42,323.68 27,213.52 55.52% approval and post-extension management extension management. banking (RMB 100 million)

Corporate E-banking Supervising Clients for Performance of Contracted Environmental and Social Responsibilities Transaction amount of corporate Internet 5.25% banking (RMB 100 million) 695,965.67 661,236.60 In 2017, Dongguan Branch of the Bank joint hands with China Securities to underwrite the first- Transaction number of corporate Internet 7,547.54 5,222.41 44.52% series “green finance bond” of Bank of Dongguan and ensured use of funds raised by the green banking (10,000 transactions) finance bond in green projects as agreed in contract. Before issuance, the Bank requested the client to add information on management of green project funds and information disclosure in the offering circular. It also hired an independent third-party institution with qualification and experience in green project authentication for green authentication to ensure that the funds The Practice of Energy Conservation raised will be entirely input into green projects, that related decision-making process and capital and Emission Reduction management are up to related standards and that environmental benefit and social influence of the selected project comply with investors’ expectation. Video Conferences

Exiting from Loans to High-pollution Industries By the end of the year, the Bank held level, up by 32.01%, and 4,319 at the In 2017, Suzhou Branch of the Bank had a customer that was a printing and dyeing company about 4,818 video meetings, up by branch level, up by 9.48%. with heavy pollution. Customer manager of the Bank tracked the company for a long time 11.45%, including 499 at the Head Office 4,818 the Bank’s total number of personal and talked with its legal person, requesting the company to control production sewage to mobile banking customers reached 27,326,300 meet environmental requirements. The company actively renovated its production process A4 Copy Paper the Bank held about 4,818 video meetings, up by 11.45% and sewage discharge technologically and all indicators of its environmental impact 39.53% assessment turned out up to standard. The Bank will continue to pay attention to the By the end of 2017, the Group purchased chased approximately 505,500 packs of company’s performance in environmental protection and determine whether to continue with 27,326,300 2017 approximately 548,200 packs of A4 A4 copy paper (an increase of 14.87%, its financial support according to its sewage discharge performance. copy paper (equivalent to approximately equivalent to approximately 1,208.26 19,584,800 2016 36 1,310.28 tons of CO emissions) , with 37 2 tons of CO2 emissions) , with per capita per capita purchase thereof 9.66 packs. purchase thereof 9.48 packs, an increase 499

Amount of personal mobile banking By the end of the year, the Bank pur- of 17.58%. transactions reached RMB 4,232.368 billion the Bank held 499 video meeting- Promotion of E-banking Transactions sats at the Head Office level, up by 55.52% 32.01% The Bank purchased 9.48 pack per capita 4,232.368 2017 With Internet finance as the breakthrough rapid development. By the end of the year, 505,500 point, the Bank mainly focused on mobile the Bank’s total number of personal mobile 2,721.352 2016 finance, and e-banking business achieved banking customers reached 27,326,300, 17.58% the Bank purchased approximately up by 39.53%. Amount of personal mobile 4,319 505,500 packs of A4 copy paper 9.48 2017 banking transactions reached RMB (an increase of 14.87%, equivalent Customer number of personal Internet to approximately 1,208.26 tons of 8.06 2016 the Bank held 4,319 video meet- banking (10,000 accounts) 4,232.368 billion, up by 55.52%. Personal CO2 emissions) ingsats at the branch level, up by 98.96% online banking business was growing 9.48% 19.18% steadily, with existing subscribers reaching 27,509,500, up by 19.18% from a year The transaction substitution rate 2,750.95 2017 earlier. The transaction substitution rate of 36 of e-banking transactions reached Each pack of A4 copy paper is of the 500-piece standard specification and weighs 2.5 kg; CO2 emission e-banking transactions reached 98.96%, factor for the entire life cycle of paper is 956kg CO emission/ton. Data source is DEFRA 2014. 2,308.19 2016 98.96%, representing a year-on-year 2 increase of 1.13 percentage points representing a year-on-year increase of 1.13 37 Each pack of A4 copy paper is of the 500-piece standard specification and weighs 2.5 kg; CO2 emission

percentage points. factor for the entire life cycle of paper is 956kg CO2 emission/ton. Data source is DEFRA 2014. 82 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Chapter 7 Green Banking and Environmental Protection 83

Measures of Paper Management Management Measures of Power Saving

Advocating paperless office, reducing storage of paper documents, implementing electronic Popularizing knowledge on power saving to enhance the awareness; document management; Putting into effect systems on saving power, which shall be subject to supervision and Printing on both sides of paper as much as possible and collecting used paper with printing inspection for civilized office; on one side for re-use; Irregularly patrolling the office area to inspect if power-consuming equipment is powered Using electronic documents, e-mail or WeChat as much as possible in daily document off after working hours and eradicate “ever-bright light”; transfer; Powering off all the power-consuming equipment off work; Adopting integrated purchase, management, application and collection approval for copy Choosing energy-saving lamps with lower power when purchasing lighting appliances paper, which shall be circulated regularly; under the premise of satisfying the need of work and life; Checking and previewing documents before printing to avoid waste of paper; Enhancing management of illumination system and using natural light for illumination in Prohibiting printing or copying of personal documents; office area as much as possible; Strengthening monitoring over paper-using equipment and introducing use monitor Prohibiting use and carry-over of high-power electrical appliances by employees; software for printers and copiers; Shortening standby time of office electronics and electrical appliances. If kept idle for a Promoting publicity and education to enhance employees’ awareness of saving paper. long time, they should be turned to standby or hibernate; Strictly practicing use approval, responsibility taken by dedicated personnel and time limit for heavy-power-consuming equipment; Purchase of Gasoline for Business Vehicles Reasonably adjusting hours when luminous words in office buildings and LED screens are powered on.

2,080,200 By the end of the year, the Group a decrease of 10.98% and equivalent to consumed approximately 2,080,200 4,416.84 tons of CO emissions38. 2 Hardcopy Account Statements the Group consumed approximately liters of gasoline for business vehicles, 2,080,200 liters of gasoline for business vehicles, a decrease of The Bank reinforced efforts to cultivate customer experience in electronic 10.98% Measures of Business Vehicle Management awareness of energy conservation account statements. By the end of Adopting integrated and centralized management of business vehicles and establishing and environmental protection, guiding the year, annual number of credit card archives of business vehicles; customers to shift from hardcopy to account statements of the Bank was 214 3,693 Practicing configuration and purchase standard for business vehicles and controlling electronic account statements with the million with an increase of 33.25%. The gasoline expenditure of the vehicles at the source of engine displacement; It was equivalent to a reduction of use of multiple channels such as its official hardcopy-to-e-statement substitution paper use by approximately 3,863 Filling gasoline with one card designated to one vehicle and establishing a complete website, account statements, SMS text rate was 90.25%, up 10.71 percentage tons and a reduction of 3,693 electronic ledger for car use and fuel filling; messages and Internet platform. It also points compared with the previous tons of CO2 emissions. Prohibiting car use for personal purpose. Business vehicles cannot be left at any staff’s intercepted hardcopy account statements year. It was equivalent to a reduction of home overnight or used for personal purpose in holidays, weekends or after work in workdays; that were returned twice, transformed 193 million hardcopies, a reduction of hardcopy statements of customers of pure paper use by approximately 3,863 tons41 1.368,800 Advocating green travel and travel in non-rush hours and encouraging employees to take public transport means. repayment and pure credit point collection and a reduction of 3,693 tons of CO2 to email statements and provided only emissions. The aforementioned number of the Group delivered approximately electronic account statements for new credit card account statements included 1,368,800 pieces of couriers, an increase of approximately 7.26% customers that applied for card via online 20.87 million hardcopies of enveloped Energy Consumption in Logistics 38 than the previous year channels. The Bank constantly upgraded statements, a decrease of 36.49%, Data source is IPCC Guidelines for National Listing of GHG Emissions and average and optimized account statement service which was equivalent to 399 tons of CO2 42 gasoline consumption intensity is calculated at Per capita urban power consumption By the end of the year, the Group increase of 37.37%. The corresponding of WeChat and official APP to improve emissions . 0.725kg/l. (KwH) delivered approximately 1,368,800 per capita figure was 24.13 pieces of 39 CO2 emission factors were specified inthe 2015 pieces of couriers, an increase of couriers and 23.16 kilogram by weight, Regional Grid Benchmark Emission Factors 3.96% approximately 7.26% than the previous an increase of 9.69% and an increase Waste Disposals in China issued by the National Development and Reform Commission. As no benchmark year, or approximately 1,313,600 of 32.25% than the previous year, 4,965.37 2017 emission factors existed in Tibet’s grid, the kilogram of couriers by weight, an respectively. By the end of the year, the Group disposed of all types were disposed, an increase of data did not include the carbon emission data 4,776.08 2016 around 13,000 electronic devices (including 10.44%. The total paper destroyed through of the power consumption in Tibet Branch of personal computers, displayers, printers, formal channels weighed 131.85 tons, a the Bank. Electricity and Water Consumption 40 fax machines, MFPs, laptops, servers, decrease of 20.72%. CO2 emission factors were specified in the 2015 Per capita urban water consumption (Ton) Regional Grid Benchmark Emission Factors projectors, video cameras, cameras, in China issued by the National Development By the end of the year, the Group 264,882,400 kWh of power (equivalent to recorders, video capture cards, racks, and Reform Commission. As no benchmark 40 consumed 270,739,000 kWh of power, 184,800 of CO2 emissions), 1.54% higher terminals, telephone sets, water dispensers, emission factors existed in Tibet’s grid, the 1.55% 39 equivalent to 188,500 of CO2 emissions) than the previous year. The per capita queuing machines, cash registers, data did not include the carbon emission data of the power consumption in Tibet Branch of 39.34 2017 and the per capita power consumption power consumption was recorded 4,965.37 electronic screens and dashboards), an 13,000 the Bank. was recorded 4,772.92 kWh. The Bank kWh, 3.96% higher than the previous year. increase of 4.04%. Decommissioned 38.74 2016 41 Calculation criteria: Hardcopy statements consumed about 2,102,500 tons of The Bank consumed about 2,098,700 tons office consumables were approximately By the end of the year, the Group weigh 20g/envelope. municipal water, with per capita amount of disposed around 13,000 electronic of municipal water, with per capita amount 48,400 items (including printer ink boxes, 42 devices, an increase of 4.04% CO2 emission factor for the entire life cycle of about 37.07 tons. of about 39.34 tons, approximately 1.55% cartridges, keyboards and mice), an paper is 956kg CO2 emission/ton. Data source By the end of the year, the Bank consumed higher than the previous year. increase of 2.40%. About 52,700 batteries is DEFRA 2014. 84 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Annexes 85

Annexes

Corporate Structure Outlet Map

Shareholders’ General Meeting

Board of Directors Board of Supervisors

Board Office Board Office

Strategic Audit and Related Risk Nomination and Consumer Supervision Nomination Development Party Transactions Management Remuneration Rights Protection Committee Committee Harbin Branch Committee Control Committee Committee Committee Committee Urumqi Branch Changchun Branch Senior Management Shenyang Branch

Hohhot Branch Committee Controland Internal Risk Management Committe Brand Management Committee Wholesale Business Committee Retail Business Committee Asset and Liability Committee Information Technology Committee Innovation Management Disposal Committee Non-performing Asset Committee Credit Approval Marketing Committee Business Committee Asset Management Committee Risk Early Warning Head Office Credit Business Committee Financial Markets Committee Procurement Committee Inquiry working Leading Group Anti-money Laundering The Head Office

Tianjin Branch Dalian Branch Shijiazhuang Branch

Yinchuan Branch Taiyuan Branch

Xining Branch Lanzhou Branch Jinan Branch Qingdao Branch

Xi’an Branch Zhengzhou Branch

Tier-two Nanjing Branch Suzhou Branch branches Hefei Branch Shanghai Branch Tier-one Chengdu Branch Head Office-level (or quasi-tier-one) departments Institutions directly under the Head Office Branch Lhasa Branch Wuhan Branch Sub- Ningbo Branch branches Chongqing Branch Hangzhou Branch

Nanchang Branch

General Office Department Human Resource Department Financial & Accounting Department Assets & Liabilities Department Risk Management Department Credit Approval Department Credit Management Department ProtectionLaw & Internal Compliance Department Audit Department Department Corporate Banking Department Business International Department Investment Banking Departments Strategic Customers Department Institutional Banking Software R&D Centre Database Centre Changsha Branch CNCBI CIFH Fuzhou Branch Guiyang Branch

Xiamen Branch ciam Kunming Branch

Guangzhou Branch Nanning Branch CNCB Dongguan Branch (Hong Kong) Shenzhen Branch CNCB Capital Investment Haikou Branch Cif Investment Department Private Banking Department Personal Loan Credit Card Center Department Financial Markets Department Interbank Business Commercial Draft Center Department Asset Custody Business Center Asset Management E-Banking Department Management Department Information Technology Department Operation Management And Supervision Disciplinary Inspection Department For Office & Security Culture, Labor Union Center Centralized Procurement Administration Department Protection Office) Department (Consumer Retail Banking Lin'an CITIC Fund Rural Bank

CITIC Cif Investment Financial Fund Leasing management (shenzhen) CITIC aiBank

South China Sea Islands

In 10 January 2017, the Bank’s Head Office established the Private Banking Department; on 19 March, the Group Customers Department of the Bank’s Head Office was renamed as the Strategic Customers Department of the Head Office, and the Institutional Business Department renamed as Institution Customers Department of the Head Office; in February 2018, the Board Office of the Bank’s Head Office was divided into the Board of Directors’ Office of the Head Office and the Board of Supervisors’ Office of the Head Office. 86 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Annexes 87

Honors

Overseas Institutions

1. The Bank was honored “Bank of The Year China” in the 2017 competition hosted by the British magazine The Banker. 1 7 8 12 13 14 15 18 17 17 25

2. The Bank ranked 22nd among the “Top 500 Global Bank Brands” published by the British magazine The Banker.

3. The Bank won the “Best Boutique Private Bank for 2016” award in the competition for “Private Bank Awards in China” hosted by the Asiamoney magazine.

4. The Bank won the “Best Leveraged Buyout Financing Project in Asia Pacific” and “Best Syndicated Project in Asia Pacific” awards from the Asia Pacific 4 4 Loan Market Association (APLMA). 25 25 5. The Bank ranked 78th among the “Top 2,000 Global Companies” published 11 16 19 19 25 25 by the Forbes magazine.

6. The Bank ranked the 25th in terms of tier-one capital among the “Top 1,000

World Banks” published by the British magazine The Banker. 3 9 7. The Bank won the “Best Corporate and Investment Bank” award in the competition for Best Banks in China 2017 hosted by Asiamoney.

8. In the competition for the 2017 “Retail Banks of Excellent Financial Services” hosted by The Asian Banker, the Bank won the “Award for the Retail Bank Making the Greatest Progress in China and Asia Pacific”. Other Domestic Institutions

9. The Bank won the “Best Private Wealth Service Quality Award in China” from 20. The Bank was honored “National Advanced Internal Audit Collective in 2014-2016” by the China Institute of Internal Audit. The Asian Banker magazine. 21. The Bank received the “Outstanding Unit for Corporate Culture Construction in 2012-2017” from the China Corporate Culture Institute. Domestic Media Outlets 22. The Bank received the “Deal of the Year”, “Best Market Maker”, “Best Forex Transaction Award”, “Best Forward/Swap Trading Award” and “Best Spot Trading Award” from the China Foreign Exchange Trade System in 2016. 10. The Bank won the “Outstanding Financial Brand Communication Award of the Year” in the competition for “Outstanding Financial 23. The Bank received the “Poverty Alleviation Star Award 2016” from the China Foundation for Poverty Alleviation. Brands in China 2016” hosted by Financial News. 24. The Bank was honored “Best Enterprise for Supply Chain Finance” by the organizing committee of the China Supply Chain 11. In the competition for the “Seventh Financial Money Golden Pixiu Awards” hosted by Financial Money, the Bank was honored Finance Annual Conference. the “Gold Retail Bank of the Year”, with its overseas financial services honored the “Gold Market Influence Financial Product of the Year”. 25. The Bank received the “Best International Settlement Bank”, “Industry Contribution Award for Pension Service”, “Best Private Bank”, “Best Family Wealth Manager”, “Best Non-financial Value-added Service Award” and “Best Customer Experience Award” 12. The Bank won the “Best Private Bank in China - Best Asset Management Award” in the competition for “Jin Zhen Awards” hosted from the China Banking Association. by the Wealth Plus magazine.

13. The Bank won the “Outstanding Mobile Banking” award in the competition for “Golden Tripod Awards” hosted by National 22 22 22 22 22 Business Daily. 14. The Bank won the “Best Corporate Auto Financial Service Bank 2017” awards in the competition for “China Auto Golden Engine Awards” hosted by 21st Century Business Herald. 15. The Bank won the “Overseas Financial Service Bank with Outstanding Competitiveness in 2017” award from China Business Journal. 21 24 25 16. The Bank was honored “Outstanding Commercial Bank in Asia 2017” and “Outstanding Financing Service Bank for VIP Customers st st 2017” awards in the competition of “21 Century Financial Competitiveness in Asia” hosted by 21 Century Business Herald. 20 23 17. The Bank won the “Best Brand Value Bank of the Year” and “Best VIP Service Innovation Bank of the Year” in the competition for “Top Chinese Financial Institutions - Golden Dragon Awards 2017” hosted by Financial News. 18. The Bank won the “China Social Responsibility Poverty Alleviation Award 2017” in the competition of “China Social Responsibility and Public Welfare 2017” co-hosted by xinhuanet.com and the CSR Research Center, Chinese Academy of Social Sciences. 19. The Bank was honored “Outstanding Private Bank of the Year” and “Outstanding Overseas Financial Service Bank of the Year” in the competition for “China Outstanding Financial Awards” hosted by The Economic Observer in 2017. 88 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Annexes 89

Independent Assurance Report

PricewaterhouseCoopers

English Translation for Reference Only The procedures we performed comprised: 1) Interview with the management in terms of the strategy and policy of CSR report, to inquire the formulation and implementation of Independent practitioner’s assurance report CRS-related strategy and policy; To: Board of Directors of China CITIC Bank Co., Ltd. 2) Interviews with departments in charge of CSR report and departments involved in providing performance information for inclusion We have been engaged to perform a limited engagement on the 2017 Corporate Social Responsibility Report (“CSR report”) of China in the CSR report, to inquire the design and operation of CSR report information collection and summary procedures; CITIC Bank Co., Ltd. (“the CITIC Bank”). 3) Consistency comparison between key financial performance data in the CSR report with related data in financial report;

Responsibilities of the Board of Directors 4) Analytical procedure of KPIs in the CSR report, based on which we carried out sampling and recalculation of selected KPIs; The Board of Directors of the CITIC Bank is responsible for the preparation of the CSR report based on the Guidelines on 5) For information other than KPIs, selecting samples for comparison and check with related internal documentation or public Environmental Information Disclosure by Companies Listed on the (“SSE”) and Guidelines on Preparation information; of ‘Corporate Report on Performance of Social Responsibilities’ (collectively known as the “SSE Guidelines”), and with reference to Global Reporting Initiative (“GRI”)’s Sustainability Reporting Guidelines (“G4”), Opinions on Strengthening Social Responsibilities 6) On-site interviews with Tianjin Branch; of Banking Financial Institutions promulgated by the CBRC, Guidelines on Corporate Social Responsibilities of Banking Financial 7) Other procedures deemed necessary. Institutions promulgated by the China Banking Association, ISO 26000, and GB/T36001-2015 Guide on the Preparation of Social Responsibilities Report. This responsibility include designing, implementing and maintaining internal control relevant to the preparation Our assurance was with respect to the year ended 31 December 2017 information only and we have not performed any procedures of the CSR report that is free from material misstatement, whether due to fraud or error. with respect to earlier periods or any other elements included in the CSR report. The Bank’s Board of Directors is also responsible for setting the objectives in respect of social responsibility performance and reporting, including identification of stakeholders and material issues that are relevant to these stakeholders. Inherent Limitation The absence of a significant body of established practice on which to draw to evaluate and measure non-financial information allows Our Independence and Quality Control for different, but acceptable, measures and measurement techniques and can affect comparability between entitites. We have complied with the independence and other ethical requirement of the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants, which is founded on fundamental principles of integrity, objectivity, Conclusion professional competence and due care, confidentiality and professional behavior. Based on the procedures performed and evidence obtained, nothing has come to our attention that causes us to believe that the Our firm applies International Standard on Quality Control 1 and accordingly maintains a comprehensive system of quality control CSR report is not prepared, in all material respects, based on the SSE Guidelines and with reference to GRI’s Sustainability Reporting including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable Guidelines (“G4”). legal and regulatory requirements.

Restriction on Use Practitioner’s Responsibilities Our report has been prepared for and only for the board of directors of the CITIC Bank and for no other purpose. We do not assume It is our responsibility to express a conclusion on whether we are aware of any matter that would materially affect the CSR report based responsibility towards or accept liability to any other person for the content of this report. on limited assurance engagement. We conducted our work in accordance with the International Standard on Assurance Engagements 3000 (Revised) “Assurance Engagements Other Than Audits or Reviews of Historical Financial Information”. This standard requires that we plan and perform our work to form the conclusion. The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than for a reasonable assurance engagement. Consequently the level of assurance in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. Accordingly, we do PricewaterhouseCoopers Zhong Tian LLP not express a reasonable assurance opinion on any matter that would materially affect the CSR report. Our work involves assessing Shanghai, China the risks of material misstatement in the SR report whether due to fraud or error, and responding to the assessed risks. The extent of 26 March 2018 procedures selected depends on our judgment and assessment of the engagement risk. Within the scope of our work, we have performed the following procedures in the Head office and zhengzhou Branch of the CITIC Bank. 90 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report Annexes 91

Index for GRI43 Indicators

Location of Location of Location of Location of Location of Location of Profile disclosure Profile disclosure Profile disclosure Profile disclosure Profile disclosure Profile disclosure

1. Strategy and Analysis G4-25 P18-20 G4-51 P25 G4-EN11 Undisclosed G4-LA1 P59-60 G4-HR9 Undisclosed 2017 Annual G4-1 P2-6 G4-26 P18-20 G4-52 G4-EN12 Not applicable G4-LA2 P60-65 G4-HR10 Undisclosed report

G4-2 P2-6 G4-27 P18-20 G4-53 Undisclosed G4-EN13 Not applicable G4-LA3 P63 G4-HR11 Undisclosed

2. Organizational Profile 5. Report Profile G4-54 Undisclosed G4-EN14 Not applicable G4-LA4 Undisclosed G4-HR12 Undisclosed

G4-3 Inside Cover G4-28 Inside Cover G4-55 Undisclosed G4-EN15 P81-83 G4-LA5 P61-62 G4-SO1 Undisclosed

G4-4 P6 G4-29 Inside Cover 7. Ethics and Integrity G4-EN16 P81-83 G4-LA6 P62 G4-SO2 Undisclosed

G4-5 P92 G4-30 Inside Cover G4-56 Undisclosed G4-EN17 Not applicable G4-LA7 Undisclosed G4-SO3 Undisclosed

G4-6 P6 G4-31 Inside Cover G4-57 P62-63 G4-EN18 2017 ESG report G4-LA8 Undisclosed G4-SO4 P42-45

G4-7 P6 G4-32 P88-89 G4-58 P62-63 G4-EN19 P81-83 G4-LA9 P64 G4-SO5 Undisclosed

G4-8 P6 G4-33 P88-89 G4-EC1 Undisclosed G4-EN20 Not applicable G4-LA10 P64 G4-SO6 Not applicable

G4-9 P6 6. Governance G4-EC2 P73-75 G4-EN21 2017 ESG report G4-LA11 P61 G4-SO7 Not applicable Proprietary G4-10 P6，P59-60 G4-34 G4-EC3 G4-EN22 Undisclosed G4-LA12 P59-60 G4-SO8 P23 Undisclosed information 2017 Annual Proprietary Proprietary G4-11 P60-61 G4-35 G4-EC4 G4-EN23 2017 ESG report G4-LA13 G4-SO9 Undisclosed report information information Proprietary G4-12 P57 Undisclosed G4-EC5 G4-EN24 G4-LA14 P57 G4-SO10 G4-36 information Not applicable P57

G4-13 P57 G4-37 P20-21 G4-EC6 P59-60 G4-EN25 Not applicable G4-LA15 Not applicable G4-SO11 Undisclosed

G4-14 P17-21 G4-38 P24-26 G4-EC7 Undisclosed G4-EN26 Not applicable G4-LA16 Undisclosed G4-PR1 Not applicable

G4-15 P81- G4-39 P24-26 G4-EC8 Not applicable G4-EN27 Not applicable G4-HR1 Not applicable G4-PR2 Not applicable

3. Identified Material Aspects 2017 Annual G4-40 G4-EC9 Undisclosed G4-EN28 Not applicable G4-HR2 Not applicable G4-PR3 Not applicable and Boundaries report G4-HR3 G4-PR4 G4-16 P43 G4-41 P24-26 G4-EN1 P81-83 G4-EN29 Undisclosed Undisclosed Not applicable

G4-17 P6 G4-42 P21 G4-EN2 P83 G4-EN30 Not applicable G4-HR4 Undisclosed G4-PR5 P52

G4-18 Inside Cover G4-43 Undisclosed G4-EN3 P81-83 G4-EN31 Undisclosed G4-HR5 Undisclosed G4-PR6 Not applicable Proprietary P7 G4-EN4 G4-EN32 G4-HR6 G4-PR7 G4-19 G4-44 Undisclosed P81-83 P57 Undisclosed information

G4-20 Inside Cover G4-45 P29-30 G4-EN5 P81-83 G4-EN33 P57 G4-HR7 Undisclosed G4-PR8 Undisclosed Proprietary G4-21 Inside Cover G4-46 G4-EN6 G4-EN34 Not applicable G4-HR8 Not applicable G4-PR9 P29-30 P81-83 information

G4-22 Not applicable G4-47 Undisclosed G4-EN7 P81-83 2017 Annual G4-23 Inside Cover G4-48 G4-EN8 report P82

4.Stakeholder Engagement G4-49 P20-21 G4-EN9 Not applicable

G4-24 P19 G4-50 P20-21 G4-EN10 Undisclosed 43 GRI stands for Global Reporting Initiative. 92 China CITIC Bank Co., Ltd. 2017 Corporate Social Responsibility Report

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Head Office, China CITIC Bank, No.9 Chaoyangmen Beidajie, Dongcheng District, Beijing

010-89936232 [email protected] 100010

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