Bank of Communications Co., Ltd. 201 4

Ann u al R e p o r t S tock C o Bank of Communications Co., Ltd. d No. 188, Yin Cheng Zhong Lu, Shanghai, P.R. China e: 03328 www.bankcomm.com Company Profile

Founded in 1908, Bank of Communications Co., Ltd. is one of the Banks with the longest history and was one of the note-issuing banks in China in the past. Bank of Communications started its business operation after its re-establishment in 1987. It is the first nationwide state-owned joint-stock commercial bank in China, with its head office located in Shanghai. The Bank was listed on the Hong Kong Stock Exchange in June 2005 and on the Shanghai Stock Exchange in May 2007. The Bank ranked No. 19 among the global top 1,000 banks in terms of Tier 1 Capital rated by The Banker in 2014, positioning among the top 20 of global banks and ranked No. 217 among the “Fortune 500 Companies”.

The Bank currently has 224 domestic branches, comprising 30 tier-1 branches, 7 branches directly managed by the Head Office and 187 tier-2 branches. The Bank has also established 2,785 banking outlets in 230 prefecture-level cities or above and 165 county-level cities nationwide. In addition, the Bank has set up 13 overseas1 institutions, which comprise branches in Hong Kong, New York, San Francisco, Tokyo, Singapore, Seoul, Frankfurt, Sydney, Macau, Ho Chi Minh City, and Taipei, Bank of Communications (UK) Co., Ltd. and representative office in Toronto. It has established 54 overseas banking outlets in total.

The Bank is one of the major financial services providers in China. The Bank’s business scope compromises of commercial banking, securities services, trust services, financial leasing, fund management, insurance, offshore financial services and so on. Its wholly-owned subsidiaries include BOCOM International Holdings Company Limited, China BOCOM Insurance Co., Ltd. and Bank of Communications Finance Leasing Co., Ltd. Subsidiaries controlled by the Bank include Bank of Communications Schroder Fund Management Co., Ltd., Bank of Communications International Trust Co., Ltd., BoCommLife Insurance Company Limited, Dayi Bocomm Xingmin Rural Bank, Zhejiang Anji BOCOM Rural Bank Ltd., Xinjiang Shihezi BOCOM Rural Bank and Qingdao Laoshan BOCOM Rural Bank. The Bank is also the largest shareholder of Jiangsu Changshu Rural Commercial Bank Co., Ltd. and the paratactic largest shareholder of Bank of Tibet Co., Ltd.

The Bank’s development strategy is to become “a first class listed comprehensive banking group focusing on international expansion and specialising in wealth management” (hereinafter referred to as “BoCom Strategy”).

1 Include Hong Kong, Macao and Taiwan. Contents Bank of Communications Co., Ltd. Annual Report 2014 H Share

Definitions and Important Risk Reminder 2 Independent Auditor’s Report 161 Corporate Information 4 Consolidated Financial Statements 163 Financial Highlights 6 Notes to the Consolidated Financial Statements 169 Chairman’s Statement 8 Supplementary Unaudited President’s Statement 12 Financial Information 335 Management Discussion and Analysis 17 Changes in Share Capital and Shareholdings of Substantial Shareholders 80 Directors, Supervisors, Senior Management and Human Resource Management 88 Report of the Board of Directors 112 Report of the Supervisory Committee 120 Corporate Governance Report 126 Corporate Social Responsibilities 144 Significant Events 152 Organisation Chart of Bank of Communications Group (2014) 156 Ranking and Awards 158

Bank of Communications Co., Ltd. Annual Report 2014 H Share 1 Definitions and Important Risk Reminder

Definitions The following terms will have the following meanings in the Annual Report unless otherwise stated:

“Model Code” Refers to Model Code for Securities Transactions by Directors of Listed Issuers as set out in the Appendix 10 of the Hong Kong Listing rules “Company Law” Refers to the Company Law of the People’s Republic of China “Articles of Associations” Refers to the Articles of Association of Bank of Communications Co., Ltd. as approved by CBRC “Securities Law” Refers to Securities Law of the People’s Republic of China “Reporting Period” Refers to the period from 1 January 2014 to 31 December 2014 “Group” Refers to the Bank and its subsidiaries “Bank” Refers to Bank of Communications Co., Ltd. “Ministry of Finance” Refers to the Ministry of Finance of the People’s Republic of China “North Eastern China” Refers to Includes Liaoning Province, Jilin Province and Heilongjiang Province “Overseas” Refers to Includes Hong Kong Branch, New York Branch, Singapore Branch, Seoul Branch, Tokyo Branch, Frankfurt Branch, Macau Branch, Ho Chi Minh City Branch, San Francisco Branch, Sydney Branch, Taipei Branch, Bank of Communications (UK) Co., Ltd., representative office in Toronto and other overseas subsidiaries “Northern China” Refers to Includes Beijing, Tianjin, Hebei Province, Shanxi Province and Inner Mongolia Autonomous Region “Eastern China” Refers to Includes Shanghai (excluding the Head Office), Jiangsu Province, Zhejiang Province, Anhui Province, Fujian Province, Jiangxi Province and Shandong Province “Central and Southern Refers to Includes Henan Province, Hunan Province, Hubei Province, Guangdong China” Province, Hainan Province and Guangxi Autonomous Region “HSBC” Refers to The Hongkong and Shanghai Banking Corporation Limited “Basis point” Refers to one in ten thousand “BoCOM Insurance” Refers to China BOCOM Insurance Co., Ltd. “BoCOM International” Refers to BOCOM International Holdings Company Limited “BoCOM International Trust” Refers to Bank of Communications International Trust Co., Ltd. “BoCommLife Insurance” Refers to BoCommLife Insurance Company Limited “BoCOM Schroder” Refers to Bank of Communications Schroder Fund Management Co., Ltd. “BoCOM Leasing” Refers to Bank of Communications Finance Leasing Co., Ltd.

2 Bank of Communications Co., Ltd. Annual Report 2014 H Share Definitions and Important Risk Reminder (CONTINUED)

“SSE” Refers to the Shanghai Stock Exchange “SSF” Refers to the National Council for Social Security Fund “Western China” Refers to Includes Chongqing, Sichuan Province, Guizhou Province, Yunnan Province, Shaanxi Province, Gansu Province, Qinghai Province, Ningxia Autonomous Region, Xinjiang Uyghur Autonomous Region and Tibet Autonomous Region “HKEx” Refers to The Stock Exchange of Hong Kong Limited “Hong Kong Listing Rules” Refers to The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited “CBRC” Refers to China Banking Regulatory Commission “CSRC” Refers to China Securities Regulatory Commission “Head Office” Refers to the Group’s Head Office in Shanghai

Important Risk Reminder The Bank is mainly exposed to credit risk, market risk, operational risk and compliance risk during its operation and development. The Bank has taken and will continue to take various measures to proactively manage risks it faces during its business operation. Please refer to “Risk Management” under “Management Discussion and Analysis”.

Bank of Communications Co., Ltd. Annual Report 2014 H Share 3 CORPORATE INFORMATION

CORPORATE INFORMATION INFORM