Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. AGRICULTURAL BANK OF CHINA LIMITED 中國農業銀行股份有限公司 (a joint stock company incorporated in the People’s Republic of China with limited liability) (Stock Code: 1288) 2016 ANNUAL RESULTS ANNOUNCEMENT The board of directors (the “Board of Directors”) of Agricultural Bank of China Limited (the “Bank”) is pleased to announce the audited results of the Bank and its subsidiaries (together, the “Group”) for the year ended 31 December 2016, which was prepared in accordance with International Financial Reporting Standards promulgated by the International Accounting Standards Board, and the proposed cash dividend for the year of 2016. The annual results have been reviewed by the Audit and Compliance Committee of the Board of Directors. This announcement contains the information required under the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited in relation to the preliminary announcements of annual results. The printed version of the 2016 annual report of the Bank will be despatched to the holders of H Shares of the Bank, and will also be available on the websites of The Stock Exchange of Hong Kong Limited (www.hkexnews.hk) and the Bank (www.abchina.com) in April 2017. By Order of the Board of Directors Agricultural Bank of China Limited ZHANG Keqiu Company Secretary Beijing, the PRC 28 March 2017 As at the date of this announcement, our executive directors are Mr. ZHOU Mubing, Mr. ZHAO Huan and Mr. LOU Wenlong; our non-executive directors are Mr. ZHAO Chao, Mr. ZHOU Ke, Mr. ZHANG Dinglong, Mr. CHEN Jianbo, Mr. HU Xiaohui and Mr. XU Jiandong; and our independent non-executive directors are Mr. WEN Tiejun, Mr. Francis YUEN Tin-fan, Ms. XIAO Xing, Mr. LU Jianping and Mr. WANG Xinxin. 1 PROFILE The predecessor of the Bank was Agricultural Cooperative Bank established in 1951. Since the late 1970s, the Bank has evolved from a state-owned specialized bank to a wholly state-owned commercial bank and subsequently a state-controlled commercial bank. The Bank was restructured into a joint stock limited liability company in January 2009. In July 2010, the Bank was listed on both the Shanghai Stock Exchange and the Hong Kong Stock Exchange. As one of the major integrated financial service providers in China, the Bank is committed to building an international first-class commercial banking group with featured operations, efficient and convenient services, diversified functions, as well as demonstrated value-creation capability. Capitalizing on its comprehensive business portfolio, extensive distribution network and advanced IT platform, the Bank provides a diverse portfolio of corporate and retail banking products and services for a broad range of customers, and conducts treasury operations and asset management. Our business scope also includes, among other things, investment banking, fund management, financial leasing and life insurance. At the end of 2016, the Bank had total assets of RMB19,570,061 million, loans and advances to customers of RMB9,719,639 million and deposits of RMB15,038,001 million. Our capital adequacy ratio was 13.04%. The Bank achieved a net profit of RMB184,060 million in 2016. The Bank had a total of 23,682 domestic branch outlets at the end of 2016, including the Head Office, the Business Department of the Head Office, three specialized business units managed by the Head Office, 37 tier-1 branches (including branches directly managed by the Head Office), 365 tier-2 branches (including business departments of branches in provinces), 3,506 tier-1 sub-branches (including business departments in municipalities, business departments of branches directly managed by the Head Office and business departments of tier-2 branches), 19,714 foundation-level branch outlets, and 55 other establishments. Our overseas branch outlets consisted of ten overseas branches and three overseas representative offices. The Bank had fourteen major subsidiaries, including nine domestic subsidiaries and five overseas subsidiaries. The Financial Stability Board has included the Bank into the list of Global Systemically Important Banks for three consecutive years since 2014. In 2016, the Bank ranked No. 29 in Fortune’s Global 500, and ranked No. 5 in The Banker’s “Top 1000 World Banks” list in terms of tier 1 capital. The Bank’s issuer credit ratings assigned by Standard & Poor’s were A/A-1, and the long-/short-term issuer default ratings assigned by Fitch Ratings were A/F1. 2 CONTENTS Definitions ................................................................ 4 Basic Corporate Information and Major Financial Indicators ...................... 6 Honours and Awards ....................................................... 13 Chairman’s Statement ...................................................... 16 President’s Statement ....................................................... 19 Discussion and Analysis ..................................................... 22 Environment and Prospects ................................................. 22 Reform and Development Plan for 2016-2020 ................................... 24 Financial Statement Analysis ................................................ 26 Business Review ......................................................... 49 County Area Banking Business .............................................. 75 Risk Management and Internal Control ........................................ 84 Capital Management ....................................................... 109 Changes in Share Capital and Shareholdings of Substantial Shareholders ............ 110 Details of Preference Shares ................................................. 115 Directors, Supervisors and Senior Management ................................. 119 Corporate Governance ...................................................... 134 Report of the Board of Directors .............................................. 151 Report of the Board of Supervisors ........................................... 158 Significant Events .......................................................... 165 Organizational Chart ....................................................... 168 List of Branches and Institutions ............................................. 169 Appendix I Liquidity Coverage Ratio Information Appendix II Leverage Ratio Information Appendix III Indicators for Assessing Global Systematic Importance of Commercial Banks Appendix IV Auditor’s Report and Consolidated Financial Statements Appendix V Unaudited Supplementary Financial Information 3 DEFINITIONS In this results announcement, unless the context otherwise requires, the following terms shall have the meanings set out below: 1. A Share(s) Ordinary shares listed domestically which are subscribed and traded in Renminbi 2. ABC/Agricultural Bank of China/the Bank/ Agricultural Bank of China Limited, or Agricultural the Group/We Bank of China Limited, and its subsidiaries 3. Articles of Association The Articles of Association of Agricultural Bank of China Limited approved by the China Banking Regulatory Commission on 14 August 2014 4. Basis point(s) A unit of measure related to the change in an interest rate or exchange rate, which is equivalent to 0.01% 5. CASs/PRC GAAP The Accounting Standards for Enterprises promulgated on 15 February 2006 by the Ministry of Finance of the People’s Republic of China and other related rules and regulations subsequently issued 6. CBRC China Banking Regulatory Commission 7. County Area Banking Business We provide customers in the County Areas with a broad range of financial services through our branch outlets located in counties and county-level cities in the People’s Republic of China. We refer to such banking business as the “County Area Banking Business” or “Sannong Banking Business” 8. County Area Banking Division An internal division with management mechanism adopted by the Bank for specialized operation of financial services provided to Sannong and the County Areas, as required under our restructuring into a joint stock limited liability company, which focuses on the County Area Banking Business with independence in aspects such as governance mechanism, operational decision making, financial accounting as well as incentive and constraint mechanism to a certain extent 9. County Area(s) The county-level regions (excluding the district-level areas in the cities) in China and the areas under their administration, including counties and county-level cities 10. CSRC China Securities Regulatory Commission 11. Duration An approach to measure the weighted average term of cash flows of debt securities, which mainly reflects the sensitivity of the value of debt securities to interest rate movements 4 12. Economic capital Capital allocated to assets or businesses for the purpose of mitigating risks based on internal assessment of the management of commercial banks 13. Global Systemically Important Banks Banks recognized as key players in the financial market with global features as announced by the Financial Stability Board 14. H Share(s) Shares listed on The Stock Exchange of Hong Kong Limited and subscribed and traded in Hong Kong Dollars, the nominal value of which are denominated in