Ping An Bank ^Investors

Ping An Bank Co., Ltd. (SZSE stock abbreviation: PAB; stock code: 000001) is a national joint-stock commercial bank headquartered in Shenzhen. It was formerly known as Shenzhen Development Bank Co., Ltd. and renamed as Ping An Bank in July in the same year after the merger of former Ping An Bank Co., Ltd. in June 2012. Ping An Insurance (Group) Company of China, Ltd., together with its subsidiaries, hold in total approximately 59% of Ping An Bank’s shares and therefore is the controlling shareholder of Ping An Bank. As of the end of 2015, Ping An Bank had 37,937 employees and provided diversified financial services to clients through 54 nationwide branches and 997 establishments. Adhering to the “customer-oriented (externally) and people-oriented (internally)” philosophy, Ping An Bank continues to “change, innovate and develop”, focusing on “four wheels” (corporate banking, retail banking, interbank trading and investment banking), taking “specialization, intensification, integrated finance and internet finance” as operating strategies, thinking out of the box for the concept of banking and enhancing quality and efficiency. The Bank also promoted branch transformation and further developed the transformation of business units, building the “three name cards” of “boutique finance, smart finance, eco-friendly finance”, enforcing the supply side reform in the banking industry, proactively supporting the development of the real economy in order to facilitate the transformation of China’s economy comprehensively. Ping An Bank continued to further transform the organizational pattern, and implemented the system of business units. As of the end of 2015, there were 11 product business units, 6 industry business units and 1 platform business unit, forming the “full coverage” model of the business chain comprising seven industries, namely the real estate, energy and mining, transportation, modern logistics, modern agriculture, healthcare and culture and travel. Facilitating the real economy through professional operation, the brand image of “Ping An Bank, make a real difference” was then established. As at the end of December 31, 2015, Ping An Bank’s total assets amounted to RMB2,507.149 billion, representing a growth of 14.67% from the beginning of the year; balance of all deposits was RMB1,733.921 billion, representing an increase of RMB200.738 billion or 13.09% from the beginning of the year, leading its industry peers, with a steady increase in market share; balance of all loans (including discounted bills) reached RMB1,216.138 billion, up by 18.68% from the beginning of the year; operating income was RMB96.163 billion in 2015, representing a year-on-year growth of 31.00%, of which operating profit before provisions increased by 43.93% year on year to RMB59.380 billion; net profit was RMB21.865 billion, up by 10.42% year on year; a capital adequacy ratio of 10.94%, a Tier 1 capital adequacy ratio and a core Tier 1 capital adequacy ratio of 9.03% were recorded, which met the regulatory standards. For the treasury and inter-bank business, Ping An Bank upheld the operating strategy of “smaller capital, better structure, valued clients and good efficiency” under which it sped up the shift of operation model, expanded its customer base and transaction volume and continually optimized inter-bank assets and liabilities structure to enhance investment return, reduce inter-bank debt cost and expand non-interest revenue source, thus progressing the optimization of the revenue structure. In 2015, the impact of the three business brands “Gold Bank”, “Options Expert” and “Smart Transaction” of Ping An Bank kept growing, and the internet platform Hang E-Tong developed rapidly with over 500 clients in cooperation. For the investment banking business, in 2015, non-interest net income from investment banking business of Ping An Bank amounted to RMB5.389 billion, representing a year on year increase of 67%; the balance of net assets in custody amounted to RMB3.69 trillion, representing an increase of 105% as compared with the beginning of the year, and custody fee income amounted to RMB2.939 billion, representing an year on year increase of 109.18%. Ping An Bank promoted its sector funds as a key area of its investment banking business so as to support real economy and throw itself into key area constructions benefiting to the public welfare; it also attached importance on clients of strategic cooperation, facilitated in-depth cooperation with industry chains and major companies from different sectors and focused on strategic regions and key supported industries set by the Chinese government under the One Belt One Road policy. In 2015, the small enterprise finance business set restructuring as its main task and risk exposure control as its major operating target. Dai Dai Ping An Corporate Card grew steadily with the accumulated number of Dai Dai Ping An Corporate Card clients of 958,600 of the Bank; the deposit balance of Dai Dai Ping An amounted to RMB12.913 billion; the number of holders was 247,100; the credit balance of Dai Dai Ping An amounted to RMB86.481 billion; the loan balance amounted to RMB52.548 billion; and the average interest rate stayed stable at 15.45% as of December 31, 2015. As for the construction of corporate culture, Ping An Bank values employees and fosters talents. They have established a scientific performance assessment and incentive system, providing their staff with a fair evaluation mechanism and varied opportunities to develop; they value talent cultivation and fully utilize Ping An Integrated Finance resources and external high-end training resources that they initiated the first integrated financial management trainee program in the nation and implemented training programs for high potential candidates and Orange Navigation trainees, accumulating talents for the development of integrated finance. Meanwhile, they also strived to build the “Family Culture”, initiating caring activities and organizing various health and leisure clubs for their employees in order to relieve them from worries and make sure that they are healthy physically and mentally, creating a Ping An Family for their employees to depend on. For corporate social responsibility, Ping An Bank fulfils its part actively to make contribution to society. They continue to optimize the social responsibility management system and incorporate corporate sustainability into the overall strategy; they actively develop inclusive finance and promote green credit to support the innovation and development of low-carbon economy, cyclic economy and micro-economy. They spread the positive energy in action and give back to society. In the recent years, Ping An Bank has won honors including “Best Joint Stock Bank of the Year”, “Top 100 Listed Companies Most Respected by Investors”, “Best Bank in Supply Chain Financial Service”; Orange-e-Net received awards including “Top Ten Financial Product Innovation Award” by The Banker and “Excellent Case Award of Online Supply Chain Finance for 2015”; “Ping An Orange” received awards including “Best Business Model for the Year—Innovation Award” by the Chinese Internet Banking Union and “Ten Best Internet Finance Innovations for the Year” by The Banker.