Bank of China Shareholders meeting in the field direct hit: This year's results will be satisfied with the answer

-Our correspondent Bai Baoyu June 18, "A+h" listed the Chinese Bank of China (Shanghai Stock Exchange Trading Code: 601988, HKEx trading Code: 03988) 2008 Annual General Meeting of shareholders held in Beijing and the Four Seasons Hotel in Hong Kong.　　The Beijing venue is spoken in Mandarin and the Hong Kong venue is Cantonese, accompanied by simultaneous English translation, with advanced video technology linking the two venues closely. Bank of China chairman Xiao and Governor Lihui in Beijing. Beijing time 9:30 A.M., the meeting starts on time.　　Bank of China executives and shareholders have launched a wonderful dialogue to improve understanding and trust. Last year's poor performance this year will be a satisfactory answer to shareholders: the net profit of BOC at the end of last year was 63.5 billion yuan, an increase of about 13% per cent year-on-year, well below the average of the growth of the peers.　　What will happen this year? Executive: Thank you for your interest in the company. We think this result is quite difficult, because, as we all know, the Bank of China for historical reasons, it has a considerable foreign exchange exposure. BOC is China's international bank, doing a lot of international business. So under the influence of the global financial crisis, the income of the whole asset falls very big. At the same time, there are some bonds we have made a lot of provision, last year only the provision of bonds to reach more than 27 billion. This is not a write-off, and if the bond market recovers, we can also "adjust" the provision according to accounting standards and market valuations.　　So in this sense, the world has experienced such a great financial crisis, the international banks have to run a difficult situation, the Bank of China as a more international business banks, can have 13% of the profit growth, has been very difficult.　　Since this year, we are also concerned about fluctuations in the international market, we have also made strategic adjustments, a larger focus on the development of domestic business, the appropriate increase in our renminbi business, but also in the large-scale reduction of our foreign currency exposure, especially our bond trading exposure, reduce risk.　　We believe that we will have a satisfactory performance this year. First half of the year's results with the same period last year shareholders: Bank of China in the first quarter of the performance is not ideal, the mainland banking market is how to forecast?　　What do you think of the market prospect and development? Executive: Bank of China has released its first quarterly report, for various reasons, there has been a certain decline over the same period last year, mainly due to a decrease in the level of net spreads on spreads, which we expect the Chinese economy to develop in the second half of this year should be better than the first half, and the banking sector should be able to benefit from it,　　So we are hoping that the first two quarters of this year are basically flat with last year, which is our forecast, and we hope to further strengthen our internal management, including risk management, internal control, and better business development, and to make greater contributions to our shareholders. Shareholder: I would like to ask, the Bank of China this year in the credit aspect more, how to protectIs there a quality assurance in credit quality and asset quality?　　Executive: 2009 years ago 5 months, the Bank of China's credit business development is relatively good, our loan growth is probably ranked second in the three major lines, loan growth rate in the three major lines ranked first. The rapid development of credit services does not mean that we have loosened control over the quality of credit assets, nor does it mean that we have relaxed risk management. In fact, we attach great importance to risk management, Bank of China's board of directors and Management proposed that we expand the scale of the same time, to adjust and optimize our structure, while strengthening risk management to ensure the quality of our development.　　In this regard, we still adhere to strict credit approval procedures, such as the Bank of China's credit approval by the head office and the first-level branch to approve. And we have conducted a rigorous review of the implementation of credit policies in a professional way.　　At the same time, we are under the National macro-economic development policy has maintained pressure, for example, for overcapacity, high pollution, high energy consumption of industries, we are strict restrictions on credit access. Through various measures, we can still guarantee the quality of credit growth.　　1 This year-May, the balance of non-performing assets and non-performing assets of the Bank of China are lower than the end of last year, we will further strengthen risk management, strengthen the management to ensure the quality of loans.　　Fees and commissions fell by a year-on-year increase of shareholders: the first quarter of this year, the Chinese bank fees and commissions of net income fell 4.71% Year-on-year, but the chain rose by 39%, this is related to the capital market and financial products sales this aspect of the warmer? Executive: Intermediary business mainly has 8 major categories of products, Bank of China's main products are trade finance, foreign currency settlement, foreign exchange cash exchange, has been the bank to do relatively strong.　　The rest are financial advisers, renminbi clearing and settlement, financial management, affiliate funds and consignment insurance.　　The first quarter of the decline is mainly the international trade settlement by the impact of the global financial crisis, and this is the strength of the Bank of China, the international settlement of the relatively high income, market share accounted for a relatively large, which makes the first quarter of the decline in profits is relatively large. But this is much better than in the fourth quarter of last year, the fourth quarter of 08, the entire international trade seems to have stalled, so that the first quarter year-on-year decline, the chain rise.　　and the capital market-related, such as agency fund sales is relatively stable. Non-interest income is challenged by peers: non-interest income has always been the strength of the Bank of China. In the 30 years of reform and opening-up, our foreign exchange business, the trade settlement business, has been leading among Chinese peers. But 2008, by the same trade to catch up, China Merchants Bank 2008 per capita non-interest income of 251,400 yuan, and our Chinese bank is 249,300 yuan, a difference of 2100 yuan.　　Non-interest income can be said to be our main source of revenue, wondering what management thought of 2009. Executive: Your attention is also very reasonable. Non-profitIncome is the main competitive battlefield of domestic financial industry, there are two reasons. The first is because interest levels have fallen and spreads have narrowed since last year, making non-interest-income more important in income. The second is non interest income it and loans are not necessarily year-on-year growth, so it has counter-cyclical, so that non-interest income in the sustainable development of income stability is very helpful, because of these reasons, now domestic banks have non-interest income as a very important business to develop.　　So the competition is very fierce.　　The Bank of China does occupy a leading position in non-interest income, which is a strong challenge to other banks, which I think is the cause of market competition. But we still occupy the dominant position in this market, because the market look at the main indicators of non-interest income is not interest income as the proportion of total income, then our non-interest income accounted for the proportion of total income or about 25%, compared to our competitors, this ratio is very high in the country.　　So in this sense, we are still trying to consolidate our strategic position on non-interest income. is very competitive, but also affected by the environment, so this year's non-interest income is still more pressure, because the entire trade so far down 25%, which affects our traditional income.　　The second traditional income is about foreign exchange income, when the RMB exchange rate fluctuation is relatively large, this income is relatively large, and this year, the renminbi exchange rate relative stability, so the exchange income is also affected by some.　　But we also see that as the country's stimulus policy has been introduced, lending has grown so fast that the non-interest-bearing income associated with the loans is growing, such as the cost of the company's information, the settlement of its currency, the liquidation of its income, which is now growing well. On the retail side, the stock market is now trading actively, which is also helpful to the Affiliate fund.　　But, at the same time, in the financial crisis, the residents of the concept and structure of wealth management are changing, so wealth management and credit cards and other income can be. So overall, this year, the whole structure of fees and charges from foreign currencies to the renminbi, we have done a lot of good arrangements and preparation, hoping to have a better result.