diff --git "a/China/4.Agricultural Bank of China_$221.35 B_Financials/2021/results.txt" "b/China/4.Agricultural Bank of China_$221.35 B_Financials/2021/results.txt"
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@@ -0,0 +1,26321 @@
+中国农业银行
+2,321,406
+2,437,275
+2,699,895
+2,805,107
+2,896,619
+Deposits and placements with and
+loans to banks and
+other financial institutions
+Financial assets held under
+resale agreements
+Total liabilities
+Deposits from Customers
+Retail deposits
+665,444
+981,133
+Cash and balances with central banks
+758,925
+6,152,743
+7,422,930
+on loans
+720,570
+618,009
+540,578
+479,143
+404,300
+Loans and advances to customers, net
+16,454,503
+14,552,433
+12,819,764
+11,461,179
+10,315,238
+Financial investments
+8,230,043
+7,822,659
+6,885,075
+661,741
+635,514
+837,637
+12,934,171
+11,926,040
+10,904,731
+10,076,833
+9,405,347
+Overseas and others
+623,353
+562,741
+517,440
+514,244
+527,869
+Deposits and placements from banks
+and other financial institutions
+1,913,471
+1,785,176
+6,612,673
+6,807,956
+7,196,002
+7,618,591
+816,206
+708,551
+371,001
+540,386
+26,647,796
+24,994,301
+22,923,630
+385,252
+20,933,665
+21,907,127
+20,372,901
+18,849,155
+17,602,056
+16,545,889
+Including: Corporate deposits
+8,037,929
+19,622,912
+1,829,272
+389,410
+413,416
+295.45
+299.73
+266.20
+256.11
+2.00
+240.00
+1.81
+208.37
+1.59
+1.57
+1.50
+1.40
+1.43
+180.00
+1.00
+300.00
+0.50
+(%)
+2.50
+30.46
+29.23
+30.00
+1.60
+1.20
+20.00
+0.80
+10.00
+0.40
+0.00
+0.00
+2017 2018 2019 2020 2021
+2017 2018 2019 2020 2021
+Non-performing loan ratio
+(%)
+Allowance to non-performing loans
+120.00
+60.00
+0.00
+15,170,442
+8,134,487
+24,877,491
+13,360,342
+7,095,770
+22,608,452 21,052,309
+11,940,322
+10,719,538
+6,514,383
+6,147,584
+389,475
+421,390
+343,961
+187,502
+6,198,743
+5,391,677
+4,664,852
+3,999,200
+426,179
+9,168,032
+424,329
+7,117,212
+Allowance for impairment losses
+Overseas and others
+Retail loans
+0.00
+2017 2018 2019 2020 2021
+2017 2018 2019 2020 2021
+Major Financial Data
+Basic Corporate Information and Major Financial Indicators
+At the end of the reporting period
+(in millions of RMB)
+Total assets
+419,913
+31 December 31 December 31 December 31 December 31 December
+2020
+2019
+2018
+2017
+Total loans and advances to customers
+Including: Corporate loans
+29,069,155 27,205,047
+17,175,073
+Discounted bills
+2021
+1,449,863
+1,254,791
+Financial assets sold under
+202,631
+193,133
+Net profit attributable to
+equity holders of the Bank
+241,183
+215,925
+212,098
+202,783
+192,962
+Net cash generated from
+operating activities
+239,615
+(60,936)
+358,396
+105,927
+212,924
+633,417
+216,400
+Net profit
+138,605
+136,647
+N/A
+Impairment losses on assets
+N/A
+N/A
+N/A
+N/A
+98,166
+Total profit before tax
+295,880
+265,050
+266,576
+251,674
+239,478
+241,936
+Annual Report 2021 7
+8
+Basic Corporate Information and Major Financial Indicators
+Net interest margin4
+2.12
+2.20
+2.23
+2.38
+2.32
+Net interest spread5
+1.96
+2.04
+2.09
+2.25
+2.20
+Return on risk-weighted assets 1,6
+1.36
+1.27
+14.57
+13.66
+12.43
+11.35
+Financial Indicators
+2021
+2020
+2019
+2018
+2017
+Profitability (%)
+164,699
+Return on average total assets²
+0.83
+0.90
+0.93
+0.95
+Return on weighted average
+net assets³
+11.57
+0.86
+165,886
+Credit impairment losses
+205,268
+2,817,924
+2,498,311
+2,073,343
+1,731,946
+Common Equity Tier 1
+(CET1) capital, net¹
+2,042,480
+1,875,372
+1,740,584
+1,583,927
+1,339,953
+Additional Tier 1 capital, net¹
+359,881
+319,884
+199,894
+3,057,867
+Net capital¹
+1,426,415
+1,670,294
+repurchase agreements
+36,033
+109,195
+Debt securities issued
+1,507,657
+1,371,845
+53,197
+1,108,212
+Tier 2 capital, net¹
+157,101
+780,673
+475,017
+Equity attributable to equity holders
+of the Bank
+2,414,605
+2,204,789
+1,948,355
+319,789
+31.27 30.49
+655,506
+17,849,566
+577,987
+545,079
+500,870
+488,159
+542,898
+449,905
+Net fee and commission income
+80,329
+74,545
+72,927
+67,742
+64,928
+Operating expenses
+260,275
+229,897
+224,096
+Net interest income
+602,557
+629,350
+659,332
+622,668
+16,989,668
+557,833
+15,485,352
+79,906
+409,510
+13,712,894
+79,906
+312,087
+12,605,577
+Risk-weighted assets¹
+2021
+2019
+2018
+2017
+Operating results for the year
+(in millions of RMB)
+Operating income
+721,746
+2020
+2.00
+32.96
+2.12
+2.
+Articles of Association
+3.
+A Share(s)
+4.
+CASS/PRC GAAP
+5.
+CBIRC
+6.
+County Area(s)
+7.
+County Area Banking Business
+8.
+County Area Banking Division
+9.
+ABC/Agricultural Bank of China/
+the Bank/the Group/We
+CSRC
+1.
+Definitions
+176
+Appendix Liquidity Coverage Ratio Information
+Appendix II Leverage Ratio Information
+Appendix III Net Stable Funding Ratio Information
+182
+184
+185
+Appendix IV The Indicators for Assessing Systematic Importance of
+Commercial Banks
+Appendix V Auditor's Report and Consolidated Financial Statements
+Appendix VI Unaudited Supplementary Financial Information
+189
+191
+359
+Annual Report 2021 1
+2
+In this report, unless the context otherwise requires, the following terms shall have the meanings set out below:
+10.
+ESG
+11.
+Hong Kong Stock Exchange
+15.
+Hong Kong Listing Rules
+16.
+Huijin
+17.
+MOF
+18.
+PBOC
+19.
+Sannong
+20.
+SSF
+Definitions
+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 Renminbi
+14.
+H Share(s)
+13.
+AGRICULTURAL BANK OF CHINA
+Global Systemically Important Banks
+12.
+Green Finance
+Agricultural Bank of China Limited, or Agricultural Bank of China
+Limited and its subsidiaries
+The Articles of Association of Agricultural Bank of China Limited
+amended pursuant to the Approval on Change of the Registered
+Capital of Agricultural Bank of China Limited (Yin Bao Jian Fu [2018]
+No. 199) issued by the China Banking and Insurance Regulatory
+Commission on 25 September 2018
+Ordinary shares listed domestically which are subscribed and traded in
+Renminbi
+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
+174
+China Banking and Insurance Regulatory Commission, or its
+predecessors, the former China Banking Regulatory Commission and/or
+the former China Insurance Regulatory Commission, where the context
+requires
+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
+An internal division with management mechanism adopted by us 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
+China Securities Regulatory Commission
+Environment, society and corporate governance
+Banks recognized as key players in the financial market with global
+features as announced by the Financial Stability Board
+Economic activities designed to support environmental improvement,
+respond to climate change and efficient use of resources, that is,
+financial services provided for project investment and financing,
+project operation, risk management, etc. in the fields of environmental
+protection, energy saving, clean energy, green transportation, green
+building, etc
+| 中国农业银行
+The county-level regions (excluding the district-level areas in the
+cities) in the People's Republic of China and the areas under their
+administration, including counties and county-level cities
+List of Branches and Institutions
+Organizational Chart
+171
+4
+24
+10
+Discussion and Analysis
+President's Statement
+Environment and Prospects
+14
+18
+19
+Formulation and Implementation of Strategy
+21
+Financial Statement Analysis
+23
+Business Review
+38
+Chairman's Statement
+Basic Corporate Information and Major Financial Indicators
+Definitions
+Contents
+2021 ANNUAL REPORT
+中国农业银行
+AGRICULTURAL BANK OF CHINA
+Agricultural Bank of China Limited
+(A joint stock company incorporated in the People's Republic of China with limited liability)
+Stock Code: 1288
+耕品
+County Area Banking Business
+美丽
+build a beautiful China
+AGRICULTURAL BANK OF CHINA
+Profile
+The predecessor of the Bank was Agricultural Cooperative Bank established in 1951. Since the
+resumption of establishment in February 1979, 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.
+The Bank is one of the major integrated financial service providers in China, aiming at high-quality
+development, highlighting the two positions of "a leading bank serving rural revitalization" and
+"a major bank serving the real economy", and fully implementing the three strategies in Sannong and
+County Areas, green finance and digital operation. 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 2021, the
+Bank had total assets of RMB29,069,155 million, loans and advances to customers of RMB17,175,073
+million and deposits from customers of RMB21,907,127 million. Our capital adequacy ratio was 17.13%.
+The Bank achieved a net profit of RMB241,936 million in 2021.
+As of the end of 2021, we had 22,807 domestic branch outlets, including the Head Office, Business
+Department of the Head Office, three specialized institutions managed by the Head Office, four training
+institutes, 37 tier-1 branches, 402 tier-2 branches, 3,348 tier-1 sub-branches, 18,961 foundation-level
+branch outlets and 50 other establishments. Our overseas branch outlets consisted of 13 overseas
+branches and four overseas representative offices. We had 16 major subsidiaries, including 11 domestic
+subsidiaries and five overseas subsidiaries.
+The Financial Stability Board has included the Bank into the list of Global Systemically Important Banks
+for eight consecutive years since 2014. In 2021, the Bank ranked No. 29 in the Fortune's Global 500, and
+ranked No. 3 in The Banker's "Top 1000 World Banks" list in terms of tier 1 capital. At the date of this
+annual report, Standard & Poor's affirmed long-/short-term issuer credit ratings of the Bank at A/A-1
+with stable outlook. Moody's affirmed long-/short-term bank deposit ratings of the Bank at A1/P-1 with
+stable outlook and Fitch Ratings affirmed long-/short-term issuer default ratings of the Bank at A/F1+
+with stable outlook.
+耘天
+The Stock Exchange of Hong Kong Limited
+59
+65
+Internal Audit
+152
+External Audit
+154
+Communication with Stakeholders
+155
+Other Information on Corporate Governance
+156
+Report of the Board of Directors
+158
+Report of the Board of Supervisors
+164
+Significant Events
+167
+Honors and Awards
+149
+146
+Internal Control
+Risk Governance
+Capital Management
+79
+Information on Environmental, Social and Corporate Governance
+80
+Corporate Governance Report
+99
+Shareholding Structure
+Risk Management
+100
+114
+Operation of Corporate Governance
+129
+Related Party Transactions and Intra-group Transactions
+145
+Incentive & Constraint Mechanism
+146
+Directors, Supervisors and Senior Management
+1.38
+The Rules Governing the Listing of Securities on The Stock Exchange of
+Hong Kong Limited
+Ministry of Finance of the People's Republic of China
+30,000,000
+29,069,155
+27,205,047
+24,877,491
+22,608,452
+21,052,309
+20,000,000
+10,000,000
+0
+2017 2018 2019 2020 2021
+Deposits from customers
+(in millions of RMB)
+24,000,000
+21,907,127
+20,372,901
+(in millions of RMB)
+18,849,155
+Total assets
+| 中国农业银行
+Address
+17-18/F, East Tower, World Financial Centre 1,
+No. 1, Dongsanhuan Zhong Road, Chaoyang District,
+Beijing, PRC
+Fangda Partners
+26/F, One Exchange Square, 8 Connaught Place, Central,
+Hong Kong, PRC
+KPMG Huazhen LLP
+8/F, Office Tower E2, Oriental Plaza, 1 East Chang An Avenue,
+Dongcheng District, Beijing, PRC
+SHI Jian, SONG Chenyang
+KPMG
+8/F, Prince's Building, 10 Chater Road, Central, Hong Kong, PRC
+Annual Report 2021 5
+6
+Basic Corporate Information and Major Financial Indicators
+Financial Highlights
+(Financial data and indicators recorded in this report are prepared in accordance with the International Financial
+Reporting Standards (the "IFRSS") and denominated in RMB, unless otherwise stated)
+AGRICULTURAL BANK OF CHINA
+17,602,056
+18,000,000 16,545,889
+12,000,000
+100,000
+50,000
+0
+Net profit
+241,936
+212,924 216,400
+202,631
+2017 2018 2019 2020 2021
+Cost-to-income ratio
+(%)
+(%)
+2.38
+2.40 2.32
+40.00
+2.23 2.20
+150,000
+200,000 193,133
+250,000
+(in millions of RMB)
+6,000,000
+0
+2017 2018 2019 2020 2021
+Net interest margin
+Total loans and advances to customers
+(in millions of RMB)
+18,000,000
+International auditor
+17,175,073
+13,360,342
+13,500,000
+11,940,322
+10,719,538
+9,000,000
+4,500,000
+2017 2018 2019 2020 2021
+15,170,442
+Name of the undersigned accountants
+Address
+Domestic auditor
+Website of Hong Kong Stock Exchange
+publishing the annual report (H Shares)
+Location where copies of
+the annual report are kept
+Listing exchange of A Shares
+Stock name
+Stock code
+Share registrar
+Listing exchange of H Shares
+Stock name
+Stock Code
+Share registrar
+中國農業銀行股份有限公司
+中國農業銀行
+AGRICULTURAL BANK OF CHINA LIMITED
+AGRICULTURAL BANK OF CHINA (ABC)
+Website of Shanghai Stock Exchange
+publishing the annual report (A Shares)
+Selected media and websites
+for information disclosure
+Principal place of business in Hong Kong
+Internet website
+The People's Bank of China
+Agriculture, rural areas and rural people
+National Council for Social Security Fund of the People's Republic
+of China
+Annual Report 2021 3
+4
+Basic Corporate Information and Major Financial Indicators
+Basic Corporate Information
+GU Shu
+Legal name in Chinese
+Legal name in English
+Abbreviation
+Legal representative
+Authorized representative
+Secretary to the Board of Directors
+and Company Secretary
+Registered address and office address
+Postal code
+Hotline for customer service and complaint
+Abbreviation
+Central Huijin Investment Ltd.
+ZHANG Qingsong
+HAN Guoqiang
+1288
+Computershare Hong Kong Investor Services Limited
+(Address: Shops 1712-1716, 17th Floor, Hopewell Center,
+183 Queen's Road East, Wanchai, Hong Kong, PRC)
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Basic Corporate Information and Major Financial Indicators
+Trading exchange and platform of
+preference shares
+Stock name (stock code)
+Share registrar
+The Integrated Business Platform of Shanghai Stock Exchange
+農行優1 (360001), 農行優2 (360009)
+China Securities Depository and Clearing Corporation Limited,
+Shanghai Branch
+(Address: 3/F, China Insurance Building,
+No. 166 Lujiazui East Road, New Pudong District,
+Shanghai, PRC)
+Legal advisor as to laws of Chinese mainland King & Wood Mallesons
+Address
+Legal advisor as to laws of Hong Kong
+Address
+The Stock Exchange of Hong Kong Limited
+ABC
+No. 166 Lujiazui East Road, New Pudong District,
+Shanghai, PRC)
+(Address: 3/F, China Insurance Building,
+China Securities Depository and Clearing Corporation Limited,
+Shanghai Branch
+Address: No. 69, Jianguomen Nei Avenue, Dongcheng District,
+Beijing, PRC
+Tel: 86-10-85109619 (Investors Relations)
+Fax: 86-10-85126571
+E-mail: ir@abchina.com
+No. 69, Jianguomen Nei Avenue, Dongcheng District, Beijing, PRC
+100005
+95599
+www.abchina.com
+HAN Guoqiang
+25/F, Agricultural Bank of China Tower,
+China Securities Journal (www.cs.com.cn), Shanghai Securities
+News (www.cnstock.com), Securities Times (www.stcn.com)
+and Securities Daily (www.zqrb.cn)
+www.sse.com.cn
+www.hkexnews.hk
+Office of the Board of Directors of the Bank
+Shanghai Stock Exchange
+農業銀行
+601288
+50 Connaught Road Central, Hong Kong, PRC
+1.48
+213,963
+Net fee and commission income to
+8.33
+Total equity to total assets ratio
+59.88
+60.65
+62.25
+62.45
+61.40
+total assets ratio¹
+Risk-weighted assets to
+13.74
+15.12
+8.13
+16.13
+17.13
+Capital adequacy ratio¹
+11.26
+12.13
+12.53
+12.92
+13.46
+Tier 1 capital adequacy ratio¹
+10.63
+11.55
+11.24
+16.59
+11.04
+7.85
+6.79
+AGRICULTURAL BANK OF CHINA
+|中国农业银行
+Calculated by dividing the balance of non-performing loans (excluding accrued interest) by the balance of total loans
+and advances to customers (excluding accrued interest).
+Calculated by dividing operating and administrative expenses by operating income in accordance with CASS, which is
+consistent with the corresponding figures as stated in the financial report of the Bank prepared in accordance with
+CASS.
+Calculated by dividing net profit by risk-weighted assets at the end of the period. The risk-weighted assets are
+calculated in accordance with the relevant regulations of the CBIRC.
+Calculated as the difference between the average yield on interest-earning assets and the average cost of
+interest-bearing liabilities.
+Calculated by dividing net profit by the average balances of total assets at the beginning and the end of the period.
+Calculated in accordance with the Rules for the Compilation and Submission of Information Disclosure by Companies
+that Offer Securities to the Public No. 9- · Computation and Disclosure of Return on Net Assets and Earnings per
+Share (2010 Revision) issued by the CSRC and International Accounting Standard 33 - Earnings per share.
+Calculated by dividing net interest income by the average balances of interest-earning assets.
+8.
+7.
+6.
+5.
+7.41
+4.
+3.
+2.
+23
+Notes: 1. Figures were calculated in accordance with the Capital Rules for Commercial Banks (Provisional) and other relevant
+regulations.
+4.15
+4.54
+5.00
+5.39
+5.87
+Net assets per ordinary share11
+Data per share (RMB Yuan)
+45
+11.44
+1.53
+Common Equity Tier 1 (CET1)
+0.59
+0.59
+0.59
+0.65
+Diluted earnings per share³
+0.58
+0.59
+0.59
+0.59
+0.65
+Basic earnings per share³
+0.58
+Data per share (RMB Yuan)
+31.27
+30.49
+30.46
+Cost-to-income ratio
+11.96
+11.24
+11.59
+11.31
+11.13
+operating income
+capital adequacy ratio¹
+32.96
+Net cash flows per share generated from
+operating activities
+29.23
+(0.17)
+Capital adequacy (%)
+0.68
+3.77
+1.81
+208.37
+1.59
+256.11
+4.08
+1.40
+295.45
+4.15
+4.30
+Allowance to loan ratio 10
+266.20
+299.73
+Allowance to non-performing loans
+1.57
+4.17
+Non-performing loan ratio
+1.43
+1.02
+1.95
+0.30
+2021
+31 December 31 December 31 December 31 December 31 December
+2019
+2018
+2017
+Asset Quality (%)
+2020
+We strengthened the service capability of outlets. We optimized the service processes, improved customer
+experience, and met the customer needs of service in the digital era. We improved the service environment of
+our outlets, enriched personalized, special and differentiated service contents, provided door-to-door services for
+special groups such as elderly customers, and enhanced the financial service capabilities for people's livelihood.
+We strengthened the safety operation and management of outlets. We strengthened the management and
+control of key aspects of case prevention, improved emergency plans and disposal and improved the emergency
+service model for extreme situations, so as to improve the level of risk control at the outlets.
+Information on Environmental, Social and Corporate Governance
+Online Channels
+Mobile Banking. As of the end of 2021, the Bank had 410 million individual customers of mobile banking, an increase
+of 50 million from the end of the previous year, with a transaction amount of RMB86.27 trillion, a year-on-year
+increase of 13.6%; and 4.15 million corporate customers of mobile banking, an increase of 1.19 million from the end
+of the previous year, with a transaction amount of RMB1.92 trillion, a year-on-year increase of 20.0%.
+Online Banking. As of the end of 2021, the Bank had 401 million registered individual customers of online
+banking, an increase of 45 million from the end of the previous year, with a transaction amount of RMB25.5
+trillion; and 9.47 million corporate customers of financial services platforms, an increase of 1.16 million from the
+end of the previous year, with a transaction amount of RMB268 trillion, a year-on-year increase of 26.3%.
+Self-service Banking. We launched the construction of a unified platform for intelligent terminals, integrated
+equipment resources of each outlet, and optimized equipment business functions and service processes.
+As of the end of 2021, the Bank operated 56.8 thousand super online counters, 62.1 thousand cash-type
+self-service devices and 15.3 thousand self-service terminals, with a number of average daily transaction of
+14,569.1 thousand.
+Remote Channels
+Digital transformation encountered obvious achievement. We enriched the service scenes of remote online
+channels, enhanced the multi-round interaction capability of intelligent robots, and continued to improve the
+customer service experience of mobile banking, Internet banking and micro-banking channels. In 2021, remote
+banking intelligent robots served 187 million customers, online human customer service served 7.18 million
+customers, and new media customer service reached 59.52 million customers.
+We improved customer experience for special groups. We launched the "one-click direct" manual service for
+elderly customers through voice and online channels, and piloted remote appointment service for special groups
+and the elderly. We strengthened remote service guarantee for County Area Banking, launched "cloud expert"
+remote video services in regions such as Qinghai, Tibet and Xinjiang, and offered video services in Mongolian,
+Tibetan, Yi and Uyghur.
+We enhanced remote collaborative service capability. We enriched remote video service scenes and launched
+such businesses as remote interview for mortgage loans of engineering equipment, remote same-screen
+guidance on super counters, and warm service of large-print version of videos for mobile banking. We
+broadened the service scope of "air counter" and continued to provide customers with zero-touch quality
+services such as debit card password unlocking, sleep account activation and individual customer information
+modification.
+Annual Report 2021 95
+96
+Channel Expansion and Innovation
+AGRICULTURAL BANK OF CHINA
+Information on Environmental, Social and Corporate Governance
+In 2021, the Bank reached a total of 327 million customers through all-media customer service (including voice,
+online, video, and new media), of which 73.69 million were manually served through telephone channels, with a
+customer satisfaction of 99.7%.
+|中国农业银行
+The Bank persisted in serving the real economy and supporting small and micro businesses as its own responsibility,
+further promoted digital transformation, innovated inclusive finance service models, strictly upheld our risk
+compliance, and promoted the high-quality development of inclusive finance business. As of the end of 2021,
+the Bank's balance of loans for the small and micro enterprises' was RMB1,321.962 billion, an increase of
+RMB369.323 billion or 38.8% compared to the end of the previous year, 25.6 percentage points higher than that
+across the Bank; the loan customers were 1.9155 million, an increase of 0.3483 million compared to the end of the
+previous year; and the annual interest rate of the accumulative loans in 2021 stood at 4.10%.
+The requirements were adjusted according to the Notice of the General Office of China Banking and Insurance Regulatory
+Commission on Further Promoting the High-Quality Development of Financial Services for Small and Medium-sized Enterprises
+in 2021 (CBIRC [2021] No. 49), excluding the data related to bill discounting and rediscounting business.
+We implemented a special audit on IT management, covering information security, data security, management
+effectiveness, business continuity management and other relevant items.
+We played the role of "service fulcrum" of physical outlets and improved the service channel system of
+"foundation-level branch outlets, self-service outlets, Huinongtong service stations, Internet financial services,
+remote banking and movable services" to provide comprehensive and three-dimensional financial services.
+During the financial reporting audit, the external auditor tested specific control points in areas of IT development
+planning, security, internal supervision, organizational structure and personnel, and risk management of
+the Bank. In addition, the external auditor put emphasis on cyber security and data security management,
+including the Bank's cyber and information security management mechanism, and the governance and control
+of infrastructural protection for critical information, data security management, and personal information
+protection.
+Annual Report 2021 93
+Information on Environmental, Social and Corporate Governance
+Availability of Financial Services
+Inclusive Finance
+94
+Strengthened the construction of the inclusive finance service system. A two-level inclusive finance specialized
+institution system was established, consisting of 1,000 head office-level and 1,000 branch-level specialized
+institutions. We penetrated our business focus, specifying the outlets focusing on the credit business
+development for small and micro enterprises and establishing a classified operation and management system
+for the outlets. Meanwhile, we continued to build the digital marketing service system for inclusive finance,
+optimized the features of the "inclusive E station" system and deployed it to corporate mobile banking, portal
+website, WeChat Apps and local administrative systems.
+Improved the long-term service mechanism for inclusive finance. We have established differentiated policies
+and systems for inclusive business. The economic capital assessment and pricing for internal fund transfer
+were assigned preferentially to inclusive loans, and proportion of inclusive business performance evaluation
+stayed above 10%. We earmarked special incentive strategy funding, separately matched the incentive pay and
+launched policies for liability exemption conditional on due diligence.
+Improved the digital risk control system for inclusive finance. We made full use of data cross-validation,
+optimized the risk identification system and implemented the whole-process risk prevention and control so as to
+control the non-performing rate of inclusive loans in a tolerant range.
+Accessibility of Channels
+1
+Through various offline, online and remote channels, the Bank continued to innovate service products, optimize
+service quality and expand service scope, so as to provide customers with extensive and accessible financial services.
+Offline Channels
+We served rural revitalization and created a new pattern of development. We maintained the stability of the
+total number of outlets, continuously optimized the layout of outlets, and relocated outlets to areas covering
+new urban areas, urban-rural and suburban areas, key towns to provide strong channel support for serving rural
+revitalization and the real economy.
+We promoted the transformation of outlets from business processing centers to marketing centers. We
+strengthened the construction of outlet marketing teams, carried out special trainings on diversified marketing
+ability, promoted systems such as outlet mobile butler and outlet ecological mapping, and organized all kinds of
+team marketing to enhance outlet marketing efficiency.
+Optimized and innovated the online system for inclusive finance product. We improved the layered and classified
+product innovation mechanism, enriched financing scenes and created a product series of "ABC E-loan", so as
+to meet the financing needs of inclusive customers such as small and micro businesses, individual industrial and
+commercial households and farmers.
+The number of outlets in poverty alleviation areas, high-altitude areas and border areas increased steadily, and
+more than 1,300 self-service devices were deployed in towns without outlets to expand the coverage of financial
+services.
+We cultivated a culture of compliance. We formulated and continuously improved the Code of Conduct for
+Employees of Agricultural Bank of China to establish the basic principles for employees to do the right things,
+and strictly prohibit employees from soliciting or accepting bribes or seeking improper benefits in any way.
+We launched different versions of mobile banking such as rural, large-print, elderly and ethnic minority versions,
+optimized terminal service processes, and enhanced the intelligent, personalized and exclusive service capabilities
+of mobile banking.
+We conducted special audits of anti-money laundering, with a focus on the implementation of the regulatory
+requirements on anti-money laundering promulgated by the PBOC and the CBIRC.
+The high-frequency and high-quality compliance trainings on anti-money laundering and sanction risk
+management were held with continuously expanded coverage. Over 1.1 million attendances were trained
+throughout the year, covering the Directors, the Supervisors and the senior management members, the "Three
+Lines of Defense" of the Head Office, the heads of all tier-1 branches and subsidiaries of integrated operation,
+new employees, and the personnel in anti-money laundering and sanction risk management positions at
+all levels.
+Employee Ethical Standards Training
+Information Technology Audit
+Annual Report 2021 97
+Information on Environmental, Social and Corporate Governance
+We set out general requirements for the employees' professional ethics and conduct in four aspects, including
+dedication, credibility, diligence and compliance. It also specifies the special requirements by the laws and
+regulators for bank employees in nine aspects, including confidentiality obligations, conflict of interest, customer
+relations, fair competition, integrity and self-discipline, colleague relations, daily office work, professional image
+and supervision and reporting.
+Strictly complying with laws and regulations on anti-money laundering, we formulated the customer
+identification and due diligence system, developed a customer due diligence IT system, carried out risk rating
+related to customer money laundering, classified management and identity information governance, and
+continuously improved the integrity of information. Access is prohibited for customers who do not comply with
+national laws and regulations, regulatory requirements or the Bank's risk appetite. We adopted different due
+diligence measures for customers, business relationships or transactions with different money laundering or
+terrorist financing risk characteristics. We adopted the control measures for customer groups with unknown
+identity, expired documents, or high risk of money laundering. We withdrew from the stock customers who
+violate the Bank's customer acceptance policy.
+During the reporting period, self-study of and training in the Code of Conduct for Employees were normalized
+and integrated into the education activities of the Bank's compliance culture construction. We held compliance
+presentations throughout the Bank for all staffs with 0.71 million participants.
+We regard the prevention of corruption in centralized procurement as an important part of supplier anti-corruption,
+and established a high-quality and centralized procurement management system that is fair, clean and efficient. To
+strictly implement national laws, regulations and regulatory and policy requirements on tendering and procurement,
+we formulated the procurement management system such as management measures for centralized procurement and
+the rules for supplier misconduct management in centralized procurement, to ensure that our anti-corruption policies
+cover all centralized procurement projects and participating suppliers.
+We strictly implemented supplier access review. We included suppliers' illegal, untrustworthy and corruption-
+related behaviors into prohibitive conditions for tendering, required suppliers to provide integrity commitments,
+and implemented comprehensive supplier access review relying on authoritative information channels such
+as Credit China and National Enterprise Credit Information Public Display System and internal and external
+supervision and monitoring means. We strengthened the identification of suppliers' affiliations and timely
+screening of affiliated organizations and subsidiaries to prevent the risk of bid-rigging.
+We continuously supervised the integrity operation of suppliers, used big data to monitor the risk of performing
+suppliers, and dealt with suppliers' misconduct involving corruption and violations in accordance with the
+regulations.
+We widely accept the supervision of the whole society. We hired notary publics to supervise the entire tendering
+process, made centralized procurement information public legally, and disclosed the contact information for
+complaints and queries on the Bank's portal and the branch sub sites as well as in procurement documents, and
+received and responded to complaints and reporting in a timely manner.
+Please refer to the "Corporate Governance Report" for information on the Bank's corporate governance. For details of
+the Bank's corporate social responsibility, please refer to the Bank's Social Responsibility Report (Environmental, Social
+and Governance Report) 2021 published separately. For details of the Bank's green finance, please refer to the Bank's
+Green Finance Development Report 2021 published separately.
+98
+| 中国农业银行
+Supplier Anti-corruption
+We promoted the "Golden Spike Huinongtong" project, set up "Huinongtong" service points in rural stores and
+agricultural material stores and deployed electronic machines to provide farmers with convenient basic financial
+services such as inquiries, transfers, consumption and cash withdrawals.
+Anti-money Laundering
+We tightened institutional constraints. To strengthen the supervision of the heads and the leadership team, we
+formulated the implementation opinions and the working guidelines for supervision. The mechanism, requiring
+the leaders to report their duty performance and integrity fulfilment, was improved. The rules and regulations on
+official vehicles, travel expense management, procurement and bidding were revised to manage the power by
+system and regulate the use of power.
+We promoted auto banking and backpack banking in remote areas and towns with no outlets to fill the gaps
+in financial services. In 2021, we provided door-to-door services such as small cash withdrawals, self-service bill
+payments, cash remittances, and collection and payment for more than 0.11 million people in 543 townships,
+effectively opening up the "last mile" of basic financial services.
+Corporate Behavior
+High standards of professional ethics are key to good corporate governance, the Audit and Compliance Committee
+under the Board of Directors paid attention to aspects including employees' conduct management, prevention and
+control of cases of violations and construction of compliance system, and special audits.
+Whistleblower Protection
+We established an employee supervision and reporting mechanism. Employees have the right to report violations
+of laws, disciplines and regulations in a timely manner according to regulations, and also to the higher or
+disciplinary supervision departments or even to the national judicial authorities. Rewards may be given for
+whistleblowers and those who resist violations of laws and regulations.
+We kept the reporting channels smooth for the masses. We established a sound working mechanism for letters
+and visits, and set up a Letter and Visit Office. The masses can report problems through a variety of channels
+such as letters, visits, complaint phones, e-mails, etc.
+We established a whistleblower protection system. Staff members of the Letter and Visit Office who have a
+direct interest in the matters reported or informants, must directly recuse themselves; who are related to the
+informants by blood or relative, or are involved in the matters reported, must recuse themselves.
+We promoted the construction of a culture of integrity. We actively cultivated and practiced the integrity
+concept of "clean, honest and upright", formulated guidelines for strengthening the construction of a culture
+of integrity, and integrated it into our business operation, internal management, customer service and the whole
+process of operation. We organized warning education in various forms, covering 0.75 million attendances,
+through which to popularize the laws, promote the rectification, improve our governance, and urge the leading
+cadres to be clean, self-disciplined and diligent in performing their duties.
+To achieve closed-loop management of reporting matters, the staff members of the Letter and Visit Office shall
+strictly comply with the confidentiality provisions, shall not take out letters without permission, and shall not
+violate the provisions to make the content reported be known to those who should not have known or beyond
+the limited scope of contact.
+We consistently carried out audits on economic responsibilities of leaders, and progressively took forward the audits of
+the heads during their tenure, where the audits focused on the implementation of their responsibility for establishing
+a clean and integrity working environment construction in accordance with the requirements of the Party and integrity
+professional practices in economic activities. Through conducting audits, the regulation of power usage is facilitated
+while the anti-corruption initiatives are promoted.
+|中国农业银行
+AGRICULTURAL BANK OF CHINA
+Information on Environmental, Social and Corporate Governance
+Anti-bribery and Anti-corruption
+We formulated the administrative measures for prevention of cases of violations, incorporating employee's
+professional ethics and daily code of conduct into the management of prevention and control of cases of
+violations to strengthen the constraints, and established a sound governance mechanism of prevention and
+control of cases for our employees involved in corruption, bribery and misappropriation.
+We strengthened our financial anti-corruption efforts, continuously promoted the coordination of audit
+supervision, internal control supervision and due diligence supervision, with a focus on the key minority and
+the major areas while maintaining a high-pressure deterrent posture. We developed a portrait of employee's
+abnormal behaviour, monitored related risks online, and strengthened the inspections on employee violations
+and the supervisions of personnel in key positions.
+Business Ethics and Anti-corruption Supervision
+Strictly in accordance with the national cyber security level protection 2.0 standard, we carried out grading, filing,
+evaluation and rectification works, and passed the national cyber security level protection evaluation in 2021.
+We adopt hierarchical authorization management of the customer information, taking into account the
+fulfillment of legal obligations including anti-money laundering, and standardized the scope, authority and
+procedures for accessing customer information by internal personnel.
+Data Security Certification
+We have a clear division of responsibilities for customer complaint management. The Consumers' Interests
+Protection Working Committee at all levels of the Bank is responsible for planning and deploying customer
+complaint management, studying and considering major issues in the complaint management, and coordinating
+the resolution of major complaint matters, while the Consumers' Interests Protection Office, the Remote Banking
+Center, the Operation Management Department and the business departments cooperate with each other to
+deal with customer complaints.
+We conduct return visits and satisfaction surveys on all customer complaints handling results, based on which we
+feed back the complaints whose return visit results are "unsatisfactory" to the responsible departments, which
+then contact the customers, continue to follow up on the complaints, and make adjustments and corrections to
+such results to improve the quality and efficiency of handling the complaints.
+We also analyse and report all complaints on a regular basis, and take classified measures to reduce them. We
+have established a Bank-wide working mechanism of tracing and rectification of complaints, which enables us to
+timely identify and improve problems and risks lying in products, systems, processes and services and identified
+in the course of handling complaint, and then take targeted rectification and risk control measures, so as to play
+the role of complaint management in driving product optimization and business improvement.
+AGRICULTURAL BANK OF CHINA
+The hotline for customer complaint of the Bank is 95599 and the hotline for credit card complaint is
+400-669-5599.
+We continuously optimized the direct connection between the customer service centre with "E-Shi Tong"
+system and our foundation-level branch outlets and standardized the process, so as to improve the efficiency of
+customer complaint handling. In 2021, the number of complaints received and classified as individual customer
+complaints by all channels across the Bank was 183.7 thousand. Customer complaints mainly involved debit
+cards, credit cards, retail loans and other fields, with a larger number of complaints from branches with a larger
+scale of retail customers and branch outlets, such as Guangdong, Hebei and Shandong branches.
+90
+|中国农业银行
+AGRICULTURAL BANK OF CHINA
+Information on Environmental, Social and Corporate Governance
+We continuously optimized the handling process of credit card complaints and actively introduced the
+mechanism of neutral evaluation for perplexing cases and fast mediation to properly handle customer disputes.
+We made more efforts for the handling and resolution of complaints from foundation-level branch outlets to
+improve their service quality. In 2021, the overall satisfaction for services provided in the foundation-level branch
+outlets of the Bank was 94.86 points, an increase of 0.79 point over the previous year.
+Options for loan changes
+For retail loan customers who were unable to repay their loans on time due to the lockdown, delayed return
+to work, participation in pandemic prevention and control caused by COVID-19, we reasonably delayed the
+repayment time by setting a grace period or otherwise. The customers repaying their loans within the grace
+period were not included in the list of defaulting customers.
+We optimized the procedure for early repayment of personal housing loans by accepting and responding online
+to customers' application for early repayment in a timely manner, so as to facilitate the early loan settlement,
+shorten repayment time and save loan interest for them.
+Customer complaint monitoring
+We have formulated the advertising management system and visual standards, and strictly followed the
+requirements of the Advertising Law of the People's Republic of China and other laws and regulations to
+regulate the production, placement, monitoring and evaluation of advertising materials. All advertisements
+involving the image, services and products of the Bank should be subject to joint review by the brand
+management department, relevant business departments and the consumers' interests protection department.
+Through daily training, review of materials, and notification transmission, we strengthened the education on
+advertising compliance for relevant employees across the Bank.
+Advertising policies and trainings
+We created a new model of overdue loan collection featuring combination of "online + offline + remote"
+means, and set up a professional remote centralized collection team at the head office and coordinated the
+collection of overdue micro-credit loans to farmers, small and micro enterprises and individuals. We established
+rules and systems, improved mechanisms, developed and launched an overdue collection management system to
+realize standardization, normalization and whole process management for overdue loan collection.
+We proceeded with the Five Actions (employee health action, employee growth action, home construction
+action, employee burden reduction action, employee heartwarming action) of caring for employees in
+foundation-level institutions. We formulated and issued the Opinions on Further Promoting Construction of
+Facilities at the Home of Employees in the Foundation-level Institutions, and built 6,306 "five small" facilities
+such as small canteens and small activity rooms to further improve their working and living conditions.
+In strict compliance with national laws and regulations, we paid social insurance and accumulation fund for our
+employees, and established supplementary medical insurance and enterprise annuity. Employees of the bank
+enjoy paid annual leave in accordance with national regulations.
+We cared for the health of employees. We offered health checkup for all employees across the Bank at least
+once a year, incorporated mental health education into the general curriculum of staff training, and opened
+the "Sunshine e-station" psychological counseling column in the ABC E-Learning platform to help employees
+improve their psychological immunity.
+We provided precised support and expressed condolences to employees in difficulties. We helped and offered
+condolences to 23 thousand employees in difficulty in 2021. We promptly allocated special funds for the
+COVID-19 containment and disaster relief, purchased relevant supplies, and gave a helping hand to affected
+employees.
+We carried out a survey on the job satisfaction of the employees at foundation level, and more than 10 thousand
+foundation-level employees participated in the survey, in which the degree of satisfaction was 92%.
+Consumers' Interests Protection
+Supervision and review of products/services
+We launched the function of renewing personal business loans without principal repayment to realize the
+seamless fund turnover and to solve the existing problem in the market of applying for high-cost bridging loans
+to repay the due loans.
+The Risk Management and Consumers' Interests Protection Committee under the Board of Directors of the Bank holds
+a meeting every six months to listen to the report on the implementation of consumers' interests protection work
+(including review of consumers' interests protection).
+•
+We formulated the financial literary advocacy training plan for 2021. We insisted on demand orientation and
+trained targeted key groups such as youth, the elderly, farmers, migrant workers and people with disabilities that
+financial knowledge could be deeply rooted among them.
+We innovated the way of publicity of consumers' interests protection. Through long figures, short videos, micro-
+dramas and other forms that are popular with the public, we released "ABC Miss Customer Service" series and
+"Learn Finance from Maizijun", with more than 130 series of publicity contents and continued to build online
+financial knowledge publicity brands such as "Small Class for Consumers' Interests Protection" and "Ka Ka
+WeChat Class". Through online channels such as WeChat, Weibo, websites, short video platforms, live streaming
+platforms and news media, and in the face-to-face forms such as visit to schools, markets, enterprises, military
+camps and townships. We organized more than 95 thousand publicity activities, with over 22 thousand branch
+outlets participated, nearly 0.58 million publicists attended and around 0.19 billion consumers involved. We
+were awarded the Excellent Organizing Unit of "3.15" Education and Publicity Week by the Consumers' Interests
+Protection Bureau under CBIRC.
+Annual Report 2021 89
+Information on Environmental, Social and Corporate Governance
+We continuously strengthened training on consumers' interests protection. All employees who came into
+contact with customers received trainings on consumers' interests protection every year. We organized more
+than 3,700 training sessions on consumers' interests protection in 2021 in such a way as the training program
+of the training center, induction training for new employees and special lectures, covering personal information
+protection, marketing codes of conduct, and product safety, etc. and about 0.85 million employees participated
+in such trainings.
+Debt collection policies
+The Bank has established a consumers' interests protection review mechanism and formulated system, including the
+Consumers' Interests Protection Review Guidelines of Agricultural Bank of China, according to which we conducted
+review of consumers' interests protection in the design and development, pricing management and agreement
+formulation of products and services, etc., in order to promptly identify and eliminate risks that may harm consumers'
+interests. Such review was incorporated into our annual assessment and evaluation system. We carried out special
+audit for consumers' interests protection, and further increased the audit for the key areas of regulatory concern.
+Publicity and trainings of consumers' interests protection
+Privacy and Data Security
+Entities Responsible for Privacy and Data Security (Including Cyber Security and Information
+Security)
+The Board of Directors and Senior Management of the Bank attach great importance to privacy and data
+security. The Bank's Cyber Security Management Measures specifies that the Chairman of the Board of Directors
+is the person assuming primary responsibility for the Bank's cyber security and the presidents in charge of cyber
+security in institutions of all levels are the persons assuming direct responsibility. The Technology and Product
+Innovation Committee is set up under the Senior Management as a body to consider major matters on IT
+construction and product innovation and the President serving as its chairman.
+|中国农业银行
+AGRICULTURAL BANK OF CHINA
+Information on Environmental, Social and Corporate Governance
+Emergency drills have been regularly organized to continuously improve our emergency response also efficiency
+and comprehensively enhance our ability to ensure business continuity. We continuously strengthened the ability
+to actively discover security vulnerabilities by conducting bank-wide penetration testing, security crowd testing,
+independent penetration testing, and combat attack and defense exercises.
+Privacy and Data Security Staff Training
+Training content
+Training channels
+92
+Scope of training
+Data security
+related issues
+Live-stream
++ on-site
+training
+Live-stream
++ on-site
+training +
+work
+dynamics
+All employees
+Conducted professional competency training for data security
+managers at the Head Office and each branch. Published quarterly
+Data Security Regulation Dynamic Monitoring Briefing to analyze
+cases and introduce data security work dynamics. Held a special
+lecture on the Data Security Law for employees at the Head Office
+and each branch. Specially set up data security courses in trainings
+of several business lines.
+Privacy policy
+The Data Center introduced the ISO27001 international standard in 2010 and carried out the construction
+of ISO27001 information security management system, covering physical security, cyber security of systems,
+personnel security and operational security, and passed the ISO27001 system certification in the same year. It
+also passed the certification of recertification audit of China Cybersecurity Review Technology and Certification
+Center (CCRC) in each following year.
+We have formulated specific handling measures for different scenarios of data privacy leakage. In response
+to employees' inquiries in violation of laws and regulations and improper provision or disclosure in the course
+of business as well as improper usage by third-party cooperative institutions, the Emergency Response Plan
+for Personal Financial Information Security Incident of ABC was formulated to clarify the organization and
+divisions' responsibilities in handling, and standardize the mechanisms and procedures of alert, drill, reporting,
+and handling. It particularly stated that if personal financial information is leaked, damaged or lost and it may
+endanger the personal and property safety of the customer, the customer should be informed in a timely manner.
+For scenarios such as application loopholes being exploited and database being attacked to cause data leakage,
+we continued to enrich and improve our information systems' emergency response plans, clarifying the scope of
+emergency response, coordinating departments, emergency duration and operation procedures in each scenario,
+to make the plans practical, so as to effectively improve our emergency response ability for relevant emergencies.
+We revised the Cyber Security Management Measures to ensure our cyber security and prevent information
+leakage and the occurrence of damage incidents.
+During the reporting period, the Bank's Board of Directors listened to the reports on cyber security. The Senior
+Management reviewed and studied the data security management work and identified the key tasks for 2021.
+Privacy Policy
+The Bank's privacy policy adheres to the following principles: the principle of legality, legitimacy, necessity, and
+integrity, the principle of consistency with rights and responsibilities, the principle of clarity of purpose, the
+principle of informed consent, the principle of data minimization, the principle of ensuring security, the principle
+of subject participation, and the principle of openness and transparency.
+The Bank implements the Privacy Policy (for Individuals) and the Privacy Policy (for Corporates) (published on
+the Bank's official website), which stipulate the rights and obligations of customers and the Bank in collecting,
+processing and protecting information, and specified the rights of customers to access, amend, delete, change
+the scope of authorized, and cancel their information. The Bank handles customers' information strictly in
+accordance with the authorized scope and agreed usage of the customers.
+The Privacy Policy (for Individuals) sets out the core business functions of channels of the Bank such as personal
+online banking, counter, super counter and self-service equipment, and the personal information of customers
+required to be collected for such functions, which is the general privacy clause uniformly used by the Bank and
+is applicable to the Bank's products and services for individual customers. The purpose, manner, scope and
+retention period of the Bank's collection and use of customers' personal information are presented to customers
+through corresponding product (or service) agreements, authorization letters, etc., and the authorization or
+consent of customers are obtained. The above documents, together with the Privacy Policy (for Individuals),
+constitute the entire privacy policy for the Bank's products and services for individual customers.
+Annual Report 2021 91
+Information on Environmental, Social and Corporate Governance
+We formulated the Implementation Rules for Application Security Management to establish and improve the
+management mechanism during the security development lifecycle (SDL) of application systems, and ensure the
+safe and stable operation of application systems.
+The Privacy Policy (for Corporates) sets out the core business functions of channels of the Bank's corporate
+business and the information that the Bank may need to collect from persons related to the corporate customers,
+which is the general privacy clause uniformly used by the Bank and is applicable to the Bank's products and
+services for corporate business. The purpose, manner and scope of the Bank's collection and use of relevant
+persons' personal information are presented to corporate customers and relevant persons through corresponding
+product (or service) agreements, authorization letters, etc., and the authorization or consent of corporate
+customers are obtained. The above documents, together with the Privacy Policy (for Corporates), constitute the
+entire privacy policy for the Bank's products and services for corporate customers.
+.
+We regulate the collection, use, inquiry and retention of customer information through a series of systems and
+measures such as the Management Measures for Customer Information Protection, the Implementation Rules for
+Individual Customer Information Protection and the Implementation Rules for Corporate Customer Information
+Protection. In 2021, we formulated the Guidelines for Strengthening Sensitive Data Protection and the Template
+for Customer Data Security Control Requirements in the Construction and Use of Information Systems to further
+strengthen the protection of customer information.
+We follow the principles of legality, legitimacy and necessity in collecting customer information, specified
+the rules, purposes, manner, scope and procedures of collection, and used customer information strictly in
+accordance with the customers' authorized scope of usage and agreed purposes.
+We implement hierarchical classification management of the customer information and provided hierarchical
+classification protection according to its level of security, especially for the safety of strengthening the security
+management of sensitive customer information.
+Data Security Management
+•
+We formulated the Data Security Management Measures (for Trial Implementation), a special management
+system for data security, which specifies the security protection requirements of data collection, data storage,
+data usage and data sharing and other aspects of the life cycle. The measures are applicable to the Bank's
+domestic institutions at all levels, while they are implemented by our subsidiaries of integrated operation,
+overseas branches and overseas subsidiary banks with reference to the compliance with the laws and regulations
+and the industrial regulatory requirements of the countries (regions) where they situated.
+Customer Information Protection
+Complaint handling
+Information on Environmental, Social and Corporate Governance
+Caring for Employees
+Date of trading
+63,662
+30.0
+30.0
+64,782
+Note: 1.
+Cash dividend (tax inclusive)
+Cash dividend payment ratio¹ (%)
+2018
+No tax is payable in Hong Kong in respect of dividends paid by us according to the current practice of the Hong
+Kong Inland Revenue Department.
+2019
+2020
+In millions of RMB, except for percentages
+The Board of Directors proposed distribution of cash dividends of RMB2.068 (tax inclusive) for each ten shares of
+349,983,033,873 ordinary shares for 2021 with a total amount of approximately RMB72,376 million (tax inclusive).
+The distribution plan will be submitted for approval at the 2021 Annual General Meeting. Once approved, the
+above mentioned dividends will be paid to the holders of A Shares and H Shares, whose names appear on our
+registers of members on 14 July 2022. The register of transfers of H Shares will be closed from 9 July 2022 to
+14 July 2022 (both days inclusive). In order to qualify for the proposed distribution of cash dividends, holders of H
+Shares are required to deposit the transfer documents together with the relevant share certificates at our H Share
+registrar, Computershare Hong Kong Investor Services Limited located at Shops 1712-1716, 17th Floor, Hopewell
+Centre, 183 Queen's Road East, Wan Chai, Hong Kong at or before 4:30 p.m. on 8 July 2022. Dividends of A
+Shares are expected to be paid on 15 July 2022 and dividends of H Shares are expected to be paid before or on
+5 August 2022. A separate announcement will be published if there is any change to the aforesaid dates.
+The table below sets out our cash dividend payment for the preceding three years.
+Upon approval at the 2020 Annual General Meeting, we distributed cash dividend of RMBO.1851 (tax inclusive) per
+shares, with a total amount of RMB64,782 million (tax inclusive), to shareholders of ordinary shares on our registers
+of members at the close of business on 16 June 2021.
+Financial
+Our profit for the year ended 31 December 2021 is set out in "Discussion and Analysis
+Statement Analysis".
+Corporate Governance Report
+Profits and Dividends Distribution
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+The formulation and implementation of our cash dividend policy comply with our Articles of Association and the
+resolutions of the shareholders' general meetings. The relevant decision-making procedure and mechanism are
+complete, and the distribution standards and proportion are clearly stated. Independent Non-executive Directors
+have diligently fulfilled their duties, made their due efforts and expressed their opinions. The minority shareholders
+have opportunities to fully express their opinions and requests, and their legitimate interests have been adequately
+protected.
+We make profit distribution with a focus on providing reasonable return on investments by the investors,
+and maintaining continuity and consistency of the profit distribution policy, as well as having interests of all
+shareholders and our sustainable development. We may make dividends distribution in cash or shares or by a
+combination of both. Our profit distribution prioritizes cash dividend distribution. We may also make interim profit
+distribution when we meet the conditions to do so.
+The Dividends Distribution Policy and Implementation of the Cash Dividend Policy
+Taiping Asset Management Co., Ltd. is deemed to be interested in 1,489,000 H Shares directly held by Taiping
+Fund Management Co., Ltd., which is the controlled entity of Taiping Asset Management Co., Ltd., and such
+number of shares represents approximately 0.0048% of the issued class shares.
+China Taiping Insurance Group Co., Ltd. and its non-wholly owned subsidiary, China Taiping Insurance Holdings
+Company Limited are deemed to be interested in 1,545,179,000 H Shares directly held by Taiping Life Insurance
+Co., Ltd., which is the controlled entity of China Taiping Insurance Group Co., Ltd. and China Taiping Insurance
+Holdings Company Limited.
+BlackRock, Inc. is deemed to be interested in 1,808,525,148 H Shares in aggregate, directly or indirectly held by
+BlackRock Investment Management, LLC and BlackRock Financial Management, Inc., both of which are wholly-
+owned subsidiaries of BlackRock, Inc.
+According to the register of members of the Bank as of 31 December 2021, the MOF held 123,515,185,240 A
+Shares of the Bank, representing 38.69% of the issued A Shares and 35.29% of the total issued shares of the
+Bank.
+According to the respective interest notifications of China Life Insurance (Group) Company and China Life
+Insurance Company Limited, China Life Insurance Company Limited, China Life Insurance (Overseas) Company
+Limited and China Life Property Insurance Company Limited held 1,465,694,000, 71,270,000 and 66,531,000 H
+Shares of the Bank, respectively. As they are controlled entities of China Life Insurance (Group) Company, China
+Life Insurance (Group) Company is deemed to be interested in the 1,603,495,000 H Shares in aggregate directly
+held by them.
+As of 31 December 2021, the Bank received notifications from the above persons regarding their interests or
+short positions in the shares and underlying shares of the Bank. Such interests or short positions were recorded in
+the register required to be kept pursuant to Section 336 of the Securities and Futures Ordinance of Hong Kong.
+9,797,058,826 A Shares are held by the SSF, but the voting rights of these shares were transferred to the MOF
+according to the share subscription agreement dated 21 April 2010 and the Approval on the Proposed Transfer of
+State-owned Shares of the Agricultural Bank of China issued by the MOF on 5 May 2010.
+7.
+60,862
+30.0
+Representing cash dividend (tax inclusive) divided by the net profit attributable to equity holders of the Bank for
+the reporting period.
+Pursuant to the Notice of the State Administration of Taxation on Issues Concerning Individual Income Tax
+Collection and Management after the Repeal of Guo Shui Fa [1993] No. 045 (Guo Shui Han [2011] No. 348),
+individuals who are resident outside the PRC and who hold shares issued in Hong Kong by domestic non-foreign
+invested enterprises enjoy preferential tax rate in accordance with the tax conventions between Chinese mainland
+and the country where the residents reside and the tax arrangements between the Chinese mainland and Hong
+Kong (Macao). Individual shareholders will be generally subject to a withholding tax rate of 10% when domestic
+non-foreign invested enterprises which issue shares in Hong Kong distribute dividends to their shareholders, unless
+otherwise required by the regulations of relevant tax laws and tax conventions.
+Pursuant to the Notice on the Issues Concerning Withholding the Enterprises Income Tax on the Dividends Paid by
+Chinese Resident Enterprises to H Share Holders Who Are Overseas Non-resident Enterprises (Guo Shui Han [2008]
+No. 897) of the State Administration of Taxation, we are obliged to withhold and pay enterprise income tax at the
+rate of 10% from dividends paid or payable for H Shares when distributing dividends to non-resident enterprise
+shareholders of H Shares.
+AGRICULTURAL BANK OF CHINA
+Corporate Governance Report
+The trading date of shares held subject to restrictions on sales
+Number of
+new shares for trading
+Balance of shares
+upon the expiry of the
+Date
+restrictions on sales
+held subject to
+restrictions on sales
+Balance of shares
+held not subject
+to restrictions
+on sales
+Description
+6.
+2 July 2023
+349,983,033,873 Huijin, MOF
+The shareholdings of the shareholders subject to restrictions on sales and
+the terms of restrictions on sales
+Shareholders
+subject to
+No. restrictions on sales
+1
+Huijin
+2
+MOF
+Number of shares
+Unit: Share
+Unit: Share
+held subject to
+restrictions
+on sales
+19,959,672,543
+5.
+4.
+3.
+5.03
+Long position
+0.00
+0.01
+Short position
+2,752,000 (H Shares)
+1,545,179,000 (H Shares) 6
+China Taiping Insurance Interest of controlled entity
+0.52
+5.88
+Long position
+1,808,525,148 (H Shares) 5
+Interest of controlled entity
+0.46
+0.44
+5.25
+0.04
+0.48
+Long position
+146,883,000 (H Shares)
+1,603,495,000 (H Shares) 4
+Interest of controlled entity
+6.72
+7.37
+Long position
+23,520,968,297 (A Shares)
+38.09
+41.76
+Long position
+0.36
+Long position
+| 中国农业银行
+Holdings Company
+China Taiping Insurance
+2.
+1.
+Notes:
+Corporate Governance Report
+106
+Annual Report 2021 105
+0.00
+0.00
+Long position
+1,489,000 (H Shares)
+Management Co., Ltd. Interest of controlled entity
+0.44
+5.02
+Limited
+Long position
+Investment manager
+Taiping Asset
+Co., Ltd.
+0.44
+5.03
+1,545,179,000 (H Shares) 6 Long position
+Beneficial owner
+Taiping Life Insurance
+Group Co., Ltd.
+0.44
+5.03
+1,545,179,000 (H Shares)6 Long position
+Interest of controlled entity
+1,543,690,000 (H Shares)
+According to the Private Placement Subscription Agreements, the A shares subscribed for thereunder by China
+National Tobacco Corporation, Shanghai Haiyan Investment Management Company Limited, Zhongwei Capital
+Holding Company Limited, China National Tobacco Corporation Hubei Province Company and New China Life
+Insurance Company Limited under the private placement shall not be transferred within 36 months from the
+date of completion of the private placement. As of 27 August 2021, the commitments made by these subscribed
+shareholders have been duly fulfilled and the underlying shares held subject to restrictions on sales have become
+tradable in the market. For details, please refer to the relevant announcements published on the websites of the
+Shanghai Stock Exchange (www.sse.com.cn) and the Hong Kong Stock Exchange (www.hkexnews.hk).
+Rounding errors may arise in the "Percentage" column of the table above as the figures are rounded to the
+nearest decimal number.
+"State-owned" in this table refers to the shares held by the MOF and Huijin. "State-owned legal entity" refers
+to the shares held by China National Tobacco Corporation, Shanghai Haiyan Investment Management Company
+Limited, Zhongwei Capital Holding Company Limited and China National Tobacco Corporation Hubei Province
+Company. "Other domestic shares" refer to the shares held by New China Life Insurance Company Limited.
+"Foreign-invested shares listed overseas" refer to the H shares as defined in the No. 5 Standards on the Content
+and Format of Information Disclosure of Companies with Public Offerings - Content and Format of the Report of
+Change in Shareholding (Revision 2022) of the CSRC.
+Information in the table above was based on the share registration recorded in Shanghai Branch of China
+Securities Depository and Clearing Corporation Limited and Computershare Hong Kong Investor Services Limited.
+"Shares held subject to restrictions on sales" refer to the shares held by shareholders who are subject to
+restrictions on sales in accordance with laws, regulations, rules or commitments.
+Issuance
+Number of
+Issuance and Listing of Preference Shares
+Particulars of Preference Shares
+Corporate Governance Report
+Annual Report 2021 107
+Corporate Governance Report
+Shareholding Structure
+Directors, Supervisors and Senior Management
+Operation of Corporate Governance
+Related Party Transactions and Intra-group Transactions
+Incentive & Constraint Mechanism
+Risk Governance
+Internal Control
+Internal Audit
+External Audit
+Communication with Stakeholders
+Other Information on Corporate Governance
+100
+114
+129
+145
+146
+146
+149
+152
+154
+Issuance
+price
+Code
+Abbreviation
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+108
+The coupon rate of "1" in the second dividend period is 5.32% since 5 November 2019; the coupon rate of
+"12" in the second dividend period is 4.84% since 11 March 2020.
+For the terms and details of the issuance of the preference shares above, please refer to the announcements
+published by the Bank on the websites of the Shanghai Stock Exchange, the Hong Kong Stock Exchange and the
+Bank.
+Tier 1 capital
+2.
+Notes: 1.
+the additional
+Replenish
+the additional
+Tier 1 capital
+Replenish
+None 40 billion
+400 million 2015/3/27 400 million
+shares
+shares
+4.84%
+155
+農行優2 2015/3/6 100 per share
+None 40 billion
+400 million 2014/11/28 400 million
+shares
+shares
+5.32%
+1 2014/10/31 100 per share
+360001
+Use of
+proceeds
+Proceeds
+preference
+shares
+Listing approved Transfer raised
+date to be listed deadline (in RMB)
+Number of
+Coupon preference
+rate shares issued
+(in RMB)
+date
+360009
+156
+100
+Corporate Governance Report
+-5,037,783,373
+3. Other domestic shares³
+191,460,957
+0.05
+-191,460,957 -191,460,957
+II. Shares held not subject to
+restrictions on sales
+324,794,117,000
+1. RMB-denominated ordinary shares
+2. Foreign-invested shares listed
+overseas³
+294,055,293,904
+92.80
+84.02
++5,229,244,330 +5,229,244,330 330,023,361,330
++5,229,244,330 +5,229,244,330 299,284,538,234
+94.30
+-5,037,783,373
+85.51
+8.78
+30,738,823,096
+8.78
+349,983,033,873
+100.00
+349,983,033,873
+100.00
+III. Total number of shares
+Notes: 1.
+2.
+3.
+4.
+5.
+30,738,823,096
+0.39
+1.44
+2. State-owned legal entity³
+Shareholding Structure
+Particulars of Ordinary Shares
+Details of Changes in Share Capital
+31 December 2020
+Increase/decrease during
+the reporting period (+, -)ª
+Number of Percentage
+New Shares
+Shares
+(%)
+Issued
+Others
+Sub-total
+5,037,783,373
+Unit: Share
+(%)
+1. Shares held subject to
+restrictions on sales²
+25,188,916,873
+7.20
+-5,229,244,330
+-5,229,244,330
+1. State-owned³
+19,959,672,543
+5.70
+19,959,672,543
+19,959,672,543
+5.70
+5.70
+31 December 2021
+Number of Percentage³
+Shares
+new shares
+Long position
+Interest of controlled entity
+Beneficial owner/nominee²
+Beneficial owner
+Beneficial owner
+legal entity
+None
+1,255,434,700
+0.36
+A Shares
+State-owned
+Central Huijin Asset Management Ltd.
+legal entity
+Management Company Limited
+None
+0.36 1,259,445,843
+A Shares
+entity
+State-owned
+Shanghai Haiyan Investment
+Company Limited
+None
+1,736,273,824
+0.50
++322,582,211
+A Shares
+None
+1,842,751,177
+0.53
+-9
+A Shares
+State-owned
+legal entity
+Overseas legal
+None
+Notes: 1. The shareholdings of holders of H Shares are based on the number of shares as set out in the register of
+members of the Bank maintained by its H Share registrar. The total number of shares held by HKSCC Nominees
+Limited represents the number of H Shares in aggregate held by it as a nominee on behalf of all institutional and
+individual investors registered with it as of 31 December 2021.
+2.
+3.
+4.
+Central Huijin Asset Management Ltd.
+Shanghai Haiyan Investment Management Company Limited
+Hong Kong Securities Clearing Company Limited
+Number of
+005L CT001 Hu
+Traditional General insurance products
+China Life Insurance Company Limited
+China National Tobacco Corporation
+SSF
+HKSCC Nominees Limited
+MOF
+Huijin
+Name of shareholders
+2,328,675,800
+Unit: Share
+subject to
+restrictions
+Number of
+shares held not
+Particulars of shareholdings of the top 10 shareholders not subject to restrictions on sales
+Corporate Governance Report
+AGRICULTURAL BANK OF CHINA
+中国农业银行
+102
+None of the top 10 shareholders were engaged in the business of margin trading and short selling or refinancing,
+among which HKSCC Nominees Limited held the H Shares as a nominee and it was not engaged in the business of
+margin trading and short selling or refinancing.
+Among the above shareholders, save as the transfer of voting rights of 9,797,058,826 A Shares held by the SSF to the
+MOF according to the share subscription agreement dated 21 April 2010 and the Approval on the Proposed Transfer of
+State-owned Shares of the Agricultural Bank of China issued by the MOF on 5 May 2010, the Bank is not aware of the
+existence of the consigned, accepted consignment of, or waived voting rights by other shareholders.
+Among the shareholders listed above, Central Huijin Asset Management Ltd. is a wholly-owned subsidiary of Huijin,
+HKSCC Nominees Limited is a wholly-owned subsidiary of Hong Kong Securities Clearing Company Limited, and China
+National Tobacco Corporation is the de facto controller of Shanghai Haiyan Investment Management Company Limited.
+Save as mentioned above, the Bank is not aware of any connections between the shareholders above, or whether they
+are parties acting in concert. The number of shares held by Huijin and Central Huijin Asset Management Ltd. amounted
+to 141,342,881,051 in aggregate, accounting for 40.39% of the total share capital of the Bank. The number of
+shares held by China National Tobacco Corporation and Shanghai Haiyan Investment Management Company Limited
+amounted to 3,778,337,530 in aggregate, accounting for 1.08% of the total share capital of the Bank.
+Pursuant to the Notice on the Full Implementation of Transferring Part of State-owned Capital to Replenish
+Social Security Funds (Cai Zi [2019] No. 49) jointly issued by the MOF, Ministry of Human Resources and Social
+Security, State-owned Assets Supervision and Administration Commission of the State Council, State Taxation
+Administration, and the CSRC, the MOF transferred 13,723,909,471 shares to the state-owned capital transfer
+account of the SSF on one-off basis. In compliance with the Notice of the State Council on Printing and
+Distributing the Implementation Plan of Transferring Part of State-owned Capital to Replenish Social Security
+Funds (Guo Fa [2017] No. 49), the SSF shall be obligated to observe a lock-up period not less than three years
+from the date on which the shares are credited to the account.
+The number of shares held by Hong Kong Securities Clearing Company Limited represents the A Shares
+(northbound shares of Shanghai-Hong Kong Stock Connect) held by it as a nominee for and on behalf of investors
+from Hong Kong SAR and overseas.
+6.
+5.
+on sales
+0.67
+-393,198,700
+A Shares
+Huijin
+Number of
+shares
+pledged,
+marked or
+locked-up
+Unit: Share
+on sales
+subject to
+restrictions
+Total number
+of shares held
+percentage
+(%)
+reporting
+period (+, -)
+Type of
+shares
+Nature of
+shareholders
+Name of shareholders
+during the Shareholding
+Number of
+shares held
+MOF
+Increase/
+decrease
+Particulars of shareholdings of the top 10 shareholders
+Corporate Governance Report
+Annual Report 2021 101
+494,406 (as set out in the registers of shareholders of A Shares and H Shares),
+including 21,435 holders of H shares and 472,971 holders of A Shares.
+475,649 (as set out in the registers of shareholders of A Shares and H Shares,
+including 21,384 holders of H shares and 454,265 holders of A Shares.
+Total number of shareholders
+(28 February 2022)
+Total number of shareholders
+(31 December 2021)
+Particulars of shareholdings of the top 10 shareholders of the Bank
+equity acquisition
+Five years from the date of
+equity acquisition
+Five years from the date of
+2 July 2023
+2 July 2023
+10,082,342,569
+9,877,329,974
+for trading Restrictions on sales
+(the information below is based on the registers of shareholders as of 31 December 2021)
+Type of shares
+HKSCC Nominees Limited
+China National Tobacco Corporation
+Others
+legal entity
+None
+0.72 2,518,891,687
+None
+6.72 23,520,968,297
+A Shares
+A Shares
+State-owned
+entity
+State-owned
+Unknown
+8.73 30,543,143,003
+-14,605,999
+H Shares
+SSF
+Overseas legal
+None
+40.03 140,087,446,351 10,082,342,569
+35.29 123,515,185,240 9,877,329,974
+A Shares
+State-owned
+A Shares
+State-owned
+Hong Kong Securities Clearing
+Limited
+China Securities Finance Corporation
+―005L - CT001 Hu
+- General insurance products
+- Traditional
+China Life Insurance Company Limited
+None
+130,005,103,782
+A Shares
+113,637,855,266
+73.63%
+53.95%
+63.16%
+57.11%
+64.02%
+40.03%
+34.71%
+34.68%
+Shareholding
+of Huijin
+AGRICULTURAL BANK OF CHINA
+中国农业银行
+104
+2.
+71.56%
+represents A share listed company; represents H share listed company.
+Notes:
+Guotai Junan Investment Management Co., Ltd.
+17.
+China Galaxy Asset Management Co., Ltd.
+16.
+China International Capital Corporation Limited ✰✰
+China Securities Co., Ltd. ★☆
+15.
+14.
+Shenwan Hongyuan Group Co., Ltd. ✰✰
+13.
+China Galaxy Financial Holding Co., Ltd.
+12.
+China Jianyin Investment Limited
+1.
+11.
+31.34%
+69.07%
+China Life Insurance
+(Group) Company
+BlackRock, Inc.
+SSF
+MOF
+40.03
+43.88
+Long position
+140,087,446,351 (A Shares)
+Beneficial owner
+Huijin
+shares (%)
+Percentage of
+total issued
+Percentage of
+issued class
+shares (%)
+Nature
+100.00%
+Interest and
+short positions
+Name
+Unit: Share
+Interests and Short Positions Held by Substantial Shareholders and Other Persons¹
+As of 31 December 2021, the SSF held 23,520,968,297 shares of the Bank, representing 6.72% of the total share
+capital of the Bank.
+The SSF, a public institution managed by the MOF, was founded in August 2000. Its registered address is South
+Tower, Fortune Time Plaza, No. 11 Fenghui Garden, Xicheng District, Beijing and its legal representative is LIU Wei.
+With the approval of the State Council and in accordance with the requirements by the MOF and the Ministry
+of Human Resources and Social Security, the SSF is entrusted to manage the following funds: the national social
+security fund, the central subsidy funds for individual accounts, part of the basic endowment insurance funds for
+enterprise employees, the basic endowment insurance fund and part of the transferred state-owned capital.
+SSF
+Corporate Governance Report
+Apart from the above investees, Central Huijin Asset Management Ltd. is a wholly-owned subsidiary of Huijin.
+Central Huijin Asset Management Ltd. was established and incorporated in Beijing in November 2015 with a
+registered capital of RMB5 billion. It is engaged in asset management business.
+14.54%
+13.30%
+30.76%
+40.11%
+20.05%
+Capacity
+1,255,434,700 (A Shares)
+133,312,244,066 (A Shares)³
+New China Life Insurance Company Limited ✰✰
+China Reinsurance (Group) Corporation
+During the reporting period, the Bank's substantial shareholders and controlling shareholders remained unchanged.
+The Bank had no de facto controller.
+Particulars of Substantial Shareholders
+None of the top 10 shareholders not subject to restrictions on sales were engaged in the business of margin trading
+and short selling or refinancing, among which HKSCC Nominees Limited held the H Shares as a nominee and it was
+not engaged in the business of margin trading and short selling or refinancing.
+The number of shares held by Hong Kong Securities Clearing Company Limited represents the A Shares
+(northbound shares of Shanghai-Hong Kong Stock Connect) held by it as a nominee for and on behalf of investors
+from Hong Kong SAR and overseas.
+China National Tobacco Corporation is the de facto controller of Shanghai Haiyan Investment Management
+Company Limited, Central Huijin Asset Management Ltd. is a wholly-owned subsidiary of Huijin, and HKSCC
+Nominees Limited is a wholly-owned subsidiary of Hong Kong Securities Clearing Company Limited. Save as
+mentioned above, the Bank is not aware of any connections between the shareholders above or between such
+shareholders and the top 10 shareholders, or whether they are parties acting in concert.
+The total number of shares held by HKSCC Nominees Limited represents the number of H Shares held by it in
+aggregate as a nominee on behalf of all institutional and individual investors registered with it as of 31 December
+2021.
+5.
+4.
+3.
+2.
+Notes: 1. The information above is based on the registers of shareholders as of 31 December 2021.
+A Shares
+1,255,434,700
+Except for MOF, Huijin and SSF, there was no other legal entity shareholder who held a shareholding of 5% or
+above in the Bank as of 31 December 2021.
+A Shares
+A Shares
+1,736,273,824
+A Shares
+1,842,751,177
+A Shares
+2,328,675,800
+A Shares
+2,518,891,687
+A Shares
+23,520,968,297
+H Shares
+30,543,143,003
+A Shares
+1,259,445,843
+10.
+MOF
+As of 31 December 2021, the MOF held 123,515,185,240 shares of the Bank, representing 35.29% of the total
+share capital of the Bank.
+9.
+China Export & Credit Insurance Corporation
+8.
+Evergrowing Bank Co., Limited
+7.
+China Everbright Group Ltd.
+6.
+China Construction Bank Corporation ✰✰
+5.
+Bank of China Limited ✰✰
+4.
+Agricultural Bank of China Limited ✩✩
+Industrial and Commercial Bank of China Limited ★☆
+The MOF, established in October 1949, is a ministry under the State Council and is empowered to be responsible
+for macro-economic control and regulation of state finance and taxation policies.
+China Development Bank
+2.
+1.
+No. Name of Institutions
+As of 31 December 2021, the direct shareholdings of Huijin in its investees were as follows:
+Commitments" for more details.
+Huijin issued a non-competition commitment, please see "Significant Events
+During the reporting period, Huijin nominated Mr. LIU Xiaopeng and Mr. XIAO Xiang as Non-executive Directors of
+the Bank.
+As of 31 December 2021, Huijin held 140,087,446,351 shares of the Bank, representing 40.03% of the total share
+capital of the Bank.
+As Huijin is not able to provide its audited financial report for 2021 until the completion of the audits of
+the financial statements of its investees, the following financial data are the audited data for 2020. As of
+31 December 2020, the total assets of Huijin amounted to RMB5.8174097797 trillion, the total liabilities were
+RMB539.7317396 billion and the owners' equity was RMB5.2776780401 trillion in total. The net profit for 2020
+was RMB503.2336237 billion. The net cash inflow from operating activities, investing activities and financing
+activities for 2020 amounted to RMB57.5930056 billion.
+Huijin was established on 16 December 2003 as a wholly state-owned company through state investment in
+accordance with the Company Law of the PRC with a registered capital of RMB828,209 million. The registered
+address of Huijin is New Poly Plaza, 1 Chaoyangmen Beidajie, Dongcheng District, Beijing. The unified social credit
+code of Huijin is 911000007109329615 and its legal representative is Mr. PENG Chun. The State Council has
+authorized Huijin to make equity investments in major state-owned financial institutions to preserve and increase
+the value of these state-owned financial assets. Huijin can exercise rights and assume obligations on major state-
+owned financial institutions as an investor on behalf of the state to the extent of its capital contribution. Huijin does
+not engage in other commercial activities nor intervene in the normal operations of major state-owned financial
+institutions which are controlled by Huijin.
+Huijin
+Corporate Governance Report
+Annual Report 2021 103
+3.
+China Securities Finance Corporation Limited
+Shareholders are recommended to consult their tax advisers regarding the tax implication in Chinese mainland,
+Hong Kong SAR and other tax implications arising from their holding and disposal of H Shares of the Bank.
+-
+China Merchants Fund
+Others
+Domestic preference
+49,000,000
+12.25 None
+Management Co., Ltd.
+shares
+Ping An Life Insurance
+Others
+Domestic preference
+30,000,000
+7.50 None
+Company of China, Ltd.
+Annual Report 2021 111
+shares
+Co., Ltd.
+PICC Life Insurance
+16.75 None
+Domestic preference
+shares
+period³
+Number of
+preference
+Shareholding
+Number of
+preference
+shares
+subject
+percentage4
+to pledge
+Name of shareholders¹
+shareholders² Type of shares
+(+, -)
+shares held
+(%)
+or lock-up
+Bank of Communications
+Others
+Schroder Fund Management
+67,000,000
+Others
+Domestic preference
+30,000,000
+Others
+Domestic preference
++20,000,000
+20,000,000
+5.00 None
+Management Co., Ltd.
+shares
+CITIC Securities Company
+Others
+Domestic preference
++11,120,000
+18,000,000
+4.50 None
+Limited
+shares
+Xin Yuan Asset
+shares
+Management Co., Ltd.
+6.28 None
+7.50 None
+Company Limited
+shares
+CITIC-Prudential Life Insurance
+Others
+Domestic preference
++29,760,000
+Nature of
+29,760,000
+Company Limited
+shares
+Sun Life Everbright Asset
+Others
+Domestic preference
++25,110,000
+25,110,000
+7.44 None
+Shanghai Everbright Securities
+Increase/
+decrease
+during the
+reporting
+Particulars of Shareholding of the Top 10 Holders of Preference Shares "1" (360001) Unit: Share
+Male
+Executive Director, Executive Vice President
+ZHANG Xuguang
+2020.01-2023.01
+56
+Male
+Vice Chairman of the Board of Directors,
+Executive Director, President
+ZHANG Qingsong
+2021.01-2024.01
+54
+Male
+Chairman of the Board of Directors,
+Executive Director
+Incumbent Directors
+GU Shu
+Tenure
+Age
+57
+Gender
+2020.10-2023.10
+Executive Director, Executive Vice President
+55
+Male
+Non-executive Director
+XIAO Xiang
+LIU Xiaopeng
+ZHOU Ji
+LI Wei
+2017.08-2023.06
+58
+Male
+Non-executive Director
+LIAO Luming
+2021.06-2024.06
+53
+Male
+LIN Li
+Position
+Name
+Basic Information
+|中国农业银行
+112
+When the Bank fails to pay dividends on preference shares for a total of three financial years or for two consecutive
+financial years, holders of preference shares shall have the right to attend the shareholders' general meetings and
+vote with holders of ordinary shares jointly, starting from the day following the date on which the shareholders'
+general meeting resolves to not distribute dividends on preference shares as agreed in the profit distribution plan of
+that year. The voting rights shall be restored until the date on which all dividends for such preference shares of that
+year are distributed.
+Upon the occurrence of any of the circumstances above, holders of preference shares shall have the right to attend
+shareholders' general meetings and the Bank shall provide online voting. The notice of such meetings shall be
+delivered to holders of preference shares following notice procedures for holders of ordinary shares set forth in the
+Articles of Association.
+The holders of preference shares are entitled to voting rights in the event of the circumstances outlined below happen
+to the Bank: (1) any amendments to the provisions regarding preference shares in the Articles of Association; (2) any
+decrease or series of decreases representing in aggregate more than 10% of the registered capital of the Bank; (3) any
+merger, division, dissolution or change in corporate form of the Bank; (4) any issuance of preference shares by the Bank;
+(5) any other circumstances specified by laws, administrative regulations and the Articles of Association of the Bank.
+Special Regulations of Holders of Preference Shares
+Shareholders who individually or jointly hold more than 3% of the total voting shares of the Bank (the "Proposing
+Shareholders") may submit proposals. Proposing Shareholders shall submit provisional proposals to the Board of
+Directors in writing 10 days prior to the date of shareholders' general meetings. The Office of the Board of Directors is
+responsible for organizing shareholders' general meetings, preparing documents, and taking minutes of the meetings.
+Proposals to the Shareholders' General Meetings
+Shareholders may deliver enquiries to the Board of Directors and have the right to obtain the relevant information
+pursuant to the Articles of Association. Shareholders may consult copies of minutes of the shareholders' general
+meetings free of charge during the business hours of the Bank. If any shareholder requests to obtain from the
+Bank a copy of the relevant minutes of the shareholders' general meetings, the Bank shall send such copy within
+seven days after the receipt of the reasonable fees. Shareholders who request to consult or obtain the relevant
+information shall provide us with written documents evidencing the class and number of shares held by them, and
+we shall provide such information so requested upon verification of such shareholders' identities. The Office of
+the Board of Directors is responsible for aiding the Board of Directors in its daily affairs. If shareholders have any
+enquiries, please contact the Office of the Board of Directors.
+Enquiries
+We protect shareholders' rights strictly in compliance with the regulatory requirements and related corporate
+governance rules. Shareholders who individually or jointly hold more than 10% of the total voting shares of the
+Bank (the "Requesting Shareholders") may request the Board of Directors to convene an extraordinary general
+meeting, and submit proposals to the Board of Directors in writing. If the Board of Directors refuses to convene
+an extraordinary general meeting or fails to give its responses within 10 days upon receipt of the proposal, the
+Requesting Shareholders may request the Board of Supervisors to convene an extraordinary general meeting and
+propose to the Board of Supervisors in writing. If the Board of Supervisors fails to give the notice of such extraordinary
+general meeting within the prescribed period, which shall be deemed to have failed to convene and preside over such
+meeting, shareholders who individually or jointly hold 10% or more of the total voting shares of the Bank for not less
+than 90 consecutive days shall be entitled to convene and preside over an extraordinary general meeting.
+Convening of Extraordinary General Meetings
+Shareholders' Rights
+Corporate Governance Report
+Corporate Governance Report
+AGRICULTURAL BANK OF CHINA
+Corporate Governance Report
+Protection of Minority Shareholders' Interests
+The Implementation of One-share-one-vote
+Directors, Supervisors and Senior Management
+Corporate Governance Report
+114
+Annual Report 2021 113
+In 2021, Independent Non-executive Directors of the Bank provided objective, fair and independent opinions on
+the proposals including the profit distribution plan for 2020, the 2020 remuneration of the Directors, the 2020
+remuneration of the senior management members and nomination of candidates for Directors. Independent
+Non-executive Directors of the Bank were of the view that the content of these proposals and the consideration
+procedures were in compliance with the requirements of the relevant laws, regulations and the Articles of
+Association of the Bank, and there was no circumstance that would jeopardize the interests of the Bank and all
+shareholders, especially the interests of minority shareholders.
+Article 151 of the Articles of Association provides that Independent Non-executive Directors shall provide
+objective, fair and independent opinions on the matters related to the protection of minority shareholders'
+interests, such as material related party transactions, profit distribution plans and modification of profit distribution
+policy, nomination or appointment and removal of directors, appointment or removal of senior management,
+remuneration of directors and senior management, and appointment of external auditors.
+Role of Independent Non-executive Directors
+As of the end of the reporting period, the Bank had a total of 29 holders' of preference shares "#í¬£1″.
+As of 28 February 2022 (being the last day of the month preceding the month in which the Bank's A Share annual
+report is published), the Bank had a total of 29 holders of preference shares “Rí₹1”.
+For details of dividends distribution on ordinary shares, please refer to "Corporate Governance Report
+Shareholding Structure Particulars of Ordinary Shares". For details of dividends distribution on preference shares,
+please refer to "Corporate Governance Report Shareholding Structure Particulars of Preference Shares".
+For the Bank's information disclosure and investor relations management, please refer to "Corporate Governance
+Report Communication with Stakeholders - Communication with Shareholders".
+During the reporting period, when the shareholders' general meeting of the Bank considered material issues such as the
+election of Executive Directors, the profit distribution plan for 2020, the appointment of an accounting firm for 2021,
+and the remuneration plan for Directors for 2020, the votes of A share shareholders holding less than 5% of the Bank's
+voting shares were counted separately and the results of the count were publicly disclosed in a timely manner.
+Pursuant to the Articles of Association of the Bank, when the shareholders' general meeting considers material
+issues affecting the interests of minority investors, votes of minority investors shall be counted separately. The
+results of the separate vote count shall be publicly disclosed in a timely manner.
+According to the requirements of the relevant laws, regulations and the Articles of Association, minority
+shareholders have the right to obtain relevant information of the Bank, including: status of the share capital of
+the Bank, minutes of the shareholders' general meetings; the published financial and accounting reports, interim
+reports and annual reports of the Bank, and etc.
+Shareholders' general meetings of the Bank are held in the form of on-site meetings. Minority shareholders have
+the right to attend or appoint a proxy to attend the shareholders' general meetings of the Bank, and to exercise
+voting rights based on the number of shares held by them by way of on-site voting or online voting.
+Communication Channel
+The Bank strictly implemented the one-share-one-vote among shareholders. The shares of the Bank shall be issued
+following the principles of fairness and justice, and each share in the same class has the same rights. For the same
+class of shares issued at the same time, each share shall be issued on the same conditions and at the same price. All
+entities or individuals subscribing for the shares shall pay the same price for each share. A shareholder shall enjoy
+rights and assume obligations according to the class and amount of shares held. Shareholders who hold shares
+of the same class shall have the same rights, including (1) to receive dividends and other kinds of distribution of
+interests based on the number of shares held by them; (2) to attend or appoint a proxy to attend the shareholders'
+general meetings, and to exercise voting rights based on the number of shares held by them, and etc.
+Returns to Shareholders
+Others
+Asset Management Co., Ltd.
+China Merchants Securities
+15,700,000
+3.93 None
++15,405,000
+15,405,000
+3.85 None
+Notes: 1.
+2.
+3.
+4.
+5.
+China National Tobacco Corporation Jiangsu Province Company, China National Tobacco Corporation Yunnan
+Province Company and Shanghai Tobacco Group Co., Ltd. are the wholly-owned subsidiaries of China National
+Tobacco Corporation. China National Tobacco Corporation is the de facto controller of Shanghai Haiyan Investment
+Management Company Limited. "China Life Insurance Company Limited - Traditional - General insurance product ·
+005L-CT001 Hu" is under the management of China Life Insurance Company Limited. Save as mentioned above, the
+Bank is not aware of any connections between the above holders of preference shares, and between the above holders
+of preference shares and the top 10 shareholders of ordinary shares, or whether they are parties acting in concert.
+As stipulated in the Standards on the Content and Format of Information Disclosure of Companies with Public Offerings
+No. 2-Content and Format of the Annual Report (Revision 2021), "Particulars of holders of preference shares should
+indicate the entities which hold shares on behalf of the states and foreign holders". Except for the entities which hold
+shares on behalf of the states and foreign holders, the nature of other holders of preference shares is categorized as
+"others".
+"Increase/decrease during the reporting period" refers to the change of shareholding due to secondary market
+transactions.
+"Shareholding percentage" refers to the percentage of "12" held by the holders of preference shares to the
+total number of "12" (i.e. 400 million shares).
+The preference shares "12" of the Bank are shares not subject to restrictions on sale, and the top 10 holders
+of preference shares "12" who are not subject to restrictions on sales are the same as the top 10 holders of
+preference shares.
+|中国农业银行
+Domestic preference
+shares
+Domestic preference
+shares
+AGRICULTURAL BANK OF CHINA
+Others
+shares
+Company
+Bank of Communications Schroder
+Others
+Domestic preference
+20,000,000
+5.00
+None
+Fund Management Co., Ltd.
+shares
+China Zheshang Bank Co., Ltd.
+Others
+Domestic preference
+-6,000,000
+19,000,000
+4.75 None
+Shanghai Tobacco Group Co., Ltd.
+Xin Yuan Asset Management Co., Ltd. Others
+Corporate Governance Report
+Dividends Distribution of Preference Shares
+Dividends of our preference shares are paid in cash annually. When we resolve to cancel part or all of the dividends
+to holders of preference shares, such undistributed dividends of current period shall not be accumulated to
+subsequent dividend periods. The holders of our preference shares, upon receiving dividends at the agreed rate,
+shall not participate in the distribution of the remaining profit attributable to the holders of ordinary shares.
+RMB2.128 billion
+4.84%
+RMB4.84
+RMB1.936 billion
+For details of the distribution of dividends above, please refer to the announcements published by the Bank on the
+websites of the Shanghai Stock Exchange and the Bank.
+Redemption or Conversion of Preference Shares
+During the reporting period, there was no redemption or conversion of the preference shares issued by the Bank.
+Restoration of Voting Rights of Preference Shares
+During the reporting period, there was no restoration of voting rights of the preference shares issued by the Bank.
+Accounting Policies of Preference Shares
+In accordance with the Accounting Standards for Enterprises No. 22 — Recognition and Measurement of Financial
+Instruments, the Accounting Standards for Enterprises No. 37 — Presentation of Financial Instruments issued by the
+MOF, as well as International Financial Reporting Standard 9 - Financial Instruments and International Accounting
+Standard 32 Financial Instruments: Presentation issued by the International Accounting Standards Board, we
+are of the view that the terms of preference shares "1" and "2" meet the definition of equity
+instruments.
+―
+Details of Issuance and Listing of Securities
+Issue of Securities
+For issuance of other securities of the Bank during the reporting period, please refer to "Note IV. 30 Debt Securities
+Issued to the Consolidated Financial Statements" for details.
+RMB5.32
+5.32%
+RMB1.936 billion
+RMB4.84
+Stock name
+Issuance date
+Registration date
+Distribution
+method
+Coupon rate
+Dividend per share
+(tax included)
+Total dividend
+shares
+(tax included)
+11 March 2021
+10 March 2021
+5 November 2021
+11 March 2022
+4 November 2021
+10 March 2022
+Cash dividend
+Cash dividend
+Cash dividend
+4.84%
+農行優2 (360009)
+農行優1 (360001)
+農行優2 (360009)
+Corporation Jiangsu Province
+None
+5.00
+110
+Corporate Governance Report
+Particulars of Shareholding of the Top 10 Holders of Preference Shares "2" (360009) Unit: Share
+As of the end of the reporting period, the Bank had a total of 37 holders of preference shares "ÍƑŒŒ2".
+As of 28 February 2022 (being the last day of the month preceding the month in which the Bank's A Share annual
+report is published), the Bank had a total of 37 holders of preference shares "12".
+Name of shareholders¹
+Increase/
+decrease
+during the
+reporting
+Nature of
+period³
+Number of
+preference
+Shareholding
+Number of
+preference
+shares
+subject
+percentage
+to pledge
+shareholders² Type of shares
+(+, -)
+Annual Report 2021 109
+The number of holders of preference shares was calculated by the number of qualified investors that hold the preference
+shares. When calculating the number of qualified investors, an asset management institution that purchases or transfers the
+preference shares through two or more products under its control will be counted as one.
+1
+The preference shares "11" of the Bank are shares not subject to restrictions on sale, and the top 10 holders
+of preference shares "11" who are not subject to restrictions on sales are the same as the top 10 holders of
+preference shares.
+Others
+Asset Management Co., Ltd.
+Domestic preference
+shares
+Domestic preference
+shares
++10,550,840
+16,000,000
+4.00 None
+13,600,000
+shares held
+3.40 None
+2.
+3.
+4.
+5.
+According to the No. 2 Standards on the Content and Format of Information Disclosure of Companies with Public
+Offerings ― Content and Format of the Annual Report (Revision 2021), "Particulars of holders of preference
+shares should indicate the entities which hold shares on behalf of the states and foreign holders". Except for the
+entities which hold shares on behalf of the states and foreign holders, the nature of other holders of preference
+shares is categorized as "others".
+"Increase/decrease during the reporting period" refers to the change of shareholding due to secondary market
+transactions.
+"Shareholding percentage" refers to the percentage of "11" held by the holders of preference shares to the
+total number of "11" (i.e. 400 million shares).
+Notes: 1. China Merchants Fund Management Co., Ltd. and China Merchants Securities Asset Management Co., Ltd. are
+acting in concert. Save as mentioned above, the Bank is not aware of any other connections between the above
+holders of preference shares, and between the above holders of preference shares and the top 10 holders of
+ordinary shares, or whether they are parties acting in concert.
+2019.05-2022.05
+(%)
+China National Tobacco Corporation Others
+5.00 None
+Group Co., Ltd.
+shares
+China National Tobacco
+Others
+Domestic preference
+20,000,000
+5.00 None
+Corporation Yunnan Province
+shares
+Company
+China National Tobacco
+Others
+Domestic preference
+20,000,000
+20,000,000
+Domestic preference
+Others
+China Mobile Communications
+China Life Insurance Company Limited Others
+Domestic preference
+shares
+50,000,000
+12.50
+None
+Domestic preference
+50,000,000
+or lock-up
+12.50 None
+Bank of China Limited,
+Others
+Domestic preference
+20,000,000
+5.00 None
+Shanghai Branch
+shares
+shares
+Employee Shares
+The Bank had no employee shares.
+Male
+Ms. ZHOU Ji received a master's degree in National Economic Planning and Management
+from Department of National Economic Management of Renmin University of China, and
+is an economist. Ms. ZHOU currently works with Central Huijin Investment Ltd. Ms. ZHOU
+has served as a Non-executive Director of the Bank since March 2021. She previously
+worked as a deputy director of Balance of Payments Division and a deputy director
+of Analysis and Forecast Division of Balance of Payments Department of the State
+Administration of Foreign Exchange (the "SAFE"); a director of Balance of Payments
+Statistics Division of Balance of Payments Department of the SAFE; a deputy director of
+Balance of Payments Department and a deputy director of Capital Account Management
+Department of the SAFE.
+ZHOU Ji Non-executive Director
+Corporate Governance Report
+Mr. Ll Wei graduated from Zhejiang University of Finance and Economics with a
+bachelor's degree in finance and is a senior accountant. Mr. LI currently works with
+Central Huijin Investment Ltd., and has served as a Non-executive Director of the Bank
+since May 2019. Mr. LI previously served as a deputy director clerk, a director clerk and a
+deputy director of the Budget Office of Ningbo Finance and Taxation Bureau, as well as a
+deputy director, a director, an assistant commissioner and a deputy supervisor of the First
+Division of the Office of the Ministry of Finance in Ningbo.
+LI Wei Non-executive Director
+Mr. LIAO Luming received a doctor's degree in public finance from the Public Finance
+Science Institute of the MOF. He currently works with Central Huijin Investment Ltd.
+Mr. LIAO has served as a Non-executive Director of the Bank since August 2017. He
+started working at the MOF in August 1985 and served successively as a director clerk
+of the Research Division, a deputy director and a director of the Information Division,
+and a director of the News Division at the General Office of MOF. He was appointed as
+a deputy director of the General Office of MOF in January 2003, a bureau level cadre of
+the Party Committee of MOF in January 2012 and an executive vice secretary (bureau
+level) of the Party Committee of MOF in February 2012.
+LIAO Luming Non-executive Director
+Mr. LIN Li holds a doctor's degree in Economics from Southwestern University of Finance
+and Economics and is a senior economist. Mr. LIN was appointed as an Executive Vice
+President of the Bank in March 2021 and has served as an Executive Director and an
+Executive Vice President of the Bank since June 2021. Mr. LIN successively worked
+in China Raw Materials Investment Corporation and China Development Bank. He
+previously served as a deputy director and director of general office, a director and
+secretary to the board of directors of China Everbright Group Corporation (concurrently
+serving as chief of the Reform and Development Steering Group Office of China
+Everbright Group Corporation, chief of the Office of Executive Directors of China
+Everbright Holdings Company Limited (in Hong Kong), a director of Sun Life Everbright
+Life Insurance Co., Ltd. and chairman of the board of supervisors of China Everbright
+Investment Management Co., Ltd.), and the executive vice president and senior executive
+vice president of China Everbright Bank (concurrently serving as a director of China
+UnionPay). Mr. LIN was appointed as the vice president of Agricultural Development
+Bank of China in January 2014, and was appointed as an executive director and the vice
+president of Agricultural Development Bank of China in February 2018. He concurrently
+serves as a Director of China Internet Investment Fund.
+LIN Li Executive Director, Executive Vice President
+AGRICULTURAL BANK OF CHINA
+|中国农业银行
+Corporate Governance Report
+116
+Annual Report 2021 115
+Mr. ZHANG Xuguang received a master's degree in law from Peking University and a
+master's degree in law from Minnesota State University in the United States, and is
+a senior economist. He was appointed as an Executive Vice President of the Bank in
+December 2019 and has served as an Executive Director and an Executive Vice President
+since October 2020. Mr. ZHANG previously worked with China National Aero-Technology
+Import & Export Corporation. In addition, Mr. ZHANG previously served as the executive
+vice president of Tianjin branch and the deputy general director of the Executive
+Office, and the president of the Guangxi Zhuang Autonomous Region branch of China
+Development Bank. Mr. ZHANG also served as the president of China Development
+Bank Capital Co., Ltd. and the investment director of China Development Bank. In
+December 2013, he was appointed as an executive vice president of China Development
+Bank. Mr. ZHANG concurrently serves as the vice president of Research Association of
+Ideological and Political Work of China Financial Institutions.
+ZHANG Xuguang Executive Director, Executive Vice President
+Mr. ZHANG Qingsong received a master's degree majoring in economics from the
+Graduate School of the People's Bank of China and is an associate researcher.
+Mr. ZHANG was appointed as the President of the Bank in November 2019 and has
+served as the Vice Chairman of the Board of Directors, Executive Director and President
+since January 2020. Mr. ZHANG successively served in several positions in Bank of China,
+including the deputy general manager of the Asset-Liability Management Department,
+deputy general manager of the Treasury, director of the Global Markets Department,
+director of the Global Markets Unit, general manager of the Global Markets Unit, general
+manager of the Hong Kong Trading Center (Hong Kong Branch), general manager of
+Singapore Branch and general manager of the Clearing Department of the head office.
+Mr. ZHANG was appointed as the executive vice president of Bank of China in November
+2016, an executive director and the vice president of Bank of China in August 2018, and
+the vice chairman and president of The Export-Import Bank of China in December 2018.
+He concurrently serves as the chairman of China Institute of Rural Finance and the vice
+president of China Society for Finance and Banking.
+ZHANG Qingsong Vice Chairman of the Board of Directors, Executive
+Director, President
+Mr. GU Shu holds a doctor's degree in economics from Shanghai University of Finance
+and Economics and is a senior accountant. He was appointed as the Executive Director
+of the Bank in January 2021 and has served as the Chairman of the Board of Directors
+and an Executive Director of the Bank since February 2021. Mr. GU previously served as
+the deputy general manager of the Accounting and Settlement Department, the deputy
+general manager of the Planning and Finance Department, the general manager of
+the Finance and Accounting Department, the board secretary and concurrently general
+manager of the Corporate Strategy and Investor Relations Department, and president of
+Shandong Branch of Industrial and Commercial Bank of China. Mr. GU was appointed
+as the executive vice president and the president of Industrial and Commercial Bank of
+China in October 2013 and October 2016, respectively. Mr. GU was appointed as the
+vice chairman of the board, an executive director and the president of Industrial and
+Commercial Bank of China in December 2016. He concurrently serves as the president of
+the National Association of Financial Market Institutional Investors.
+GU Shu Chairman of the Board of Directors, Executive Director
+Biography of Directors, Supervisors and Senior Management
+Biography of Directors
+LIU Xiaopeng Non-executive Director
+Mr. LIU Xiaopeng holds a doctor's degree in world economics from Nankai University,
+and is a senior economist. He currently works with Central Huijin Investment Ltd., and
+has served as a Non-executive Director of the Bank since January 2022. He previously
+worked as a deputy director of Financial Asset Management Department of State Grid
+Corporation of China, the general manager of Investment Management Department,
+and concurrently served as an assistant to the general manager of the company and
+the general manager of Development Planning Department of State Grid Yingda
+International Holdings Co., Ltd., a vice general manager and the secretary to the board
+of directors of China Power Finance Co., Ltd., a deputy director-general of the Global
+Energy Interconnection Office of State Grid Corporation of China and the Global Energy
+Interconnection Development and Cooperation Organisation, an executive director and
+the chief executive officer of Gome Finance Technology Co., Ltd., and the chief strategic
+operating officer of Gome Holding Group Co., Ltd.. He concurrently serves as a non-
+executive director of China Reinsurance (Group) Corporation and a visiting professor of
+Nankai University.
+XIAO Xiang Non-executive Director
+Mr. XIAO Xiang is a postgraduate from Sichuan Institute of Business Administration
+specialising in business administration. He currently works with Central Huijin Investment
+Ltd., and has served as a Non-executive Director of the Bank since January 2022. He
+previously served as a deputy director of the Office, a deputy director of the Business
+Division I (person-in-charge) and an assistant commissioner of the Office of the Finance
+Discipline Inspection Commissioners of the Ministry of Finance in Sichuan. He served as
+a deputy inspection commissioner of the Office of the Ministry of Finance in Fujian, an
+inspection commissioner of the Office of the Finance Discipline Inspection Commissioners
+of the Ministry of Finance in Hunan and a director general of Hunan Regulatory Bureau
+of the Ministry of Finance.
+Executive Vice President
+Male
+51
+2021.11-
+LI Zhicheng
+Chief Risk Officer
+Male
+59
+2017.02-
+HAN Guoqiang
+Corporate Governance Report
+Secretary to the Board of Directors
+AGRICULTURAL BANK OF CHINA
+|中国农业银行
+118
+Mr. HUANG Zhenzhong holds a doctor's degree in law. Mr. HUANG is currently a
+professor and a supervisor for Ph.D. candidates of the School of Law in Beijing Normal
+University, and a deputy director of Chinese Entrepreneurs Crime Prevention Research
+Center. He has served as an Independent Non-executive Director of the Bank since
+September 2017. He previously served as a vice director and a senior economist of the
+Enterprise Reform Division at the Asset Management Department of Sinopec Group,
+a deputy head of School of Law and a director of the Legal Counsel Office in School
+of Law of Beijing Normal University, and a deputy chief prosecutor, a member of the
+Committee of Inspection of the Procuratorate of Tibet Autonomous Region and an
+independent director of Ciwen Media Co., Ltd., Yunnan Jinggu Forestry Co., Ltd., Beijing
+Leadman Biochemistry Co., Ltd., Sinopec Oilfield Equipment Corporation and CECEP
+Solar Energy Technology Co., Ltd. He is currently an executive director of the Energy Law
+Research Committee of China Law Society, an arbitrator of China International Economic
+and Trade Arbitration Commission, a panel mediator with the Mediation Center of China
+Chamber of International Commerce, an arbitrator of Tianjin Arbitration Commission,
+an arbitrator of Hainan Arbitration Commission, a lifetime honorary director of Beijing
+Jingshi Law Firm, a member of the Chartered Institute of Arbitrators, and an independent
+director of Beijing Qilin Hesheng Network Technology Co., Ltd. and UTour Group Co., Ltd.
+HUANG Zhenzhong Independent Non-executive Director
+Mr. WANG Xinxin holds a master's degree in law and is currently a teacher in the
+Economic Law Teaching and Research Office of the School of Law, and a professor
+and supervisor for Ph.D. candidates of Renmin University of China. He has served as
+an Independent Non-executive Director of the Bank since May 2016. He previously
+worked in NPC Financial and Economic Committee as a member of the Drafting Group
+for Enterprise Bankruptcy Law. He is currently a member of the Drafting and Amending
+Group for Enterprise Bankruptcy Law in NPC Financial and Economic Committee, the
+director of Bankruptcy Law Research Center of Renmin University of China, the honorary
+president of Beijing Bankruptcy Law Society, the honorary president of Bankruptcy
+Law Research Institute of Shandong Law Society, Guangdong Law Society, Shanxi Law
+Society, Hunan Law Society and Yunnan Law Society, a consultant for the Bankruptcy
+Law Research Institute of the Shanghai Law Society, Henan Law Society and Sichuan
+Law Society, an executive member of Economic Law Research Institute of the China Law
+Society; a consultant in the Drafting Group for Judicial Interpretations of Bankruptcy
+Law, one of the first chief researchers of Judicial Case Research Institute of the Supreme
+People's Court; and since 2015, an expert advisor to PRC delegation in the United
+Nations Commission on International Trade Law Working Group V (Insolvency Law); an
+independent non-executive director of each of Unisplendour Corporation Limited, Hainan
+Jingliang Holdings Co., Ltd. and Jiangsu Cnano Technology Co., Ltd.
+WANG Xinxin Independent Non-executive Director
+皇
+Corporate Governance Report
+Annual Report 2021 117
+Male
+Please refer to "Changes in Directors, Supervisors and Senior Management" in this section for information relating
+to the changes in the Directors, Supervisors and Senior Management of the Bank.
+Mr. GU Shu has served as the Chairman of the Bank's Board of Directors since February 2021. His term of office
+as a Director is set out in the table above.
+AGRICULTURAL BANK OF CHINA
+WU Jiangtao
+2018.06-2021.12
+58
+Male
+Former Non-executive Director
+XIA Taili
+LI Qiyun
+2020.06-2021.09
+56
+Male
+Former Non-executive Director
+Former Non-executive Director
+2015.03-2021.11
+51
+Female
+Former Independent Non-executive Director
+XIAO Xing
+2016.07-2021.01
+64
+Male
+Former Chairman of the Board of Directors,
+Executive Director
+ZHOU Mubing
+ZHU Hailin
+ZHANG Yi
+Male
+2019.07-2021.07
+|中国农业银行
+2.
+Notes: 1.
+ZHAN Dongsheng
+2019.04-2021.06
+56
+55
+Former Executive Vice President
+2018.11-2021.11
+57
+50
+Male
+ZHANG Jie
+2015.06-2021.11
+58
+Male
+Former External Supervisor
+LI Wang
+2018.08-2021.08
+59
+Male
+Former Supervisor Representing Employees
+Former External Supervisor
+2020.10-
+56
+Male
+2019.07-2022.07
+Margaret
+LIU Shouying
+WU Liansheng
+Independent Non-executive Director
+Independent Non-executive Director
+Male
+57
+2019.07-2022.07
+Male
+51
+69
+2021.11-2024.11
+WANG Jingdong
+Chairman of the Board of Supervisors,
+Male
+59
+2018.11-2024.11
+FAN Jianqiang
+Supervisor Representing Shareholders
+Supervisor Representing Shareholders
+Male
+57
+2020.11-2023.11
+Incumbent Supervisors
+SHAO Lihong
+WU Gang
+HUANG Tao
+Female
+LEUNG KO May Yee,
+Non-executive Director
+Female
+49
+2021.03-2024.03
+Non-executive Director
+Male
+46
+2022.01-2025.01
+Non-executive Director
+Male
+Independent Non-executive Director
+56
+WANG Xinxin
+Independent Non-executive Director
+Male
+69
+2016.05-2022.05
+HUANG Zhenzhong
+Independent Non-executive Director
+Male
+57
+2017.09-2023.06
+2022.01-2025.01
+Former Directors, Supervisors and Senior Management
+Supervisor Representing Employees
+49
+ZHANG Qingsong
+Vice Chairman of the Board of Directors,
+Executive Director, President
+Male
+56
+2019.11-
+ZHANG Xuguang
+Executive Director, Executive Vice President
+Male
+57
+2019.12-
+Incumbent Senior Management
+LIN Li
+Executive Director, Executive Vice President
+Male
+53
+2021.03-
+Executive Vice President
+Male
+52
+2019.05-
+XU Han
+Executive Vice President
+CUI Yong
+Male
+2021.11-2024.11
+2021.11-2024.11
+Supervisor Representing Employees
+Male
+Supervisor Representing Employees
+Male
+55
+LIU Hongxia
+External Supervisor
+Female
+XU Xianglin
+External Supervisor
+53
+Male
+External Supervisor
+Male
+TOGGLE
+2018.08-2024.07
+56
+2019.10-2022.10
+2021.07-2024.07
+58
+2018.11-2024.11
+64
+WANG Xixin
+2020.11-
+6.51
+2021.03-2024.03
+Corporate Governance Report
+Name
+Position
+enterprise
+annuity and
+housing fund Director's fee/
+Remuneration paid in 2021
+(Unit: RMB Ten Thousand)
+Social
+insurance,
+Whether
+receiving
+remuneration
+from
+shareholders'
+Salaries paid
+payable by
+Supervisor's
+Tenure
+before tax
+the Bank
+(1)
+(2)
+fee
+(3) (4)=(1)+(2)+(3)
+Total
+unit or other
+related parties
+(Y/N)
+Annual Report 2021 127
+N
+124.49
+26.40
+18.58
+2021.11-
+Executive Vice President
+75.84
+20.10
+55.74
+LI Zhicheng
+Executive Vice President
+75.14
+19.40
+55.74
+2019.05-
+Former Directors, Supervisors and Senior Management
+ZHOU Mubing
+Executive Vice President
+XU Han
+CUI Yong
+Chief Risk Officer
+2017.02-
+98.41
+29.13
+127.54
+N
+HAN Guoqiang
+Secretary to the Board of Directors
+2020.11-
+98.09
+ZHANG Yi
+Former Chairman of the Board of
+Directors, Executive Director
+2016.07-2021.01
+35.40
+ZHANG Jie
+Former External Supervisor
+2018.11-2021.11
+26.75
+26.75
+LI Wang
+Former External Supervisor
+ZHAN Dongsheng
+Former Executive Vice President
+2015.06-2021.11
+2019.04-2021.06
+24.16
+24.16
+Employees
+Y
+8.31
+31.54
+N
+Notes: 1.
+2.
+3.
+The Directors, Supervisors and senior management members of the Bank who are also our employees are entitled
+to receive remuneration from the Bank. The remuneration package includes salary, bonus and contributions to all
+kinds of social insurance and housing fund payable by the Bank. The Independent Non-executive Directors of the
+Bank are entitled to receive director's fee. The External Supervisors of the Bank are entitled to receive supervisor's
+fee. The Chairman of the Board of Directors, Executive Directors and senior management members of the Bank
+do not receive any remuneration from any subsidiary of the Bank. For Supervisors Representing Employees of the
+Bank, the amount set forth above only includes fee for their services as Supervisors.
+In 2021, the Bank topped up the difference resulting from adjustments to annuity contribution percentages
+between February 2018 and December 2020. The above disclosure of benefits data includes the difference of the
+corresponding annuity payment for the year 2021.
+The total remuneration (before tax) paid to the Directors, Supervisors and senior management members,
+including former Directors, Supervisors and senior management members, by the Bank in 2021 was RMB11,936.9
+thousand.
+128
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+23.23
+25.09
+N
+5.00
+20.05
+55.45
+N
+ZHU Hailin
+Former Non-executive Director
+2020.06-2021.09
+Y
+LI Qiyun
+Former Non-executive Director
+2018.06-2021.12
+WU Jiangtao
+Former Non-executive Director
+5.00
+2019.07-2021.07
+Former Independent Non-executive
+2015.03-2021.11
+36.96
+36.96
+116
+Y
+Y
+Y
+Director
+XIA Taili
+Former Supervisor Representing
+2018.08-2021.08
+XIAO Xing
+2020.10-
+Y
+3.90
+enterprise
+receiving
+remuneration
+annuity and
+from
+housing fund Director's fee/
+shareholders'
+Salaries paid
+payable by
+Supervisor's
+Tenure
+before tax
+the Bank
+(1)
+(2)
+fee
+(3) (4)=(1)+(2)+(3)
+insurance,
+Whether
+Social
+(Unit: RMB Ten Thousand)
+Changes in Senior Management
+On 19 March 2021, Mr. LIN Li was appointed as an Executive Vice President of the Bank by the Board of Directors
+of the Bank. The qualification of Mr. LIN Li was ratified by the CBIRC on 31 March 2021.
+On 11 June 2021, Mr. ZHAN Dongsheng resigned as an Executive Vice President of the Bank due to work
+arrangements.
+On 12 October 2021, Mr. ZHANG Yi was appointed as an Executive Vice President of the Bank by the Board of
+Directors of the Bank. The qualification of Mr. ZHANG Yi was ratified by the CBIRC on 4 November 2021.
+Shareholdings of Directors, Supervisors and Senior Management
+At the end of the reporting period, none of the Directors, Supervisors or senior management members of the Bank
+held or purchased any share of the Bank. During the reporting period, none of the Directors, Supervisors and senior
+management members of the Bank held any share option of the Bank, or was granted restricted shares of the Bank.
+126
+Total
+| 中国农业银行
+Corporate Governance Report
+Remuneration of Directors, Supervisors and Senior Management
+Since 1 January 2015, the remuneration of the Chairman of the Board of Directors, the President, the Chairman of
+the Board of Supervisors as well as the Executive Vice Presidents of the Bank shall be in line with the relevant state
+regulations, which the Bank has followed to pay their salaries. The final remuneration of the Directors, Supervisors and
+senior management members for 2021 is still subject to confirmation and will be disclosed in a further announcement
+published by the Bank.
+The following table sets out the remuneration paid to the Directors, Supervisors and Senior Management of the Bank
+in 2021.
+Name
+Position
+Remuneration paid in 2021
+AGRICULTURAL BANK OF CHINA
+unit or other
+related parties
+(Y/N)
+Incumbent Directors, Supervisors and Senior Management
+GU Shu
+LIN Li
+Executive Director,
+2021.06-2024.06
+46.45
+16.19
+62.64
+N
+N
+Executive Vice President
+Non-executive Director
+2017.08-2023.06
+Y
+LI Wei
+Non-executive Director
+2019.05-2022.05
+Y
+LIAO Luming
+On 30 March 2022, at the second meeting of the Board of Supervisors in 2022, Ms. DENG Lijuan was nominated
+as a candidate for supervisor of the Bank, subject to the approval of her appointment by a shareholders' general
+meeting of the Bank.
+75.14
+55.74
+Chairman of the Board of Directors,
+2021.01-2024.01
+61.94
+20.05
+81.99
+N
+Executive Director
+19.40
+ZHANG Qingsong
+61.94
+20.05
+81.99
+N
+ZHANG Xuguang
+Executive Director,
+2020.10-2023.10
+Vice Chairman of the Board of Directors, 2020.01-2023.01
+Executive Director, President
+ZHOU Ji
+On 12 November 2021, at the ninth meeting of the Board of Supervisors in 2021, Mr. WANG Jingdong was elected
+as the Chairman of the Board of Supervisors of the Bank, and a member of each of the Due Diligence Supervision
+Committee and the Finance and Internal Control Supervision Committee of the Board of Supervisors, Ms. LIU
+Hongxia was elected as the Chairman of the Finance and Internal Control Supervision Committee of the Board
+of Supervisors, Mr. XU Xianglin was elected as the Chairman of the Due Diligence Supervision Committee and a
+member of the Finance and Internal Control Supervision Committee of the Board of Supervisors, Mr. WANG Xixin
+was elected as a member of the Due Diligence Supervision Committee.
+On 11 November 2021, Mr. ZHANG Jie ceased to serve as an External Supervisor and a member of each of the
+Due Diligence Supervision Committee and the Finance and Internal Control Supervision Committee of the Board of
+Supervisors due to the expiry of his term of office.
+SHAO Lihong Supervisor Representing Employees
+Mr. SHAO Lihong holds a master's degree in economics from Hunan Colleague of
+Finance and Economics and is a senior economist. He has served as a Supervisor
+Representing Employees of the Bank since August 2018. Mr. SHAO previously served
+successively in several positions in the Bank, including the deputy director level secretary
+of the Secretariat of the Office, the deputy director of the Real Estate Development
+Division, the Real Estate Development Division II and the General Business Division of the
+Real Estate Credit Department, the director of the Individual Housing Business Division
+of the Real Estate Credit Department, the director of the Housing Credit Division of
+the Individual Business Department, the director of the Housing Credit Division of the
+Housing Finance and Retail Credit Department, the deputy general manager of the
+Housing Finance and Retail Credit Department, the deputy general manager of the Retail
+Banking Department. He served as the director of the Trade Union Affairs Department of
+the Bank in April 2018.
+WU Gang Supervisor Representing Employees
+Mr. WU Gang holds a master's degree from Tianjin University specialising in management
+engineering and is a senior economist. He has served as a Supervisor Representing
+Employees of the Bank since October 2019. Mr. WU previously served as the director
+of Business Division IV, the assistant to the general manager and the deputy general
+manager of the Corporate Banking Department of the Bank, the general manager of
+the Big Client Department/Business Department and concurrently the member of party
+committee and vice president of the Beijing Branch. He served as the secretary of party
+committee and president of the Henan Branch in June 2014. He has been the general
+manager of Audit Office of the Head Office since May 2018.
+HUANG Tao Supervisor Representing Employees
+Mr. HUANG Tao holds a master's degree in arts from Huazhong University of Science
+and Technology and is a senior economist. He has served as a Supervisor Representing
+Employees of the Bank since July 2021. He previously served as the first secretary
+(director level), the consultant, concurrently the consultant and the deputy director of
+the General Office of the Secretary Bureau I of General Office of the State Council, the
+director of Division III and the deputy inspector and concurrently the director of Division
+Ill of the Supervision Office of General Office of the State Council, a member of the
+Municipal Standing Committee and the deputy mayor (temporary) of Guilin, the Guangxi
+Zhuang Autonomous Region, the deputy inspector and the inspector of the Supervision
+Office of the General Office of the State Council. He was appointed as the general
+manager of the Office/Complaint Office of the Bank in November 2015 and has served
+as the general manager of the Office of the Bank since June 2021.
+Annual Report 2021 121
+122
+Corporate Governance Report
+|中国农业银行
+AGRICULTURAL BANK OF CHINA
+LIU Hongxia External Supervisor
+Ms. LIU Hongxia holds a doctor's degree in management from Central University of
+Finance and Economics. She has served as an External Supervisor of the Bank since
+November 2018. Currently, Ms. LIU works as a professor and a supervisor for Ph.D.
+candidates at the School of Accounting of Central University of Finance and Economics
+and is entitled to Government Allowance granted by the State Council. Ms. LIU
+previously worked as a teaching assistant at Beijing Institute of Finance and Trade, a
+lecturer of Shandong University of Finance, an auditor of Zhongzhou Certified Public
+Accountants in Beijing, and a deputy professor of Central Financial Management Cadre
+College. She previously served as independent director for China Merchants Bank,
+Fangda Special Steel Technology Co., Ltd., Beijing AriTime Intelligent Control Co., Ltd.,
+Shanghai New Huang Pu Real Estate Co., Ltd., Langold Real Estate Co., Ltd., Nanjing
+Tanker Corporation of China Changjiang National Shipping Group Co., Ltd., Cinda Real
+Estate Co., Ltd., etc. She currently serves as an independent director of Joyoung Co.,
+Ltd., Tianyu Digital Technology (Dalian) Group Co., Ltd., and Henan Zhongfu Industrial
+Co., Ltd.
+XU Xianglin External Supervisor
+Mr. XU Xianglin holds a master's degree in economics from Renmin University of China,
+and has served as an External Supervisor of the Bank since November 2021. He is a
+professor and a supervisor for Ph.D. candidates in Economics of the Party School of the
+CPC Central Committee National School of Administration. He previously served as a
+teacher in the Department of Agricultural Economic Management of Renmin University
+of China, a teacher of the Economics Teaching and Research Office of Party School of the
+CPC Central Committee, and lectured the agricultural and rural economic development
+course at classes for cadre of the Party School of the CPC Central Committee for a long
+time prior to his retirement. He is currently involved in guiding the development of a
+"three-in-one" integrated farmers' cooperative system in Jingpeng town, Keshiketeng
+Banner, Inner Mongolia Autonomous Region. He is concurrently serving as the chairman
+of the board of supervisors of Beijing Jingxi Lilinhui Agricultural and By-products Planting
+Professional Cooperative.
+Corporate Governance Report
+Mr. FAN Jianqiang holds a master's degree in science from The Hong Kong Polytechnic
+University and is a senior auditor and a senior economist. He has served as a Supervisor
+Representing Shareholders of the Bank since November 2020. Mr. FAN previously served
+as the director of the Second Division of Finance Audit Division, the director of the
+Personnel and Education Division of Special Commissioner's Office in Chengdu of the
+National Audit Office of the PRC, the deputy general manager of the Preparatory Team
+of the Chengdu Regional Office of the Bank, the vice general manager of the Chengdu
+Regional Office of the Audit Office of the Bank, the vice general manager of the Wuhan
+Regional Office of the Audit Office of the Bank, the deputy general manager of the Audit
+Office of the Bank (deputy bureau level), the vice general manager of the Audit Office
+of the Bank. He served as the general manager of the Xi'an Regional Office of the Audit
+Office of the Bank in March 2018. He served as the Supervisor Representing Shareholders
+of the Bank and the director of the Office of the Board of Supervisors in June 2021. He
+served as the Supervisor Representing Shareholders and the head of Inspection Team 7 of
+the Bank in February 2022.
+FAN Jianqiang Supervisor Representing Shareholders
+AGRICULTURAL BANK OF CHINA
+3.90
+Corporate Governance Report
+LEUNG KO May Yee, Margaret Independent Non-executive Director
+Ms. LEUNG KO May Yee, Margaret, holds a bachelor's degree in Economics, Accounting
+and Business Administration from the University of Hong Kong. She was awarded Silver
+Bauhinia Star and Justice of the Peace by the HKSAR. She has served as an Independent
+Non-executive Director of the Bank since July 2019. She previously served as a vice
+chairman and the chief executive of Chong Hing Bank Limited, a vice chairman and the
+chief executive of Hang Seng Bank Limited, the general manager and global cohead of
+Industrial and Commercial Business of HSBC Group, a director of HSBC, and a director of
+Wells Fargo HSBC Trade Bank; she was an independent non-executive director of China
+Construction Bank, Hong Kong Exchanges and Clearing Limited, Li & Fung Limited, QBE
+Insurance Group Limited (listed on the Australian Securities Exchange), etc. She currently
+serves as an independent non-executive director of First Pacific Company Limited and Sun
+Hung Kai Properties Limited, and a member of the National Committee of the Chinese
+People's Political Consultative Conference.
+LIU Shouying Independent Non-executive Director
+Mr. LIU Shouying serves as a second-level professor and supervisor for Ph.D. candidates
+in School of Economics, Renmin University of China, the director of All China Federation
+of Supply and Marketing Cooperatives, vice president of the Chinese Association of
+Agro-Technical Economics, and executive director of the China Land Science Society.
+He has served as an Independent Non-executive Director of the Bank since July 2019.
+He previously served as a deputy secretary-general of the Academic Committee of
+the Development Research Center of the State Council, a deputy minister of the
+Rural Economic Research Department, a director of the Urban and Rural Coordination
+Fundamental Area of the Development Research Center of the State Council, and the
+president and chief editor of China Economic Times.
+WU Liansheng Independent Non-executive Director
+Wang Xixin External Supervisor
+Mr. WU Liansheng holds a doctor's degree in management and currently serves as chair
+professor of Southern University of Science and Technology. He served as a distinguished
+professor of the Chang Jiang Scholars Programme of the Ministry of Education, and
+awarded as the winner of the National Outstanding Young Scholars. He was elected
+into the "Programme for New Century Excellent Talents in University" of the Ministry of
+Education and the "Accountant Specialist Training Project" of the Ministry of Finance. He
+has served as an independent non-executive director of the Bank since November 2021.
+He previously served as the associate dean and professor for the Guanghua School of
+Management of Peking University. He previously served as an independent director of
+Huaneng Power International, Inc., RiseSun Real Estate Development Co., Ltd., Western
+Mining Co., Ltd., Wanda Cinema Line Co., Ltd., China National Building Material
+Company Limited, Xinhuanet Co., Ltd. and BOC International (China) Co., Ltd. Mr. WU
+currently serves as an independent director of Rightway Holdings Co., Ltd. and Pop Mart
+International Group Limited.
+Corporate Governance Report
+Biography of Supervisors
+WANG Jingdong
+Chairman of the Board of Supervisors, Supervisor
+Representing Shareholders
+Mr. WANG Jingdong holds a bachelor's degree in agronomy from Huazhong Agricultural
+College and is a senior engineer. Mr. WANG has served as the Chairman of the Board
+of Supervisors and a Supervisor Representing Shareholders of the Bank since November
+2018. Mr. WANG successively worked in the Ministry of Agriculture, Animal Husbandry
+and Fisheries, the State Economic Commission and State Agriculture Investment
+Corporation. He successively served in several positions in China Development Bank,
+including an executive vice president of the Heilongjiang branch, a vice general manager
+of the human resources department of the head office, the general manager of the
+project appraisal department III of the head office, the president of Beijing branch and
+the general manager of human resources department of the head office. Mr. WANG
+served as an executive vice president of Industrial and Commercial Bank of China in
+December 2013. He was appointed as an executive director and executive vice president
+of Industrial and Commercial Bank of China in December 2016.
+120
+|中国农业银行
+Annual Report 2021 119
+Mr. Wang Xixin holds a doctor's degree in law from Peking University and has served
+as an External Supervisor of the Bank since November 2021. He is currently a professor
+and a supervisor for Ph.D. candidates of Peking University Law School; the director
+of PKU-Yale Joint Centre for Law and Policy Reform Studies (China) and the Peking
+University Centre for Public Participation Studies and Supports, the executive dean of
+Peking University Law & Development Academy, the chief editor of Peking University
+Law Journal, the director of Peking University Centre for Studies of Constitutional and
+Administrative Law, being the Key Research Base of Humanities and Social Sciences
+of Ministry of Education. He previously worked at the Legal Affairs Office of Wuhan
+Municipal People's Government of Hubei Province; served as a vice dean of Peking
+University Law School and a deputy chief judge of the Administrative Trial Division of
+the Supreme People's Court (temporary). He is concurrently serving as a legal advisor of
+ministries and commissions under the State Council including Ministry of Education and
+State Administration for Market Regulation, a member of expert consultant committee
+for local governments including Beijing and Shanghai, and an independent director of
+Capital Securities Co., Ltd.
+Corporate Governance Report
+Biography of Senior Management
+On 28 January 2021, Mr. GU Shu was elected as an Executive Director of the Bank at the 2021 First Extraordinary
+General Meeting of the Bank. The qualification of Mr. GU Shu as the Chairman of the Board of Directors' was
+ratified by the CBIRC on 9 February 2021.
+On 27 November 2020, Ms. ZHOU Ji was elected as a Non-executive Director of the Bank at the 2020 Second
+Extraordinary General Meeting of the Bank. The qualification of Ms. ZHOU Ji was ratified by the CBIRC on 5 March
+2021.
+On 27 May 2021, Mr. LIN Li was elected as an Executive Director of the Bank at the 2020 Annual General Meeting
+of the Bank. The qualification of Mr. LIN Li was ratified by the CBIRC on 15 June 2021.
+On 27 July 2021, Mr. WU Jiangtao resigned as a Non-executive Director of the Bank due to work arrangements.
+On 28 September 2021, Mr. ZHU Hailin resigned as a Non-executive Director of the Bank due to work
+arrangements.
+On 19 November 2021, Ms. XIAO Xing ceased to serve as an Independent Non-executive Director of the Bank due
+to the expiry of her term of office.
+On 9 July 2021, Mr. WU Liansheng was elected as an Independent Non-executive Director of the Bank at the 2021
+Second Extraordinary General Meeting of the Bank. The qualification of Mr. WU Liansheng was ratified by the
+CBIRC on 19 November 2021.
+On 31 December 2021, Mr. LI Qiyun ceased to serve as a Non-executive Director of the Bank due to the expiry of
+his term of office.
+On 7 January 2021, Mr. ZHOU Mubing resigned as the Chairman of the Board of Directors and Executive Director
+of the Bank due to his age.
+On 11 November 2021, Mr. LIU Xiaopeng and Mr. XIAO Xiang were elected as Non-executive Directors of the Bank
+at the 2021 Third Extraordinary General Meeting of the Bank. The qualifications of Mr. LIU Xiaopeng and Mr. XIAO
+Xiang were ratified by the CBIRC on 20 January 2022.
+On 7 January 2021, Mr. GU Shu was elected as the Chairman of the Board of Directors of the Bank at the meeting of the
+Board of Directors.
+Annual Report 2021 125
+Corporate Governance Report
+Changes in Supervisors
+On 26 July 2021, each of Mr. SHAO Lihong and Mr. HUANG Tao was elected as a Supervisor Representing
+Employees of the Bank at the Employee Representative Meeting of the Bank.
+On 20 August 2021, Mr. XIA Taili ceased to serve as a Supervisor Representing Employees and a member of each of
+the Due Diligence Supervision Committee and the Finance and Internal Control Supervision Committee of the Board
+of Supervisors due to the expiry of his term of office.
+On 11 November 2021, Mr. LI Wang ceased to serve as an External Supervisor and a member of the Due Diligence
+Supervision Committee of the Board of Supervisors due to the expiry of his term of office.
+1
+On 11 November 2021, Mr. WANG Jingdong was re-elected as a Supervisor Representing Shareholders, Ms. LIU
+Hongxia, Mr. XU Xianglin and Mr. WANG Xixin were elected as External Supervisors of the Bank at the 2021 Third
+Extraordinary General Meeting of the Bank.
+Changes in Directors
+Corporate Governance Report
+Please see "Biography of Directors" for biographical details of Mr. ZHANG Qingsong, Mr. ZHANG Xuguang and
+Mr. LIN Li. The biographical details of other members of the senior management are as follows:
+CUI Yong Executive Vice President
+Mr. CUI Yong holds a bachelor's degree in engineering from Xi'an Highway Institute and
+is a senior economist. Mr. CUI has served as an Executive Vice President of the Bank since
+May 2019. Mr. CUI successively worked at the Ministry of Transport and the National
+Development and Reform Commission. Mr. CUI also served in various positions in the
+Industrial and Commercial Bank of China, including the deputy general manager of the
+first corporate business department, the vice president of Qingdao branch, the president
+of Xiamen branch, the vice president of Beijing branch, and the general manager of the
+corporate banking department of the head office. Mr. CUI previously held concurrent
+posts as the secretary general of the Syndications Committee of the China Banking
+Association and an expert of the National Association of Financial Market Institutional
+Investors. Mr. CUI concurrently serves as an executive vice president of the Payment &
+Clearing Association of China.
+XU Han Executive Vice President
+Mr. XU Han holds a master's degree in engineering from Shanghai University of
+Technology, is a senior engineer and an expert entitled to Government Special Allowance
+granted by the State Council allowances of the State Council. Mr. XU has served as an
+Executive Vice President of the Bank since October 2020. Mr. XU previously served in
+various positions in Bank of Communications, including the deputy general manager of
+IT Department of Hong Kong Branch, deputy general manager of Computer Department,
+vice CEO (CEO for Domestic Business) and CEO of Pacific Credit Card Centre, general
+manager of Personal Finance Department (Consumer Rights Protection Department),
+general manager of Personal Finance Department (Consumer Rights Protection
+Department) and general manager of Network Channel Department, general manager
+of Personal Finance Department (Consumer Rights Protection Department) and chief
+executive officer of Internet Centre (Online Centre), and chief business officer (Retail and
+Private Business Sector) and general manager of Personal Finance Department (Consumer
+Rights Protection Department). He concurrently serves as the Chief Information Officer of
+the Bank.
+Annual Report 2021 123
+Corporate Governance Report
+Changes in Directors, Supervisors and Senior Management
+124
+AGRICULTURAL BANK OF CHINA
+ZHANG Yi Executive Vice President
+Mr. ZHANG Yi holds a master's degree in business administration from Renmin University
+of China and is a senior accountant. He has served as an Executive Vice President of the
+Bank from November 2021. Mr. ZHANG previously served in several positions in China
+Construction Bank Corporation, including the deputy general manager of the asset and
+liability management department of the head office, the vice president and president
+of Jiangsu branch, and the general manager of the finance and accounting department
+of the head office. He concurrently served as the chief financial officer and the general
+manager of the finance and accounting department of China Construction Bank
+Corporation.
+LI Zhicheng Chief Risk Officer
+Mr. LI Zhicheng holds a master's degree in economics from Shaanxi College of Finance
+and Economics. Mr. Ll has served as the Chief Risk Officer of the Bank since February
+2017. Mr. Ll previously served in several positions in the Bank, including an assistant
+president of Wuhan Cadre Management College of the Bank, a deputy director of
+Research Office of the Head Office and a vice president of Hebei Branch. From June
+2005, Mr. Ll successively served as the director of Research Office of the Bank, the
+president of Jilin Branch and the president of Jiangsu Branch. Mr. Ll served as Chief
+Investment Officer of the Bank in July 2014 and concurrently held the position of general
+manager of Hong Kong Branch.
+HAN Guoqiang Secretary to the Board of Directors
+Mr. HAN Guoqiang holds a master's degree in business administration from Lanzhou
+University, and is a senior economist. He has served as the Secretary to the Board
+of Directors of the Bank since November 2020. Mr. HAN previously served as a vice
+principal and the principal of the training institute of the Gansu Branch of the Bank, the
+assistant president and vice president of Gansu Branch of the Bank. Mr. HAN served as
+the president of Gansu Branch of the Bank in May 2014, and served as the president of
+Chongqing Branch of the Bank in August 2016.
+| 中国农业银行
+Non-executive Director
+Executive Vice President
+2017.09-2023.06
+3.42
+Y
+Chairman of the Board of Supervisors,
+2018.11-2024.11
+61.94
+20.05
+81.99
+N
+Supervisor Representing Shareholders
+FAN Jianqiang
+SHAO Lihong
+WU Gang
+Supervisor Representing Shareholders
+2020.11-2023.11
+3.42
+N
+2018.08-2024.07
+5.00
+5.00
+N
+Supervisor Representing Employees
+2019.10-2022.10
+5.00
+5.00
+N
+HUANG Tao
+Supervisor Representing Employees
+2021.07-2024.07
+Supervisor Representing Employees
+2021.11-2024.11
+Independent Non-executive Director
+N
+Y
+588
+38.00
+38.00
+2019.07-2022.07
+Independent Non-executive Director
+LEUNG KO May
+38.00
+38.00
+Yee, Margaret
+Independent Non-executive Director
+HUANG Zhenzhong
+38.07
+38.07
+2016.05-2022.05
+Independent Non-executive Director
+2022.01-2025.01
+Non-executive Director
+XIAO Xiang
+WANG Xinxin
+2022.01-2025.01
+Non-executive Director
+LIU Xiaopeng
+LIU Shouying
+WU Liansheng
+WANG Jingdong
+Independent Non-executive Director
+2019.07-2022.07
+36.00
+36.00
+LIU Hongxia
+XU Xianglin
+WANG Xixin
+Y
+External Supervisor
+30.00
+2018.11-2024.11
+2021.11-2024.11
+External Supervisor
+4.59
+Y
+2021.11-2024.11
+30.00
+External Supervisor
+4.59
+The Non-executive Directors and the external auditors held five symposiums,
+having in-depth communication on the audit work and the issues identified
+during the audit and review.
+Pursuant to the relevant requirements of the CSRC and the Shanghai Stock Exchange, as the Independent Non-
+executive Directors of Agricultural Bank of China Limited, we have reviewed the guarantee business of the Bank
+based on the principles of justice, fairness and objectivity, and hereby issue our specific statements and opinions
+as follows: according to our review, the guarantee business of the Bank is mainly to issue letters of guarantee,
+which has been approved by the PBOC and the CBIRC as one of the ordinary businesses within the scope of daily
+operations of the Bank. At 31 December 2021, the balance of the guarantee business of the Bank (including letters
+of guarantee issued and guarantees by the Group) amounted to RMB304,238 million. The Bank has attached great
+importance to the risk management of the guarantee business and formulated strict regulations in respect of the
+credit standard of guarantees, and the operational procedure and approval process of the guarantee business. We
+believe that the Bank has effectively controlled the risks on the guarantee business.
+Item
+The Independent Non-executive Directors of Agricultural Bank of China Limited:
+WANG Xinxin, HUANG Zhenzhong, LEUNG KO May Yee, Margaret, LIU Shouying and WU Liansheng
+Other independent opinions
+For details, please see "Corporate Governance Report
+Shareholders' Interests".
+-
+Meetings of the Board of Directors
+Shareholding Structure
+Protection of Minority
+Annual Report 2021 133
+Corporate Governance Report
+Means for Non-executive Directors to access information
+Specific Statement and Independent Opinion of Independent Non-executive Directors on the Guarantee
+Business of the Bank
+Communication with
+the Senior Management
+Communication with
+independent third parties
+such as external auditors
+Investigations and research
+We regularly provide the Non-executive Directors with important operational
+information such as financial operation, asset and liability operation and risk
+management reports, and other important documents and information updates
+such as newly added or newly revised rules and regulations, meeting materials,
+internal audit reports, etc. The Non-executive Directors have permission to access
+our intelligent office portal, integrated financial and accounting management
+platform, operating management information platform, credit management
+system, as well as internal control and compliance management system.
+The mechanism for the Directors to sit in on the president's office meetings and
+on the meetings held by the special committees of the Senior Management was
+established. During the reporting period, the Non-executive Directors sat in on
+29 president's office meetings and 13 meetings held by the special committees of
+the Senior Management.
+The Non-executive Directors participated in 10 communication meetings for
+proposals before the meetings of the Board of Directors and had in-depth and
+thorough discussions on the content of the proposals.
+The Non-executive Directors sat in on the meetings for monthly business briefings
+and departmental thematic debriefings, so as to gain a timely and comprehensive
+understanding of our operation and management.
+The Non-executive Directors visited six branches to conduct investigation and
+research. They prepared written investigation and research reports and put
+forward policy advice focusing on topics such as rural revitalization through
+financial services, innovation of performance management mechanism to lead
+high-quality development, and development of green finance under the target of
+peak carbon emission and carbon neutrality, respectively.
+Daily information support
+The role of Independent Non-executive Directors in terms of internal control
+The Independent Non-executive Directors listened to a number of reports from the external auditors with respect
+to the audit results, annual audit plan, management letter, etc. In the course of preparation of the 2020 Annual
+Report, the Independent Non-executive Directors individually communicated with the external auditors regarding
+issues identified in the audits.
+% of
+Directors with
+professional
+background
+in finance
+and audit
+% of
+Directors under
+55 (inclusive)
+years old
+12
+41.7%
+16.7%
+25%
+41.7%
+41.7%
+Reviewed 12 proposals including the nomination
+of Director candidates, the appointment of
+Executive Vice President, and the adjustment
+of the chairmen and members of the special
+committees of the Board of Directors; and listened
+to the report on due diligence evaluation of the
+Board of Directors and the Senior Management
+and their members by the Board of Supervisors
+for 2020.
+We have formulated a policy on diversity of the composition of the Board of Directors, which specifies our opinions of
+upholding the diversity of the composition of the Board of Directors, and the approaches to be taken on an ongoing
+basis in the process of achieving it. We acknowledged and appreciated its benefits and regarded it as a critical factor
+in achieving our strategic goals, maintaining our competitive strengths and achieving our sustainable development.
+We considered the diversity from various aspects, including talent, skills, industry experience, cultural and educational
+background, gender, age, ethnicity and other factors, in setting the composition of the Board of Directors.
+The Board of Directors of the Bank is composed of professionals in the fields of accounting, law and economics,
+while achieving diversity in various dimensions such as gender, age and length of service, which effectively
+improved the decision-making ability and strategic management of the Board of Directors.
+Independence of Independent Non-executive Directors
+As of the end of the reporting period, the qualifications, number and proportion of the Independent Non-executive
+Directors were in full compliance with the applicable regulatory requirements. The Independent Non-executive
+Directors were not involved in any business or financial interests of the Bank or its subsidiaries, nor did they hold
+any managerial position in the Bank. We have received annual independence confirmation letters from each of the
+Independent Non-executive Directors and confirmed their independence.
+Performance of Duties by Independent Non-executive Directors
+During the reporting period, the Independent Non-executive Directors worked for the Bank at no less than
+15 working days. The Directors who served as the chairmen of the Audit and Compliance Committee, the Risk
+Management and Consumers' Interest Protection Committee and the Related Party Transaction Management
+Committee worked for the Bank at no less than 25 working days.
+During the reporting period, the Independent Non-executive Directors did not raise any objection to the resolutions
+of the Board of Directors or its special committees.
+Details were disclosed in the Due Performance Report of Independent Non-executive Directors of Agricultural Bank
+of China Limited for 2021, which was published on the website of the Shanghai Stock Exchange.
+132
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Corporate Governance Report
+Communications between Independent Non-executive Directors and external auditors
+The Independent Non-executive Directors considered the proposals, including the work plan of internal control
+evaluation for 2021, the internal control assessment report for 2020, the work report on prevention and control of
+cases of violations for 2020, and listened to the reports, including the work report on audit of financial statements
+and internal control for 2020, the audit report for 2020, the report on compliance risk management for 2020,
+the work report on anti-money laundering and sanction compliance for 2020, and the report on related party
+transactions management for 2020.
+Issues that the Independent Non-executive Directors paid close attention to during the reporting period
+The Independent Non-executive Directors focused on key issues such as management of related party transactions,
+nomination of the senior management members, information disclosure, internal control, operation of the Board
+of Directors and its special committees, etc. They made clear judgments on relevant matters in accordance with the
+law and regulations, expressed their opinions and made recommendations independently and objectively.
+UMMM
+Reviewed a proposal on the specific evaluation
+plan of inclusive finance business for 2021; and
+listened to two reports including the forecast
+of the County Area Banking Division's financial
+target in 2021 and the operation conditions of
+serving Sannong and business in County Areas.
+HUANG Zhenzhong
+LEUNG KO May Yee, Margaret
+LIU Shouying
+WU Liansheng
+% of Independent
+Related
+Party
+Non-executive Directors
+Notes: 1.
+2.
+3.
+4.
+M
+14.3%
+M
+M
+33.3%
+C
+UM
+MM
+57.1%
+C
+Non-executive Directors
+MMU
+WANG Xinxin
+ZHOU Ji
+Regions
+Protection Management United States
+Committee
+Committee
+Committee
+Compliance
+Development Development Remuneration
+Committee Committee Committee
+Risk
+Management
+Committee of
+Institutions
+in the
+Interests Transactions
+Audit and
+and
+Finance
+Sustainable
+C
+M
+LIN Li
+Non-executive Directors
+LIAO Luming
+LI Wei
+M
+M
+2 MM MM
+Independent
+C
+75%
+MM
+9.
+10.
+On 24 December 2021, the Board of Directors of the Bank reviewed and approved the proposal on Adjusting
+the Chairman and Members of the Special Committees of the Board of Directors to adjust the positions of
+Mr. WANG Xinxin and Mr. WU Liansheng in the special committees. For details, please refer to the announcements
+published by the Bank on the websites of the Shanghai Stock Exchange and the Hong Kong Stock Exchange.
+On 31 December 2021, Mr. LI Qiyun ceased to serve as a member of the Strategic Planning and Sustainable
+Development Committee, a member of the Risk Management and Consumers' Interests Protection Committee and
+a member of the Risk Management Committee of Institutions in the United States Regions.
+Performance of the Special Committees of the Board of Directors
+Special
+Committees
+Strategic
+Planning and
+Sustainable
+Development
+Committee
+County Area
+Banking
+Business
+and Inclusive
+Finance
+Development
+Committee
+Nomination
+and
+Remuneration
+Committee¹
+Duties
+Review our overall strategic development plan
+and specific strategic development plans, major
+investment and financing plans, establishment of
+legal entities and other material matters critical
+to our development and make suggestions to
+the Board of Directors. Formulate the sustainable
+development strategies and goals of the Bank
+and regularly evaluate the risks associated with
+sustainable development and the implementation
+of the sustainable development strategies.
+Review the strategic development plan, policies
+and basic management rules, risk management
+strategic plan and other major matters in relation
+to the development of the County Area Banking
+Business and Inclusive Finance, as well as supervise
+the implementation of the strategic development
+plan, policies and basic management rules of
+the County Area Banking Business and Inclusive
+Finance, and make suggestions to the Board of
+Directors.
+Formulate the standards and procedures
+for election of the Directors, chairman and
+members of special committees of the Board
+of Directors and senior management members,
+and make recommendations regarding the
+proposed candidates for the Directors and senior
+management members and their qualifications
+to the Board of Directors, as well as formulate
+the remuneration policies for the Directors and
+senior management members, and submit the
+remuneration packages to the Board of Directors
+for consideration.
+Number of
+meetings
+7
+2
+8
+Reviewing proposals or listening to reports
+Reviewed 19 proposals relating to the Operation
+Plan for 2021, the final financial accounts plan for
+2020, the 2020 Corporate Social Responsibility
+Report, the 14th Five-Year Plan of ABC, and the
+Green Finance Development Plan (2021-2025);
+listened to the implementation of the 13th
+Five-Year Plan of ABC and the evaluation report
+on strategic risk management; and provided
+relevant suggestions on the issuance of capital
+bonds and the write-off of bad debts.
+Corporate Governance Report
+MM
+138
+On 19 November 2021, Ms. XIAO Xing ceased to serve as the Chairman and a member of the Audit and
+Compliance Committee, a member of the Strategic Planning and Sustainable Development Committee, a member
+of the County Area Banking Business and Inclusive Finance Development Committee and a member of the
+Nomination and Remuneration Committee.
+M
+M
+C
+NUM
+MMU
+M
+C
+M
+50%
+100%
+50%
+5.
+6.
+7.
+8.
+C refers to the Chairman of the relevant Committees and M refers to the Member of the relevant Committees.
+On 7 January 2021, Mr. ZHOU Mubing resigned as the Chairman and a member of the Strategic Planning and
+Sustainable Development Committee.
+On 9 February 2021, Mr. GU Shu served as the Chairman and a member of the Strategic Planning and Sustainable
+Development Committee.
+On 30 March 2021, the Board of Directors of the Bank reviewed and approved the proposal on Adjusting the
+Members of the Special Committees of the Board of Directors to adjust the positions of Mr. ZHU Hailin and
+Ms. ZHOU Ji in the special committees. For details, please refer to the announcements published by the Bank on
+the websites of the Shanghai Stock Exchange and the Hong Kong Stock Exchange.
+On 15 June 2021, Mr. LIN Li served as a member of the Strategic Planning and Sustainable Development
+Committee, a member of the Risk Management and Consumers' Interests Protection Committee and a member of
+the Risk Management Committee of Institutions in the United States Regions.
+On 27 July 2021, Mr. WU Jiangtao resigned as a member of the County Area Banking Business and Inclusive
+Finance Development Committee, a member of the Audit and Compliance Management Committee, a member
+of the Risk Management and Consumers' Interests Protection Committee and a member of the Risk Management
+Committee of Institutions in the United States Regions.
+On 28 September 2021, Mr. ZHU Hailin resigned as a member of the Strategic Planning and Sustainable
+Development Committee, a member of the Risk Management and Consumers' Interests Protection Committee and
+a member of the Risk Management Committee of Institutions in the United States Regions.
+Annual Report 2021 137
+Consumers'
+13/13
+Inclusive
+Strategic
+Planning and
+Risk
+Risk
+Management
+Banking
+County Area
+Directors
+Meetings of Special Committees of the Board of Directors
+Number of attendance in person'/number of meetings requiring attendance
+Attendance of Directors at Meetings
+Corporate Governance Report
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+134
+The Board of Directors listened to 27 reports such as the evaluation
+report of the implementation of the 13th Five-Year Plan as well
+as the strategic risk management, the report on internal capital
+adequacy assessment for 2021, and the work on consumer interests'
+protection, etc.
+The Board of Directors considered 88 proposals such as periodic reports,
+the profit distribution, nominating the candidates of the Directors and
+the appointment of the senior management members, etc.
+Business and
+proposals or listening to reports
+and
+Inclusive Nomination
+Institutions
+Transactions
+Interests
+Audit and
+and
+Remuneration
+Development
+Finance
+Sustainable
+Development
+the Board of
+General
+Meetings of
+Shareholders'
+Committee of
+Related Party
+Consumers'
+Management
+Particulars of considering
+13
+Total number of meetings held
+Pursuant to code provision A.2.1 of the Corporate Governance Code in Appendix 14 to the Hong Kong Listing
+Rules and the Articles of Association, the roles of the Chairman and the President of the Bank are separate. The
+Chairman shall not be held concurrently by the legal representative or the person-in-charge of any controlling
+shareholder of the Bank. The roles of the Chairman and the President of the Bank are separate and independent,
+with clear division of responsibilities.
+Chairman of the Board of Directors and President of the Bank
+Each Director shall be elected at the shareholders' general meetings. A Director shall serve a term of three years
+commencing from the date on which such Director is ratified by the CBIRC or approved by the shareholders'
+general meeting. A Director may serve consecutive terms if being re-elected upon the expiration of the previous
+term, and the re-elected term shall commence from the date on which the re-election is approved by the
+shareholders' general meeting. The term of an Independent Non-executive Director shall not exceed six years on an
+aggregated basis.
+Terms of Directors
+At the end of the reporting period, the Board of Directors of the Bank consisted of 12 Directors, including
+four Executive Directors, namely Mr. GU Shu, Mr. ZHANG Qingsong, Mr. ZHANG Xuguang and Mr. LIN Li;
+three Non-executive Directors, namely Mr. LIAO Luming, Mr. LI Wei and Ms. ZHOU Ji; and five Independent
+Non-executive Directors, namely Mr. WANG Xinxin, Mr. HUANG Zhenzhong, Ms. LEUNG KO May Yee, Margaret,
+Mr. LIU Shouying and Mr. WU Liansheng.
+Composition of the Board of Directors
+As our decision-making organ, the Board of Directors is accountable to, and shall report its work to, the shareholders'
+general meeting. The Board of Directors is responsible for, among other things, convening the shareholders' general
+meeting and reporting to the shareholders' general meeting; implementing the resolutions of the shareholders'
+general meeting; deciding on our development strategies, business plans and investment proposals; formulating our
+annual financial budget and final accounts, proposals on profit distribution and loss appropriation, proposals on
+the increase or reduction of registered capital and financial restructuring, the capital replenishment plans including,
+among other things, the issue and listing of corporate bonds and other negotiable securities; formulating proposals on
+merger, division, dissolution or change of the corporate form; formulating proposals on the ordinary share repurchase;
+establishing and supervising the implementation of our basic management systems and policies; establishing and
+improving basic management systems for risk management and internal control; considering and approving the
+general risk management report and the plan on allocation of risk-based capital, and evaluating the effectiveness
+of our risk management; formulating amendments to our Articles of Association, the rules of procedures for a
+shareholders' general meeting and the rules of procedures for the Board of Directors and establishing the relevant
+corporate governance system; appointing or dismissing the President and the Secretary to the Board of Directors;
+appointing and dismissing the Vice President and other senior management members (excluding the Secretary to the
+Board of Directors) nominated by the President; evaluating and improving our corporate governance; and managing
+the affairs related to our information disclosure.
+Details of the Board of Directors
+Board of Directors
+Corporate Governance Report
+AGRICULTURAL BANK OF CHINA
+|中国农业银行
+For details of the attendance of each Director, please refer to "Attendance of Directors at Meetings".
+The Bank published the poll results announcements and legal opinions on the above shareholders' general
+meetings in a timely manner in accordance with regulatory requirements. Such poll results announcements were
+published on the website of the Hong Kong Stock Exchange on 28 January 2021, 27 May 2021, 9 July 2021
+and 11 November 2021, respectively, and on the website of the Shanghai Stock Exchange as well as on the
+newspapers designated by the Bank for information disclosure on 29 January 2021, 28 May 2021, 10 July 2021
+and 12 November 2021, respectively.
+3.
+Mr. GU Shu serves as the Chairman of the Board of Directors and our legal representative and is responsible for
+organizing the Board of Directors to make decisions on material issues such as our development strategies.
+Mr. ZHANG Qingsong serves as the President of the Bank, who is in charge of our management of business
+operations. The President is appointed by, and accountable to, the Board of Directors, and shall perform duties in
+accordance with the Articles of Association and the authorization of the Board of Directors.
+Annual Report 2021 131
+Corporate Governance Report
+9
+Number of extraordinary meetings held
+4
+Number of regular meetings held
+Directors with
+professional
+background
+in law
+% of
+% of female
+Directors
+Compliance
+Independent
+Non-executive
+Directors
+% of
+Diversity of the Board of Directors
+Training Methods: Online training and on-site exams
+Training Duration: Not less than 15 hours
+Training of Our Secretary to the Board of Directors and Company Secretary
+Training Contents: Anti-money laundering and sanction compliance, peak carbon emissions and carbon neutrality,
+legal liability and risk prevention of independent non-executive directors of listed companies and
+other special topics.
+Training Methods: Duty performance training for the Directors and Supervisors, training by conference, training by
+written materials, etc.
+Training of Our Directors
+Number of
+Directors
+Protection
+Meetings
+Directors
+HUANG Zhenzhong
+WANG Xinxin
+Non-executive Directors
+Independent
+5/5
+1/1
+6/6
+10/10
+3/3
+6/6
+8/8
+2/2
+13/13
+4/4
+4/4
+ཟུཟུ
+4/4
+11/13
+4/4
+|中国农业银行
+12/13
+4/4
+ཟུཟུ
+Margaret
+LEUNG KO May Yee,
+3/4
+7/7
+3/3
+3/4
+2/3
+5/7
+ཟུག
+8/8
+8/8
+11/13
+7/7
+2.
+2/2
+13/13
+3/4
+5/6
+10/11
+0/3
+ཏྲུཐཱབྷུསྶ
+LIN Li
+ZHANG Xuguang
+ZHANG Qingsong
+GU Shu
+Executive Directors
+Management in the United
+Committee States Regions
+Committee
+Committee
+Committee Committee
+Committee
+12/13
+7/7
+2/2
+8/8
+4/4
+ཟུཊྛ༢
+ZHOU Ji
+LI Wei
+LIAO Luming
+Non-executive Directors
+1/2
+7/7
+4/4
+7/7
+2/2
+2/4
+5/7
+7/7
+12/13
+4/4
+3/3
+Nomination
+1. Attendance in person includes attendance on site and attendance by way of electronic communication such as
+telephone and video conference.
+14/15
+3/3
+ZHU Hailin
+3/3
+10/10
+5/5
+3/3
+ཟུབ་
+4/4
+3/3
+3/4
+2/2
+XIAO Xing
+LI Qiyun
+4/4
+12/12
+1/1
+6/6
+8/8
+WU Jiangtao
+Operation of Corporate Governance
+Corporate Governance Structure
+Corporate Governance Report
+4/6
+7/7
+3/3
+4/4
+4/4
+10/13
+1/2
+8/8
+5/6
+1/1
+LIU Shouying
+WU Liansheng
+Former Directors
+3/3
+1/1
+7/7
+5/5
+AGRICULTURAL BANK OF CHINA
+Details
+Details of the Special Committees under the Board of Directors
+The Special Committees under the Board of Directors of the Bank and the Compositions of Their
+Members at the End of the Reporting Period
+Executive Directors
+GU Shu
+ZHANG Qingsong
+ZHANG Xuguang
+County Area
+Banking
+Risk
+Management
+Strategic
+Business and
+and
+Planning and
+|中国农业银行
+136
+-
+For details of our risk management and internal control, please refer to "Discussion and Analysis Risk
+Management", "Corporate Governance Report
+Risk Governance" and "Corporate Governance
+Report Internal Control".
+4/4
+7/7
+7/7
+4/4
+Note:
+1.
+Attendance in person includes attendance on site and attendance by way of electronic communication such as
+telephone and video conference. During the reporting period, the Directors who did not attend the meetings of
+the Board of Directors or special committees in person thereof had designated other Directors as proxies to attend
+and to vote on their behalf at the meetings.
+Corporate Governance Structure Chart of the Bank
+Annual Report 2021 135
+Implementation of Resolutions of the Shareholders' General Meetings by the Board of Directors
+During the reporting period, the Board of Directors strictly implemented the resolutions of the shareholders' general
+meetings and the authorization to the Board of Directors by the shareholders' general meeting, and seriously
+implemented the proposals considered and approved by the shareholders' general meetings, including the fixed
+assets investment budget and issuance plans of write-down undated capital bonds.
+Responsibilities of Directors on Financial Statements
+The Directors acknowledge their responsibility for preparing the financial reports of each accounting period, and
+they are of the view that such financial reports give a true and fair view of the financial position, operating results
+and cash flows of the Group.
+During the reporting period, we complied with relevant laws, regulations and the requirements of the listing rules
+of places where our shares are listed and published the annual report for 2020 and the first quarterly report,
+interim report and third quarterly report for 2021.
+Risk Management and Internal Control
+The Board of Directors is responsible for establishing sound and effective risk management and internal control and
+supervising and assessing the construction of our internal control and risk management systems and the risk level
+(including reviewing the effectiveness of such systems). Such systems are in place to provide reasonable (though not
+absolute) assurance against material misstatement or loss, and to manage (rather than eliminate) the risk of failure
+to achieve business objectives. During the reporting period, the Board of the Directors reviewed the adequacy and
+effectiveness of our risk management and internal control through the Audit and Compliance Committee, Risk
+Management and Consumers' Interests Protection Committee, Risk Management Committee of Institutions in
+the United States Regions and Related Party Transactions Management Committee established under it. Based on
+consideration and review of reports from the relevant special committees of the Board of Directors, the Board of
+the Directors was of the view that our risk management and internal control were adequate and effective.
+Corporate Governance Report
+Shareholders'
+General Meeting
+Board of
+Directors
+Nomination and
+2021
+attendance)
+(Number of
+attendance in
+person¹/Number of
+meeting requiring
+Directors
+Attendance of
+Reports listened to
+Proposals reviewed
+Date
+Meetings
+Shareholders' General Meetings
+Corporate Governance Report
+130
+Annual Report 2021 129
+As our authority of power, our shareholders' general meeting is formed by all shareholders. Our shareholders' general
+meeting is responsible for, among other things, deciding on our business policies and investments plans; electing,
+replacing and dismissing Directors and deciding on matters concerning the remuneration of the relevant Directors;
+electing, replacing and dismissing External Supervisors and Supervisors representing shareholders, and deciding on
+matters concerning the remuneration of the relevant Supervisors; examining and approving work report of the Board of
+Directors and work report of the Board of Supervisors; examining and approving our annual financial budget and final
+accounts, and profit distribution and loss appropriation plans; adopting resolutions concerning the increase or reduction
+of our registered capital, the issue and listing of corporate bonds and other negotiable securities, merger, division,
+dissolution, liquidation, change of corporate form and repurchase of ordinary shares; and amending the Articles of
+Association as well as considering and adopting the rules of procedures for a shareholders' general meeting, the rules
+of procedures for the Board of Directors and the rules of procedures for the Board of Supervisors, etc.
+Shareholders' General Meetings
+The 2021 First
+Extraordinary
+General Meeting
+28 January
+The 2020 Annual
+General Meeting
+27 May 2021
+13/14
+12/12
+The 2020 remuneration plan for the None
+Directors; the 2020 remuneration plan
+for the Supervisors; the election of
+Mr. LIU Xiaopeng as a Non-executive
+Director; the election of Mr. XIAO Xiang as
+a Non-executive Director; the re-election
+of Mr WANG Jingdong as a Supervisor
+Representing Shareholder; the re-election
+of Ms. LIU Hongxia as an External
+Supervisor; the election of Mr. XU Xianglin
+as an External Supervisor; the election of
+Mr. WANG Xixin as an External Supervisor;
+and the additional budget for designated
+poverty alleviation donations
+None
+The 2020 work report of
+Independent Non-executive
+Directors; the report on
+the implementation
+the Plan on Authorization
+of Shareholders' General
+Meeting to the Board of
+Directors for 2020; and the
+report on the management
+of related party transactions
+for 2020
+of
+None
+During the reporting period, we attached great importance to enhance the communication and interaction among
+the Board of Directors, the Board of Supervisors and the Senior Management. In May 2021, we held a symposium for
+Directors, Supervisors and the senior management members in which they had in-depth exchanges on issues, such
+as serving rural revitalization, capital management, digital transformation, and risk prevention and control. They also
+participated in activities, including anti-money laundering and sanction compliance trainings, the lecture on "Peak
+Carbon Emissions and Carbon Neutrality: Opportunities and Challenges of Commercial Banks", which allowed them to
+conduct in-depth discussions, build consensus and improve their communication efficiency and synergy.
+The election of Mr. WU Liansheng as an
+Independent Non-executive Director; and
+the issuance plan of write-down undated
+capital bonds
+The election of Mr. GU Shu as an
+Executive Director; and additional budget
+for poverty alleviation donations
+Notes:
+11 November
+The 2021 Third
+Extraordinary
+General Meeting
+2021
+9 July 2021
+The 2021 Second
+Extraordinary
+General Meeting
+The 2020 work report of the Board of
+Directors; the 2020 work report of the
+Board of Supervisors; the final financial
+accounts for 2020; the profit distribution
+plan for 2020; the appointments of
+auditors for 2021; the election of Mr. LIN
+Li as an Executive Director; and the fixed
+assets investment budget for 2021
+11/13
+Note: Responsibilities of the Risk Management Committee of Institutions in the United States Regions are concurrently assumed by the Risk Management and Consumers'
+Interests Protection Committee
+Primary reporting line
+Finance and
+Internal Control
+Due Diligence
+Supervision
+Committee
+Committee
+Committee
+Audit and
+Compliance
+Related Party
+Transactions
+Management
+Board of
+Supervisors
+Senior
+Management
+Risk Management
+Committee of
+Institutions in the
+United States
+Regions
+Committee
+and Consumers'
+Interests Protection
+Risk Management
+County Area Banking
+Business and
+Inclusive Finance
+Development
+Committee
+Strategic Planning
+and Sustainable
+Development
+Committee
+Remuneration
+Committee
+Supervision Committee
+Audit Office
+Risk
+Asset and
+Liability
+Management
+Committee
+Green
+Finance
+Committee
+Regional Audit Offices
+Third Party
+Payment
+Business
+Management
+Committee
+Investment
+Review
+Committee
+Technology
+and
+Product
+Innovation
+Committee
+Committee
+Committee Management
+Secondary reporting line
+Financial
+Asset
+Credit
+Review Disposal Approval
+Committee Committee Committee
+Division
+Control
+Finance
+Inclusive
+and
+Internal
+County
+Area Banking
+Division and
+Management
+Consumers'
+Interests
+Protection
+Committee
+AGRICULTURAL BANK OF CHINA
+Corporate Governance Report
+7
+4
+Reviewing Proposals or Listening to Reports
+Reviewed nine proposals, including the supervision and assessment report on
+the work of serving Sannong for 2020, and listened to 18 reports, including the
+monitoring and analysis report on the financial and operation conditions for 2020.
+Work of External Supervisors
+During the reporting period, the External Supervisors performed their supervisory duties diligently in accordance
+with the Articles of Association. They reviewed the relevant proposals, listened to the work reports, and carried out
+the supervision and investigations. They attended meetings of the Board of Supervisors and its special committees
+thereof, and provided professional, rigorous and independent advice and opinions. The External Supervisors played
+active roles in improving our corporate governance and enhancing our operation management level.
+Annual Report 2021 143
+Corporate Governance Report
+Work of Board of Supervisors
+Please refer to the "Report of the Board of Supervisors".
+Number of Meetings
+Senior Management
+Composition of the Senior Management
+At the end of the reporting period, the Bank's Senior Management comprised eight members, namely,
+Mr. ZHANG Qingsong, Mr. ZHANG Xuguang, Mr. LIN Li, Mr. CUI Yong, Mr. XU Han, Mr. ZHANG Yi,
+Mr. LI Zhicheng and Mr. HAN Guoqiang.
+Work of the Senior Management
+Authorized by the Board of Directors, the Senior Management effectively promoted the bank-wide operation
+and management in compliance with the Articles of Association and other governance documents of the Bank.
+During the reporting period, the senior management members held more than 700 president's office meetings
+and thematic conferences to study on how to implement the decisions and plans of the Board of Directors and
+formulate the operation plans, operation strategies and management measures which were subject to well-timed
+adjustments in response to the market changes. The senior management members proactively invited the Directors
+and Supervisors to attend key meetings and events, solicited their opinions and advice, and maintained close
+communication with the Board of Directors and the Board of Supervisors, thereby constantly improving the quality
+and efficiency of our operation and management.
+144
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Corporate Governance Report
+Related Party Transactions and Intra-group Transactions
+As our execution organ, the Senior Management is accountable to the Board of Directors and shall submit themselves
+to the supervision of the Board of Supervisors. The senior management is responsible for, among other things,
+taking charge of our operation and management, and making arrangements to implement resolutions of the Board;
+formulating our basic management systems and policies, and establishing our specific rules and regulations (other
+than internal audit rules and regulations); formulating our business plans and investment proposals, and making
+arrangements for their implementation after they are approved by the Board of Directors; formulating our annual
+financial budget and final accounts, risk capital allocation plans, profit distribution plans, loss appropriation plans,
+plans for increase or reduction of registered capital, plans for issuance of corporate bonds or other negotiable
+securities and listing plans, and shares repurchase plans, and making proposals to the Board of Directors, etc.
+Management System of Related Party Transactions and Intra-group Transactions
+Meetings of the Finance and Internal Control Supervision Committee
+Reviewed 14 proposals including the assessment report on due diligence of the
+Board of Directors, the Board of Supervisors, the Senior Management and their
+respective members for 2020.
+LI Wang
+ZHANG Jie
+4/5
+1/1
+2/2
+8/8
+3/3
+8/8
+3/3
+The main responsibilities of the Finance and Internal Control Supervision Committee are as follows: to formulate
+and carry out the work and implementation plans of the Finance and Internal Control Supervision Committee
+upon approval of the Board of Supervisors; to supervise the implementation of the strategic plan for development
+of, the policies and basic management system of the County Area Banking Business of the Bank and evaluate the
+implementation effectiveness and provide recommendation in respect thereof to the Board of Supervisors; to oversee
+and inspect the financial and accounting reports, operation reports and profit distribution proposals formulated by
+the Board of Directors and provide recommendations in respect thereof to the Board of Supervisors; to formulate and
+implement the plans of the Board of Supervisors to supervise and inspect the financial activities, business decisions,
+risk management and internal control of the Bank upon the approval of the Board of Supervisors; to recommend to
+the Board of Supervisors for engagement of an external auditing firm to perform audits on the Bank when necessary;
+to guide the work of the internal audit department; to review and handle the relevant matters or documents or
+information reported or provided by the Board of Directors, senior management or any of their members; and to
+supervise the compliance of the appointment, dismissal and reappointment of external auditing firms and the fairness
+of the terms of engagement and remunerations, as well as independence and effectiveness of external audits, and
+make suggestions to the Board of Supervisors; and to perform other duties as required by the laws, administrative
+regulations and departmental rules, or as authorized by the Board of Supervisors. At the end of the reporting period,
+the Finance and Internal Control Supervision Committee comprised five Supervisors, namely Mr. WANG Jingdong,
+Mr. FAN Jianqiang, Mr. SHAO Lihong, Ms. LIU Hongxia and Mr. XU Xianglin. The Finance and Internal Control
+Supervision Committee was chaired by Ms. LIU Hongxia.
+3/4
+1.
+Attendance in person includes attendance on site and attendance by way of electronic communication such as
+telephone and video conference. During the reporting period, the Supervisors who did not attend the meetings of
+the Board of Supervisors or special committees in person thereof had designated other Supervisors as proxies to
+attend and to vote on their behalf at the meetings.
+The main responsibilities of the Due Diligence Supervision Committee are as follows: to formulate and carry out the
+implementation plans for supervising due diligence of the Board of Directors, senior management and their members
+upon approval of the Board of Supervisors; to submit a review report on due diligence of the Board of Directors,
+senior management and their members and to provide advice in respect thereof to the Board of Supervisors; to
+formulate the audit report of any resigning director and senior management member, if so required, and make
+suggestions to the Board of Supervisors; to provide recommendations on the candidates of supervisors representing
+shareholders, external supervisors, independent non-executive directors and members of each special committee to
+the Board of Supervisors; to formulate the assessment plan, organize the performance evaluation of supervisors, and
+provide recommendations in respect thereof to the Board of Supervisors; to make proposals on the compensation and
+allowance distribution plan for supervisors and submit the plan to the Board of Supervisors for approval; to review
+and handle the relevant matters, documents and information reported or provided by the Board of Directors, senior
+management or any of their members; and to perform other duties as required by the laws, administrative regulations
+and departmental rules, or as authorized by the Board of Supervisors. At the end of the reporting period, the Due
+Diligence Supervision Committee comprised six Supervisors, namely Mr. WANG Jingdong, Mr. FAN Jianqiang, Mr. WU
+Gang, Mr. HUANG Tao, Mr. XU Xianglin and Mr. WANG Xixin. The Due Diligence Supervision Committee was chaired
+by Mr. XU Xianglin.
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Corporate Governance Report
+Meetings of the Due Diligence Supervision Committee
+Number of Meetings
+5
+Reviewing Proposals or Listening to Reports
+Note:
+XIA Taili
+The Bank has formulated the related party transactions management systems, including the Measures for Related
+Party Transactions Management of Agricultural Bank of China Limited and Implementation Measures for Related
+Party Transactions Management of Agricultural Bank of China, as well as intra-group transactions management
+systems, including the Measures for Intra-group Transactions Management of Agricultural Bank of China and
+Operating Rules for intra-group Transactions Limit Management of Agricultural Bank of China (Provisional), which
+standardized the related party transactions and intra-group transactions management of the Bank.
+The Shareholders' General Meeting and the Board of Directors of the Bank shall supervise and manage the related
+party transactions of the Bank. The responsibilities of the Related Party Transactions Management Committee under
+the Board of Directors are to manage the related party transactions of the Bank; identify our related parties; review,
+approve or maintain fillings of the related party transactions of the Bank within its scope of duties and authorities.
+Role and Responsibilities of the Chief Risk Officer
+The Chief Risk Officer of the Bank is to lead the construction of a comprehensive risk management system and the
+implementation of the Basel Capital Accord, coordinate the establishment of the Bank's organizational structure for
+risk management, supervise the implementation of the risk management strategies and risk appetite, review major
+risk management policies and rules, promote the establishment and improvement of risk management information
+system and a data quality control mechanism, and lead the reporting of the Bank's overall risk management to the
+Board of Directors and its special committees.
+Management and Status of Various Risks
+Please refer to "Discussion and Analysis - Risk Management".
+Annual Report 2021 147
+148
+Corporate Governance Report
+Level of the Board of Directors
+and the Board of Supervisors
+Risk Management Structure of the Bank
+Based on the principle of "overall coverage", we established the "matrix" risk management organizational system
+and the "Three Lines of Defense" for risk management comprising the risk bearing departments, risk management
+departments and internal audit departments. In 2021, we further promoted the integrated risk management of
+the parent company and the subsidiaries as well as of the domestic and overseas institutions, and optimized the
+management framework of credit risk, market risk and operational risk.
+Board of Directors
+Head Office Level
+Risk Management
+and Consumers'
+Interests Protection
+Committee
+Risk Management
+Committee of Institutions in
+the United States Regions
+Audit and Compliance
+Committee
+President
+Chief Risk Officer
+Risk Management
+and
+Internal Control
+Committee
+Credit Risk
+Management
+• Credit Management Department
+Board of Supervisors
+Procedures and entities in charge to review and approve related party transactions and intra-group
+transactions
+The Board of Supervisors is responsible for risk management supervision. It supervises and inspects on due diligence
+of the Board of Directors and the senior management in risk management and urges them to make rectifications.
+It includes relevant supervision and inspection information into the work report of the Board of Supervisors and
+regularly reports to the shareholders' general meeting.
+The Board of Directors assumes the ultimate responsibility for risk management. The Risk Management and
+Consumers' Interests Protection Committee, the Audit and Compliance Committee and the Risk Management
+Committee of Institutions in the United States Regions under the Board of Directors perform the relevant risk
+management functions, review the key risk management issues and supervise and evaluate the establishment of risk
+management system and the risk condition of the Bank.
+The related party transactions of the Bank shall be approved in accordance with its business authorization, while
+the material related party transactions are subject to the approval of the Board of Directors.
+The related party transactions between the Bank and a related party with a single transaction volume amounting
+to more than 30 million (inclusive) and representing more than 5% (inclusive) of the absolute value of the Bank's
+latest audited net asset, and the related party transactions with non-commercial banking guarantees provided to
+the related parties shall be submitted to the Shareholders' General Meeting for approval after being reviewed and
+approved by the Board of Directors.
+The Bank implements annual cap management over its intra-group transactions and approves the intra-group
+transactions in accordance with its business authorization. The general intra-group transactions exceeding the limit
+and the material intra-group transactions are subject to the approval of the President and the Board of Directors,
+respectively.
+Annual Report 2021 145
+146
+Corporate Governance Report
+Details of the Related Party Transactions
+In 2021, we implemented the regulation and management of the related party transactions strictly in compliance
+with the regulatory requirements of the CBIRC and the securities laws of the PRC and the listing rules of Shanghai
+and Hong Kong. During the reporting period, our related party transactions were conducted on normal commercial
+terms and in accordance with the laws and regulations. Our pricing for interest rates followed fair business
+principles, and no impairment of the interests of the Bank or the minority shareholders was identified.
+In 2021, we conducted various related party transactions with connected persons (as defined in the Hong Kong
+Listing Rules) of the Bank in the ordinary course of business. Such transactions satisfied the applicable exemption
+conditions set out in Rule 14A.73 under the Hong Kong Listing Rules, and therefore were fully exempted from
+compliance with the requirements of shareholders' approval, annual review and all requirements in relation to
+disclosures.
+The senior management the organizer and executor of risk management of the Bank. Under the senior
+management, we have various risk management committees with different functions, including the Risk
+Management and Internal Control Committee, Credit Approval Committee, Asset and Liability Management
+Committee and Asset Disposal Committee. Among them, the Risk Management and Internal Control Committee
+is primarily responsible for organizing and coordinating risk and compliance management across the Bank,
+considering and approving material risk management and compliance management issues.
+For the related party transactions defined in accordance with the domestic laws and regulations as well as the
+accounting standards, please refer to "Note IV. 40 Related Party Transactions to the Consolidated Financial
+Statements".
+We have established a system of deferred payment, recall and deduction of performance salary. Where the senior
+management members and personnel in key positions violate laws and disciplines or are responsible for significant
+risk losses, we will deduct, recall and cease the payment of their performance salary and deferred remuneration
+for the corresponding period based on the severity. The establishment of the remuneration allocation as well as
+incentive and constraint mechanism enables us to balance the salary between current and future periods as well as
+between revenue and risks, ensuring the remuneration incentive matches the risk-adjusted performance.
+Risk Governance
+Risk Appetite
+Risk appetite is a term that refers to the levels and types of risks acceptable to and tolerable for the Bank as
+determined by the Board of Directors in order to achieve the strategic targets of the Bank, which depends on the
+expectations and constraints of our major stakeholders, external operating environment and actual conditions of
+the Bank.
+We adopt a prudent risk appetite, operate strictly in compliance with laws and regulations, and insist on
+maintaining a balance among capital, risks and gains, as well as consistency in security, profitability and liquidity.
+We are neither aggressive nor conservative in risk bearing. Through undertaking an appropriate level of risk and
+adopting proactive and effective management, we seek to achieve moderate returns and maintain sufficient
+risk provisions and capital adequacy to cover risk losses. The Bank continues to improve the comprehensive
+risk management system, proactively implement advanced approaches of capital management, and maintains
+good regulatory ratings and external ratings, to provide assurance for realizing our strategic objectives and
+business plans.
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Corporate Governance Report
+Risk Management Structure
+Incentive & Constraint Mechanism
+Former Supervisors
+==
+1/1
+The Board of Supervisors
+Corporate Governance Report
+The Articles of Association set out the procedures and methods of the nomination of Directors and have specific
+requirements for the appointment of Independent Non-executive Directors. Please refer to the Articles of
+Association including articles 138 and 148 therein for details. The Articles of Association are published on the
+websites of the Shanghai Stock Exchange, the Hong Kong Stock Exchange and the Bank. During the reporting
+period, the Bank elected its Directors in strict compliance with the Articles of Association. When nominating
+candidates of Directors, the Nomination and Remuneration Committee of the Board of Directors mainly takes
+into account their qualifications, compliance with laws, administrative regulations, rules and the Articles of
+Association, capability of diligent performance, understanding of our operation and management and willingness
+to accept supervision of their performance by the Board of Supervisors and the requirement of the diversity of the
+composition of the Board of Directors. Please refer to "Diversity of the Board of Directors" for the details of our
+policy on diversity of the composition of the Board of Directors. The quorum of the attendees of meeting of the
+Nomination and Remuneration Committee shall be more than two-thirds of all its members and any resolution at
+such meeting shall be passed by favorable votes from more than half of its members.
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+140
+1.
+Note:
+Reviewed two proposals relating to the basic risk
+management policies of the New York Branch;
+and listened to six reports including the report on
+the risk and compliance work of the New York
+Branch. Conducted anti-money laundering and
+sanctions compliance training, regularly reviewed
+the risks in relation to the businesses in the United
+States regions and made relevant advice and
+suggestions.
+As our supervisory organ, the Board of Supervisors is accountable to and shall report to the shareholders' general
+meeting. The Board of Supervisors is responsible for, among other things, supervising the performance of duties
+of the Board of Directors and the Senior Management, supervising the due diligence of the Directors and senior
+management members and questioning accordingly, urging the Directors and senior management members to rectify
+their acts which impair the Bank's benefits; proposing the dismissal of or initiating litigation against the Directors and
+senior management members who breach the laws, administrative rules, the Articles of Association or the resolution
+of the shareholders' general meeting; conducting audit on resigning the Directors and senior management members
+as necessary; formulating the compensation and allowance distribution plan for Supervisors and submitting the
+plan to the shareholders' general meeting for consideration; supervising the financial activities, business decisions,
+risk management and internal control of the Bank and guiding the work of internal audit department of the Bank;
+reviewing the financial information such as the financial reports, operation reports and profit distribution plans to
+be submitted by the Board of Directors to the shareholders' general meeting and engaging certified accountants
+and auditors to review such reports in the name of the Bank, if any problems are identified; supervising the
+implementation of the strategic plans, policies and basic management systems for the development of County Area
+Banking Business; submitting proposals to the shareholders' general meeting; nominating Supervisors Representing
+Shareholders, External Supervisors and Independent Directors; formulating amendments to the rules of procedures
+of the Board of Supervisors; supervising the compliance of the appointment, dismissal and reappointment of
+external auditing firms and the fairness of the terms of engagement and remuneration, as well as the independence
+and effectiveness of external audit work; performing other duties as required by applicable laws, administrative
+regulations, departmental rules and the Articles of Association or authorized by the shareholders' general meeting.
+Reviewing Proposals or Listening to Reports
+Review and approve the risk management policies
+in relation to the businesses in the United States
+regions and supervise its implementation, as well
+as review the issues identified in the internal
+and external inspection of institution in the
+United States regions and the report on relevant
+rectification, and other matters authorized by the
+Board of Directors. Responsibilities of the Risk
+Management Committee of Institutions in the
+United States Regions are concurrently assumed
+by the Risk Management and Consumers' Interests
+Protection Committee.
+Management
+Committee
+of Institutions
+in the United
+States
+Regions
+Risk
+Duties
+Special
+Committees
+Corporate Governance Report
+Annual Report 2021 139
+Reviewed 16 proposals relating to the
+comprehensive risk management report, overall
+risk management strategies, the key points for
+consumers' interests protection in 2021, the
+interest rate risk report of banking book, the
+basic system of operational risk management
+(revision); and listened to 13 reports relating to
+the risk analysis reports, the work for protecting
+customers' interests, the management of liquidity
+risk in 2020, the operation of IRB system and the
+validation of the advanced approach on capital
+management; and made relevant advice and
+suggestions on the control of risks, which include
+credit risk, market risk and operational risk, etc.
+Reviewed three proposals relating to the list of
+related parties, regularly listened to report on the
+related party transactions management, reviewed
+and approved the information of our related
+parties, and made relevant advice and suggestions
+on the enhancement of the management of our
+related parties and related party transactions.
+The Bank has separately disclosed the Annual
+Performance of the Audit and Compliance
+Committee, details of which was published on the
+website of the Shanghai Stock Exchange.
+Number of
+meetings
+Enhanced communication with our external
+auditors and the supervision on their work and
+listened to the reports of external auditors on
+the audit results, the annual audit plan and the
+management letter etc. During the preparation of
+the 2020 Annual Report, the members of the Audit
+and Compliance Committee conducted separate
+communication and discussion about the issues
+identified during audit with the external auditors.
+Composition of the Board of Supervisors
+Meetings of the Board of Supervisors
+Board of
+FAN Jianqiang
+Supervisor Representing Shareholders
+WANG Jingdong
+Supervisors
+Number of attendance in person'/number of meetings requiring attendance
+Attendance of Supervisors at Meetings
+Corporate Governance Report
+142
+Annual Report 2021 141
+At the end of the reporting period, the Board of Supervisors of the Bank consisted of eight Supervisors, including
+two Supervisors Representing Shareholders, namely Mr. WANG Jingdong and Mr. FAN Jianqiang, three Supervisors
+Representing Employees, namely Mr. SHAO Lihong, Mr. WU Gang and Mr. HUANG Tao, three External Supervisors,
+namely Ms. LIU Hongxia, Mr. XU Xianglin and Mr. WANG Xixin.
+Note: The Office of Board of Supervisors is the office to carry out regular tasks of the Board of Supervisors. It is responsible for
+arranging meetings of the Board of Supervisors and special committees thereof and preparing documents and minutes for
+those meetings, as well as conducting daily supervision and monitoring work according to the requirements of the Board
+of Supervisors.
+Listening to Reports
+Reviewing and Approving Proposals or
+11
+7
+Extraordinary meetings of the Board of Supervisors
+Total number of meetings
+4
+Regular meetings of the Board of Supervisors
+Details
+Item
+Reviewed 32 proposals including the 2020 social
+responsibility report, and listened to 39 reports
+including the report on the audit of consumers'
+interests protection work for 2021.
+Reviewed 14 proposals including 2021 audit
+project plan, 2020 annual report and its abstract,
+2020 internal control assessment report, listened
+to 11 reports including the 2020 Financial
+Statements and Internal Control Audit Work
+Report of ABC by PricewaterhouseCoopers,
+the 2020 anti-money laundering and sanction
+compliance work report, the 2020 audit report and
+the 2020 compliance risk management report.
+Reviewing Proposals or Listening to Reports
+Identify our related parties, review our basic 3
+management system for related party transactions,
+review and record the related party transactions,
+and make suggestions to the Board of Directors.
+3/4
+Supervisor Representing Employees
+SHAO Lihong
+10/11
+3/3
+WU Gang
+10/11
+4/5
+HUANG Tao
+5/5
+5/6
+External Supervisor
+LIU Hongxia
+XU Xianglin
+WANG Xixin
+10/11
+4/4
+3/3
+1/1
+2/3
+3/3
+9/11
+4/4
+4/4
+Review our strategic plan of risk management, 7
+the risk appetite, the material risk management
+policies, the risk management report and
+allocation plan of risk-weighted capital, review our
+strategies, policies and objectives of consumers'
+interests protection, continuously supervise the
+risk management system, supervise and evaluate
+our risk management and consumers' interests
+protection, and make suggestions to the Board of
+Directors.
+6
+Number of
+meetings
+Review our internal control and management
+policies, the material financial and accounting
+policies, the audit management basic system and
+regulations, the medium- and long-term audit
+plan and annual work plan, and make suggestions
+to the Board of Directors; as well as review and
+approve our general policy on prevention of cases
+of violations, and effectively review and supervise
+our prevention of cases of violations.
+Duties
+Related Party
+Transactions
+Management
+Committee
+Committee
+Interests
+Protection
+Consumers'
+and
+Risk
+Management
+Audit and
+Compliance
+Committee
+Committees
+Special
+Corporate Governance Report
+Due Diligence Internal Control
+Supervision
+Committee
+Finance and
+Supervision
+Committee
+11/11
+• Credit Approval Department
+• Risk Asset Disposal Department
+• Front Offices
+Special Committees under
+the Board of Supervisors
+Credit Approval
+Committee
+Supervisors
+Sub-branch Risk
+Management Department
+Sub-branch Management
+Tier-2 Branch Risk
+Management Department
+Tier-2 Branch Management
+Regional
+Audit Offices
+Risk
+Management
+Department/
+Risk Measure
+Center
+Audit Office
+Tier-1 Branch Management
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+Branch Level
+• Asset Management Department
+Tier-1 Branch Risk
+Management Department
+Management Department
+Asset Disposal
+Committee
+• Financial Market Department
+Asset and Liability
+Management
+Committee
+Operational Risk
+Management
+Liquidity Risk
+Management
+• Internal Control and Compliance
+Supervision Department
+(Anti-money Laundering Center)
+• Operational Management
+Department
+Market Risk
+Management
+• Human Resources Department
+• Technology and Product
+Management Bureau
+• Other Departments
+• Risk Management Department
+• Asset and Liability
+• Safety and Security Department
+1 KPMG Huazhen LLP is Recognized Public Interest Entity Auditor under Financial Reporting Council Ordinance in Hong Kong.
+KPMG is Registered Public Interest Entity Auditor under Financial Reporting Council Ordinance in Hong Kong.
+In 2021, a total fee of RMB91.0646 million was paid to KPMG by us for the Group's financial statements audit service,
+including RMB7.2852 million for the internal control audit service. In 2021, a total fee of RMB13.5604 million was paid
+to KPMG and its network member firms by us for providing the financial statement audit service to our subsidiaries and
+overseas branches. In 2021, a total fee of RMB1.2448 million was paid to KPMG and its network member firms by us for
+providing the non-audit professional services including bond issuance and tax advisory service.
+2
+The General Meeting of the Bank reviewed and approved the Proposal on Appointment of External Auditors
+for 2021 on 27 May 2021, and agreed to appoint KPMG as our 2021 accounting firms. KPMG Huazhen LLP
+is responsible for providing audit service for the consolidated financial statements of the Group prepared in
+accordance with CASS and for internal control, while KPMG is responsible for providing audit service for the
+consolidated financial statements of the Group prepared in accordance with IFRSs.
+In accordance with the Management Measures for Selection and Engagement of Accounting Firms in State-Owned
+Financial Institutions (Cai Jin [2020] No. 6) issued by the Ministry of Finance, as PricewaterhouseCoopers Zhong Tian
+LLP and PricewaterhouseCoopers reached the maximum service period of eight years after completing the annual
+audits for 2020, the external auditors of the Bank are required to change.
+Change of Auditors
+As approved by the 2020 Annual General Meeting of the Bank, we engaged KPMG as our 2021 accounting firm. 2021 is
+the first year KPMG provides audit service to the Bank.
+External Audit
+The external auditors reported to the Audit and Compliance Committee of the Board of Directors in compliance
+with the code of professional ethics related to independence in accordance with the requirements of
+Communication with Those Charged with Governance in the International Standards on Auditing and Chinese
+Certified Public Accountants Auditing Standards. In providing audit and non-audit services, the external auditors
+of the Bank followed the International Code of Ethics for Professional Accountants (including international
+independence standards), the Chinese Code of Professional Ethics for Certified Public Accountants, relevant
+regulatory requirements and KPMG's own strict independence policy to ensure their independence in both form
+and substance.
+Independence of External Auditors
+The external auditors regularly attended the meetings of the Audit and Compliance Committee of the Board of
+Directors to communicate the audit plans and major audit findings; put forward the management recommendations
+on the findings related to our internal control to optimize our business management and issued the management
+letters, and reported to the Audit and Compliance Committee of the Board of Directors as well as the Finance and
+Internal Control Supervision Committee of the Board of Supervisors; and independently verified and evaluated the
+implementations of the findings related to internal control and the management recommendations.
+The consolidated financial statements of the Group for 2021 prepared in accordance with CASS and IFRSS have
+been audited by KPMG Huazhen LLP¹ and KPMG² (collectively, the "KPMG"), respectively, in accordance with the
+China Standards on Auditing and International Standards on Auditing, on both of which the unqualified audit
+opinions were issued. The KPMG Huazhen LLP also implemented audit procedures and issued audit opinions on the
+effectiveness of the Group's internal control of consolidated financial statements.
+Information on External Auditors
+Corporate Governance Report
+154
+| 中国农业银行
+External Auditors' Engagement and Remuneration
+AGRICULTURAL BANK OF CHINA
+Contact details. If investors have any enquiries, or if shareholders have any aforesaid suggestions, enquiries or proposals,
+please contact:
+Communication with Shareholders
+E-mail:
+Fax:
+Tel:
+Address:
+The Team of Investor Relationship Management under the Office of the Board of Directors of Agricultural Bank of China
+Limited
+Annual Report 2021 153
+Other communication with investors. We continued to answer calls on the investors' hotline and reply the IR email to
+answer investors' enquiries.
+Capital market summits. We participated in nearly 20 capital market summits.
+Online Q&A. We replied to investors' enquiries on the Shanghai Securities E-platform regularly and actively participated in
+the event named the day of collective reception of investors of the listed companies in Beijing for 2021.
+Investor and analyst meetings. We organized nearly one hundred investor and analyst meetings in various forms
+including on-site meeting and teleconference, covering leading investment and research institutions in the market, at
+which hot topics in the market were communicated deeply.
+Results announcement press conferences. We convened two results announcement press conferences for 2020 annual
+results and 2021 interim results.
+Investor Relations
+We continued to strengthen the management of inside information and enhance the compliance awareness of the
+insiders. We also arranged annual self-examination on inside trading and carried out registration and filling for the
+insiders.
+During the reporting period, we had no rectification for any material accounting errors, no omission of material
+information and no amendment required for any preliminary results announcement.
+The Chairman of the Board of Directors of the Bank shall assume primary responsibility for the management
+of information disclosure affairs. The Secretary to the Board of Directors is responsible for the organizing and
+coordinating the information disclosure affairs. We have established an information disclosure policy system
+covering the basic system, administrative measures and operating instructions, complying with the regulatory
+requirements for listed companies. We continuously enhanced the ESG information disclosure, and laid stress on
+the strategy development and implementation as well as the business highlights, so as to respond to the market
+and investors' concerns effectively and improve our transparency of information disclosure. In 2021, the Bank
+disclosed 344 documents on the Shanghai Stock Exchange and the Hong Kong Stock Exchange in aggregate, and
+the assessment of our information disclosure by the Shanghai Stock Exchange was "A".
+Information Disclosure
+Corporate Governance Report
+Communication with Stakeholders
+During the reporting period, our audit department put forward the audit recommendations in the areas such
+as internal control and prevention of cases of violations, finance and accounting, credit, collection business
+and information technology management. Attaching great importance to the various audit findings and audit
+recommendations, we formulated the rectification measures in a timely manner, implemented the rectification
+requirements and audit recommendations, to ensure the problems found in the audit were effectively rectified.
+Senior Management
+During the reporting period, in accordance with the strategic decisions of the Board of Directors and the external
+regulatory requirements, based on the risk-oriented principles, we carried out the risk management audit with a
+focus on serving the real economy, serving Sannong, internal control and prevention of cases of violations, financial
+management, online credit, and collection business. We conducted specific audits on various aspects, including
+anti-money laundering, consumers' interests protection, information technology management, exemption from
+repayment of non-performing loans, consolidated management at group level, real estate loans, performance
+appraisal and remuneration management, operational risk, wealth management business, and outsourcing risk.
+The audit for overseas institutions was steadily promoted. We standardized the implementation of audit on
+responsibilities of Senior Management. We carried out practical supervision of the rectification of problems identified
+during our internal audit. We continuously promoted the digital transformation of audit, intensified off-site
+monitoring efforts and strengthened audit skill trainings to effectively facilitate the implementation of strategic
+decisions, the improvement of our basics of management and the steady growth of business across the Bank.
+Role of Audit and Compliance Committee of the Board of Directors
+Internal Supervision
+Board of
+—
+Operation of Corporate Governance
+Corporate Governance Report
+Annual Report 2021 151
+The Finance and Internal Control Supervision Committee of the Bank's Board of Supervisors is responsible for
+drawing up a work plan and a implementation plan for the finance and internal control supervision of the Board of
+Supervisors, submitting the plans to the Board of Supervisors and organizing the implementation after approval by
+the Board of Supervisors; supervising and inspecting the Bank's financial statements and making recommendations
+to the Board of Supervisors; drawing up the plans for supervision and inspection of the Bank's financial activities
+and internal control of the Board of Supervisors, submitting the plans to the Board of Supervisors and organizing
+the implementation after approval by the Board of Supervisors.
+The Audit and Compliance Committee of the Board of Directors of the Bank is responsible for reviewing the
+Bank's major financial and accounting policies and their implementation, and supervising the financial operations;
+supervising and assessing the Bank's internal audit and the Bank's internal audit system and its implementation;
+supervising and assessing the accounting firm's annual audit plan, its scope of work and important audit rules;
+making judgmental reports on the truthfulness, completeness and accuracy of the information in the audited
+financial statements of the Bank and submitting them to the Board of Directors for consideration.
+The financial statements of the Bank are prepared by the management, signed by the legal representative, the
+president in charge of accounting and the head of the accounting department, and approved by the Board of
+Directors for external submission or disclosure.
+We follow the principles of all-sidedness, priority, balancing, adaptability and cost-effectiveness to establish and
+implement internal control over financial statements in accordance with the requirements of the Basic Internal
+Control Norms for Enterprises issued by the MOF.
+Internal Control on Financial Statements
+Our internal supervision and assessment were improved. We revised the Internal Control Assessment Method to
+make internal control assessment more pertinent and forward-looking. Focusing on issues such as private lending,
+auto installment, and misappropriation of funds from corporate accounts, we innovated risk monitoring ideas and
+promoted risk management in key areas. We highlighted key elements of credit business such as online credit, trading
+background, collateral management and use of loan funds, to increase screening efforts. The indiscriminate charges
+in areas such as inclusive loans for small and micro enterprises were strictly investigated. The rectification of our
+problems identified during key internal and external inspections was fully promoted. Our accountability management
+mechanism was reconstructed and our responsibility determination mechanism covering all risks was built.
+Smooth information and communication sharing was maintained. We explored the establishment of the integrated
+and digitalized internal control to build an intensive, shared and intelligent management mechanism that adapts to
+the development of the new era. We upgraded the information systems for internal control and compliance as well
+as for operational risk management, by strengthening the docking among systems, to gradually solve the problems
+of disconnection among the systems and isolation of data and information.
+The control actions were taken efficiently. Within the scope of authorization by the Board of Directors,
+authority was properly delegated or sub-delegated to all levels. We implemented classified management for
+domestic branches and strengthened differentiated authorization. We revised Management Measures on
+Inspections and formulated Management Measures on External Inspection Matters to improve our compliance
+supervision mechanism. We solidly promote the Sharp Arrow Plan, by deepening analysis on and review as
+well as deconstruction of cases and carrying out special actions to clear cases of violations in a centralized
+manner. We optimized the "three lines and one grid" management model to strengthen the responsibilities by
+grid management. We formulated Rules on Duty Separation for Incompatible Positions to improve the internal
+control mechanism for operational risk. We strengthened the management of the list for related parties and
+daily monitoring and inspection on the related party transactions. We reinforced the management of intra-group
+trading limit to consolidate the firewall against intra-group trading risk. We deepened the compliance management
+for overseas institutions and subsidiaries that we carried out special off-site evaluation of overseas institutions,
+standardized the contents of the internal control and compliance information reports of our subsidiaries, and
+improved the accuracy of tracking and monitoring.
+Corporate Governance Report
+AGRICULTURAL BANK OF CHINA
+For details, please refer to "Corporate Governance Report
+Directors".
+Audit Recommendations
+Role of the Board of Supervisors
+Internal Audit
+Operation of Internal Audit
+Corporate Governance Report
+AGRICULTURAL BANK OF CHINA
+|中国农业银行
+152
+Guangzhou Chengdu Kunming Xi'an
+Office Office Office Office
+Wuhan
+Office
+Zhengzhou
+Office
+Affiliated Shenyang Shanghai Jinan
+Office Office
+Office Office
+Board of Supervisors
+Audit Office
+No. 69, Jianguomen Nei Avenue, Dongcheng District, Beijing, China
+86-10-85109619
+Audit and
+Compliance Committee
+Board of Directors
+The chart of organizational structure of internal audit of the Bank
+We have established an audit department that is accountable to and shall report to the Board of Directors and its
+Audit and Compliance Committee. The audit department is under the guidance of and shall report the audit results
+to the Board of Supervisors and the Senior Management. It conducts the audits and evaluations of management,
+business practices, and business performance across the Bank based on the risk-oriented principles. It consists of
+the Audit Office at the Head Office and ten regional offices. The Audit Office is responsible for the organization,
+management and reporting of audit works across the Bank. The regional offices under the Audit Office are
+responsible for internal audit of their respective branches, and shall be accountable to and report to the Audit
+Office. Besides, audit divisions are established in the tier-1 branches excluding those in which the ten Regional
+Audit Offices station, while independent internal audit functions are instituted in the overseas operation institutions
+and the subsidiaries of integrated operations.
+Structure of Internal Audit
+For details, please refer to "Report of the Board of Supervisors".
+86-10-85126571
+We fully complied with all the principles and code provisions, and almost all the recommended best practices of the
+Corporate Governance Code set out in Appendix 14 to the Hong Kong Listing Rules during the reporting period.
+Annual Report 2021 155
+Related Party
+Transactions
+Management
+Committee
+Audit and
+Compliance
+Committee
+Risk Management and
+Internal Control Committee
+Internal Control and Compliance
+Supervision Dept. (including
+Anti-money Laundering Centre)
+Tier-1 Branch Internal Control
+and Compliance Dept. (including
+Anti-money Laundering Centre)
+Tier-2 Branch Internal
+Control and Compliance Dept.
+Risk Management
+Committee of
+Institutions in
+the United States
+Regions
+Tier-2 Branch Management
+Sub-branch Compliance Position
+IH
+Branch Level
+Tier-1 Branch Management
+Internal Control Activities
+Implementation of Internal Control
+Our internal control environment was optimized. We initiated campaigns the Year of Internal Control Compliance
+Management and the Year of System Compliance Management. We made self-inspection according to the
+regulatory requirements, fixed problems repeatedly occurred and improved the system of rules and regulations, to
+continuously build a long-term mechanism for our internal control compliance management. We issued the Basic
+Compliance Management System to clarify the fundamental requirements of compliance management and ensure
+compliant and sound operation of the Bank.
+Sub-branch Management
+Interests
+Protection
+Committee
+Risk Management
+and Consumers'
+Board of Supervisors
+150
+Internal Control
+Internal Control Environment
+Corporate Governance Report
+Responsible Body and Department
+The Board of Directors of the Bank is responsible for establishing a sound internal control system, effectively
+implementing the internal control, evaluating its effectiveness, and disclosing the internal control assessment
+report. The Audit and Compliance Committee, the Risk Management and Consumers' Interests Protection
+Committee, the Risk Management Committee of Institutions in the United States Regions, and the Related Party
+Transactions Management Committee established under the Board of Directors are responsible for performing
+the corresponding duties related to internal control management. The Senior Management is responsible for the
+daily operation of internal control. The Board of Supervisors supervises the establishment and implementation of
+internal control by the Board of Directors and the Senior Management. Under the vertical management, the Bank
+established the internal Audit Office and regional internal audit offices to perform the responsibilities of audit
+supervision over internal control and are responsible for and report to the Board of Directors and its Audit and
+Compliance Committee. There are internal control and compliance supervision departments at the Head Office and
+all branch levels, which are responsible for organising, promoting and coordinating internal control of the Bank.
+Objectives of Internal Control Management
+The objectives of our internal control are to reasonably ensure our legal and compliant operation and management,
+make the financial reports and related information truthful and complete, ensure effective risk management and
+asset security, improve the efficiency and effectiveness of our operation, and facilitate the fulfilment of our business
+goals and development strategies.
+Internal Control Evaluation
+The Board of Directors has considered and approved the 2021 Internal Control Assessment Report of ABC, details
+of which are published on the website of the Shanghai Stock Exchange.
+KPMG Huazhen LLP issued an unqualified Internal Control Audit Report based on its audit of the effectiveness
+of the Group's internal control over financial reporting as of 31 December 2021 in accordance with the relevant
+regulations, details of which are published on the website of the Shanghai Stock Exchange.
+Annual Report 2021 149
+Corporate Governance Report
+Internal Control Management Structure of the Bank
+Level of Board of
+Directors and Board
+of Supervisors
+Board of Directors
+Head Office Level
+Senior Management
+Our capabilities to identify and evaluate risks were enhanced. We optimized the platform for preventing,
+monitoring and early warning on cases of violations, that we could effectively use risk monitoring models to
+strengthen early warning and monitoring, and promptly carry out clue verification. We also promoted the
+development of an intelligent anti-fraud platform to strengthen the management of fraud risk in businesses and
+transactions from the source. We deepened the establishment of a new generation of the anti-money laundering
+platform to strengthen our management of money laundering risk and sanctions risk.
+ir@abchina.com
+AGRICULTURAL BANK OF CHINA
+158
+156
+During the reporting period, in line with the requirements of the CSRC, we combed through our corporate
+governance for 2018, 2019 and 2020, completed corporate governance self-check and submitted the Corporate
+Governance Self-check List for Listed Companies.
+During the reporting period, in line with the requirements of the CBIRC, we conducted a comprehensive and
+detailed self-evaluation of our corporate governance system and its constructions through 162 indicators of
+eight aspects, such as leadership of the Party, governance of shareholders, governance of the Board of Directors,
+governance of the Board of Supervisors and the Senior Management, internal control on risks, governance of
+related party transactions, market constraints and governance of other stakeholders, and we also received a
+regulatory evaluation from the CBIRC.
+Evaluation of Corporate Governance
+The Board of Directors actively performed its corporate governance duties, continuously refined the relevant
+systems for corporate governance, and continuously evaluated and improved our corporate governance. The
+special committees under the Board of Directors performed their duties strictly in accordance with the applicable
+requirements of corporate governance.
+Corporate Governance Code
+Other Information on Corporate Governance
+| 中国农业银行
+For details, please see "Corporate Governance Report - External Audit".
+We applied the lawyer witness system for the shareholders' general meetings, for which lawyers have issued their
+legal opinions. The lawyers put forward compliance suggestions on our information disclosure documents and
+important issues in relation to corporate governance.
+Communication with Lawyers
+For details, please see the 2021 Corporate Social Responsibility Report (ESG Report) of the Bank published
+separately.
+Communication with Employees, Communities, Suppliers and Other Stakeholders
+For details, please see "Discussion and Analysis — Business Review".
+Communication with Customers
+Corporate Governance Report
+Communication with External Auditors
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Significant Changes to the Articles of Association
+There is no mandatory provision in relation to pre-emptive rights in the Articles of Association. According to
+the Articles of Association, we are entitled to increase the registered capital by issuing shares through public or
+non-public offering, allotting new shares to the existing shareholders (except holders of our preference shares),
+transferring the capital reserve funds to increase share capital and through other methods as permitted by laws,
+administrative regulations and relevant authorities.
+Pre-emptive Rights
+For the year ended 31 December 2021, neither the Bank nor its subsidiaries purchased, sold or redeemed any of its
+listed shares.
+Purchase, Sale or Redemption of the Bank's Shares
+At 31 December 2021, our total share capital of ordinary shares amounted to 349,983,033,873 shares, including
+319,244,210,777 A Shares and 30,738,823,096 H Shares. At the date of this annual report, we maintained
+sufficient public float in compliance with the minimum requirement of the Hong Kong Listing Rules and the waiver
+granted by the Hong Kong Stock Exchange upon our listing.
+Share Capital and Public Float
+For the year ended 31 December 2021, the interest income and other operating income from the five largest customers
+of the Bank accounted for no more than 30% of the interest income and other operating income of the Bank.
+Corporate Governance Report
+_
+In particular, please refer to "Business Review" and "Risk Management" under "Discussion and Analysis" and
+"Risk Governance" under "Corporate Governance Report" for our business review, discussion and analysis of the
+performance for the reporting year, principal risks and uncertainties faced by us and future business development.
+Please refer to "Discussion and Analysis Financial Statement Analysis" for the analysis of the financial key
+performance indicators. Please refer to "Information on Environmental, Social and Corporate Governance" for the
+environmental and social performance and policies of the Bank. Please refer to "Discussion and Analysis - Risk
+Management" and "Corporate Governance Report · Internal Control" for the compliance with the relevant laws
+and regulations that would have a significant impact on the Bank. Please refer to "Business Review — Human
+Resources Management and Institution Management", "Information on Environmental, Social and Corporate
+Governance" and "Communication with Stakeholders" under "Corporate Governance Report" for the Bank's
+relationships with its employees, clients and shareholders.
+Our principal business is to provide banking and related financial services. Details of our business operations and
+business review as required by Schedule 5 to the Companies Ordinance of Hong Kong are set out in relevant
+sections including "Discussion and Analysis", "Information on Environmental, Social and Corporate Governance",
+"Corporate Governance Report", "Significant Events", "Notes to the Consolidated Financial Statements" and this
+"Report of the Board of Directors".
+Principal Business and Business Review
+Report of the Board of Directors
+Annual Report 2021 157
+The Bank has adopted a code of conduct for securities transactions by Directors and Supervisors with terms
+no less strictly than those set out in the Model Code for Securities Transactions by Directors of Listed Issuers in
+Appendix 10 to the Hong Kong Listing Rules. The Directors and Supervisors of the Bank have confirmed that they
+have complied with such code of conduct throughout the year ended 31 December 2021.
+Securities Transactions by Directors and Supervisors
+There was no significant change to our Articles of Association during the reporting period.
+Major Customers
+|中国农业银行
+Annual Report 2021 161
+The Directors had no relationship (including financial, business, familial or other material relationships) with each
+other.
+Note: In compliance with the Notice of the State Council on Printing and Distributing the Implementation Plan of Transferring
+Part of State-owned Capital to Replenish Social Security Funds (Guo Fa [2017] No. 49), the SSF shall be obligated to
+observe a lock-up period not less than three years from the date on which the shares are credited to the account. At
+31 December 2021, the SSF strictly fulfilled the above commitment, and there was no violation of the commitment.
+During the reporting period, the Bank conscientiously implemented the relevant policies and measures on
+information disclosure, performed the duties of the information disclosure and disclosed the information in a true,
+accurate and complete manner, without any false report, misleading statement or material omission.
+Annual Report 2021 165
+166
+Report of the Board of Supervisors
+County Area Banking Business
+During the reporting period, the Bank's County Area Banking Division operated in compliance with the external
+regulatory requirements.
+Asset Acquisition and Disposal
+During the reporting period, the Board of Supervisors did not find any insider trading or any act which might result
+in the impairment of the interests of the shareholders or loss of our assets in the process of asset acquisition or
+disposal by the Bank.
+Related Party Transactions
+Internal Control
+The Board of Supervisors had no objection to the conclusion of the 2021 Internal Control Assessment Report of
+Agricultural Bank of China Limited.
+Due Diligence Evaluation of Directors, Supervisors and Senior Management Members
+The annual due diligence evaluation results of the Directors, Supervisors and senior management members are
+competent.
+Saved as disclosed above, the Board of Supervisors had no objection to other matters subject to its supervision
+during the reporting period.
+| 中国农业银行
+Information Disclosure
+AGRICULTURAL BANK OF CHINA
+The preparation and review procedures of this annual report are in compliance with laws, administrative regulations
+and regulatory requirements. The annual report gives a true, accurate and complete view of the consolidated
+financial position and operating results of the Group.
+During the reporting period, the Bank strictly adhered to operation compliance in accordance with applicable laws
+and regulations, and continued to optimize the internal control system. The Directors and the senior management
+members performed their duties diligently. The Board of Supervisors did not find any act by the Directors and the
+senior management members in performing their duties that might breach the laws, regulations and the Articles of
+Association or impair the interests of the Bank.
+Report of the Board of Supervisors
+Work of the Board of Supervisors
+In 2021, the Board of Supervisors of Agricultural Bank of China implemented the financial regulatory requirements
+and corporate governance regulations, conscientiously fulfilled its supervisory duties, innovated supervisory methods
+and improved its supervisory mechanism. The enhancement of supervisory quality and effectiveness exerted the
+important role of the Board of Supervisors in corporate governance so as to promote the Bank's operation and
+development in accordance with the laws and regulations.
+The Board of Supervisors closely focused on the decisions and plans of the CPC Central Committee and the State
+Council and carried out in-depth supervision. The Board of Supervisors monitored the implementation of rural
+revitalization strategy of the Bank, paid close attention to the implementation results of business development
+planning, policies and measures, and the basic management systems of Sannong, and conducted special
+investigations, supervisions and evaluations on the efforts serving Sannong, so as to promote financial services for
+national food security and improve the quality and efficiency of serving Sannong. The Board of Supervisors monitored
+the Bank's supports for high-quality development of the real economy, paid attention to the concrete effectiveness of
+implementing the decisions and plans of the CPC Central Committee and the State Council on serving for ensuring
+stability on six key fronts and maintaining security in six key areas and inclusive finance, conducted surveys and
+studies in some branches, visited scientific and technological innovation enterprises, and made suggestions and
+recommendations to promote the improvement of financial services in key areas such as manufacturing, scientific
+and technological innovation, and small and micro enterprises. It also monitored the Bank's efforts on preventing and
+mitigating financial risks, for which it monitored and analyzed credit risks of key regions, industries, products and
+customers, listened to reports on real estate related credit business, and investigated the collateral management and
+formulated the Proposals of the Board of Supervisors, so as to facilitate risk prevention and control in key areas.
+The Board of Supervisors put forward suggestions and recommendations focusing on key issues in the Bank's
+business development. It fulfilled its supervisory duties on the management of consolidated statements, carried out
+in-depth research on the development and reform of integrated operations subsidiaries and formulated the Proposals
+of the Board of Supervisors to promote the improvement of its subsidiaries' quality of development. The Board of
+Supervisors paid attention to the quality of development of the Bank's deposit business, measures on enhancing
+the competitiveness of deposit business and their results, improvement and implementation of complementary
+mechanisms for deposit business, etc., to promote and strengthen the management for quality of development of
+deposit business. It paid attention to capital management and put forward suggestions and recommendations to
+promote strengthening the foundation of capital management, implement capital saving measures and improve
+capital management efficiency. It implemented the relevant regulatory requirements of the PBOC and the CBIRC on
+consumer' interests protection, and strengthened its attention and supervision on consumers' interests protection
+work, carried out investigation and analysis and formulated the Proposals of the Board of Supervisors, to facilitate the
+improvement of customer service mechanism. The Board of Supervisors paid attention to the audit work carried out
+by the National Audit Office on the Bank's economic responsibility and the supervision opinions from the PBOC and
+the CBIRC on the Bank, analyzed the problems found in internal and external inspections and regulatory penalties,
+followed up and supervised the rectification implementation so as to facilitate the improvement in the quality of the
+rectification.
+The Board of Supervisors solidly carried out regular supervision work and played its functional role. It carried out
+supervision on duty performance, completed annual due diligence evaluation, implemented daily supervision,
+strengthened system construction, and enriched the information carrier for recording supervision to further improve
+the scientificity and standardability of due diligence evaluation. It carried out financial and operational supervision,
+for the purpose of which it monitored the important financial decision-making of the Board of Directors and senior
+management and their implementation, kept abreast of the problems existing in the Bank's financial affairs as well
+as its operation and management, and reviewed the regular reports, profit distribution plans, etc. in accordance
+with the laws, to promote the compliance operation of finance. The Board of Supervisors carried out supervision
+on internal control and prevention of cases of violations, continued to pay attention to the Bank's internal control
+construction, anti-money laundering and anti-terrorist financing, compliance management of overseas institutions,
+and management of foreign exchange compliance, and regularly listened to the reports on relevant work and
+rectification status, to facilitate the improvement of internal control construction.
+164
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Report of the Board of Supervisors
+The Board of Supervisors continued to strengthen its own construction to improve its capability. It has improved the
+mechanism of transmitting and implementing supervision suggestions, including the timely delivery of supervision
+suggestions by the Board of Supervisors, the active cooperation by senior management, and building a closed-loop
+management mechanism including research and decomposition, rectification and implementation, evaluation and
+feedback, and continuous improvement of suggestions given by the Board of Supervisors, so as to efficiently ensure
+the implementation and effectiveness of supervision opinions. It expanded and enriched the forms of meeting,
+including listening to relevant work reports in the form of special sessions of the Board of Supervisors, and promoting
+supervision work at multiple levels. The Board of Supervisors did a good job in the reappointment, selection and
+election of supervisors upon term expiration, which enriched the professional composition of the Board of Supervisors.
+It strengthened the self-learning and training for supervisors, which improved the ability of supervisors to perform
+their duties. The Board of Supervisors strengthened the tracking and guidance to its office and enhanced its office's
+work planning and effectiveness, as well as roles of monitoring, analysis and performance supports.
+Annual Due Diligence Evaluation of Directors, Supervisors and Senior
+Management Members by the Board of Supervisors
+In accordance with regulatory requirements, the Board of Supervisors formulated the Measures on Performance
+Evaluation for Directors, Supervisors and Senior Management (Trial), to further regulate the performance of Directors,
+Supervisors and senior management, and strengthen the performance supervision and evaluation responsibilities of
+the Board of Supervisors. It improved the performance record and the information carrier for recording performance
+supervision, by formulating the Record Management Regulations on Performance of Supervisors for this purpose, and
+compiling regular dynamics with respect to performance supervision, to further consolidate the basis for supervision
+and evaluation. It also carried out multi-level performance interviews, collected performance information from
+different sources, organized self-evaluation and mutual evaluation for Directors and Supervisors, and conducted the
+evaluation on Supervisors for the first time, completing due diligence evaluation of the Board of Directors, the Board of
+Supervisors and the Senior Management and their members in 2021.
+Independent Opinions of the Board of Supervisors
+Operation Compliance
+Annual Report
+By Order of the Board of Supervisors
+788
+WANG Jingdong
+performed
+Annual Report 2021 167
+Significant Events
+Material Litigations and Arbitrations
+During the reporting period, there was no litigation or arbitration with material impact on our operations.
+At 31 December 2021, the value of the claims of the pending litigation or arbitration in which the Bank
+was involved as a defendant, a respondent or a third party amounted to approximately RMB3.5 billion. The
+management believes that the Bank has made full provision for potential losses arising from the aforesaid litigation
+or arbitration, and they will not have any material adverse effect on our financial position or operating results.
+Material Equity Investments and Material Non-equity Investments in Progress
+In July 2018, we entered into the Promoters' Agreement on National Financing Guarantee Fund Co., Ltd., pursuant
+to which, we shall invest RMB3 billion in National Financing Guarantee Fund Co., Ltd., which shall be paid up
+annually in four years from 2018. In November 2018, June 2019, April 2020 and May 2021, we completed the
+first, second, third and fourth contributions with RMBO.75 billion each, respectively.
+In July 2020, we entered into the Promoters' Agreement on the National Green Development Fund Co., Ltd.,
+pursuant to which, we shall invest in the National Green Development Fund Co., Ltd. In April 2021, we received
+the Approval of the CBIRC on Agricultural Bank's Participation in the Establishment of National Green Development
+Fund Co., Ltd. (Yin Bao Jian Fu [2021] No. 321), and were approved investing in National Green Development
+Fund Co., Ltd. We shall invest RMB8 billion in the National Green Development Fund, which will be paid in five
+instalments. In May 2021, we paid for the first instalment in the amount of RMB0.8 billion.
+In December 2020, the Board of Directors of the Bank considered and approved to increase the share capital of
+ABC Financial Asset Investment Co., Ltd. (a subsidiary of the Bank) by RMB10 billion. Upon CBIRC's approval in
+January 2021, the Bank has completed this capital increase.
+Please refer to our relevant announcements published on the websites of the Shanghai Stock Exchange
+(www.sse.com.cn) and the Hong Kong Stock Exchange (www.hkexnews.hk) for details.
+During the reporting period, saved as disclosed above, we did not have any other material equity and non-equity
+investment.
+168
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+and duly
+(4) Huijin, as a state-owned investment vehicle established by the PRC
+government to invest in financial/banking industry, will treat its
+investments in commercial banks on an equal footing, and will not
+confer upon any commercial banks any governmental approval,
+authorization or license to operate commercial banking activities or
+any business opportunities it obtains or may obtain, nor will it take
+advantage of its status as a holder of our shares or the information
+obtained by virtue of such status to make decisions or judgments
+against us or in favor of other commercial banks, and will avoid such
+circumstances' arising. It will exercise its shareholder's rights in our
+maximum or best interests as if we were its sole investment in a
+commercial bank, and will exercise its commercial judgment as our
+shareholder to maximize our best interests, and such judgment shall not
+be affected by its investments in other commercial banks.
+(3) Notwithstanding the above provisions (1) and (2), Huijin, as a state-
+owned investment vehicle established by the PRC government to
+invest in financial/banking industry, may through its investments in
+other companies and in any form (including but not limited to its
+wholly-owned entities, joint ventures, contractual joint ventures, or
+through its direct or indirect ownership of shares or other interests in
+such companies), operate or participate in any competing commercial
+banking activities in China or abroad.
+If Huijin obtains any governmental approval, authorization or license
+to operate commercial banking activities directly, or obtains any other
+opportunities to operate commercial banking activities, Huijin will
+immediately relinquish such approval, authorization or license, and will
+not operate any commercial banking activities.
+Chairman of the Board of Supervisors
+30 March 2022
+Commitments
+Significant Events
+Subject of
+Commitment
+Commitments Details of commitment
+Huijin
+Annual Report 2021 163
+Non-competition (1)
+commitment
+Date of
+commitment
+Due date of
+commitment
+Performance
+up to date
+Valid for
+long time
+Continuous
+commitment
+So long as Huijin continues to hold any of our shares or is deemed to 15 July 2010
+be a controlling shareholder or a connected person of a controlling
+shareholder or de facto controller of the Bank in accordance with the
+laws or listing rules of China or of the place where our shares are listed,
+it will not engage or participate in any competing commercial banking
+activities in China or abroad. If Huijin engages or participates in any
+competing commercial banking activities or activities which evolve
+into competing commercial banking activities in China or abroad, it
+will immediately cease to participate in, manage or engage in such
+competing commercial banking activities.
+(2)
+Chairman of the Board of Directors
+30 March 2022
+During the reporting period, the Board of Supervisors did not find any act in the related party transactions that
+might result in the impairment of the interests of the Bank.
+瓜澍
+Except for the service contracts with our management personnel, we have not entered into any contract with any
+person, company or legal entity to manage or handle the whole or any material part of its businesses.
+Management Contracts
+For details of employee benefit plans, please refer to "Note IV. 31 Other Liabilities (1) Staff costs payable to the
+Consolidated Financial Statements". Same as previous years, there was no forfeited contribution available to reduce
+the contribution payable by the Bank under the defined contribution schemes for 2021.
+Employee Benefit Plans
+Details of the changes of property and equipment for the year ended 31 December 2021 are set out in
+"Note IV. 21 Property and Equipment to the Consolidated Financial Statements".
+Property and Equipment
+During the year ended 31 December 2021, our external donations (domestic) amounted to RMB100.60 million.
+Donations
+Report of the Board of Directors
+Annual Report 2021 159
+Summary of operating results, assets and liabilities for the five years ended 31 December 2021 is set out in "Basic
+Corporate Information and Major Financial Indicators".
+Financial Summary
+Details of the changes of reserves for the year ended 31 December 2021 are set out in "Consolidated Statement of
+Changes in Equity" in the Consolidated Financial Statements.
+Particulars of Ordinary Shares"
+Reserves
+Directors' and Supervisors' Interests in Material Transactions, Arrangements or Contracts
+For the year ended 31 December 2021, none of our Directors or Supervisors or parties related to such Directors
+and Supervisors had any material interests, either directly or indirectly, in any material transaction, arrangement
+or contract regarding our business to which the Bank or any of its subsidiaries, the controlling shareholders of the
+Bank or any of their subsidiaries was a party. None of our Directors or Supervisors has entered into any service
+contract with the Bank or any of its subsidiaries, pursuant to which the Bank needs to pay compensation (other
+than statutory compensation) for terminating the contract within one year.
+Directors' Interests in Competing Businesses
+None of our Directors held any interests in any business that competes or is likely to compete, either directly or
+indirectly, with the business of the Bank.
+Financial, Business and Family Relationship among Directors
+During the reporting period, we have renewed the liability insurance for our Directors, Supervisors and senior
+management members.
+According to the Articles of Association, we will undertake the civil liability arising from the discharge of the
+duties of our Directors, Supervisors and senior management members to the largest extent permitted by, or unless
+prohibited by, the applicable laws and administrative regulations, except that such Directors, Supervisors and
+senior management members were proven to have failed to perform their duties honestly or in good faith. We
+have maintained liability insurance for potential liabilities that may arise from the indemnification clams against the
+misconducts of the Directors, Supervisors and senior management members.
+-
+Permitted Indemnity Provisions
+We have made specific rules on remuneration of the Directors, Supervisors and Senior management, and
+continuously improve performance assessment system and incentive & constraint mechanism of the Directors,
+Supervisors and Senior management. In the performance appraisal of the Senior Management by the Board of
+Directors, requirements such as supporting the real economy, developing green finance, preventing and controlling
+financial risks, deepening financial system reform, and performing social responsibility are included in the review
+assessment. The appraisal results will be the important basis for determining the annual performance salary of the
+Senior Management. The remuneration of Chairman of the Board of Directors, President, Chairman of the Board
+of Supervisors and other persons in charge shall be implemented in line with the relevant policy of the state on
+the remuneration reform of persons in charge of central enterprises. The remuneration consists of the annual
+basic salary, the annual performance salary and the tenure incentive income linked to the tenure assessment.
+The remuneration of the Senior Management shall be reviewed and approved by the Board of Directors and the
+remuneration of Directors and Supervisors shall be considered and approved by the Shareholders' General Meeting.
+For details of the remuneration standards, please refer to "Corporate Governance Report · Directors, Supervisors
+and Senior Management Remuneration of Directors, Supervisors and Senior Management". We did not
+formulate any share incentive plan for the Directors, Supervisors and senior management members.
+Remuneration of Directors, Supervisors and Senior Management
+Shareholding Structure
+_
+Interests in Shares, Underlying Shares and Debentures Held by Directors and Supervisors
+Report of the Board of Directors
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+160
+For the year ended 31 December 2021, the Bank did not grant any rights to acquire shares or debentures to any
+Directors or Supervisors, nor was any of such rights exercised by any Directors or Supervisors. Neither the Bank
+nor its subsidiaries entered into any agreements or arrangements enabling the Directors or Supervisors to obtain
+benefits by acquiring shares or debentures of the Bank or any other corporations.
+Rights of Directors and Supervisors to Acquire Shares or Debentures
+GU Shu
+Please refer to "Corporate Governance Report
+for details.
+None of the Directors or Supervisors of the Bank had any interests or short positions in the shares, underlying
+shares or debentures of the Bank or any of its associated corporations (as defined in Part XV of the Securities
+and Futures Ordinance of Hong Kong) which were required to be notified to the Bank and the Hong Kong Stock
+Exchange pursuant to Divisions 7 and 8 of Part XV of the Securities and Futures Ordinance of Hong Kong (including
+interests and short positions deemed to be owned by them under such provisions of the Securities and Futures
+Ordinance of Hong Kong), or any interests or short positions which were required to be recorded in the register
+referred to in Section 352 of the Securities and Futures Ordinance of Hong Kong, or any interests or short positions
+which were required to be notified to the Bank and the Hong Kong Stock Exchange pursuant to the Model Code
+for Securities Transactions by Directors of Listed Issuers as set out in Appendix 10 to the Hong Kong Listing Rules.
+For the interests and short positions of substantial shareholders of the Bank and other persons, please refer to
+"Corporate Governance Report Shareholding Structure — Particulars of Ordinary Shares”.
+The Board of Directors proposed distribution of cash dividends of RMB2.068 (tax inclusive) for each ten shares
+of 349,983,033,873 ordinary shares for 2021 with a total amount of approximately RMB72,376 million (tax
+inclusive). The distribution plan will be submitted for approval at the 2021 Annual General Meeting. Please refer to
+"Corporate Governance Report — Shareholding Structure - Particulars of Ordinary Shares" for details.
+Issued Debentures
+For details of issued debentures during the reporting period, please refer to "Note IV. 30 Debt Securities Issued to
+the Consolidated Financial Statements".
+Subsidiaries
+Particulars of our principal subsidiaries at 31 December 2021 are set out in "Discussion and Analysis - Business
+Review".
+Related Party Transactions
+Please refer to "Corporate Governance Report. Related Party Transactions and Intra-group Transactions".
+Auditors
+For the year ended 31 December 2021, we had no significant projects invested by non-raised capital.
+Please refer to "Corporate Governance Report - External Audit".
+AGRICULTURAL BANK OF CHINA
+Members of the Board of Directors
+As of the date of this report of the Board of Directors, the composition of the Board of Directors is as follows:
+Executive Directors: Mr. GU Shu, Mr. ZHANG Qingsong, Mr. ZHANG Xuguang and Mr. LIN Li;
+Non-executive Directors: Mr. LIAO Luming, Mr. LI Wei, Ms. ZHOU Ji, Mr. LIU Xiaopeng and Mr. XIAO Xiang; and
+Independent Non-executive Directors: Mr. WANG Xinxin, Mr. HUANG Zhenzhong, Ms. LEUNG KO May Yee,
+Margaret, Mr. LIU Shouying and Mr. WU Liansheng.
+By Order of the Board of Directors
+The Dividends Distribution Policy and Implementation of the Cash Dividend Policy
+| 中国农业银行
+Significant Projects Invested by Non-raised Capital
+Report of the Board of Directors
+Use of Proceeds
+All the proceeds raised were used to strengthen our capital base to support the future development of our business
+as disclosed in the prospectus, offering documents and other documents.
+During the reporting period, except for the above disclosure, we did not enter into, nor did there subsist, any other
+equity-linked agreement.
+If any of the triggering events above happens and all of preference shares "1” and “Rí₤2″ are
+mandatorily converted into ordinary A Shares at the conversion price, the number of ordinary A Shares upon
+conversion will not exceed 32,520,325,204 shares. No events have happened so far which would trigger the
+mandatory conversion of the preference shares "1” or “RíƑŒ2" into ordinary A Shares.
+Profits and Dividends Distribution
+(a) the CBIRC is of the view that we can no longer subsist if the preference shares are not converted;
+All preference shares issued will be converted into ordinary A Shares upon the earlier occurrence of the
+following two situations:
+If our Common Equity Tier 1 ("CET1") capital adequacy ratio decreases to 5.125% (or below), the preference
+shares will be fully or partially converted into ordinary A Shares, in order to restore our CET1 capital adequacy
+ratio to above 5.125%.
+(ii)
+(b) relevant authorities consider that we could not subsist without capital injection from public sector or any
+support to the same effect.
+We set the events triggering mandatory conversion of the preference shares "1” and “RíŒ2″ into
+ordinary A Shares, respectively, in accordance with relevant regulations, including:
+We issued preference shares "1" (stock code: 360001) and "2" (stock code: 360009) on 31 October
+2014 and 6 March 2015, respectively.
+Equity-linked Agreement
+Report of the Board of Directors
+162
+(i)
+Report of the Board of Directors
+0891-6959822
+SHAANXI BRANCH
+Gaoxin District
+Xi'an
+Shaanxi Province 710065
+PRC
+GANSU BRANCH
+029-88990819
+108 North Jinchang Road
+Lanzhou
+Gansu Province 730030
+0931-8895040
+PRC
+0931-8895082
+029-88990821
+0891-6959822
+Haikou
+Tibet 850000
+Lhasa
+FAX:
+Hainan Province 570203
+TEL:
+11 Guoxing Avenue
+ADD:
+HAINAN BRANCH
+ADD:
+•
+PRC
+FAX:
+0771-2106035
+PRC
+TEL:
+95 West Jiefang Street
+FAX:
+0771-2106036
+Urumqi 830002
+66 South Jiefang Road
+ADD:
+XINJIANG BRANCH
+0951-6027430
+FAX:
+0951-6027614
+TEL:
+PRC
+Ningxia Autonomous Region 750001
+Yinchuan
+Xingqing District
+0898-66777728
+ADD:
+0971-6114575
+FAX:
+0971-6145105
+TEL:
+PRC
+Qinghai Province 810001
+Xining
+96 Huanghe Road
+ADD:
+QINGHAI BRANCH
+List of Branches and Institutions
+Annual Report 2021 177
+0898-66791452
+NINGXIA BRANCH
+TEL:
+Corporate Banking Dept./Corporate Banking Products Dept.
+TEL:
+FAX:
+PRC
+Guizhou Province 550081
+Guiyang
+Changling North Road
+Convention and Exhibition Business District
+West Fourth Tower
+GUIZHOU BRANCH
+023-63844275
+023-63551188
+Chongqing 400020
+PRC
+Jiangbei District,
+1 Jiangbeichengnan Avenue
+CHONGQING BRANCH
+0851-87119657
+028-61016019
+Sichuan Province 610000
+PRC
+Chengdu
+666 Tianfu Third Street
+SICHUAN BRANCH
+List of Branches and Institutions
+GUANGDONG BRANCH
+0731-84300261
+FAX:
+0731-84300265
+TEL:
+TEL:
+FAX:
+Hunan Province 410005
+PRC
+XIAMEN BRANCH
+028-61016035
+PRC
+0851-85221009
+36 Chuanjin Road
+Guangxi Autonomous Region 530028
+Nanning
+56 Jinhu Road
+ADD:
+GUANGXI BRANCH
+020-38008210
+FAX:
+31 Tangyan Road
+ADD:
+020-38008008
+TEL:
+PRC
+Guangdong Province 510623
+YUNNAN BRANCH
+FAX:
+TEL:
+Tianhe District
+Zhujiang New Town
+425 East Zhujiang Road
+HEBEI BRANCH
+44 West Jinzhu Road
+ADD:
+•
+TIBET BRANCH
+0871-63203584
+0871-63203405
+Yunnan Province 650051
+PRC
+Kunming
+Guangzhou
+ADD:
+TEL:
+TEL:
+FAX:
+.
+TEL:
+FAX:
+ADD:
+AGRICULTURAL BANK OF CHINA
+|中国农业银行
+178
+0574-87363537
+0574-87363537
+PRC
+Zhejiang Province 315040
+518 East Zhongshan Road
+Ningbo
+NINGBO BRANCH
+0532-85814102
+0532-85802215
+Shandong Province 266071
+PRC
+FAX:
+Changsha
+ADD:
+FAX:
+TEL:
+.
+Qingdao
+19 Shandong Road
+ADD:
+TEL:
+FAX:
+QINGDAO BRANCH
+0411-82510646
+ADD:
+TEL:
+FAX:
+Chaoyang District
+Pudong New District
+Shanghai 200120
+PRC
+021-53961888
+021-53961900
+JIANGSU BRANCH
+357 Hongwu Road
+Nanjing
+Jiangsu Province 210002
+PRC
+025-84571888
+025-84577017
+0512-68417800
+0512-68258999
+PRC
+Jiangsu Province 215011
+Suzhou
+FAX:
+New District
+SUZHOU BRANCH
+027-86795502
+Institutional Banking Dept.
+PRC
+Hubei Province 430077
+Wuhan
+Wuchang District
+186 Zhongbei Road
+WUHAN FINANCIAL TRAINING INSTITUTE
+0431-86822002
+0431-86822002
+PRC
+Jilin Province 130012
+65 Shishan Road
+0411-82510089
+TEL:
+Changchun
+5008 East Shennan Road
+SHENZHEN BRANCH
+0592-5578899
+0592-5578855
+Fujian Province 361009
+PRC
+Xiamen
+Siming District
+0991-2217109
+PRC
+Urumqi 830002
+ADD:
+ZHEJIANG BRANCH
+173 South Jiefang Road
+Shenzhen
+ADD:
+CONSTRUCTION CORPS BRANCH
+XINJIANG PRODUCTION AND
+.
+FAX:
+TEL:
+0991-2815229
+0991-2369407
+PRC
+TEL:
+FAX:
+ADD:
+TEL:
+FAX:
+ADD:
+.
+.
+98-100 Jiahe Road
+Guangdong Province 518001
+PRC
+0755-25572255
+PRC
+Liaoning Province 116001
+1408 Qianjin Avenue
+ADD:
+Dalian
+INSTITUTE
+Zhongshan District
+10 Zhongshan Road
+ADD:
+DALIAN BRANCH
+FAX:
+TEL:
+0991-2217300
+0775-25590960
+TEL:
+FAX:
+022-23389307
+022-23381289
+PRC
+Tianjin 300381
+Nankai District
+88 South Weijin Road
+TIANJIN FINANCIAL TRAINING INSTITUTE
+010-60682727
+010-60682727
+Beijing 101400
+PRC
+Huairou District
+5 Hongluo East Road
+BEIJING ADVANCED-LEVEL TRAINING
+INSTITUTE
+CHANGCHUN FINANCIAL TRAINING
+Section 1
+027-86783669
+ADD:
+83 Zhelimu Road
+ADD:
+INNER MONGOLIA BRANCH
+0351-4956999
+FAX:
+0351-6240801
+TEL:
+PRC
+Shanxi Province 030024
+100 Jiangjin Road
+ADD:
+Taiyuan
+33 Southern Inner Ring Road West
+ADD:
+SHANXI BRANCH
+FAX:
+TEL:
+0311-87019961
+FAX:
+0311-86275220
+TEL:
+Hohhot
+Inner Mongolia 010010
+TEL:
+FAX:
+0571-87226177
+27 Qingnian North Avenue
+ADD:
+0551-62843573
+0551-62843475
+PRC
+Anhui Province 230091
+FAX:
+LIAONING BRANCH
+TEL:
+0471-6904750
+PRC
+0471-6903401
+FAX:
+TEL:
+0571-87226000
+Zhejiang Province 310003
+PRC
+Hangzhou
+Jianggan District
+1888 Chengdu Road
+Hefei
+ADD:
+ANHUI BRANCH
+•
+PRC
+FUJIAN BRANCH
+Hebei Province 050000
+39 Ziqiang Road
+Best Rural Revitalization Service Bank of the Year
+in Financial Sector at Beginning of the Fourteenth Five-year Plan
+Demonstrative Case of "Boosting Rural Revitalization"
+ABC Wealth Management - Best Green Financial Product Award
+of the Year
+Best Contribution Bank of the Year
+Financial Times
+Xinhua News Agency
+Liaowang Think Tank
+CLS
+Honors and Awards
+Honors and Awards
+Organizations
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+2020 Excellent Institution for Investment in Sample Bonds of
+CCDCC Green Bonds Index
+2021 China Business News Financial Value Ranking — Bank of
+the Year".
+China Central Depository &
+Clearing Co., Ltd.
+2021 Top 100 Best Employers in China
+Financial Technology Excellent Practice Case
+Top 10 Philanthropy Enterprise of the Year
+2020 Bond Connect Excellent Market Maker
+2020 Best Priced Trading Member of the year
+Annual Report 2021 173
+Organizational Chart
+Office of the Board of Directors
+Board of Directors
+ADD:
+Internet Banking Dept./County Area Banking & Inclusive Finance Internet Finance Management Centre
+Consumers' Rights Protection Office
+Retail Banking Dept./Retail Banking Product Dept./
+Retail Loan Dept.
+Rural Revitalization Banking Dept./Sannong Policy and Business Innovation Dept./
+Office of County Area Banking & Inclusive Finance Division Management Committee
+County Area Corporate Banking Dept
+Risk Management Dept./County Area Banking & Inclusive Finance Risk Management Centre
+540 Furongzhong Road
+Inclusive Finance Credit Management Centre
+Shijiazhuang
+Credit Management Dept./County Area Banking &
+Rural Households Banking Dept.
+Big Client Dept./Business Dept.
+Inclusive Finance Division
+International Banking Dept.
+President
+Audit Office
+Regional Audit Offices (10)
+Office of the Board of Supervisors
+Board of Supervisors
+Shareholders' General Meeting
+Credit Approval Dept./County Area Banking & Inclusive Finance Credit Approval Centre
+CBN
+Shenyang
+ADD:
+Operation Management Dept./County Area Banking &
+Inclusive Finance Channel Management Centre
+Remote Banking Centre
+Data Centre
+Research & Development Centre
+Technology & Product Management Bureau
+Trade Union Dept.
+Information Management Dept.
+Headquarter CPC Party Affairs Department
+Asset & Liability Management Dept./County Area Banking &
+Inclusive Finance Capital & Funds Management Centre
+Financial Accounting Dept./County Area Banking & Inclusive Finance Accounting & Assessment Centre
+Strategic Planning Dept.
+Human Resources Dept./County Area Banking & Inclusive Finance Human Resources Management Centre
+Office/Complaint Office
+Security Dept.
+Legal Affairs Dept.
+Internal Control & Compliance Supervision Dept.
+Risk Asset Disposal Dept.
+Overseas Branches (13)
+Overseas Representative Offices (4)
+Corporate Culture Dept.
+Headquarter Service Management Bureau
+Retired Employees Management Bureau
+Organizational Chart
+Private Banking Dept.
+Credit Card Centre
+Custodian Dept.
+Investment Banking Dept.
+Asset Management Dept.
+Financial Market Dept.
+Business Dept. & Specialized Institutions
+managed by the Head Office (4)
+Tier-1 Branches (37)
+Tier-2 Branches (402)
+Domestic Subsidiaries (11)
+Tier-1 Sub-branches (3,348)
+Other Establishments (50)
+174 中国农业银行
+GRICULTURAL BANK OF CE
+Agricultural Bank of China Training Center
+Beijing Advanced-level Training Institute
+Tianjin Financial Training Institute
+Changchun Financial Training Institute
+Wuhan Financial Training Institute
+Information Technology Institutes in Shanghai and Hefei
+37 Branch Training Centers
+Foundation-level Branch Outlets (18,961)
+Liaoning Province 110013
+Overseas Subsidiaries (5)
+176
+Hexi District
+ADD:
+9 Yincheng Road
+TEL:
+FAX:
+Tianjin 300074
+PRC
+022-23338701
+022-23338733
+TEL:
+FAX:
+ADD:
+ADD:
+JILIN BRANCH
+FAX:
+TEL:
+024-22550007
+FAX:
+024-22550004
+TEL:
+PRC
+177 Hualin Road
+•
+Zeng 6 No. 3 Zijinshan Road
+ADD:
+SHANGHAI BRANCH
+List of Branches and Institutions
+Domestic Institutions
+ADD:
+TEL:
+FAX:
+BEIJING BRANCH
+13 Chaoyangmen North Avenue
+Dongcheng District
+Beijing 100010
+PRC
+010-68358266
+Annual Report 2021 175
+010-61128239
+•
+ADD:
+TEL:
+FAX:
+HEILONGJIANG BRANCH
+131 Xidazhi Street
+Nangang District
+Harbin
+Heilongjiang Province 150006
+PRC
+0451-86208845
+0451-86216843
+TIANJIN BRANCH
+Harvard Business Review
+ADD:
+Asian Financial
+Cooperation Association
+Significant Events
+Miscellaneous
+Major Asset Acquisition, Disposal and Merger
+During the reporting period, we did not carry out any major asset acquisition, disposal or merger.
+Implementation of Share Incentive Plan
+During the reporting period, we did not implement any share incentive schemes such as share appreciation rights
+scheme for the management or employee share ownership scheme.
+Material Related Party Transactions
+926 Renmin Avenue
+During the reporting period, we did not enter into any material related party transaction.
+Material custody, contract and lease
+During the reporting period, we did not enter into any material custody, contracting or leasing arrangements on
+the assets of other companies, which were subject to disclosure and no other companies entered into any custody,
+contracting or leasing arrangements on our assets, which were subject to disclosure.
+Material Guarantees
+Provision of guarantees is one of our off-balance-sheet businesses in our usual course of business. During the
+reporting period, we did not have any material guarantees required to be disclosed, except for the financial
+guarantee services within the business scope as approved by the PBOC and the CBIRC.
+External guarantee
+During the reporting period, the Bank did not enter into any guarantee contracts in violation of laws, administrative
+regulations or the external guarantee resolution procedures stipulated by the CSRC.
+Major Centralized Procurement
+Material Contracts and Their Performance
+Changchun
+ADD:
+Jilin Province 130051
+0791-86693972
+0791-86693775
+PRC
+Jiangxi Province 330008
+Nanchang
+339 Zhongshan Road
+JIANGXI BRANCH
+0591-87909620
+0591-87909908
+Fujian Province 350003
+PRC
+Fuzhou
+TEL:
+FAX:
+0431-82093517
+FAX:
+0431-82093001
+TEL:
+PRC
+During the reporting period, there were no centralized procurement which had material impact on our cost and
+expenses.
+Annual Report 2021 169
+Significant Events
+Misappropriation of the Bank's Funds by Controlling Shareholders and Other Related Parties for
+Non-operating Purposes
+Best Risk Management Project Award
+Best Blockchain Project Award
+Best Retail Social Media Banking Experience Award
+Best Emerging Digital Technologies Project Award
+Editors' Triple Star, Business Strategy
+Top Investment House, Bank, China/Hong Kong, Rank 3, Asian G3 Bond
+Best Syndicated Loan Award
+Best Green Finance Bank of the Year
+2020 Core Trader in Interbank Local Currency Market
+2020 Excellent Bonds Market Trader
+2020 Opening-up Contribution Award
+2020 Market Innovation Award
+2020 Best RMB-Foreign Exchange Market Maker
+2020 Excellent Market Maker in Direct Trading
+2020 Best Foreign Exchange Market Maker
+2020 Outstanding Responsible Enterprise of the Year
+2021 Outstanding CSR Report
+2021 Model Responsible Enterprise of the Year
+Zhaopin.com and
+China Best Digital Bank of the Year
+| 中国农业银行
+2021 ESG Golden Award
+Global Finance
+None of our controlling shareholders or other related parties misappropriated any of the Bank's funds for
+non-operating purposes. KPMG Huazhen LLP issued the Special Statement on the Fund Occupation without
+Operating Purpose and other Fund Transfer between Related Parties of Agricultural Bank of China Limited for the
+Year of 2021.
+Penalties Imposed on the Bank and its Directors, Supervisors, Senior Management and Controlling
+Shareholders
+During the reporting period, we were not under investigation in accordance with the law for suspected crimes,
+and the controlling shareholders, Directors, Supervisors and senior management of the Bank were not subject to
+compulsory measures in accordance with the law for suspected crimes; the Bank or its controlling shareholders,
+Directors, Supervisors and senior management have not been subject to any criminal punishment, nor have they
+been subject to any investigation by the CSRC or administrative punishment by the CSRC for suspected violation
+of laws or regulations, and have not been subject to any material administrative punishment by other competent
+authorities; none of the controlling shareholders, Directors, Supervisors and senior management of the Bank has
+been subject to detention by the disciplinary inspection and supervision authorities for suspected serious violations
+of discipline or law, or duty-related crimes, which may affect their performance of duties; the Directors, Supervisors
+and senior management of the Bank have not been subject to compulsory measures by other authorities due to
+suspected violation of laws and regulations, which may affect their performance of duties.
+Integrity of the Bank and Controlling Shareholders
+There was no circumstance where we or our controlling shareholders have failed to fulfill an effective court
+judgment or repay any outstanding debt of a significant amount that matured.
+170
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Honors and Awards
+Organizations
+Securities Times
+Honors and Awards
+The Twelfth Tianma Award for Investor Relations of Chinese
+Listed Companies • Best Investor Relations Award for Chinese
+Listed Companies
+The Asset
+China Foreign Exchange
+Trade System
+Southern Weekly
+The Banker
+Shanghai Commercial
+Paper Exchange
+AGRICULTURAL BANK OF CHINA
+Asiamoney
+ADD:
+"Best Custodian Bank" in China
+Best Innovative Payment Star
+2021 China Financial Innovation Award Top 10 Inclusive Finance
+Service Innovation Award
+•
+2021 China Financial Innovation Award Top 10 Intelligent Risk
+Control Innovation Award
+Innovation Award
+2021 China Financial Innovation Award •Top 10 Retail Bank
+2021 China Financial Innovation Award • Top 10 Investment Bank
+Innovation Award
+ADD:
+•
+HUNAN BRANCH
+027-87326693
+FAX:
+TEL:
+FAX:
+027-87326666
+TEL:
+Hubei Province 430071
+PRC
+Wuhan
+Wuchang District
+66 Zhongbei Road
+Block A
+ADD:
+ADD:
+HUBEI BRANCH
+0371-69196724
+FAX:
+Outstanding Banking Dealer in 2020
+Excellent Custody and Settlement Institution in 2020
+Excellent Bill Payment Service Institution in 2020
+Excellent Scientific & Technological Work Institution in 2020
+Bond Connect
+SHANDONG BRANCH
+2020 Best Inquiry Trading Market-maker of the year
+Excellent Custodian Bank in Interbank Local Currency Market
+Market Innovation Award
+2020-2021 Rating of Trustworthy Financial Institution of the Year •
+Trustworthy Wealth Management Bank
+2020-2021 Outstanding Financial Enterprise Outstanding Inclusive
+Finance Bank of the Year
+2020-2021 Outstanding Financial Enterprise • Outstanding Green
+Bank of the Year
+2020-2021 Rating of Trustworthy Financial Institution of the Year •
+Trustworthy Private Bank
+Best Responsible Investment Bank Award
+Top 500 China ESG Excellent Enterprises
+2021 Outstanding Model Institution of Rural Revitalization with
+Outstanding Competitiveness
+2021 Brand Influence Bank of the Year
+FAX:
+Shanghai Gold Exchange
+Jing Guan Culture Media
+The Economic Observer,
+Sina Finance
+China Business
+Hexun.com
+2021 Evergreen Award • Rural Revitalization Bank of the Year
+Honors and Awards
+Caijing
+Organizations
+Honors and Awards
+172
+Annual Report 2021 171
+National Interbank
+Funding Center
+TEL:
+Outstanding Member in 2020
+Shandong Province 250001
+0371-69196850
+TEL:
+PRC
+ADD:
+168 Jingqi Road
+•
+TEL:
+FAX:
+ADD:
+Henan Province 450016
+ifeng.com
+Zhengzhou
+CBD Zhengdong New District
+HENAN BRANCH
+16 Outer Ring Road
+ADD:
+FAX:
+TEL:
+PRC
+0531-85858888
+Ji'nan
+0531-82056558
+73,641
+72,182
+9,729
+operational purpose
+17
+2,443,797 11,673,203 12,548,607
+4,575 3,652,497
+18
+Performing loans to financial institutions
+secured by Level 1 HQLA
+Performing loans and securities
+19
+Performing loans to financial institutions
+20
+3,173
+do not qualify as HQLA, including
+exchange-traded equities
+Securities that are not in default and
+24
+51
+70
+2
+2
+4,372,546
+109,182 5,016,419
+108,019
+Performing residential mortgages, of which:
+With a risk weight of less than or equal
+to 35% under the Basel II standardized
+approach for credit risk
+22
+22
+23
+147,642
+147,178
+41,472
+70,692
+10
+With a risk weight of less than or equal
+to 35% under the Basel II standardized
+approach for credit risk
+21
+2,314,250 2,085,856 6,255,401 7,485,892
+64
+46,819 322,817
+200,633
+1,169,871
+1,338
+secured by non-Level 1 HQLA and unsecured
+performing loans to financial institutions
+Performing loans to retail and small business
+customers, loans to non-financial corporate
+clients, and loans to sovereigns, central
+banks and PSES, of which:
+105,671
+56,081
+14
+392
+962,770
+419,976 3,653,148
+10
+Liabilities with matching interdependent assets
+-
+11
+Other liabilities
+85
+1,510,147
+2,785,521 4,054,751
+126,231
+250,487
+12
+NSFR derivative liabilities
+10,934
+13
+All other liabilities and equity
+85
+1,510,147
+126,231
+198,306
+Other wholesale funding
+9
+1,445,284
+Deposits held at other financial institutions for
+16
+1,081,352
+Total NSFR high-quality liquid assets (HQLA)
+15
+Required stable funding (RSF) item
+20,646,306
+187,372 250,487
+Wholesale funding
+5,676,090
+4,054,751
+not included in the above categories
+Total ASF
+962,770
+1,827,509
+176 10,796,244
+419,976 5,098,432
+8
+Operational deposits
+50,628
+2,890,569
+-
+154,870
+48,126
+Off-balance Sheet Items
+293,711
+Other adjustments
+8
+Adjusted on- and off-balance sheet assets
+In millions of RMB
+Balance
+29,069,155
+(109,716)
+39,273
+1,862
+1,689,279
+(11,257)
+30,678,596
+7
+In millions of RMB, except for percentages
+Item
+1
+23
+7
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+188
+In the unweighted cell, the amount of derivative liabilities is reported, that is, the proportion of NSFR derivative liabilities
+before deducting variation margin posted. There is no need to differentiate by maturities. The unweighted item 30 is not
+included in the unweighted item 26 "other assets" aggregate.
+127.1%
+No.
+125,796
+16,244,576
+Adjustment for off-balance sheet items
+Adjustment for securities financing transactions
+30 September
+2021
+2,307,222
+30 June
+2021
+2,245,341
+31 March
+30,678,596
+7.83%
+30,918,813
+7.46%
+30,555,010
+7.35%
+2021
+2,253,523
+30,951,031
+7.28%
+6
+No.
+1
+Total consolidated assets
+2
+Adjustment for consolidation
+3
+Adjustment for clients' assets
+4
+Adjustment for derivatives
+5
+Item
+4,064,385
+881,090 2,367,229
+625,935 674,855
+2,383,150
+904,393
+674,855
+625,935
+258,365
+Assets with matching interdependent liabilities
+Other assets
+26
+25
+value
+27
+1 year
+Over
+6-12
+months
+Less than
+6 months
+No maturity
+No.
+Unweighted value by residual maturity
+1
+Appendix III Net Stable Funding Ratio Information
+Annual Report 2021 187
+Total
+weighted
+Physical traded commodities, including gold
+28
+Assets posted as initial margin for derivative
+258,365
+3,778
+3,778
+10,858
+21,792
+1,285
+1,511
+Net stable funding ratio (%)
+Total RSF
+in the above categories
+34
+33
+32
+All other assets not included
+31
+of variation margin posted¹
+NSFR derivative liabilities before deduction
+30
+NSFR derivative assets
+29
+contracts and contributions to default funds
+of CCPs
+282,382
+148
+2,388,703
+2,388,703
+4,965,960
+569∞∞2=2
+Stable deposits
+1,845,856
+1,753,563
+Less stable deposits
+5,020,954 7,018,522
+163
+185
+10,835,860
+Wholesale funding
+Operational deposits
+Other wholesale funding
+10 Liabilities with matching interdependent assets
+5,769,905 4,046,242
+728,861
+8
+7
+small business customers
+12,589,423
+2,571,958
+2
+Regulatory capital
+2,287,034
+254,924
+2,541,958
+3
+499,578
+Other capital instruments
+30,000
+4
+Retail deposits and deposits from
+6,866,810
+7,018,522
+163
+185
+30,000
+5,143,360
+3,027,153
+1,513,576
+249,427
+not included in the above categories
+14
+Total ASF
+20,554,168
+Annual Report 2021 185
+Appendix III Net Stable Funding Ratio Information
+170,300
+1
+No.
+No maturity
+Less than
+6 months
+6-12
+months
+Over
+Total
+weighted
+1 year
+Unweighted value by residual maturity
+284,924
+158,253
+100
+2,742,752 4,046,242
+728,861
+499,578
+3,629,784
+11
+Other liabilities
+100
+1,601,543
+1,601,543
+172,156
+249,427
+12
+NSFR derivative liabilities
+1,856
+13
+All other liabilities and equity
+158,253
+value
+2,287,034
+1
+Less: Deductible amounts of written credit derivative assets
+11
+Derivative assets
+61,250
+12
+Securities financing transaction assets for accounting purpose
+837,129
+13
+Less: Deductible amounts of securities financing transaction assets
+14
+Counterparty credit risk exposure for securities financing transaction
+1,862
+15
+16
+Securities financing transaction assets resulting from agent transaction
+Securities financing transaction assets
+10
+Notional principal amount of written credit derivatives
+9
+Less: Derivative assets resulting from transactions with the central counterparty
+when providing clearance services to client
+On-balance sheet assets (excluding derivatives and securities financing transactions)
+Less: Deductions from Tier 1 capital
+Balance
+28,100,333
+(11,257)
+3
+Adjusted on-balance sheet assets (excluding derivatives and securities
+financing transactions)
+28,089,076
+456∞
+838,991
+Replacement cost of all derivatives (net of eligible margin)
+Potential risk exposure of all derivatives
+41,181
+Gross-up of collaterals deducted from the balance sheet
+7
+Less: receivables assets resulting from providing eligible margin
+(367)
+8
+20,436
+17
+Off-balance sheet items
+2,888,789
+In accordance with the Rules on Liquidity Risk Management of Commercial Banks issued by the CBIRC, it is required
+that the net stable funding ratio of commercial banks should be no less than 100%. In addition, as required by the
+Rules on Disclosure of Net Stable Funding Ratio Information of Commercial Banks, commercial banks shall disclose the
+net stable funding ratio information of the latest two quarters in a financial report or on their official websites on a
+semi-annual basis at least.
+Net Stable Funding Ratio
+The Bank calculated net stable funding ratio in accordance with the Rules on Liquidity Risk Management of
+Commercial Banks and applicable statistical requirements. The net stable funding ratio of the Bank in the third quarter
+of 2021 increased by 1.2 percentage points to 128.6% compared to the previous quarter, with a weighted value of
+RMB20,554.2 billion for available stable funds and a weighted value of RMB15,978.7 billion for required stable funds.
+In the fourth quarter of 2021, the net stable funding ratio decreased by 1.5 percentage points to 127.1% compared
+to the previous quarter, with a weighted value of RMB20,646.3 billion for available stable funds and a weighted value
+of RMB16,244.6 billion for required stable funds.
+The net stable funding ratios of the third quarter of 2021 and the fourth quarter of 2021 and all related individual
+items were set out in the following table:
+Net Stable Funding Ratio of the Third Quarter of 2021
+(Unit: In millions of RMB)
+Unweighted value by residual maturity
+Regulatory Requirements of Net Stable Funding Ratio
+No.
+Less than
+6 months
+6-12
+months
+Over
+1 year
+Total
+weighted
+value
+Available stable funding (ASF) item
+No maturity
+Capital
+The Bank disclosed the following information of net stable funding ratio in accordance with relevant regulations of the
+China Banking and Insurance Regulatory Commission.
+AGRICULTURAL BANK OF CHINA
+18
+Less: Adjustments for conversion to credit equivalent amounts
+19
+Adjusted off-balance sheet items
+20
+Tier 1 capital, net
+21
+Appendix III Net Stable Funding Ratio Information
+Adjusted on- and off-balance sheet assets
+2,402,361
+30,678,596
+22
+Leverage ratio
+7.83%
+184
+| 中国农业银行
+(1,199,510)
+1,689,279
+7,029,523
+Required stable funding (RSF) item
+Total NSFR high-quality liquid assets (HQLA)
+Net stable funding ratio (%)
+1,509
+1,283
+24,850
+22,994
+2,978
+2,978
+157,795
+661,868
+685,874
+917,579
+2,326,582
+4,235,686
+143,159
+15,978,731
+128.6%
+34
+Total RSF
+33
+Off-balance Sheet Items
+2,353,837
+27
+Physical traded commodities, including gold
+28
+Assets posted as initial margin for derivative
+contracts and contributions to
+default funds of CCPs
+In the unweighted cell, the amount of derivative liabilities is reported, that is, the proportion of NSFR derivative liabilities
+before deducting variation margin posted. There is no need to differentiate by maturities. The unweighted item 30 is not
+included in the unweighted item 26 "other assets" aggregate.
+29
+30
+NSFR derivative liabilities before deduction
+of variation margin posted'
+31
+All other assets not included
+in the above categories
+32
+NSFR derivative assets
+186
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+2,673,634
+254,931
+2,643,634
+30,000
+30,000
+4
+Retail deposits and deposits from
+284,931
+6,889,654 7,029,523
+176 12,623,753
+small business customers
+5
+Stable deposits
+1,923,694
+6
+Less stable deposits
+148
+943,938
+Other capital instruments
+Capital
+Appendix III Net Stable Funding Ratio Information
+Net Stable Funding Ratio of the Fourth Quarter of 2021
+(Unit: In millions of RMB)
+Unweighted value by residual maturity
+No.
+No maturity
+Less than
+6 months
+Regulatory capital
+6-12
+Over
+1 year
+Total
+weighted
+value
+Available stable funding (ASF) item
+1
+2
+3
+months
+15
+685,874
+157,795
+85,991
+86,301
+secured by Level 1 HQLA
+19
+Performing loans to financial institutions
+secured by non-Level 1 HQLA and
+3,645
+1,185,044
+175,950
+47,022
+319,762
+unsecured performing loans
+to financial institutions
+20
+Performing loans to retail and small business
+226
+1,313
+-
+Performing loans to financial institutions
+928,327
+16
+Deposits held at other financial institutions for
+1,224
+176,184
+101,260
+139,334
+customers, loans to non-financial
+operational purpose
+Performing loans and securities
+5,731
+3,616,227
+2,486,986
+11,492,735
+12,414,073
+18
+17
+2,271,319
+2,155,660
+6,241,787
+66
+46
+approach for credit risk
+24
+Securities that are not in default and
+do not qualify as HQLA, including
+2,022
+3
+52,554
+286,047
+296,763
+exchange-traded equities
+25
+Assets with matching interdependent liabilities
+26
+Other assets
+48,447
+661,868
+2
+4,213,442
+7,497,805
+corporate clients, and loans to sovereigns,
+central banks and PSES, of which:
+21
+With a risk weight of less than or
+equal to 35% under the Basel II
+standardized approach for credit risk
+10
+to 35% under the Basel II standardized
+95,454
+148,011
+167,980
+22
+23
+Performing residential mortgages, of which:
+With a risk weight of less than or equal
+105,997
+106,703 4,831,888
+57,626
+64
+2,155,809
+Shanghai 200001
+TEL:
+TEL:
+0082-2-37883900
+FAX:
+FAX:
+0082-2-37883901
+NEW YORK BRANCH
+ADD:
+ADD:
+277 Park Ave, 30th Floor, New York,
+NY, 10172, USA
+Seoul, 04520, Korea
+TEL:
+FAX:
+001-646-7385291
+TEL:
+FAX:
+DUBAI INTERNATIONAL FINANCIAL
+CENTRE (DIFC) BRANCH
+ADD:
+Office 2901, Level 29,
+ADD:
+Al Fattan Currency House Tower 2,
+001-212-8888998
+DIFC, Dubai, 124803, UAE
+Sejong-daero, Jung-gu,
+14F Seoul Finance Center, 136,
+ABC FINANCIAL ASSET INVESTMENT
+010-82827966
+FAX:
+010-82828899
+TEL:
+7/F, 1 Bartholomew Lane, London,
+EC2N 2AX, UK
+0044-20-73748900
+0044-20-73746425
+•
+SINGAPORE BRANCH
+ADD:
+•
+7 Temasek Boulevard #30-01/02/03,
+ADD:
+TEL:
+Suntec Tower 1, 038987, Singapore
+0065-65355255
+TEL:
+FAX:
+0065-65387960
+FAX:
+SEOUL BRANCH
+ADD:
+ADD:
+CO., LTD.
+TEL:
+FAX:
+Frankfurt am Main, 60325,
+Germany
+TEL:
+FAX:
+0049-69-401255-0
+0049-69-401255-139
+180
+|中国农业银行
+AGRICULTURAL BANK OF CHINA
+ADD:
+TEL:
+•
+FAX:
+TEL:
+FAX:
+ADD:
+TEL:
+FAX:
+ADD:
+TEL:
+FAX:
+ADD:
+ADD:
+ADD:
+00971-45676900
+Ulmenstrasse 37-39,
+FRANKFURT BRANCH
+00971-45676910
+DUBAI BRANCH
+ADD:
+Office No. 201, Second Floor,
+•
+Building No. 1, Emaar Business Park,
+Sheikh Mohamed bin Zayed Road,
+Dubai, 336760, UAE
+TEL:
+00971-45676901
+ADD:
+FAX:
+TOKYO BRANCH
+ADD:
+Yusen Building, 2-3-2 Marunouchi,
+ADD:
+Tokyo, 100-0005, Japan
+TEL:
+0081-3-62506911
+FAX:
+0081-3-62506924
+•
+00971-45676909
+TEL:
+FAX:
+ADD:
+No. 23, Fuxing Road Jia
+0061-2-82278888
+2 Chifley Square, Sydney NSW, 2000,
+Australia
+Level 18, Chifley Tower,
+SYDNEY BRANCH
+FAX:
+TEL:
+ADD:
+TEL:
+FAX:
+FAX:
+TEL:
+0061-2-82278800
+ADD:
+TEL:
+FAX:
+ADD:
+.
+00852-28660133
+00852-28618000
+25/F, Agricultural Bank of China Tower,
+50 Connaught Road Central, Hong Kong,
+China
+HONG KONG BRANCH
+TEL:
+FAX:
+ADD:
+Overseas Institutions
+TEL:
+FAX:
+List of Branches and Institutions
+LUXEMBOURG BRANCH
+00352-279559900
+00853-8599-5509
+HANOI BRANCH
+Unit 901-907, 9th Floor, TNR Building,
+54A Nguyen Chi Thanh,
+Lang Thuong Ward, Dong Da District,
+Hanoi, Vietnam
+0084-24-39460599
+0044-24-39460587
+ABC INTERNATIONAL HOLDINGS LIMITED
+16/F, Agricultural Bank of China Tower,
+50 Connaught Road Central, Hong Kong,
+China
+00852-36660000
+00852-36660009
+CHINA AGRICULTURAL FINANCE CO., LTD.
+26/F, Agricultural Bank of China Tower,
+50 Connaught Road Central, Hong Kong,
+China
+65, Boulevard Grande-Duchesse Charlotte,
+1331, Luxembourg
+00852-28631916
+AGRICULTURAL BANK OF CHINA (UK)
+LIMITED
+IT Center of Macau,
+No. 300-322, Edifício Finance and
+Avenida Doutor Mário Soares,
+MACAO BRANCH
+0044-20-73746425
+0044-20-73748900
+7/F, 1 Bartholomew Lane, London,
+EC2N 2AX, UK
+LONDON BRANCH
+00352-279550005
+00852-28661936
+Annual Report 2021 179
+0579-87017378
+0579-87017378
+PRC
+Beijing 100005
+FAX:
+TEL:
+Dongcheng District
+TEL:
+FAX:
+28 Jianguomen Nei Avenue
+Minsheng Financial Center
+11/F, Block B,
+ADD:
+010-85101611
+WEALTH MANAGEMENT CO., LTD.
+010-65287757
+010-85101290
+PRC
+FAX:
+TEL:
+Jixi County
+40 Yangzhi North Road
+ADD:
+Beijing 100036
+Haidian District
+AGRICULTURAL BANK OF CHINA
+010-65212368
+Xuancheng
+Anhui Province 245300
+Zhejiang Province 321300 PRC
+Yongkang
+Headquarters Center
+1/F, Jinsong Building
+LIMITED LIABILITY COMPANY
+ABC ZHEJIANG YONGKANG RURAL BANK
+0592-7319221
+0592-7319223
+PRC
+Fujian Province 361100
+Xiamen
+Tong'an District
+Zhaoyuan Road
+Committee Complex Building
+TEL:
+FAX:
+ADD:
+No. 185-199 Zhaoyuan Community
+ADD:
+LIMITED LIABILITY COMPANY
+ABC XIAMEN TONG'AN RURAL BANK
+0563-8158916
+0563-8158913
+PRC
+TEL:
+00853-8599-5599
+AGRICULTURAL BANK OF CHINA
+(LUXEMBOURG) LIMITED
+1331, Luxembourg
+Adjusted on-and off-balance
+sheet assets
+Leverage ratio
+In millions of RMB, except for percentages
+31 December
+2021
+2,402,361
+PRC
+Beijing 100005
+Dongcheng District
+28 Jianguomen Nei Avenue
+FAX:
+Block A, Minsheng Financial Center
+Tier 1 capital, net
+ADD:
+TEL:
+021-58958611
+FAX:
+021-20686888
+TEL:
+PRC
+Huangpu District
+5-6/F, 518 East Yan'an Road
+ADD:
+ABC JIXI RURAL BANK LIMITED LIABILITY
+COMPANY
+ABC LIFE INSURANCE CO., LTD.
+0911-6229906
+Item
+Appendix II Leverage Ratio Information
+Inflows from fully performing exposures
+1,219,507
+654,344
+19
+Other cash inflows
+1,049,604
+1,049,604
+20
+TOTAL CASH INFLOWS
+2,720,972
+As of 31 December 2021, the Bank's leverage ratio, calculated in accordance with the Rules for the Administration of the
+Leverage Ratio of Commercial Banks (amended) issued by the CBIRC, was 7.83%, higher than the regulatory requirement.
+Total Adjusted
+21
+TOTAL HQLA
+22
+TOTAL NET CASH OUTFLOWS
+23
+LIQUIDITY COVERAGE RATIO (%)
+4,662,201
+3,852,154
+121.1%
+Annual Report 2021 183
+Value
+18
+0911-6229906
+Shaanxi Province 717400
+021-61095588
+TEL:
+PRC
+Shanghai 200122
+Pudong New District
+ADD:
+1600 Century Avenue
+7/F, Lujiazui Business Plaza
+ADD:
+ABC-CA FUND MANAGEMENT CO., LTD.
+FAX:
+TEL:
+0312-6587088
+TEL:
+FAX:
+PRC
+Hebei Province 071700
+Baoding City
+ADD:
+Rongcheng County
+No. 48, Yonggui South Street
+ADD:
+XIONGAN BRANCH
+0312-6587088
+PRC
+021-61095556
+List of Branches and Institutions
+Yan'an
+Ansai District
+Yingbin Road
+Shop A-02, Jinmingmeidi Community
+ADD:
+ABC ANSAI RURAL BANK LIMITED
+LIABILITY COMPANY
+0476-5263191
+FAX:
+TEL:
+PRC
+ABC FINANCIAL LEASING CO., LTD.
+0476-5263191
+Jingpeng Township
+Jiefang Road Middle Section
+ABC HEXIGTEN RURAL BANK LIMITED
+LIABILITY COMPANY
+0712-8412338
+PRC
+Hubei Province 431600
+Hanchuan
+Xinhe Town
+Dianchangjianshece Road
+ABC HUBEI HANCHUAN RURAL BANK
+LIMITED LIABILITY COMPANY
+Hexigten 025350
+65, Boulevard Grande-Duchesse Charlotte,
+451,861
+17 Secured lending (e.g. reverse repos and borrowed securities)
+Appendix I Liquidity Coverage Ratio Information
+The Bank disclosed the following information of liquidity coverage ratio in accordance with relevant regulations of the
+China Banking and Insurance Regulatory Commission.
+Regulatory Requirements of Liquidity Coverage Ratio
+In accordance with the Rules on Liquidity Risk Management of Commercial Banks issued by the CBIRC, it is required
+that the liquidity coverage ratio of commercial banks should be no less than 100%. In addition, in accordance with
+the Rules on Disclosure for Liquidity Coverage Ratio Information of Commercial Banks, commercial banks are required
+to disclose the liquidity coverage ratio information at the same frequency as the frequency at which they issue the
+financial report, and starting from 2017, to disclose the simple arithmetic average of the liquidity coverage ratios
+based on daily data of every quarter and the number of daily data adopted in calculation of such average.
+Liquidity Coverage Ratio
+The Bank calculated the liquidity coverage ratio in accordance with the Rules on Liquidity Risk management of
+Commercial Banks and applicable calculation requirements. The average of daily liquidity coverage ratio of the Bank
+was 121.1% in the fourth quarter of 2021, representing a decrease of 6.8 percentage points over the previous
+quarter, and 92 numerical values of liquidity coverage ratios were used in calculating such average. Our high-quality
+liquid assets mainly include cash, excess reserve with the central bank able to be withdrawn under stress conditions,
+and bonds falling within the Level 1 and Level 2 assets as defined in the Rules on Liquidity Risk Management of
+Commercial Banks.
+182
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Appendix I Liquidity Coverage Ratio Information
+Annual Report 2021 181
+The averages of the daily liquidity coverage ratio and individual line items over the fourth quarter in 2021 are as
+follows:
+HIGH-QUALITY LIQUID ASSETS
+1 Total high-quality liquid assets (HQLA)
+CASH OUTFLOWS
+In millions of RMB, except for percentages
+Total
+unweighted
+value
+Total
+weighted
+value
+5,766,716
+2
+Retail deposits and deposits from small business customers, of
+which:
+No.
+13,549,543
+List of Branches and Institutions
+(Corporate Plaza), Vila Olimpia,
+00352-279559900
+00352-279550005
+AGRICULTURAL BANK OF CHINA
+(MOSCOW) LIMITED
+Floor 4, Lesnaya Street 5B, Moscow, 125047,
+Russia
+007-499-9295599
+007-499-9290180
+VANCOUVER REPRESENTATIVE OFFICE
+Suite 2220, 510 W. Georgia Street,
+Vancouver, BC, V6B 0M3, Canada
+001-604-6828468
+Sao Paulo, 04551-080, Brazil
+0055-11-31818526
+001-888-3899279
+3203, No. 333, Keelung Road, Sec.1,
+Xinyi District, Taipei City, 11012, Taiwan,
+China
+00886-2-27293636
+00886-2-23452020
+DUSHANBE REPRESENTATIVE OFFICE
+Huvaydulloev str. 1/2,
+District Sino, Dushanbe, 734049,
+Tajikistan
+SAO PAULO REPRESENTATIVE OFFICE
+4/F, No. 86 Sao Tome Road
+TAIPEI REPRESENTATIVE OFFICE
+451,861
+1,268,231
+Stable deposits
+11
+Outflows related to derivative exposures and other collateral
+requirements
+977,342
+1,147,788
+977,342
+12
+Outflows related to loss of funding on debt products
+101
+13
+Credit and liquidity facilities
+2,165,560
+3,143,003
+101
+170,345
+Other contractual funding obligations
+152,321
+152,321
+15
+Other contingent funding obligations
+2,107,560
+31,975
+16 TOTAL CASH OUTFLOWS
+6,007,963
+CASH INFLOWS
+14
+3
+10 Additional requirements, of which:
+Secured wholesale funding
+1,734,411
+86,718
+4
+Less stable deposits
+11,815,132
+1,181,513
+5
+Unsecured wholesale funding, of which:
+8,967,300
+3,407,155
+45,252
+493
+6 Operational deposits (all counterparties) and deposits in
+736,887
+networks of cooperative banks
+7
+Non-operational deposits (all counterparties)
+5,916,799
+2,625,016
+8
+Unsecured debt
+45,252
+9
+3,005,249
+21 andar, em Macau, China
+87,059
+Annual Report 2021 9
+9.
+Capital Management
+Risk Management
+County Area Banking Business
+Business Review
+Financial Statement Analysis
+Formulation and Implementation of Strategy
+Environment and Prospects
+Discussion and Analysis
+Annual Report 2021 17
+WANG Jingdong
+Chairman of the Board of Supervisors
+President
+30 March 2022
+ZHANG Qingsong
+*R*#4
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+16
+2022 is an important year to start a new journey towards the second centenary goal of building a modern socialist
+country in all respects. In this year, we will adhere to the general principle of pursuing progress while ensuring
+stability, and apply the new development philosophy in full, in the right way, and in all fields of endeavor. Full of pride
+and invigorating spirit, we will seek development, promote reform, strengthen management, and control risks with
+greater effort and more practical measures, so as to write a new chapter of high-quality development and set the
+stage for 20th National Congress of the CPC with concrete actions.
+19
+We strengthened bottom line thinking and adhered to a strict approach to risk limitation and compliance
+limitation. In the face of the complex and severe risk situation, we continued to strengthen the construction of a
+comprehensive risk management system, enabling us to respond to low-probability events with a high-probability
+mind-set, and resolutely adhered to the bottom line of no systemic risk. Focusing on improving data authenticity,
+model accuracy and system effectiveness, we actively promoted the development of a digital risk control system.
+Our credit risk management mechanism was improved, the system of principal responsible person for loans was
+implemented, the risk control in key areas such as large-value group customers and real estate industry was
+strengthened, and the disposal of non-performing loans was increased, so that our asset quality remained stable
+overall. We strengthened the tracking and judgement of the market situation, promoted the integrated management
+and control of market risk across the Group and implemented the look-through management for market-based
+business assets, to ensure the market risk was visible and under control. The building of the compliance system
+was comprehensively deepened, through carrying out the activities of Year of Establishment of Internal Control and
+Compliance and Year of Establishment of System and Compliance, and strengthening anti-money laundering and
+sanctions risk management, so that the effectiveness of our internal control was further enhanced. We continued
+to optimize the IT technical architecture, strengthened the development of a disaster recovery system, upgraded the
+cyber security and data security defence system, and conducted regular emergency disaster recovery and cyber-attack
+and defence drills, so that our capabilities to guarantee our business continuity and protect our information security
+were significantly strengthened.
+19
+21
+175,865
+Net profit attributable to equity holders of the Bank
+Net cash flows generated from/(used in)
+65,861
+56,417
+64,431
+54,474
+operating activities
+382,770
+(221,605)
+(8,609)
+79
+59
+65
+59
+59
+38
+23
+24
+179,627
+and promoted the development of differentiation through the adaptive allocation of resources and differentiated
+assessments and incentives. In response to changes in the development pattern of urban and rural areas, we adjusted
+and optimized the distribution of our branch outlets, improving customers' access to our services and increasing more
+branch outlets in new urban areas, urban-rural fringe, key towns and other areas with strong potential, to improve
+their output efficiency. For the purpose of capital saving and value creation, we strengthened our sophisticated
+management of capital by significantly reducing businesses with high capital consumption and removing inefficient
+and ineffective capital occupation through multiple channels. Our Common Equity Tier 1 ("CET1") capital adequacy
+ratio increased by 40 basis points compared to the end of the previous year. We advanced the development of an
+intelligent operation system in an orderly manner, and effectively relieved burdens of foundation-level branches via
+RPA technology while improving the level of intelligent and intensive operation.
+Annual Report 2021 15
+We actively supported the green and low-carbon transformation of the economy and society. We carried
+out conscientiously the deployment of peak carbon emissions and carbon neutrality and identified green finance
+as one of the Bank's development strategies in the 14th Five-Year Plan. We implemented green development
+concepts throughout our operation and management process, improved the institutional system and innovated
+products and service models, through which to grow our green finance. As of the end of 2021, our green credit
+balance was RMB1.98 trillion, representing an increase of 30.6%, and the balance of green bond investment was
+RMB88.3 billion, representing an increase of 35.0%, both compared to the end of the previous year. We actively used
+the carbon-reduction supporting instruments launched by the PBOC and supported various projects with significant
+carbon emission reduction effect in the key areas of carbon emission reduction. We conscientiously implemented our
+responsibilities for environmental, social and corporate governance, and actively demonstrated the image of China
+with green development.
+We have always practiced the "people-centered" development philosophy. Adhering to the principle of people
+first and customers first, we continued to make our service accessible to customers and optimize our service system to
+better meet the diversified financial needs of the people and the real economy. We continuously extended the service
+coverage to County Areas; 65% of our relocated branch outlets in 2021 were deployed to rural-urban fringe, County
+Areas and towns. We strengthened the supply of financial services related to people's livelihood, such as housing,
+education, medical care and pensions, so as to solve their problems by means of finance. We implemented layered
+management for customers and classified management for customer managers, launched the rural version and large-
+font version of our mobile banking APP, and built senior-friendly and barrier-free service facilities, so as to provide
+customers with inclusive, fast and more considerate financial services. We strengthened the protection of consumers'
+rights and interests, improved the related systems, further smoothed customer complaint channels and responded
+proactively to customers' demands so as to increase their satisfaction and sense of benefit.
+We made an all-out effort to serve the real economy, and contribute to ensuring stability on six key fronts,
+maintaining security in six key areas and creating a new pattern of development by continuously improving our
+financial service system with high adaptability, competitiveness and inclusiveness. Regarding the national major
+regional strategies and key engineering and major projects under the 14th Five-Year Plan, we strengthened our
+comprehensive financial services, granting RMB673.8 billion of new loans in major projects and RMB516 billion of
+new investment in local government bonds in 2021. We proactively adjusted our credit structure and prioritized credit
+resources to the key areas such as manufacturing, scientific and technological innovation, green and low-carbon
+development, inclusive finance, and people's livelihood. The balance of loans to manufacturing amounted to
+RMB1.7 trillion, representing an increase of 18.5% compared to the end of the previous year. We established
+partnerships with 2,853 specialized and sophisticated "little giant" enterprises that produce new and unique products,
+of which 1,251 enterprises had outstanding loans with a balance of RMB19.7 billion, representing an increase of
+33.1% compared to the end of the previous year. The balance of our inclusive loans to small and micro enterprises
+increased by 38.8% to RMB1.3 trillion, the number of small and micro enterprises with outstanding inclusive loans
+increased by 0.35 million. The loans to private enterprises increased by 21.5%.
+Chairman's Statement
+12
+Annual Report 2021 11
+We prominently positioned the Bank in two aspects as "a leading bank serving rural revitalization" and
+"a major bank serving the real economy". Actively responding to the national strategy of promoting rural
+revitalization on all fronts, we leveraged our advantages in channels, capital, products and technology to keep being
+a "vanguard" in the financial sector to serve rural revitalization. As of the end of 2021, the balance of our loans and
+advances to customers in County Areas was RMB6.2 trillion, and the increase in such loans and its proportion in our
+total loans both reached their highest levels since our conversion into a joint-stock bank. We increased the support
+in serving the key fields in the rural revitalization and consolidating the achievements of poverty alleviation. Our
+loans for food security, rural industries and rural construction increased by 17.0%, 20.6% and 14.8%, respectively,
+compared to the end of the previous year. The loans to the 832 counties lifted out of poverty and 160 key counties
+receiving assistance in pursuing rural revitalization increased by 14.2% and 15.0%, respectively, compared to the
+end of the previous year, both higher than the average growth rate of loans across the Bank. We strengthened the
+technological empowerment and launched a management platform for rural collective capitals, assets and resources
+in 908 counties. The balance of Huinong E-loan (an online loan to rural households) amounted to RMB544.7 billion,
+representing an increase of 54.1% compared to the end of the previous year, which served 3.68 million rural
+households.
+We adhered to high-quality development. Following the requirements of the new development stage and serving
+the creation of a new pattern of development, we persisted in our primary responsibilities and core businesses, carried
+on our essence of tradition while pursuing innovation, and steadfastly stayed on the path of high-quality development,
+which enabled us to achieve a balanced and coordinated development in scale, quality and efficiency. As of the
+end of 2021, our total assets exceeded RMB29 trillion; the balance of loans and advances to customers increased
+by RMB2 trillion compared to the end of the previous year, reaching RMB17.2 trillion to the highest record of new
+loans; and the balance of deposits from customers was RMB21.9 trillion, representing an increase of RMB1.5 trillion
+compared to the end of the previous year, of which an increase in deposits from retail banking customers exceeded
+RMB1 trillion. We achieved steady growth in operating performance with an operating income of RMB721.7 billion
+and a net profit of RMB241.9 billion, having a year-on-year growth rate of 9.5% and 11.8%, respectively. Our asset
+quality remained stable with our non-performing loan ratio decreasing by 0.14 percentage point to 1.43% and our
+allowance to non-performing loans increasing by 33.53 percentage points to 299.73%, compared to the end of
+the previous year. Our capital adequacy level was improved with a capital adequacy ratio of 17.13%, representing
+an increase of 54 basis points compared to the end of the previous year. Our business innovation was accelerated,
+diversified income structure was more stable, and the capabilities of overall service and value creation were further
+enhanced.
+During this year, we have persistently upheld the Party leadership, integrated it throughout the entire process of
+our corporate governance, and demonstrated it in our concrete actions serving the high-quality development and
+national strategies. We always bore in mind the country's most fundamental interests, steadfastly followed the path
+of financial development with Chinese characteristics, resonated with the pulse of the times, flourished with the real
+economy and grew alongside our customers. We further deepened the understanding of the duties and mission of a
+large state-owned commercial bank as well as the law of modern finance. All of these ensured we were developing in
+the right direction.
+2021 was a milestone in China's history and also a year in which Agricultural Bank of China made new achievements
+in its high-quality development. In the face of the combined impact of major global changes and the pandemic, both
+unseen in a century, we followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a
+New Era, and conscientiously implemented the decisions and plans of the Central Committee of the Communist Party
+of China (the "CPC") and the State Council. We implemented the new development philosophy in full, in the right
+way, and in all fields of endeavor, and adhered to the general principle of pursuing progress while ensuring stability.
+We stayed true to the original aspiration and the mission of serving Sannong and the real economy, responded to
+COVID-19 and worked on business operations in a well-coordinated way, accelerated the reforms in key areas and the
+digital transformation, and took solid measures on risk control. We successfully accomplished the targets and tasks set
+by the Board of Directors and all these endeavors made a good start on the 14th Five-Year Plan of the Bank.
+Chairman's Statement
+AGRICULTURAL BANK OF CHINA
+|中国农业银行
+GU Shu
+Chairman's Statement
+10
+Basic Corporate Information and Major Financial Indicators
+We promoted digital transformation to achieve landmark application results. Amid the rapid changes brought
+about by the digital wave, we implemented the Ten Projects of digital transformation in four key areas, namely
+technology support, smart channel construction, enterprise-level architecture and big data application. During this
+year, we continuously advanced the construction of the basic framework of digital transformation, achieving a series
+of landmark application results. As of the end of 2021, the number of customers registered for our mobile banking
+exceeded 0.4 billion, and the monthly active users exceeded 0.15 billion, ranking the first among peers. The balance
+of the online loan "ABC E-loan" exceeded RMB2 trillion, an increase of 63.0% compared to the end of the previous
+year, and online supply chain financing exceeded RMB100 billion. The projects, such as smart marketing, smart risk
+control, and the middle-end data platform, were promoted smoothly, solidifying foundational support for our digital
+transformation.
+President's Statement
+| 中国农业银行
+Chairman's Statement
+We put customers first and focused on improving our customer service capabilities. We continued to expand
+the customer base and improve our service quality, and further solidified our customer base by obtaining customers
+from the source of businesses and in batches as well as based on scenes. The number of our retail banking customers
+remained ahead among peers, and the number of private banking customers increased by 20.2% compared to the
+end of the previous year. The number of our corporate banking customers increased by 0.61 million over the end of
+the previous year, reaching 8.60 million. To satisfy diversified demands of retail banking customers in asset allocation
+in the new era, we accelerated the improvement of the broad wealth management system, constantly enriched
+the supply of products and services in funds, insurance, wealth management and family trusts so as to create more
+value for our customers. We deepened the integrated management of domestic and foreign currency businesses
+and the integrated operation of our group, and improved the synergistic marketing mechanism of the corporate
+business. In the areas of financial markets, investment banking, custody and cross-border, our businesses maintained
+a good development trend, and our international and integrated service capabilities continued to grow. We created
+a smooth end-to-end digital journey to improve customer experience by applying scene-based thinking. The process
+optimization projects such as paperless transactions at branch outlets and intelligent account management were
+steadily advancing, and the scope of the remote interviews and remote "cloud expert" services continued to expand.
+We deepened reform and innovation to further enhance the effectiveness of operation and management.
+With the goal of improving our digital operation capability, we actively promoted digital transformation in four
+aspects: channel construction, big data application, business foundation and IT foundation. As of the end of 2021,
+our online loan "ABC E-loan" balance increased by 63% to RMB2.14 trillion compared to the end of the previous
+year, and monthly active users of our mobile banking exceeded 0.15 billion. Regarding smart government affairs, we
+had cooperation with all provincial-level government affairs platforms. Nearly RMB4 trillion of financial products were
+sold through our retail digital marketing platform. In line with the national regional development strategies and based
+on the local resource endowment and basic conditions, we implemented classified management for the branches,
+Adhering to our primary responsibilities and core businesses, we effectively served Sannong and the real
+economy. Focusing on serving the creation of a new pattern of development, we effectively increased our financing
+supply and prioritized more financial resources to key sectors and weak links in the real economy, to provide more
+targeted and suitable financial services. Adhering to our positioning of serving Sannong, we increased resources
+invested in County Areas and strengthened our financial support for key fields in rural revitalization such as food
+security, rural industries and rural construction. Our loans in County Areas increased by RMB913.0 billion or 17.2%
+compared to the end of the previous year. The solid progress was made in serving for consolidating the achievements
+of poverty alleviation, that the respective growth rates of loans to 832 counties lifted out of poverty and 160 key
+counties receiving assistance in pursuing rural revitalization were both higher than the average growth rate of loans
+across the Bank. By comprehensively implementing the policies in securing the operation of market entities, we
+promoted the increment, coverage expansion and cost reduction of inclusive loans. Our inclusive loans to small and
+micro enterprises increased by RMB369.3 billion, with a growth rate of over 30% for three consecutive years, and
+the number of small and micro enterprises with outstanding inclusive loans increased by 0.35 million over the end
+of the previous year to 1.92 million. Focusing on serving the national strategy of building China into a manufacturer
+of quality, we increased loans to manufacturing by RMB272.4 billion or 18.5% compared to the end of the previous
+year, of which medium and long-term loans to manufacturing and the loans to high-tech manufacturing grew
+by 39% and 26%, respectively. We also focused on the construction of the national scientific and technological
+innovation system, improved our financial service system, and continuously expanded the coverage for specialized and
+sophisticated "little giant" enterprises that produce new and unique products. Putting the green development concept
+into our practice actively, we vigorously implemented the green finance strategy, with the green credit balance of
+RMB1.98 trillion and a growth rate of over 30%.
+2021 was the 100th anniversary of the founding of the Communist Party of China and the 70th anniversary of the
+establishment of Agricultural Bank of China. Over the past year, we firmly implemented the decisions and plans of the
+CPC Central Committee and the State Council. We focused on strengthening financial services for Sannong and the real
+economy, continued to deepen the system and mechanism reforms, dealt with all risks and challenges, and forged ahead
+and worked hard, thus achieving simultaneous enhancement in the scale, quality and efficiency of our business operations.
+As of the end of 2021, our total assets reached RMB29.1 trillion, representing an increase of 6.9%; the balance of loans
+reached RMB17.2 trillion, representing an increase of 13.2%; and the balance of deposits reached RMB21.9 trillion,
+representing an increase of 7.5%, compared to the end of the previous year. Our non-performing loan ratio was 1.43%,
+representing a decrease of 0.14 percentage point compared to the end of the previous year. We recorded an operating
+income of RMB721.7 billion for 2021, representing an increase of 9.5% compared to the previous year. Our net profit
+amounted to RMB241.9 billion, representing an increase of 11.8% compared to the previous year. The capital adequacy
+ratio was 17.13%, representing an increase of 54 basis points compared to the end of the previous year.
+President's Statement
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+14
+President
+ZHANG Qingsong
+President's Statement
+Annual Report 2021 13
+Chairman of the Board of Directors
+30 March 2022
+GU Shu
+瓜澍
+Looking forward to 2022, though China's economy is under the triple pressure of shrinking demand, disrupted supply
+and weakening expectations, the fundamentals of its strong development resilience, large potential and sound growth
+in the long run remain unchanged, the trend of sustained and stable recovery remains unchanged, and the conditions
+for promoting high-quality development remain unchanged. Agricultural Bank of China will ground our efforts in
+the new development stage, apply the new development philosophy, fully implement the decisions and plans of
+the CPC Central Committee and the State Council and adhere to the general principle of pursuing progress while
+ensuring stability. We will continuously strengthen the financial service for rural revitalization and the real economy,
+maintain stable growth in our credit supply and continuous optimization of our credit structure, pursue development
+and prevent and control risks in a well-coordinated way, continuously enhance the modernization of our governance
+system and capabilities, make a greater contribution to consolidating the achievements of poverty alleviation and
+maintaining stable macroeconomic performance, and play a more significant role in serving the creation of a new
+pattern of development and achieving high-quality development, so as to make new breakthroughs in building
+Agricultural Bank of China into an international first-class commercial banking group.
+Looking back on 2021, we could not have achieved these results without the strong support of our shareholders,
+customers and all sectors of society, as well as our 0.46 million employees' intense and concrete efforts. On behalf of
+the Board of Directors, I would like to extend my sincerest gratitude to all of these people.
+We made our effort to strictly control major financial risk in our operations and development. Proactively
+responding to the risks and challenges due to increasing unstable and uncertain factors, we strengthened the
+construction of a comprehensive risk management system, and enhanced the risk scanning and alert and foresighted
+resolution. We optimized the credit risk management mechanism, implemented the centralized management and the
+whole-process management for credit risk, and improved the system of principal responsible persons for loans and the
+mechanism of accountability evaluation and determination to strengthen their responsibility for loan management.
+The integrated management of market risk across the Group and look-through management of assets relating to
+financial market businesses were strengthened to effectively prevent market risks. We paid close attention to cyber
+and information security management, strengthened the building of disaster recovery capabilities and cyber security
+protection system, and further enhanced capabilities to guarantee our business continuity.
+AGRICULTURAL BANK OF CHINA
+171,755
+Chairman of the Board of Directors
+Operating income
+Foreign Currency
+194,499
+138.94
+122.98
+112.07
+101.77
+106.74
+Percentage of loans to the
+largest single customer² (%)
+Percentage of loans to the
+top ten customers³ (%)
+Loan migration ratio (%)
+≤10
+2.44
+4.07
+4.68
+5.53
+7.26
+11.67
+12.58
+50.95
+55.17
+57.74
+59.15
+11.
+10.
+Calculated by dividing the balance of allowance for impairment losses on loans by the balance of non-performing
+loans (excluding accrued interest), among which, the balance of allowance for impairment losses on loans includes
+the allowance for impairment losses on bills and forfeiting recognized in other comprehensive income. The data in
+the comparative periods were adjusted according to the caliber.
+Calculated by dividing the balance of allowance for impairment losses on loans by the balance of total loans and
+advances to customers (excluding accrued interest), among which, the balance of allowance for impairment losses on
+loans includes the allowance for impairment losses on bills and forfeiting recognized in other comprehensive income.
+The data in the comparative periods were adjusted according to the caliber.
+Calculated by dividing equity attributable to ordinary equity holders of the Bank (excluding other equity instruments)
+at the end of the reporting period by the total number of ordinary shares at the end of reporting period.
+Other Financial Indicators
+Regulatory 31 December
+Standard
+13.83
+2021
+31 December
+2019
+31 December
+2018
+31 December
+2017
+Liquidity ratio (%)
+RMB
+≥25
+62.01
+31 December
+2020
+15.25
+≥25
+Normal
+8.91
+6.94
+Notes: 1.
+2.
+3.
+4.
+Calculated by dividing current assets by current liabilities in accordance with the relevant regulations of the CBIRC.
+Calculated by dividing total loans to the largest single customer (excluding accrued interest) by net capital.
+Calculated by dividing total loans to the top ten customers (excluding accrued interest) by net capital.
+Calculated in accordance with the relevant regulations of the CBIRC, reflecting domestic data only.
+Quarterly Data
+First
+Second
+Third
+Fourth
+2021 (in millions of RMB)
+18.27
+quarter
+quarter
+quarter
+8.82
+20.46
+quarter
+Doubtful
+1.13
+20.99
+3.19
+1.72
+2.13
+Special mention
+18.04
+30.55
+15.90
+1.54
+18.70
+Substandard
+84.10
+83.79
+71.48
+61.48
+16.93
+47.10
+192
+Statements
+Consolidated Financial
+Auditor's Report and
+1.41%
+23.26
+27,752.93
+12,411.80
+210.95
+7,645.05
+25,187.70
+0.00
+Independent Auditor's Report
+949,814
+1,235.01
+1,306,245
+149.16
+KPMG
+Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
+consolidated financial statements of the current period. These matters were addressed in the context of our audit
+of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a
+separate opinion on these matters.
+Opinion
+How the matter was addressed in our audit
+Our audit procedures to assess ECL for loans and
+advances to customers included the following:
+In particular, the determination of the loss allowance is
+heavily dependent on the external macro environment
+and the Group's internal credit risk management strategy.
+The ECL for corporate loans and advances are derived
+from estimates including the historical losses, internal and
+external credit grading and other adjustment factors. The
+ECL for personal loans and advances are derived from
+estimates whereby management takes into consideration
+historical overdue data, the historical loss experience for
+personal loans and other adjustment factors.
+The determination of loss allowance for loans and
+advances to customers using the expected credit loss
+model is subject to the application of a number of
+key parameters and assumptions, including the credit
+risk staging, probability of default, loss given default,
+exposures at default and discount rate, adjustments
+for forward-looking information and other adjustment
+factors. Extensive management judgment is involved in
+the selection of those parameters and the application of
+the assumptions.
+The Group uses an expected credit loss ("ECL") model
+to measure the loss allowance for loans and advances
+to customers in accordance with International Financial
+Reporting Standard 9, Financial instruments.
+The Key Audit Matter
+Refer to the accounting policy in "Note II 8.5 Impairment of financial instruments, Note III 2 Measurement of
+the expected credit loss allowance", and "Note IV 8 Credit impairment losses, Note IV 17 Loans and advances to
+customers, Note IV 44.1 Credit risk" to the consolidated financial statements.
+To the Shareholders of Agricultural Bank of China Limited
+(Incorporated in the People's Republic of China with limited liability)
+Measurement of expected credit losses for loans and advances to customers
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+Key Audit Matters
+We conducted our audit in accordance with International Standards on Auditing ("ISAS") issued by the IASB.
+Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of
+the consolidated financial statements section of our report. We are independent of the Group in accordance with
+the Code of Ethics for Professional Accountants issued by the International Ethics Standards Board for Accountants
+("the Code"), together with any ethical requirements that are relevant to our audit of the consolidated financial
+statements in the People's Republic of China, and we have fulfilled our other ethical responsibilities in accordance with
+these requirements and the Code. We believe that the audit evidence we have obtained is sufficient and appropriate
+to provide a basis for our opinion.
+Basis for Opinion
+In our opinion, the consolidated financial statements give a true and fair view of the consolidated financial position
+of the Group as at 31 December 2021, and of its consolidated financial performance and its consolidated cash
+flows for the year then ended in accordance with International Financial Reporting Standards ("IFRSS") issued by the
+International Accounting Standards Board ("IASB") and have been properly prepared in compliance with the disclosure
+requirements of the Hong Kong Companies Ordinance.
+We have audited the consolidated financial statements of Agricultural Bank of China Limited (the "Bank") and its
+subsidiaries (the "Group") set out on pages 200 to 358, which comprise: the consolidated statement of financial
+position as at 31 December 2021; the consolidated statement of profit or loss; the consolidated statement of
+comprehensive income; the consolidated statement of changes in equity and the consolidated statement of cash
+flows for the year then ended and notes to the consolidated financial statements, including a summary of significant
+accounting policies.
+Independent Auditor's Report
+1,077,913
+In October 2021, the PBOC and the CBIRC published the list of domestic systemically important banks. The following
+disclosure was made in accordance with the relevant requirements of the Methodology and Notification for Assessing
+Systemically Important Banks issued by the PBOC and the CBIRC.
+1,838,106
+11. Derivatives
+9. Number of personal customers (10 thousand)
+10. Number of domestic branch outlets
+8. Number of corporate customers (10 thousand)
+7. Agency and distribution business
+6. Assets under custody
+5. Payments activity
+4. Securities outstanding
+12. Securities measured at fair value
+3. Intra-financial system liabilities
+Substitutability
+1. Total adjusted on- and off-balance sheet assets
+Interconnectedness 2. Intra-financial system assets
+Indicators1
+Category
+Size
+with the assistance of KPMG's IT specialists,
+understanding and assessing the design,
+implementation and operating effectiveness
+of key internal controls of financial reporting
+over the approval, recording and monitoring of
+loans and advances to customers, the credit risk
+staging process and the measurement of ECL for
+loans and advances to customers.
+II. The Indicators for Assessing Domestic Systematic Importance of Banks
+Appendix IV The Indicators for Assessing Systematic Importance of Commercial Banks
+Complexity
+13. Assets of non-bank subsidiaries
+In millions of RMB, unless otherwise stated
+Balance/
+Amount in
+2,989,497
+22,883
+86,219
+799
+10,105,008
+2,854,508
+352,600,045
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+The above indicators are calculated differently from the G-SIBS indicators.
+16. Cross-jurisdictional claims and liabilities
+15. Balance of wealth management products issued by wealth
+management subsidiary
+14. Balance of non-principal guaranteed wealth management
+products issued by the Bank
+1,862,060
+2,802,129
+2,774,190
+29,572,540
+2020
+340,913
+with the assistance of KPMG's financial risk
+specialists, assessing the appropriateness of
+the ECL model in determining loss allowances
+and the appropriateness of the key parameters
+and assumptions in the model, which included
+credit risk staging, probability of default, loss
+given default, exposure at default, adjustments
+for forward-looking information and other
+adjustments, and assessing the appropriateness
+of related key management judgment.
+inspecting management's analysis of the
+structured entity, including qualitative
+analysis and the calculation of the
+magnitude and variability associated with
+the Group's economic interests in the
+structured entity, to assess management's
+judgment over the Group's ability to affect
+its own returns from the structured entity;
+comparing the macroeconomic forward-looking
+information used in the model with market
+information to assess whether they were aligned
+with market and economic development.
+Our opinion on the consolidated financial statements does not cover the other information and we do not express any
+form of assurance conclusion thereon.
+The directors are responsible for the other information. The other information comprises all the information included
+in the annual report other than the consolidated financial statements and our auditor's report thereon.
+Information other than the Consolidated Financial Statements and Auditor's
+Report Thereon
+assessing the reasonableness of the disclosures in
+the consolidated financial statements in relation
+to fair value of financial instruments against
+prevailing accounting standards, including fair
+value hierarchy information and sensitivity to
+key inputs.
+for level 2 and level 3 financial instruments,
+on a sample basis, involving KPMG's valuation
+specialists to assess whether the valuation
+method selected is appropriate with reference
+to the prevailing accounting standards. Our
+procedures included: developing parallel models,
+obtaining inputs independently and verifying
+the inputs; assessing the appropriate application
+of fair value adjustment that form an integral
+part of fair value, by inquiring of management
+about any changes in the fair value adjustment
+methodologies and assessing the appropriateness
+of the inputs applied; and comparing our
+valuation results with that of the Group.
+assessing the level 1 fair value of financial
+instruments, on a sample basis, by comparing
+the fair value applied by the Group with publicly
+available market data.
+assessing the design, implementation
+operating effectiveness of key internal controls
+of financial reporting over the model building,
+model validation, independent valuation and
+front office and back office reconciliations for
+financial instruments.
+and
+How the matter was addressed in our audit
+Our audit procedures to assess measurement of
+financial instruments' fair value included the following:
+We identified measurement of financial instruments' fair
+value as a key audit matter because of the assets and
+liabilities measured at fair value are material to the group
+and the degree of complexity involved in the valuation
+techniques and the degree of judgment exercised by
+management in determining the inputs used in the
+valuation models.
+The valuation of the Group's financial instruments, held
+at fair value, is based on a combination of market data
+and valuation models which often require a considerable
+number of inputs. Many of these inputs are obtained
+from readily available data, in particular for level 1 and
+level 2 financial instruments in the fair value hierarchy,
+the valuation models for which use quoted market
+prices and observable inputs, respectively. Where one or
+more significant unobservable inputs, such as credit risk,
+liquidity and discount rate, are involved in the valuation
+techniques, as in the case of level 3 financial instruments,
+then estimates need to be developed which can involve
+extensive management judgments.
+Financial instruments carried at fair value account for
+a significant part of the Group's assets and liabilities.
+The effect of fair value adjustments of financial
+instruments may impact either the profit or loss or other
+comprehensive income.
+The Key Audit Matter
+Refer to the accounting policy in "Note II 8.3 Determination of fair value, Note III 3 Fair value of financial
+instruments", and "Note IV 46 Fair value of financial instruments" to the consolidated financial statements.
+Measurement of financial instruments' fair value
+Independent Auditor's Report
+AGRICULTURAL BANK OF CHINA
+In connection with our audit of the consolidated financial statements, our responsibility is to read the other
+information and, in doing so, consider whether the other information is materially inconsistent with the consolidated
+financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
+|中国农业银行
+If based on the work we have performed, we conclude that there is a material misstatement of this other information,
+we are required to report that fact. We have nothing to report in this regard.
+Independent Auditor's Report
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+1
+198
+Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based
+on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
+cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material
+uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
+consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
+are based on the audit evidence obtained up to the date of our auditor's report. However, future events or
+conditions may cause the Group to cease to continue as a going concern.
+Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
+related disclosures made by the directors.
+Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
+appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
+Group's internal control.
+Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
+fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
+sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
+resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
+intentional omissions, misrepresentations, or the override of internal control.
+As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism
+throughout the audit. We also:
+Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
+ISAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
+considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
+decisions of users taken on the basis of these consolidated financial statements.
+Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole
+are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
+opinion. This report is made solely to you, as a body, in accordance with section 405 of the Hong Kong Companies
+Ordinance, and for no other purpose. We do not assume responsibility towards or accept liability to any other person
+for the contents of this report.
+Responsibilities for the audit of the Consolidated Financial
+Auditor's
+Statements
+The directors are assisted by the Audit Committee in discharging their responsibilities for overseeing the Group's
+financial reporting process.
+In preparing the consolidated financial statements, the directors are responsible for assessing the Group's ability to
+continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern
+basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic
+alternative but to do so.
+The directors are responsible for the preparation of the consolidated financial statements that give a true and fair view
+in accordance with IFRSS issued by IASB and the disclosure requirements of the Hong Kong Companies Ordinance, and
+for such internal control as the directors determine is necessary to enable the preparation of consolidated financial
+statements that are free from material misstatement, whether due to fraud or error.
+Responsibilities of the Directors for the Consolidated Financial Statements
+Annual Report 2021 197
+for key parameters involving judgement, critically
+assessing input parameters by seeking evidence
+from external sources and comparing to the
+Group's internal records including historical loss
+experience and type of collateral. As part of
+these procedures, we challenged management's
+revisions to estimates and input parameters by
+comparing with prior period and considered the
+consistency of judgement.
+196
+assessing management's judgment over
+whether the structured entity should be
+consolidated or not.
+Measurement of expected credit losses for loans and advances to customers (Continued)
+Independent Auditor's Report
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+evaluating the reasonableness of loss given
+default for selected samples of corporate loans
+and advances to customers that are credit-
+impaired, by checking the financial situation of
+the borrower, the security type, the seniority of
+the claim, the recoverable amount of collateral,
+and other repayment sources of the borrower.
+Evaluating management's assessment of the
+value of any collateral, by comparison with
+evaluation result based on the category, status,
+use of the collateral and market prices. For
+valuation reports of collateral issued by qualified
+third party, we evaluated the competence,
+professional quality and objectivity of the
+external appraiser. We also evaluated the timing
+and means of realisation of collateral, evaluated
+the forecast cash flows, challenged the viability
+of the Group's recovery plans; based on the
+above work, we selected samples and assessed
+the accuracy of calculation for loans and
+advances' credit losses by using the ECL model.
+evaluating the reasonableness of management's
+assessment on whether the credit risk of the
+loan and advance has, or has not, increased
+significantly since initial recognition and whether
+the loan and advance is credit-impaired by
+selecting risk-based samples. We analysed the
+portfolio by industry sector to select samples
+in industries more vulnerable to the current
+economic situation with reference to other
+borrowers with potential credit risk. We checked
+loan overdue information, making enquiries
+of the credit managers about the borrowers'
+business operations, checking borrowers'
+financial information and researching market
+information about borrowers' businesses, to
+check the credit risk status of the borrower, and
+the reasonableness of the loans' credit risk stage.
+for key parameters used in the ECL model
+which were derived from system-generated
+internal data, assessing the accuracy of input
+data by comparing the input data with original
+documents on a sample basis. In addition, we
+involved KPMG's IT specialists to assess the logics
+and compilation of the loans and advances'
+overdue information on a sample basis.
+How the matter was addressed in our audit
+We identified the measurement of ECL of loans and
+advances to customers as a key audit matter because
+of the inherent uncertainty and management judgment
+involved and because of its significance to the financial
+results and capital of the Group.
+Management also exercises judgement in determining
+the quantum of loss given default based on a range
+of factors. These include the financial situation of the
+borrower, the security type, the seniority of the claim, the
+recoverable amount of collateral, and other repayment
+sources of the borrower. Management refers to valuation
+reports of collateral issued by qualified third party valuers
+and considers the influence of various factors including
+the market price, status and use when assessing the value
+of collaterals. The enforceability, timing and means of
+realisation of collateral can also have an impact on the
+recoverable amount of collateral.
+The Key Audit Matter
+Refer to the accounting policy in "Note II 8.5 Impairment of financial instruments, Note III 2 Measurement of
+the expected credit loss allowance", and "Note IV 8 Credit impairment losses, Note IV 17 Loans and advances to
+customers, Note IV 44.1 Credit risk" to the consolidated financial statements.
+Measurement of expected credit losses for loans and advances to customers (Continued)
+Independent Auditor's Report
+194
+Annual Report 2021 193
+assessing the completeness and accuracy of data
+used in the ECL model. For key internal data,
+we compared the total balance of the loans and
+advances' list used by management to assess
+the ECL with the general ledger to check the
+completeness of the data. We also selected
+samples to compare individual loan and advance
+information with the underlying agreements
+and other related documentation, to check the
+accuracy of the data and samples to check the
+accuracy of external data by comparing them
+with public resources.
+Refer to the accounting policy in "Note II 8.5 Impairment of financial instruments, Note III 2 Measurement of
+the expected credit loss allowance", and "Note IV 8 Credit impairment losses, Note IV 17 Loans and advances to
+customers, Note IV 44.1 Credit risk" to the consolidated financial statements.
+assessing the reasonableness of the disclosures
+in the financial statements in relation to the
+measurement of interests in and consolidation of
+structured entities against prevailing accounting
+standards.
+The Key Audit Matter
+performing retrospective review of expected
+credit loss model components and significant
+assumptions, to back-test past estimates element
+against actual outcomes, and assess whether the
+results indicate possible management bias on loss
+estimation.
+inspecting the risk and reward structure of
+the structured entity, including any capital
+or return guarantee, provision of liquidity
+support, commission paid and distribution
+of the returns, to assess management's
+judgment as to the exposure, or rights,
+to variable returns from the Group's
+involvement in such an entity;
+inspecting the related contracts, internal
+establishment documents and information
+disclosed to the investors to understand
+the purpose of the establishment of the
+structured entity and the involvement
+the Group has with the structured entity
+and to assess management's judgment
+over whether the Group has the ability to
+exercise power over the structured entity;
+selecting significant structured entities of each
+key product type and performing the following
+procedures:
+assessing the design, implementation
+operating effectiveness of key internal controls of
+financial reporting over measurement of interests
+in and consolidation of structured entities.
+and
+Our audit procedures to assess the measurement of
+interests in and consolidation of structured entities
+included the following:
+How the matter was addressed in our audit
+We identified the recognition of interests in and
+consolidation of structured entities as a key audit matter
+because of the complex nature of certain of these
+structured entities and because of the judgment exercised
+by management in the qualitative assessment of the terms
+and the nature of each entity.
+In determining whether the Group retain any partial
+interests in a structured entity or should consolidate a
+structured entity, management is required to consider the
+power it possesses, its exposure to variable returns, and
+its ability to use its power to affect returns. These factors
+are not purely quantitative and need to be considered
+collectively in the overall substance of the transactions.
+The Group may acquire an ownership interest in a
+structured entity, through initiating, investing or retaining
+shares in a Wealth Management Products ("WMPS"),
+securitization products, funds, trust investment plans,
+debt investment plans and asset management plans. The
+Group may also retain partial interests in derecognised
+assets due to guarantees or securitisation structures.
+Structured entities are generally created to achieve a
+narrow and well defined objective with restrictions around
+their ongoing activities.
+The Key Audit Matter
+Refer to the accounting policy in "Note II 2 Consolidation, Note III 5 Consolidation of structured entities", and
+"Note IV 41 Structured entities" to the consolidated financial statements.
+Measurement of interests in and consolidation of structured entities
+Independent Auditor's Report
+Annual Report 2021 195
+assessing the reasonableness of the disclosures in
+the financial statements in relation to expected
+credit losses for loans and advances against
+prevailing accounting standards.
+How the matter was addressed in our audit
+190
+2,613,456
+697,246
+5.
+Substitutability
+2,873,467
+4. Securities outstanding
+1,986,697
+3. Intra-financial system liabilities
+1,456,768
+30,788,334
+Payments activity
+2021
+Indicators
+Category
+Size
+In millions of RMB
+The following disclosure was made in accordance with the relevant requirements of the Guidelines for the Disclosure
+of Indicators for Assessing Global Systematic Importance of Commercial Banks promulgated by the CBIRC and the
+Instructions for G-SIB Assessment Exercise issued by the Basel Committee on Banking Supervision.
+The Indicators for Assessing Global Systematic Importance of Commercial
+Banks
+I.
+Appendix IV The Indicators for Assessing Systematic Importance of Commercial Banks
+Annual Report 2021 189
+1. Total adjusted on- and off-balance sheet assets
+Interconnectedness 2. Intra-financial system assets
+407,917,637
+Balance/
+Amount in
+Assets under custody
+518,519
+6.
+14. Cross-jurisdictional liabilities
+13. Cross-jurisdictional claims
+Cross-
+102,265
+12. Level 3 assets
+383,825
+11. Trading and available-for-sale securities
+Jurisdictional
+Activity
+Complexity
+232,941
+9. Trading volume of listed equities and other securities
+7,221,495
+8. Trading volume of fixed income securities
+12,454,663
+2,400,719
+Underwritten transactions
+10. Notional amount of OTC derivatives
+7.
+Surplus reserve
+Capital reserve
+Perpetual bonds
+Other equity instruments
+Ordinary shares
+We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the
+audit and significant audit findings, including any significant deficiencies in internal control that we identify during
+our audit.
+Evaluate the overall presentation, structure and content of the consolidated financial statements, including the
+disclosures, and whether the consolidated financial statements represent the underlying transactions and events
+in a manner that achieves fair presentation.
+Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
+activities within the Group to express an opinion on the consolidated financial statements. We are responsible
+for the direction, supervision and performance of the group audit. We remain solely responsible for our
+audit opinion.
+We also provide the Audit Committee with a statement that we have complied with relevant ethical requirements
+regarding independence, and communicate with them all relationships and other matters that may reasonably be
+thought to bear on our independence and, where applicable, actions taken to eliminate threats or safeguards applied.
+From the matters communicated with the Audit Committee, we determine those matters that were of most
+significance in the audit of the consolidated financial statements of the current period and are therefore the key audit
+matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about
+the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
+report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
+benefits of such communication.
+The engagement partner on the audit resulting in this independent auditor's report is Wong Yuen Shan.
+32
+Game
+Independent Auditor's Report
+23
+Investment revaluation reserve
+349,983
+33
+359,872
+319,875
+79,899
+79,899
+279,973
+239,976
+General reserve
+Retained earnings
+Foreign currency translation reserve
+Equity attributable to equity holders of the Bank
+Non-controlling interests
+Certified Public Accountants
+349,983
+8th Floor, Prince's Building
+Impairment losses on other assets
+Central, Hong Kong
+Year ended 31 December
+Note
+Earnings per share attributable to the ordinary equity holders
+Non-controlling interests
+Equity holders of the Bank
+Attributable to:
+Profit for the year
+Income tax expense
+Profit before tax
+Share of results of associates and joint ventures
+Operating profit
+3333
+Credit impairment losses
+Operating expenses
+Operating income
+Net gain on derecognition of financial assets measured at amortized cost
+Other operating income
+Net gain/(loss) on financial investments
+Net trading gain
+Net fee and commission income
+Fee and commission expense
+Fee and commission income
+Net interest income
+Interest expense
+Interest income
+(Amounts in millions of Renminbi, unless otherwise stated)
+for the year ended 31 December 2021
+Consolidated Statement of Profit or Loss
+Annual Report 2021 199
+30 March 2022
+10 Chater Road
+34
+2,421,359
+173,556
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Total equity attributable to equity holders of the Bank
+Foreign
+Other
+Note Ordinary
+equity
+IV
+shares instruments
+As at 31 December 2020
+Investment
+Capital revaluation
+reserve reserve
+349,983 319,875 173,556 25,987
+Surplus General
+Retained
+currency
+translation
+Consolidated Statement of Changes in Equity
+Non-
+reserve
+reserve
+earnings
+reserve
+Subtotal interests
+196,071 311,449 828,240
+(372) 2,204,789
+5,957
+Total
+2,210,746
+Profit for the year
+Other comprehensive income
+Total comprehensive income for the year
+Capital contribution from equity holders
+241,183
+controlling
+173,556
+Annual Report 2021 203
+Vice Chairman
+35
+34,927
+25,987
+36
+220,792
+196,071
+37
+351,616
+311,449
+925,955
+828,240
+(2,096)
+(372)
+2,414,605
+The accompanying notes form an integral part of these consolidated financial statements.
+2,204,789
+5,957
+Total equity
+IV
+2,210,746
+Total equity and liabilities
+29,069,155
+27,205,047
+Approved and authorized for issue by the Board of Directors on 30 March 2022.
+每行
+业银行
+有限公司
+瓜澍
+Chairman
+収青井
+6,754
+2021
+14,241
+1
+7,320
+(85)
+(167)
+The accompanying notes form an integral part of these consolidated financial statements.
+Non-controlling interests
+Total comprehensive income attributable to:
+Equity holders of the Bank
+Total comprehensive income for the year
+Other comprehensive income, net of tax
+Subtotal
+29
+115
+Income tax impact for fair value changes on other equity investments
+designated at fair value through other comprehensive income
+(114)
+(282)
+Fair value changes on other equity investments designated at fair value
+through other comprehensive income
+Items that will not be reclassified subsequently to profit or loss:
+(6,252)
+7,487
+(2,591)
+(1,724)
+Subtotal
+Foreign currency translation differences
+1,440
+(2,865)
+other debt instrument investments at fair value through other
+comprehensive income
+Income tax impact for fair value changes and loss allowance on
+3,754
+3,572
+(8,855)
+(6,337)
+249,256
+210,063
+248,399
+857
+15
+Derivative financial assets
+546,948
+446,944
+14
+Placements with and loans to banks and other financial institutions
+87,357
+434,185
+218,500
+96,504
+Precious metals
+13
+2,437,275
+2,321,406
+12
+8,504
+23
+Cash and balances with central banks
+Assets
+2020
+As at 31 December
+2021
+IV
+Note
+(Amounts in millions of Renminbi, unless otherwise stated)
+as at 31 December 2021
+Consolidated Statement of Financial Position
+202
+Annual Report 2021 201
+210,063
+249,256
+209,637
+426
+Deposits with banks and other financial institutions
+2020
+Loss allowance on other debt instrument investments at fair value
+through other comprehensive income
+2021
+241,936
+(260,275)
+68
+659,332
+721,746
+30,614
+34,143
+5
+11
+(7,312)
+15,035
+16,405
+3 4
+74,545
+80,329
+2
+(16,621)
+91,166
+98,721
+(18,392)
+241,183
+21
+22
+545,079
+577,987
+1
+(385,853)
+(430,027)
+1
+930,932
+1,008,014
+(229,897)
+(165,886)
+(164,699)
+(114)
+Year ended 31 December
+Fair value changes on other debt instrument investments at fair value
+through other comprehensive income
+Items that may be reclassified subsequently to profit or loss:
+Other comprehensive income:
+Profit for the year
+for the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Consolidated Statement of Comprehensive Income
+0.59
+0.65
+216,400
+241,936
+215,925
+475
+241,183
+753
+216,400
+2020
+216,400
+241,936
+(53,944)
+265,050
+295,880
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+200
+The accompanying notes form an integral part of these consolidated financial statements.
+11
+Basic and diluted
+of the Bank (expressed in RMB yuan per share)
+518
+264,532
+295,471
+409
+(204)
+(48,650)
+753
+The IASB has issued amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 that address
+issues that arise during the reform of an interest rate benchmark, including the replacement of
+one benchmark with an alternative one.
+8,940
+1
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
+The head office and domestic branches of the Bank and its subsidiaries operating in the Chinese mainland are
+referred to as the "Domestic Operations". Branches and subsidiaries registered and operating outside of the
+Chinese mainland are referred to as the "Overseas Operations".
+The principal activities of the Bank and its subsidiaries (collectively, the "Group") include Renminbi ("RMB") and
+foreign currency deposits, loans, clearing and settlement services, assets custodian services, fund management,
+financial leasing services, insurance services and other services as approved by relevant regulators, and the
+provision of related services by its overseas establishments as approved by the respective local regulators.
+The Bank operates under financial services certificate No. B0002H111000001 issued by the China Banking
+and Insurance Regulatory Commission (the "CBIRC"), and business license No. 911100001000054748 issued
+by Beijing Administration of Industry and Commerce. The registered office of the Bank is located at No. 69
+Jianguomen Nei Avenue, Dongcheng District, Beijing, the PRC.
+Agricultural Bank of China Limited (the "Bank") is the successor entity to the Agricultural Bank of China
+(the "Predecessor Entity") which was a wholly state-owned commercial bank approved for setup by the People's
+Bank of China (the "PBOC") and founded on 23 February 1979 in the People's Republic of China (the "PRC").
+On 15 January 2009, the Bank was established after the completion of the financial restructuring of the
+Predecessor Entity. The Bank's establishment was authorized by the PBOC. The Bank was listed on the Shanghai
+Stock Exchange and the Stock Exchange of Hong Kong Limited on 15 July 2010 and 16 July 2010, respectively.
+||
+I GENERAL INFORMATION
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Basis of preparation
+Notes to the Consolidated Financial Statements
+| 中国农业银行
+The accompanying notes form an integral part of these consolidated financial statements.
+(315,177)
+(342,465)
+Interest paid
+655,726
+717,022
+NET CASH FLOWS FROM OPERATING ACTIVITIES INCLUDE:
+Interest received
+1,175,153
+AGRICULTURAL BANK OF CHINA
+1,124,762
+Statement of compliance
+Basis of preparation
+Notes
+(i)
+Interest Rate Benchmark Reform
+Phase 2
+IFRS 7, IFRS 4 and IFRS 16
+(2) Amendment to IFRS 16
+(1) Amendments to IFRS 9, IAS 39,
+Covid-19-Related Rent Concessions
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+208
+The consolidated financial statements have been prepared in accordance with International Financial
+Reporting Standards ("IFRSS"), as issued by the International Accounting Standards Board ("IASB").
+In addition, the consolidated financial statements include applicable disclosures required by the Rules
+Governing the Listing of Securities on the Stock Exchange of Hong Kong Limited and by the Hong Kong
+Companies Ordinance for this financial year and the comparative period.
+The Group has adopted the following International Financial Reporting Standards ("IFRSS") and
+amendments issued by the International Accounting Standards Board ("IASB"), that are mandatorily
+effective for the current reporting period.
+Basic of preparation (Continued)
+1
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+Annual Report 2021 207
+The preparation of financial statements in conformity with IFRSS requires the use of certain critical
+accounting estimates. It also requires management to exercise its judgment in the process of applying the
+Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where
+assumptions and estimates are significant to the consolidated financial statements are disclosed in Note III.
+The consolidated financial statements have been prepared on the historical cost basis except for certain
+financial instruments which are measured at fair value, as explained in the accounting policies set out
+below. Historical cost is generally based on the fair value of consideration given in exchange for assets and
+that is received (or in some circumstances the amount expected to be paid) with respect to liabilities.
+1.1 Other amendments to the standards effective in 2021 relevant to and adopted by the
+Group
+(i)
+38
+(19,035)
+1,731,396
+1,635,127
+(11)
+120,000
+40,000
+(3)
+Cash payments for transaction cost of other equity instruments issued
+Cash received from debt securities issued
+(469,260)
+(331,237)
+(22,844)
+Repayments of debt securities issued
+(1,676)
+(2,178,694)
+(2,146)
+(26,033)
+Contribution from issues of other equity instruments
+CASH FLOWS FROM FINANCING ACTIVITIES
+NET CASH USED IN INVESTING ACTIVITIES
+Cash paid for purchase of property, equipment and other assets
+8,350
+5,790
+Cash received from disposal of property, equipment and other assets
+Cash paid for purchase of investment securities
+Increase in investment in associates and joint ventures
+2,793
+(2,669,040)
+CASH AND CASH EQUIVALENTS AS AT 31 DECEMBER
+(1,497,003)
+Cash payments for interest on debt securities issued
+(12,772)
+1,454,581
+241,936
+(260,393)
+(37,619)
+269,803
+54,003
+NET DECREASE IN CASH AND CASH EQUIVALENTS
+CASH AND CASH EQUIVALENTS AS AT 1 JANUARY
+EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
+CASH EQUIVALENTS
+NET CASH FROM FINANCING ACTIVITIES
+(1,468,391)
+25
+(73,192)
+Dividends paid
+37
+(4,968)
+(5,010)
+Cash payments for principal portion and interest portion of lease liability
+Capital contribution from non-controlling interests
+(6)
+(35,050)
+(40,429)
+(39)
+Cash payments for transaction cost of debt securities issued
+(78,677)
+(ii)
+Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: Interest rate benchmark
+reform-phase 2.
+The Phase 2 amendments provide additional temporary reliefs from applying specific IAS 39
+and IFRS 9 hedge accounting requirements to hedging relationships directly affected by IBOR
+reform, including: 1. For instruments to which the amortised cost measurement applies, the
+amendments require entities, as a practical expedient, to account for a change in the basis for
+determining the contractual cash flows as a result of IBOR reform by updating the effective
+interest rate using the guidance in paragraph B5.4.5 of IFRS 9. As a result, no immediate gain
+or loss is recognised. 2. Require an entity to prospectively cease to apply the Phase 1 reliefs to
+a non contractually specified risk component at the earlier of when changes are made to the
+non contractually specified risk component, or when the hedging relationship is discontinued.
+3. Additional temporary exceptions from applying specific hedge accounting requirement.
+4. Additional IFRS 7 disclosure requirements related to IBOR reform. The adoption of the
+amendments does not have a significant impact on the consolidated financial statements of
+the Group.
+Deferred tax liabilities
+Debt securities issued
+20,372,901
+21,907,127
+29
+109,195
+36,033
+28
+Financial assets sold under repurchase agreements
+Due to customers
+Other liabilities
+65,282
+15
+27,817
+15,860
+27
+390,660
+291,105
+26
+1,394,516
+1,622,366
+19,337
+25
+Total liabilities
+1,507,657
+Equity
+2020
+2021
+IV
+As at 31 December
+Note
+(Amounts in millions of Renminbi, unless otherwise stated)
+as at 31 December 2021
+Consolidated Statement of Financial Position (Continued)
+30
+AGRICULTURAL BANK OF CHINA
+24,994,301
+26,647,796
+524,590
+500,443
+31
+334
+655
+22
+1,371,845
+| 中国农业银行
+Deposits from banks and other financial institutions
+Placements from banks and other financial institutions
+Financial liabilities at fair value through profit or loss
+Derivative financial liabilities
+737,161
+747,213
+Other debt instrument and other equity investments
+583,069
+5,684,220
+6,372,522
+Debt instrument investments at amortized cost
+460,241
+Financial assets at fair value through profit or loss
+18
+Financial investments
+14,552,433
+at fair value through other comprehensive income
+Investment in associates and joint ventures
+Property and equipment
+16,454,503
+Loans and advances to customers
+816,206
+837,637
+16
+Financial assets held under resale agreements
+61,937
+21,978
+On 31 March 2021, the IASB issued amendments to IFRS 16: to provide a one-year extension to
+one of the eligibility criteria for the use of the practical expedient (the "PE"). As a result, rent
+concessions that reduce only lease payments originally due on or before 30 June 2022 would
+become eligible (compared to 30 June 2021 as in PE 2020). The adoption of the amendments
+does not have a significant impact on the consolidated financial statements of the Group.
+(ii) Amendment to IFRS 16: Covid-19-Related Rent Concessions
+17
+1,397,280
+1,555,370
+Goodwill
+24
+27,205,047
+29,069,155
+151,292
+135,636
+23
+133,355
+1,381
+1,381
+143,027
+22
+151,154
+8,865
+8,297
+153,299
+21
+20
+22 23
+Borrowings from central banks
+Liabilities
+Total assets
+Other assets
+Deferred tax assets
+Cash received from disposal of investment in associates and joint ventures
+228,563
+1,175,153
+1,987,387
+426
+(2,591) 209,637
+215,925
+(6,337)
+(49)
+(6,288)
+(2,591)
+475 216,400
+215,925
+210,063
+215,925
+2,219 1,948,355
+741,101
+173,556 29,684 174,910 277,016
+199,886
+349,983
+2,421,359
+6,754
+(2,096) 2,414,605
+925,955
+5,506 1,953,861
+34,927 220,792 351,616
+119,989
+120,014
+828,240
+247,470
+311,449
+25,987 196,071
+349,983 319,875 173,556
+As at 31 December 2020
+(9,530)
+(9,530)
+(9,530)
+25
+10
+(63,662)
+(63,662)
+10
+(34,433)
+34,433
+37
+(21,161)
+21,161
+36
+(63,662)
+173,556
+349,983 359,872
+119,989
+36
+39,997
+10
+33322
+As at 31 December 2021
+Dividends paid to other equity instrument holders
+Dividends paid to non-controlling equity holders
+Appropriation to general reserve
+Dividends paid to ordinary equity holders
+Appropriation to surplus reserve
+40,034
+340,167
+37
+249,256
+857
+(1,724) 248,399
+241,183
+8,940
+7,320
+104
+7,216
+(1,724)
+39,997
+24,721
+(24,721)
+40,167
+33329
+Dividends paid to other equity instrument holders
+Dividends paid to ordinary equity holders
+Appropriation to general reserve
+Appropriation to surplus reserve
+Capital contribution from equity holders
+(3,697)
+Total comprehensive income for the year
+(3,697)
+Other comprehensive income
+Profit for the year
+As at 31 December 2019
+(97)
+(97)
+(13,798)
+(13,798)
+(13,798)
+(64,782)
+(64,782)
+(64,782)
+(40,167)
+(372) 2,204,789
+5,957
+Preference shares
+The accompanying notes form an integral part of these consolidated financial statements.
+35,746
+Revaluation loss/(gain) on financial instruments at fair value
+through profit or loss
+4,019
+(2,968)
+Net gain on investment securities
+(1,285)
+(750)
+Share of result of associates and joint ventures
+(409)
+(518)
+Net gain on disposal of property, equipment and other assets
+Net foreign exchange loss
+(921)
+(1,003)
+16,877
+26,972
+286,342
+267,988
+Net change in operating assets and operating liabilities:
+Net decrease/(increase) in balances with central banks, deposits with banks and
+other financial institutions
+39,188
+313,337
+204
+(238,995)
+114
+IV
+Year ended 31 December
+2021
+2020
+CASH FLOWS FROM OPERATING ACTIVITIES
+Profit before tax
+Adjustments for:
+Amortization of intangible assets and other assets
+Depreciation of property, equipment and right-of-use assets
+Credit impairment losses
+Impairment losses on other assets
+Interest income arising from investment securities
+Interest expense on debt securities issued
+295,880
+265,050
+2,322
+2,147
+17,475
+165,886
+17,404
+164,699
+(252,804)
+Note
+(330,552)
+Net decrease/(increase) in financial assets held under resale agreements
+Net increase in loans and advances to customers
+298,362
+2,859
+Income tax paid
+NET CASH FROM/(USED IN) OPERATING ACTIVITIES
+(58,747)
+(63,795)
+239,615
+(60,936)
+Annual Report 2021 205
+206
+Consolidated Statement of Cash Flows (Continued)
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Note
+IV
+Year ended 31 December
+2021
+2020
+CASH FLOWS FROM INVESTING ACTIVITIES
+Cash received from disposal/redemption of investment securities
+Cash received from investment income
+1,619,583
+Cash from operations
+Net (increase)/decrease in placements with and loans to banks and
+other financial institutions
+253,209
+(Decrease)/increase in other operating liabilities
+(4,992)
+48,919
+29,377
+(49,415)
+(2,026,482)
+(1,832,315)
+Net increase in borrowings from central banks
+10,483
+128,514
+Net (decrease)/increase in placements from banks and
+other financial institutions
+(99,232)
+65,941
+Net increase in due to customers and deposits from banks and
+other financial institutions
+1,712,770
+1,375,364
+Decrease in other operating assets
+173,587
+94,748
+(116,370)
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Consolidated Statement of Cash Flows
+2,210,746
+204
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Notes
+(i)
+1 January 2022
+1 January 2022
+1 January 2022
+(iv)
+Classification of Liabilities as Current
+or Non-current
+1 January 2023
+(v)
+1 January 2023
+1 January 2022
+(vi)
+Disclosure of Accounting Policies
+1 January 2023
+(vii)
+1 January 2023
+(viii)
+1 January 2023
+Insurance Contracts
+Effective for
+annual periods
+beginning on or after
+(Amounts in millions of Renminbi, unless otherwise stated)
+IASB Annual Improvements
+2018-2020 cycle
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+||
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+1
+Basis of preparation (Continued)
+1.2 Standards and amendments relevant to the Group that are not yet effective and have
+not been adopted before their effective dates in 2021
+The Group has not adopted the following new or amended standards and interpretations issued by
+the IASB and the International Financial Reporting Interpretations Committee ("IFRIC"), that have
+been issued but are not yet effective.
+(1) Amendments to IFRS 3
+(2) Amendments to IAS 37
+(3) Amendments to IAS 16
+(4) Amendments to IFRS 1,
+IFRS 9, IFRS 16 and IAS 41
+(5) Amendments to IAS 1
+(6) Amendments to IFRS 17
+(7) Amendments to IAS 1 and IFRS
+Practice Statement 2
+(8) Amendments to IAS 8
+(9) Amendments to IAS 12
+(10) Amendments to IFRS 10
+and IAS 28
+(i)
+Onerous Contracts ― Cost of
+Fulfilling a Contract
+Property, Plant and Equipment -
+Proceeds before Intended Use
+Reference to the Conceptual
+Framework
+Definition of Accounting
+Estimates
+The effective date has now
+been deferred
+||
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+1
+Basis of preparation (Continued)
+1.2 Standards and amendments relevant to the Group that are not yet effective and have
+not been adopted before their effective dates in 2021 (Continued)
+(v) Amendments to IAS 1: Classification of Liabilities as Current or Non-current (Continued)
+The amendment changes the guidance for the classification of liabilities as current or non-current.
+It could affect the classification of liabilities, particularly for entities that previously considered
+management's intentions to determine classification and for some liabilities that can be converted
+into equity. All entities should reconsider their existing classification in the light of the amendment
+and determine whether any changes are required. The Group anticipates that the adoption of the
+amendments will have no impact on the Group's consolidated financial statements.
+(vi) Amendments to IFRS 17: Insurance Contracts
+IFRS 17 was issued in May 2017 as replacement for IFRS 4 Insurance Contracts. IFRS 17 is issued
+to resolve the comparison problems created by IFRS 4 by setting out a single principle-based
+standard for the recognition, measurement, presentation and disclosure of insurance contracts in
+the financial statements of the issuers of those contracts.
+The IASB issued the amendments to IFRS 17: Insurance contracts on 25 June 2020, together
+with an amendment to IFRS 4, so that eligible insurers can still apply IFRS 9 alongside IFRS 17.
+This concluded the IASB's targeted amendments to IFRS 17 which aimed to ease implementation
+of the standard by reducing implementation costs and making it easier for entities to explain,
+to investors and others, the results from applying IFRS 17. IFRS 17 should be applied to annual
+reporting periods beginning on or after 1 January 2023, with earlier application permitted, and
+the amendments should be applied at the same time.
+The Group has not completed its assessment of the impact on the Group's consolidated financial
+statements of adopting IFRS 17.
+(vii) Amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of Accounting Policies
+The IASB issued the amendments to IAS 1 and IFRS Practice Statement 2: Disclosure of
+Accounting Policies. The amendments include: An entity will be required to disclose its material
+accounting policy information instead of its significant accounting policies; Additional guidance
+has been provided on how an entity can identify material accounting policy information;
+and IFRS Practice Statement 2 Making Materiality Judgements has been amended by adding
+guidance and examples to explain and illustrate the application of the "four-step materiality
+process" to accounting policy information. The Group anticipates that the adoption of the
+amendments will not have a significant impact on the Group's consolidated financial statements.
+(viii) Amendments to IAS 8: Definition of Accounting Estimates
+The IASB issued the amendments to IAS 8: Definition of Accounting Estimates. The amendment
+defined the "Accounting estimates" are now as "monetary amounts in financial statements that
+are subject to measurement uncertainty". Entities develop accounting estimates accounting
+policies require items in financial statements to be measured in a way that involves measurement
+uncertainty. The definition of "a change in accounting estimate" is removed. The amendment
+also clarifies that the effects of a change in an input or a measurement technique used to
+develop an accounting estimate are changes in accounting estimates unless they result from the
+correction of prior period errors. The Group anticipates that the adoption of the amendments
+will not have a significant impact on the Group's consolidated financial statements.
+Annual Report 2021 211
+212
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Deferred Tax related to Assets
+and Liabilities arising from a
+Single Transaction
+Sale or Contribution of Assets
+between an Investor and its
+Associate or Joint Venture
+Notes to the Consolidated Financial Statements
+| 中国农业银行
+Amendments to IFRS 3: Reference to the Conceptual Framework
+The IASB issued amendments to IFRS 3: Reference to the Conceptual Framework. The
+amendments have updated IFRS 3, 'Business combinations', to refer to the 2018 Conceptual
+Framework for Financial Reporting, in order to determine what constitutes an asset or a liability
+in a business combination. In addition, the Board added a new exception in IFRS 3 for liabilities
+and contingent liabilities. The Board has also clarified that the acquirer should not recognise
+contingent assets, as defined in IAS 37, at the acquisition date. The Group anticipates that the
+adoption of the amendments will not have a significant impact on the Group's consolidated
+financial statements.
+Annual Report 2021 209
+210
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+1
+Basis of preparation (Continued)
+1.2 Standards and amendments relevant to the Group that are not yet effective and have
+not been adopted before their effective dates in 2021 (Continued)
+(ii) Amendments to IAS 37: Onerous Contracts - Cost of Fulfilling a Contract
+The IASB issued amendments to IAS 37: Cost of Fulfilling a Contract. The amendments clarify
+the meaning of 'costs to fulfil a contract', they explain that the direct cost of fulfilling a contract
+comprises: the incremental costs of fulfilling that contract and; an allocation of other costs
+that relate directly to fulfilling contracts. The amendments also clarify that, before a separate
+provision for an onerous contract is established, an entity recognises any impairment loss that
+has occurred on assets used in fulfilling the contract, rather than on assets dedicated to that
+contract. The amendments could result in the recognition of more onerous contract provisions,
+because previously some entities only included incremental costs in the costs to fulfil a contract.
+The Group anticipates that the adoption of the amendments will not have a significant impact
+on the Group's consolidated financial statements.
+(iii) Amendments to IAS 16: Property, Plant and Equipment - Proceeds before Intended Use
+The IASB issued amendments to IAS 16: Proceeds before Intended Use. The amendments
+prohibit an entity from deducting from the cost of an item of property, plant and equipment
+any proceeds received from selling items produced while the entity is preparing the asset for
+its intended use. The amendment also clarifies that an entity is 'testing whether the asset is
+functioning properly' when it assesses the technical and physical performance of the asset. The
+financial performance of the asset is not relevant to this assessment. An asset might therefore
+be capable of operating as intended by management and subject to depreciation before it has
+achieved the level of operating performance expected by management. The amendment requires
+entities to separately disclose the amounts of proceeds and costs relating to items produced
+that are not an output of the entity's ordinary activities. An entity should also disclose the line
+item in the statement of comprehensive income where the proceeds are included. The Group
+anticipates that the adoption of the amendments will not have a significant impact on the
+Group's consolidated financial statements.
+(iv) Amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41: IASB Annual Improvements 2018-2020
+cycle
+The IASB issued amendments to IFRS 1, IFRS 9, IFRS 16 and IAS 41: Annual improvements
+2018-2020 cycle, which include optional relief for the measurement of cumulative
+translation differences to those first-time adopters, clarifying fees included when assessing
+the derecognition of financial liability, the amendment to illustrative example accompanying
+HKFRS 16, 'Leases', and the removement of the requirement to exclude taxation cash flows
+when measuring fair value. The Group anticipates that the adoption of the amendments will not
+have a significant impact on the Group's consolidated financial statements.
+(v) Amendments to IAS 1: Classification of Liabilities as Current or Non-current
+The IASB issued a narrow-scope amendment to IAS 1 to clarify that liabilities are classified
+as either current or non-current, depending on the rights that exist at the end of the
+reporting period.
+AGRICULTURAL BANK OF CHINA
+(ix)
+(Amounts in millions of Renminbi, unless otherwise stated)
+1
+Value-added Taxes ("VAT")
+7
+Taxation (Continued)
+6
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+||
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+216
+Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax
+assets against current tax liabilities, when they relate to income taxes levied by the same taxation authority
+and the Group intends to settle its current tax assets and liabilities on a net basis.
+The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from
+the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying
+amount of its assets and liabilities. Current and deferred tax is recognized in the consolidated income
+statement, except when it relates to items that are recognized in other comprehensive income or directly
+in equity, in which case the current and deferred tax is also recognized in other comprehensive income or
+directly in equity, respectively.
+Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in
+which the liability is settled or the asset realized, based on tax rate (and tax laws) that have been enacted or
+substantively enacted by the end of the reporting period.
+The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced
+to the extent that the temporary difference will not reverse in the foreseeable future or it is no longer
+probable that sufficient taxable profits will be available to allow all or part of the asset to be utilized.
+The Group mainly provides financial services such as loan services, direct-charge financial services, insurance
+services and transfer of financial commodities, which are subject to the VAT rate of 6%. For other services,
+VAT is calculated and paid in accordance with the tax rates stipulated in the tax law.
+Deferred tax liabilities are recognized for taxable temporary differences associated with investments in
+subsidiaries associates and joint ventures, except where the Group is able to control the timing of reversal
+of the temporary difference and it is probable that the temporary difference will not reverse in the
+foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such
+investments and interests are only recognized to the extent that it is probable that there will be sufficient
+taxable profits against which to utilize the benefits of the temporary differences and they are expected to
+reverse in the foreseeable future.
+Deferred tax
+The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as
+reported in the consolidated income statement because it excludes items of income or expense that are
+taxable or deductible in other years and items that are never taxable or deductible. The Group's liability for
+current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the
+reporting period.
+Current tax
+Income tax comprises current and deferred income tax.
+Taxation
+6
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+II
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+Annual Report 2021 215
+For the purposes of presenting the consolidated financial statements, the assets and liabilities of the
+Group's Overseas Operations are translated into the presentation currency of the Group at the rate of
+exchange prevailing at the end of the reporting period, and their income and expenses are translated at
+exchange rates at the date of the transactions, or a rate that approximates the exchange rates of the date
+of the transaction. Exchange differences arising, if any, are recognized in other comprehensive income
+and accumulated in equity under the foreign currency translation reserve and non-controlling interests, as
+appropriate. The accumulated foreign currency translation reserve related to the Overseas Operations will
+be reclassified from equity to the consolidated income statement on disposal of all or part of the Overseas
+Operations.
+Exchange differences arising on the retranslation of non-monetary items carried at fair value are included
+in the consolidated income statement for the period except for exchange differences arising on the
+retranslation of non-monetary items in respect of which gains and losses are recognized directly in other
+comprehensive income, in which cases, the exchange differences are also recognized directly in other
+comprehensive income.
+Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities
+in the consolidated financial statements and the corresponding tax base used in the computation of taxable
+profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax
+assets are generally recognized for all deductible temporary differences to the extent that it is probable
+that taxable profits will be available against which those deductible temporary differences can be utilized.
+Deferred tax assets and liabilities are not recognized for temporary difference related to goodwill or the
+initial recognition (other than in a business combination) of other assets and liabilities in a transaction that
+affects neither taxable profit nor accounting profit.
+(ii) changes in the fair value of monetary assets denominated in foreign currency classified as financial
+investments at fair value through other comprehensive income are analyzed between translation
+differences resulting from changes in the amortized cost of the monetary assets and other changes in
+the carrying amount. Translation differences related to changes in the amortized cost are recognized
+in the consolidated income statement, and other changes in the carrying amount are recognized in
+other comprehensive income.
+Pursuant to the "Circular of the Ministry of Finance and the State Administration of Taxation on Further
+Clarification of Relevant Policies Applicable to the Financial Sector in the Comprehensive Implementation
+of the VAT Pilot Programs" (Cai Shui [2016] No. 46), the Bank elected to adopt a simplified methodology
+to calculate VAT at 3% on interest income derived from loans granted to farming households, rural
+enterprises and other rural institutions by county-level sub-branches included in the Bank's pilot programs
+of the County Area Banking Division, including those under the Bank's provincial branches in provinces,
+autonomous regions, municipalities directly under the central government and municipalities with
+independent budgetary status as well as those under the Xinjiang Production and Construction Corps
+Branch.
+Employee benefits are all forms of consideration given and other relevant expenditure incurred by the Group
+in exchange for services rendered by employees or for termination of the employment contracts. These
+benefits include short-term employee benefits, post-employment benefits and early retirement benefits.
+Short-term employee benefits
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+(iii) Fair value through profit or loss ("FVPL").
+(ii) Fair value through other comprehensive income ("FVOCI"); or
+(i) Amortized cost ("AC");
+Financial assets are classified in the following measurement categories based on the Group's
+business model for managing the asset and the cash flow characteristics of the assets:
+(1) Financial assets
+At initial recognition, the Group measures a financial asset or financial liability at its fair value.
+Transaction costs of financial assets and financial liabilities carried at fair value through profit or loss
+are expensed in profit or loss. For other classes of financial assets or financial liabilities, the relevant
+transaction costs are included in the initial recognition amount.
+For purchases or sales of financial assets in a regular way, the related assets and liabilities are
+recognized or sold assets are derecognized at the trade date, along with the recognition of gains or
+losses on disposal and the receivables due from the buyer. The trade date is the date on which the
+Group commits to purchase or sell the financial asset.
+Financial assets or financial liabilities are recognized when the Group becomes a party to the
+contractual provisions of the financial instrument.
+8.1 Initial recognition, classification and measurement of financial instruments
+Financial instruments
+8
+In accordance with the Ministry of Finance and the State Administration of Taxation's "Circular regarding
+the Value-added Taxes Policies for Financial, Real Estate Development and Education Ancillary and Other
+Services" (Cai Shui [2016] No. 140), the "Supplementary Circular regarding Issues concerning Value-added
+Taxes Policies for Asset Management Products" (Cai Shui [2017] No. 2) and the "Circular on the Relevant
+Issues concerning Value-added Tax Levied on Asset Management Products" (Cai Shui [2017] No. 56), the
+Group shall pay VAT at 3% for taxable asset management activities undertaken after 1 January 2018.
+Employee benefits
+The accounting treatment of the Group's early retirement benefits is in accordance with termination
+benefits as determined in IAS 19. The liability is recognized for the early retirement benefit payments from
+the date of early retirement to the normal retirement date when the criteria for recognition as termination
+benefit is met with a corresponding charge in the consolidated income statement. Differences arising
+from changes in assumptions and estimates of the present value of the liabilities are recognized in the
+consolidated income statement when incurred.
+Early retirement benefits
+The employees of the Bank's head office and domestic branches ("Domestic Institutions") participate in
+an annuity scheme established by the Bank (the "Annuity Scheme"). The Bank pays annuity contributions
+with reference to employees' salaries, and such contributions are expensed in the consolidated income
+statement or capitalized as cost of related assets when incurred. The Bank has no further obligation if the
+Annuity Scheme does not have sufficient assets for the payment of any retirement benefits to employees
+funded by the Annuity Scheme.
+Post-employment benefits (Continued)
+7 Employee benefits (Continued)
+||
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+218
+Annual Report 2021 217
+Contributions to the basic pensions and unemployment insurance plan are recognized in the consolidated
+income statement for the period or capitalization as cost of related assets in which the related payment
+obligation is incurred.
+The Group's post-employment benefits are primarily the payments for basic pensions and unemployment
+insurance related to government mandated social welfare programs, as well as the annuity scheme
+established. All these post-employment benefits are defined contribution plans, under which, the Group
+makes fixed contributions into a separate fund and will have no legal or constructive obligation to make
+further contributions if the fund does not hold sufficient assets to pay all employee benefits relating to
+employee services in the current and prior periods.
+Post-employment benefits
+Short-term employee benefits include salaries, bonuses, allowance and subsidies, staff welfare, medical
+insurance, employment injury insurance, maternity insurance, housing funds as well as labor union fees and
+staff education expenses. In the reporting period in which an employee has rendered services, the Group
+recognizes the short-term employee benefits payable for those services as a liability with a corresponding
+increase in the expenses in the consolidated income statement or capitalization as cost of related assets.
+Early retirement benefits have been paid to those employees who accept voluntary retirement before the
+normal retirement date, as approved by management. The related benefit payments are made from the
+date of early retirement to the normal retirement date.
+(i) exchange differences arising on a monetary item that forms part of the Bank's net investment in the
+Overseas Operations;
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+In preparing the financial statements of each individual Group entity, transactions in currencies other
+than the functional currency of that entity (foreign currencies) are recorded in the respective functional
+currency (i.e. the currency of the primary economic environment in which the entity operates) at the rates
+of exchange prevailing at the dates of the transactions. At the end of the reporting period, monetary items
+denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items
+carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at
+the date when the fair value was determined. Non-monetary items that are measured at historical cost in a
+foreign currency are not retranslated.
+Non-controlling interests that represent ownership interests in the acquiree, and entitle their holders to
+a proportionate share of the entity's net assets in the event of liquidation are accounted for at either fair
+value or the non-controlling interests' proportionate share in the recognized amounts of the acquiree's
+identifiable net assets. The choice of measurement basis is made on a transaction-by-transaction basis.
+Goodwill
+At the acquisition date, irrespective of non-controlling interests, the identifiable assets acquired and
+liabilities and contingent liabilities assumed are recognized at their fair values; except that deferred tax
+assets or liabilities, and assets or liabilities related to employee benefit arrangements are recognized and
+measured in accordance with IAS 12 — Income Taxes and IAS 19 - - Employee Benefits, respectively.
+Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred
+in a business combination is measured at fair value, which is calculated as the sum of the acquisition date
+fair value of the assets transferred by the Group, liabilities incurred or assumed by the Group, and any
+equity interests issued by the Group. Acquisition related costs are recognized in the consolidated income
+statement as incurred.
+Business combinations
+In the Bank's statement of financial position, its investments in subsidiaries are stated at cost, less
+impairment losses, if any.
+The carrying amount of non-controlling interests is the amount of those interests at initial recognition plus
+the non-controlling interests' share of subsequent changes in equity. Further, total comprehensive income
+of a subsidiary is attributed, based on the proportion of their respective holdings, to the equity holders of
+the Bank and to the non-controlling interests, even if this results in the non-controlling interests having a
+deficit balance.
+Basis of consolidation (Continued)
+Consolidation (Continued)
+2
+II SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+Goodwill represents the excess of the cost of an acquisition less the fair value of the Group's share of
+the net identifiable assets of acquired subsidiaries and associates at the date of acquisition. Goodwill on
+acquisitions of subsidiaries is presented separately in the consolidated statement of financial position.
+Non-controlling interests of consolidated subsidiaries are presented separately from the controlling party's
+equity therein.
+Adjustments are made to the financial statements of subsidiaries, where appropriate, to consistently reflect
+the accounting policies of the Group.
+Income and expense of subsidiaries acquired or disposed of during the year are included in the consolidated
+income statement from the date of acquisition or up to the date on which control ceases, respectively.
+The consolidated financial statements include the financial statements of the Bank and its subsidiaries
+as well as structured entities controlled by the Group. The Group controls an entity when the Group is
+exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to
+affect those returns through its power over the entity.
+Consolidation
+The Group anticipates that the adoption of the amendments will not have a significant impact
+on the Group's consolidated financial statements.
+A full gain or loss is recognised when a transaction involves a business. A partial gain or loss is
+recognised when a transaction involves assets that do not constitute a business, even if those
+assets are in a subsidiary.
+The amendments address an inconsistency between IFRS 10 and IAS 28 in the sale and
+contribution of assets between an investor and its associate or joint venture.
+(x) Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between An Investor
+and Its Associate or Joint Venture
+The IASB issued targeted amendments to IAS 12: Deferred Tax related to Assets and Liabilities
+arising from a Single Transaction. The amendments specified how companies should account for
+deferred tax on transactions such as leases and decommissioning obligations. The amendments
+narrow the scope of the initial recognition exemption so that it does not apply to transactions
+that give rise to equal and offsetting temporary differences. As a result, companies will need to
+recognise a deferred tax asset and a deferred tax liability for temporary differences arising on
+initial recognition of a lease and a decommissioning provision. The Group anticipates that the
+adoption of the amendments will not have a significant impact on the Group's consolidated
+financial statements.
+(ix) Amendments to IAS 12: Deferred Tax related to Assets and Liabilities arising from a
+Single Transaction
+1.2 Standards and amendments relevant to the Group that are not yet effective and have
+not been adopted before their effective dates in 2021 (Continued)
+Basis of preparation (Continued)
+2
+Exchange differences arising on the settlement of monetary items, and on the retranslation of monetary
+items, are recognized in the consolidated income statement in the period in which they arise, except for the
+following:
+When merging, all intra-group transactions, balances and unrealized gains on transactions are eliminated.
+Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the
+transferred asset.
+For the purposes of impairment testing, goodwill is allocated to each of the Group's cash-generating units
+("CGU") or groups of CGUS that is expected to benefit from the synergies of the business combination.
+Basis of consolidation
+A CGU to which goodwill has been allocated is tested for impairment annually or more frequently when
+there is indication that the unit may be impaired. If the recoverable amount of the CGU, which is the
+higher of fair value less costs to sell and value in use, is less than its carrying amount, the deficit, reflecting
+an impairment loss, is allocated first to reduce the carrying amount of any goodwill allocated to the CGU
+and then to the other assets of the CGU on a pro-rata basis, based on the carrying amount of each asset
+in the CGU. Any goodwill impairment loss is recognized directly in the consolidated income statement. An
+impairment loss recognized for goodwill is not reversed in subsequent periods.
+Fee and commission income
+Fee and commission income is recognized when the Group fulfills its performance obligation, either over
+time or at a point in time when a customer obtains control of the service.
+214
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+||
+The Group uses the effective interest method to calculate the interest income and expenses of financial
+assets and liabilities measured at amortized cost or at fair value through other comprehensive income,
+presented as "interest income" and "interest expenses" respectively. For specific accounting policies, please
+refer to the Note II 8.4 subsequent measurement of financial instruments.
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+5
+Fee and commission income (Continued)
+For the performance obligations satisfied at a point in time, the Group recognizes revenue when control
+is passed to the customer at a certain point in time, including insurance agency fee, merchant acquiring
+service fee, settlement & clearing services and bond underwriting fee, etc. For the performance obligations
+satisfied over time, the Group recognizes revenue according to the progress toward satisfaction of the
+obligation over the time, including consultancy and advisory fee and custodial fee, etc.
+A CGU is the smallest identifiable group of assets that generates cash inflows that are largely independent
+of the cash inflows from other assets or groups of assets.
+Foreign currency translation
+The functional currency of the Domestic Operations is RMB. The presentation currency of the Group and
+the Bank is RMB.
+4
+Interest income and expenses of financial instruments are calculated using the effective interest method
+and included in the current profit and loss.
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+When an entity in the Group transacts with the Group's associate or joint venture, profits and losses
+resulting from the transaction are recognized in the Group's consolidated financial statements only to the
+extent of the interest in the associate or joint venture that are not related to the Group. Unrealized losses
+are eliminated unless the transaction provides evidence of an impairment of the asset transferred.
+Notes to the Consolidated Financial Statements
+Interest income and expenses
+Annual Report 2021 213
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+For the year ended 31 December 2021
+3
+4
+2
+Consolidation (Continued)
+Investment in associate and joint venture
+An associate is an entity over which the Group has significant influence and that is neither a subsidiary
+nor an interest in a joint venture. A joint venture is an arrangement whereby the Group and other parties
+contractually agree to share control of the arrangement through a separate entity, and have rights to the
+net assets of the arrangement based on legal form, contract terms, and other facts and circumstances.
+Significant influence is the power to participate in the financial and operating policy decisions of the
+investee but does not constitute control or joint control over those policy decisions. Joint control is
+the contractually agreed sharing of control over an activity, and exists only when the decisions relating to
+the activity require the unanimous consent of the Group and other parties sharing the control.
+The post-acquisition profit or loss of an associate or a joint venture is incorporated in the consolidated
+financial statements using the equity method of accounting. Under the equity method, investment in an
+associate or a joint venture is initially recognized at cost and adjusted thereafter to recognize the Group's
+share of the profit or loss and other comprehensive income of the associate or joint venture. When the
+Group's share of loss of an associate or a joint venture equals or exceeds its interest in that associate or
+joint venture (which includes any long-term interests that, in substance, form part of the Group's net
+investment in the associate or joint venture), the Group discontinues recognizing its share of further loss.
+Additional loss is recognized only to the extent that the Group has incurred legal or constructive obligations
+or made payments on behalf of that associate or joint venture.
+At the end of each reporting period, the Group considers whether there are circumstances that indicate
+the possibility of impairment of the Group's investment in an associate or a joint venture; when that is
+the case, the entire carrying amount of the investment is tested for impairment in accordance with IAS
+36 Impairment of Assets, as a single asset by comparing its recoverable amount (the higher of fair value
+less costs to sell and value in use) with its carrying amount, any impairment loss recognized forms part of
+the carrying amount of the investment. Any reversal of an impairment loss is recognized in accordance with
+IAS 36, to the extent that the recoverable amount of the investment subsequently increases.
+If the terms are substantially different, the Group derecognizes the original financial asset and
+recognizes a 'new' asset at fair value and recalculates a new effective interest rate for the asset. The
+date of renegotiation is consequently considered to be the date of initial recognition for impairment
+calculation purposes, including for the purpose of determining whether a significant increase in credit
+risk has occurred. However, the Group also assesses whether the new financial asset recognized is
+deemed to be credit-impaired at initial recognition, especially in circumstances where the renegotiation
+I was driven by the debtor being unable to make the originally agreed payments. Differences in the
+carrying amount are also recognized in profit or loss as a gain or loss on derecognition.
+8.7 Derecognition of financial assets
+Financial asset is derecognized when one of the following conditions is met:
+8.6 Modification of loans (Continued)
+(i) the Group's contractual rights to the cash flows from the financial asset expire; (ii) the financial
+asset has been transferred and the Group transfers substantially all of the risks and rewards of
+ownership of the financial asset; or (iii) the financial asset has been transferred, although the Group
+neither transfers nor retains substantially all of the risks and rewards of ownership of the financial
+asset, it does not retain control over the transferred asset.
+The financial asset has been transferred, if the Group neither transfers nor retains substantially all
+the risks and rewards of the asset nor transferred control of the asset, the asset is recognized to the
+extent of the Group's continuing involvement in the asset, whereby the related liabilities is recognized
+accordingly.
+On derecognition of a financial asset in its entirety, the difference between the sum of the
+consideration received for the part derecognized any cumulative amount of fair value recognized in
+other comprehensive income (if the transfer involves any debt investments measured at fair value
+through other comprehensive income) and the carrying amount allocated to the part derecognized on
+the date of derecognition shall be included in profit and loss for the current period.
+If the terms are not substantially different, the renegotiation or modification does not result in
+derecognition, and the Group recalculates the gross carrying amount based on the revised cash
+flows of the financial asset and recognizes a modification gain or loss in profit or loss. The new
+gross carrying amount is recalculated by discounting the modified cash flows at the original effective
+interest rate (or credit-adjusted effective interest rate for POCI financial assets).
+8.8 Derecognition of financial liabilities
+For the year ended 31 December 2021
+The difference between the carrying amount of a financial liability (or part of a financial liability)
+extinguished or transferred to another party and the consideration paid, including any non-cash assets
+transferred or liabilities assumed, shall be recognized in profit or loss.
+Annual Report 2021 225
+Notes to the Consolidated Financial Statements
+(Amounts in millions of Renminbi, unless otherwise stated)
+II
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+An equity instrument is any contract that evidences a residual interest in the assets of the Group
+after deducting all of its liabilities. A financial instrument is an equity instrument if, and only if, both
+conditions (i) and (ii) below are met: (i) The financial instrument includes no contractual obligation to
+deliver cash or another financial asset to another entity, or to exchange financial assets or financial
+liabilities with another entity under conditions that are potentially unfavorable to the Group;
+and (ii) If the financial instrument will or may be settled in the Group's own equity instruments,
+it is a non-derivative instrument that includes no contractual obligations for the Group to deliver a
+variable number of its own equity instruments; or a derivative that will be settled only by the Group
+exchanging a fixed amount of cash or another financial asset for a fixed number of its own equity
+instruments.
+Financial instruments (Continued)
+8 Financial instruments (Continued)
+8.9 Equity instruments
+A financial liability (or a part of a financial liability) is removed when the obligation specified in the
+contract is discharged or cancelled or expires in whole or in part. An exchange between the group
+and lender of debt instruments with substantially different terms shall be accounted for as an
+extinguishment of the original financial liability and the recognition of a new financial liability.
+8
+Stage I: If the credit risk has not increased significantly since its initial recognition, the financial
+asset is included in stage I.
+||
+224
+Notes to the Consolidated Financial Statements
+Equity instruments issued by the Group are recorded at the fair value of proceeds received, net of
+direct issuance expenses.
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+II
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+8 Financial instruments (Continued)
+8.5 Impairment of financial instruments (Continued)
+For financial instruments whose impairment losses are measured using the ECL models, the Group
+applies a three-stage impairment model to calculate their impairment allowance and recognize their
+ECL, as follows:
+Stage II: If the credit risk has increased significantly since its initial recognition but is not yet
+deemed to be credit-impaired, the financial instrument is moved to Stage II. The description of
+how the Group determines when a significant increase in credit risk has occurred is disclosed in
+Note IV 44.1.
+Stage III: If the financial instrument is credit-impaired, the financial instrument is then moved to
+Stage III. The definition of credit-impaired financial assets is disclosed in Note IV 44.1.
+Financial instruments in Stage I have their ECL measured at an amount equivalent to the ECL of the
+financial asset for the next 12 months ("12m ECL"). Financial instruments in Stage II or Stage III have
+their ECL measured at an amount equivalent to the ECL over the lifetime of the financial instruments
+("Lifetime ECL"). The description of inputs, assumptions and estimation techniques used in measuring
+the ECL is disclosed in Note IV 44.1.
+For accounts receivable, lease receivables and contract assets, the Group always recognise lifetime
+expected credit losses. The Group uses provision matrix based on its historical credit loss experience
+for above-mentioned financial assets to estimate ECLs. The historical credit experience is appropriately
+adjusted to reflect the specific factors of borrowers, current events and forecast future conditions as
+at reporting date.
+The Group applies the impairment requirements for the recognition and measurement of a loss
+allowance for debt instruments that are measured at FVOCI. The loss allowance is recognized in
+other comprehensive income and the impairment loss is recognized in profit or loss, and it should not
+reduce the carrying amount of the financial asset in the statement of financial position.
+If the Group has measured the loss allowance for a financial instrument other than POCI at an
+amount equal to lifetime expected credit losses in the previous reporting period, but determines at
+the current reporting date that the credit risk on the financial instruments has increased significantly
+since initial recognition is no longer met, the Group measures the loss allowance at an amount
+equal to 12-month expected credit losses at the current reporting date and the amount of expected
+credit losses reversal is recognized in profit or loss. For POCI financial assets, at the reporting date,
+the Group only recognizes the cumulative changes in lifetime expected credit losses since initial
+recognition.
+8.6 Modification of loans
+The Group sometimes renegotiates or otherwise modifies the contractual cash flows of loans to
+customers. When this happens, the Group assesses whether the new terms are substantially different
+to the original terms.
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+8.10 Derivative financial instruments and hedge accounting
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+The Group documents, at the inception of the hedge, the relationship between hedged items and
+hedging instruments, as well as its risk management objective and strategy for undertaking various
+hedge transactions. The Group also documents its assessment, both at hedge inception and on an
+ongoing basis, of whether the derivatives that are used in hedging transactions are highly effective in
+offsetting changes in fair values or cash flows of hedged items.
+228
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+II
+8 Financial instruments (Continued)
+8.12 Offsetting financial assets and financial liabilities
+When the Group has a legal right to set off the recognized amounts and the legal right is currently
+enforceable, and the Group intends either to settle on a net basis, or to realize the financial asset and
+settle the financial liability simultaneously, financial assets and liabilities are offset and the net amount
+presented in the consolidated statement of financial position. Besides, financial assets and liabilities
+shall be settled respectively but not offset each other. The legally enforceable right of set-off must not
+be contingent on future events and must be enforceable in the normal course of business and in the
+event of default, insolvency or bankruptcy of the Group or the counterparty.
+8.13 Financial assets purchased under resale agreements and financial assets sold under
+repurchase agreements
+Annual Report 2021 227
+Financial assets transferred as collateral in connection with repurchase agreements, involving fixed
+repurchase dates and prices, are not derecognized. They continue to be recorded as investments
+classified as financial assets before sale or loan. The corresponding liability is included in financial
+assets sold under repurchase agreements. The items which are not derecognized are disclosed in
+Note IV 42 Contingent Liabilities and Commitments — - Collateral.
+The difference between the purchase and sale price is recognized as gain or loss in the current period
+using the effective interest method.
+9 Insurance contracts
+Insurance contract classification
+Insurance contracts are those contracts under which the Group has accepted significant insurance risk. The
+Group issues primarily life insurance contracts, which insure events associated with mortality over a long
+duration. The Group also issues non-life insurance contracts, which cover casualty and health insurance risk.
+When necessary, the Group enters into reinsurance contracts to transfer insurance risks to the reinsurer.
+A significant insurance risk test is performed at inception of the insurance contracts.
+Some insurance contracts contain both an insurance component and a deposit component. The Group
+unbundles those components, if the insurance component and the deposit component are separately
+measurable. The unbundled insurance component is accounted for according to IFRS 4 Insurance
+Contracts and the unbundled deposit component is accounted for as a financial liability.
+-
+Insurance income recognition
+Annual Report 2021 223
+Insurance premium income is recognized when the following conditions are met: the insurance contract is
+issued and related insurance risk is undertaken by the Group, the related economic benefits are likely to
+flow to the Group, and the related income can be reliably measured.
+Consideration paid for financial assets held under agreements to resell are recorded as Financial
+assets held under resale agreements, the related financial assets accepted is not recognized in the
+consolidated financial statements (Note IV 42 Contingent Liabilities and Commitments - Collateral).
+Where an embedded derivative is separated from a hybrid contract, the Group accounts for the
+host contract of the hybrid contract in accordance with the provisions of the applicable accounting
+standards. Where the fair value of the embedded derivative unable to be reliably measured on
+the basis of the terms and conditions, the fair value of the embedded derivative is determined as
+the difference between the fair value of the hybrid contract and the fair value of the host contract.
+If, after using the above method, the fair value of the embedded derivative at the acquisition date
+or at the end of a subsequent financial reporting period is still unable to separately measurable, the
+Group designates the entire hybrid contract as a fair value through profit or loss.
+A separate instrument with the same terms would meet the definition of a derivative; and
+(iii) The hybrid contract is not measured at fair value through profit or loss.
+(ii)
+(a) Fair value hedge
+Fair value hedge is a hedge of the exposure to changes in fair value of a recognised asset or
+liability or an unrecognised firm commitment, or an identified portion of such an asset, liability
+or firm commitment, that is attributable to a particular risk and could affect profit or loss or
+other comprehensive income.
+The changes in fair value of hedging instruments that are designated and qualify as fair value
+hedges are recorded in profit or loss or other comprehensive income, together with the changes
+in fair value of the hedged item attributable to the hedged risk.
+For hedged items recorded at amortised cost, the difference between the carrying value of the
+hedged item and the face value is amortised over the remaining term of the original hedge using
+the effective interest rate method.
+The Group discontinues fair value hedge accounting when the hedging relationship ceases
+to meet the qualifying criteria after taking into account any rebalancing of the hedging
+relationship, including the hedging instrument has expired or has been sold, terminated or
+exercised. If the hedged items are derecognised, the unamortised fair value is recorded in profit
+or loss.
+226
+| 中���农业银行
+AGRICULTURAL BANK OF CHINA
+||
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+8 Financial instruments (Continued)
+8.10 Derivative financial instruments and hedge accounting (Continued)
+(b) Cash flow hedge
+Cash flow hedge is a hedge of the exposure to variability in cash flows that is attributable to a
+particular risk associated with a recognised asset or liability (such as all or some future interest
+payments on variable rate debt) or a highly probable forecast transaction that could ultimately
+affect the profit or loss.
+The effective portion of changes in the net gains and losses of hedging instruments that are
+designated and qualify as cash flow hedges is recognised in other comprehensive income
+and accumulated in equity in the "other comprehensive income". The ineffective portion
+recognised immediately in the profit or loss.
+Amounts accumulated in other comprehensive income are reclassified to the profit or loss in the
+same periods when the hedged item affects the profit or loss.
+When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria
+for hedge accounting, any cumulative gain or loss existing in equity at that time remains in
+equity and is recognised in the periods when the hedged item affects profit or loss. When a
+forecast transaction is no longer expected to occur (for example, the recognised hedged asset is
+disposed of), the cumulative gain or loss previously recognised in other comprehensive income is
+immediately reclassified to the statement of profit or loss.
+8.11 Embedded derivative financial instruments
+Certain derivatives are embedded in hybrid contracts, such as the conversion option in a convertible
+bond. If the hybrid contract contains a host that is a financial asset, then the Group assesses the
+entire contract as described in the financial assets section above for classification and measurement
+purposes. Otherwise, the embedded derivatives are treated as separate derivatives when:
+(i) Their economic characteristics and risks are not closely related to those of the host contract;
+Derivatives are initially recognized at fair value at the date a derivative contract is entered into and are
+subsequently re-measured at their fair value at the end of the reporting period. The resulting gain or
+loss is recognized in the consolidated income statement.
+(iii) reasonable and supportable information that is available without undue cost or effort at
+the reporting date about past events, current conditions and forecasts of future economic
+conditions.
+Equity instruments are instruments that meet the definition of equity from the issuer's
+perspective referring to Note II 8.9, examples of equity instruments include basic ordinary
+shares. The Group subsequently measures all equity investments at FVPL, except for the
+equity investment not held for trading where the Group's management has elected, at initial
+recognition, to irrevocably designate an equity investment at FVOCI.
+an unbiased and probability-weighted amount that is determined by evaluating a range of
+possible outcomes;
+(1) Financial assets (Continued)
+Debt Instruments (Continued)
+The Group may also irrevocably designate financial assets at FVPL if doing so significantly reduces
+or eliminates a mismatch created by assets and liabilities being measured on different bases.
+Equity instruments
+| 中国农业银行
+(2) Financial liabilities
+The Group's financial liabilities are classified into financial liabilities at FVPL and other financial
+liabilities carried at amortized cost on initial recognition. Financial liabilities at FVPL is applied to
+derivatives, financial liabilities held for trading and financial liabilities designated as such at initial
+recognition.
+The Group may, at initial recognition, irrevocably designate a financial liability as measured at
+fair value through profit or loss when doing so results in more relevant information, because
+either:
+(i)
+8.1 Initial recognition, classification and measurement of financial instruments (Continued)
+(ii)
+a group of financial liabilities or financial assets and financial liabilities is managed and
+its performance is evaluated on a fair value basis, in accordance with a documented
+risk management or investment strategy, and information about the Group is provided
+internally on that basis to the entity's key management personnel.
+Once the designation is made, it shall not be revoked.
+Financial liabilities arising from the transfer of financial assets which did not qualify for
+derecognition, if the enterprise retains substantially all the risks and rewards of the ownership of
+the transferred financial asset and does not qualified for derecognition, the Group shall continue
+to recognize the transferred financial asset in its entirety and recognize a financial liability for the
+consideration received. In applying the continued involvement approach of accounting, please
+refer to the Note II 8.7 Derecognition of financial assets for the measurement of the transferred
+liability.
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+||
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+8 Financial instruments (Continued)
+it eliminates or significantly reduces a measurement or recognition inconsistency that
+would otherwise arise; or
+8 Financial instruments (Continued)
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+II
+||
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+8 Financial instruments (Continued)
+8.1 Initial recognition, classification and measurement of financial instruments (Continued)
+(1) Financial assets (Continued)
+The business model reflects how the Group manages the assets in order to generate cash
+flows. That is, whether the Group's objective is solely to collect the contractual cash flows from
+the assets or is to collect both the contractual cash flows and cash flows arising from the sale
+of assets. If neither of these is applicable (e.g. financial assets are held for trading purposes),
+then the financial assets are classified as part of "other" business model and measured at
+FVPL. Factors considered by the Group in determining the business model for a group of assets
+include past experience on how the cash flows for these assets were collected, how the asset's
+performance is evaluated and reported to key management personnel, how risks are assessed
+and managed and how managers are compensated.
+Where the business model is to hold assets to collect contractual cash flows or to collect
+contractual cash flows and sell, the Group assesses whether the financial instruments' cash
+flows represent solely payments of principal and interest ("SPPI"). In making this assessment,
+the Group considers whether the contractual cash flows are consistent with a basic lending
+arrangement i.e. interest includes consideration for the time value of money, credit risk
+associated with the principal amount outstanding during a particular period of time, other basic
+lending risks and a profit margin that is consistent with a basic lending arrangement. The Group
+also assesses whether the financial asset contains a contractual term that could change the
+timing or amount of contractual cash flows such that it would not meet this condition.
+Financial assets with embedded derivatives are considered in their entirety when determining
+whether their cash flows are SPPI.
+The classification requirements for debt instruments and equity instruments in the Group are
+described as below:
+Debt Instruments
+Debt instruments are those instruments that meet the definition of a financial liability from
+the issuer's perspective, such as loans, government and corporate bonds. Classification and
+measurement of debt instruments depend on the Group's business models for managing the
+asset and the cash flow characteristics of the asset.
+Based on these factors, the debt instruments of the Group are classified into three categories
+below:
+AC: Debt instruments that are held within a business model whose objective is to hold
+assets to collect contractual cash flows; and contractual terms give rise on specified dates
+to cash flows that are solely payments of principal and interest on the principal amount
+outstanding, and that are not designated as at FVPL, are measured at amortized cost.
+FVOCI: Debt instruments that are held within a business model whose objective is achieved by
+both collecting contractual cash flows and selling financial assets; and contractual terms give
+rise on specified dates to cash flows that are solely payments of principal and interest on the
+principal amount outstanding, and that are not designated as at FVPL, are measured at FVOCI.
+(iii) FVPL: All financial assets not classified as measured at amortized cost or FVOCI as described
+above are measured at FVPL.
+Annual Report 2021 219
+220
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+8.2 Reclassification of financial assets
+(ii) the time value of money; and
+When the Group changes the business model for managing its financial assets, it shall reclassify all
+affected financial assets, and apply the reclassification prospectively from the reclassification date. The
+Group does not restate any previously recognized gains, losses (including impairment gains or losses)
+or interest. Reclassification date is the first day of the first reporting period following the change in
+business model that results in the Group reclassifying financial assets.
+Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
+orderly transaction between market participants at the measurement date. For financial instruments
+traded in active markets the determination of fair values of financial assets and financial liabilities
+is based on quoted market prices. Active market is a place in which transactions for the asset or
+liability take place with sufficient frequency and volume to provide pricing information on an ongoing
+basis. In an active market, the quoted prices of relevant assets or liabilities should be readily and
+regularly available from exchanges, dealers, brokers, industry groups, pricing institutions or regulatory
+institutions by the enterprise. The current market may not be active when there is a significant
+decline in the volume of transaction or level of activity, price quotations vary substantially either over
+time or among market-makers and current prices are not available. For financial instruments not
+traded in active markets, fair value is determined using appropriate valuation techniques. Valuation
+techniques include the use of recent transaction prices, fair value of other financial instruments that
+are substantially the same, discounted cash flow analysis, option pricing models and others commonly
+used by market participants. When measuring the asset or liability at fair value, the Group shall
+use valuation techniques that are appropriate in the circumstances and for which sufficient data
+and other information are available to measure fair value, select inputs that are consistent with the
+characteristics of the asset or liability that market participants would take into account in a transaction
+for the asset or liability. These valuation techniques include the use of observable and/or unobservable
+inputs, and observable inputs are preferred.
+222
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+||
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+8 Financial instruments (Continued)
+8.4 Subsequent measurement of financial instruments (Continued)
+(4) Financial liabilities at fair value through profit or loss
+The financial asset is measured at fair value and net gains or losses are recognized in profit or loss.
+Financial liabilities at FVPL are measured at fair value with all gains or losses recognized in the
+profit or loss of the current period, except for financial liabilities designated as at fair value
+through profit or loss, where gains or losses on the financial liabilities are treated as follows:
+(ii)
+changes in fair value of such financial liabilities due to changes in the Group's own credit
+risk are recognized in other comprehensive income; and
+other changes in fair value of such financial liabilities are recognized in profit or loss of
+the current period. If the accounting of changes in the credit risk of the financial liabilities
+in accordance with (i) will create or enlarge accounting mismatches in profit or loss, the
+Group recognizes all gains or losses on such financial liabilities (including amounts arising
+from changes in its own credit risk) in the profit or loss.
+When the liabilities designated as at fair value through profit or loss is derecognized, the
+cumulative gain or loss previously recognized in other comprehensive income is reclassified from
+equity to retained earnings.
+8.5 Impairment of financial instruments
+The Group assesses on a forward-looking basis the ECL associated with its debt instrument assets
+carried at amortized cost and FVOCI and exposures arising from some loan commitments and financial
+guarantee contracts.
+ECL is the weighted average of credit losses with the respective risks of a default occurring as the
+weights. Credit loss is the difference between all contractual cash flows that are due to the Group in
+accordance with the contract and all the cash flows that the Group expects to receive, which are all
+cash shortfalls, discounted at the original effective interest rate (or credit-adjusted effective interest
+rate for POCI financial assets).
+The Group measures ECL of a financial instrument reflects:
+(i)
+(i)
+(3) Financial assets at fair value through profit or loss
+The equity instrument investments that are not held for trading are designated as FVOCI.
+Dividends, when representing a return on such investments, continue to be recognized in profit
+or loss as investment income when the Group's right to receive payments is established. Other
+net gains or losses are recognised in other comprehensive income. On derecognition, gains and
+losses accumulated in other comprehensive income are reclassified to retained earnings.
+Equity instruments
+8.4 Subsequent measurement of financial instruments
+Subsequent measurement of financial instruments depends on the categories:
+(1) Amortized cost
+The amortized cost is the amount at which the financial asset or financial liability is measured
+at initial recognition: (i) minus the principal repayments; (ii) plus or minus the cumulative
+amortization using the effective interest method of any difference between that initial amount
+and the maturity amount; (iii) for financial assets, adjusted for any loss allowance. Interest
+income and interest expenses from these financial assets and liabilities are included in "Interest
+income" and "Interest expenses" using the effective interest rate method.
+Annual Report 2021 221
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+II
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+8 Financial instruments (Continued)
+8.4 Subsequent measurement of financial instruments (Continued)
+(1) Amortized cost (Continued)
+The effective interest rate is the rate that exactly discounts estimated future cash payments
+or receipts through the expected life of the financial asset or financial liability to the gross
+carrying amount of a financial asset (i.e. its amortized cost before any impairment allowance)
+or to the amortized cost of a financial liability. The calculation does not consider expected
+credit losses ("ECL") and includes transaction costs, premiums or discounts and fees and points
+paid or received that are integral to the effective interest rate. For purchased or originated
+credit-impaired ("POCI") financial assets, the Group calculates the credit-adjusted effective
+interest rate, which is calculated based on the amortized cost of the financial asset instead of its
+gross carrying amount and incorporates the impact of expected credit losses in estimated future
+cash flows.
+Interest income is calculated by applying the effective interest rate to the gross carrying amount
+of financial assets and is included in "Interest income", except for:
+(i)
+POCI financial assets, whose interest income is calculated, since initial recognition, by
+applying the credit-adjusted effective interest rate to their amortized cost; and
+(ii) financial assets that are not POCI but have subsequently become credit-impaired, whose
+interest income is calculated by applying the effective interest rate to their amortized cost
+(i.e.net of the expected credit loss provision). If, in a subsequent period, the financial assets
+improve their qualities so that they are no longer credit-impaired and the improvement in
+credit quality is related objectively to a certain event occurring after the application of the
+above-mentioned rules, then the interest income is calculated by applying the effective
+interest rate to their gross carrying amount.
+(2) Fair value through other comprehensive income
+Debt instruments
+Movements in the carrying amount are taken through OCI, except for the recognition of
+impairment gains or losses, interest revenue and foreign exchange gains and losses on the
+instrument's amortized cost which are recognized in profit or loss. When the financial asset is
+derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity
+to profit or loss. Interest income from these financial assets is included in "interest income"
+using the effective interest rate method.
+8.3 Determination of fair value
+AGRICULTURAL BANK OF CHINA
+(i)
+1,008,014
+(1,483)
+(1,598)
+Settlement and clearing services
+(3,182)
+(3,509)
+Electronic banking services
+(10,760)
+(11,942)
+Bank cards
+Others
+Fee and commission expense
+98,721
+639
+583
+Subtotal
+Others
+1,875
+1,980
+Credit commitment
+4,435
+91,166
+(1,343)
+(1,196)
+Subtotal
+440
+3,211
+6,672
+Net gain on foreign exchange rate derivatives
+Net gain/(loss) on interest rate derivatives
+4,784
+3,650
+(i)
+Net gain on precious metals
+4,178
+3,847
+Net gain on debt instruments held for trading
+2021
+Note
+Year ended 31 December
+NET TRADING GAIN
+3
+74,545
+80,329
+Net fee and commission income
+(16,621)
+(18,392)
+3,832
+(3,103)
+Custodian and other fiduciary services
+11,094
+(430,027)
+Net interest income
+Subtotal
+(1,429)
+(318)
+Financial assets sold under repurchase agreements
+(6,114)
+(3,479)
+Placements from banks and other financial institutions
+(385,853)
+(20,424)
+Borrowings from central banks
+(35,746)
+(39,188)
+Debt securities issued
+(37,588)
+(36,930)
+Deposits from banks and other financial institutions
+(284,552)
+(329,593)
+(20,519)
+577,987
+545,079
+Notes to the Consolidated Financial Statements
+Settlement and clearing services
+11,174
+11,644
+Consultancy and advisory services
+14,702
+15,435
+Bank cards
+21,043
+23,677
+Agency services
+26,169
+30,476
+Electronic banking services
+Fee and commission income
+2020
+2021
+Year ended 31 December
+NET FEE AND COMMISSION INCOME
+2
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+11,129
+Others
+(368)
+7,335
+2020
+2021
+Notes
+Year ended 31 December
+30,614
+34,143
+1,652
+1,686
+(95)
+Staff costs
+224
+948
+1,172
+1,032
+950
+1,065
+26,151
+29,188
+2020
+2021
+784
+(1)
+137,953
+123,345
+930,932
+229,897
+260,275
+3,863
+3,373
+Total
+Others
+5,813
+6,606
+(3)
+Tax and surcharges
+19,551
+19,797
+Depreciation and amortization
+27,873
+30,988
+Insurance benefits and claims
+49,452
+61,558
+(2)
+General operating and administrative expenses
+Year ended 31 December
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+238
+(7,445)
+4,120
+20,907
+Net gain on other debt instruments measured at FVPL
+Net loss on financial liabilities designated as at FVPL (i)
+(92)
+(237)
+Net loss on debt instruments designated as at FVPL
+2020
+Year ended 31 December
+2021
+NET GAIN/(LOSS) ON FINANCIAL INVESTMENTS
+4
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+Annual Report 2021 237
+Net gain on precious metals consists of net gain on precious metals and precious metal related derivative
+products.
+(i)
+16,405
+14,241
+Total
+(11,271)
+Due to customers
+Net gain on debt instruments measured at FVOCI
+750
+6 OPERATING EXPENSES
+Total
+Others
+Net gain/(loss) on foreign exchange
+Government grant
+Gain on disposal of property and equipment
+Rental income
+Insurance premium
+OTHER OPERATING INCOME
+5
+Net loss on financial liabilities designated as at FVPL consists of the amount paid upon the maturity of structured
+deposits designated at FVPL.
+(i)
+(7,312)
+15,035
+Total
+(71)
+(493)
+Others
+(748)
+1,068
+Net gain/(loss) on underlying assets and liabilities related to
+principal guaranteed wealth management products
+designated as at FVPL
+1,235
+Interest expense
+2020
+II SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+As authorized by the ordinary equity holders in the annual general meeting, the Board of Directors has
+the sole discretion to declare and distribute dividends on preference shares. Preference share dividend
+distribution is recognized as a liability in the Group's and the Bank's financial statements in the period in
+which the dividends are approved by the Board of Directors of the Bank.
+Dividend distribution to the Bank's ordinary equity holders is recognized as a liability in the Group's and
+the Bank's financial statements in the period in which the dividends are approved by the ordinary equity
+holders in the annual general meeting of the Bank.
+19 Dividend distribution
+Cash and cash equivalents are short-term and highly liquid assets, which are readily convertible into known
+amounts of cash and subject to an insignificant risk of changes in value. Cash and cash equivalents include
+cash and assets with original maturity of three months or less under cash and balances with central banks,
+deposits with banks and other financial institutions, placements with and loans to banks and other financial
+institutions and financial assets held under resale agreements.
+18 Cash and cash equivalents
+Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the
+revised estimate of its recoverable amount, to the extent that the increased carrying amount does not
+exceed the carrying amount had no impairment loss been recognized. A reversal of an impairment loss is
+recognized in the consolidated income statement.
+If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount
+of the asset is reduced to its recoverable amount. An impairment loss is recognized in the consolidated
+income statement.
+At the end of each reporting period, the Group reviews the carrying amounts of its tangible and intangible
+assets to determine whether there is any indication that those assets have suffered an impairment loss.
+If any such indication exists, the recoverable amount of the asset is estimated in order to determine the
+extent of the impairment loss, if any. The recoverable amount is the higher of the asset's fair value less
+costs to sell and value in use.
+17 Impairment of non-financial assets other than goodwill
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+||
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+232
+Annual Report 2021 231
+Gains or losses arising from derecognition of an intangible asset are measured as the difference between
+the net disposal proceeds and the carrying amount of the asset and are recognized in the consolidated
+income statement.
+Intangible assets with indefinite useful lives are not amortized, but are subject to annual impairment
+assessment.
+Intangible assets acquired separately and with finite useful lives are carried at cost less accumulated
+amortization and any accumulated impairment loss. Amortization for intangible assets with finite useful
+lives is recognized on a straight-line basis over their estimated useful lives which generally range from 5 to
+20 years.
+16 Intangible assets
+When the Group is the lessor in an operating lease, rental income from operating leases is recognized as
+operating income in the consolidated income statement on a straight-line basis over the term of the related
+lease. The initial direct costs are included in the carrying amount of the underlying assets and is recognized
+as expenses over the lease term on the same basis as the lease income.
+When the Group is the lessor in a finance lease, a finance lease receivable as an amount equal to the net
+lease investment is recognized and the finance lease asset is derecognized at the commencement date.
+The finance lease receivables are recorded in the consolidated statement of financial position as Loans and
+advances to customers.
+The Group as lessor
+20 Provisions, contingent liabilities and commitments
+Short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in
+profit or loss. Short-term leases are leases with a lease term of 12 months or less. Leases of low value assets
+are the underlying assets are of low value when new.
+A contingent liability is a possible obligation that arises from past events and whose existence will only be
+confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within
+the control of the Group. It can also be a present obligation arising from past events that is not recognized
+because it is not probable that an outflow of economic resources will be required or the amount of
+obligation cannot be measured reliably.
+Provisions are measured at the best estimate of the consideration required to settle the present obligation
+at the end of the reporting period, taking into account the risks and uncertainties surrounding the
+obligation. Where a provision is measured using the cash flows estimated to settle the present obligation,
+its carrying amount is the present value of those cash flows.
+The judgments, estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
+estimates are recognized in the period in which the estimate is revised and in future periods as appropriate.
+In the application of the Group's accounting policies, which are described in Note II, management is required
+to make judgments, estimates and assumptions that affect the carrying amounts of assets and liabilities. The
+judgments, estimates and related assumptions are based on historical experience and other relevant factors
+including reasonable expectations for future events.
+III CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS IN APPLYING
+ACCOUNTING POLICIES
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+234
+Annual Report 2021 233
+The Group determines the Group's related parties in accordance with IFRSS and other relevant provisions.
+23 Related parties
+For loan commitments and financial guarantee contracts, the loss allowance is recognized as a provision.
+However, for contracts that include both a loan and an undrawn commitment and the Group cannot
+separately identify the expected credit losses on the undrawn commitment component from those on the
+loan component, the expected credit losses on the undrawn commitment are recognized together with
+the loss allowance for the loan. To the extent that the combined expected credit losses exceed the gross
+carrying amount of the loan, the expected credit losses are recognized as a provision.
+The impairment allowance of loan commitments provided by the Group is measured using ECL models. The
+Group has not provided any commitment to provide loans at a below-market interest rate, or that can be
+settled net in cash or by delivering or issuing another financial instrument.
+Financial guarantees are initially recognized at fair value on the date the guarantee was given. Subsequent
+to initial recognition, the Group's liabilities under such guarantees are measured at the higher of the initial
+amount, less amortization of guarantee fees, and the expected credit loss provision required to settle
+the guarantee. Any increase in the liability relating to guarantees is taken to the consolidated income
+statement.
+A financial guarantee contract is a contract that requires the issuer to make specified payments to
+reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due, in
+accordance with the terms of a debt instrument.
+22 Financial guarantee contracts and loan commitments
+The Group conducts entrusted lending arrangements for its customers. Under the terms of entrusted loan
+arrangements, the Group grants loans to borrowers, as an intermediary, according to the instruction of its
+customers who are the lenders providing funds for the entrusted loans. The Group is responsible for the
+arrangement and collection of the entrusted loans and receives a commission for the services rendered. As
+the Group does not assume the economic risks and rewards of the entrusted loans and the funding for the
+corresponding entrusted funds, they are not recognized as assets and liabilities of the Group.
+The Group acts as a custodian, trustee and in other fiduciary capacities to safeguard assets for customers
+in accordance with custody agreements between the Group and securities investment funds, social security
+funds, insurance companies, trust companies, qualified foreign institutional investors, annuity schemes
+and other institutions and individuals. The Group receives fees in return for its services provided under the
+custody agreements and does not have any interest in the economic risks and rewards related to assets
+under custody. Therefore, assets under custody are not recognized in the Group's consolidated statement
+of financial position.
+21 Fiduciary activities
+Insurance contract liabilities are measured based on a reasonable estimate of the amount of payments that
+the Group will be required to make to fulfill its obligations under the insurance contracts, which represents
+the difference between expected future cash outflows and inflows related to such contracts. A reasonable
+estimate of expected future net cash flows is determined based on information currently available as at the
+end of the reporting period. The Group has considered the impact of time value in the liability calculation
+for long-term life insurance.
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+Provisions are recognized when the Group has a present obligation as a result of a past event, and it is
+probable that the Group will be required to settle that obligation and a reliable estimate can be made of
+the amount of the obligation.
+The right-of-use assets of the Group are measured at costs, which include the amount of the initial
+measurement of lease liabilities, any lease payments made at or before the commencement date, any
+initial direct costs and less any lease incentives received. If the Group could reasonably determine the
+ownership of the leased asset when the lease term expires, the right-of-use assets are depreciated over the
+asset's remaining useful life. Otherwise, the right-of-use assets are depreciated over the shorter period of
+the asset's useful life and the lease term on a straight-line basis. When the recoverable costs of right-of-use
+assets are lower than the carrying amount, the value of right-of-use assets will be decreased down to the
+recoverable costs.
+The Group recognized the right-of-use assets at the commencement date, and recognized the lease
+liabilities at the present value of the outstanding lease payments. Lease payments include fixed payments,
+the amounts expected to be payable by the Group if the Group is reasonably certain to exercises a purchase
+option or a option to terminate the lease. Variable lease payments not included in the measurement of the
+lease liability are recognized as an expense in profit or loss when incurred.
+The Group as lessee
+Annual Report 2021 229
+12.13%-19.40%
+3%
+5-8 years
+8.82%-32.33%
+3%
+3-11 years
+Electronic equipment, furniture and fixtures
+Motor vehicles
+1.94%-19.40%
+3%
+5-50 years
+Buildings
+rates
+Annual
+depreciation
+Estimated
+residual
+value rates
+Useful lives
+Classes
+The useful lives, estimated residual value rates and annual depreciation rates of each class of property and
+equipment are as follows:
+Depreciation is recognized as a component of operating expenses in the consolidated income statement so
+as to recognize the consumption of the economic value of property and equipment (other than construction
+in progress), less their estimated residual values, over their estimated useful lives, using the straight-line
+method. The estimated useful lives, residual values and depreciation rates are reviewed at the end of each
+reporting period.
+Property and equipment including buildings held for use in the supply of services, or for administrative
+purpose (other than construction in progress) are stated in the consolidated statement of financial position
+at cost less subsequent accumulated depreciation and accumulated impairment losses, if any. When the
+costs attributable to the land use rights cannot be reliably measured and separated from that of the building
+at inception, the costs are included in the cost of buildings and recorded in property and equipment.
+Subsequent expenditure incurred for the property and equipment (other than construction in progress) is
+included in the cost of the property and equipment (other than construction in progress) if it is probable
+that economic benefits associated with the asset will flow to the Group and the subsequent expenditure can
+be measured, and the carrying amount of the replaced part is derecognized. Other subsequent expenditure
+is recognized in the consolidated income statement in the period in which they are incurred.
+11 Property and equipment
+Precious metals that are not related to the Group's trading activities are initially measured at acquisition
+cost and subsequently measured at the lower of cost and net realizable value. Precious metals that are
+related to the Group's trading activities are initially recognized at fair value, with changes in fair value
+arising from re-measurement recognized directly in the consolidated income statement in the period in
+which they arise.
+Precious metals comprise gold, silver and other precious metals.
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+||
+Lease is a contract or part of a contract that conveys the right to use an asset for a period of time in
+exchange for consideration.
+15 Leasing
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+||
+AGRICULTURAL BANK OF CHINA
+|中国农业银行
+230
+When an investment property is sold, transferred, retired or damaged, the Group recognizes the amount
+of any proceeds on disposal, net of the carrying amount and related taxes, in the consolidated income
+statement.
+Where an impairment loss subsequently reverses, the carrying amount of the investment property is
+increased to the revised estimate of its recoverable amount, to the extent that the increased carrying
+amount does not exceed the carrying amount had no impairment loss been recognized. A reversal of an
+impairment loss is recognized in the consolidated income statement.
+The accounting policies of impairment of investment property are included in Note II 17 Impairment of
+Non-financial Assets other than Goodwill.
+The following are the critical judgments and key estimates management has made in the process of applying the
+Group's accounting policies that have a significant risk of causing a material adjustment to the carrying amounts
+of assets and liabilities within the next twelve months.
+Investment properties are measured using the cost model. Depreciation and amortization is recognized the
+same way as property and equipment and land use rights. Subsequent expenditure incurred for the investment
+property is included in the cost of the investment property if it is probable that economic benefits associated with
+the asset will flow to the Group and the subsequent expenditure can be measured reliably. Other subsequent
+expenditure is recognized in the consolidated income statement in the period in which they are incurred.
+14 Investment property
+The difference between the fair value and book value of the rights given up by creditor is recorded in profit
+and loss.
+When the debtor pays off the debts with multiple assets or in form of restructuring arrangement, the group
+firstly recognizes and measures the foreclosed financial assets and restructured rights according to provision
+illustrated in Note II 8.1 Initial recognition, classification and measurement of financial instruments. The net
+amount, of the fair value of the rights given up by creditor deducted the initial amount recognized for the
+transferred financial assets and restructured rights, should be distributed in accordance with the proportion
+of the fair value of each non-financial asset. The distributed amount should be recognized as the initial
+book value of each non-financial foreclosed assets.
+The Group initially recognizes at fair value the foreclosed financial assets. Non-financial foreclosed assets
+are initially recognized at the fair value of the rights given up by creditors and other costs such as taxes
+directly attributable to the asset.
+13 Foreclosed assets
+Land use rights are classified in other assets and amortized over a straight-line basis over their authorized
+useful lives.
+12 Land use rights
+An item of property and equipment is derecognized upon disposal or when no future economic benefits are
+expected to arise from its continued use. Any gain or loss arising on the disposal or retirement of an item
+of property and equipment is determined as the difference between the sales proceeds and the carrying
+amount of the asset and is recognized in other operating income or operating expenses in the consolidated
+income statement. The accounting policies of impairment of property and equipment are included in
+Note II 17 Impairment of Non-financial Assets other than Goodwill.
+Properties in the course of construction for supply of services or administrative purposes are carried at
+cost, as construction in progress, less any impairment loss. Construction in progress is reclassified to the
+appropriate category of property and equipment when completed and ready for intended use. Depreciation
+of these assets, on the same basis as other property and equipment, commences when the assets are ready
+for their intended use.
+11 Property and equipment (Continued)
+SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+Investment property is property held to earn rental income or for capital appreciation, or both.
+10 Precious metals
+1
+3
+44,579
+2
+Other debt instrument investments at fair value
+187,067
+208,225
+279,855
+313,658
+351,898
+380,351
+631,753
+694,009
+Debt instrument investments at amortized cost
+Financial investments
+Personal loans and advances
+Including: Corporate loans and advances
+51,928
+Loans and advances to customers
+Balances with central banks
+34,271
+Notes to the Consolidated Financial Statements
+Subtotal
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+II SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
+9 Insurance contracts (Continued)
+Insurance contract liabilities
+7,105
+8,618
+Deposits with banks and other financial institutions
+9,984
+11,989
+Financial assets held under resale agreements
+8,824
+5,868
+Placements with and loans to banks and other financial institutions
+34,726
+Interest income
+through other comprehensive income
+Year ended 31 December
+2021
+4 Deferred taxes
+III CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS IN APPLYING
+ACCOUNTING POLICIES (Continued)
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+AGRICULTURAL BANK OF CHINA
+|中国农业银行
+With respect to PRC government obligations related to large-scale policy directed financing transactions,
+fair value is determined using the stated terms of the related instrument and with reference to terms
+determined by the PRC government in similar transactions engaged in or directed by the PRC government.
+In this regard, there are no other relevant market prices or yields reflecting arm's length transactions of a
+comparable size and tenor.
+The Group uses valuation techniques to estimate the fair value of financial instruments which are not
+quoted in an active market. These valuation techniques include the use of recent transaction prices of the
+same or similar instruments, discounted cash flow analysis and generally accepted pricing models. To the
+extent practical, market observable inputs and data, such as interest rate yield curves, foreign currency
+rates and implied option volatilities, are used when estimating fair value through a valuation technique.
+Where market observable inputs are not available, they are estimated using assumptions that are calibrated
+as closely as possible to market observable data. However, areas such as the credit risk of the Group and
+the counterparty, liquidity, volatilities and correlations require management to make estimates. Changes in
+assumptions about these factors could affect the estimated fair value of financial instruments.
+Fair value of financial instruments
+The measurement of the expected credit loss allowance for financial assets measured at amortized cost and
+FVOCI and for exposures arising from some loan commitments and financial guarantee contracts, is an area
+that requires the use of complex models and significant assumptions about future economic conditions and
+credit behavior (the likelihood of customers defaulting and the resulting losses). Explanation of the inputs,
+assumptions and estimation techniques used in measuring ECL is further detailed in Note IV 44.1 Credit risk.
+Measurement of the expected credit loss allowance
+When assessing whether the contractual cash flow of financial assets is consistent with the basic lending
+arrangement, the Group has the following main judgments: Whether the principal may be subject to
+change in the duration or amount of money due to prepayments during the duration; whether interests
+only included time value of money, credit risk, other basic borrowing risks, and considerations for costs
+and profits. For example, whether the amount paid in advance reflect only the outstanding principal and
+interest on the outstanding principal, as well as reasonable compensation for early termination of the
+contract.
+The Group determines the business model for managing financial assets at the level of financial asset
+portfolio. The factors considered include how the asset's performance is evaluated and reported to key
+management personnel, how risks are assessed and managed and how managers are compensated.
+2020
+Classification of financial assets
+5
+6
+The critical judgments the Group has made in determining the classification of financial assets include
+analysis of business models and characteristics of contractual cash flows.
+Consolidation of structured entities
+There are certain transactions and activities in the ordinary course of the Group's business for which the
+ultimate tax effect is uncertain. The Group made certain estimation and judgement for items of uncertainty
+in the application of tax legislations, taking into account existing tax legislation and past practice of tax
+authorities. Where the final tax outcome of these matters is different from the amounts that were initially
+estimated, such differences will affect the current income tax, deferred income tax and VAT during the
+period in which such a determination is made.
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+236
+1 NET INTEREST INCOME
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+The Group performs liability adequacy tests based on information currently available, as at the reporting
+date. Additional insurance contract liabilities will be recorded if any deficiency exists.
+Annual Report 2021 235
+where the Group has neither retained nor transferred substantially all of the risks and rewards
+associated with their ownership, the Group analyzes whether it has relinquished its controls over
+these financial assets by assessing whether the transferee has the practical ability to sell the asset in its
+entirety to an unrelated third party and is able to exercise that ability unilaterally and without needing
+to impose additional restrictions on the transfer, and if the Group has continuing involvement in these
+transferred financial assets. Where the Group has not retained control, it derecognizes these financial
+assets and recognizes separately as assets or liabilities any rights and obligations created or retained
+in the transfer. Otherwise the Group continues to recognize these financial assets to the extent of its
+continuing involvement in the financial asset.
+the extent to which the associated risks and rewards of ownership of the financial assets are
+transferred. Significant judgment is applied in the Group's estimation with regard to the cash flows
+before and after the transfers and other factors that affect the outcomes of Group's assessment on
+the extent that risks and rewards are transferred.
+whether it has transferred the rights to receive contractual cash flows from the financial assets or the
+transfer qualifies for the "pass through" of those cash flows to independent third parties.
+Where the Group enters into structured transactions by which it transfers financial assets to structured
+entities, the Group analyzes whether the substance of the relationship between the Group and these
+structured entities indicates that it controls these structured entities to determine whether the Group needs to
+consolidate these structured entities. This will determine whether the following derecognition analysis should
+be conducted at the consolidated level or at the entity level from which the financial assets are transferred.
+The Group analyzes the contractual rights and obligations in connection with such transfers to determine
+whether the derecognition criteria are met based on the following considerations:
+In its normal course of business, the Group transfers its financial assets through various types of
+transactions including regular way sales and transfers, securitization, financial assets sold under repurchase
+agreements, securities lending. The Group applies significant judgement in assessing whether it has
+transferred these financial assets which qualify for a full or partial derecognition.
+Derecognition of financial assets transferred
+Notes to the Consolidated Financial Statements
+Where the Group acts as asset manager of or investor in structured entities, the Group makes significant
+judgement on whether the Group controls and should consolidate these structured entities. When
+performing this assessment, the Group assesses the Group's contractual rights and obligations in light of
+the transaction structures, and evaluates the Group's power over the structured entities, performs analysis
+and tests on the variable returns from the structured entities, including but not limited to commission
+income and asset management fees earned as the asset manager, the retention of residual income, and, if
+any, the liquidity and other support provided to the structured entities. The Group also assesses whether
+it acts as a principal or an agent through analysis of the scope of its decision-making authority over the
+structured entities, the remuneration to which it is entitled for asset management services, the Group's
+exposure to variability of returns from its other interests in the structured entities, and the rights held by
+other parties in the structured entities.
+Gu Shu was elected Executive Director effective 28 January 2021 and elected Chairman of the Board of
+Directors effective 9 February 2021.
+(i)
+(1) Details of the Directors', Supervisors' and Senior Management's emoluments are as follows (in thousands
+of RMB): (Continued)
+7 BENEFITS AND INTERESTS OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
+(Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+6,730
+858 11,937
+1,399
+(ii)
+2,950
+Total
+315
+34
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Lin Li was elected Executive Vice President effective 31 March 2021 and Executive Director effective
+15 June 2021.
+(v)
+Wu Liansheng was elected Independent Non-Executive Director effective 19 November 2021.
+(iv) Zhou Ji was elected Non-Executive Director effective 5 March 2021.
+Liu Xiaopeng was elected Non-Executive Director effective 20 January 2022.
+(vi)
+Xiao Xiang was elected Non-Executive Director effective 20 January 2022.
+(vii) Huang Tao was elected Supervisor Representing Employees effective 26 July 2021.
+(ix)
+Wang Xixin was elected External Supervisor effective 11 November 2021.
+(x)
+Zhang Yi was elected Executive Vice President effective 4 November 2021.
+(xi)
+Zhou Mubing ceased to be Chairman of the Board of Directors and Executive Director effective
+7 January 2021.
+(xii) Wu Jiangtao ceased to be Non-Executive Director effective 27 July 2021.
+(xiii) Xiao Xing ceased to be Independent Non-Executive Director effective 19 November 2021.
+(iii)
+(viii) Xu Xianglin was elected External Supervisor effective 11 November 2021.
+50
+(xiv) Zhu Hailin ceased to be Non-Executive Director effective 28 September 2021.
+Other
+benefits
+benefit
+in kind
+schemes
+(xiii)
+Total
+Executive Directors
+Contribution
+to retirement
+Zhou Mubing
+79
+Zhang Qingsong
+1,112
+Zhang Xuguang
+967
+223
+75
+1,475
+Basic
+salaries and
+allowance
+Fees
+Notes
+(xv) Li Qiyun ceased to be Non-Executive Director effective 31 December 2021.
+(xvi) Xia Taili ceased to be Supervisor Representing Employees effective 20 August 2021.
+(xvii) Li Wang ceased to be External Supervisor effective 11 November 2021.
+(xviii) Zhang Jie ceased to be External Supervisor effective 11 November 2021.
+(xix) Zhan Dongsheng ceased to be Executive Vice President effective 11 June 2021.
+(xx) Other benefits in kind include the Bank's contributions to medical fund, housing fund and other social
+insurances, which are payable to labour and security authorities based on the lower of certain percentage
+of the salaries and allowance or the prescribed upper limits as required by the relevant regulations issued by
+the government authorities.
+The total compensation packages for the above Executive Directors, Supervisors and Senior
+Management for the year ended 31 December 2021 have not yet been finalized in accordance with
+regulations of the relevant authorities in the PRC at the date of this consolidated financial statements.
+The final compensation will be disclosed in a separate announcement when determined.
+Annual Report 2021 241
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+7 BENEFITS AND INTERESTS OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
+(continued)
+(1)
+Details of the Directors', Supervisors' and Senior Management's emoluments are as follows (in thousands
+of RMB): (Continued)
+Year ended 31 December 2020 (Restated)
+Item
+49
+232
+(xix)
+Zhan Dongsheng
+123,345
+137,953
+Total
+5
+15
+Early retirement benefits
+14,632
+18,188
+Defined contribution benefits
+108,708
+119,750
+Subtotal
+10,595
+(2) Included in general operating and administrative expenses is auditor's remuneration of
+RMB106 million for the year, consisting of RMB105 million for financial statements audit service and
+RMB1 million for non-audit professional service (2020: RMB146 million for the year, consisting of
+RMB137 million for financial statements audit service and RMB9 million for non-audit professional
+service).
+10,963
+3,613
+4,001
+Labor union fees and staff education expenses
+110
+157
+Employment injury insurance
+205
+222
+Maternity insurance
+4,398
+5,480
+Including: Medical insurance
+4,713
+Others
+5,859
+(3) City construction and maintenance tax is calculated at 1%, 5% or 7% of VAT and sales taxes for the
+Group's Domestic Operations.
+Annual Report 2021 239
+820
+81
+50
+619
+(i)
+Executive Directors
+Gu Shu
+Total
+(xx)
+schemes
+in kind
+benefit
+to retirement
+salaries
+and
+allowance
+Education surcharge is calculated at 3%, while local education surcharge is calculated at 2% of VAT
+and sales taxes for the Group's Domestic Operations.
+Fees
+Item
+Basic Contribution Other
+benefits
+Year ended 31 December 2021
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+240
+Details of the Directors', Supervisors' and Senior Management's emoluments are as follows (in thousands
+of RMB):
+(1)
+7
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+BENEFITS AND INTERESTS OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+Notes
+8,933
+9,347
+80,854
+12 CASH AND BALANCES WITH CENTRAL BANKS
+248
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Notes
+Cash
+Mandatory reserve deposits with central banks
+Surplus reserve deposits with central banks
+Other deposits with central banks
+€23
+(1)
+As at 31 December
+2021
+74,610
+1,973,077
+2020
+The conversion feature of preference shares is considered to fall within contingently issuable ordinary
+shares. The triggering events of conversion did not occur for the years ended 31 December 2021 and
+31 December 2020, and therefore the conversion feature of preference shares has no dilutive effect on
+earnings per share calculation.
+76,281
+(2)
+101,010
+171,765
+40,494
+193,142
+Subtotal
+Accrued interest
+Total
+2,320,462
+2,436,247
+944
+1,028
+2,321,406
+2,437,275
+2,126,330
+For the purpose of calculating basic earnings per share, cash dividends of RMB4,064 million
+of non-cumulative preference shares declared in respect of the year of 2021 and interests of
+RMB9,734 million of non-cumulative undated tier 1 capital bonds in respect of 2021 were deducted from
+the profit for the year attributable to equity holders of the Bank (2020: cash dividends of RMB4,328 million
+of non-cumulative preference shares and interests of RMB5,202 million of non-cumulative undated tier 1
+capital bonds).
+For the year ended 31 December 2021, 31 December 2020 and 31 December 2019, the Bank issued five
+non-cumulative undated tier 1 capital bonds, respectively, and the specific terms are included in Note IV 33
+Other equity instruments.
+For the years ended 31 December 2015 and 31 December 2014, the Bank issued two non-cumulative
+preference shares, respectively, and the specific terms are included in Note IV 33 Other equity instruments.
+89,580
+Social insurance
+Housing funds
+Salaries, bonuses, allowance and subsidies
+Short-term employee benefits
+2020
+Year ended 31 December
+2021
+(1) Staff costs
+6
+OPERATING EXPENSES (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+Profit for the year attributable to equity holders of the Bank
+Less: profit for the year attributable to other equity instruments holders
+of the Bank
+241,183
+215,925
+(13,798)
+(9,530)
+Profit for the year attributable to ordinary equity holders
+of the Bank
+227,385
+206,395
+Number of shares:
+Weighted average number of ordinary shares in issue (in millions)
+349,983
+349,983
+Basic and diluted earnings per share (RMB yuan)
+0.65
+0.59
+Zhang Qingsong
+619
+120
+81
+K
+1828%
+1,245
+81
+183
+981
+1,275
+80
+211
+984
+251
+27
+38
+Zhou Mubing
+186
+84
+117
+557
+751
+81
+113
+557
+|||||
+Han Guoqiang
+Li Zhicheng
+(x)
+Zhang Yi
+Xu Han
+758
+(xi)
+354
+120
+Senior Management resigned
+268
+242
+50
+268
+(xviii)
+Zhang Jie
+242
+(xvii)
+Li Wang
+50
+(xvi)
+Xia Taili
+Supervisors resigned
+370
+||||
+||||
+(xv)
+Li Qiyun
+(xiv)
+Zhu Hailin
+370
+(xiii)
+Xiao Xing
+(xii)
+Wu JiangTao
+Non-Executive Directors resigned
+555
+81
+Cui Yong
+79
+Senior Management
+39
+(iii)
+Wu Liansheng
+360
+Liu Shouying
+380
+Ms. LEUNG KO May Yee
+380
+Huang Zhenzhong
+381
+Wang Xinxin
+Huang Tao
+Liu Hongxia
+Xu Xianglin
+Wang Jingdong
+Fan Jianqiang
+Shao Lihong
+Wu Gang
+Supervisors
+34
+Xiao Xiang
+Independent Non-Executive Directors
+626
+66
+95
+465
+(ii)
+Lin Li
+751
+81
+113
+557
+Zhang Xuguang
+820
+Liu Xiaopeng
+Non-Executive Directors
+Liao Luming
+Li Wei
+W
+(ix)
+Wang Xixin
+46
+46
+(viii)
+300
+300
+(vii)
+50
+50
+50
+50
+820
+81
+120
+619
+||||I
+|||||
+|||||
+34
+360
+380
+380
+381
+|||||
+(iv)
+233
+Zhou Ji
+39
+75
+120
+75
+(2) Five individuals with the highest emoluments in the Group
+(i)
+Of the five individuals with the highest emoluments in the Group, none of them are Directors,
+Supervisors or Senior Management whose emoluments are disclosed above. The emoluments
+of the five individuals whose emoluments were the highest in the Group for the year ended
+31 December 2021 and 31 December 2020 were as follows:
+Year ended 31 December
+2021
+2020
+Basic salaries and allowance
+Discretionary bonuses
+Contribution to retirement benefit schemes and others
+Total
+13
+15
+18
+12
+1
+1
+32
+7 BENEFITS AND INTERESTS OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
+(Continued)
+28
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+For the year ended 31 December 2021
+Zhang Qingsong was elected Vice Chairman of the Board of Directors and Executive Director effective
+14 January 2020.
+(iii)
+Zhang Xuguang was elected Executive Director effective 12 October 2020.
+(iv) Zhu Hailin was elected Non-Executive Director effective 29 June 2020.
+(v)
+Fan Jianqiang was elected Supervisor Representing Shareholders effective 27 November 2020.
+(vi) Xu Han was elected Executive Vice President effective 12 October 2020.
+(vii) Han Guoqiang was elected Secretary of the Board of Directors effective 3 November 2020.
+(viii) Zhang Keqiu ceased to be Executive Director and Executive Vice President effective 30 November 2020.
+(ix) Chen Jianbo ceased to be Non-Executive Director effective 29 June 2020.
+(x)
+Xu Jiandong ceased to be Non-Executive Director effective 18 June 2020.
+(xi) Wang Xingchun ceased to be Supervisor Representing Shareholders effective 29 June 2020.
+(xii) Zhou Wanfu ceased to be Secretary of the Board of Directors and the company secretary effective 24 March
+2020.
+(xiii) Other benefits in kind include the Bank's contributions to medical fund, housing fund and other social
+insurances, which are payable to labour and security authorities based on the lower of certain percentage
+of the salaries and allowance or the prescribed upper limits as required by the relevant regulations issued by
+the government authorities.
+Annual Report 2021 243
+244
+Notes to the Consolidated Financial Statements
+(Amounts in millions of Renminbi, unless otherwise stated)
+(ii)
+(ii)
+Year ended 31 December
+Financial investments
+Debt instrument investments at amortized cost
+other comprehensive income
+2021
+168,999
+2020
+138,988
+2,947
+6,796
+Other debt instruments investments at fair value through
+1,588
+5,070
+Provision for guarantees and commitments
+(15,393)
+10,575
+Placements with and loans to banks and other financial institutions
+(15)
+1,419
+Deposits with banks and other financial institutions
+Financial assets held under resale agreements
+Loans and advances to customers
+The number of these five individuals whose emoluments fell within the following bands are as follows:
+Year ended 31 December
+8
+RMB4,500,001 to RMB5,000,000 yuan
+RMB5,000,001 to RMB5,500,000 yuan
+2021
+2
+2020
+3
+RMB5,500,001 to RMB6,000,000 yuan
+RMB6,000,001 to RMB6,500,000 yuan
+RMB6,500,001 to RMB7,000,000 yuan
+RMB7,000,001 to RMB7,500,000 yuan
+RMB7,500,001 to RMB8,000,000 yuan
+RMB8,000,001 to RMB8,500,000 yuan
+-
+1
+1
+1
+1
+For the years ended 31 December 2021 and 31 December 2020, no emolument was paid by the
+Group to the five highest paid individuals as an inducement to join or upon joining the Group or
+as a compensation for loss of office. For the years ended 31 December 2021 and 31 December
+2020, none of the five highest paid individuals waived any emolument.
+(3) Other benefits and interests of Directors and Supervisors pursuant to the Hong Kong
+Companies Ordinance (Cap.622).
+For the years ended 31 December 2021 and 31 December 2020, no emolument was paid by
+the Group to any of the Directors and Supervisors as an inducement to join or upon joining the
+Group or as a compensation for loss of office. Except for the Annuity Scheme and Pension Scheme
+(Note II 7 Employee Benefits), there were no other retirement benefits for Directors or Supervisors,
+or consideration provided to third parties for making available Directors' or Supervisors' services;
+and none of the Directors or Supervisors waived any emolument, or had material interests, whether
+directly or indirectly, in any material transactions, arrangements or contracts in relation to the Group's
+business for the years ended 31 December 2021 and 31 December 2020.
+The Group enters into credit transactions with the Directors, Supervisors or certain controlled body
+corporates and connected entities of the Directors or Supervisors at arm's length in the ordinary course
+of business. For the years ended 31 December 2021 and 31 December 2020 and as at 31 December
+2021 and 31 December 2020, the respective balances of loans and advances from the Group to
+Directors, Supervisors or certain controlled body corporates and connected entities of the Directors or
+Supervisors were not significant. The Group did not provide any guarantee or security to the Directors,
+Supervisors or certain controlled body corporates and connected entities of the Directors or Supervisors
+in respect of their loans, quasi-loans or credit transactions.
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+CREDIT IMPAIRMENT LOSSES
+(442)
+Zhou Mubing ceased to be Chairman of the Board of Directors and Executive Director effective 7 January
+2021.
+15,914
+(vii)
+162
+22532
+75
+104
+1,311
+75
+75
+1,249
+51
+44
+651
+75
+2,158
+11
+7
+180
+Han Guoqiang
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+137
+Li Zhicheng
+75
+50
+50
+| | |
+50
+50
+280
+310
+300
+Senior Management
+Zhan Dongsheng
+1,132
+Cui Yong
+1,099
+Xu Han
+(vi)
+556
+1,946
+(i)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(1) Details of the Directors', Supervisors' and Senior Management's emoluments are as follows (in thousands
+of RMB): (Continued)
+(ix)
+Xu Jiandong
+区区
+Supervisor resigned
+Wang Xingchun
+(xi) -----
+Senior Management resigned
+Zhou Wanfu
+(xii)
+Total
+2,940
+486
+32
+18
+536
+11,522
+761
+691
+Chen Jianbo
+7 BENEFITS AND INTERESTS OF DIRECTORS, SUPERVISORS AND SENIOR MANAGEMENT
+(Continued)
+Non-Executive Directors resigned
+68
+Year ended 31 December 2020 (Restated)
+Item
+Notes
+Fees
+Basic
+salaries and
+allowance
+Contribution
+to retirement
+Other
+benefits
+benefit
+in kind
+schemes
+(xiii)
+Total
+Executive Director resigned
+Zhang Keqiu
+(viii)
+1,247
+68
+88
+1,383
+864
+Executive Director resigned
+936
+Annual Report 2021 247
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+11 EARNINGS PER SHARE
+The calculation of basic and diluted earnings per share is as follows:
+Year ended 31 December
+2021
+2020
+Earnings:
+ននននន្ត "
+1,494
+75
+79
+1,340
+(v)
+Fan Jianqiang
+A final dividend of RMBO.2068 per ordinary share in respect of the year ended 31 December 2021 totaling
+RMB72,376 million has been proposed by the directors and is subject to approval by the ordinary equity holders in
+the annual general meeting.
+300
+An interest at the interest rate of 4.20% per annum related to the second tranche of perpetual bonds of
+RMB35 billion amounting to RMB1,470 million in total was declared on 2 September 2020 and distributed on
+7 September 2020.
+Distribution of interest on perpetual bonds for 2020
+A cash dividend at the dividend rate of 4.84% per annum related to the second tranche of preference shares of
+2020 to 2021 amounting to RMB1,936 million in total was approved at the Board of Directors' Meeting held on
+27 January 2021 and distributed on 11 March 2021.
+A cash dividend at the dividend rate of 5.32% per annum related to the first tranche of preference shares of
+2020 to 2021 amounting to RMB2, 128 million in total was approved at the Board of Directors' Meeting held on
+30 August 2021 and distributed on 5 November 2021.
+Distribution of dividend on preference shares for 2020
+A cash dividend at the dividend rate of 5.50% per annum related to the second tranche of preference shares of
+2019 to 2020 amounting to RMB2,200 million in total was approved at the Board of Directors' Meeting held on
+10 January 2020 and distributed on 11 March 2020.
+A cash dividend at the dividend rate of 5.32% per annum related to the first tranche of preference shares of 2019
+to 2020 amounting to RMB2, 128 million in total was approved at the Board of Directors' Meeting held on 3 July
+2020 and distributed on 5 November 2020.
+(4)
+Distribution of interest on perpetual bonds for 2021
+246
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Perpetual bonds listed in the statement of financial position refer to undated tier 1 capital bonds. An interest at
+the interest rate of 3.48% per annum related to the first tranche of perpetual bonds of RMB85 billion amounting
+to RMB2,958 million in total was declared on 7 May 2021 and distributed on 12 May 2021.
+An interest at the interest rate of 4.39% per annum related to the first tranche of perpetual bonds of RMB85 billion
+amounting to RMB3,731 million in total was declared on 17 August 2021 and distributed on 20 August 2021.
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+10 DIVIDENDS (Continued)
+(5)
+An interest at the interest rate of 4.50% per annum related to the second tranche of perpetual bonds of RMB35 billion
+amounting to RMB1,575 million in total was declared on 19 August 2021 and distributed on 24 August 2021.
+An interest at the interest rate of 4.20% per annum related to the second tranche of perpetual bonds of
+RMB35 billion amounting to RMB1,470 million in total was declared on 2 September 2021 and distributed on
+6 September 2021.
+Perpetual bonds listed in the statement of financial position refer to undated tier 1 capital bonds. An interest at
+the interest rate of 4.39% per annum related to the first tranche of perpetual bonds of RMB85 billion amounting
+to RMB3,732 million in total was declared on 17 August 2020 and distributed on 20 August 2020.
+The above dividend was recognized as distribution and distributed during the year ended 31 December 2020.
+Distribution of dividend on preference shares for 2021
+Liu Hongxia
+280
+Liu Shouying
+370
+Ms. LEUNG KO May Yee
+380
+Huang Zhenzhong
+380
+Wang Xinxin
+410
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+242
+Independent Non-Executive Directors
+1,117
+1,266
+1,629
+367
+555
+360
+310
+Non-Executive Directors
+Li Qiyun
+Zhang Jie
+Li Wang
+Wu Gang
+Shao Lihong
+Xia Taili
+Wang Jingdong
+Supervisors
+360
+370
+380
+380
+410
+|│││
+(iv)
+Zhu Hailin
+Wu Jiangtao
+Li Wei
+Liao Luming
+A cash dividend of RMBO.1819 per ordinary share related to 2019, amounting to RMB63,662 million in total was
+approved, after the required appropriations for the statutory surplus reserve and the general reserve for 2019 as
+determined in accordance with the PRC GAAP, at the annual general meeting held on 29 June 2020.
+Xiao Xing
+A cash dividend of RMBO. 1851 per ordinary share related to 2020, amounting to RMB64,782 million in total
+was approved, after the required appropriations for the statutory surplus reserve and the general reserve for
+2020 as determined in accordance with the relevant accounting rules and financial regulations applicable to PRC
+enterprises (the "PRC GAAP"), at the annual general meeting held on 27 May 2021.
+(12,101)
+(10,208)
+53,944
+48,650
+PRC Enterprise Income Tax is calculated at 25% of the estimated taxable profit for both years, and also
+includes supplementary PRC tax on Overseas Operations as determined in accordance with the relevant PRC
+income tax rules and regulations. Pre-tax deduction items of enterprise income tax are governed by the
+relevant tax regulations in Chinese mainland. Taxation arising in other jurisdictions (including Hong Kong
+SAR) is calculated at the rates prevailing in the relevant jurisdictions.
+The tax charges for the years ended 31 December 2021 and 31 December 2020 can be reconciled to the
+profit per the consolidated income statement as follows:
+Note
+Profit before tax
+Year ended 31 December
+2021
+295,880
+2020
+265,050
+Tax calculated at applicable PRC statutory tax rate of 25%
+Tax effect of income not taxable for tax purpose
+(1)
+73,970
+(42,983)
+66,263
+(36,294)
+Tax effect of costs, expenses and losses not
+deductible for tax purpose
+23,311
+58,858
+20,061
+66,045
+664
+Total
+The above dividend was recognized as distribution and distributed during the year ended 31 December 2021.
+Distribution of final dividend for 2019
+Others
+9 INCOME TAX EXPENSE
+7,835
+51
+164,699
+Year ended 31 December
+Current income tax
+PRC Enterprise Income Tax
+- Hong Kong SAR Income Tax
+Other jurisdictions Income Tax
+Subtotal
+Deferred tax (Note IV 22)
+Total
+2021
+2020
+64,852
+954
+239
+58,220
+(26)
+Tax effect of perpetual bond interest expense
+Effect of different tax rates in other jurisdictions
+Effect of others
+165,886
+(1,300)
+64,782
+(2)
+63,662
+64,782
+63,662
+Dividends on preference shares declared and paid
+(3)
+4,064
+4,328
+Interest on perpetual bonds declared and paid
+(4)
+9,734
+(2)
+(1)
+(3)
+Distribution of final dividend for 2020
+(2,434)
+(1)
+Cash dividend related to 2019
+5,202
+Dividends on ordinary shares declared
+(80)
+Cash dividend related to 2020
+2,128
+Income tax expense
+53,944
+48,650
+(1) Non-taxable income primarily includes interest income from PRC treasury bonds and municipal government bonds.
+Annual Report 2021 245
+Notes to the Consolidated Financial Statements
+(48)
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+10 DIVIDENDS
+Year ended 31 December
+Notes
+2020
+2021
+Allowance for new loans and advances to customers recognized;
+Remeasurement includes the impact of changes in model assumptions, updates of model
+parameters, changes in probability of default and loss given default; changes in ECL due to
+transfer of loans and advances to customers between stages; changes in ECL due to unwinding
+of discount over time; changes in foreign exchange translations for assets denominated in
+foreign currencies and other movements;
+The reversal of allowances caused by repayment, write-offs and loans and advances to customers
+transferred out.
+256
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Corporate loans and advances
+17 LOANS AND ADVANCES TO CUSTOMERS (Continued)
+17.3 Analyzed by movements in loss allowance (Continued)
+The following table shows the impact of above factors on the allowance for impairment losses:
+Transfers between stages due to loans and advances to customers experiencing significant
+increases (or decreases) in credit risk or becoming credit-impaired, and the corresponding
+transfer of the measurement basis of the loss allowance between 12 months and the entire
+lifetime ECL;
+Stage I
+Notes to the Consolidated Financial Statements
+Year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+17.3 Analyzed by movements in loss allowance
+25
+577,997
+Allowance for impairment losses of
+loans and advances to customers
+measured at fair value through
+other comprehensive income
+(13,195)
+(2)
+The movements of loss allowance is mainly affected by:
+(13,197)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+17 LOANS AND ADVANCES TO CUSTOMERS (Continued)
+17.2 Analyzed by ECL assessment method (Continued)
+The expected credit loss ("ECL") for corporate loans and advances in stage I and stage II, as well as
+all personal loans and advances, were measured in accordance with the risk parameters modelling
+method. The ECL for corporate loans and advances in Stage III were calculated using the discounted
+cash flow method. For details, see Note IV 44.1 Credit Risk.
+Annual Report 2021 255
+12m ECL (i)
+(1,151)
+Stage III
+115,643
+Remeasurement
+19,839
+29,179
+50,760
+99,778
+Repayment and transfer out
+(61,904)
+(16,535)
+(19,730)
+(98,169)
+Write-offs
+(45,753)
+577,972
+(45,753)
+115,643
+Stage II
+Lifetime ECL (ii)
+assets
+1,151
+1 January 2021
+282,549
+53,699
+135,634
+Total
+471,882
+Transfer:
+Stage I to stage II
+(6,338)
+6,338
+(21,124)
+21,124
+Stage II to stage |
+2,448
+(2,448)
+Stage III to stage II
+Originated or purchased financial
+fair value through other
+comprehensive income
+at amortized cost
+13,940,063
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+17 LOANS AND ADVANCES TO CUSTOMERS (Continued)
+17.1 Analyzed by measurement basis (Continued)
+(3) Measured at fair value through profit or loss:
+Corporate loans and advances
+17.2 Analyzed by ECL assessment method
+As at 31 December
+2021
+2020
+52
+Stage I
+12m ECL
+Year ended 31 December 2021
+Stage II Stage III (i)
+Lifetime ECL
+Total
+188,522
+389,475
+Gross loans and advances measured
+424,329
+577,997
+31 December 2021
+Carrying amount of loans and advances to customers
+measured at amortized cost
+15,951,755
+13,974,384
+(2)
+Measured at fair value through other comprehensive income:
+As at 31 December
+2021
+2020
+Corporate loans and advances
+Loans and advances
+Discounted bills
+Carrying amount of loans and advances to
+customers measured at fair value through
+other comprehensive income
+502,748
+78,419
+Loans and advances measured at
+16,157,097
+Allowance for impairment losses
+Stage II Stage III (i)
+Lifetime ECL
+Total
+Gross loans and advances measured
+at amortized cost
+13,995,576
+325,383
+Allowance for impairment losses
+(397,768)
+237,113
+(60,700) (159,541)
+14,558,072
+(618,009)
+Loans and advances to customers, net
+13,597,808
+264,683
+77,572
+Year ended 31 December 2020
+269,446
+Stage I
+12m ECL
+(9)
+(500,117)
+245,782
+(57,494) (162,959)
+16,672,325
+(720,570)
+Loans and advances to customers, net
+15,656,980
+211,952
+82,823
+15,951,755
+Loans and advances measured at
+fair value through other
+comprehensive income
+502,701
+47
+502,748
+Allowance for impairment losses of
+loans and advances to customers
+measured at fair value through
+other comprehensive income
+(16,108)
+(16,117)
+352,237
+(2,875)
+140,884
+(36,599)
+(36,599)
+31 December 2020
+282,549
+53,699
+135,634
+471,882
+Year ended 31 December 2020
+Stage I
+Personal loans and advances
+12m ECL (vii)
+Stage II
+Lifetime ECL (viii)
+Stage III
+1 January 2020
+114,445
+Write-offs
+4,329
+(84,914)
+(6,645)
+(3,555)
+Stage III to stage II
+2,875
+(618,009)
+Originated or purchased financial
+assets
+98,077
+98,077
+Remeasurement
+(4,839)
+23,299
+63,387
+81,847
+Repayment and transfer out
+(54,703)
+(23,566)
+3,555
+20,870
+Transfer:
+30,991
+Repayment and transfer out
+(40,358)
+(5,170)
+(8,470)
+(53,998)
+Write-offs
+(12,776)
+(12,776)
+31 December 2020
+128,414
+7,003
+23,907
+159,324
+||||
+18,501
+Total
+139,644
+11,846
+Remeasurement
+Stage I to stage II
+Stage II to stage III
+Stage II to stage I
+Stage III to stage II
+Originated or purchased financial
+(2,535)
+2,535
+(6,305)
+6,305
+755
+(755)
+523
+(523)
+assets
+55,463
+55,463
+644
+50,260
+Stage II to stage I
+(24,807)
+Stage II to stage I
+2,320
+(2,320)
+Stage III to stage II
+1,269
+(1,269)
+Originated or purchased financial
+assets
+69,982
+69,982
+Remeasurement
+13,434
+6,830
+11,106
+31,370
+4,141
+Repayment and transfer out
+Write-offs
+(4,141)
+1,899
+543,381
+Year ended 31 December 2021
+Stage I
+Personal loans and advances
+12m ECL (iii)
+1 January 2021
+128,414
+Stage II
+Lifetime ECL (iv)
+Stage III
+7,003
+23,907
+Total
+159,324
+Transfer:
+Stage I to stage II
+(1,899)
+Stage II to stage III
+24,807
+(48,263)
+(2,311)
+Year ended 31 December 2020
+Stage I
+Corporate loans and advances
+1 January 2020
+12m ECL (v)
+Stage II
+Lifetime ECL (vi)
+Stage III
+249,600
+53,391
+110,480
+Total
+413,471
+Transfer:
+Stage I to stage II
+(9,141)
+9,141
+Stage II to stage III
+AGRICULTURAL BANK OF CHINA
+(3,297)
+| 中国农业银行
+17.3 Analyzed by movements in loss allowance (Continued)
+(53,871)
+(13,499)
+(13,499)
+31 December 2021
+163,988
+7,243
+22,075
+193,306
+Annual Report 2021 257
+258
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+17 LOANS AND ADVANCES TO CUSTOMERS (Continued)
+The following table shows the impact of above factors on the allowance for impairment losses:
+(Continued):
+34,321
+2,551
+53,907
+Allowance for impairment losses
+(2,366)
+721
+(2,237)
+Total derivative financial assets and liabilities
+21,978
+(19,337)
+1,141
+31 December 2020
+notional
+Fair value
+amount
+Assets
+Liabilities
+Exchange rate derivatives
+Contractual/
+271,371
+145,374
+Precious metal contracts
+Interest rate swaps
+Assets
+Liabilities
+Exchange rate derivatives
+Currency forwards and swaps, and
+cross-currency interest rate swaps
+2,145,080
+Currency options
+51,631
+18,983
+1,133
+(14,402)
+(332)
+Subtotal
+20,116
+(14,734)
+Interest rate derivatives
+Currency forwards and swaps, and
+cross-currency interest rate swaps
+2,411,639
+54,466
+(65,282)
+Annual Report 2021 251
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+15 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING (Continued)
+Credit risk weighted amount for derivative transaction counterparties represents the counterparty credit
+risk associated with derivative transactions and is calculated in accordance with the "Capital Rules for
+Commercial Banks (Provisional)" issued by the CBIRC which was effective from 1 January 2013 and
+"Measurement Rule of Counterparty Default Risk Weighted Assets on Derivatives" issued by the CBIRC
+which was effective from 1 January 2019, and is dependent on, among other factors, creditworthiness of
+customers and maturity characteristics of each type of contract. As at 31 December 2021 and 31 December
+2020, the credit risk weighted amount for derivative transaction counterparties was measured under the
+Internal Ratings-Based approach.
+Counterparty credit default risk-weighted assets
+Credit value adjustment risk-weighted assets
+Total
+(1)
+Fair value hedges
+252
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+As at 31 December
+2021
+61,937
+amount
+Total derivative financial assets and liabilities
+2,741
+(57,312)
+Currency options
+70,259
+3,721
+(444)
+Subtotal
+58,187
+(57,756)
+Interest rate derivatives
+Interest rate swaps
+352,044
+1,009
+(4,357)
+Precious metal contracts and others
+155,555
+(3,169)
+Fair value
+Contractual/
+notional
+31 December 2021
+391,366
+10,345
+13,511
+22,507
+27,826
+217,820
+432,703
+2,140
+3,387
+(1,460)
+(1,905)
+218,500
+434,185
+14 PLACEMENTS WITH AND LOANS TO BANKS AND OTHER FINANCIAL INSTITUTIONS
+As at 31 December
+2021
+184,968
+2020
+2020
+Deposits with banks and other financial institutions, net
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+12 CASH AND BALANCES WITH CENTRAL BANKS (Continued)
+(1) The Group places mandatory reserve deposits with the PBOC and overseas regulatory bodies. These include
+RMB reserve deposits and foreign currency reserve deposits that are not available for use in the Group's daily
+operations.
+(2)
+(3)
+As at 31 December 2021, the mandatory deposit reserve ratios of the domestic branches of the Bank in respect of
+customer deposits denominated in RMB and foreign currencies were consistent with the requirement of the PBOC.
+The mandatory reserve funds placed with the central bank of domestic subsidiaries of the Group are determined
+by the PBOC. The amounts of mandatory reserve deposits placed with the central banks of those countries or
+regions outside Chinese mainland are determined by local jurisdictions.
+Surplus reserve deposits with central banks include funds for the purpose of cash settlement and other kinds of
+unrestricted deposits.
+Other deposits with central banks primarily represent fiscal deposits and foreign exchange risk reserve placed with
+the PBOC that are not available for use in the Group's daily operations.
+13 DEPOSITS WITH BANKS AND OTHER FINANCIAL INSTITUTIONS
+Deposits with:
+Domestic banks
+Other domestic financial institutions
+Overseas banks
+Subtotal
+Accrued interest
+Allowance for impairment losses
+As at 31 December
+2021
+2020
+Placements with and loans to:
+250,953
+Annual Report 2021 249
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+15 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING
+The Group primarily enters into foreign exchange rate, interest rate and precious metal derivative contracts
+related to trading, asset and liability management, and customer initiated transactions.
+The contractual/notional amounts and fair values of the derivative financial instruments entered into by
+the Group are set out in the following tables. The contractual / notional amounts of derivative financial
+instruments provide a basis for comparison with fair values of instruments recognized in the consolidated
+statement of financial position but do not necessarily indicate the amounts of future cash flows involved or
+the current fair values of the instruments and, therefore, do not indicate the Group's exposure to credit or
+market risks. The fair value of derivative instruments become favourable (assets) or unfavourable (liabilities)
+as a result of fluctuations in market interest rates, foreign exchange rates or precious metal prices
+relative to their terms. The aggregated fair values of derivative financial assets and liabilities can fluctuate
+significantly.
+Certain financial assets and financial liabilities of the Group are subject to enforceable master net
+arrangements or similar agreements. The agreement between the Group and the counterparty generally
+allows for net settlement of the relevant financial assets and financial liabilities when both elect to settle
+on a net basis. In the absence of such an election, financial assets and financial liabilities will be settled
+on a gross basis. However, each party to the master netting arrangements or similar agreements will have
+the option to settle all such amounts on a net basis in the event of default of the other party. The Group
+did not offset these financial assets and financial liabilities on a net basis. As at 31 December 2021 and
+31 December 2020, the Group does not hold any other financial instruments, other than derivatives, that
+are subject to master netting arrangements or similar agreements.
+250
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+15 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING (Continued)
+546,948
+Domestic banks
+446,944
+(2,752)
+148,136
+Other domestic financial institutions
+93,315
+219,887
+Overseas banks and other financial institutions
+104,295
+179,927
+Subtotal
+448,563
+547,950
+Accrued interest
+1,080
+1,750
+Allowance for impairment losses
+(2,699)
+Placements with and loans to banks and other
+financial institutions, net
+49,277
+74,562
+6,943
+Bills
+Subtotal
+Accrued interest
+Allowance for impairment losses
+Financial assets held under resale agreements, net
+As at 31 December
+2021
+2020
+780,571
+59,378
+761,081
+56,801
+839,949
+817,882
+597
+866
+(2,909)
+(2,542)
+Debt securities
+837,637
+Analyzed by collateral type:
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Liabilities
+Line items in the
+statement of
+financial position
+Other debt instrument
+investments at fair
+value through other
+comprehensive income
+Loans and advances to
+customers
+Bonds
+63,801
+Loans
+Total
+4,595
+68,396
+167
+167
+(2) Cash flow hedges
+The Group uses interest rate swaps to hedge against exposures to cash flow variability primarily from
+interest rate risks of debt securities issued. As at 31 December 2021, the Group did not have cash flow
+hedge (In 2020, the Group's net gains from the cash flow hedge of RMB24 million was recognized in
+other comprehensive income and there exists no ineffective portion of cash flow hedge).
+Annual Report 2021 253
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+16 FINANCIAL ASSETS HELD UNDER RESALE AGREEMENTS
+Assets
+816,206
+Collateral.
+14,552,433
+(1) Measured at amortized cost:
+As at 31 December
+2021
+2020
+Corporate loans and advances
+Loans and advances
+Personal loans and advances
+Subtotal
+Accrued interest
+9,496,436
+8,339,235
+7,136,568
+6,218,837
+16,633,004
+14,558,072
+16,454,503
+The collateral received in connection with financial assets held under resale agreement is disclosed in
+Note IV 42 Contingent Liabilities and Commitments
+Total
+(3)
+17 LOANS AND ADVANCES TO CUSTOMERS
+17.1 Analyzed by measurement basis
+254
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Notes
+Measured at amortized cost
+(1)
+As at 31 December
+2021
+15,951,755
+2020
+13,974,384
+Measured at fair value through other
+comprehensive income
+(2)
+502,748
+Measured at fair value through profit or Loss
+577,997
+52
+39,321
+(720,570)
+31 December 2020
+Accumulated
+amount of fair value
+adjustments on the
+hedged items
+Assets
+63,256
+18
+(2,860)
+The Group uses interest rate swaps to hedge against changes arising from changes in interest rates in
+fair value of loans and advances to customers, other debt instrument investments at fair value through
+other comprehensive income.
+The Group's net gains/(losses) on fair value hedges are as follow:
+Net gains/(losses) on
+– hedging instruments
+Year ended 31 December
+2021
+2020
+1,599
+(1,996)
+(1,566)
+1,915
+― hedged items
+Liabilities
+The gains and losses arising from the ineffective portion of fair value hedges were immaterial in 2021
+and 2020.
+Assets
+Contractual/
+notional
+amount
+11,905
+56,220
+86,467
+The following designated fair value hedging instruments are included in the derivative financial
+instruments disclosed above.
+Interest rate swaps
+Interest rate swaps
+31 December 2021
+Contractual/
+notional
+amount
+Fair value
+Assets
+Liabilities
+48,716
+33
+(1,104)
+31 December 2020
+Fair value
+Liabilities
+Notes to the Consolidated Financial Statements
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+9,914
+39,239
+11,599
+63,256
+The following table sets out the details of the hedged items covered by the Group's fair value hedging
+strategies:
+Carrying amount of
+hedged items
+Assets Liabilities
+31 December 2021
+Accumulated
+amount of fair value
+adjustments on the
+hedged items
+Assets Liabilities
+Bonds
+51,356
+Loans
+Total
+- 52
+52
+Line items in the
+statement of
+financial position
+Other debt instrument
+investments at fair
+value through other
+comprehensive income
+Loans and advances to
+customers
+Carrying amount of
+hedged items
+1,747
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+757
+48,716
+15 DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGE ACCOUNTING (Continued)
+(1) Fair value hedges (Continued)
+The following table shows maturity details with notional amount of hedging instruments disclosed
+above:
+Fair value hedges
+Between Between
+3 and 12 1 and 5
+months
+Less than
+1 month
+Between
+1 and 3
+months
+Over 5
+years
+years
+Total
+31 December 2021
+861
+3,958
+9,203
+30,412
+4,282
+31 December 2020
+(Amounts in millions of Renminbi, unless otherwise stated)
+Stage II to stage III
+Notes to the Consolidated Financial Statements
+Stage II
+Lifetime ECL
+Stage III
+Total
+Other debt instruments at
+fair value through other
+comprehensive income
+1,545,343
+6,030
+Stage I
+12m ECL
+66
+Allowance for impairment losses
+(9,536)
+(432)
+(106)
+(10,074)
+Other debt instruments at fair value through other comprehensive income in stage II and
+stage III mainly included financial institutions bond and corporates bond.
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+1,551,439
+Year ended 31 December 2020
+(10,761)
+(115)
+266
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Year ended 31 December 2021
+Stage II
+Lifetime ECL
+Stage III
+Total
+Stage I
+12m ECL
+Other debt instruments at
+fair value through other
+comprehensive income
+1,390,789
+1,870
+Allowance for impairment losses
+(10,457)
+(189)
+32
+1,392,691
+18 FINANCIAL INVESTMENTS (Continued)
+18.3 Other debt instrument and other equity investments at fair value through other
+comprehensive income (Continued)
+(1) Debt instruments (Continued)
+(c) Analyzed by movements in loss allowance (ii)
+9
+(39)
+Maturities or transfer out
+(3,957)
+(126)
+(4,083)
+31 December 2021
+10,457
+189
+115
+10,761
+Stage I
+12m ECL
+6,874
+Year ended 31 December 2020
+Stage II
+Lifetime ECL
+Stage III
+Total
+23
+6,897
+2
+(b) Analyzed by assessment method of ECL
+(50)
+4,809
+Stage I
+12m ECL
+Year ended 31 December 2021
+Stage II
+Lifetime ECL
+Stage III
+Total
+9,536
+432
+106
+10,074
+1 January 2021
+Transfer:
+Stage I transfer to stage II
+(188)
+188
+Stage II transfer to stage I
+307
+(307)
+Originated or purchased
+financial assets
+4,809
+Remeasurement
+(1) Debt instruments (Continued)
+18.3 Other debt instrument and other equity investments at fair value through other
+comprehensive income (Continued)
+18 FINANCIAL INVESTMENTS (Continued)
+comprehensive
+Fair value
+1,551,439
+3,931
+income
+13,452
+1,147
+Cumulative
+amount of
+impairment
+(10,074)
+N/A
+1,555,370
+14,599
+(10,074)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+18 FINANCIAL INVESTMENTS (Continued)
+18.3 Other debt instrument and other equity investments at fair value through other
+comprehensive income (Continued)
+(1) Debt instruments
+(a) Analyzed by measurement basis
+Debt securities issued by:
+Governments
+Public sector and quasi-governments
+Financial institutions
+is accrued
+to other
+Corporates
+value that
+Cumulative
+cost of equity
+instruments
+1,537,987
+2,784
+Total
+1,540,771
+Year ended 31 December 2021
+Cumulative
+amount of
+change in fair
+value that
+is accrued
+to other
+comprehensive
+income
+19,651
+1,109
+Cumulative
+Fair value
+amount of
+impairment
+1,392,691
+4,589
+(10,761)
+N/A
+1,397,280
+20,760
+(10,761)
+Year ended 31 December 2020
+amount of
+change in fair
+1 January 2020
+Subtotal
+Subtotal of debt instruments
+1,378,584
+1,535,704
+14,107
+15,735
+1,392,691
+1,551,439
+131,184
+1,186,801
+102,413
+1,399,150
+74,706
+49,876
+1,392,691
+1,551,439
+(i) Others primarily include investments in unconsolidated structured entities held by the Group
+(Note IV 41(2)), such as trust investment plans and debt investment plans.
+Annual Report 2021 265
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+18,902
+Others
+16,861
+1,516,802
+Accrued interest
+Total
+Analyzed as:
+Listed in Hong Kong
+Listed outside Hong Kong
+Unlisted
+Total
+Note
+As at 31 December
+2021
+2020
+649,753
+702,202
+241,828
+242,345
+364,339
+453,176
+105,803
+119,079
+1,361,723
+(i)
+Transfer:
+Stage I transfer to stage II
+(211)
+ABC Zhejiang Yongkang Rural Bank
+20 April 2012
+Zhejiang, PRC
+RMB210,000,000
+51.00
+51.00
+Banking
+Limited Liability Company
+ABC Xiamen Tong'an Rural Bank
+Limited Liability Company
+ABC Life Insurance Co., Ltd.
+Agricultural Bank of China
+(Luxembourg) Limited
+Agricultural Bank of China
+(Moscow) Limited
+24 May 2012
+Fujian, PRC
+RMB150,000,000
+51.00
+51.00
+Banking
+(ii) 19 December 2005
+26 November 2014
+Beijing, PRC RMB2,949,916,475
+51.00
+51.00
+Liability Company
+Life insurance
+Banking
+51.00
+12 August 2008
+Hubei, PRC
+RMB31,000,000
+50.00
+66.67
+Banking
+Limited Liability Company
+ABC Jixi Rural Bank Limited Liability
+25 May 2010
+Anhui, PRC
+RMB29,400,000
+51.02
+51.02
+Banking
+Company
+ABC Ansai Rural Bank Limited
+30 March 2010
+Shaanxi, PRC
+RMB40,000,000
+51.00
+(i)
+Luxembourg, EUR20,000,000
+100.00
+(vii) In 2020, the provision rate of the Group's personal loans and advances in Stage I remained stable. The
+changes of the Group's loss allowance of personal loans and advances in Stage I were mainly driven a net
+increase of nearly 15% in the corresponding gross amount.
+In 2020, the changes of Group's loss allowance of corporate loans and advances in Stage III were
+mainly driven by both the net transfer between stages which led to a net increase of nearly 28% in the
+corresponding gross amount, and the net transfer in from Stage II and subsequent remeasurement. This
+impact was partially offset by the repayment, transfer out and write-offs of Stage III corporate loans and
+advances.
+In 2020, the changes of the Group's loss allowance of corporate loans and advances in Stage II were mainly
+driven by a small increase of the provision rate of the Group's corporate loans and advances in Stage
+II. There was no significant change in the gross amount of Stage II corporate loans and advances as of
+31 December 2020 compared to 1 January 2020.
+In 2020, the provision rate of the Group's corporate loans and advances in Stage I remained stable. The
+changes of the Group's loss allowance of corporate loans and advances in Stage I were mainly driven by a
+net increase of nearly 13% in the corresponding gross amount.
+In 2021, the changes in loss allowance of the Group's personal loans and advances in Stage III were
+mainly driven by both the net transfer between Stages which led to a net decrease of nearly 5% in the
+corresponding gross amount and increase in the proportion of provision resulting from transfer of relevant
+loans and advances from Stage II to Stage III. This impact was offset partially by the repayment, transfer out
+and write-offs of relevant loans and advances.
+In 2021, the changes in loss allowance of the Group's personal loans and advances in Stage II were
+mainly driven by both the net transfer between Stages which led to a net increase of nearly 8% in the
+corresponding gross amount and increase in the proportion of provision resulting from transfer of relevant
+loans and advances from Stage I to Stage II. This impact was partially offset by the repayment of relevant
+loans and advances.
+In 2021, the changes of the Group's loss allowance of personal loans and advances in Stage I were mainly
+driven by both a net increase of nearly 15% in the corresponding gross amount, and the increase of
+provision ratio.
+In 2021, the changes of Group's loss allowance of corporate loans and advances in Stage III were
+mainly driven by both the net transfer between stages which led to a net increase of nearly 5% in the
+corresponding gross amount compared with 1 January 2021, and the increase of provision ratio caused by
+the transfer of relevant loans and advances from Stage II to Stage III. This impact was partially offset by the
+repayment, transfer out and write-offs of corporate loans and advances.
+In 2021, the changes of the Group's loss allowance of corporate loans and advances in Stage II were mainly
+driven by the net decrease of about 21% in the book balance of the corporate loans and advances in Stage
+Il compared with 1 January 2021. Its impact on the provision for losses was partially offset by an increase in
+the proportion of impairments related to loans and advances in 2021.
+In 2021, the changes of the Group's loss allowance of corporate loans and advances in Stage I, was
+mainly driven by the net increase of about 13% in the book balance of the corporate loans and advances
+compared with 1 January 2021, and the increase of the provision ratio.
+(vi)
+(v)
+(iv)
+(iii)
+(ii)
+(i)
+17.3 Analyzed by movements in loss allowance (Continued)
+17 LOANS AND ADVANCES TO CUSTOMERS (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Annual Report 2021 259
+100.00
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+(i)
+Banking
+Luxembourg
+23 December 2014
+Moscow, Russia RUB7,556,038,271
+100.00
+100.00
+Banking
+ABC Financial Asset Investment
+Co., Ltd.
+Agricultural Bank of China Wealth
+Management Co., Ltd.
+1 August 2017
+Beijing, PRC RMB20,000,000,000
+100.00
+100.00 Debt-to-equity swap
+and related services
+25 July 2019
+Beijing, PRC RMB12,000,000,000
+100.00
+100.00
+Wealth
+Management
+During the year ended 31 December 2021 and 31 December 2020, there were no changes in the
+proportion of equity interest or voting rights the Bank held in its subsidiaries.
+Two of the three directors on the board of ABC Hubei Hanchuan Rural Bank Limited Liability Company were
+appointed by the Bank. The Bank concluded that it has effective control over and has included this entity in
+its consolidation scope.
+instruments/
+ABC Hubei Hanchuan Rural Bank
+Banking
+Total
+As at 31 December
+2021
+4,448
+141
+2020
+3,811
+120
+4,589
+3,931
+Annual Report 2021 267
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+19 INVESTMENT IN SUBSIDIARIES AND STRUCTURED ENTITIES
+(1) Investment in subsidiaries
+The following are the principal subsidiaries of the Bank as at 31 December 2021:
+268
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Percentage of Percentage of
+Name of entity
+China Agricultural Finance
+Financial institutions
+Other enterprises
+Notes
+(2) Equity instruments
+(ii)
+211
+Originated or purchased
+financial assets
+4,055
+4,055
+Remeasurement
+1,029
+221
+90
+1,340
+Maturities or transfer out
+(2,211)
+(7)
+(2,218)
+31 December 2020
+9,536
+432
+106
+10,074
+As at 31 December 2021, the increases of the Group's loss allowance of other debt instrument
+investments at fair value through other comprehensive income were mainly due to the increase
+of debt instrument investments in the year. The decreases of the Group's loss allowance of
+other debt instrument investments at fair value through other comprehensive income were
+mainly due to maturities or transfer out of debt instrument investments and the remeasurement
+of remained debt instrument investments.
+Limited Liability Company
+Date of
+incorporation/
+establishment
+1 November 1988
+equity
+Agricultural Bank of China (UK)
+29 November 2011
+London, USD100,000,002
+100.00
+100.00
+Banking
+Limited
+United Kingdom
+ABC-CA Fund Management
+18 March 2008
+Shanghai, PRC RMB1,750,000,001
+51.67
+51.67 Fund management
+Co., Ltd.
+ABC Hexigten Rural Bank
+12 August 2008 Inner Mongolia, PRC
+RMB19,600,000
+51.02
+51.02
+Financial leasing
+Place of
+incorporation/
+establishment
+Hong Kong, PRC
+100.00
+Shanghai, PRC RMB9,500,000,000
+voting
+Authorized/
+paid-in capital
+interest
+rights
+Principal
+(%)
+(%)
+activities
+HKD588,790,000
+100.00
+100.00 Investment holding
+Co., Ltd.
+ABC International Holdings
+Limited
+11 November 2009
+Hong Kong, PRC HKD4,113,392,450
+100.00
+100.00 Investment holding
+ABC Financial Leasing
+Co., Ltd.
+29 September 2010
+100.00
+cost of debt
+Notes to the Consolidated Financial Statements
+Equity instruments
+154,859
+134,008
+104,676
+97,401
+39,011
+28,831
+298,546
+260,240
+(ii)
+Other financial assets at fair value through profit or loss refer to financial assets that do not qualify
+for measurement at AC or FVOCI and are not held for trading, including bond investments, equity
+interests, funds, trust plans and asset management products of the Group.
+Debt securities issued by:
+Governments
+Public sector and quasi-governments
+Financial institutions
+Corporates
+Subtotal
+Placements with and loans to banks and
+other financial institutions
+(3) Financial assets designated at fair value through profit or loss (iii)
+Total
+Fund and others
+Equity
+4,944
+4,577
+14,532
+Total
+159,382
+223,960
+(2) Other financial assets at fair value through profit or loss (ii)
+As at 31 December
+2021
+2020
+Debt securities issued by:
+Financial institutions
+Corporates
+Public sector and quasi-governments
+22,636
+25,372
+131,578
+645
+106,820
+1,816
+Subtotal
+Others
+Total
+As at 31 December
+2021
+AGRICULTURAL BANK OF CHINA
+Notes
+As at 31 December
+2021
+2020
+Debt securities issued by:
+Governments
+Public sector and quasi-governments
+Financial institutions
+4,117,564
+3,545,856
+1,506,965
+1,311,556
+145,826
+204,310
+Corporates
+100,576
+129,738
+Subtotal of debt securities
+5,870,931
+| 中国农业银行
+5,279
+18.2 Debt instrument investments at amortized cost
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+2020
+9,440
+18,071
+1,009
+32,456
+1,304
+3,899
+2,313
+63,866
+27,935
+7,068
+2,313
+98,869
+(iii) Wealth management products with principal guaranteed by the Group designated at fair value
+through profit or loss have been settled before December 31, 2021.
+Annual Report 2021 261
+262
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+18 FINANCIAL INVESTMENTS (Continued)
+21,959
+21,389
+182,525
+18.1 Financial assets at fair value through profit or loss
+260
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+As at 31 December
+Notes
+2021
+Financial assets held for trading
+(1)
+159,382
+2020
+223,960
+Other financial assets at fair value through
+profit or loss
+(2)
+298,546
+260,240
+Financial assets designated at fair value through
+profit or loss
+(3)
+7,822,659
+2,313
+8,230,043
+(Amounts in millions of Renminbi, unless otherwise stated)
+1,555,370
+(2)
+Total
+1,397,280
+18.3
+2020
+583,069
+5,684,220
+6,372,522
+18.2
+460,241
+18.1
+Financial assets at fair value through profit or loss
+Debt instrument investments at amortized cost
+Other debt instrument and other equity investments
+at fair value through other comprehensive income
+As at 31 December
+2021
+Notes
+18 FINANCIAL INVESTMENTS
+In 2020, the changes in loss allowance of the Group's personal loans and advances in Stage III were
+mainly driven by both the net transfer between Stages which led to a net increase of nearly 21% in the
+corresponding gross amount and the net transfer in from Stage II and subsequent remeasurement. This
+impact was offset partially by the repayment, transfer out and write-offs of Stage III personal loans and
+advances.
+(viii) In 2020, the changes in loss allowance of the Group's personal loans and advances in Stage II were
+mainly driven by both the net transfer between Stages which led to a net increase of nearly 24% in the
+corresponding gross amount and the net transfer in from Stage I and subsequent remeasurement. This
+impact was offset partially by the repayment of Stage II personal loans and advances.
+17.3 Analyzed by movements in loss allowance (Continued)
+17 LOANS AND ADVANCES TO CUSTOMERS (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+For the year ended 31 December 2021
+5,191,460
+98,869
+460,241
+2020
+Debt securities issued by:
+Governments
+Public sector and quasi-governments
+Financial institutions
+Corporates
+Subtotal
+Precious metal contracts
+Equity
+Fund and others
+8,925
+7,904
+25,144
+49,764
+68,800
+79,243
+25,268
+45,614
+128,137
+As at 31 December
+2021
+Total
+18.1 Financial assets at fair value through profit or loss (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+583,069
+Analyzed as:
+Listed in Hong Kong
+Listed outside Hong Kong
+Unlisted
+Total
+5,409
+4,613
+(i)
+306,454
+390,444
+148,378
+188,012
+460,241
+583,069
+(i)
+Debt securities traded on the China Domestic Inter-bank Bond Market are included in "Listed outside
+Hong Kong”.
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+18 FINANCIAL INVESTMENTS (Continued)
+Receivable from the MOF
+(1) Financial assets held for trading
+290,891
+19,027
+Annual Report 2021 263
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+18 FINANCIAL INVESTMENTS (Continued)
+18.2 Debt instrument investments at amortized cost (Continued)
+(2) Analyzed by movements in loss allowance (i) (Continued)
+Stage I
+12m ECL
+Year ended 31 December 2020
+Stage II
+Lifetime ECL
+Stage III
+Total
+1 January 2020
+Transfer:
+8,409
+32
+1,047
+1,263
+9,488
+17,764
+(153)
+Transfer:
+Stage I transfer to stage II
+Stage I transfer to stage III
+1
+Stage II transfer to stage III
+Stage II transfer to stage I
+(7)
+7
+30
+(30)
+Originated or purchased financial
+assets
+Remeasurement
+3,996
+3,996
+586
+(1)
+191
+Maturities or transfer out
+31 December 2021
+(1,696)
+776
+(1,849)
+16,104
+Stage I transfer to stage II
+33
+264
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Notes
+Debt instruments
+(1)
+Equity instruments
+(2)
+Amortized
+cost of debt
+instruments/
+cost of equity
+instruments
+1,373,040
+3,480
+Total
+1,376,520
+Amortized
+(i)
+(1)
+Debt instruments
+Notes
+18.3 Other debt instrument and other equity investments at fair value through other
+comprehensive income
+(33)
+As at 31 December 2021, the increases of the Group's loss allowance of debt instrument investments
+at amortized cost were mainly due to the increase of debt instrument investments and the
+remeasurement of remained debt instrument investments in the year. The decreases of the Group's
+loss allowance of debt instrument investments at amortized cost were mainly due to maturities or
+transfer out of debt instrument investments.
+16,104
+Originated or purchased financial
+assets
+4,321
+4,321
+Remeasurement
+3,295
+144
+3,565
+Maturities or transfer out
+(1,142)
+(1)
+(1,143)
+Write-offs
+(127)
+(127)
+31 December 2020
+14,850
+190
+1,064
+(i)
+1,064
+126
+Stage III
+Listed outside Hong Kong
+Unlisted
+Total
+(i)
+(iv)
+19,994
+5,882,053
+470,475
+19,630
+5,304,920
+359,670
+6,372,522
+5,684,220
+(ii)
+(iii)
+(iv)
+The Group received a notice from the MOF in January 2020, clarifying that from 1 January 2020, the
+interest rate of the unpaid payments will be verified year by year based on the rate of return of the five-year
+treasury bond of the previous year.
+Special government bond refers to the non-transferable bond issued by the MOF in 1998 in the aggregated
+principal amount of RMB93.3 billion to the Predecessor Entity for capital replenishment. The bond will
+mature in 2028 and bears interest at a fixed rate of 2.25% per annum, starting from 1 December 2008.
+Other debt instruments classified as receivables are primarily related to investment in unconsolidated
+structured entities held by the Group (Note IV 41(2)).
+Debt securities traded on the China Domestic Inter-bank Bond Market are included in "Listed outside
+Hong Kong”.
+Notes to the Consolidated Financial Statements
+Listed in Hong Kong
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Analyzed as:
+Special government bonds
+(ii)
+93,340
+Total
+290,891
+93,348
+Others
+(iii)
+13,463
+14,413
+Subtotal
+6,268,625
+5,590,112
+Accrued interest
+Allowance for impairment losses
+122,924
+110,212
+(19,027)
+(16,104)
+Debt instrument investments at amortized cost, net
+5,684,220
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+6,372,522
+18.2 Debt instrument investments at amortized cost (Continued)
+investments at amortized cost
+Allowance for impairment losses
+5,697,187
+2,064
+(14,850)
+(190)
+1,073
+(1,064)
+5,700,324
+(16,104)
+Debt instrument investments
+Stage I
+12m ECL
+14,850
+5,682,337
+1,874
+9
+5,684,220
+Debt instrument investments at amortized cost in stage II and stage III mainly included
+corporates bond and other debt instruments investments.
+(2) Analyzed by movements in loss allowance (i)
+Year ended 31 December 2021
+Stage II
+Lifetime ECL
+190
+18 FINANCIAL INVESTMENTS (Continued)
+1 January 2021
+Gross debt instrument
+Total
+at amortized cost, net
+Year ended 31 December 2020
+Stage II
+Lifetime ECL
+Stage I
+12m ECL
+Stage III
+Year ended 31 December 2021
+Stage II
+Lifetime ECL
+Stage III
+Total
+Gross debt instrument
+6,389,720
+(17,764)
+548
+1,281
+(1,263)
+investments at amortized cost
+Allowance for impairment losses
+(19,027)
+Stage I
+12m ECL
+6,391,549
+6,372,522
+18
+548
+(1) Analyzed by assessment method of ECL
+at amortized cost, net
+Debt instrument investments
+6,371,956
+Deposits from:
+3,332
+41,446
+25 DEPOSITS FROM BANKS AND OTHER FINANCIAL INSTITUTIONS
+Other domestic financial institutions
+Overseas banks
+737,161
+Other overseas financial institutions
+As at 31 December
+2021
+167,300
+1,401,314
+Domestic banks
+8,974
+114,693
+1,229,313
+2,006
+42,691
+Subtotal
+Accrued interest
+Total
+1,613,392
+1,388,703
+5,813
+1,622,366
+Annual Report 2021 275
+1,394,516
+2020
+747,213
+716
+6,584
+Interest receivable
+2,529
+1,836
+3,070
+Foreclosed assets
+Premiums receivable, reinsurance receivable and reserves
+Others
+899
+659
+655
+15,567
+10,780
+135,636
+151,292
+Total
+(1)
+(2)
+According to relevant laws and regulations, subsequent to the Bank's transformation into a joint stock company,
+land use rights previously held by the Predecessor Entity are to be transferred to the Bank. As at 31 December
+2021, the registration transfer process of certain land use rights has not been completed. Management believes
+that the incomplete registration transfer process does not affect the rights of the Bank as the legal successor to
+those land use rights.
+As at 31 December 2021, the right-of-use assets recognized by the Group mainly include buildings, and are
+mainly used for daily business. The depreciation expense for the year ended 31 December 2021 was amounting to
+RMB3,952 million (for the year ended 31 December 2020: RMB3,993 million), and the accumulated depreciation
+amounting to RMB8,903 million (31 December 2020: RMB7,361 million).
+24 BORROWINGS FROM CENTRAL BANKS
+Borrowings from central banks
+Accrued interest
+Total
+As at 31 December
+2021
+740,629
+2020
+730,146
+7,015
+Notes to the Consolidated Financial Statements
+Subtotal
+(Amounts in millions of Renminbi, unless otherwise stated)
+Subtotal
+Financial liabilities designated at fair value
+through profit or loss
+Placements from banks and other financial
+institutions by principal guaranteed wealth management (1)
+Liabilities of the controlled structured entities
+9,540
+214
+4,452
+Others
+100
+214
+14,092
+15,860
+27,817
+Total
+(1)
+The Group designates placements from banks and other financial institutions by principal guaranteed wealth
+management as financial liabilities at fair value through profit or loss.
+For the current and prior year, there were no significant changes in the fair value of the Group's financial liabilities
+designated at fair value through profit or loss attributable to the changes in the Group's own credit risk.
+28 FINANCIAL ASSETS SOLD UNDER REPURCHASE AGREEMENTS
+Analyzed by type of collateral:
+Debt securities
+Bills
+Subtotal
+2,018
+Accrued interest
+13,725
+For the year ended 31 December 2021
+15,646
+15,646
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+26 PLACEMENTS FROM BANKS AND OTHER FINANCIAL INSTITUTIONS
+As at 31 December
+2021
+2020
+129,317
+222,377
+161,119
+167,291
+290,436
+389,668
+669
+992
+291,105
+390,660
+Placements from:
+Domestic banks and other financial institutions
+Overseas banks and other financial institutions
+Subtotal
+Accrued interest
+Total
+27 FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
+Financial liabilities held for trading
+Precious metal contracts
+Note
+As at 31 December
+2021
+2020
+13,725
+Investment properties
+(2) Deferred income tax assets/(liabilities) and related temporary differences, before offsetting qualifying
+amounts, are attributable to the following items:
+2,718
+Deferred
+tax assets/
+(liabilities)
+Deferred
+(taxable)
+tax assets/
+(liabilities)
+temporary
+differences
+Deferred tax assets
+Allowance for impairment losses
+544,441
+136,059
+487,775
+121,944
+Fair value changes of financial
+instruments
+28,267
+7,087
+58,107
+14,527
+Accrued but unpaid staff cost
+47,379
+11,844
+41,705
+10,426
+Provision
+33,809
+8,452
+31 December 2020
+Deductible/
+42,100
+31 December 2021
+Deductible/
+temporary
+Total
+(11,302)
+246
+120,432
+Credit/(charge) to the consolidated
+income statement
+7,804
+1,251
+(145)
+2,885
+(1,797)
+210
+10,208
+Credit to other comprehensive income
+2,381
+2,381
+31 December 2020
+121,944
+10,426
+388
+10,525
+(10,718)
+456
+133,021
+(taxable)
+differences
+10,525
+Early retirement benefits
+1,088
+274
+|中国农业银行
+AGRICULTURAL BANK OF CHINA
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+23 OTHER ASSETS
+Notes
+As at 31 December
+2021
+2020
+Accounts receivable and temporary payments
+75,176
+97,619
+Land use rights
+(1)
+Right-of-use assets
+(2)
+=d
+20,384
+19,340
+10,191
+10,196
+Intangible assets
+6,188
+4,154
+Long-term deferred expenses
+133,021
+532,084
+142,372
+569,360
+272
+1,551
+388
+Others
+780
+182
+1,827
+456
+Subtotal
+655,764
+163,896
+633,065
+2,233
+158,266
+Fair value changes of financial
+instruments
+(86,404)
+(21,524)
+(100,981)
+(25,245)
+Subtotal
+(86,404)
+(21,524)
+(100,981)
+(25,245)
+Net
+Deferred tax liabilities
+As at 31 December
+2021
+3,870
+31,298
+4,720
+20,000
+20,000
+Medium term notes issued
+(xi)
+56,305
+42,643
+1.99% fixed rate financial bonds maturing in April 2023
+(xii)
+20,000
+20,000
+3.38% fixed rate financial bonds maturing in April 2024
+(xiii)
+20,000
+3.68% CNY fixed rate Green Bonds
+maturing in June 2022
+(xiv)
+2,770
+2,720
+3.90% fixed rate financial bonds
+maturing in November 2023
+3.06% fixed rate financial bonds
+maturing in August 2024
+(xv)
+2,000
+1,650
+(x)
+(xvi)
+maturing in April 2034
+10,000
+40,000
+4.45% Tier-two capital fixed rate bonds
+maturing in April 2028
+(v)
+40,000
+40,000
+4.28% Tier-two capital fixed rate bonds
+maturing in March 2029
+(vi)
+50,000
+50,000
+4.30% Tier-two capital fixed rate bonds
+maturing in April 2029
+(vii)
+40,000
+40,000
+3.10% Tier-two capital fixed rate bonds
+maturing in April 2030
+(viii)
+40,000
+40,000
+4.53% Tier-two capital fixed rate bonds
+maturing in March 2034
+(ix)
+10,000
+4.63% Tier-two capital fixed rate bonds
+40,000
+2,500
+maturing in September 2022
+3.80% fixed rate financial bonds maturing in June 2026
+(xxiv)
+3,000
+5.55% fixed rate capital replenishment bonds
+maturing in March 2028
+(xxv)
+3,500
+3,500
+3.60% fixed rate capital replenishment bonds
+maturing in March 2030
+(xxvi)
+1,500
+1,500
+Total nominal value
+420,958
+430,793
+Less: Unamortized issuance cost and discounts
+(145)
+(90)
+Total
+420,813
+430,703
+278
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+1,100
+3.30% fixed rate financial bonds
+(xxiii)
+500
+(xvii)
+3,870
+7,640
+2.68% fixed rate financial bonds
+maturing in March 2023
+(xviii)
+4,000
+4,000
+4.70% fixed rate capital replenishment bonds
+maturing in August 2021
+(xix)
+2,410
+3.40% fixed rate financial bonds
+maturing in September 2024
+(xx)
+2,000
+2,000
+2.75% fixed rate financial bonds
+maturing in March 2025
+(xxi)
+6,000
+6,000
+3.80% fixed rate financial bonds maturing in June 2025
+(xxii)
+500
+4.10% fixed rate financial bonds maturing in April 2026
+(iv)
+maturing in October 2027
+4.45% Tier-two capital fixed rate bonds
+5,872,736
+2,761,506
+2,477,710
+7,000,805
+6,062,167
+(1)
+339,588
+299,962
+167,933
+158,231
+21,595,453
+20,107,372
+311,674
+265,529
+(1) Analyzed by activity to which pledged deposits are related to:
+21,907,127 20,372,901
+(2)
+Trade finance
+Guarantee and letters of guarantee
+Bank acceptance
+Letters of credit
+Others
+Total
+As at 31 December
+2021
+5,942,411
+127,012
+5,236,566
+2020
+107,844
+1,325
+36,018
+109,169
+15
+26
+36,033
+109,195
+The collateral pledged under repurchase agreement is disclosed in Note IV 42 Contingent Liabilities and
+Commitments - Collateral.
+276
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+29 DUE TO CUSTOMERS
+Demand deposits
+Corporate customers
+Individual customers
+Time deposits
+Corporate customers
+Individual customers
+Pledged deposits
+Others
+Subtotal
+Accrued interest
+Total
+Note
+As at 31 December
+2021
+5,383,210
+2020
+100,822
+75,099
+73,606
+1,371,845
+Annual Report 2021 277
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+30 DEBT SECURITIES ISSUED (Continued)
+As at 31 December 2021 and 31 December 2020, there was no default on the principal, interest or
+redemption related to any debt securities issued by the Group.
+(1) Bonds issued
+Notes
+As at 31 December
+2021
+2020
+1.25% USD fixed rate Green Bonds
+maturing in January 2026
+(i)
+1,913
+5.30% subordinated fixed rate bonds
+maturing in June 2026
+(ii)
+50,000
+4.99% subordinated fixed rate bonds
+maturing in December 2027
+(iii)
+50,000
+50,000
+1,507,657
+9,312
+8,251
+1,362,533
+66,418
+48,718
+32,948
+39,309
+38,111
+37,507
+339,588
+299,962
+As at 31 December 2021, the principal-guaranteed WMPs has fully settled at maturity, the difference
+between the fair value of the structured deposits designated at fair value through profit or loss
+issued by the Group and the contractual amount payable to the holders of these products upon
+maturity was not material. As at 31 December 2020, the difference between the fair value of the
+principal-guaranteed WMPs and the structured deposits designated at fair value through profit or
+loss issued by the Group and the contractual amount payable to the holders of these products upon
+maturity was not material. As at 31 December 2021, due to customers measured at amortized cost
+of the Group amounted to RMB21,854,821 million (31 December 2020: RMB20,031,232 million),
+due to customers measured at fair value through profit or loss of the Group amounted to
+RMB52,306 million (31 December 2020: RMB341,669 million).
+30 DEBT SECURITIES ISSUED
+Bonds issued
+Certificates of deposit issued
+2020
+Other debt securities issued
+Accrued Interest
+Total
+As at 31 December
+Notes
+(1)
+2021
+420,813
+2020
+430,703
+262,272
+252,569
+816,321
+679,261
+1,499,406
+Subtotal
+533
+111,434
+114,140
+2018
+Development Fund Investment
+Inner Mongolia, RMB2,000,000,000
+PRC
+50.00
+50.00
+Center (Limited Partnership)
+and equity
+investment
+Equity investment,
+investment
+management and
+investment advisory
+service
+Shanghai Guohua Oil&Gas Equity
+Inner Mogolia Mengxingzhuli
+2019
+66.67
+50.00
+Investment Fund, Ltd.
+Equity investment,
+debt-to-equity and
+related supporting
+services
+Nongyizihuan (Jiaxing) Equity
+2019
+Zhejiang, PRC RMB400,000,000
+70.00
+50.00
+Investment and
+Shanghai, PRC RMB1,800,000,000
+Investment Partnership
+(Limited Partnership)
+50.00
+Fund (Limited Partnership)
+Nongjin Gaotou (Hubei) Debt-to-Equity
+2018
+Hubei, PRC RMB500,000,000
+74.00
+Investment Fund
+Equity investment,
+debt-to-equity and
+related supporting
+33.33 Non-securities equity
+investment activities
+and related advisory
+services
+services
+Suida (Jiaxing) Investment
+50.00 Industrial investment
+2018
+41.71
+40.00 Industrial investment
+(Limited Partnership)
+Jiaxing Suihe New Silk Road Investment
+2018
+Zhejiang, PRC RMB1,500,000,000
+66.67
+Fund (Limited Partnership)
+50.00 Industrial investment
+and equity
+investment
+Zhejiang New Power Fund
+2018
+Zhejiang, PRC RMB2,000,000,000
+Zhejiang, PRC RMB1,200,000,000
+Enterprise Mixed Ownership Reform
+(Limited Partnership)
+2019
+50.00
+50.00
+Equity investment
+Investment Partnership
+(Limited Partnership)
+Annual Report 2021 271
+272
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+20 INVESTMENT IN ASSOCIATES AND JOINT VENTURES (Continued)
+(2) Investment in joint ventures (Continued)
+Zhejiang, PRC RMB2,000,000,000
+The wholly-owned subsidiary of the Bank, ABC Financial Assets Investment Co., Ltd. and other
+investors established the above-mentioned entities. According to the agreements, matters
+considered at the Meeting of Partners or investment decision-making committee shall be
+approved by the unanimous consent of all the partners or all the committee members. The
+Group constitutes joint control over the financial and operational decisions of these limited
+partnerships with the other investors.
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Electronic
+equipment,
+furniture and
+Buildings
+fixtures
+Motor Construction
+vehicles
+in progress
+Total
+Cost:
+1 January 2021
+185,794
+66,118
+21 PROPERTY AND EQUIPMENT
+Jianxinjintou Infrastructure Equity
+2020
+consultation services
+Tianjin, PRC RMB3,500,000,000
+20.00
+20.00
+investment
+management
+Equity investment
+Investment (Tianjin) Fund
+and investment
+(Limited Partnership)
+management
+Shaanxi Suihe equity investment fund
+2019
+Ningbo Suiheyongshang Equity
+Shaanxi, PRC RMB1,000,000,000
+50.00
+Equity investment
+partnership (Limited Partnership)
+Shanghai Diantousuihe Equity
+2020
+Shanghai, PRC RMB5,000,000,000
+80.00
+50.00 Industrial investment,
+Investment Fund
+equity investment
+(Limited Partnership)
+and investment
+50.00
+28.57
+69.00
+Jiangsu, PRC RMB1,000,000,000
+(%)
+(%)
+activities
+Sino-Congolese Bank of Africa
+(i)
+2015
+Shenzhen Yuanzhifuhai No. 6
+(ii)
+2015
+Brazzaville, Congo XAF53,342,800,000
+Guangdong, PRC RMB1,110,854,000
+50.00
+50.00
+Principal
+Bank
+20.00
+Investment Enterprise
+(Limited Partnership)
+Equity investment,
+investment
+management and
+investment advisory
+service
+Non-securities
+Beijing Guofa Aero Engine
+2018
+Beijing, PRC
+RMB6,343,200,000
+15.61
+20.00
+9.00
+Industry Investment Fund
+Percentage of Percentage of
+equity interest voting rights
+Place of
+incorporation/
+establishment
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+19 INVESTMENT IN SUBSIDIARIES AND STRUCTURED ENTITIES (Continued)
+(1) Investment in subsidiaries (Continued)
+(ii)
+On 31 December 2012, the Bank acquired 51% of the issued share capital of Jiahe Life Insurance Co., Ltd.
+and renamed it as ABC Life Insurance Co., Ltd. ("ABC Life Insurance"). The Group recognized goodwill of
+RMB1,381 million as a result of this acquisition. During the year ended 31 December 2016, the Bank and
+other investors contributed additional capital totalling RMB3,761 million to ABC Life Insurance, comprising
+registered capital of RMB917 million and capital reserve of RMB2,844 million. After the capital injection, the
+proportion of equity interest and voting rights the Bank held in ABC Life Insurance remained at 51%.
+The Bank tests the impairment of goodwill annually. When performing the impairment test, the Bank
+compares the carrying amount of the assets (including goodwill and the value of the mergers and
+acquisitions after deduction of amortization) with the recoverable amount. The excess of carrying amount
+over recoverable amount is recognized in profit or loss of the current period.
+The recoverable amount of the assets is based on adjusted net assets, value of in-force business, value of
+one year of new business, new business multiplier, and other data approved by the management of ABC
+Life Insurance. The actuarial valuation method is applied and the risk discount rate, return on investment,
+valuation discount rate, and other assumptions adopted to forecast cash flows respectively reflect the
+specific risks associated with them.
+As at 31 December 2021 and 31 December 2020, there was no objective evidence noted for any goodwill
+impairment, and no impairment loss was recognized.
+(iii) The Bank increased the share capital of ABC Financial Asset Investment Co., Ltd. by RMB10 billion as at
+25 January 2021, and the proportion of equity interest and voting rights the Bank held in this subsidiary
+remained at 100%.
+(2) Structured entities
+The Group also consolidated structured entities as disclosed in Note IV 41 Structured Entities.
+Authorized
+capital
+Annual Report 2021 269
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+20 INVESTMENT IN ASSOCIATES AND JOINT VENTURES
+(1) Investment in associates
+270
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Date of
+incorporation/
+Name of entity
+Notes
+establishment
+Notes to the Consolidated Financial Statements
+investment activities
+Center (Limited Partnership)
+and related advisory
+(iii)
+and investment
+management
+On 28 May 2015, the Sino-Congolese Bank of Africa (La Banque Sino-Congolaise pour l'Afrique,
+hereinafter referred to as BSCA. Bank), established by the Bank and other investors with authorized capital
+denominated in Central African CFA franc ("XAF"), was granted the required banking license by the local
+regulatory authority. The Bank holds 50% equity interest and voting rights in BSCA. Bank, and has the right
+to participate in the financial and operational decisions of BSCA. Bank, but does not constitute control or
+joint control over those decisions.
+The Bank's wholly-owned subsidiary, ABC Financial Asset Investment Co., Ltd. and other investors invested
+in the above mentioned enterprises. The Group has the right to participate in the financial and operational
+decisions of these enterprises, but does not constitute control or joint control over those decisions.
+The Bank was approved to participate in the investment in National Green Development Fund Co., Ltd. in
+2021. The Bank holds 9.04% equity interest and has the right to participate in the financial and operational
+decisions, but does not constitute control or joint control over those decisions.
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+20 INVESTMENT IN ASSOCIATES AND JOINT VENTURES (Continued)
+(2) Investment in joint ventures
+Date of
+incorporation/
+Place of
+incorporation/
+(ii)
+Percentage of
+Name of entity
+establishment
+establishment
+Authorized
+capital
+equity interest
+voting rights
+Principal
+(%)
+(%)
+activities
+Jiangsu Jiequansuihe State-owned
+2018
+Percentage of
+project investment
+Equity investment,
+9.04
+Jilin Hongqizhiwang New Energy (ii)
+2019
+Jilin, PRC
+RMB3,885,500,000
+25.26
+20.00
+services
+Non-securities
+Automobile Fund Investment
+Management Center
+investment activities
+and related advisory
+(Limited Partnership)
+services
+Xinyuan (Beijing) Debt-to-Equity (ii)
+2020
+Beijing, PRC
+RMB6,000,000,000
+15.67
+14.29
+Equity investment
+Special Equity Investment
+Center (Limited Partnership)
+National Green Development
+Fund Co., Ltd.
+2020
+Shanghai, PRC RMB88,500,000,000
+9.04
+Additions
+4,820
+6,161
+14,721
+1,864
+(352)
+Carrying value:
+1 January 2020
+31 December 2020
+119,591
+18,635
+9,971
+4,287
+152,484
+113,056
+19,827
+10,956
+(34)
+7,315
+According to the relevant laws and regulations, subsequent to the Bank's transformation into a joint stock
+company, the legal title of properties previously held by the Predecessor Entity are to be transferred to the
+Bank. As at 31 December 2021, the registration transfer process of these transferred properties and other
+certain properties have not been completed. Management believes that the incomplete registration transfer
+process does not affect the rights of the Bank as the legal successor to those assets or adversely affect the
+Bank's operation.
+22 DEFERRED TAXATION
+For the purpose of presentation in the consolidated statement of financial position, certain deferred tax
+assets and liabilities have been offset when there is a legally enforceable right to offset current tax assets
+against current tax liabilities and when the deferred income taxes relate to the same fiscal authority. The
+following is the analysis of the deferred tax balances:
+Deferred tax assets
+Deferred tax liabilities
+Net
+As at 31 December
+2021
+143,027
+(655)
+2020
+133,355
+(334)
+142,372
+133,021
+Annual Report 2021 273
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+151,154
+(Amounts in millions of Renminbi, unless otherwise stated)
+(47)
+31 December 2020
+Disposals
+7,895
+8,198
+309
+31 December 2020
+(72,476)
+(46,282)
+(3,718)
+(125,467)
+(13,411)
+16,402
+(122,476)
+(262)
+Allowance for impairment losses:
+(265)
+(16)
+(34)
+(315)
+Impairment loss
+(49)
+(49)
+Disposals
+3
+7
+2
+12
+1 January 2020
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+22 DEFERRED TAXATION (Continued)
+(1) The following are the movements and major deferred tax assets and liabilities recognized:
+(2,750)
+31 December 2021
+136,059
+11,844
+272
+8,452
+(14,437)
+182
+142,372
+Fair value
+Allowance for
+Accrued
+(2,750)
+Early
+impairment
+but unpaid
+retirement
+financial
+losses
+staff cost
+benefits
+Provision
+instruments
+Others
+Total
+1 January 2020
+changes of
+Credit to other comprehensive income
+12,101
+(274)
+Allowance for
+impairment
+Accrued
+but unpaid
+Early
+Fair value
+changes of
+retirement
+financial
+losses
+staff cost
+benefits
+Provision
+instruments
+Others
+Total
+1 January 2021
+121,944
+10,426
+388
+10,525
+(10,718)
+456
+133,021
+Credit/(charge) to the consolidated
+income statement
+14,115
+1,418
+(116)
+(2,073)
+(969)
+(634)
+9,175
+(6,015)
+Charge for the year
+1,672
+6,509
+379
+8,560
+31 December 2021
+(77,605)
+(45,724)
+(4,110)
+(127,439)
+Allowance for impairment losses:
+1 January 2021
+(262)
+Disposals
+(9)
+(34)
+(352)
+Impairment loss
+(8)
+(36)
+(44)
+Disposals
+3
+2
+5
+31 December 2021
+(270)
+(47)
+(6)
+(13,523)
+(771)
+Transfers in/out)
+4,482
+592
+194
+7,349
+7,443
+(5,268)
+273,982
+20,288
+Disposals
+(5,787)
+(6,965)
+(381)
+(8)
+(13,141)
+(122,476)
+31 December 2021
+65,906
+16,398
+9,516
+281,129
+Accumulated depreciation:
+1 January 2021
+(72,476)
+(46,282)
+(3,718)
+Charge for the year
+(6,801)
+(5,951)
+189,309
+(81)
+(34)
+(391)
+7,060
+1,519
+5,484
+18,981
+Transfers in/(out)
+933
+1,289
+223
+(2,445)
+Disposals
+(13,522)
+(9,347)
+4,918
+(385)
+(23,265)
+31 December 2020
+185,794
+66,118
+14,721
+7,349
+273,982
+Accumulated depreciation:
+1 January 2020
+(73,609)
+(48,465)
+(3,393)
+(11)
+Additions
+278,266
+4,321
+Carrying value:
+1 January 2021
+113,056
+19,827
+10,956
+7,315
+151,154
+31 December 2021
+20,176
+12,207
+9,482
+153,299
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+21 PROPERTY AND EQUIPMENT (Continued)
+Buildings
+Electronic
+equipment,
+furniture and
+fixtures
+Motor
+Construction
+vehicles
+in progress
+Total
+Cost:
+1 January 2020
+193,465
+67,116
+13,364
+(6,762)
+(Limited Partnership)
+Notes to the Consolidated Financial Statements
+The Tier-two capital bonds issued in April 2019 have a tenor of 15 years, with a fixed coupon rate of 4.63%
+payable annually. The Bank has an option to redeem part or all of the bonds at face value on 10 April 2029
+if specified redemption conditions as stipulated in the offering documents were met, subject to regulatory
+approval. If the Bank did not exercise this option, the coupon rate of the bonds would remain at 4.63%
+per annum from 11 April 2029 onwards. These Tier-two capital bonds have the write-down feature of a
+Tier-two capital instrument and they are qualified as Tier-two Capital Instruments in accordance with the
+CBIRC requirements.
+20,271
+1,287
+651
+18,333
+31 December 2021
+(26,358)
+1,076
+539
+(179)
+(1,542)
+(24,637)
+(a)
+Decrease
+616
+(79)
+Remeasurement
+9,797
+9,797
+Stage I transfer to Stage II
+Stage II transfer to Stage III
+(155)
+155
+(219)
+219
+Stage II transfer to Stage I
+Year ended 31 December 2020
+51
+Stage III transfer to Stage II
+-
+31
+(31)
+Increase
+(a)
+(51)
+1 January 2020
+Transfer:
+Stage I transfer to Stage II
+Remeasurement
+720
+6
+401
+1,127
+Decrease
+18,613
+(a)
+(708)
+(355)
+(9,197)
+31 December 2020
+33,356
+1,661
+(8,134)
+35,756
+18,613
+Increase
+Note
+Stage I
+12m ECL
+22,836
+Stage II
+Lifetime ECL
+2,032
+Stage III
+345
+(a)
+Total
+25,213
+682
+Stage II transfer to Stage III
+(348)
+348
+Stage II transfer to Stage I
+3
+(682)
+739
+1,661
+33,356
+Female
+As at 31 December
+2021
+2020
+2.58%
+2.90%
+― Male
+8.00%
+8.00%
+8.00%
+60
+60
+55
+55
+8.00%
+Assumptions regarding future mortality experience are based on the China Life Insurance
+Mortality Table (published historical statistics in China).
+Normal retirement age
+Annual average medical expense growth rate
+(iii) Early retirement benefits
+2021
+Early retirement benefits
+1 January
+1,551
+Increase
+15
+Decrease 31 December
+(478)
+1,088
+Annual subsidies growth rate
+2020
+1 January
+2,133
+Increase
+5
+Decrease
+(587)
+31 December
+1,551
+The principal assumptions used for the purpose of the actuarial valuations were as follows:
+Discount rate
+Early retirement benefits
+739
+Any difference arising from the actual result or changes in assumptions may affect the amount
+of expense recognized in the consolidated income statement.
+| 中国农业银行
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+31 OTHER LIABILITIES (Continued)
+(2) Provision (Continued)
+(i) Analyzed by movements in loss allowance for loan commitments and financial guarantee
+contracts
+1 January 2021
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Transfer:
+Note
+Stage I
+12m ECL
+Stage II
+Stage III
+Lifetime ECL
+Total
+Year ended 31 December 2021
+(2) Provision
+42,100
+Total
+AGRICULTURAL BANK OF CHINA
+Note
+As at 31 December
+2021
+2020
+Loan commitments and financial
+guarantee contracts
+33,809
+(i)
+35,756
+Litigation provision
+Others
+5,333
+8,205
+5,560
+784
+20,271
+(1) Staff costs payable (Continued)
+35,756
+The impact of loss allowance driven by new loan commitments and financial guarantee contracts
+signed in 2021 and 2020 is disclosed as "Increase". The impact of loss allowance driven by
+withdrawals, advances or expiration of loan commitments and financial guarantee contracts in
+2021 and 2020 are disclosed as "Decrease". The changes of loss allowance for loan commitments
+and financial guarantee contracts in 2021 and 2020 are mainly driven by the net decrease and net
+increase in the exposure of loan commitments and financial guarantee contracts.
+400
+100
+5.50% per annum for the first 5 years
+Preference shares
+5 years as stated below
+No conversion
+during the year
+Conversion
+Maturity date
+No maturity date
+40,000
+400
+100
+value
+(millions)
+(millions)
+(RMB yuan)
+of shares
+Issued price
+nominal
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+33 OTHER EQUITY INSTRUMENTS
+40,000
+Financial
+Dividend rate
+Preference shares
+- first tranche (1)
+6.00% per annum for the first 5 years
+after issuance, and re-priced every
+Issued
+number
+Issued
+instruments in issued
+No maturity date
+- second tranche (1)
+after issuance, and re-priced every
+5 years as stated below
+500
+capital bonds
+in 2019
+after issuance, and reset every 5 years
+as stated below
+-second
+tranche(2)
+35,000
+350
+No maturity date
+§
+Undated tier 1
+3.48% per annum for the first 5 years
+100
+850
+85,000
+N/A
+286
+100
+Undated tier 1
+year
+Perpetual
+bonds
+Undated tier 1
+4.39% per annum for the first 5 years
+100
+850
+4.20% per annum for the first 5 years
+50
+No maturity date
+N/A
+capital bonds
+in 2019
+after issuance, and reset every 5 years
+as stated below
+― first
+tranche(2)
+85,000
+As at 31 December 2021, the Bank's A Shares and H Shares were not subject to lock-up restriction, except for
+the 19,960 million ordinary shares issued through the private placement in June 2018. As at 31 December 2020,
+the Bank's A Shares and H Shares were not subject to lock-up restriction, except for the 25,189 million ordinary
+shares issued through the private placement in June 2018.
+A shares refer to the ordinary shares listed in the Chinese mainland. They are offered and traded in RMB. H shares
+refer to the ordinary shares listed in Hong Kong SAR. Their par value is denominated in RMB when they were
+initially offered and are currently traded in HKD.
+(2)
+Nominal
+value
+319,244
+319,244
+30,739
+30,739
+349,983
+(millions)
+349,983
+of shares
+(millions)
+Nominal
+value
+319,244
+319,244
+30,739
+31 December 2020
+Number
+30,739
+of shares
+(1)
+Annual Report 2021 285
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+32 ORDINARY SHARES
+31 December 2021
+Number
+Domestic listed A shares, par value
+RMB1.00 per share
+Total
+Domestic listed A shares, par value
+RMB1.00 per share
+Overseas listed H shares, par value
+RMB1.00 per share
+Total
+Overseas listed H shares, par value
+RMB1.00 per share
+(a)
+349,983
+Outstanding
+The Tier-two capital bonds issued in April 2018 have a tenor of 10 years, with a fixed coupon rate of 4.45%
+payable annually. The Bank has an option to redeem part or all of the bonds at face value on 26 April 2023
+if specified redemption conditions as stipulated in the offering documents were met, subject to regulatory
+approval. If the Bank did not exercise this option, the coupon rate of the bonds would remain at 4.45%
+per annum from 27 April 2023 onwards. These Tier-two capital bonds have the write-down feature of a
+Tier-two capital instrument and they are qualified as Tier-two Capital Instruments in accordance with the
+CBIRC requirements.
+(vi)
+(v)
+(iv) The Tier-two capital bonds issued in October 2017 have a tenor of 10 years, with a fixed coupon rate
+of 4.45% payable annually. The Bank has an option to redeem part or all of the bonds at face value on
+16 October 2022 if specified redemption conditions as stipulated in the offering documents were met,
+subject to regulatory approval. If the Bank did not exercise this option, the coupon rate of the bonds
+would remain at 4.45% per annum from 17 October 2022 onwards. These Tier-two capital bonds have the
+write-down feature of a Tier-two capital instrument and they are qualified as Tier-two Capital Instruments in
+accordance with the CBIRC requirements.
+The subordinated fixed rate bonds issued in December 2012 have a tenor of 15 years, with a fixed coupon
+rate of 4.99%, payable annually. The Bank has an option to redeem all of the bonds at face value on
+19 December 2022. If the Bank did not exercise this option, the coupon rate of the bonds would remain at
+4.99% per annum from 20 December 2022 onwards.
+The subordinated fixed rate bonds issued in June 2011 have a tenor of 15 years, with a fixed coupon rate of
+5.30%, payable annually. The Bank has redeemed all of the bonds at face value on 6 June 2021.
+The Tier-two capital bonds issued in March 2019 have a tenor of 10 years, with a fixed coupon rate of
+4.28% payable annually. The Bank has an option to redeem part or all of the bonds at face value on
+18 March 2024 if specified redemption conditions as stipulated in the offering documents were met,
+subject to regulatory approval. If the Bank did not exercise this option, the coupon rate of the bonds
+would remain at 4.28% per annum from 19 March 2024 onwards. These Tier-two capital bonds have the
+write-down feature of a Tier-two capital instrument and they are qualified as Tier-two Capital Instruments in
+accordance with the CBIRC requirements.
+The USD green bonds issued in January 2021 have a tenor of 5 years, with a fixed coupon rate 1.25%,
+payable semi-annually.
+(ii)
+(i)
+Pursuant to the approval by relevant regulatory authorities, the bonds issued by the Group are set out
+as below:
+(1) Bonds issued (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+30 DEBT SECURITIES ISSUED (Continued)
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+(iii)
+349,983
+(vii) The Tier-two capital bonds issued in April 2019 have a tenor of 10 years, with a fixed coupon rate of 4.30%
+payable annually. The Bank has an option to redeem part or all of the bonds at face value on 10 April 2024
+if specified redemption conditions as stipulated in the offering documents were met, subject to regulatory
+approval. If the Bank did not exercise this option, the coupon rate of the bonds would remain at 4.30%
+per annum from 11 April 2024 onwards. These Tier-two capital bonds have the write-down feature of a
+Tier-two capital instrument and they are qualified as Tier-two Capital Instruments in accordance with the
+CBIRC requirements.
+Annual Report 2021 279
+As at 31 December 2021
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+280
+(xi) The medium term notes ("MTNS") were issued by the Overseas Operations of the Group and are measured
+at amortized cost. The details of medium term notes issued were as follows:
+The Tier-two capital bonds issued in March 2019 have a tenor of 15 years, with a fixed coupon rate of
+4.53% payable annually. The Bank has an option to redeem part or all of the bonds at face value on
+18 March 2029 if specified redemption conditions as stipulated in the offering documents were met,
+subject to regulatory approval. If the Bank did not exercise this option, the coupon rate of the bonds
+would remain at 4.53% per annum from 19 March 2029 onwards. These Tier-two capital bonds have the
+write-down feature of a Tier-two capital instrument and they are qualified as Tier-two Capital Instruments in
+accordance with the CBIRC requirements.
+(viii) The Tier-two capital bonds issued in April 2020 have a tenor of 10 years, with a fixed coupon rate of 3.10%
+payable annually. The Bank has an option to redeem part or all of the bonds at face value on 5 May 2025
+if specified redemption conditions as stipulated in the offering documents were met, subject to regulatory
+approval. If the Bank did not exercise this option, the coupon rate of the bonds would remain at 3.10% per
+annum from 6 May 2025 onwards. These Tier-two capital bonds have the write-down feature of a Tier-two
+capital instrument and they are qualified as Tier-two Capital Instruments in accordance with the CBIRC
+requirements.
+(X)
+(1) Bonds issued (Continued)
+30 DEBT SECURITIES ISSUED (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+(ix)
+31 OTHER LIABILITIES (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+Total
+Short-term employee benefits
+Defined contribution benefits
+Early retirement benefits
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+(1) Staff costs payable
+Total
+524,590
+500,443
+92,066
+64,684
+Others
+711
+1,286
+Amount payable to the MOF
+9,824
+10,067
+Lease liabilities
+105,262
+89,651
+61,639
+54,340
+(1)
+(2)
+(i) Short-term employee benefits
+=d
+56,811
+33,809
+42,100
+VAT and other taxes payable
+10,571
+10,235
+59,736
+As at 31 December
+Notes
+2021
+allowance and subsidies
+Housing funds
+35,010
+108
+90,052
+(82,277)
+42,785
+Salaries, bonuses,
+9,406
+137
+Social insurance including:
+385
+5,895
+(5,834)
+446
+(9,377)
+168,852
+Decrease 31 December
+1 January
+2020
+(i)
+57,262
+47,380
+(ii)
+1,386
+Increase
+7,880
+1,088
+1,551
+59,736
+56,811
+2021
+Note
+(iii)
+153,389
+Provision
+Staff costs payable
+As at 31 December 2020
+Outstanding
+Maturity dates ranging from
+October 2022
+Coupon rates (%)
+1.00
+balance
+4,208
+56,305
+June 2021 to October 2025
+September 2021 to November
+2023
+18,871
+3 months Libor+68
+19,564
+to 85bps
+42,643
+(xii) The fixed rate financial bonds issued by ABC in April 2020 have a tenor of 3 years, with a fixed coupon rate
+of 1.99%, payable annually.
+1.00-3.88
+(xiii) The fixed rate financial bonds issued by ABC in April 2021 have a tenor of 3 years, with a fixed coupon rate
+of 3.38%, payable annually.
+Total
+Total
+Maturity dates ranging from Coupon rates (%)
+balance
+Fixed rate RMB MTNS
+Fixed rate HKD MTNS
+Fixed rate USD MTNS
+Floating rate USD MTNS
+May 2023 to April 2024
+2.60-2.70
+1,502
+Fixed rate HKD MTNS
+Fixed rate USD MTNS
+Floating rate USD MTNS
+October 2022 to June 2023
+8,583
+July 2023 to September 2026 0.70-1.65
+34,745
+July 2022 to November 2023 3 months Libor+66
+11,475
+to 85bps
+0.50-1.00
+Medical insurance
+(xiv) The CNY green bonds issued by ABC Financial Leasing Co., Ltd. in June 2019 have a tenor of 3 years, with a
+fixed coupon rate 3.68%, payable annually.
+Notes to the Consolidated Financial Statements
+Annual Report 2021 281
+282
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(ii) As at 31 December 2021, the interbank certificates of deposit were issued by the Bank's Head
+Office and London Branch. The terms of the interbank certificates of deposit ranged from
+one month to one year, with interest rates ranging from -0.51% to 0.59% per annum (As at
+31 December 2020, the terms of the interbank certificate of deposit ranged from one month to
+one year, with interest rates ranging from 1.58% to 3.35% per annum.)
+31 OTHER LIABILITIES
+Notes
+2021
+2020
+Clearing and settlement
+Insurance liabilities
+Income taxes payable
+As at 31 December
+(xv) The fixed rate financial bonds issued by ABC Financial Leasing Co., Ltd. in November 2020 have a tenor of
+3 years, with a fixed coupon rate of 3.90%, payable annually.
+As at 31 December 2021, the commercial papers were issued by the overseas institutions of the
+Group and were measured at amortized cost. The terms of the commercial papers ranged from
+two months to one year, with interest rates ranging from 0.00% to 0.45% per annum (As at
+31 December 2020, the terms of the commercial papers ranged from three months to one year,
+with interest rates ranging from 0.00% to 2.14% per annum.)
+(3) Other debt securities issued by the Group and Bank are commercial papers and interbank certificates
+of deposit.
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+30 DEBT SECURITIES ISSUED (Continued)
+(1) Bonds issued (Continued)
+(xvi) The fixed rate financial bonds issued by ABC Financial Leasing Co., Ltd. in August 2021 have a tenor of
+3 years, with a fixed coupon rate of 3.06%, payable annually.
+(xvii) The fixed rate financial bonds issued by ABC Financial Assets Investment Co., Ltd. in September 2019 have a
+tenor of 3 years, with a fixed coupon rate of 3.30%, payable annually.
+(xviii) The fixed rate financial bonds issued by ABC Financial Assets Investment Co., Ltd. in March 2020 have a
+tenor of 3 years, with a fixed coupon rate of 2.68%, payable annually.
+(i)
+(xix) The fixed rate financial bonds issued by ABC International Holdings Limited in August 2018 have a tenor of
+3 years, with a fixed coupon rate of 4.70%, payable annually. The bonds have expired on 21 August 2021.
+(xx) The fixed rate financial bonds issued by ABC Financial Assets Investment Co., Ltd. in September 2019 have a
+tenor of 5 years, with a fixed coupon rate of 3.40%, payable annually.
+(xxii) The fixed rate financial bonds issued by ABCI Investment Suzhou Corporation Limited in June 2020 have a
+tenor of 5 years, with a fixed coupon rate of 3.80%, payable annually.
+(xxiii) The fixed rate financial bonds issued by ABCI Investment Suzhou Corporation Limited in April 2021 have a
+tenor of 5 years, with a fixed coupon rate of 4.10%, payable annually.
+(xxiv) The fixed rate financial bonds issued by ABCI Investment Beijing Corporation Limited in June 2021 have a
+tenor of 5 years, with a fixed coupon rate of 3.80%, payable annually.
+(xxv) The fixed rate capital replenishment debt issued by ABC Life Insurance in March 2018 have a tenor of
+10 years, with a fixed coupon rate of 5.55%, payable annually. ABC Life Insurance has an option to redeem
+all of the bonds at face value on 4 March 2023. If ABC Life Insurance do not exercise this option, the
+coupon rate of the bonds would increase to 6.55% per annum from 5 March 2023 onwards.
+(xxvi) The fixed rate capital replenishment debt issued by ABC Life Insurance in March 2020 have a tenor of
+10 years, with a fixed coupon rate of 3.60%, payable annually. ABC Life Insurance has an option to redeem
+all of the bonds at face value on 25 March 2025. If ABC Life Insurance do not exercise this option, the
+coupon rate of the bonds would increase to 4.60% per annum from 26 March 2025 onwards.
+(2) As at 31 December 2021, the certificates of deposit were issued by the overseas institutions of the
+Group and were measured at amortized cost. The terms of the certificates of deposit ranged from
+one month to five years, with interest rates ranging from -0.02% to 3.09% per annum. (As at
+31 December 2020, the terms of the certificates of deposit ranged from one month to seven years,
+with interest rates ranging from -0.02% to 3.66% per annum.)
+(xxi) The fixed rate financial bonds issued by ABC Financial Assets Investment Co., Ltd. in March 2020 have a
+tenor of 5 years, with a fixed coupon rate of 2.75%, payable annually.
+367
+5,514
+(5,463)
+Unemployment insurance
+Annuity Scheme
+Total
+2021
+1 January
+Increase
+Basic pensions
+619
+40
+Decrease 31 December
+(10,849)
+694
+360
+7,221
+6,993
+(360)
+(13,562)
+10,924
+40
+(ii) Defined contribution benefits
+(a)
+7,049
+3,613
+(2,623)
+8,039
+Others
+4,276
+Salaries, bonuses, allowance and subsidies, housing funds and social insurance are timely distributed
+and paid in accordance with relevant laws and regulations and the Group's policy.
+10,612
+3,838
+Total
+43,130
+108,958
+(104,708)
+47,380
+(11,050)
+education expenses
+652
+18,277
+4,722
+6,367
+(3,868)
+7,221
+Total
+5,208
+Annuity Scheme
+14,726
+7,880
+The defined contribution benefits are timely distributed and paid in accordance with relevant
+laws and regulations and the Group's policy. There was no forfeited contribution available to
+reduce the contribution payable by the Group under the above schemes.
+Annual Report 2021 283
+284
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(12,054)
+7,880
+40
+249
+(24,771)
+1,386
+2020
+1 January
+Increase
+Decrease
+(243)
+31 December
+452
+8,110
+(7,943)
+619
+Unemployment insurance
+34
+Basic pensions
+No maturity date
+Labor union fees and staff
+(109)
+3,838
+10,982
+(10,071)
+4,749
+Total
+47,380
+Others
+120,336
+57,262
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+31 OTHER LIABILITIES (Continued)
+(1) Staff costs payable (Continued)
+(i) Short-term employee benefits (Continued)
+(110,454)
+2020
+9,145
+4,001
+418
+- Maternity insurance
+9
+223
+(218)
+14
+(2,895)
+· Employment injury insurance
+158
+(153)
+14
+Labor union fees and staff
+education expenses
+8,039
+9
+9
+Note
+Increase
+385
+- Medical insurance
+311
+4,398
+(4,342)
+367
+(4,660)
+- Maternity insurance
+205
+(209)
+9
+Employment injury insurance
+8
+110
+13
+1 January
+4,713
+108
+Decrease
+31 December
+Salaries, bonuses,
+allowance and subsidies
+Housing funds
+Social insurance including:
+332
+aaa
+81,087
+(77,366)
+35,010
+184
+8,933
+(9,009)
+31,289
+N/A
+No conversion
+during the y
+35,000
+00
+400
+100
+10
+Undated tier 1
+tranche(2)
+― second
+after issuance, and reset every 5 years
+as stated below
+in 2020
+capital bonds
+N/A
+No maturity date
+350
+100
+4.50% per annum for the first 5 years
+Undated tier 1
+tranche(2)
+- first
+after issuance, and reset every 5 years
+as stated below
+in 2020
+capital bonds
+40,000
+No maturity date
+3.76% per annum for the first 5 years
+capital bonds
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+The carrying amount, net of direct issuance expenses, was RMB79,899 million as at 31 December
+2021 (31 December 2020: RMB79,899 million).
+These preference shares are classified as equity instruments, and presented as equity in the
+consolidated statement of financial position, and are qualified as Additional Tier-one Capital
+Instruments in accordance with the CBIRC requirements.
+Upon liquidation, the claims of preference shareholders have priority over ordinary equity holders
+on the residual assets of the Bank, but are subordinated to those of depositors, general creditors,
+Tier-two Capital Instruments holders or any other subordinated debt holders with equivalent rights.
+Upon occurrence of the triggering events as stipulated in paragraph 2(1) of the Guidance of the
+CBIRC on Amendments to Commercial Banks' Innovation on Capital Instruments (CBIRC No. 42
+[2019]) and subject to regulatory approval, the first tranche of preference shares and the second
+tranche of preference shares shall be mandatorily converted into ordinary A shares of the Bank at
+the conversion price agreed, partially or entirely. The initial conversion price of the preference shares
+issued by the Bank was RMB2.43 per share. In June 2018, the Bank has issued 25.19 billion ordinary
+A shares to specific investors. The conversion price of the preference shares will be adjusted where
+certain events occur including bonus issues, rights issue, capitalization of reserves and new issuances
+of ordinary shares, subject to terms and formulas provided in the offering documents, to maintain
+the relative interests between preference shareholders and ordinary equity holders. Upon completion
+of the private placement of ordinary shares by the Bank, the mandatory conversion price of the first
+tranche of preference shares and the second tranche of preference shares issued by the Bank will be
+adjusted from RMB2.43 per share to RMB2.46 per share.
+N/A
+As authorized by the ordinary equity holders in the annual general meeting, the Board of Directors
+has the sole discretion to declare and distribute dividends on preference shares. The Bank shall not
+distribute any dividends to its ordinary equity holders before it declares such dividends to preference
+shareholders for the relevant period. The distribution of preference shares dividend is at the Bank's
+discretion and is non-cumulative. Preference shareholders are not entitled to participate in the
+distribution of retained earnings except for the dividends stated above.
+There were no changes in the carrying amounts of the preference shares since issuance.
+The second tranche of 400 million preference shares was issued at par in March 2015. The carrying
+amount, net of direct issuance expenses, was RMB39,955 million as at 31 December 2021.
+The second tranche of preference shares bears a dividend rate of 5.50% per annum; dividends are
+non-cumulative and where payable, are paid annually, for the first five years from issuance. The
+dividend rate will be re-priced every five years thereafter with reference to the five-year PRC treasury
+bonds yield plus a fixed premium of 2.24%. The first five-year dividend period expired on 6 March
+2020. During the second dividend period beginning from 11 March 2020, the base rate and fixed
+premium is 2.60% and 2.24%, respectively, and the coupon rate is 4.84%. The dividend is paid
+annually.
+(1) The Bank was authorized to issue no more than 800 million preference shares of RMB100
+each, pursuant to the approval by its ordinary equity holders and relevant regulatory
+authorities. (Continued)
+33 OTHER EQUITY INSTRUMENTS (Continued)
+The Bank has a redemption option when specified conditions as stipulated in the offering documents
+are met, subject to regulatory approval, whereas preference shareholders have no right to request the
+Bank to redeem the preference shares.
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+in 2021
+after issuance, and reset every 5 years
+as stated below
+― first
+tranche(2)
+The first tranche of 400 million preference shares was issued at par in November 2014. The carrying
+amount, net of direct issuance expenses, was RMB39,944 million as at 31 December 2021. The first
+tranche of preference shares bears a dividend rate of 6.00% per annum; dividends are non-cumulative
+and where payable, are paid annually, for the first five years from issuance. The dividend rate will be
+re-priced every five years thereafter with reference to the five-year PRC treasury bonds yield plus a fixed
+premium of 2.29%. The first five-year dividend period expired on 1 November 2019. During the second
+dividend period beginning from 5 November 2019, the base rate and fixed premium is 3.03% and
+2.29%, respectively, and the coupon rate is 5.32%. The dividend is paid annually.
+(1) The Bank was authorized to issue no more than 800 million preference shares of RMB100
+each, pursuant to the approval by its ordinary equity holders and relevant regulatory
+authorities.
+Annual Report 2021 287
+288
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+930,932
+(619,089)
+Allowance for impairment losses
+3.75
+(719,063)
+24,830,792
+25,913
+1,008,014
+27,237,605
+Total interest-earning assets
+1.90
+Non-interest-earning assets4
+1,363,938
+3.70
+1,538,232
+Item
+Total assets
+28,056,774
+25,863,204
+Liabilities
+Deposits from customers
+20,482,267
+329,593
+1.61
+18,611,986
+284,552
+1.53
+Amounts due to banks and
+other financial institutions5
+2.00
+1,651,501
+26,475
+3.51
+other financial institutions³
+4.38
+Debt securities investments¹
+7,283,225
+252,804
+3.47
+6,812,831
+238,995
+2,045,524
+Non-restructuring-related debt securities
+6,898,990
+242,742
+3.52
+6,428,590
+227,963
+1,326,895
+3.55
+384,235
+10,062
+2.62
+384,241
+11,032
+2.87
+Balances with central banks
+2,230,582
+34,726
+1.56
+2,234,121
+34,271
+1.53
+Amounts due from banks and
+Restructuring-related debt securities²
+40,727
+Net interest income
+2,039,180
+4.
+5.
+6.
+Debt securities investments include debt securities investments at fair value through other comprehensive income and
+debt securities investments at amortized cost.
+Restructuring-related debt securities include the receivable from the MOF and the special government bond.
+Amounts due from banks and other financial institutions primarily include deposits with banks and other financial
+institutions, placements with and loans to banks and other financial institutions and financial assets held under resale
+agreements.
+The average balances of non-interest-earning assets, non-interest-bearing liabilities and allowance for impairment
+losses are the average of their respective balances at the beginning and the end of the period.
+Amounts due to banks and other financial institutions primarily include deposits from banks and other financial
+institutions, placements from banks and other financial institutions as well as financial assets sold under repurchase
+agreements.
+Other interest-bearing liabilities primarily include debt securities issued and borrowings from central banks.
+24
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Discussion and Analysis
+The table below presents the changes in net interest income due to changes in volume and interest rate.
+In millions of RMB
+Net increase/
+(decrease)
+Increase/(decrease) due to
+Volume Interest rate
+Assets
+Loans and advances to customers
+83,678
+(21,422)
+62,256
+Debt securities investments
+16,328
+(2,519)
+13,809
+Balances with central banks
+(55)
+510
+3.
+2.
+Notes: 1.
+2.20
+45,131
+In millions of RMB
+Other interest-bearing liabilities
+2,148,719
+59,707
+2.78
+1,876,373
+56,170
+2.99
+Total interest-bearing liabilities
+24,676,510
+430,027
+1.74
+22,527,539
+1.99
+385,853
+Non-interest-bearing liabilities
+1,223,364
+1,152,232
+Total liabilities
+25,899,874
+23,679,771
+631,753
+577,987
+545,079
+Net interest spread
+1.96
+2.04
+Net interest margin
+2.12
+1.71
+14,419,902
+The table below presents the average balance, interest income/expense, and average yield/cost of interest-earning
+assets and interest-bearing liabilities.
+694,009
+Growth
+rate (%)
+Net interest income
+577,987
+545,079
+32,908
+6.0
+Net fee and commission income
+80,329
+74,545
+5,784
+7.8
+Other non-interest income
+63,430
+39,708
+23,722
+59.7
+Operating income
+721,746
+659,332
+62,414
+9.5
+Less: Operating expenses
+260,275
+229,897
+30,378
+13.2
+Credit impairment losses
+165,886
+164,699
+Increase/
+(decrease)
+In millions of RMB, except for percentages
+2020
+2021
+Discussion and Analysis
+Environment and Prospects
+In 2021, China maintained its global leadership in economic development and pandemic prevention and control with
+its GDP at a growth rate of 8.1% and a two-year average growth rate of 5.1%. The policies of expanding domestic
+demand and promoting consumption continued to play a strong role, with a steady increase in contribution of
+consumption to economic growth and total retail sales of consumer goods growing by 12.5%. Fixed asset investment
+maintained a recovery trend, with an annual growth rate of 4.9%, in which manufacturing investment grew at a fast
+rebound of 13.5%. Taking advantages of China's complete industrial chain and the recovery of external demand,
+exports maintained a high growth rate, with an annual growth rate of 21.2% (denominated in RMB). The global
+supply-demand mismatch led to a sharp rise in industrial prices, with the PPI rising 8.1% year-on-year, while the
+consumer price index (CPI) remained low, rising 0.9% year-on-year. The annual growth rate of broad money (M2) was
+9%, and the aggregate financing to the real economy (flow) was RMB31.35 trillion, which was RMB3.44 trillion less
+than the previous year.
+In 2021, adhering to the general principle of pursuing progress while ensuring stability, the Chinese government
+focused on cross-cyclical adjustments of macro-policies. The quality and efficiency of proactive fiscal policies were
+enhanced, the growth of fiscal expenditure slowed, and local governments' hidden liabilities were strictly controlled.
+The sound monetary policy remained flexible, targeted, reasonable and appropriate, the growth in broad money and
+aggregate financing to the real economy were basically in line with that of nominal GDP, and the macro leverage
+ratio was basically stable. The structural policies made our industrial chains and supply chains more independent
+and controllable, and the green transformation of industries under the peak carbon emissions and carbon neutrality
+("Double Carbon") goal was accelerated. The financial reforms continued to advance, with the policies on cross-
+border RMB were optimized, the Cross-border Wealth Management Connect pilot scheme and the Southbound Bond
+Connect were launched, and the pace of two-way opening-up of the bond market was accelerated.
+In 2022, China's economic development is expected to face the triple pressures of shrinking demand, disrupted
+supply and weakening expectations, yet its advantages and resilience as an enormous economy remain obvious, its
+characteristics of high-quality economic development will be more distinct, and the fundamentals for sound growth
+in the long run remain unchanged. Green transformation investment, manufacturing investment with high prosperity
+and appropriate advance investment in infrastructure will expand the effective investment demand. The exports are
+expected to face certain uncertainties but will remain resilient. Transformation of consumption patterns is anticipated
+to accelerate, and the policy of common prosperity will be conducive to improving the structure of income distribution
+and further releasing consumption potential. The overall degree of supply-demand mismatch is expected to ease, the
+growth rate of PPI is expected to fall, and CPI may pick up due to upstream commodity price transmission.
+In 2022, the overall economic policy will give top priority to "stability", attaching more importance to steady growth.
+The fiscal policy will continue to be proactive, with more emphasis on precision and sustainability, ensuring the
+intensity of fiscal spending, accelerating the progress of spending through pre-arrangement, and strengthening
+support for medium, small and micro enterprises and other economic entities through the implementation of new
+policies to reduce taxes and fees. The monetary policy will place more emphasis on flexibility and appropriateness,
+which maintains the liquidity at a proper and adequate level by leveraging a variety of monetary policy instruments,
+promotes a steady decline in costs of overall financing for enterprises, and guides financial institutions to increase their
+support for the real economy, especially for small and micro enterprises, scientific and technological innovations, and
+green development. The industrial policies will place more emphasis on the green transformation and upgrading of
+traditional industries under the "Double Carbon" goal, promoting the enhancement of core competitiveness of the
+manufacturing industry, and facilitating the virtuous cycle and healthy development of the real estate sector.
+The changes in macro environment and policies will bring more opportunities to the banking industry, and also put
+forward higher requirements for its transformation and development. On the one hand, the development in key areas
+such as green transformation and upgrading, advanced manufacturing industry and infrastructure investment related
+to steady growth will bring opportunities for the banking industry to expand its customers and optimize its credit
+structure; and accelerated development of digital economy led by the pandemic and emergence of new business
+forms and modes will bring broader space for the banks' digital transformation. On the other hand, the decline in
+economic inertia and shift in economic cycle will bring new challenges to its asset quality, the changes in corporate
+financing mode will put forward higher requirements for its innovative services, and the faster growth rate of loans
+compared to that of deposits will bring more difficulties in its asset-liability matching and liquidity management.
+Annual Report 2021 19
+Discussion and Analysis
+In 2022, we will seize opportunities and face challenges, adhere to Party Leadership in the financial work in a
+centralized and unified manner and the general principle of pursuing progress while ensuring stability, implement
+the new development philosophy in full, in the right way, and in all fields of endeavor, contribute to creating a new
+pattern of development, and coordinate the development and the risk prevention. First, we will continue to promote
+our financial services for rural revitalization, strengthen our financial support for the key counties receiving assistance
+in pursuing rural revitalization, and expand the credit to the key fields such as food security, rural industry and rural
+construction, accelerate the digital village project, so as to play the role as a leading bank serving rural revitalization.
+Second, we will follow the requirements of ensuring stability on six key fronts and maintaining security in six key
+areas, and actively provide our financial support for the major projects that aim at "steady growth”, manufacturing,
+technological innovation, small and micro enterprises, green development, and the stable and healthy development of
+the real estate sector, to play the role as a major bank serving the real economy. Third, we will deepen the reform and
+transformation of the key areas, accelerate the implementation of digital transformation applications, business process
+improvement and optimization of labor at the branch outlets to further enhance our development vitality. Fourth, we
+will comprehensively strengthen our risk management, further specify the risk management responsibilities, execute
+forward-looking prevention and accurate disposal of risks in key areas, and continue to promote our capability of
+disaster tolerance and the construction of the network security protection system, so as to strictly hold our risk
+limitations.
+20
+|中国农业银行
+AGRICULTURAL BANK OF CHINA
+Discussion and Analysis
+1,187
+Formulation and Implementation of Strategy
+Adhering to the One Theme of high-quality development: During the 14th Five-Year Plan period, we will ground our
+efforts in the new development stage, apply the new development philosophy, and serve the construction of a new
+pattern of development. We will also promote the high-quality development of the economy and society through
+providing our high-quality financial services, and together pursue our own high-quality development.
+Emphasizing the Two Positionings: During the 14th Five-Year Plan period, we will emphasize our two positioning as
+a leading bank serving rural revitalization and a major bank serving the real economy. We will continue to implement
+our Sannong and County Area strategy deeply and promote sustainable development of our County Area Banking
+Business in serving the national rural revitalization strategy, securing leading roles in terms of market share, Fin-Tech
+and service means, risk control and brand image, to become a leading bank serving rural revitalization. Insisting
+on serving the real economy as the starting point and foothold of our work, we will accelerate the innovation of
+service modes and management methods, comprehensively enhance the efficiency and standard of our service, and
+continuously improve our financial service system for a modern commercial bank with characters of high adaptability,
+competitiveness and inclusiveness, aiming to promote the high-quality development of the economy and society with
+our high-quality financial services and acting as a major bank serving the real economy.
+Implementing the Three Major Strategies: During the 14th Five-Year Plan period, we will fully implement the three
+major strategies of Sannong and County Areas, green finance and digital operation. Firstly, we will fully implement
+the strategic plan of the CPC Central Committee on rural revitalization. Focusing on the quality service, risk control
+and business sustainability, we will fully promote the transformations in respect of our service channels, service modes
+and risk control for the County Area Banking Business. We will strive to develop the business with its own features,
+competitive edges and advantages by our concentrated attention and efforts, so as to enhance our competitiveness
+in the County Area market and our capability of commercially sustainable development and well play our role as a
+national team and a main force in serving Sannong. Secondly, we will earnestly implement the strategic deployment
+of the CPC Central Committee on peak carbon emissions and carbon neutrality. We will incorporate the green
+development concept into the whole process of our management based on the comprehensive green transformation
+of economic and social development. We will also improve the working mechanism for green finance and promote
+diversified innovation of our green financial products, striving to build a distinctive, widely recognized and dominant
+brand in green finance. Thirdly, we will strive to fully integrate the Bank into the digitalization of China. Aiming
+to build our new competitive edges in the digital era, we will drive changes in the modes of work, service and
+governance across the Group through digital transformation. We will promote the construction of our Ten Projects of
+digital transformation according to the principle of urgent use first in order to accelerate the forming of a new model
+of smart banking featuring technology guidance, data empowerment and digital operation.
+Annual Report 2021 21
+Discussion and Analysis
+In 2021, we made a good start on our 14th Five-Year Plan by pushing forward the implementation of the key
+tasks thereunder in an orderly manner, leading to a significant enhancement in our business vitality, continual
+improvement in our asset quality, steadily strengthened competitiveness, and good performance in our operations
+and management. The implementation of "Three Major Strategies" was accelerated. All our regulatory indicators
+for rural revitalization were met, and loans to Sannong and County Areas achieved the goals of "two higher-than,
+two improvements and one stability"; our system for green finance business continued to be built and improved
+and our green credit led the industry; all tasks under the Ten Projects of digital transformation achieved phased
+results, and our digital operating capacities were further improved. While our main business achieved high-quality
+development, our customer management capability was significantly enhanced, our capability in serving new drivers
+of economic growth was continuously improved, the allocation of large categories of assets and investment portfolios
+were constantly optimized, and the working mechanisms for strengthening synergies among regions, businesses,
+and between the Group and its subsidiaries as well as the domestic and overseas institutions were further improved.
+The key tasks of reform and development were carried out in an orderly manner, the level of risk control and case
+prevention was effectively improved, the resource allocation model and the incentive and restraint mechanisms
+were continuously optimized, and the integration of the Party leadership into corporate governance was further
+systematized, standardized and proceduralized.
+22
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Discussion and Analysis
+Financial Statement Analysis
+Income Statement Analysis
+In 2021, the Bank achieved a net profit of RMB241,936 million for the year, representing an increase of
+RMB25,536 million, or 11.8%.
+Changes of Significant Income Statement Items
+Item
+Closely aligning with China's 14th Five-Year Plan and scientifically benchmarking with the development trend of
+the banking industry, we have formulated our 14th Five-Year Plan based on our own realities, solid advantages
+and shortcomings and inputs of all employees. The plan focuses on One Theme, Two Positionings and Three Major
+Strategies, stipulates the guiding ideology and main objectives of the Bank's reform and development in the next
+five years, and specifies the development direction, strategic themes and key initiatives, in order to guide and
+accelerate the Bank-wide transformation of our business operations, consolidate and enhance our comprehensive
+competitiveness and better serve the national strategies.
+0.7
+Impairment losses on other assets
+114
+11.7
+278
+58.5
+Net Interest Income
+Net interest income was the largest component of our operating income, accounting for 80.08% of the
+operating income in 2021. Our net interest income was RMB577,987 million in 2021, representing an increase of
+RMB32,908 million as compared to the previous year, among which, the increase in volume and changes in interest
+rates resulted in an increase of RMB61,422 million and a decrease of RMB28,514 million in net interest income,
+respectively. Our net interest margin and net interest spread were 2.12% and 1.96%, both representing decreases of
+eight basis points, primarily due to: (1) a decrease in average yields of loans and advances to customers as a result of
+factors such as the implementation of national policies on interest concession and loan repricing; (2) an increase in the
+deposit cost due to the market environment.
+Annual Report 2021 23
+Discussion and Analysis
+455
+In millions of RMB, except for percentages
+2021
+2020
+Interest
+Average
+income/
+25,258
+Average
+yield/cost
+Average
+Average
+income/
+yield/cost
+Item
+balance
+expense
+(%)
+balance
+expense
+(%)
+Assets
+Loans and advances to customers
+16,396,903
+Interest
+4.23
+215,925
+475
+Non-controlling interests
+204
+(90)
+-44.1
+Operating profit
+295,471
+264,532
+30,939
+11.7
+Share of result of associates and joint ventures
+409
+518
+(109)
+-21.0
+Profit before tax
+241,183
+753
+295,880
+30,830
+11.6
+Less: Income tax expense
+53,944
+48,650
+5,294
+10.9
+Net profit
+241,936
+216,400
+25,536
+11.8
+Attributable to:
+Equity holders of the Bank
+265,050
+Amounts due from banks and other financial institutions
+Changes in interest income
+2.21
+1,301
+14,702
+15,435
+Bank card fees
+12.5
+2,634
+21,043
+23,677
+Agency commissions
+4.2
+470
+11,174
+11,644
+Consultancy and advisory fees
+-0.3
+(35)
+733
+5.0
+Electronic banking service fees
+30,476
+639
+583
+Others
+-13.6
+(603)
+4,435
+3,832
+11,129
+Custodian and other fiduciary service fees
+105
+1,875
+1,980
+Credit commitment fees
+(739)
+4,307
+26,169
+5.6
+11,094
+(%)
+(decrease)
+329,593
+20,482,267
+Total deposits from customers
+1.61
+180,763
+11,227,956
+1.70
+1.61
+210,597
+Sub-Total
+0.44
+24,482
+5,585,466
+0.37
+21,130
+5,744,284
+12,368,319
+(56)
+18,611,986
+1.53
+2020
+2021
+Settlement and clearing fees
+Item
+Growth rate
+Increase/
+In millions of RMB, except for percentages
+284,552
+Composition of Net Fee and Commission Income
+28
+Annual Report 2021 27
+In 2021, we generated net fee and commission income of RMB80,329 million, representing an increase of
+RMB5,784 million, or 7.8%, as compared to the previous year. In particular, electronic banking service fees increased
+by 16.5%, mainly because we further deepened the digital transformation and strengthened product research and
+development as well as marketing and promotion, which increased the electronic business income; and agency
+commissions increased by 12.5%, mainly due to the increase in commissions generated from the agency fund and
+wealth management business.
+Interest expense on other interest-bearing liabilities increased by RMB3,537 million to RMB59,707 million as compared
+to the previous year, which was primarily due to an increase in the scale of interbank certificate of deposit.
+Net Fee and Commission Income
+Interest Expense on Other Interest-bearing Liabilities
+Interest expense on amounts due to banks and other financial institutions decreased by RMB4,404 million to
+RMB40,727 million, which was primarily due to a decrease in the average cost of placements from overseas banks and
+other financial institutions.
+Interest Expense on Amounts Due to Banks and Other Financial Institutions
+Discussion and Analysis
+-8.8
+Fee and commission income
+98,721
+Increase/
+(decrease)
+Growth rate
+(%)
+Staff costs
+137,953
+123,345
+14,608
+2020
+11.8
+61,558
+49,452
+12,106
+24.5
+Insurance benefits and claims
+30,988
+27,873
+General operating and administrative expenses
+3,115
+2021
+In millions of RMB, except for percentages
+2021
+2020
+Net trading gain
+14,241
+16,405
+Net gain/(loss) on financial investments
+15,035
+Item
+(7,312)
+11
+Total
+34,143
+63,430
+30,614
+39,708
+Operating expenses
+In 2021, our operating expenses increased by RMB30,378 million to RMB260,275 million as compared to the previous
+year; cost-to-income ratio increased by 1.23 percentage points to 30.46% as compared to the previous year.
+Composition of operating expenses
+Net gain on derecognition of financial assets measured at amortized cost
+Other operating income
+Demand
+11.2
+19,797
+Composition of Other Non-interest Income
+In 2021, other non-interest income amounted to RMB63,430 million, representing an increase of RMB23,722 million
+as compared to the previous year. In particular, net gain on financial investments rose by RMB22,347 million, which
+was primarily due to an increase in net gain on other debts instruments at fair value through profit or loss; and
+other operating income rose by RMB3,529 million, which was primarily due to an increase in the premium income of
+subsidiaries.
+Other Non-interest Income
+7.8
+5,784
+74,545
+80,329
+AGRICULTURAL BANK OF CHINA
+Net fee and commission income
+1,771
+16,621
+18,392
+Less: Fee and commission expenses
+8.3
+7,555
+91,166
+10.7
+Depreciation and amortization
+| 中国农业银行
+30,378
+19,551
+246
+1.3
+Taxes and surcharges
+6,606
+5,813
+793
+13.2
+13.6
+Total
+3,373
+3,863
+(490)
+-12.7
+260,275
+229,897
+Others
+2.77
+16.5
+5,642,490
+2,633,532
+Short-term corporate loans
+4.27
+332,975
+7,806,885
+4.09
+364,488
+95,786
+8,919,710
+Average
+yield (%)
+income
+balance
+yield (%)
+income
+balance
+Item
+Corporate loans
+Interest
+3.64
+95,512
+Retail loans
+2.51
+9,201
+366,195
+2.52
+7,584
+300,719
+2,472,008
+Discounted bills
+237,463
+5,334,877
+4.27
+268,702
+6,286,178
+Medium- and long-term corporate loans
+3.86
+4.45
+6,709,545
+Average
+Interest
+(4,031)
+7,568
+156,281
+(4,404)
+(4,530)
+126
+Amounts due to banks and other financial institutions
+3,537
+45,041
+30,096
+Deposits from customers
+Liabilities
+77,082
+(22,130)
+99,212
+562
+14,945
+Average
+Changes in interest expense
+6,384
+Average
+2020
+2021
+In millions of RMB, except for percentages
+The table below presents the average balances, interest income and average yield of loans and advances to customers
+by business type.
+Discussion and Analysis
+Annual Report 2021 25
+37,790
+Interest income from loans and advances to customers increased by RMB62,256 million, or 9.9%, to RMB694,009
+million, which was primarily due to an increase in the scale of loans and advances to customers.
+We achieved interest income of RMB1,008,014 million in 2021, representing an increase of RMB77,082 million as
+compared to the previous year, which was primarily due to an increase of RMB2,406,813 million in the average
+balance of interest-earning assets.
+Note: Changes caused by both volume and interest rate have been allocated to changes in volume.
+Interest Income
+32,908
+(28,514)
+61,422
+Changes in net interest income
+44,174
+Interest Income from Loans and Advances to Customers
+313,225
+Other interest-bearing liabilities
+5,799,734
+60,775
+2,414,982
+2.43
+68,774
+2,833,037
+Time
+Corporate deposits
+cost (%)
+expense
+balance
+cost (%)
+expense
+balance
+Item
+Average
+2.52
+Demand
+5,280,911
+50,222
+4.67
+2.86
+189,467
+6,624,035
+Time
+Retail deposits
+1.41
+Interest
+7,384,030
+118,996
+8,113,948
+Sub-Total
+0.87
+43,014
+4,969,048
+0.95
+1.47
+Average
+103,789
+Interest
+631,753
+14,419,902
+4.23
+694,009
+16,396,903
+Total loans and advances to customers
+2.28
+10,208
+447,088
+1.87
+466,929
+Overseas and others
+4.82
+Average
+279,369
+4.38
+Interest Income from Debt Securities Investments
+8,712
+Interest Income from Balances with Central Banks
+Interest income from debt securities investments was the second largest component of interest income. In 2021, the
+interest income from debt securities investments increased by RMB13,809 million to RMB252,804 million as compared
+to the previous year, which was primarily due to an increase in the scale of debt securities investments.
+2021
+In millions of RMB, except for percentages
+Analysis of Average Cost of Deposits by Product Type
+AGRICULTURAL BANK OF CHINA
+Average
+| 中国农业银行
+26
+Discussion and Analysis
+Interest Expense on Deposits from Customers
+Interest income from balances with central banks increased by RMB455 million to RMB34,726 million as compared
+to the previous year, which was primarily due to the increased average yield of balances with central banks resulting
+from a decrease in the proportion of excess deposits reserves with a low yield.
+Interest expense on deposits from customers increased by RMB45,041 million to RMB329,593 million as compared to
+the previous year, which was primarily due to an increase in the scale of deposits from customers.
+Interest Income from Amounts Due from Banks and Other Financial Institutions
+2020
+Interest income from amounts due from banks and other financial institutions rose by RMB562 million to
+RMB26,475 million as compared to the previous year, which was primarily due to the year-on-year increase in the
+average yield of amounts due from banks and other financial institutions.
+Interest Expense
+Interest expense increased by RMB44,174 million to RMB430,027 million as compared to the previous year, which was
+mainly due to an increase of RMB2,148,971 million in the average balance of interest-bearing liabilities.
+Inter-segment net interest (expense)/income
+(430,027)
+(20,385) (8,027)
+(66,727)
+(59,171)
+(71,233)
+(93,360) (48,988)
+(62,136)
+External interest expense
+19,808
+23,728
+112,282
+159,636
+1,008,014
+19,617
+63,604
+31,990
+65,095
+48,445
+44,643
+(1,401)
+Net interest income
+(21,224)
+136,146
+99,344
+91,273
+97,411
+101,556
+137,552
+(271,993)
+116,342
+Yangtze
+River Delta River Delta
+312,905
+Ningxia, Xinjiang (including Xinjiang Production and Construction Corps
+Branch), Tibet, Inner Mongolia, Guangxi
+22,960
+Liaoning, Heilongjiang, Jilin, Dalian
+Subsidiaries and overseas branches
+292
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV
+NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+39 OPERATING SEGMENTS (Continued)
+Geographical operating segments (Continued)
+Head
+Office
+Pearl
+Bohai
+Central
+Western
+Rim
+China
+China
+Northeastern
+China
+Overseas
+Consolidated
+and Others Eliminations
+total
+For the year ended 31 December 2021
+External interest income
+165,902
+10,380
+46
+Fee and commission income
+33
+24
+5,764
+14,241
+Net gain/(loss) on financial investments
+12,174
+(4,065)
+(925)
+(380)
+(726)
+6,416
+(115)
+2,656
+15,035
+Net gain on derecognition of financial assets
+measured at amortized cost
+9
+Other operating income
+1,053
+970
+970
+629
+448
+483
+883
+2
+11
+1,693
+Chongqing, Sichuan, Guizhou, Yunnan, Shaanxi, Gansu, Qinghai,
+86
+54
+613
+7,621
+39,414
+14,432
+10,999
+8,913
+8,641
+11,416
+2,071
+2,835
+98,721
+Fee and commission expense
+(3,529)
+(3,568)
+(2,707)
+(2,149)
+577,987
+(2,791)
+(634)
+(93)
+(18,392)
+Net fee and commission income
+35,885
+10,864
+8,292
+6,764
+5,850
+8,495
+1,437
+2,742
+80,329
+Net trading gain
+(2,921)
+Shanxi, Hubei, Henan, Hunan, Jiangxi, Hainan, Anhui
+76,281
+Guangdong, Shenzhen, Fujian, Xiamen
+amount
+34,773
+Tax effect
+(8,786)
+Net effect
+25,987
+13,049
+(2,528)
+10,521
+- Amount removed from other comprehensive
+income and recognized in profit or loss
+(1,131)
+(283)
+(1,414)
+Fair value changes on other equity investments
+at fair value through other comprehensive income:
+· Amount of gains recognized directly in other
+comprehensive income
+(282)
+115
+(167)
+31 December 2021
+46,409
+(11,482)
+34,927
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+35 INVESTMENT REVALUATION RESERVE (Continued)
+2020
+Gross carrying
+amount
+39,875
+Tax effect
+(10,191)
+Net effect
+29,684
+31 December 2019
+Gross carrying
+2021
+Amount of gains recognized directly in other
+comprehensive income
+comprehensive income:
+107
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+33 OTHER EQUITY INSTRUMENTS (Continued)
+(2) With the authorization of the annual general meeting and the approval from regulatory
+authorities, the Bank was permitted to issue undated additional tier 1 capital bonds
+("Perpetual bonds" or the "Bonds") of an amount no more than RMB120 billion in 2019.
+The Bank issued undated additional tier 1 capital bonds (first tranche) with the amount of
+RMB85 billion in the national interbank bond market on 16 August 2019, and the issuance was
+completed on 20 August 2019. The denomination of the Bonds is RMB100 each. The Bonds don't
+have any step-up mechanism or any other incentive to redeem. The distribution rate of the Bonds
+will be adjusted at defined intervals and determined by a benchmark rate plus a fixed spread, with a
+distribution rate adjustment period every 5 years, and the annual coupon rate for the first five years
+is 4.39%.
+The Bank issued undated additional tier 1 capital bonds (second tranche) with the amount of
+RMB35 billion in the national interbank bond market on 3 September 2019, and the issuance was
+completed on 5 September 2019. The denomination of the Bonds is RMB100 each. The Bonds don't
+have any step-up mechanism or any other incentive to redeem. The distribution rate of the Bonds
+will be adjusted at defined intervals and determined by a benchmark rate plus a fixed spread, with a
+distribution rate adjustment period every 5 years, and the annual coupon rate for the first five years
+is 4.20%.
+With the authorization of the annual general meeting and the approval from regulatory authorities,
+the Bank was granted to issue undated additional tier 1 capital bonds ("Perpetual bonds" or the
+"Bonds") of an amount no more than RMB120 billion in 2020.
+The Bank issued undated additional tier 1 capital bonds (first tranche) with the amount of
+RMB85 billion in the national interbank bond market on 8 May 2020, and the issuance was
+completed on 12 May 2020. The denomination of the Bonds is RMB100 each. The Bonds don't
+have any step-up mechanism or any other incentive to redeem. The distribution rate of the Bonds
+will be adjusted at defined intervals and determined by a benchmark rate plus a fixed spread, with a
+distribution rate adjustment period every 5 years, and the annual coupon rate for the first five years
+is 3.48%.
+The Bank issued undated additional tier 1 capital bonds (second tranche) with the amount of
+RMB35 billion in the national interbank bond market on 20 August 2020, and the issuance was
+completed on 24 August 2020. The denomination of the Bonds is RMB100 each. The Bonds don't
+have any step-up mechanism or any other incentive to redeem. The distribution rate of the Bonds
+will be adjusted at defined intervals and determined by a benchmark rate plus a fixed spread, with a
+distribution rate adjustment period every 5 years, and the annual coupon rate for the first five years
+is 4.50%.
+With the authorization of the annual general meeting and the approval from regulatory authorities,
+the Bank was granted to issue undated additional tier 1 capital bonds ("Perpetual bonds" or the
+"Bonds") of an amount no more than RMB120 billion in 2021.
+The Bank issued undated additional tier 1 capital bonds (first tranche) with the amount of
+RMB40 billion in the national interbank bond market on 12 November 2021, and the issuance was
+completed on 16 November 2021. The denomination of the Bonds is RMB100 each. The Bonds don't
+have any step-up mechanism or any other incentive to redeem. The distribution rate of the Bonds
+will be adjusted at defined intervals and determined by a benchmark rate plus a fixed spread, with a
+distribution rate adjustment period every 5 years, and the annual coupon rate for the first five years
+is 3.76%.
+Annual Report 2021 289
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+Fair value changes on other debt instruments
+investments at fair value through other
+comprehensive income:
+(Amounts in millions of Renminbi, unless otherwise stated)
+33 OTHER EQUITY INSTRUMENTS (Continued)
+(2) With the authorization of the annual general meeting and the approval from regulatory
+authorities, the Bank was permitted to issue undated additional tier 1 capital bonds
+("Perpetual bonds" or the "Bonds") of an amount no more than RMB120 billion in 2019.
+(Continued)
+The duration of the Perpetual bonds is the same as the continuing operation of the Bank. Subject to the
+satisfaction of the redemption conditions and having obtained the prior approval of the CBIRC, the Bank
+may redeem the Bonds in whole or in part on each distribution payment date from the fifth anniversary
+since the issuance date of the Bonds. Upon the occurrence of a trigger event for write-downs, with the
+approval of the CBIRC and without the need for the consent of the holders of the Bonds, the Bank has
+the right to write down all or part of the aggregate amount of the Bonds then issued and outstanding.
+The claims of the holders of the Bonds will be subordinated to the claims of depositors, general creditors
+and subordinated indebtedness that ranks senior to the Bonds; and shall rank in priority to all classes of
+shares held by shareholders and will rank pari passu with the claims in respect of any other additional
+tier 1 capital instruments of the Bank that rank pari passu with the Bonds.
+The distributions on the Perpetual bonds are non-cumulative. The Bank shall have the right to cancel
+distributions on the Bonds in whole or in part and any such cancellation shall not constitute an event of
+default. The Bank may at its discretion use the proceeds from the cancelled distribution to meet other
+obligations as they fall due. But the Bank shall not make any distribution to ordinary shareholders until
+its decision to resume the distribution payments in whole to the holders of the Bonds.
+The net proceeds from the issuance of the Perpetual bonds after deducting offering related expenses
+were used to replenish the Bank's additional tier 1 capital.
+The carrying amount, net of direct issuance expenses, was RMB279,973 million as at 31 December
+2021 (31 December 2020: RMB239,976 million).
+34 CAPITAL RESERVE
+The capital reserve mainly represents the premium related to ordinary shares issued by the Bank in 2010
+and private placement of ordinary shares to the specific shareholders in 2018. Share premium was recorded
+in the capital reserve after deducting direct issue expenses, which consisted primarily of underwriting fees
+and professional fees.
+35 INVESTMENT REVALUATION RESERVE
+290
+|中国农业银行
+AGRICULTURAL BANK OF CHINA
+31 December 2020
+Fair value changes on other debt instruments
+investments at fair value through other
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Beijing, Tianjin, Hebei, Shandong, Qingdao
+Amount of gains recognized directly in other
+comprehensive income
+(4,238)
+Financial assets held under resale agreements
+Total
+39 OPERATING SEGMENTS
+As at 31 December
+2021
+2020
+74,610
+101,010
+51,802
+12,163
+76,904
+103,110
+207,568
+833,869
+762,598
+1,124,762
+1,175,153
+Operating segments are identified on the basis of internal management reports with respect to the
+components of the Group that are regularly reviewed by the Board and relevant management committees,
+which constitute the chief operating decision makers, for the purposes of allocating resources to segments
+and assessing their performance. The Group's chief operating decision makers review three different sets
+of financial information based on (i) geographical locations, (ii) business activities and (iii) County Area and
+Urban Area banking business.
+The measurement of segment assets and liabilities, as well as segment revenue, expense and results are
+based on the Group's accounting policies. There is no difference between the accounting policies used
+in the preparation of the consolidated financial statements and those used in preparing the operating
+segment information.
+Transactions between segments are conducted under normal commercial terms and conditions. Internal
+charges and transfer pricing are determined with reference to market rates and have been reflected in the
+performance of each segment.
+Segment revenue, results, assets and liabilities include items directly attributable to a segment as well as
+those that can be allocated on a reasonable basis.
+Geographical operating segments
+The details of the geographical operating segments are as follows:
+Head Office
+Yangtze River Delta:
+Pearl River Delta:
+Bohai Rim:
+Central China:
+Western China:
+Northeastern China:
+Overseas and Others:
+Shanghai, Jiangsu, Zhejiang, Ningbo
+other financial institutions
+Placements with and loans to banks and
+Deposits with banks and other financial institutions
+Balance with central banks
+1,188
+(3,050)
+income and recognized in profit or loss
+(750)
+188
+(562)
+Fair value change on other equity investments at fair
+value through other comprehensive income:
+· Amount of gains recognized directly in other
+comprehensive income
+(114)
+29
+(85)
+31 December 2020
+34,773
+(8,786)
+25,987
+Amount removed from other comprehensive
+36 SURPLUS RESERVE
+Subject to the approval of the ordinary equity holders, the statutory surplus reserves can be used for
+replenishing accumulated losses or increasing the Bank's ordinary share capital. The statutory surplus
+reserves amount used to increase the ordinary share capital is limited to a level where the balance of the
+statutory surplus reserves after such capitalization is not less than 25% of the ordinary share capital.
+37 GENERAL RESERVE
+Pursuant to Caijin [2012] No. 20 "Requirements on Impairment Allowance for Financial Institutions"
+(the "Requirement") issued by the MOF, effective on 1 July 2012, in addition to impairment allowance, the
+Bank establishes a general reserve within ordinary equity holders' equity through the appropriation of profit
+to address unidentified potential impairment risks. The general reserve should not be less than 1.5% of the
+aggregate amount of risk assets as defined by the Requirement. The general reserve includes regulatory
+reserve appropriated by the Bank's overseas branches pursuant to local regulatory requirements.
+Pursuant to relevant PRC regulatory requirements, some domestic subsidiaries of the Bank are required to
+appropriate certain amounts of their net profit as general reserves.
+During the year ended 31 December 2021, the Group transferred RMB40,167 million (2020:
+RMB34,433 million) to the General Reserve pursuant to the regulatory requirements in the PRC and
+overseas jurisdictions. Of this amount, RMB39,217 million (2020: RMB34,211 million) related to the
+appropriation proposed for the year ended 31 December 2020 which was approved in the annual general
+meeting held on 27 May 2021.
+On 30 March 2022, the Board of Directors' meeting approved a proposal of appropriation of
+RMB32,221 million to general reserve. Such appropriation will be recognized in the Group's consolidated
+financial statements after approval by ordinary equity holders in the forthcoming annual general meeting.
+Annual Report 2021 291
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+38 CASH AND CASH EQUIVALENTS
+For the purpose of the consolidated statement of cash flows, cash and cash equivalents include the
+following balances with an original maturity of three months or less:
+Cash
+Under PRC Law, the Bank is required to transfer 10% of its net profit determined under the PRC GAAP to a
+non-distributable statutory surplus reserve. Appropriation to the statutory surplus reserve may cease when the
+balance of this reserve has reached 50% of share capital. Pursuant to the resolution of the Board of Directors'
+Meeting held on 30 March 2022, an appropriation of 10% of the profit for the current year, determined
+under the generally accepted accounting principles of the PRC, to the statutory surplus reserve, in the amount
+of RMB24,335 million (2020: RMB21,040 million) was approved. In addition, certain subsidiaries and overseas
+branches also appropriated surplus reserves in accordance with local requirements.
+28,760
+485
+Operating income
+34,143
+15,035
+Net gain on derecognition of financial assets
+measured at amortized cost
+11
+11
+Other operating income
+1,475
+17,158
+1,341
+30,970
+34,143
+Operating income
+269,899
+318,402
+85,942
+47,503
+721,746
+357
+(75)
+(7,181)
+Net (loss)/gain on financial investments
+1,058
+3,851
+98,721
+Fee and commission expense
+(11,392)
+(6,634)
+(39)
+(327)
+(18,392)
+Net fee and commission income
+48,330
+27,456
+1,019
+3,524
+80,329
+Net trading gain
+11,040
+3,201
+14,241
+Operating expenses
+(82,315)
+(112,663)
+(29,168)
+52,205
+11,369
+295,880
+Income tax expense
+(53,944)
+241,936
+Profit for the year
+Depreciation and amortization included
+in operating expenses
+Capital expenditure
+5,230
+5,933
+10,484
+13,909
+3,630
+5,510
+453
+1,592
+19,797
+26,944
+As at 31 December 2021
+Segment assets
+9,539,860
+7,110,002
+156,063
+34,090
+76,243
+295,471
+409
+(36,129)
+(260,275)
+Credit impairment losses
+(111,269)
+(49,672)
+Impairment losses on other assets
+(72)
+(4)
+(4,567)
+(2)
+(378)
+(165,886)
+(36)
+(114)
+Operating profit
+76,243
+156,063
+52,205
+Share of results of associates and joint ventures
+10,960
+409
+Profit before tax
+59,722
+Fee and commission income
+577,987
+496,243
+(1)
+3,169,304
+Non-current assets include property and equipment, investment properties, right-of-use assets, land use rights,
+intangible assets and other long-term assets.
+422,731
+523,658
+77,342
+87,024
+294
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+39 OPERATING SEGMENTS (Continued)
+Business operating segments
+The details of the business operating segments are as follows:
+Corporate banking
+The corporate banking segment provides financial products and services to corporations, government
+agencies and financial institutions. The range of products and services includes corporate loans and
+advances, trade finance, deposit products, corporate wealth management services and other types of
+corporate intermediary services.
+558,971
+Personal banking
+970,556
+Loan commitments and financial
+guarantee contracts
+27,205,047
+Including: Non-current assets (1)
+12,523
+31,128
+18,944
+28,896
+27,810
+42,014
+11,127
+27,410
+199,852
+Segment liabilities
+(3,726,048)
+(5,748,167) (3,442,287) (4,710,246) (3,940,522) (5,264,694) (1,186,993) (1,156,214)
+4,235,544 (24,939,627)
+Unallocated liabilities
+(54,674)
+Total liabilities
+(24,994,301)
+32,779
+11,884,433
+The personal banking segment provides financial products and services to individual customers. The
+range of products and services includes personal loans, deposit products, card business, personal wealth
+management services and other types of personal intermediary services.
+The Group's treasury operations conduct money market and repurchase transactions, debt instruments
+investments, precious metal transactions and derivative transactions for its own accounts or on behalf of
+customers.
+313,486
+304,389
+8,071
+1,008,014
+External interest expense
+(129,812)
+(210,635)
+(86,184)
+(3,396)
+(430,027)
+Inter-segment net interest (expense)/income
+(24,981)
+186,829
+(161,848)
+Net interest income
+227,275
+289,680
+56,357
+4,675
+382,068
+Treasury operations
+External interest income
+total
+Others
+Others comprise components of the Group that are not attributable to any of the above segments, along
+with certain assets, liabilities, income or expenses of the Head Office that could not be allocated on a
+reasonable basis.
+Annual Report 2021 295
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+39 OPERATING SEGMENTS (Continued)
+Business operating segments (Continued)
+296
+|中国农业银行
+AGRICULTURAL BANK OF CHINA
+Corporate
+Personal
+banking
+banking
+Treasury
+operations
+Consolidated
+Others
+For the year ended 31 December 2021
+Total assets
+391,833
+Including: Investment in associates and
+joint ventures
+77,520
+138,579
+38,773
+Share of results of associates and joint ventures
+9,660
+518
+264,532
+518
+Profit before tax
+77,520
+Operating profit
+138,579
+10,178
+265,050
+Income tax expense
+(48,650)
+Profit for the year
+216,400
+Depreciation and amortization included
+in operating expenses
+38,773
+(204)
+(52)
+4
+260,853
+277,603
+77,179
+43,697
+659,332
+Operating expenses
+(71,055)
+(101,669)
+(24,700)
+(32,473)
+(229,897)
+Credit impairment losses
+(112,122)
+(37,359)
+(13,706)
+(1,512)
+(164,699)
+Impairment losses on other assets
+(156)
+Capital expenditure
+4,397
+4,076
+11,209
+12,708
+3,544
+4,491
+Loan commitments and financial
+guarantee contracts
+2,146,637
+1,022,667
+3,169,304
+Annual Report 2021 297
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+39 OPERATING SEGMENTS (Continued)
+County Area and Urban Area segments
+The Group's operating segments organized by County Area and Urban Area banking business are set out as
+follows:
+County Area banking business
+The Group's County Area banking business provides a broad range of financial products and services to
+customers in designated County Area, through its operating branches in the counties or county-level cities
+throughout the PRC. The products and services mainly comprise loans, deposits, bank cards, and other
+types of intermediary services.
+Urban Area banking business
+The Group's Urban Area banking business comprises all banking activities outside of the County Area
+banking business, overseas branches and subsidiaries.
+298
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+(24,994,301)
+Operating income
+Total liabilities
+Unallocated liabilities
+401
+1,447
+19,551
+22,722
+As at 31 December 2020
+Segment assets
+8,618,358
+6,372,074 11,586,282
+494,978
+27,071,692
+Including: Investment in associates and
+joint ventures
+8,865
+8,865
+Unallocated assets
+133,355
+Total assets
+27,205,047
+Segment liabilities
+(8,590,691)
+(12,926,172) (3,129,836)
+(292,928) (24,939,627)
+(54,674)
+30,614
+27,893
+25
+Personal
+banking
+banking
+Treasury
+operations
+Consolidated
+Others
+total
+For the year ended 31 December 2020
+External interest income
+354,333
+279,727
+290,119
+6,753
+930,932
+External interest expense
+(120,316)
+(194,091)
+(68,422)
+(3,024)
+Corporate
+(385,853)
+Business operating segments (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+8,297
+8,297
+Unallocated assets
+143,027
+Total assets
+29,069,155
+Segment liabilities
+(8,833,093) (13,357,389) (4,083,852)
+(311,168) (26,585,502)
+Unallocated liabilities
+Total liabilities
+Loan commitments and financial
+guarantee contracts
+(62,294)
+(26,647,796)
+1,213,942
+874,363
+2,088,305
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+39 OPERATING SEGMENTS (Continued)
+28,926,128
+Inter-segment net interest (expense)/income
+168,042
+1,878
+74,545
+Net trading gain
+8,920
+7,485
+16,405
+Net (loss)/gain on financial investments
+(7,284)
+(4,180)
+1,440
+2,712
+(7,312)
+Net gain on derecognition of financial assets
+measured at amortized cost
+1
+1
+Other operating income
+1,375
+1,321
+491
+(12,647)
+26,784
+Net fee and commission income
+(155,395)
+Net interest income
+221,370
+253,678
+66,302
+3,729
+545,079
+Fee and commission income
+55,436
+33,274
+496
+1,960
+91,166
+Fee and commission expense
+(10,044)
+(6,490)
+(5)
+(82)
+(16,621)
+45,392
+133,355
+5,133
+8,865
+Unallocated liabilities
+(62,294)
+Total liabilities
+(26,647,796)
+Loan commitments and financial
+guarantee contracts
+12,035
+537,337
+366,666
+(26,585,502)
+389,817
+2,088,305
+Non-current assets include property and equipment, investment properties, right-of-use assets, land use rights,
+intangible assets and other long-term assets.
+308,368
+320,502
+75,593
+77,987
+Annual Report 2021 293
+Notes to the Consolidated Financial Statements
+(1)
+3,920,620
+(1,303,874) (1,105,290)
+(5,647,159)
+joint ventures
+1,072
+7,225
+8,297
+Unallocated assets
+143,027
+Total assets
+29,069,155
+Including: Non-current assets (1)
+Segment liabilities
+15,399
+30,401
+20,108
+30,150
+28,146
+42,446
+10,731
+27,094
+204,475
+(2,878,758) (6,304,624) (3,787,707) (5,185,277) (4,293,433)
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+39 OPERATING SEGMENTS (Continued)
+104,665
+90,675
+100,397
+146,982
+22,471
+23,219
+930,932
+External interest expense
+(62,901)
+(81,914)
+(40,592)
+(61,183)
+(50,040)
+(57,814)
+(17,574)
+(13,835)
+(385,853)
+Inter-segment net interest (expense)/income
+(236,844)
+146,586
+Including: Investment in associates and
+295,937
+For the year ended 31 December 2020
+Geographical operating segments (Continued)
+Head
+Office
+Yangtze
+Pearl
+Bohai
+Central
+Western
+Northeastern
+Overseas
+Consolidated
+River Delta
+River Delta
+Rim
+China
+China
+China
+and Others
+Eliminations
+total
+External interest income
+56,373
+28,926,128
+1,292,922 1,158,228
+(632)
+(165,886)
+Impairment losses on other assets
+(20)
+(1)
+(9)
+(45)
+(22)
+(4,104)
+(17)
+Operating profit
+7,245
+72,305
+57,580
+33,631
+38,380
+67,656
+5,856
+(114)
+(33,349)
+(30,379)
+(32,026)
+Operating expenses
+35,518 144,528
+(18,196) (38,779) (27,919)
+107,394
+98,191
+107,196
+154,202
+24,413
+50,304
+721,746
+(32,533)
+(38,428)
+(53,152)
+(14,431)
+(36,837)
+(260,275)
+Credit impairment losses
+(10,057)
+(33,444)
+(21,895)
+12,818
+295,471
+Share of results of associates and
+joint ventures
+3,124
+4,255
+1,193
+515
+19,797
+Capital expenditure
+3,684
+2,565
+3,642
+4,141
+4,014
+5,771
+969
+2,158
+26,944
+As at 31 December 2021
+Segment assets
+5,349,436
+6,245,511 3,777,921 5,144,974 4,261,718 5,616,038
+3,106
+(3,920,620)
+2,546
+1,872
+58
+351
+409
+Profit before tax
+7,303
+72,305
+57,580
+33,631
+38,380
+67,656
+5,856
+13,169
+295,880
+Income tax expense
+(53,944)
+Profit for the year
+241,936
+Depreciation and amortization
+Unallocated assets
+3,186
+26,000
+included in operating expenses
+43,094
+(51)
+(204)
+Operating profit
+6,224
+68,636
+54,468
+35,462
+34,414
+54,338
+3,097
+7,893
+264,532
+Share of results of associates and
+joint ventures
+4
+514
+518
+Profit before tax
+6,228
+(38)
+68,636
+(130)
+12
+(28,845)
+(33,345)
+(47,362)
+(13,395)
+(33,428)
+(229,897)
+Credit impairment losses
+(15,181)
+(26,704)
+(17,796)
+(26,626)
+(31,237)
+(37,932)
+(6,398)
+(2,825)
+(164,699)
+Impairment losses on other assets
+(1)
+1
+3
+(24,797)
+54,468
+34,414
+3,673
+4,607
+1,658
+1,930
+22,722
+As at 31 December 2020
+Segment assets
+5,956,432
+5,698,994 3,443,268
+4,676,597 3,917,314
+5,231,854
+1,175,767 1,207,010
+(4,235,544)
+27,071,692
+Including: Investment in associates and
+joint ventures
+210
+8,655
+56,045
+2,537
+35,462
+2,937
+2,438
+54,338
+3,097
+8,407
+265,050
+Income tax expense
+(48,650)
+Profit for the year
+216,400
+Depreciation and amortization
+1,570
+3,170
+2,572
+3,360
+3,075
+4,150
+1,202
+452
+19,551
+Capital expenditure
+2,942
+(33,097)
+included in operating expenses
+Operating expenses
+Fee and commission expense
+(4,023)
+(2,620)
+(2,476)
+(1,975)
+(2,281)
+(2,529)
+(549)
+91,166
+(168)
+Net fee and commission income
+28,159
+11,959
+8,927
+7,517
+6,379
+9,572
+1,599
+(16,621)
+601
+2,148
+12,101
+40,319
+(15,628)
+16,672
+(1,659)
+Net interest income
+(3,808)
+121,045
+90,073
+85,537
+93,451
+129,487
+21,569
+7,725
+545,079
+Fee and commission income
+32,182
+14,579
+11,403
+8,660
+433
+74,545
+9,492
+10,463
+721
+492
+307
+1,356
+59
+55
+1
+30,614
+(1,839)
+Operating income
+128,436
+97,061
+90,921
+98,993
+139,762
+22,928
+Net trading gain/(loss)
+44,197
+37,034
+Other operating income
+29,033
+659,332
+359
+(151)
+assets measured at amortized cost
+(156)
+(110)
+897
+(76)
+5,179
+Net gain/(loss) on financial investments
+4,058
+16,405
+Net gain on derecognition of financial
+(2,280)
+(2,462)
+(1,034)
+(1,550)
+(7,312)
+(223)
+(5,648)
+1,827
+Income tax expense
+Share of results of associates and joint ventures
+518
+518
+146,960
+118,090
+Profit for the year
+(48,650)
+264,532
+265,050
+Profit before tax
+146,442
+(91,401)
+Operating profit
+(204)
+(177)
+(27)
+Impairment losses on other assets
+(164,699)
+(112,423)
+Credit impairment losses
+Operating expenses
+216,400
+(229,897)
+(138,496)
+118,090
+(52,276)
+8,865
+in operating expenses
+1,787
+(616)
+659,332
+Ratio to
+similar
+transactions
+23
+0.18%
+136,700
+(8,942,453) (16,133,874)
+27,205,047
+133,355
+27,071,692
+(136,700)
+17,570,020
+8,865
+9,638,372
+Total liabilities
+Unallocated liabilities
+Segment liabilities
+Total assets
+Unallocated assets
+Including: Investment in associates and joint ventures
+Segment assets
+As at 31 December 2020
+22,722
+19,551
+11,984
+15,732
+7,567
+6,990
+Capital expenditure
+Depreciation and amortization included
+397,538
+External interest income
+Operating income
+(122,135)
+122,135
+Inter-segment net interest income/(expense)
+(385,853)
+(264,791)
+(121,062)
+External interest expense
+930,932
+700,241
+230,691
+For the year ended 31 December 2020
+total
+Net interest income
+business Eliminations
+Consolidated
+Urban Area
+banking
+0.31%
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+300
+County Area and Urban Area segments (Continued)
+39 OPERATING SEGMENTS (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+For the year ended 31 December 2021
+Amount
+(Amounts in millions of Renminbi, unless otherwise stated)
+business
+261,794
+231,764
+545,079
+30,614
+26,107
+4,507
+Other operating income
+1
+1
+measured at amortized cost
+Net gain on derecognition of financial assets
+16,405
+(7,312)
+(3,311)
+(4,001)
+Net loss on financial investments
+313,315
+16,184
+Net trading gain
+- 74,545
+45,242
+29,303
+Net fee and commission income
+91,166
+(16,621)
+(10,182)
+(6,439)
+Fee and commission expense
+55,424
+35,742
+Fee and commission income
+221
+Amount transactions
+316,656
+2020
+Liabilities
+Due to customers
+4,018
+0.02%
+8,385
+0.04%
+Other liabilities
+– redemption of treasury bonds on
+behalf of the MOF
+amount payable to the MOF
+Interest income
+Interest expense
+Fee and commission income
+4.05%
+Net trading gain
+1,286
+0.00%
+0.26%
+4
+0.00%
+711
+0.14%
+Year ended 31 December
+2021
+2020
+Ratio to
+similar
+Ratio to
+similar
+Amount transactions
+Amount transactions
+4
+28,513
+3.94%
+Receivable from the MOF
+(24,939,627)
+Notes to the Consolidated Financial Statements
+(54,674)
+(24,994,301)
+Loan commitments and financial guarantee contracts
+970,680
+2,198,624
+3,169,304
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+40 RELATED PARTY TRANSACTIONS
+(1) The Group and the MOF
+324,619
+As at 31 December 2021, the MOF directly owned 35.29% (31 December 2020: 35.29%) of the
+ordinary shares of the Bank.
+The Group had the following balances and transactions with the MOF in its ordinary course of
+business under normal commercial terms:
+As at 31 December 2021
+Balance
+Ratio to
+similar
+transactions
+As at 31 December 2020
+Ratio to
+similar
+Balance transactions
+Assets
+Treasury bonds and special government
+bond
+797,193
+9.69%
+754,668
+9.65%
+The MOF is a Chinese government ministry, primarily responsible for managing state fiscal revenue
+and expenditure, and establishing and enforcing taxation policies. It reports to the Chinese State
+Council.
+Ratio to
+similar
+2.83%
+3.26%
+As at 31 December 2021, Huijin directly owned 40.03% (31 December 2020: 40.03%) of the
+ordinary shares of the Bank.
+Transactions with Huijin
+The Group had the following balances and transactions with Huijin in its ordinary course of business.
+These balances and transactions are priced based on market prices and conducted under normal
+commercial terms.
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+As at 31 December 2021
+Ratio to
+similar
+Assets
+Loans and advances to customers
+Financial investments
+Balance transactions
+Balance
+As at 31 December 2020
+Ratio to
+similar
+transactions
+52,357
+Central Huijin Investment Ltd. ("Huijin") is a wholly-owned subsidiary of China Investment
+Corporation Limited, which is incorporated in Beijing, PRC. Huijin was established to hold certain
+equity interests in state-owned financial institutions as authorized by the Chinese State Council
+and does not engage in other commercial activities. Huijin exercises its legal rights and assumes
+obligations related to the Bank on behalf of the PRC Government.
+0.64%
+0.03%
+0.86%
+Liabilities
+Due to customers
+Interest income
+Interest expense
+Net trading gain
+38,090
+0.17%
+5,447
+0.03%
+Year ended 31 December
+2021
+3,951
+67,509
+30,376
+(2) The Group and Huijin
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(50)
+0.01%
+(100)
+0.03%
+1,133
+1.15%
+1,294
+1.42%
+126
+0.88%
+95
+0.58%
+40 RELATED PARTY TRANSACTIONS (Continued)
+Interest rate ranges for transactions with the MOF during the year are as follows:
+Due to customers
+Year ended 31 December
+2021
+%
+2020
+%
+0.00-9.00
+0.01-0.80
+0.00-9.00
+0.00-2.81
+The Group's redemption commitment for treasury bonds underwriting is disclosed in Note IV 42
+Contingent Liabilities and Commitments.
+Annual Report 2021 301
+302
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Treasury bonds and receivable from the MOF
+Annual Report 2021 299
+County Area
+banking
+(26,647,796)
+Interest income
+similar
+Ratio to
+Ratio to
+similar
+2020
+2021
+Year ended 31 December
+(5) The Bank and its subsidiaries (Continued)
+40 RELATED PARTY TRANSACTIONS (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+306
+Annual Report 2021 305
+0.02%
+331
+0.00%
+16
+management products issued by the Group
+Non-principal guaranteed wealth
+3.21%
+8,482
+0.67%
+2,034
+Letters of guarantee issued and guarantees
+Off-balance sheet items
+Net gain on financial investments
+0.14%
+Amount transactions
+0.14%
+Operating expense
+5.47%
+(909)
+1.75%
+(321)
+Fee and commission expense
+0.10%
+(373)
+0.09%
+(368)
+Interest expense
+0.03%
+9
+0.30%
+94
+Other operating income
+1.98%
+1,807
+1.80%
+1,777
+Fee and commission income
+0.65%
+107
+0.00%
+0.17%
+transactions
+Amount
+1,568
+1,440
+1
+(242)
+753
+986
+As at 31 December 2021
+Ratio to
+similar
+Balance transactions
+Placements with and loans to banks and
+other financial institutions
+Assets
+The Bank had the following balances and transactions with its subsidiaries in its ordinary course of
+business. These balances and transactions are priced based on market prices and conducted under
+normal commercial terms.
+(5) The Bank and its subsidiaries
+Management considers that these transactions are activities conducted in the ordinary course of
+business, and that the dealings of the Group have not been significantly or unduly affected by the
+fact that the Group and those entities are government related. The Group has also established pricing
+policies for products and services and such pricing policies do not depend on whether or not the
+customers are government authorities, agencies, affiliates and other State controlled entities.
+Other than disclosed above, a significant portion of the Group's banking transactions are entered into
+with government authorities, agencies, affiliates and other State controlled entities. These transactions
+are entered into under normal commercial terms and conditions and mainly include provision of
+credit and guarantee, deposits, foreign exchange transactions, derivative transactions, agency
+services, underwriting and distribution of bonds issued by government agencies, purchase, sales and
+redemption of investment securities issued by government agencies.
+(4) The Group and other government related entities
+40 RELATED PARTY TRANSACTIONS (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+4.84
+0.63-3.35
+0.30-5.20
+2.58-3.90
+0.46-4.26
+4.84
+2020
+%
+2021
+%
+Other equity instruments
+Due to customers
+Financial assets held under resale agreements
+Year ended 31 December
+Interest rate ranges for transactions with SSF during the year are as follows:
+Amount transactions
+32
+(2,226)
+0.53%
+0.02%
+158
+(2,026)
+0.00%
+0.52%
+transactions
+Balance
+0.20%
+As at 31 December 2020
+Ratio to
+similar
+transactions
+18.99%
+Other liabilities
+0.01%
+1,624
+0.01%
+1,857
+Due to customers
+1.34%
+18,657
+0.87%
+14,079
+financial institutions
+Deposits from banks and other
+Liabilities
+0.02%
+24
+0.08%
+102
+Other assets
+0.08%
+6,230
+0.00%
+365
+0.22%
+1,786
+Financial assets held under resale agreements
+Financial investments
+16.02%
+87,643
+84,863
+Amount
+0.09%
+0.09%
+Equity
+Deposits from Annuity Scheme
+Liabilities
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+308
+The Group had the following balances and transactions with the Annuity Scheme set up by the Bank
+apart from the obligation for defined contribution to the Annuity Scheme:
+(9) The Group and the Annuity Scheme
+40 RELATED PARTY TRANSACTIONS (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+Annual Report 2021 307
+As at 31 December 2021, the Bank's balance of credit related transactions to the related natural
+persons, and entities that are controlled, jointly controlled, or significantly influenced by either the
+key management personnel of the Group or their close relatives as defined in the Administration of
+Connected Transactions between Commercial Banks and Their Insiders totaled RMB4,085 million
+(31 December 2020: RMB3,064 million), and did not have any non credit transaction balance
+(31 December 2020: nil).
+The Group issued loan and credit card business to related natural persons (as defined in the
+Administrative Measures on Information Disclosure by Listed Companies issued by the CSRC). As at
+31 December 2021, the balance of such loan amounted to RMB11.97 million (31 December 2020:
+RMB12.87 million).
+(8) Related natural persons transactions
+The compensation of key management personnel for the year ended 31 December 2020 was not
+decided at the time when the Group's 2020 consolidated financial statements were released and
+the amount of remuneration of Directors and other members of key management recognized in
+the consolidated income statement for the year of 2020 was RMB9.99 million. Supplementary
+announcement on final compensation of RMB15.91 million was released by the Bank on
+30 August 2021. The comparative figures for the year of 2020 have been restated accordingly.
+According to the regulations of the relevant authorities in the PRC, the key management personnel's
+final emoluments for the year ended 31 December 2021 have not been finalized. Management of the
+Group believes that the difference between the final emoluments and that disclosed above will not
+have significant impact on the consolidated financial statements of the Group. The final compensation
+will be disclosed in a separate announcement when determined.
+15.91
+2020
+Year ended 31 December
+2021
+11.94
+Salaries, bonuses and staff welfare
+The remuneration of Directors and other members of key management during the years was as
+follows:
+Key management personnel are those persons who have the authority and responsibility to plan,
+direct and control the activities of the Group. Key management personnel of the Group, their close
+relatives, and entities that are controlled, jointly controlled, or significantly influenced by either the
+key management personnel of the Group or their close relatives, are considered as related parties
+of the Group. The Group enters into banking transactions with above related parties in the normal
+course of business. As at 31 December 2021, the balance of loans and advances to the above related
+parties is RMB10.40 million (31 December 2020: RMB6.85 million).
+(7) Key management personnel
+N/A
+Other equity instruments
+2.00-2.44
+As at 31 December 2021
+Ratio to
+similar
+Balance
+0.00-5.00
+4.84-5.32
+4.84-5.32
+0.00-5.00
+2020
+%
+2021
+%
+Year ended 31 December
+Other equity instruments
+Deposits from Annuity Scheme
+Interest rate range for transactions with the Annuity Scheme during the year is as follows:
+Amount transactions
+(240)
+Interest expense
+Amount transactions
+0.05%
+(185)
+0.06%
+Ratio to
+similar
+Ratio to
+similar
+2020
+Year ended 31 December
+2021
+2.42%
+7,750
+2.08%
+7,500
+0.02%
+4,326
+0.03%
+6,319
+As at 31 December 2020
+Ratio to
+similar
+transactions
+Balance transactions
+(197)
+N/A
+0.00-0.72
+%
+Balance transactions
+Ratio to
+similar
+As at 31 December 2021
+financial institutions
+Deposits from banks and other
+Liabilities
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+The Group had the following balances and transactions with its associates and joint venture in its
+ordinary course of business. These balances and transactions are priced based on market prices and
+conducted under normal commercial terms.
+0.30-3.15
+0.30-1.85
+0.00-4.13
+2.50-4.70
+0.00-3.68
+0.00-5.12
+1.44-2.96
+N/A
+0.04-4.10
+1.21-3.65
+2020
+%
+2021
+%
+(6) The Group and its associates and joint venture
+Deposits from banks and other financial institutions
+Due to customers
+Financial investments
+Financial assets held under resale agreements
+other financial institutions
+Placements with and loans to banks and
+Year ended 31 December
+Balance
+2020
+%
+As at 31 December 2020
+Ratio to
+similar
+transactions
+0.00%
+Year ended 31 December
+2021
+Deposits from banks and other financial institutions
+other financial institutions
+Placements with and loans to banks and
+(6) The Group and its associates and joint venture (Continued)
+40 RELATED PARTY TRANSACTIONS (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+0.00%
+0
+0.00%
+transactions
+1
+Amount
+Amount transactions
+Ratio to
+similar
+Ratio to
+similar
+2020
+2021
+Year ended 31 December
+2,088,305
+Interest expense
+Interest income
+4
+management products issued by the Group
+Non-principal guaranteed wealth
+Off-balance sheet items
+16
+Ratio to
+similar
+0.00%
+2020
+255,547
+322,440
+577,987
+Fee and commission income
+38,344
+Fee and commission expense
+(7,388)
+60,377
+(11,004)
+98,721
+(18,392)
+Net fee and commission income
+30,956
+49,373
+80,329
+Net trading gain
+6,497
+7,744
+14,241
+Net (loss)/gain on financial investments
+(2,476)
+17,511
+15,035
+Net gain on derecognition of financial assets
+measured at amortized cost
+11
+Other operating income
+4,471
+Net interest income
+29,672
+(136,984)
+Inter-segment net interest income/(expense)
+Due to customers
+Financial investments
+Loans and advances to customers
+Interest rate ranges for transactions with Huijin during the year are as follows:
+0.18%
+29
+0.16%
+0.04%
+0.14%
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+39 OPERATING SEGMENTS (Continued)
+County Area and Urban Area segments (Continued)
+County Area
+banking
+Urban Area
+banking
+Consolidated
+business
+business Eliminations
+total
+For the year ended 31 December 2021
+External interest income
+259,517
+748,497
+External interest expense
+(140,954)
+(289,073)
+1,008,014
+(430,027)
+136,984
+||
+11
+34,143
+Operating income
+Capital expenditure
+7,758
+6,521
+12,039
+20,423
+19,797
+26,944
+As at 31 December 2021
+Segment assets
+10,419,215
+Including: Investment in associates and joint ventures
+18,612,453
+8,297
+(105,540)
+28,926,128
+8,297
+Unallocated assets
+143,027
+Total assets
+29,069,155
+Segment liabilities
+(9,631,167) (17,059,875)
+105,540
+(26,585,502)
+Unallocated liabilities
+(62,294)
+Total liabilities
+Loan commitments and financial guarantee contracts
+703,422
+1,384,883
+Ratio to
+similar
+in operating expenses
+Depreciation and amortization included
+241,936
+Profit for the year
+294,995
+426,751
+721,746
+Operating expenses
+(104,046)
+(156,229)
+(260,275)
+Credit impairment losses
+(64,790)
+(101,096)
+(165,886)
+Impairment losses on other assets
+(48)
+Year ended 31 December
+2021
+%
+N/A
+(66)
+Operating profit
+126,111
+169,360
+295,471
+Share of results of associates and joint ventures
+409
+409
+Profit before tax
+126,111
+169,769
+295,880
+Income tax expense
+(53,944)
+(114)
+2020
+%
+2,844
+(148)
+3.55-3.92
+2.15-5.15
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+Annual Report 2021 303
+0.15%
+3,000
+management products issued by the Group
+Non-principal guaranteed wealth
+0.59%
+1,800
+Letters of guarantee issued and guarantees
+Off-balance sheet items
+0.63%
+2,000
+0.56%
+2,000
+Other equity instruments
+Equity
+0.02%
+3,921
+0.02%
+4,159
+Due to customers
+44.36%
+48,444
+27.50%
+9,909
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+agreements
+40 RELATED PARTY TRANSACTIONS (Continued)
+As at 31 December 2021, the Bank's shares held by SSF accounted for 6.72% of the Bank's total
+share capital (31 December 2020: 6.95%). The daily business transactions between the Group and the
+SSF are priced based on market prices and conducted on normal commercial terms. The Group had
+the following balances and transactions with the SSF:
+2.15-4.38
+0.45-2.10
+2021
+Year ended 31 December
+0.39%
+1,250
+0.35%
+1,250
+Interest expense
+Interest income
+0.25%
+51,827
+0.30%
+65,415
+Other equity instruments
+Equity
+Due to customers
+Liabilities
+Financial assets held under resale agreements 43,755
+4.16%
+33,966
+5.22%
+Balance transactions
+As at 31 December 2021
+Ratio to
+similar
+Balance transactions
+Assets
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+304
+(3) National Council for Social Security Fund of the People's Republic of China
+Financial assets sold under repurchase
+As at 31 December 2020
+Ratio to
+similar
+11,259
+17,137
+18.21%
+4,003
+Derivative financial assets
+18.31%
+100,125
+27.58%
+123,271
+other financial institutions
+Placements with and loans to banks and
+20.67%
+89,726
+40.66%
+88,842
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Balance transactions
+Deposits with banks and other financial
+institutions
+Assets
+As at 31 December 2020
+Ratio to
+similar
+As at 31 December 2021
+Ratio to
+similar
+Huijin has equity interests in certain other banks and financial institutions under the direction of the
+Central Government. The Group enters into transactions with these banks and financial institutions
+in the ordinary course of business. These balances and transactions are priced based on market
+prices and conducted under normal commercial terms. The Group had the following balances with
+companies under Huijin:
+Transactions with companies under Huijin
+(2) The Group and Huijin (Continued)
+40 RELATED PARTY TRANSACTIONS (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+17.25%
+1.73-2.25
+27.67%
+Financial assets held under resale agreements
+Balance transactions
+3.29%
+2,747
+27,577
+Derivative financial liabilities
+37.64%
+147,049
+23.42%
+institutions
+Placements from banks and other financial
+6.66%
+92,890
+4.88%
+79,144
+institutions
+Deposits from banks and other financial
+68,168
+9.35%
+27,349
+3.35%
+Liabilities
+Loans and advances to customers
+20,935
+0.13%
+64,047
+14.21%
+0.44%
+Financial investments
+736,027
+8.94%
+731,695
+1.15%
+3.01%
+33,379
+3.59%
+Interest expense
+(3,132)
+0.73%
+Net trading gain
+0.64%
+30,332
+149
+1.05%
+0.76%
+Fee and commission income
+1,133
+(2,459)
+124
+3,000
+Proportion
+1,800
+0.59%
+Non-principal guaranteed wealth
+management products issued by
+the Group
+4
+0.00%
+0.15%
+Interest income
+Transaction amount
+2021
+2020
+Related
+party
+Related
+party
+transactions
+Proportion
+transactions
+Year ended 31 December
+1,294
+42 CONTINGENT LIABILITIES AND COMMITMENTS
+Annual Report 2021 309
+(2) Unconsolidated structured entities (Continued)
+Unconsolidated structured entities sponsored and managed by the Group (Continued)
+There were no contractual liquidity arrangements, guarantees or other commitments between the
+Group and any third parties that could increase the level of the Group's risk from WMPs disclosed
+above during the period ended 31 December 2021 and 31 December 2020. The Group was not
+required to absorb any losses incurred by WMPs.
+In addition, other unconsolidated structured entities sponsored and managed by the Group included
+funds, asset management plans and asset-backed securities. As at 31 December 2021, the total assets
+of these products amounted to RMB463,451 million (31 December 2020: RMB448,388 million).
+During the year ended 31 December 2021, the Group's interest in these products mainly included net
+fee and commission income of RMB1,530 million (2020: RMB877 million).
+Other unconsolidated structured entities held by the Group
+The Group invests in other unconsolidated structured entities which are sponsored and managed
+by other entities for investment return, and records trading gains or losses and interest income
+therefrom. These unconsolidated structured entities primarily include asset management plans,
+wealth management, funds, trust plans, asset-backed securities and debt investment plans. etc. As
+at 31 December 2021, the related carrying amount of investments and the maximum exposure by
+the Group to these other unconsolidated structured entities was RMB80,229 million (31 December
+2020: RMB92,193 million), included under the financial assets at fair value through profit or loss,
+debt instrument investments at amortized cost and other debt instrument investments at fair value
+through other comprehensive income categories in the consolidated statement of financial position.
+The information on the size of total assets of these unconsolidated structured entities was not readily
+available in the public domain.
+Legal proceedings and others
+The Bank and its subsidiaries are involved as demandants/defendants in certain lawsuits arising from their
+normal business operations. As at 31 December 2021, provisions of RMB5,333 million were made by the
+Group (31 December 2020: RMB5,560 million) based on court judgments or advice of legal counsel, and
+included in Note IV 31 Other Liabilities. Management of the Group believes that the final result of these
+lawsuits will not have a material impact on the financial position or operations of the Group.
+On 28 September 2016, the Bank and its New York Branch entered into a Cease and Desist Order with
+the Board of Governors of the Federal Reserve System of the United States. On 4 November 2016, the
+Bank and its New York Branch entered into a Consent Order with New York State Department of Financial
+Services (the "Department") and paid a civil monetary penalty to the Department accordingly. As at
+31 December 2016, the above-mentioned civil monetary penalty was paid and reflected in the consolidated
+financial statements for the year ended 31 December 2016.
+Annual Report 2021 311
+312
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+42 CONTINGENT LIABILITIES AND COMMITMENTS (Continued)
+and guarantees
+41 STRUCTURED ENTITIES (Continued)
+1.42%
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+AGRICULTURAL BANK OF CHINA
+310
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+41 STRUCTURED ENTITIES
+(1) Consolidated structured entities
+Principal guaranteed WMPs sponsored and managed by the Group
+Principal guaranteed WMPs sponsored and managed by the Group represent products to which the
+Group has guaranteed the investor's principal investment, regardless of their actual performance.
+Investments made by these products and the corresponding liabilities are measured at fair value
+through profit or loss, respectively. As at 31 December 2021, the principal-guaranteed WMPs has fully
+settled at maturity.
+Other consolidated structured entities
+Other structured entities consolidated by the Group include certain asset management plans, funds
+and securitization products issued, managed and/or invested by the Group. The Group controls these
+entities because the Group has power over, is exposed to, or has rights to, variable returns from its
+involvement with these entities and has the ability to use its power over these entities to affect the
+amount of the Group's returns.
+(2) Unconsolidated structured entities
+Unconsolidated structured entities sponsored and managed by the Group
+Unconsolidated structured entities sponsored and managed by the Group mainly include non-
+principal guaranteed WMPs, which are not subject to any guarantee by the Group of the principal
+invested or interest to be paid. The WMPs invest in a range of assets, most typically money market
+instruments, debt securities and non-standardized debt assets. As the manager of these WMPs, the
+Group, on behalf of the investors in these WMPs, invests the funds raised from investors to the assets
+as described in the investment plan related to each WMP and distributes profit to investors based on
+product performance.
+As at 31 December 2021, the total assets invested by these WMPs amounted to RMB2,210,935
+million (31 December 2020: RMB2,170,621 million) and the corresponding outstanding WMPs issued
+by the Group amounted to RMB2,072,533 million (31 December 2020: RMB1,949,722 million).
+During the year ended 31 December 2021, the Group's interest in these WMPS included net fee
+and commission income of RMB6,129 million (2020: RMB6,243 million) and net interest income of
+RMB426 million (2020: RMB632 million), which related to placements and repo transactions entered
+into by the Group with these WMP Vehicles.
+The Group enters into placements and repo transactions at market interest rates with these
+WMPs. The average balance and the weighted average maturity during 2021 were RMB14,238
+million and 6.42 days (2020: RMB23,423 million and 6.25 days), respectively. And there was no
+outstanding balance for the above-mentioned transactions at 31 December 2021 (31 December
+2020: RMB143,545 million). The Group was under no obligation to enter into these transactions. The
+outstanding balance of these transactions was presented in placements with and loans to banks and
+other financial institutions and financial assets held under resale agreements, which represented the
+Group's maximum exposure to the WMPS.
+| 中国农业银行
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Letters of guarantee issued
+18.31%
+11,000
+Legal proceedings and others (Continued)
+Derivative financial assets
+4,003
+18.21%
+17,137
+27.67%
+Financial assets held under
+100,125
+resale agreements
+8.52%
+61,315
+7.51%
+Loans and advances to customers
+20,935
+0.13%
+67,998
+71,332
+27.58%
+123,271
+and other financial institutions
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+40 RELATED PARTY TRANSACTIONS (Continued)
+(10) Proportion of transactions with major related parties
+Related party transactions with subsidiaries have been offset in the process of preparing consolidated
+financial statements. When calculating the proportion of related party transactions, related party
+transactions do not include related party transactions with subsidiaries.
+Transaction Balance
+As at 31 December 2021
+Related
+party
+transactions Proportion
+As at 31 December 2020
+Related
+party
+transactions
+Proportion
+Deposits from banks and other
+financial institutions
+Placements with and loans to banks
+88,842
+40.66%
+89,726
+20.67%
+0.47%
+Financial investments
+1,910,196
+23.21%
+Due to customers
+Other liabilities
+9,909
+27.50%
+48,444
+44.36%
+118,001
+0.54%
+73,906
+0.36%
+1,290
+0.26%
+715
+0.14%
+Other equity instruments
+10,750
+2.99%
+repurchase agreements
+3.44%
+Financial assets sold under
+11,259
+1,870,528
+23.91%
+Deposits from banks and other
+financial institutions
+79,160
+4.88%
+92,890
+6.66%
+Placements from banks and other
+financial institutions
+68,168
+23.42%
+147,049
+37.64%
+Derivative financial liabilities
+2,747
+14.21%
+17.25%
+As at 31 December 2021, the Bank and its New York Branch have basically completed the main part of the
+rectification, and it is expected that this event is unlikely to lead to the outflow of economic benefits.
+The Group received debt securities and bills as collateral in connection with the securities lending
+transactions and the purchase of assets under resale agreements (Note IV 16 Financial Assets Held
+Under Resale Agreements). The Group did not hold any collateral that can be resold or re-pledged as at
+31 December 2021 and 31 December 2020.
+As at 31 December
+2021
+Credit risk management (Continued)
+The Group writes off financial assets, in whole or in part, when it has exhausted all practical recovery
+efforts and has concluded there no reasonable expectation of recovery. Indicators that there is
+no reasonable expectation of recovery include ceasing enforcement activity and where the Group's
+recovery method is foreclosing on collateral and the value of the collateral is such that there is no
+reasonable expectation of recovering in full.
+During the reporting period, the Group continued to improve the comprehensive risk management
+system to ensure effective risk management. The Group strengthened credit risk management in key
+areas and asset quality control. The Group accelerated the disposal of non-performing loans to ensure
+the stability of assets quality.
+Apart from the credit risk exposures on credit-related assets, the credit risk arising from treasury
+operation business is managed by selecting counterparties with acceptable credit quality, balancing
+credit risk and return, referencing to both internal and external credit rating information where
+available and applying appropriate limits subject to different level of management authority, and
+timely reviewing and adjusting those limits in credit system. In addition, the Group also provide
+loan commitments and financial guarantee services to customers which may require the Group to
+make payments on behalf of customers upon their failure to perform under the terms of the related
+contract. Risks arising from loan commitments and financial guarantees are similar to those associated
+with loans and advances. These transactions are, therefore, subject to the same risk management
+policies and procedures.
+Measurement of ECL
+The Group applies the ECL model to calculate loss allowances for its debt financial instruments
+measured at amortized cost and FVOCI, as well as loan commitments and financial guarantee
+contracts.
+44.1 Credit risk (Continued)
+Methods applied by the Group in assessing the expected credit losses of its financial assets include
+risk parameters model and the discounted cash flow ("DCF") model. Retail credit assets and Stage I
+and Stage II wholesale credit assets are assessed using risk parameters, while Stage III wholesale credit
+assets are subject to the discounted cash flow method.
+Segmentation of portfolio sharing similar credit risk characteristics for the purposes of measuring
+ECL
+Parameters for measuring ECL
+Criteria for significant increase in credit risk and default definition
+Definition of credit-impaired financial asset
+Forward-looking information
+Estimation of future cash flows for Stage III wholesale credit assets
+The Group assesses ECL in light of forward-looking information and uses models and assumptions in
+calculating the expected credit losses. These models and assumptions relate to the future macroeconomic
+conditions and the borrowers' creditworthiness (e.g., the likelihood of default by customers and the
+corresponding losses). In assessing the expected credit risks in accordance with accounting standards, the
+Group uses the judgments, assumptions and estimates where appropriate, including:
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+44 FINANCIAL RISK MANAGEMENT
+Overview
+The Group's primary risk management objective is to maintain risk within acceptable parameters to meet
+the requirements of regulators, depositors and other stakeholders, as well as to maximize return for
+investors within an acceptable level of risk.
+The Group has designed risk management policies, which address, among other things, the establishment
+of risk limits and controls to identify, analyze, monitor and report risks. Relevant and timely information
+used to conduct these risk management activities is provided through information systems maintained
+by the Group and is intended to address the Group's information needs in this area. The Group regularly
+reviews its risk management policies and systems to address changes in markets, products and emerging
+best practices.
+The most significant types of risk to which the Group is exposed are credit risk, market risk and liquidity
+risk. Market risk includes foreign exchange rate risk, interest rate risk and other price risk.
+Risk management framework
+The Board of Directors is responsible for establishing the overall risk appetite of the Group and reviewing
+and approving its risk management objectives and strategies.
+Within this framework, the Group's senior management has overall responsibility for managing all aspects
+of risk, including implementing risk management strategies, initiatives and credit policies and approving
+internal rules, measures and procedures related to risk management. The Risk Management Department of
+the Group implements procedures for managing the significant risks to which the Group is exposed.
+44.1 Credit risk
+Credit risk management
+Credit risk represents the potential loss that may arise from a customer or counterparty's failure to
+meet its obligations when due. Credit risk can also arise from operational failures that result in an
+unauthorized or inappropriate advance, commitment or investment. The Group's major credit risks
+arise from loans and advances, treasury operations and off-balance sheet related credit risk exposures.
+The Group's credit risk management and governance structure comprise the Board of Directors and
+its Risk Management Committee, Senior Management and its Risk Management Committee, Credit
+Approval Committee and Asset Disposal Committee, as well as the Risk Management Department,
+Credit Management Department, Credit Approval Department and related front-office customer
+departments. The Group's credit risk management function operates under a centralized management
+and authorization under a range of specified limits.
+The Group performs standardized credit management procedures, including credit due diligence
+and proposal submission, credit underwriting review, loan disbursement, post-lending monitoring
+and non-performing loan management. The Group enhances its credit risk management by strictly
+complying with its credit management procedures; strengthening customer investigation, credit
+rating, lending approval and post-lending monitoring measures; enhancing risk mitigation effect of
+loans through collateral; accelerating disposal process of non-performing loans and continuously
+upgrading its credit management system.
+Annual Report 2021 315
+316
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+AGRICULTURAL BANK OF CHINA
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+The Group assumes that the credit risk on a financial instrument has not increased significantly since
+initial recognition if the financial instrument is determined to have low credit risk at the reporting
+date. The Group recognizes a financial instrument as having low credit risk if its internal rating is
+consistent with the globally accepted definition for low credit risk (e.g. external "investment grade"
+ratings).
+Definition of credit-impaired financial asset
+The criteria adopted by the Group to determine whether a credit impairment occurs under IFRS 9 is
+consistent with the internal credit risk management objectives for relevant financial instruments, in
+addition to consideration of quantitative and qualitative indicators. In assessing whether a borrower
+has become credit-impaired, the Group mainly considers the following factors:
+318
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+-
+The Group sets quantitative and qualitative criteria to determine whether or not the credit risk of a
+financial instrument has increased significantly since its initial recognition. The criteria include changes
+in the borrower's PD, changes in its credit risk classification and other factors. In particular, when
+the credit risk classification changes from Normal upon initial recognition to Special Mention, there
+has been SICR. When the borrower's PD rises to a certain level, there has been a significant increase
+in credit risk. Criteria to determine significant increase in credit risk varied based on the original PD
+upon initial recognition. If the borrower's original PD is relatively low (for example, lower than 3%),
+there has been a significant increase in credit risk when the credit grade falls at least 6 notches. If the
+criteria to determine significant increase in credit risk moves up or down by one notch, the impact on
+the allowance of expected credit loss on 31 December 2021 is less than 5%. According to IFRS 9, a
+backstop is applied and the financial instrument considered to have experienced a significant increase
+in credit risk if the borrower is more than 30 days past due on its contractual payments.
+Significant financial difficulty of the issuer or the borrower;
+A breach of contract, such as a default or past due event in relation to interest or principal
+payment;
+The lender of the borrower, for economic or contractual reasons relating to the borrower's
+financial difficulty, having granted to the borrower a concession that the lender would not
+otherwise consider;
+It is becoming probable that the borrower will enter bankruptcy or other financial
+reorganisation;
+The disappearance of an active market for that financial asset because of financial difficulties;
+The purchase or origination of a financial asset at a deep discount that reflects the incurred
+credit losses;
+The borrower is overdue for more than 90 days in any principal, advances, interest or investment
+in bonds due to the Group.
+The credit impairment of a financial asset may be caused by the combined effect of multiple events
+rather than any single discrete event.
+―
+Criteria for significant increase in credit risk ("SICR") and default definition (Continued)
+Measurement of ECL (Continued)
+44.1 Credit risk (Continued)
+44.1 Credit risk (Continued)
+Measurement of ECL (Continued)
+Segmentation of portfolio sharing similar credit risk characteristics for the purposes of measuring ECL
+For measurement of ECL, segmentation of portfolio is based on similar credit risk characteristics. The
+Group classified clients into wholesale clients and retail clients based on the nature of debtors. In
+performing the portfolio segmentation of wholesale credit assets, the Group considers the type of
+borrower, industry, loan usage, and security type. When performing the portfolio segmentation for
+retail credit assets, the Group considers loan product type and security type to ensure the reliability of
+its credit risk segmentation.
+Parameters for measuring ECL
+According to whether there is a significant increase in credit risk and whether a financial asset has
+become credit-impaired, the Group recognizes an impairment allowance based on the expected credit
+loss for the next 12 months or the entire lifetime of the financial asset. The relevant parameters of
+ECL measurement include probability of default (PD), loss given default (LGD) and exposure at default
+(EAD). The Group establishes its PD models, LGD models and EAD models based on the internal rating
+based system as currently used for its risk management purpose, in accordance with the requirements
+of IFRS 9, in light of quantitative analysis of historical statistics (such as counterparty ratings,
+guarantee methods and collateral types, repayment methods, etc.) and forward-looking information.
+The parameters are defined as follows:
+PD represents the likelihood of a borrower defaulting on its financial obligation, either over the
+next 12 months ("12m PD"), or over the remaining lifetime ("Lifetime PD") of the obligation;
+EAD is based on the amounts the Group expects to be owed at the time of default, over the
+next 12 months ("12m EAD") or over the remaining lifetime ("Lifetime EAD");
+LGD represents the Group's expectation of the extent of loss on defaulted exposure. It varies
+depending on the type of counterparty, method of recourse and priority, and the availability of
+collateral or other credit support. LGD is expressed as a percentage loss per unit of exposure at
+the time of default.
+Criteria for significant increase in credit risk ("SICR") and default definition
+The Group assesses whether or not the credit risk of the relevant financial instruments has increased
+significantly since the initial recognition at each balance sheet date. For the purpose of staging
+assessment of its financial assets, the Group thoroughly considers various reasonable and supportable
+information that may reflect whether or not there has been a significant change in their credit risk,
+including forward-looking information. Key factors considered include regulatory and operating
+environments, internal and external credit ratings, solvency, viability as a going concern, terms of
+loan contracts, repayment behaviors, among others. Based on the single financial instrument or the
+combination of financial instruments with similar characteristics of credit risk, the Group compares the
+risk of default of financial instruments on the balance sheet date with that on the initial recognition
+date in order to figure out the changes of default risk in the expected lifetime of financial instruments.
+The definition of default refers to the failure to pay the debt as agreed in the contract, or other
+violations of the debt contract and have a significant impact on the normal debt repayment.
+Annual Report 2021 317
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+For debt securities lent to counterparties under securities lending agreements, the counterparties
+are allowed to sell or repledge these securities in the absence of default by the Group, but have an
+obligation to return the securities at the maturity of the contract. The Group has determined that it
+retains substantially all the risks and rewards of these securities and therefore has not derecognized
+them. As at 31 December 2021, there was no debt securities lent to counterparties (31 December 2020:
+RMB17,150 million).
+414,934
+429,841
+743,594
+695,183
+304,238
+264,646
+165,639
+1,617,278
+162,356
+3,169,304
+Loan commitments and financial guarantee contracts represent credit cards and general credit facility limits
+granted to customers. These general credit facilities may be drawn in the form of loans or through the
+issuance of letters of credit, guarantee and letters of guarantee or bank acceptances.
+Credit risk weighted amount for credit commitments
+Credit risk weighted amount for credit commitments represents the counterparty credit risk associated
+with credit commitments and is calculated in accordance with the "Capital Rules for Commercial Banks
+(Provisional)" issued by the CBIRC which was effective 1 January 2013 and is dependent on, among
+other factors, creditworthiness of counterparties and maturity characteristics of each type of contract. As
+at 31 December 2021 and 31 December 2020, credit risk weighted amount for credit commitments was
+measured under the Internal Ratings-Based approach.
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Credit risk weighted amount for credit commitments
+2,088,305
+459,900
+1,409,990
+438,333
+1,961
+2020
+2,507
+Contracted but not provided for
+Loan commitments and financial guarantee contracts
+As at 31 December
+2021
+Loan commitments
+With an original maturity of less than 1 year
+· With an original maturity of 1 year or above
+Subtotal
+Bank acceptances
+Credit card commitments
+Guarantee and letters of guarantee
+Letters of credit
+Total
+2020
+21,567
+207,288
+As at 31 December
+2021
+1,178,909
+2020
+1,240,078
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Commitment on security underwriting
+As at 31 December 2021, the unexpired securities underwriting obligations of the Group amounted to
+RMB140 million (31 December 2020: None).
+Annual Report 2021 313
+314
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+43 TRANSFERRED FINANCIAL ASSETS
+The Group enters into transactions in the normal course of business whereby it transfers recognized
+financial assets to third parties or to structured entities. In some cases these transfers may give rise to full
+or partial derecognition of the financial assets concerned. In other cases where the transferred assets do
+not qualify for derecognition as the Group retains substantially all the risks and rewards of these assets, the
+Group continued to recognize the transferred assets.
+Securitization transactions
+The Group enters into securitization transactions by which it transfers loans to structured entities which
+issue asset-backed securities to investors. The Group assessed, among other factors, whether or not to
+derecognize the transferred assets by evaluating the extent to which it retains the risks and rewards of
+the assets and whether it has relinquished its control over these assets based on the criteria as detailed in
+Note II 8.7 and Note III 6.
+As at 31 December 2021, the total amount of unexpired asset-backed securities included accumulative
+loans transferred by the Group before impairment allowance was RMB102,388 million (31 December 2020:
+RMB69,291 million). RMB6,706 million of this balance (31 December 2020: RMB14,130 million) was in
+respect of non-performing loans and the Group concluded that these loans transferred were qualified for
+full derecognition. The remaining balance of RMB95,682 million (31 December 2020: RMB55,161 million)
+was in respect of performing loans and the Group concluded that it had continuing involvement in
+these assets. As at 31 December 2021, the Group continued to recognize assets of RMB9,691 million
+(31 December 2020: RMB6,564 million) under loans and advances to customers. The Group also
+recognized other assets and other liabilities of the same amount arising from such continuing involvement.
+Transfer of non-performing loans
+During the year ended 31 December 2021, the Group transferred non-performing loans through disposal
+to third parties or issuing asset-back securities, with gross loan balance of RMB16,542 million (2020:
+RMB27,837 million). The Group carried out an assessment based on the criteria as detailed in Note II 8.7
+and Note III 6 and concluded that these transferred assets qualified for full derecognition.
+Financial assets sold under repurchase agreements
+The Group did not derecognize financial assets transferred as collateral in connection with repurchase
+agreements. As at 31 December 2021, book value of these collateral pledged disclosed in Note IV 42
+Contingent Liabilities and Commitments Collateral, RMB707 million (31 December 2020: RMB4,050
+million) represented debt securities whereby legal title has been transferred to counterparties.
+Securities lending transactions
+As at 31 December 2021, the nominal value of treasury bonds the Group was obligated to redeem prior to
+maturity was RMB63,405 million (31 December 2020: RMB67,622 million). The original maturities of these
+bonds vary from 3 to 5 years. Management of the Group expects the amount of redemption before the
+maturity dates of these bonds will not be material.
+Capital commitments
+The Group is entrusted by the MOF to underwrite certain treasury bonds. The investors of these treasury
+bonds have a right to redeem the bonds at par at any time prior to maturity and the Group is committed
+to honor such redemption requests. The redemption price is calculated as the par value of the bond plus
+payable interest in accordance with the terms of the related early redemption arrangement.
+Collateral accepted
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+42 CONTINGENT LIABILITIES AND COMMITMENTS (Continued)
+Collateral
+Assets pledged
+At the end of each reporting period, the carrying amounts of assets pledged as collateral under repurchase
+agreements are as follows:
+Debt securities
+Bills
+Total
+As at 31 December
+2021
+33,407
+4,749
+2020
+114,573
+1,327
+38,156
+115,900
+As at 31 December 2021, the financial assets sold under repurchase agreements by the Group (disclosed
+in Note IV 28) amounted to RMB36,033 million (31 December 2020: RMB109,195 million). Repurchase
+agreements are primarily due within 1 years from the effective dates of these agreements.
+Financial assets sold under repurchase agreements included certain transactions under which, title of the
+pledged securities has been transferred to counterparties. These transactions have been disclosed in Note IV
+43 Transferred Financial Assets.
+In addition, debt securities and deposits with banks and other financial institutions pledged in accordance
+with regulatory requirements or as collateral for derivative transactions and borrowings from central banks
+etc. by the Group as at 31 December 2021 amounted to RMB1,095,330 million in total (31 December
+2020: RMB1,026,931 million).
+Redemption commitment for treasury bonds
+| 中国农业银行
+Rescheduled loan is a loan which the contractual terms were renegotiated between the Group
+and borrowers because of deterioration in borrowers' financial position, or the inability to meet
+borrowers' original repayment schedule. Rescheduled loans and advances of the Group as at
+31 December 2021 amounted to RMB18,307 million (31 December 2020: RMB14,546 million).
+During the period ended 31 December 2021, as a result of bankruptcy reorganization and
+equity for debt, the Group recognized ordinary shares upon renegotiation of RMB1,984
+million (31 December 2020: RMB1,649 million). The loss associated with these bankruptcy
+reorganization and equity for debt was not significant.
+A modification or re-negotiation of a contract between the Group and a counterparty may result
+in a change to the contractual cash flows without resulting in the derecognition of the financial
+assets. Such restructuring activities include extended payment term arrangements, repayment
+schedule modifications and changes to the interest settlement method. The risk of default of
+such assets after modification is assessed at the reporting date and compared with the risk under
+the original terms at initial recognition, when the modification is not substantial and so does
+not result in derecognition of the original asset. The gross carrying amount of the financial asset
+is recalculated and the related gain or loss is recognized in profit and loss. The gross carrying
+amount of the financial asset is determined based on the present value of the renegotiated or
+modified contractual cash flows discounted at the financial asset's original effective interest rate.
+The Group monitors the subsequent performance of modified assets. The Group may determine
+that the credit risk has significantly improved after modified, so that the assets are moved from
+Stage 3 or Stage 2 to Stage 1, and the impairment allowance is measured at an amount equal to
+the 12-month ECL instead of the lifetime ECL.
+Unsecured loans
+Total
+3 years
+days to 3 years
+Over
+91-360 361 days
+31-90
+days
+30 days
+5,678
+Up to
+40,886 16,829 184,921
+52,847
+29,719
+44,640
+Total
+2,901 15,232
+4,684
+7,734 111,844
+31 December 2020
+22,740
+4,645
+2,675
+Pledged loans
+118,972
+6,636
+26,513
+33,540
+20,145
+32,138
+collateral
+12,114
+Loans secured by
+2,020
+9,287
+11,336
+2,890
+10,136
+Guaranteed loans
+28,638
+3,526
+35,669
+2,042
+29,563
+4,766
+1,922
+31-90
+days
+30 days
+Up to
+(4) Past due loans (ii)
+9,281,850 15,136,121
+2,010,714
+3,843,557
+Total
+31 December 2021
+91-360 361 days
+days to 3 years
+1,566,832 2,292,233
+623,848
+6,978,616
+5,395,327
+521,244
+1,062,045
+Loans secured by collateral
+Pledged loans
+1,689,444
+640,554
+101,553
+21,419
+959
+Over
+Total
+Pledged loans
+30,388
+collateral
+Loans secured by
+26,446
+1,876
+9,031
+7,569
+3 years
+2,953
+Guaranteed loans
+31,399
+4,318
+4,431
+10,949
+4,388
+7,313
+Unsecured loans
+5,017
+554
+3,803
+5,274
+Personal loans and advances
+Head Office
+47
+Northeastern China
+50
+Yangtze River Delta
+1,705,450
+23.9
+100.0
+1,484,067
+Pearl River Delta
+1,514,233
+21.2
+1,331,142
+21.4
+Bohai Rim
+1,033,741
+14.5
+23.9
+912,175
+8,917,284
+9,999,184
+1,302,925
+14.6
+Western China
+2,297,775
+23.0
+2,088,255
+23.4
+Northeastern China
+100.0
+367,382
+344,039
+3.9
+Overseas and Others
+406,823
+4.1
+393,322
+4.4
+Subtotal
+3.7
+14.7
+Central China
+1,187,096
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+328
+Annual Report 2021 327
+When either loan principal or interest is past due by one day in any period, the whole loan is classified
+as overdue loan.
+44.1 Credit risk (Continued)
+(ii)
+12,663
+43,749
+60,793
+28,234
+49,994
+Total
+12,154
+481
+195,433
+Loans and advances to customers (i) (Continued)
+(5) Credit quality of loans and advances to customers
+Within the credit-impaired loans and advances, the portions covered and not covered by
+collaterals held are as follows:
+16.6
+997,845
+16.0
+Western China
+1,451,317
+20.3
+1,265,565
+237,113
+245,782
+95,621
+2020
+141,492
+2021
+141,243
+104,539
+(6) Modification of contractual cash flows
+Total
+Portion not covered
+Portion covered
+Year ended 31 December
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+428,989
+619,901
+Guaranteed loans
+Total
+4,175,828
+Real estate
+11.0
+976,377
+10.5
+1,054,517
+heat, gas and water
+Production and supply of power,
+14.1
+876,407
+1,261,700
+1,507,059
+Leasing and commercial services
+16.3
+1,450,816
+17.0
+1,694,879
+Manufacturing
+21.5
+15.1
+1,915,191
+8.8
+8.9
+Mining
+222,858
+3.0
+303,347
+Construction
+556,342
+4.5
+446,486
+798,017
+Finance
+5.7
+574,187
+Retail and wholesale
+621,772
+7.2
+719,530
+public utilities management
+Water, environment and
+469,831
+21.5
+2,145,617
+postal services
+15,136,121
+17,135,752
+to customers
+Gross loans and advances
+100.0
+6,218,837
+100.0
+7,136,568
+(i)
+Subtotal
+20,094
+0.3
+19,356
+Overseas and Others
+3.3
+207,899
+3.2
+225,328
+0.3
+The below information does not include accrued interests of loans and advances to customers.
+Annual Report 2021 325
+Notes to the Consolidated Financial Statements
+Transportation, logistics and
+Corporate loans and advances
+% of total
+Amount
+% of total
+Amount
+2020
+2021
+As at 31 December
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+326
+(2) The composition of loans and advances to customers by industry is analyzed as follows:
+Loans and advances to customers (i) (Continued)
+44.1 Credit risk (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+203,937
+14.8
+2.0
+473,218
+years
+860,788
+2,307,472
+Unsecured loans
+Over 5
+31 December 2021
+1 to 5
+Less than
+1 year
+(3) The composition of loans and advances to customers by contractual maturity and security type is
+analyzed as follows:
+Loans and advances to customers (i) (Continued)
+years
+1,824,122
+44.1 Credit risk (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+15,136,121
+17,135,752
+to customers
+Gross loans and advances
+100.0
+44 FINANCIAL RISK MANAGEMENT (Continued)
+6,218,837
+Total
+4,992,382
+667,336
+Over 5
+years
+1,679,137
+958,928
+1,537,763
+Unsecured loans
+years
+1 year
+31 December 2020
+1 to 5
+Less than
+Guaranteed loans
+2,032,658 10,461,780 17,135,752
+Total
+587,215 6,096,590 7,963,577
+118,536 1,763,806 2,269,076
+386,734
+1,279,772
+Loans secured by collateral
+Pledged loans
+1,910,717
+777,262
+466,119
+4,641,314
+100.0
+7,136,568
+Subtotal
+5,242,297
+Residential mortgage
+Personal loans and advances
+100.0
+8,917,284
+100.0
+9,999,184
+Subtotal
+73.4
+4.9
+2.5
+6.2
+5.3
+7.0
+7256224
+032530
+206,502
+437,878
+4.7
+2.3
+4,662,632
+75.0
+Personal business
+7.0
+436,478
+8.5
+604,284
+Others
+8.7
+542,563
+8.8
+626,783
+Credit cards
+3.2
+196,859
+2.7
+193,706
+Personal consumption
+6.1
+380,305
+6.6
+469,498
+Others
+1,477,841
+20.4
+14.6
+High
+198,795
+198,795
+Gross carrying amount
+8,439,076
+478,156
+8,917,232
+Allowance for impairment loss
+(269,354)
+(189,331)
+(458,685)
+Net amount
+258,288
+8,169,722
+8,458,547
+Annual Report 2021 321
+322
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+44.1 Credit risk (Continued)
+Maximum exposure to credit risk before taking into account any collateral held or other
+credit enhancements (Continued)
+(i) Maximum exposure to credit risk for loans and advances disclosed in credit risk levels
+(Continued)
+Personal Loans and advances
+288,825
+As at 31 December 2020
+258,288
+8,460,149
+High
+36,264
+36,264
+Gross carrying amount
+7,071,624
+86,045
+7,157,669
+Allowance for impairment loss
+(163,988)
+(29,318)
+(193,306)
+Net amount
+Medium
+6,907,636
+6,964,363
+Corporate loans and advances
+As at 31 December 2020
+Stage II &
+Stage I
+12m ECL
+Stage III
+Total
+Lifetime ECL
+Credit risk grade
+Low
+8,439,076
+21,073
+56,727
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+(ii)
+Stage II &
+Stage III
+Total
+Lifetime ECL
+Credit risk grade
+Low
+6,389,720
+6,389,720
+Medium
+548
+High
+1,281
+548
+1,281
+Stage I
+12m ECL
+Gross carrying amount
+1,829
+6,391,549
+Allowance for impairment loss
+(17,764)
+(1,263)
+(19,027)
+Net amount
+6,371,956
+566
+6,372,522
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+6,389,720
+As at 31 December 2021
+Maximum exposure to credit risk for debt instrument investments at amortized cost disclosed in
+credit risk levels
+The above information on the maximum exposure to credit risk of loans and advances to
+customers does not include loans and advances to customers measured at fair value through
+profit or loss.
+Stage II &
+Stage I
+12m ECL
+Stage III
+Total
+Lifetime ECL
+Credit risk grade
+Low
+6,134,472
+6,134,472
+Medium
+46,047
+46,047
+High
+38,318
+38,318
+Gross carrying amount
+6,134,472
+84,365
+6,218,837
+Allowance for impairment loss
+(128,414)
+(30,910)
+(159,324)
+Net amount
+6,006,058
+53,455
+6,059,513
+49,781
+44 FINANCIAL RISK MANAGEMENT (Continued)
+49,781
+7,071,624
+Balances with central banks
+2,246,796
+Deposits with banks and other financial institutions
+218,500
+2020
+2,360,994
+434,185
+Placements with and loans to banks and
+other financial institutions
+446,944
+546,948
+Derivative financial assets
+21,978
+61,937
+As at 31 December
+2021
+Financial assets held under resale agreements
+Loans and advances to customers
+816,206
+(i)
+16,454,503
+14,552,433
+Financial investments
+Financial assets at fair value through profit or loss
+Debt instrument investments at amortized cost
+Other debt instrument investments at fair value
+through other comprehensive income
+(!!)
+328,769
+6,372,522
+469,308
+5,684,220
+(iii)
+Other financial assets
+1,392,691
+77,881
+837,637
+1,551,439
+Notes
+| 中国农业银行
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+44.1 Credit risk (Continued)
+Measurement of ECL (Continued)
+Forward-looking information
+The assessment of whether or not there has been a significant increase in credit risk and the
+calculation of ECL both involve forward-looking information. Through the analysis of historical data,
+the Group identifies the macroeconomic indicators that affect the credit risk and ECL of various
+portfolio. Macroeconomic indicators include Gross Domestic Product (GDP), Consumer Price Index
+(CPI) and Industrial Added Value, etc.
+The impact of these economic indicators on the PDs and the LGDs varies from one portfolio to
+another. The Group comprehensively considers internal and external data, expert forecasts and
+statistical analysis to determine the correlation between these economic indicators and the PDs
+and LGDs. The Group assesses and forecasts these economic indicators at least on an annual basis,
+calculates the best estimates for the future, and regularly reviews and assesses results.
+As at 31 December 2021, the Group has assessed and forecasted the relevant macroeconomic
+indicators for 2022, of which the forecast value of 2022 GDP growth rate under each scenario is
+as follows: 5.30% under base scenario, 6.36% under upside scenario, and 2.68% under downside
+scenario.
+Based on statistical analysis and expert judgements, the Group determines the weightings of multiple
+scenarios and the corresponding macroeconomic forecast under each scenario. The weighting of base
+scenario is greater than the aggregated weightings of the rest scenarios. At 31 December 2021, the
+weightings of the Group's base, upside and downside scenarios have not changed from 31 December
+2020. The Group uses the weighted 12-month ECL (Stage 1) or weighted lifetime ECL (Stage II and
+Stage III) to measure relevant impairment allowances. These weighted credit losses are calculated by
+multiplying the expected credit loss under each scenario by the assigned scenario weighting.
+A sensitivity analysis is performed on indicators used in forward-looking measurement. When the
+assigned weightings of upside scenario and downside scenario change by 10% and the forecast of
+economic indicators change accordingly, the impact on the allowance of expected credit loss is less
+than 5%.
+AGRICULTURAL BANK OF CHINA
+Estimation of future cash flows for Stage III wholesale credit assets
+Maximum exposure to credit risk before taking into account any collateral held or other
+credit enhancements
+The maximum exposure to credit risk represents the worst case of credit risk exposure at the end of
+each reporting period, without considering any available collateral held or other credit enhancements.
+The credit risk exposure to the Group primarily arises from credit treasury and operations. In
+addition, off-balance sheet items such as loan commitments, credit card commitments, bank
+acceptances, guarantee and letters of guarantee and letters of credit also include credit risks.
+Annual Report 2021 319
+320
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+44.1 Credit risk (Continued)
+Maximum exposure to credit risk before taking into account any collateral held or other
+credit enhancements (Continued)
+A summary of the maximum exposure to credit risk is as follows:
+The Group measures the ECL for stage III wholesale credit assets using DCF method. Under DCF
+method, the loss allowance is calculated based on the estimation of future cash flows. At each
+measurement date, the Group projects the future cash inflows of relevant assets under different
+scenarios to estimate the probability weighted cash flow of each future period. The cash flows are
+discounted and aggregated to get the present value of the assets' future cash flows.
+101,562
+Subtotal
+28,398,221
+203,289
+High
+209,519
+209,519
+Gross carrying amount
+9,588,174
+429,230
+10,017,404
+Allowance for impairment loss
+(336,129)
+(191,135)
+(527,264)
+203,289
+Net amount
+238,095
+9,490,140
+Personal Loans and advances
+As at 31 December 2021
+Stage II &
+Stage I
+12m ECL
+Stage III
+Total
+Lifetime ECL
+Credit risk grade
+Low
+7,071,624
+9,252,045
+Medium
+9,604,596
+16,422
+26,579,232
+Loan commitments and financial guarantee contracts
+(iv)
+2,068,034
+3,133,548
+Total
+30,466,255
+29,712,780
+(i)
+Maximum exposure to credit risk for loans and advances disclosed in credit risk levels
+The Group classified the credit risk levels of financial assets measured by ECL into "Low"
+(credit risk in good condition), "Medium" (increased credit risk), and "High" (credit risk in
+severe condition), based on the quality of assets. The credit risk level is used for the purpose of
+the group's internal credit risk management. "Low" refers to assets with good credit quality.
+There is no sufficient reason to doubt that the assets are not expected to fulfill its contractual
+obligation to repay or if there is any other behaviors breaching the debt contracts that would
+significantly impact the repayment of debt according to contract terms. "Medium" refers
+to assets facing obvious negative factors impacting its repayment capacity, but not yet have
+non-repayment behaviors. "High" refers to non-repayment according to the debt contract
+terms, or other behaviors breaching the debt contracts or having significant impact on the
+repayment of debt according to contract terms.
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+44.1 Credit risk (Continued)
+Maximum exposure to credit risk before taking into account any collateral held or other
+credit enhancements (Continued)
+(i) Maximum exposure to credit risk for loans and advances disclosed in credit risk levels
+(Continued)
+Corporate loans and advances
+As at 31 December 2021
+Stage II &
+Stage I
+12m ECL
+Stage III
+Total
+Lifetime ECL
+Credit risk grade
+Low
+9,588,174
+Medium
+Central China
+44.1 Credit risk (Continued)
+(ii) Maximum exposure to credit risk for debt instrument investments at amortized cost disclosed in
+credit risk levels (Continued)
+Loans and advances to customers (i)
+44.1 Credit risk (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+324
+The Group monitors the market value of collateral periodically and requests for additional
+collateral in accordance with the underlying agreement when necessary.
+Financial assets held under resale agreements transactions are primarily collateralized by
+debt securities and bills.
+Other personal lending and corporate loans and advances are primarily collateralized by
+charges over land and properties or other assets of the borrowers; and
+Mortgage loans to retail customers are generally collateralized by mortgages over
+residential properties;
+The following tables set out the concentration of risk for loans and advances to customers by
+geographical area and industry.
+The main types of collateral obtained are as follows:
+As at 31 December 2021 and 31 December 2020, in its deposits with banks and other financial
+institutions, placements with and loans to banks and other financial institutions, and financial
+assets held under resale agreements, the Group had insignificant balances with "Medium" or
+"High" credit risk grade and classified as Stage II or Stage III assets, and no default had occurred.
+(v)
+(iv) Maximum exposure to credit risk for loan commitments and financial guarantee contracts
+is balance after estimated contingent liabilities. Majority of loan commitments and financial
+guarantee contracts is in Stage I with credit risk grade as "Low".
+Maximum exposure to credit risk before taking into account any collateral held or other
+credit enhancements (Continued)
+44.1 Credit risk (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+Annual Report 2021 323
+(vi) The Group has implemented specific policies and credit enhancement practices to mitigate credit
+risk exposure to an acceptable level. The most typical practice is obtaining guarantee deposits,
+collateral and guarantees. The amount and type of acceptable collateral are determined through
+the assessment of credit risk of borrowers or counterparties. The Group implements guidelines
+on the acceptability of specific classes of collateral and evaluation parameters.
+1,551,439
+1,302,504
+1,427,512
+(1) The composition of loans and advances to customers by geographical area is analyzed as
+follows:
+Maximum exposure to credit risk before taking into account any collateral held or other
+credit enhancements (Continued)
+As at 31 December
+Amount
+2021
+% of total
+2020
+Amount % of total
+Corporate loans and advances
+Head Office
+313,248
+3.1
+14.3
+350,679
+Yangtze River Delta
+2,383,014
+23.8
+1,996,025
+22.4
+Pearl River Delta
+1,325,589
+13.2
+1,139,535
+12.8
+Bohai Rim
+3.9
+6,096
+44 FINANCIAL RISK MANAGEMENT (Continued)
+Gross carrying amount
+1,883
+5,682,337
+(16,104)
+5,700,324
+3,137
+(1,254)
+(14,850)
+5,697,187
+1,073
+2,064
+2,064
+1,073
+5,697,187
+5,697,187
+Lifetime ECL
+Total
+Stage III
+Stage I
+12m ECL
+Stage II &
+As at 31 December 2020
+Net amount
+Allowance for impairment loss
+Gross carrying amount
+High
+1,545,343
+Low
+Credit risk grade
+5,684,220
+(iii) Maximum exposure to credit risk for other debt instrument investments at fair value through
+other comprehensive income disclosed in credit risk levels
+Medium
+As at 31 December 2021
+Credit risk grade
+Medium
+High
+1,545,343
+Low
+Credit risk grade
+Lifetime ECL
+Total
+1,545,343
+6,030
+66
+Stage I
+12m ECL
+As at 31 December 2020
+1,390,789
+Gross carrying amount
+Stage II &
+Stage III
+Medium
+Stage I
+12m ECL
+High
+Stage II &
+Stage III
+Lifetime ECL
+Total
+1,390,789
+6,030
+66
+1,391,188
+1,471
+32
+1,902
+1,392,691
+Low
+399
+1,471
+32
+58,718
+706,909 3,315,201
+3,548,575
+7,749,455
+Other debt instrument and other equity
+investments at fair value through
+other comprehensive income
+119
+Other financial assets
+118,783
+Total non-derivative financial assets
+36,686
+362
+73,474
+3,456
+316,861
+992
+691,188
+55
+435,749
+98
+4,589
+1,558,666
+3,617
+82,733
+1,269
+75,200 330,179
+70,332
+at amortized cost
+23,690,261
+514,405
+1,875,970
+118,102 134,679
+16,303
+1,840
+454,381
+Financial assets held under
+resale agreements
+3,915
+Loans and advances to customers
+66,076
+813,408 20,849
+733,902 981,574
+2,826
+840,998
+3,956,763 5,475,868 12,476,078
+Financial assets at fair value
+through profit or loss
+4,721
+19,856
+12,128
+88,156
+64,095
+196,609
+128,840
+Debt instrument investments
+1,371,592 5,265,069
+75,200 (13,364,868) 976,785 (496,347) 342,997 4,425,825 16,240,402
+16,658,949 2,281,888
+Less than
+On
+31 December 2020
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+The tables below present the undiscounted cash flows of non-derivative financial assets and financial
+liabilities by remaining contractual maturities at the end of each reporting period: (Continued)
+Analysis of the undiscounted contractual cash flows (Continued)
+44.2 Liquidity risk (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+334
+Annual Report 2021 333
+1-3
+3-12
+1-5
+Over
+2,291,658 2,437,275
+12,653
+4,322
+11,869
+116,773
+Cash and balances with central banks
+Non-derivative financial assets
+2,279,849 10,479,843
+Total
+5 years
+years
+months
+months
+1 month
+demand
+Past due
+Undated
+Net position
+(2,039) (26,954,138)
+(418,547)
+(1,651,959)
+(1,105,856) (29,446) (140,548) (146,482) (229,627)
+-
+(761,785)
+(1,597)
+(678,145)
+(49,991) (32,020)
+(106,990) (93,027) (80,847)
+(32)
+repurchase agreements
+Financial assets sold under
+other financial institutions
+Financial liabilities at fair value
+through profit or loss
+other financial institutions
+Placements from banks and
+Borrowings from central banks
+Deposits from banks and
+Non-derivative financial liabilities
+37,433,981
+Due to customers
+9,575,134
+(7,283)
+(293,114)
+(13,695,047) (899,185) (1,867,939) (4,922,072) (5,149,309)
+Total non-derivative financial liabilities
+(2,039) (319,423)
+(1,617,951)
+(22,257,966)
+(19,066)
+(36,080)
+(4,967)
+(1,162)
+(18,848) (6,898)
+(604,386) (1,308,635)
+(84,971) (278,957)
+(187,376) (4,553) (7,854)
+Other financial liabilities
+Debt securities issued
+(12,386,137)
+(15,860)
+(214)
+(15,646)
+(9,172)
+(3,255,950) (4,683,792)
+(740,163) (182,848) (331,012)
+(11,313) (43,000) (63,288)
+3,821
+Other debt instrument and other equity
+other financial institutions
+(5,540) (350,980)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+44.2 Liquidity risk (Continued)
+Derivative cash flows
+Derivatives settled on a net basis
+The tables below present the undiscounted contractual cash flows of the Group's net derivative
+positions based on their remaining contractual maturities:
+Less than
+1-3
+1 month
+Derivatives on a net basis
+650
+months
+512
+31 December 2021
+3-12
+months
+(1,519,684)
+(398,939)
+(63,212)
+(20,691,643)
+(14,692)
+-(4,222)
+(27,820)
+Financial assets sold under
+repurchase agreements
+Due to customers
+(87,891) (6,929) (17,032)
+(516)
+1-5
+(112,368)
+Debt securities issued
+Other financial liabilities
+Total non-derivative financial liabilities
+(13,107,836) (1,094,643) (1,912,517) (4,282,971) (4,371,818) (484,693) (9,762) (25,264,240)
+Net position
+86,388 (12,801,014) 668,430 (467,212) 896,883 4,463,165 14,042,420 2,413,945 9,303,005
+(555,122) (1,261,386) (2,998,626) (3,939,672)
+(113,895) (364,892) (478,222) (163,736)
+(241,177) (1,562) (2,321) (9,368) (27,800)
+(11,922,145)
+(230)
+Over
+5 years
+1 month
+1-3
+months
+31 December 2021
+3-12
+months
+1-5
+years
+Over
+5 years
+Total
+Derivatives settled on a gross basis
+Cash inflow
+Cash outflow
+356,369 441,786 354,719
+(352,649) (439,862) (353,358)
+88,158
+(68,759)
+751 1,241,783
+(1,000) (1,215,628)
+Total
+3,720
+Less than
+The tables below present the undiscounted contractual cash flows of the Group's gross derivative
+positions based on their remaining contractual maturities:
+Derivatives settled on a gross basis
+(3,398)
+Total
+448
+(101)
+1,509
+31 December 2020
+Derivatives on a net basis
+Less than
+1 month
+(18)
+years
+1-3
+months
+(120)
+1-5
+years
+Over
+5 years
+Total
+(39)
+(2,203)
+(1,018)
+3-12
+months
+(100)
+(9,543)
+(13,725)
+82,234
+615,894
+949,240
+3,596,570 4,669,491 11,070,548
+819,828
+20,983,977
+Financial assets at fair value
+through profit or loss
+5
+11,416
+41,369
+62,296
+147,124 134,878 124,902
+126,481
+648,471
+Debt instrument investments
+Loans and advances to customers
+23,928
+33,440
+758,771
+86,976
+17,515 58,080
+263,326
+14,419
+440,316
+Placements with and loans to banks
+and other financial institutions
+at amortized cost
+17
+154,809
+30,258
+1,308
+556,385
+Financial assets held under
+resale agreements
+3,689
+211,242 158,751
+183,457
+443
+63,769
+(30)
+Deposits from banks and
+other financial institutions
+(930,759)
+(81,706) (126,901)
+(57,653) (44,848) (647,586)
+(42,211)
+(790)
+Borrowings from central banks
+(750,907)
+(1,417,207)
+Placements from banks and
+other financial institutions
+Financial liabilities at fair value
+through profit or loss
+(187,271) (105,240)
+(89,826) (3,444)
+(7,850)
+(393,631)
+(235,630)
+Deposits with banks and
+Non-derivative financial liabilities
+1,763,073 1,445,305 5,179,854 8,834,983 14,527,113
+128,789
+595,532 3,187,505 2,887,451
+6,863,489
+investments at fair value through
+other comprehensive income
+Other financial assets
+91,657
+2,423,707 34,567,245
+41,424
+1,220
+442,817
+2,784 1,719,012
+87
+2,784 98,492
+Total non-derivative financial assets
+86,388
+306,822
+49,589 384,091 798,307
+798 1,821
+125
+and other financial institutions
+Market Risk Management for Trading Book
+221,676
+1,801,377 1,200,332 4,415,621
+326,338
+22,689
+Total financial assets
+77,881
+1,397,280
+4,589
+3,571
+377,413
+98
+611,990
+54
+294,752
+959
+72,014
+3,442
+36,490
+309
+67,612
+1,836
+Other financial assets
+6,792,486 11,768,207 2,281,842 28,608,892
+32
+Borrowings from central banks
+(49,889) (31,806)
+(214)
+(15,646)
+(291,105)
+(80,218) (6,394) (4,766)
+(106,957) (92,770)
+Placements from banks and
+other financial institutions
+Financial liabilities at fair value
+through profit or loss
+(1,622,366)
+(139,143) (209,588)
+(28,658) (139,121)
+(1,105,856)
+other financial institutions
+Deposits from banks and
+(747,213)
+(1,616)
+(663,870)
+(32)
+other comprehensive income
+investments at fair value through
+Other debt instrument and other equity
+837,637
+2,800
+810,227 20,738
+661,910 817,875
+3,872
+16,555
+Loans and advances to customers
+resale agreements
+Financial assets held under
+21,978
+3
+3,688
+9,233
+4,770
+4,284
+Derivative financial assets
+446,944
+3,243,507 3,371,483
+8,343,173
+-
+16,454,503
+6,372,522
+2,869,862
+593,026 2,740,193
+111,377
+57,670
+394
+at amortized cost
+(15,860)
+Debt instrument investments
+128,840
+175,922
+11,609 81,376 38,219
+19,554
+4,721
+through profit or loss
+Financial assets at fair value
+460,241
+1,736
+Derivative financial liabilities
+(216)
+12,653
+4,322
+11,869
+116,773
+Cash and balances with central banks
+Undated
+5 years
+years
+months
+months
+1 month
+demand
+Past due
+Over
+1-5
+Total
+2,291,658 2,437,275
+3-12
+Deposits with banks and
+86,976
+9,931
+Derivative financial assets
+546,948
+1,300
+29,328
+155,901 151,016
+209,386
+17
+and other financial institutions
+Placements with and loans to banks
+Placements with and loans to banks
+13,037
+258,811
+57,867
+17,494
+other financial institutions
+1-3
+Less than
+On
+(63,212)
+(1,507,657)
+(294,999)
+(21,907,127)
+(16,089)
+(36,033)
+(18,841) (6,877) (9,156) (1,159)
+(603,855) (1,303,745) (3,209,263) (4,388,038)
+(84,856) (277,220) (723,814) (126,768)
+(4,484) (7,810) (11,122) (42,500)
+(187,376)
+-
+Other financial liabilities
+(12,386,137)
+Due to customers
+Debt securities issued
+repurchase agreements
+Financial assets sold under
+(19,337)
+(2,039) (318,543)
+Total financial liabilities
+(13,695,047) (901,458) (1,863,604) (4,844,229) (4,779,368) (379,496)
+(2,039) (26,465,241)
+31 December 2020
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+332
+The tables below summarize the maturity analysis of financial assets and financial liabilities by
+remaining contractual maturities based on the carrying amount at the end of each reporting period:
+(Continued)
+Analysis of the remaining contractual maturity of financial assets and financial liabilities
+(Continued)
+44.2 Liquidity risk (Continued)
+(3,918) (4,255) (7,643) (3,305)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+Annual Report 2021 331
+2,279,803 2,143,651
+22,689 (13,368,709) 899,919 (663,272) (428,608) 2,013,118 11,388,711
+Net position
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+14,614 34,987
+14,975
+115,957
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+330
+Annual Report 2021 329
+7,765,213
+50
+2,019
+7,763,144
+Total
+28,955
+18
+548
+28,389
+Others
+324,619
+(Amounts in millions of Renminbi, unless otherwise stated)
+324,619
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+44.1 Credit risk (Continued)
+quasi-governments
+- Public sector and
+-- 4,288,607
+4,288,607
+Governments
+Debt securities issued by
+Total
+As at 31 December 2020
+Medium
+High
+Low
+Notes
+Credit grade
+Debt instruments analyzed by credit rating (Continued)
+(2)
+Credit quality of debt instruments (Continued)
+Debt instruments (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+Receivable from the MOF
+94,122
+94,122
+As at 31 December 2021
+Medium
+High
+Governments
+Debt securities issued by
+Credit grade
+The carrying amounts of debt instruments investments at amortized cost and other debt
+instrument investments at fair value through other comprehensive income analyzed by their
+credit rating as at the end of the reporting period are as follows (i):
+The Group adopts a credit rating approach to manage the credit risk of the debt securities
+portfolio held. The Group classified the credit risk levels of financial assets measured by ECL into
+"Low" (credit risk in good condition), "Medium" (increased credit risk), and "High" (credit risk
+in severe condition), based on the quality of assets. The credit risk level is used for the purpose
+of the Group's internal credit risk management. "Low" refers to assets with good credit quality.
+There is no sufficient reason to doubt that the assets are not expected to fulfill its contractual
+obligation to repay or if there is any other behaviors breaching the debt contracts that would
+significantly impact the repayment of debt according to contract terms. "Medium" refers to
+assets facing obvious negative factors impacting its repayment capacity, but not yet have non-
+repayment behaviors. "High" refers to non-repayment according to the debt contract terms, or
+other behaviors breaching the debt contracts and having significant impact on the repayment of
+debt according to contract terms.
+Debt instruments analyzed by credit rating
+(2)
+(1) Analysis of the expected credit loss stages of debt instrument investments at amortized cost
+and other debt instruments at fair value through other comprehensive income were disclosed in
+Notes IV18.2 and 18.3, respectively.
+Credit quality of debt instruments
+Debt instruments
+44.1 Credit risk (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Total
+4,807,834
+1,787,588
+512,471
+Special government bond
+209,624
+32
+253
+209,339
+Corporates
+-
+1,590,893
+1,218
+Financial institutions
+1,787,588
+quasi-governments
+Public sector and
+4,807,834
+Low
+Notes
+511,253
+132,768
+1,590,893
+658,182
+months
+1 month
+demand
+Past due
+Over
+1-5
+31 December 2021
+3-12
+1-3
+Less than
+On
+The tables below summarize the maturity analysis of financial assets and financial liabilities by
+remaining contractual maturities based on the carrying amount at the end of each reporting period:
+Analysis of the remaining contractual maturity of financial assets and financial liabilities
+44.2 Liquidity risk (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+months
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+years
+Undated
+181,508
+and other financial institutions
+Placements with and loans to banks
+218,500
+11,884
+57,200
+41,606
+29,425
+78,385
+other financial institutions
+Deposits with banks and
+Total
+2,144,842 2,321,406
+944
+175,620
+Cash and balances with central banks
+5 years
+Notes to the Consolidated Financial Statements
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+31,500
+Others
+316,656
+316,656
+Receivable from the MOF
+94,125
+94,125
+Special government bond
+252,579
+66
+4,796
+247,717
+Corporates
+660,762
+2,580
+528
+9
+32,037
+Total
+Performing stress testing on a regular basis.
+Maintaining an efficient internal funds transfer mechanism within the Group; and
+Making projections of future cash flows, and evaluating the appropriate liquid asset position;
+Maintaining stability of deposit base;
+Optimizing asset and liability structure;
+The Group's Assets and Liabilities Management Department manages its liquidity risk through:
+Liquidity risk is the risk that an enterprise will encounter difficulty in meeting obligations that are
+settled by delivering cash or another financial asset.
+- Financial institutions
+44.2 Liquidity risk
+The ratings as at 31 December 2021 and 31 December 2020 were internal ratings obtained
+from the Group, financial assets at fair value through profit or loss was not included in the
+credit grade table as at 31 December 2021 and 31 December 2020.
+(ii)
+(i)
+7,235,659
+75
+7,904
+7,227,680
+As at 31 December 2021, the ratings of super short-term commercial papers of the
+Group amounted to RMB3,634 million (31 December 2020: RMB341 million) included in
+corporate bonds above are based on issuer rating for this credit risk analysis.
+2,375
+434,185
+61,937
+336
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+44.2 Liquidity risk (Continued)
+Off-balance sheet items
+The off-balance sheet items primarily include loan commitments, bank acceptances, credit card
+commitments, guarantees and letters of guarantee and letters of credit. The tables below summarize
+the amounts of credit commitments by remaining maturity. Financial guarantees are also included
+below at notional amounts and based on the earliest contractual maturity date.
+Less than
+1 year
+31 December 2021
+1 to 5
+Loan commitments
+85,271
+years
+177,371
+Over
+5 years
+197,258
+Annual Report 2021 335
+Total
+459,900
+(241)
+(4,892)
+1-3
+months
+31 December 2020
+3-12
+months
+1-5
+years
+Over
+5 years
+Total
+Derivatives settled on a gross basis
+Cash inflow
+- Cash outflow
+529,178 530,154 1,540,225
+(527,974) (526,854) (1,545,117)
+51,085
+(50,938)
+2,650,642
+(2,650,883)
+Total
+1,204
+3,300
+147
+Bank acceptances
+414,934
+414,934
+1 year
+Loan commitments
+277,152
+years
+387,315
+30
+Total
+1,617,278
+Bank acceptances
+429,841
+429,841
+Credit card commitments
+695,183
+695,183
+Guarantee and letters of guarantee
+135,533
+1 to 5
+Less than
+31 December 2020
+2,088,305
+Credit card commitments
+743,594
+743,594
+Guarantee and letters of guarantee
+Letters of credit
+153,029
+135,151
+16,058
+Less than
+1 month
+304,238
+2,738
+386
+165,639
+Total
+1,559,343
+315,260
+213,702
+162,515
+Letters of credit
+26,155
+19,399
+1 month
+demand
+Past due
+Over
+1-5
+31 December 2021
+3-12
+1-3
+Less than
+On
+The tables below present the undiscounted cash flows of non-derivative financial assets and financial
+liabilities by remaining contractual maturities at the end of each reporting period:
+Assets available to meet obligations related to the Group's liabilities and outstanding credit
+commitments primarily include cash and balances with central banks, deposits with banks and other
+financial institutions, placements with and loans to banks and other financial institutions, financial
+assets at fair value through profit or loss, and financial assets held under resale agreements. In the
+normal course of business, the majority of customer deposits repayable on demand or on maturity
+are expected to be retained. In addition, the Group is able to sell the other debt instrument and other
+equity investments at fair value through other comprehensive income to repay matured liabilities, if
+necessary.
+Analysis of the undiscounted contractual cash flows
+44.2 Liquidity risk (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+months
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+months
+5 years
+12,424
+57,883
+42,282
+29,581
+79,506
+other financial institutions
+Deposits with banks and
+2,321,406
+2,144,842
+944
+175,620
+Cash and balances with central banks
+Non-derivative financial assets
+Total
+Undated
+years
+Notes to the Consolidated Financial Statements
+2,411,233 1,953,362
+579,070 (627,463) 215,455 2,442,985 9,706,251
+(4,411)
+(8,719) (11,101) (39,995)
+(27,817)
+(4,222)
+(230)
+(100)
+(9,540)
+(13,725)
+(390,660)
+(7,297)
+(2,391)
+(187,137) (104,911) (88,924)
+(1,394,516)
+1,924
+1,361
+(1,056)
+(65,282)
+(84,786) (6,920) (16,977)
+(512)
+26,848 (12,801,017)
+Net position
+(9,762) (24,819,843)
+(13,107,839) (1,099,066) (1,913,045) (4,239,689) (4,013,845) (436,597)
+Total financial liabilities
+(350,466)
+(5,540)
+(249)
+(63,012)
+(113,725) (360,635) (456,191) (88,196) (353,098)
+(241,413) (1,562) (2,318) (9,317) (27,304)
+Other financial liabilities
+(20,372,901)
+(12,134)
+(554,505) (1,256,439) (2,955,410) (3,672,501)
+(11,921,912)
+(109,195)
+(1,371,845)
+157,942
+Over
+5 years
+952,811
+10,493
+Debt securities issued
+repurchase agreements
+Financial assets sold under
+other financial institutions
+Placements from banks and
+other financial institutions
+Financial liabilities at fair value
+through profit or loss
+Derivative financial liabilities
+Due to customers
+Deposits from banks and
+(737,161)
+(801)
+(634,135)
+(30) (57,653) (44,542)
+Borrowings from central banks
+2,420,995 26,773,205
+6,456,830 10,142,848
+4,455,144
+1,678,136 1,285,582
+(930,759) (81,439) (126,179)
+306,822
+(38,640) (217,499)
+Market Risk Management for Banking Book
+165
+213
+28
+Commodity risk
+62
+75
+120
+9
+Overall VaR
+87
+118,620
+4,414
+362
+87
+The Bank calculates VaR for its trading book (excluding RMB foreign currency settlement contracts
+with customers under relevant regulations). The Bank conducts stress testing for its trading book
+quarterly. The specific areas subject to this testing include the major areas of exposure, such as bonds,
+interest rate derivatives, foreign exchange derivatives and precious metal. The stress testing uses a
+range of scenarios, to assess the potential impact on profit and loss.
+(1) VaR related to gold is recognized as a component of foreign exchange rate risk.
+The Group manages market risk related to the banking book by consistently applying techniques
+across the Group that include exposure limit management, stress testing, scenario analysis and gap
+analysis.
+26,848
+Total financial assets
+3,931 1,555,370
+2,784 101,562
+11,416
+5
+through profit or loss
+Financial assets at fair value
+14,552,433
+812,515 3,009,584 2,858,842 7,307,436
+543,994
+20,062
+Loans and advances to customers
+816,206
+33,315 23,764
+755,438
+3,689
+resale agreements
+Financial assets held under
+40,928
+61,053
+138,374 107,775 100,896
+122,622
+390,876
+87
+44,870 352,924 723,392
+798 1,821
+125
+39,377
+1,220
+91,657
+3,070
+Other financial assets
+other comprehensive income
+28
+investments at fair value through
+5,684,220
+100,327 471,210 2,721,956 2,342,223
+48,499
+5
+at amortized cost
+Debt instrument investments
+583,069
+Other debt instrument and other equity
+(1)
+232
+164
+Segregation of Trading Book and Banking Book
+To enhance the effectiveness of market risk management, as well as the accuracy of determining the
+levels of regulatory capital required related to market risk, the Group segregates assets and liabilities,
+both on-and off-balance sheet, into either the trading book or banking book. The trading book is
+comprised of financial instruments and commodity positions held for trading or risk hedging. Any
+other positions are included in the banking book.
+The Group manages market risk in the trading book through methodologies that include Value at
+Risk (VaR), monitoring and management of established limits, sensitivity analysis, duration analysis,
+exposure analysis and stress testing.
+Based on changes in the external market and business operations, the Group formulates annual
+treasury trading, investment business and market risk management policies, and further clarifies
+the basic policies to be followed for bond trading and derivatives trading, as well as risk control
+requirements such as exposure and duration. The limit indicator system with VaR as the core, and the
+market risk management system is used to realize the measurement and monitoring of market risk in
+the trading book.
+52
+Annual Report 2021 337
+338
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+44.3 Market risk (Continued)
+Market Risk Management for Trading Book (Continued)
+VaR Analysis for the Trading Book
+The Group has determined that the levels of market risk related to changes in equity prices and
+commodity prices other than gold, with respect to the related exposures in its trading and investment
+portfolios, are immaterial.
+| 中国农业银行
+The Group is also exposed to commodity risk, primarily related to gold and other precious metals. The
+risk of loss results from movements in commodity price. The Group manages the risk related to gold
+price together with foreign exchange rate risk.
+44 FINANCIAL RISK MANAGEMENT (Continued)
+264,646
+162,356
+Total
+1,695,651
+510,349
+963,304
+3,169,304
+44.3 Market risk
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Market risk represents the potential loss arising from changes in market rates of interest and
+foreign exchange, as well as commodity and equity prices. Market risk arises from both the Group's
+proprietary positions and customer driven transactions, in both cases related to on-and off-balance
+sheet activities.
+The Group is primarily exposed to interest rate risk through corporate, personal banking and treasury
+operations. Interest rate risk is inherent in many of the Group's businesses and this situation is
+common among large banks. It fundamentally arises through mismatches between the maturity and
+re-pricing dates of interest-earning assets and interest-bearing liabilities.
+Foreign exchange rate risk is the potential loss related to changes in foreign exchange rates affecting
+the translation of foreign currency denominated monetary assets and liabilities. The risk of loss results
+from movements in foreign currency exchange rates.
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+44.3 Market risk (Continued)
+AGRICULTURAL BANK OF CHINA
+The Bank has adopted an historical simulation method, with a confidence level of 99% based on
+holding period of 1 day and historical data for 250 days to calculate the VaR of the trading book,
+which includes the Head Office, domestic branches and overseas branches. Based on the differences
+between domestic and overseas markets, the Bank selected applicable parameters for model and risk
+factors in order to reflect the actual market risk levels. The Bank verified the accuracy and reliability
+of market risk measurements through data analysis, parallel modeling and back-testing of the market
+risk measurements.
+Interest rate risk
+Exchange rate risk
+83
+136
+21
+150
+210
+307
+87
+2020
+At the end
+of the year
+Bank
+Maximum
+Minimum
+Interest rate risk
+Exchange rate risk
+59
+88
+44
+35
+Average
+190
+289
+Commodity risk
+Overall VaR
+2021
+At the end
+Note
+of the year
+53
+Average
+Bank
+Minimum
+67
+99
+36
+(1)
+Maximum
+149
+(4) The Group's Additional Tier-one Capital includes: preference shares issued and non-controlling
+interests (to the extent permitted in the Additional Tier-one Capital definition under the Regulation).
+The Group's Deductible Items from Common Equity Tier-one Capital include: other intangible assets
+(excluding land-use rights), and Common Equity Tier-one Capital investments made in financial
+institutions over which the Group has control but are outside the regulatory consolidation scope for
+the Capital Adequacy Ratios calculation.
+(3)
+(2) The Group's Common Equity Tier-one Capital includes: ordinary share capital, capital reserve (subject
+to regulatory limitations), investment revaluation reserve, surplus reserve, general reserve, retained
+earnings, non-controlling interests (to the extent permitted in the Common Equity Tier-one Capital
+under the Regulation), and the foreign currency translation reserve.
+45 CAPITAL MANAGEMENT (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+Annual Report 2021 347
+(5) The Group's Tier-two Capital includes: Tier-two capital instruments and related premium (to the
+extent allowed under the Regulation), excessive allowance for loan losses, and minority interests (to
+the extent permitted in the Tier-two Capital definition under the Regulation).
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(6) Risk-weighted Assets include Credit Risk-weighted Assets, Market Risk-weighted Assets and
+Operational Risk-weighted Assets.
+The board of directors shall be responsible for establishing and improving the internal control system
+related to the valuation of financial instruments and approving valuation policies.
+The majority of the Group's assets and liabilities in the consolidated statement of financial position are
+financial assets and financial liabilities. Fair value measurement of non-financial assets and non-financial
+liabilities do not have a material impact on the Group's financial position and operations, taken as a whole.
+The Group does not have any financial assets or financial liabilities subject to non-recurring fair value
+measurements for the years ended 31 December 2021 and 31 December 2020.
+46.1 Valuation technique, input and process
+The fair value of the Group's financial assets and financial liabilities are determined as follows:
+If traded in active markets, fair values of financial assets and financial liabilities with standard
+terms and conditions are determined with reference to quoted market bid prices and ask prices,
+respectively;
+If not traded in active markets, fair values of financial assets and financial liabilities are
+determined by using valuation techniques. These valuation techniques include the use of recent
+transaction prices of the same or similar instruments, discounted cash flow analysis and generally
+accepted pricing models.
+The Group has established an independent valuation process for financial assets and financial
+liabilities. The Financial Accounting Department of head office establishes the valuation models for
+financial assets and financial liabilities of head office and its branches in China and independently
+implements the valuation on a regular basis; and the Risk Management Department is responsible for
+validating the valuation model, the Operations Departments records the accounting for these items.
+Overseas branches and sub-branches designate departments or personnel that are independent from
+the front trading office to perform valuation in accordance with the local regulatory requirements and
+their own department settings.
+For the year ended 31 December 2021 and 31 December 2020, there was no significant changes in
+the valuation techniques or inputs used to determine fair value measurements.
+348
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+The Common Equity Tier-one Capital Adequacy Ratio is calculated as Net Common Equity Tier-one
+Capital divided by Risk-weighted Assets. The Tier-one Capital Adequacy Ratio is calculated as Net Tier-
+one Capital divided by Risk-weighted Assets. The Capital Adequacy Ratio is calculated as Net Capital
+divided by Risk-weighted Assets.
+46 FAIR VALUE OF FINANCIAL INSTRUMENTS
+(1) The scope of consolidation related to the calculation of the Group's Capital Adequacy Ratios includes
+Domestic Institutions, Overseas Institutions and affiliated financial subsidiaries specified in the
+Regulation.
+16,130
+16,989,668
+36,990
+2,518
+206,292
+1,309,570
+other comprehensive income
+investments at fair value through
+Other debt instrument and other equity
+5,684,220
+1,555,370
+3,780
+58,301
+5,617,868
+amortized cost
+Debt instrument investments at
+583,069
+12,981
+6,856
+11,165
+4,271
+552,067
+Other financial assets
+10,622
+Placements from banks and
+(10,888) (1,394,516)
+(20,775)
+(26,379)
+(1,336,474)
+other financial institutions
+Deposits from banks and
+(1,261) (737,161)
+84,200
+(735,900)
+196,637 26,773,205
+111,919
+928,918
+25,535,731
+Total financial assets
+101,562
+3,325
+3,415
+Borrowings from central banks
+profit or loss
+Financial assets at fair value through
+14,552,433
+17,257
+2,393
+50,938
+363,597
+other financial institutions
+Deposits with banks and
+Total
+2,437,275
+16,219
+434,185
+1,296
+2,365,609
+Cash and balances with central banks
+equivalent)
+equivalent)
+equivalent)
+RMB
+Other
+currencies
+(RMB
+HKD
+(RMB
+54,151
+Placements with and loans to banks and
+other financial institutions
+293,880
+73,017
+52,231
+351,117
+14,076,068
+Loans and advances to customers
+816,206
+816,206
+under resale agreements
+Financial assets held
+61,937
+4,142
+45
+1,084
+56,666
+Derivative financial assets
+546,948
+28,926
+38,894
+185,248
+other financial institutions
+(136,469)
+(200,492)
+(32,327)
+Foreign exchange rate risk (Continued)
+44.3 Market risk (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+342
+The table below indicates the potential effect on profit before tax and other comprehensive income
+arising from a 5% appreciation or depreciation of RMB spot and forward foreign exchange rates
+against a basket of all other currencies on the net positions of foreign currency monetary assets and
+liabilities and derivative instruments in the consolidated statement of financial position.
+Annual Report 2021 341
+7,914
+236,335
+2,893,041
+Loan commitments and financial
+guarantee contracts
+161,022
+(30,638)
+19,124
+34,139
+32,014 3,169,304
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+RMB
+Implement limit management to control the impact of interest rate changes on the economic
+value and overall income of bank books within the limits.
+Strengthen strategy transmission and optimize the repricing term structure of interest-earning
+assets and interest-bearing liabilities;
+Strengthen the pre-judgment of the situation and analyze the macroeconomic factors that may
+affect the LPR interest rate, the benchmark deposit interest rate and the market interest rate;
+-
+The Group manages its interest rate risk by:
+The Group's interest rate risk arises from the mismatches between contractual maturities or re-
+pricing dates of interest-generating assets and interest-bearing liabilities, as well as the inconsistent
+variations in the benchmark interest rate on which the assets and liabilities are based. The Group's
+interest-generating assets and interest-bearing liabilities are primarily denominated in RMB. The PBOC
+stipulated the benchmark interest rate for RMB deposits. The deposit interest rate floating ceiling was
+removed by the PBOC with effect from 24 December 2015 for commercial banks. Since 16 August
+2019, the PBOC established RMB Loan Prime Rate to replace RMB benchmark interest rates for loan
+as a pricing benchmark of new loan whereby financial institutions are in a position to price their loans
+based on credit risk, commercial and market factors.
+Interest rate risk
+The effect on profit before tax and other comprehensive income is calculated based on the
+assumption that the Group's foreign currency sensitive exposures and foreign currency derivative
+instruments net position at the end of each reporting period remain unchanged. The Group mitigates
+its foreign exchange rate risk through active management of its foreign currency exposures and
+the appropriate use of derivative instruments, based on management expectation of future foreign
+currency exchange rate movements. Such analysis does not take into account the correlation effect of
+changes in different foreign currencies, nor any further actions that could be taken by management to
+mitigate the effect of foreign exchange differences. Therefore, the sensitivity analysis above may differ
+from actual results occurring through changes in foreign exchange rates.
+(2,433)
+2,433
+462
+(462)
+income
+Other
+comprehensive
+Profit
+before tax
+Profit comprehensive
+before tax
+income
+(3,317)
+186
+3,317
+(186)
+Other
+31 December 2020
+31 December 2021
+5% appreciation
+5% depreciation
+138,397
+(RMB
+Net notional amount of derivatives
+(3,607)
+(109,195)
+(7,191)
+(18,995)
+(83,009)
+under repurchase agreements
+Financial assets sold
+(65,282)
+(390)
+Due to customers
+(257)
+(4,367)
+Derivative financial liabilities
+(27,817)
+(27,817)
+profit or loss
+Financial liabilities at fair value through
+(390,660)
+(21,372)
+(60,268)
+(19,873,361)
+(430,007)
+(33,570)
+(55,661)
+1,962,274
+Net on-balance sheet position
+(146,281) (24,819,843)
+(115,526)
+(984,579)
+(23,573,457)
+Total financial liabilities
+(5,049) (350,466)
+(2,399)
+(32,108)
+(310,910)
+Other financial liabilities
+(64,167) (1,371,845)
+(26,198)
+(216,330)
+(1,065,150)
+Debt securities issued
+(35,963) (20,372,901)
+50,356 1,953,362
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+USD
+The composition of all financial assets and liabilities at the end of each reporting period analyzed by
+currency is as follows: (Continued)
+945
+1,805
+1,175
+18,053
+Derivative financial assets
+446,944
+32,173
+43,509
+21,978
+218,378
+and other financial institutions
+Placements with and loans to banks
+218,500
+17,706
+2,561
+49,451
+148,782
+other financial institutions
+152,884
+Deposits with banks and
+Financial assets held
+837,637
+9,991
+49,929
+6,307,943
+amortized cost
+Debt instrument investments at
+460,241
+1,651
+677
+under resale agreements
+10,933
+profit or loss
+Financial assets at fair value through
+837,637
+16,454,503
+65,011
+60,014
+344,323
+15,985,155
+Loans and advances to customers
+446,980
+2,321,406
+18,016
+1,142
+The Group primarily conducts its business activities in RMB, with certain transactions denominated in
+USD, HKD and, to a lesser extent, other currencies.
+Foreign exchange rate risk
+committed to continuous improvement of its market risk exposure limit management.
+The Group establishes exposure limits reflecting its risk appetite and continuously refines the
+categorization of market risk exposure limits. Further, it regularly monitors, reports, refines, and
+implements improvements to the market risk exposure limit process.
+The Group
+Market risk exposure limits are classified as either directive limits or indicative limits, based on the type
+of effectiveness, including position limits, stop-loss limits, VaR limits, and stress testing limits.
+Market Risk Exposure Limit Management
+The Group performs monitoring and sensitivity analysis of foreign exchange rate risk exposure,
+manages the mismatch of foreign currency denominated assets and liabilities to effectively manage
+foreign exchange rate risk exposure within acceptable limits.
+Foreign exchange rate risk relates to the mismatch of foreign currency denominated monetary assets
+and liabilities, and the potential loss related to changes in foreign exchange rates, which largely arises
+through operational activities.
+Annual Report 2021 339
+Foreign Exchange Rate Risk Management
+Interest rate risk refers to the risk that the adverse changes in interest rate levels and maturity
+structures will cause the Bank's book value to suffer losses. The Bank's book interest rate risk mainly
+comes from the mismatch of maturity or repricing periods of interest-sensitive assets and liabilities
+in the Bank's book and the inconsistent changes in the benchmark interest rate on which assets and
+liabilities are based.
+Interest Rate Risk Management
+Market Risk Management for Banking Book (Continued)
+44.3 Market risk (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+Notes to the Consolidated Financial Statements
+Since the People's Bank of China's LPR reform, the Bank has implemented relevant policies in
+accordance with regulatory requirements, promoted business system transformation, modified system
+loan contracts, improved internal and external interest rate pricing mechanisms, strengthened staff
+training for branches, comprehensively promoted LPR applications, and basically realized the entire
+system. The entire process of loan pricing applies LPR pricing. After the People's Bank of China
+reforms LPR, the connection between the benchmark interest rate on loans and the market interest
+rate will be closer, and the frequency and amplitude of volatility will increase relatively. To this end,
+the Bank strengthened the monitoring and prejudgment of the external interest rate environment,
+adjusted internal and external pricing strategies in a timely manner, optimized the asset and liability
+product structure and maturity structure, and proactively adjusted the risk structure to reduce the
+economic value and overall impact of interest rate changes. The adverse impact of earnings. During
+the reporting period, the Bank's interest rate risk level was generally stable, and all quota indicators
+were controlled within the scope of regulatory requirements and management objectives.
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+61,233
+2,241,015
+Cash and balances with central banks
+Total
+Other
+currencies
+(RMB
+equivalent)
+equivalent)
+equivalent)
+RMB
+HKD
+(RMB
+USD
+(RMB
+31 December 2021
+AGRICULTURAL BANK OF CHINA
+|中国农业银行
+340
+The composition of all financial assets and liabilities at the end of each reporting period analyzed by
+currency is as follows:
+Foreign exchange rate risk (Continued)
+44.3 Market risk (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+4,659
+6,372,522
+Other debt instrument and other equity
+investments at fair value through
+(2,305) (318,543)
+(65,713) (1,507,657)
+(36,114)
+(1,508)
+(42,114) (21,907,127)
+(459,099) (32,650)
+(229,994)
+(19,984)
+(294,746)
+(25,280,153)
+Total financial liabilities
+Other financial liabilities
+(917,179) (124,155)
+(1,175,836)
+(21,373,264)
+Due to customers
+(36,033)
+(5,781)
+(9,950)
+(20,302)
+under repurchase agreements
+Financial assets sold
+Debt securities issued
+(143,754) (26,465,241)
+Net on-balance sheet position
+2,078,587
+Foreign exchange rate risk (Continued)
+44.3 Market risk (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+33,102 2,088,305
+10,216
+245,491
+1,799,496
+Loan commitments and financial
+guarantee contracts
+151,318
+(35,288)
+23,045
+8,789
+154,772
+Net notional amount of derivatives
+42,948 2,143,651
+828
+21,288
+(19,337)
+31 December 2020
+(486)
+(2,290)
+28,608,892
+186,702
+124,983
+938,467
+27,358,740
+Total financial assets
+77,881
+780
+Borrowings from central banks
+2,528
+69,258
+Other financial assets
+1,397,280
+45,761
+2,756
+197,730
+1,151,033
+other comprehensive income
+5,315
+(745,597)
+(1,616)
+(747,213)
+(14,397)
+Derivative financial liabilities
+(15,860)
+(15,860)
+profit or loss
+Financial liabilities at fair value through
+(291,105)
+(18,657)
+(26,842)
+(178,291)
+(67,315)
+other financial institutions
+Placements from banks and
+(7,082) (1,622,366)
+(24,877)
+(17,571)
+(1,572,836)
+other financial institutions
+Deposits from banks and
+(2,164)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Pursuant to the "Capital Rules for Commercial Banks (Provisional)":
+44.3 Market risk (Continued)
+Total financial liabilities
+(350,466) (350,466)
+Other financial liabilities
+(9,312) (1,371,845)
+(344,953)
+(26) (109,195)
+(313,749) (20,372,901)
+(12,129)
+(2,875,560) (3,555,434)
+(137,270) (373,181) (444,048) (63,081)
+(13,883,932) (1,873,949) (4,090,452) (3,833,182)
+(512)
+(84,777) (6,914)
+(12,399,566) (1,216,463)
+Debt securities issued
+Due to customers
+under repurchase agreements
+(17,955) (27,817)
+(65,282) (65,282)
+(230)
+(100)
+(9,532)
+(16,966)
+Financial assets sold
+(358,281)
+Interest rate gap
+interest
+comprehensive
+31 December 2020
+Net
+Other
+31 December 2021
+Net
+interest
+- 100 basis points
++100 basis points
+The sensitivity analysis on other comprehensive income reflects only the effect of changes in fair value
+of those financial instruments classified as other debt instrument and other equity investments at fair
+value through other comprehensive held, whose fair value changes are recorded as an element of
+other comprehensive income.
+(780,047) (24,819,843)
+The sensitivity analysis on net interest income is based on reasonably possible changes in interest rates
+with the assumption that the structure of financial assets and financial liabilities held at the period end
+remains unchanged, and does not take changes in customer behavior, basis risk or any prepayment
+options on debt securities into consideration.
+Interest rate risk (Continued)
+44.3 Market risk (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+(35,419) 1,953,362
+2,914,986
+(6,360,968) 818,643 4,421,541 194,579
+The following table illustrates the potential pre-tax impact, of a parallel upward or downward shift
+of 100 basis points in relevant interest rate curves on the Group's net Interest Income and other
+comprehensive income for the next twelve months from the reporting date, based on the Group's
+positions of interest-earning assets and interest-bearing liabilities at the end of each reporting period.
+This analysis assumes that interest rates of all maturities move by the same amount, and does not
+reflect the potential impact of unparalleled yield curve movements.
+Derivative financial liabilities
+profit or loss
+(992) (390,660)
+Other debt instrument and other equity
+110,212 5,684,220
+463,453 2,617,463 2,310,470
+63,386 119,236
+amortized cost
+Debt instrument investments at
+139,165 583,069
+93,128
+investments at fair value through
+100,054
+40,569 68,013
+profit or loss
+Financial assets at fair value through
+34,321 14,552,433
+489,037
+619,431
+7,121,297
+4,117,253 2,171,094
+142,140
+other comprehensive income
+78,608 83,737
+343,781
+(1,199)
+(90,775)
+(187,801) (109,893)
+(15,220) (1,394,516)
+(33,266) (213,122)
+(7,045) (737,161)
+(803)
+(629,737)
+(55,900) (43,676)
+(1,009,086) (123,822)
+other financial institutions
+Placements from banks and other
+financial institutions
+Financial liabilities at fair value through
+Deposits from banks and
+Borrowings from central banks
+744,628 26,773,205
+7,522,964 2,692,592 8,511,993 4,027,761 3,273,267
+Total financial assets
+101,562 101,562
+Other financial assets
+19,666 1,555,370
+648,946 380,632
+income
+income
+income
+(39,264)
+(3)
+Tier-one Capital
+Deductible Items from Common Equity
+1,884,392
+2,053,737
+(2)
+Common Equity Tier-one Capital
+16.59%
+(11,257)
+17.13%
+Capital Adequacy Ratio
+12.92%
+13.46%
+(1)
+11.04%
+11.44%
+(1)
+Common Equity Tier-one Capital Adequacy Ratio
+Tier-one Capital Adequacy Ratio
+(1)
+(9,020)
+Net Common Equity Tier-one Capital
+2,042,480
+44 FINANCIAL RISK MANAGEMENT (Continued)
+17,849,566
+(6)
+2,817,924
+3,057,867
+Risk-weighted Assets
+Net Capital
+622,668
+655,506
+(5)
+Tier-two Capital
+2,195,256
+2,402,361
+Net Tier-one Capital
+319,884
+359,881
+(4)
+Additional Tier-one Capital
+1,875,372
+2020
+Loans and advances to customers
+2021
+31 December
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+For the year ended 31 December 2021
+Notes to the Consolidated Financial Statements
+346
+Annual Report 2021 345
+According to the regulatory requirements of CBIRC, the Group managed country risk through tools
+and approaches such as country risk rating, limit approval, exposure analysis and stress testing. In
+the meanwhile, we fully considered the impact of country risk on asset quality, accurately identified,
+reasonably assessed and prudently estimated the asset loss that may be caused by country risk.
+Corresponding provisions were also made for country risk impairment.
+44.5 Insurance risk
+Country risk represents the risk due to changes and incidents occurred in the economy, politics and
+society of a specific country or region, which results in the borrowers or debtors in that country or
+region incapable of or unwilling to pay their debts owed to the Bank or otherwise leads to business
+losses or other losses to the Bank in that country or region.
+In addition, the presentation of interest rate sensitivity above is for illustration purposes only, showing
+the potential impact on net interest income and other comprehensive income of the Group under
+different parallel yield curve movements, relative to their position at period-end, excluding the
+derivative positions.
+The assumptions do not reflect actions that might be taken under the Group's capital and interest
+rate risk management policy to mitigate changes to the Group's interest rate risk. Therefore the above
+analysis may differ from the actual situation.
+67,941
+37,556
+39,264
+37,792
+Other
+comprehensive
+income
+(67,941)
+(37,556)
+44.4 Country Risk
+The Group engages in its insurance business primarily in Chinese mainland. Insurance risk refers
+to the financial impact resulting from the unexpected occurrence of insured events. These risks
+are actively managed by the Group through effective sales management, underwriting control,
+reinsurance management and claim management. Through effective sales management, the risk of
+mis-selling could be reduced and the accuracy of information used for underwriting is improved.
+Through underwriting control, risk of adverse selection could be reduced and moreover differential
+pricing policy based on the level of each kind of risk could be utilized. Through reinsurance, the
+Group's insurance capacity could be enhanced and targeted risks could be mitigated. Effective claims
+management is designed to ensure that insurance payments are controlled according to established
+criteria.
+Uncertainty in the estimation of future benefit payments and premium receipts for long-term life
+insurance contracts arises from the unpredictability of long-term changes in overall levels of mortality.
+The Group conducts experience analysis of mortality rate and surrender rate, in order to improve its
+risk assessment and as a basis for reasonable estimates.
+45 CAPITAL MANAGEMENT
+31 December
+The Group's capital adequacy ratio calculated in accordance with the "Capital Rules for Commercial Banks
+(Provisional)" issued by the CBIRC as at the end of the reporting period is as follows:
+Capital adequacy and the utilization of regulatory capital are closely monitored by the Group's
+management in accordance with the guidelines developed by the Basel Committee and relevant regulations
+promulgated by the CBIRC. Required information related to capital levels and utilization is filed quarterly
+with the CBIRC.
+In January 2017, the CBIRC has officially approved the Group to adopt the Internal Models approach to
+measure its Market Risk-weighted Assets for qualified risk exposures.
+In April 2014, the CBIRC officially approved the Group to adopt advanced capital management approach.
+Within the scope of the approval, the Internal Ratings-Based approach is adopted to Credit Risk-weighted
+Assets for both retail and non-retail risk exposures, and the Standardized approach for both Operational
+Risk-weighted Assets and Market Risk-weighted Assets. The CBIRC will determine the parallel run period
+for the Group, which should last for at least three years. During the parallel run period, the Group should
+calculate its Capital Adequacy Ratios under the advanced approach and the non-advanced approach, and
+should conform to the capital floor requirements as stipulated in the "Capital Rules for Commercial Banks
+(Provisional)".
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+45 CAPITAL MANAGEMENT (Continued)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+should the regulators require countercyclical buffer under particular circumstances or regulators
+impose additional Pillar II capital requirements for specific banks, these requirements shall be met
+within the specified time limits.
+additional capital surcharge for systemically important banks requires additional 1% of Common
+Equity Tier-one Capital Adequacy Ratio;
+capital conservation buffer requires additional 2.5% of Common Equity Tier-one Capital Adequacy
+Ratio;
+minimum regulatory requirements for Common Equity Tier-one Capital Adequacy Ratio, Tier-one
+Capital Adequacy Ratio and Capital Adequacy Ratio are 5%, 6% and 8%, respectively;
+The "Capital Rules for Commercial Banks (Provisional)" issued by the CBIRC in 2012 includes, among other
+things, requirements for minimum capital, capital conservation buffer, additional capital surcharge for
+systemically important banks, countercyclical buffer and Pillar II capital as follows:
+safeguard the long-term sustainability of the Group's franchise so that it can continue to provide
+sufficient shareholder returns and benefits for other stakeholders.
+allocate capital through an efficient and risk based approach to optimize risk-adjusted return to
+shareholders; and
+support the Group's financial stability and profitable growth;
+maintain an adequate capital base to support the development of its business;
+The Group's capital management objectives are as follows:
+Notes
+4,555 816,206
+(37,792)
+33,616
+investments at fair value through
+Other debt instrument and other equity
+122,592 6,372,522
+2,676,021 2,869,265
+543,312
+104,328
+57,004
+amortized cost
+other comprehensive income
+Debt instrument investments at
+32,078 156,612
+84,068
+18,736
+profit or loss
+Financial assets at fair value through
+39,321 16,454,503
+453,690
+709,928
+152,617 460,241
+2,786
+8,483,615
+64,522
+566,997
+(1,295)
+(12,171) (1,622,366)
+(138,506) (138,393) (205,554)
+(3,046)
+(106,779) (99,692) (78,797)
+(1,127,742)
+other financial institutions
+Placements from banks and other
+financial institutions
+Deposits from banks and
+(6,636) (747,213)
+96,496 277,788
+(31,000) (659,796) (1,263)
+Borrowings from central banks
+734,846 28,608,892
+2,846,881 9,580,231 4,011,393 3,851,861
+7,583,680
+Total financial assets
+19,183 1,397,280
+77,881 77,881
+Other financial assets
+372,294
+(48,518)
+4,316,155 2,451,794
+Loans and advances to customers
+20,666
+Total
+bearing
+289,184
+2,032,222
+Cash and balances with central banks
+5 years
+years
+interest
+Over
+2,321,406
+1 to 5
+1 to 3
+months
+1 month
+Less than
+Non-
+31 December 2021
+The tables below summarize the contractual maturity or re-pricing date, whichever is earlier, of the
+Group's financial assets and liabilities at the end of each reporting period.
+22,967
+Interest rate risk (Continued)
+3 to 12
+months
+Deposits with banks and
+other financial institutions
+102,908
+809,716
+under resale agreements
+Financial assets held
+21,978
+21,978
+Derivative financial assets
+446,944
+1,078
+14,866
+132,215
+116,368
+182,417
+and other financial institutions
+Placements with and loans to banks
+218,500
+6,543
+11,503
+56,447
+41,099
+(1,496) (291,105)
+Financial liabilities at fair value through
+profit or loss
+4,469 837,637
+Total
+2,437,275
+bearing
+263,202
+12,653
+3,294
+2,158,126
+Cash and balances with central banks
+5 years
+years
+Deposits with banks and
+months
+1 month
+interest
+1 to 5
+3 to 12
+1 to 3
+Less than
+Non-
+31 December 2020
+months
+other financial institutions
+99,175
+57,083
+755,068
+under resale agreements
+Derivative financial liabilities
+Financial assets held
+61,937
+61,937
+Derivative financial assets
+546,948
+1,750
+28,830
+149,070
+156,519
+210,779
+and other financial institutions
+Placements with and loans to banks
+434,185
+8,258
+13,037
+256,632
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+Over
+(1,157)
+(349,797) (21,907,127)
+(16,046)
+(4,240,028)
+(36,033)
+(20)
+344
+(6,871)
+(9,147)
+(12,926,703) (1,254,524) (3,120,029)
+(94,101) (294,188) (701,558)
+Other financial liabilities
+Debt securities issued
+Due to customers
+(18,838)
+under repurchase agreements
+(19,337)
+(19,337)
+(15,860)
+(15,646)
+- (214)
+Financial assets sold
+(294,999)
+(8,251) (1,507,657)
+(318,543) (318,543)
+(114,560)
+(14,322,681) (1,824,781) (4,707,720)
+The tables below summarize the contractual maturity or re-pricing date, whichever is earlier, of the
+Group's financial assets and liabilities at the end of each reporting period. (Continued)
+Interest rate risk (Continued)
+44.3 Market risk (Continued)
+44 FINANCIAL RISK MANAGEMENT (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(Amounts in millions of Renminbi, unless otherwise stated)
+Total financial liabilities
+Notes to the Consolidated Financial Statements
+Annual Report 2021 343
+For the year ended 31 December 2021
+2,949
+(554,215) 3,539,307
+(6,739,001) 1,022,100 4,872,511
+Interest rate gap
+(731,897) (26,465,241)
+(312,554)
+2,143,651
+(4,565,608)
+Financial investments
+6,337,768
+396,298
+Financial assets at fair value through profit or loss
+Debt instrument investments at amortized cost
+320,106
+16,377,896
+14,489,992
+5,651,053
+Other debt instrument and other equity investments
+Other assets
+1,337,218
+1,439,296
+Investment in subsidiaries
+51,523
+41,544
+Investments in associates and joint ventures
+Controlled structured entities investments
+Property and equipment
+Deferred tax assets
+812,797
+Total assets
+at fair value through other comprehensive income
+832,216
+Other equity instruments
+Preference shares
+61,937
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Liabilities
+As at 31 December
+2021
+2020
+Assets
+Cash and balances with central banks
+2,320,907
+2,436,779
+Deposits with banks and other financial institutions
+Precious metals
+198,745
+413,567
+96,504
+87,357
+Placements with and loans to banks and other financial
+institutions
+531,065
+634,055
+Derivative financial assets
+21,978
+Financial assets held under resale agreements
+Loans and advances to customers
+1,073
+2020
+119,862
+Due to customers
+Debt securities issued
+Other liabilities
+Total liabilities
+21,906,047
+20,371,534
+1,461,094
+388,958
+1,326,408
+427,892
+26,438,526
+24,814,022
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+49 STATEMENT OF FINANCIAL POSITION OF THE BANK (Continued)
+As at 31 December
+2021
+Equity
+Certain comparative amounts have been reclassified to conform with the current year's presentation.
+49 STATEMENT OF FINANCIAL POSITION OF THE BANK
+Ordinary shares
+104,440
+210
+30,456
+65,254
+140,675
+139,588
+142,180
+132,489
+127,195
+143,978
+28,837,049
+27,000,802
+Borrowings from central banks
+747,101
+737,048
+Deposits from banks and other financial institutions
+Placements from banks and other financial institutions
+Financial liabilities at fair value through profit or loss
+Derivative financial liabilities
+1,636,419
+1,413,174
+233,468
+344,907
+15,646
+23,365
+19,337
+Financial assets sold under repurchase agreements
+48 COMPARATIVES
+(73,118)
+47.2 Undated capital bonds issued
+included in profit or loss
+for assets/liabilities held at
+the end of the year
+783
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+46 FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
+46.4 Financial assets and financial liabilities measured at fair value on the consolidated
+statement of financial position (Continued)
+2020
+Financial assets
+Other debt instrument
+and other equity
+at fair value
+through
+profit or loss
+investments at fair
+value through other
+comprehensive income
+Financial
+liabilities
+at fair value
+through
+profit or loss
+Due to
+customers
+measured
+at fair value
+1 January 2020
+96,871
+20,569
+(6,681)
+(306,294)
+or loss for the period
+Purchases
+Change in unrealized profit
+3,424
+Perpetual bonds
+Financial
+liabilities
+at fair value
+through
+profit or loss
+Due to
+customers
+measured
+at fair value
+(9,770)
+(37,436)
+(19,277)
+9,570
+73,553
+Total gain/(loss) recognized in
+- Profit or loss
+567
+659
+(14)
+(435)
+- Other comprehensive income
+(869)
+31 December 2021
+98,841
+(214)
+62,943
+6,875
+(230)
+the year
+899
+(100)
+In level 3 of the fair value hierarchy, total gains or losses included in profit or loss for the period are
+presented net gain/(loss) on financial investments (Note IV 4) of the consolidated income statement.
+47 EVENTS AFTER THE REPORTING PERIOD
+47.1 Profit appropriation
+(1)
+On 26 January 2022, pursuant to the resolutions of the Board of Directors' meeting, a cash
+dividend at the dividend rate of 4.84% per annum related to the second tranche of preference
+shares amounting to RMB1,936 million in total was approved and the dividend was distributed
+on 11 March 2022.
+(2) Pursuant to the meeting of the Board of Directors on 30 March 2022, the proposal for profit
+appropriations of the Bank for the year ended 31 December 2021 are set forth as follows:
+(i) An appropriation of RMB24,335 million to the statutory surplus reserve (Note IV 36);
+(ii) An appropriation of RMB32,221 million to the general reserve (Note IV 37);
+(iii) A cash dividend of RMBO.2068 per ordinary share in respect of the year ended
+31 December 2021 based on the number of ordinary shares issued as at 31 December
+2021 totaling RMB72,376 million (Note IV 10).
+As at 31 December 2021, the statutory surplus reserve had been recognized as
+appropriation. The other two items will be recognized in the Group's financial statements
+after approval by ordinary equity holders in the forthcoming Annul General Meeting.
+Annual Report 2021 355
+356
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+47 EVENTS AFTER THE REPORTING PERIOD (Continued)
+liabilities held at the end of
+profit or loss for assets/
+Change in unrealized loss/(gain)
+for the period included in
+(73,118)
+Issues
+(185,640)
+(1,155,477)
+Settlements/disposals
+(57,086)
+(6,406)
+183,361
+1,395,128
+Total loss/(gain) recognized in
+On 22 February 2022, the Bank issued "2022 Undated Capital Bonds (First Tranche) of Agricultural
+Bank of China Limited" (the "Bonds") in China's national inter-bank bond market. The issue size of
+the Bonds is RMB50 billion. The proceeds from this issue of the Bonds will be used to replenish the
+Bank's additional tier 1 capital.
+- Profit or loss
+108
+(580)
+(6,475)
+- Other comprehensive income
+(27)
+31 December 2020
+102,883
+21,119
+(9,770)
+155
+Capital reserve
+fair value measurements are those derived from quoted prices (unadjusted) in an active
+market for identical assets or liabilities;
+Surplus reserve
+199,886
+173,357
+29,549
+174,551
+275,790 730,309
+1,960
+1,935,385
+210,401
+210,401
+Other comprehensive income
+(3,765)
+(2,038)
+(5,803)
+Total comprehensive income
+for the year
+(3,765)
+210,401
+(2,038) 204,598
+Capital contribution from
+349,983
+equity holders
+As at 31 December 2019
+Profit for the year
+reserve
+348,955
+913,752
+(1,584) 2,398,523
+Foreign
+Investment
+currency
+Ordinary Other equity
+Capital
+revaluation
+Surplus
+General
+Retained
+translation
+shares
+instruments
+reserve
+reserve
+reserve
+reserve earnings
+Total
+119,989
+119,989
+Appropriation to surplus reserve
+Financial assets
+Bonds issued
+Financial liabilities
+government bond)
+from the MOF and special
+amortized cost (excluding receivable
+Debt instrument investments at
+Financial assets
+The tables below summarize the carrying amounts and fair values of those financial assets and
+financial liabilities not measured in the consolidated statement of financial position at their fair value.
+Financial assets and financial liabilities for which the carrying amounts approximate fair value, such as
+balances with central banks, deposits with banks and other financial institutions, placements with and
+loans to banks and other financial institutions, financial assets held under resale agreements, loans
+and advances to customers, receivable from the MOF, special government bond, borrowings from
+central banks, deposits and placements from banks and other financial institutions, due to customers,
+financial assets sold under repurchase agreements and certificates of deposit issued, interbank
+certificate of deposits issued and commercial papers issued are not included in the tables below.
+46.3 Financial assets and financial liabilities not measured at fair value on the consolidated
+statement of financial position
+fair value measurements are those derived from inputs other than quoted prices included
+within Level 1 that are observable for the asset or liability, either directly or indirectly; and
+fair value measurements are not based on observable market data.
+1,792
+Level 3:
+Level 2:
+Level 1:
+The level in which fair value measurement is categorized is determined by the level of the fair value
+hierarchy of the lowest level input that is significant to the entire fair value measurement:
+46.2 Fair value hierarchy
+46 FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+358
+(78) 2,186,780
+21,040
+(21,040)
+Appropriation to general reserve
+33,852
+(33,852)
+Dividends paid to ordinary equity
+holders
+(63,662)
+(63,662)
+219,926
+Dividends paid to other equity
+instrument holder
+(9,530)
+As at 31 December 2020
+349,983
+319,875
+173,357
+25,784
+195,591
+309,642
+812,626
+(9,530)
+Investment revaluation reserve
+34,262
+349,983
+Total equity
+2,398,523
+2,186,780
+Total equity and liabilities
+28,837,049
+27,000,802
+Approved and authorized for issue by the Board of Directors on 30 March 2022.
+银行展
+积
+有限公司
+澍
+青枯
+Chairman
+Vice Chairman
+Annual Report 2021 357
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+(78)
+50 STATEMENT OF CHANGES IN EQUITY OF THE BANK
+(1,584)
+913,752
+349,983
+349,983
+359,872
+319,875
+79,899
+79,899
+279,973
+239,976
+173,357
+173,357
+34,262
+25,784
+219,926
+195,591
+General reserve
+Retained earnings
+Foreign currency translation reserve
+348,955
+309,642
+812,626
+Foreign
+Ordinary Other equity
+shares instruments
+Investment
+Capital revaluation
+(1,506) 250,326
+Capital contribution from
+equity holders
+39,997
+39,997
+Appropriation to surplus reserve
+24,335
+(24,335)
+Appropriation to general reserve
+39,313
+(39,313)
+Dividends paid to ordinary equity
+holders
+(64,782)
+(64,782)
+Dividends paid to other equity
+instrument holder
+(13,798)
+(13,798)
+As at 31 December 2021
+243,354
+8,478
+for the year
+Total comprehensive income
+Surplus
+As at 31 December 2020
+Profit for the year
+349,983
+reserve
+319,875 173,357
+reserve
+reserve
+reserve
+25,784
+195,591
+359,872 173,357
+General Retained
+earnings
+309,642 812,626
+reserve
+Total
+(78)
+2,186,780
+243,354
+243,354
+Other comprehensive income
+8,478
+(1,506) 6,972
+currency
+translation
+and other equity
+investments at fair
+value through other
+comprehensive income
+21,119
+The tables below summarize the fair values of the financial assets and financial liabilities measured in
+the consolidated statement of financial position at their fair value. (Continued)
+2021
+investments at fair value through
+other comprehensive income
+Debt instruments
+Bonds
+_
+Others
+Equity instruments
+Subtotal
+Total assets
+162,072
+1,213,723
+16,896
+1,375,795
+16,896
+1,165
+3,424
+4,589
+163,237
+1,230,619
+3,424
+1,397,280
+Other debt instruments and other equity
+195,696
+460,241
+328,941
+274
+154,859
+Equity
+13,501
+12,063
+Fund and others
+251
+19,305
+79,112
+19,455
+104,676
+39,011
+- Financial assets designated at fair value
+through profit or loss
+Debt securities
+2,273
+40
+2,313
+Subtotal
+32,459
+98,841
+2,084,286
+102,265
+2,382,247
+(15,646)
+(214)
+(15,860)
+Exchange rate derivatives
+― Interest rate derivatives
+Precious metal contracts
+Subtotal
+(14,734)
+(14,734)
+(2,366)
+(2,366)
+(2,237)
+(2,237)
+(19,337)
+(19,337)
+Due to customers
+Due to customers measured at fair value
+(52,306)
+(52,306)
+(214)
+(214)
+(15,646)
+(15,646)
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+46 FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
+46.4 Financial assets and financial liabilities measured at fair value on the consolidated
+statement of financial position (Continued)
+The tables below summarize the fair values of the financial assets and financial liabilities measured in
+the consolidated statement of financial position at their fair value. (Continued)
+Financial liabilities at fair value through
+profit or loss
+Held for trading
+-
+Financial liabilities related to precious
+154,585
+metals
+value through profit or loss
+Liabilities of the controlled structured
+entities
+Subtotal
+Derivative financial liabilities
+Level 1
+31 December 2021
+Level 2
+Level 3
+Total
+Financial liabilities designated at fair
+Total liabilities
+Bonds
+· Other financial assets at fair value
+Level 1
+Level 2
+Level 3
+5,273,439
+5,333,755
+27,772
+5,151,535
+154,448
+439,621
+441,775
+28,749
+413,026
+Annual Report 2021 349
+350
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+46 FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
+Fair value
+46.4 Financial assets and financial liabilities measured at fair value on the consolidated
+statement of financial position
+Carrying
+amount
+387,815
+from the MOF and special
+government bond)
+Financial liabilities
+Bonds issued
+31 December 2021
+Carrying
+amount
+Fair value
+Level 1
+Level 2
+Level 3
+5,953,781
+6,107,442
+32,976
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+112,695
+428,856
+435,680
+47,865
+31 December 2020
+The tables below summarize the fair values of the financial assets and financial liabilities measured in
+the consolidated statement of financial position at their fair value.
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Financial investment
+Financial assets at fair value through
+profit or loss
+Held for trading
+Bonds
+8,225
+119,912
+Precious metal contracts
+21,389
+Equity
+3,948
+1,331
+Fund and others
+4,261
+316
+128,137
+21,389
+5,279
+4,577
+502,748
+502,748
+Subtotal
+502,748
+Derivative financial assets
+― Exchange rate derivatives
+- Interest rate derivatives
+-Precious metal contracts
+Level 1
+31 December 2021
+Level 2
+Level 3
+Total
+20,116
+through profit or loss
+20,116
+1,141
+721
+721
+21,978
+21,978
+Subtotal
+Loans and advances to customers
+Discounted bills and forfeiting
+502,748
+1,141
+Other debt instrument
+(87,289)
+(87,503)
+Placements from banks and other financial
+institutions by principal guaranteed wealth
+management
+- Liabilities of the controlled
+structured entities
+Others
+Subtotal
+Derivative financial liabilities
+Exchange rate derivatives
+Interest rate derivatives
+Precious metal contracts and others
+Subtotal
+Due to customers
+Due to customers measured at fair value
+Total liabilities
+Level 1
+31 December 2020
+Level 2
+Level 3
+Total
+through profit or loss
+(13,725)
+Financial liabilities designated at fair value
+- Financial liabilities related to
+531
+1,222
+18,410
+2,709
+1,532,498
+18,941
+3,931
+116,002
+1,418,249
+21,119
+1,555,370
+149,084
+2,505,339
+124,002
+2,778,425
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+46 FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
+46.4 Financial assets and financial liabilities measured at fair value on the consolidated
+statement of financial position (Continued)
+The tables below summarize the fair values of the financial assets and financial liabilities measured in
+the consolidated statement of financial position at their fair value. (Continued)
+Financial liabilities at fair value through
+profit or loss
+Held for trading
+precious metals
+(13,725)
+(9,540)
+(9,540)
+Substantially all financial instruments classified within Level 2 of the fair value hierarchy are debt
+investments, currency forwards, currency swaps, interest rate swaps, currency options, precious metal
+contracts and structured deposit measured at fair value. Fair value of debt investments denominated
+in RMB is determined based upon the valuation published by the China Central Depository & Clearing
+Co., Ltd. Fair value of debt investments denominated in foreign currencies is determined based upon
+the valuation results published by Bloomberg. The fair value of currency forwards, currency swaps,
+interest rate swaps, currency options and structured deposit measured at fair value are calculated by
+applying discounted cash flow analysis or the Black Scholes Pricing Model. The fair value of precious
+metal contracts that are related to the Group's trading activities is determined with reference to the
+relevant observable market parameters. All significant inputs are observable in the market.
+Annual Report 2021 353
+354
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+46 FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
+46.4 Financial assets and financial liabilities measured at fair value on the consolidated
+statement of financial position (Continued)
+Level 3 financial assets of the Group mainly represented underlying assets invested by principal-
+guaranteed WMPs issued by the Group including placements with and loans to banks and other
+financial institutions and credit assets. The counterparties of these placements are primarily non-
+bank financial institutions in Chinese mainland. The credit assets are loans and advances to corporate
+customers in Chinese mainland. Level 3 financial liabilities largely represented liabilities to the
+investors of these products. As not all of the inputs needed to estimate the fair value of these assets
+and liabilities are observable, the Group classified these investment products within Level 3 of the fair
+value measurement hierarchy. The significant unobservable inputs related to these assets and liabilities
+are those parameter relating to credit risk, liquidity and discount rate. Management has made
+assumptions on unobservable inputs based on observed indicators of impairment, significant changes
+in yield, external credit ratings and comparable credit spreads, but the fair value of these underlying
+assets and liabilities could be different from those disclosed.
+The reconciliation of Level 3 classified financial assets and financial liabilities presented at fair value on
+the consolidated statement of financial position is as follows:
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+1 January 2021
+Purchases
+Issues
+Settlements/disposals/transfer
+out of level 3
+Financial assets
+at fair value
+through
+profit or loss
+102,883
+32,827
+(434,768)
+(82,888)
+(347,658)
+(4,222)
+(4,222)
+(230)
+(4,452)
+(100)
+(100)
+(4,222)
+(13,825)
+(9,770)
+(27,817)
+1,417,718
+(57,756)
+(3,169)
+(65,282)
+(57,756)
+(4,357)
+(3,169)
+(65,282)
+(268,551)
+(73,118)
+(341,669)
+(4,357)
+(214)
+114,780
+Subtotal
+- 58,187
+1,009
+2,741
+1,009
+2,741
+- 61,937
+- 61,937
+577,997
+52
+578,049
+577,997
+578,049
+profit or loss
+Held for trading
+Bonds
+1,257
+181,268
+Precious metal contracts
+21,959
+Equity
+3,912
+58,187
+1,032
+Total
+31 December 2020
+Level 2
+Annual Report 2021 351
+Notes to the Consolidated Financial Statements
+For the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+IV NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
+46 FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
+46.4 Financial assets and financial liabilities measured at fair value on the consolidated
+statement of financial position (Continued)
+352
+|中国农业银行
+AGRICULTURAL BANK OF CHINA
+Derivative financial assets
+- Exchange rate derivatives
+― Interest rate derivatives
+Precious metal contracts
+Subtotal
+Loans and advances to customers
+Discounted bills and forfeiting
+Negotiation L/C
+Subtotal
+Financial investment
+Financial assets at fair value through
+Level 1
+Level 3
+Fund and others
+14,323
+209
+55,116
+63,866
+Placements with and loans to banks
+and other financial institutions
+Others
+24,493
+3,442
+27,935
+7,068
+7,068
+Subtotal
+33,082
+447,104
+102,883
+583,069
+Other debt instruments and other equity
+investments at fair value through other
+comprehensive income
+Debt instruments
+- Bonds
+Others
+Equity instruments
+8,750
+Debt securities
+through profit or loss
+— Financial assets designated at fair value
+182,525
+21,959
+4,944
+14,532
+Other financial assets at fair value
+through profit or loss
+Bonds
+132,530
+1,478
+Total assets
+134,008
+1,842
+23,561
+71,998
+97,401
+Fund and others
+2,998
+6,936
+18,897
+28,831
+Equity
+5,961,771
+amortized cost (excluding receivable
+Debt instrument investments at
+Annual Report 2021 359
+0.22%
+0.34%
+0.37%
+1.08%
+1.29%
+Total rescheduled loans and advances to customers
+Including: rescheduled loans and advances to
+customers overdue for not more than 3 months
+Percentage of rescheduled loans and advances to
+customers overdue for not more than 3 months in total loans
+As at 31 December
+2021
+18,307
+2020
+14,546
+656
+1,539
+0.00%
+0.01%
+0.14%
+(2) Rescheduled loans and advances to customers
+Total
+Over 12 months
+23,768
+33,687
+Over 12 months
+57,715
+56,412
+Total
+184,921
+195,433
+Percentage of overdue loans and advances
+to customers in total loans
+Within 3 months
+0.43%
+0.52%
+Between 3 and 6 months
+0.17%
+0.18%
+Between 6 and 12 months
+(3) Gross carrying amount of overdue placements with and loans to banks and other
+financial institutions.
+There were no overdue in the Group's placements with and loans to banks and other financial institutions
+as at 31 December 2021 and 31 December 2020.
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+2020
+141.7%
+Three months ended
+30 June 30 September
+145.2%
+2020
+31 March
+Average Liquidity Coverage Ratio
+2021
+121.1%
+2020
+109.6%
+2021
+127.9%
+129.8%
+Average Liquidity Coverage Ratio
+31 March
+2021
+Three months ended
+1. LIQUIDITY COVERAGE RATIOS
+According to Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and Banking
+(Disclosure) Rules, the Group discloses the following supplementary information:
+for the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+30 June 30 September 31 December
+2021
+127.3%
+31 December
+2020
+116.3%
+FSC
+www.fsc.org
+MIX
+Paper from
+responsible sources
+FSC™ C020557
+中国农业银行
+AGRICULTURAL BANK OF CHINA
+Add: No.69, Jianguomen Nei Avenue, Dongcheng District, Beijing, P.R. China
+Postal Code: 100005 Tel: 86-10-85108888
+http://www.abchina.com
+Total
+Equivalent in millions of RMB
+Other
+HKD
+USD
+2. CURRENCY CONCENTRATIONS
+The liquidity coverage ratios were also in accordance with the Rules on Liquidity Risk Management of
+Commercial Banks issued by the CBIRC and applicable calculation requirements, and based on the data
+determined under the PRC GAAP.
+Between 6 and 12 months
+27,106
+29,079
+78,228
+53,330
+25,235
+7,035
+85,600
+Net structural position
+4,766
+7,664
+Net long position
+5,515
+Equivalent in millions of RMB
+USD
+HKD
+Other
+Total
+31 December 2020
+Spot assets
+17,945
+15,312
+49
+15,263
+948,956
+125,183
+(914,889)
+(121,991)
+186,204
+(143,268)
+1,260,343
+(1,180,148)
+Forward purchases
+1,169,736
+46,303
+85,630
+1,301,669
+Forward sales
+(1,165,736)
+(24,260)
+(121,580)
+(1,311,576)
+Net options position
+945,515
+115,422
+Spot liabilities
+(924,311)
+6,212
+6,125
+3,103
+15,440
+31 December 2021
+360
+Unaudited Supplementary Financial Information
+for the year ended 31 December 2021
+(Amounts in millions of Renminbi, unless otherwise stated)
+3. OVERDUE AND RESCHEDULED ASSETS
+(1) Gross carrying amount of overdue loans and advances to customers
+As at 31 December
+2021
+2020
+Overdue
+Within 3 months
+Between 3 and 6 months
+74,359
+Net structural position
+Unaudited Supplementary Financial Information
+96,239
+19,277
+(115,269)
+Forward purchases
+1,172,479
+43,880
+198,148
+(145,891)
+68,332
+1,259,085
+(1,185,471)
+1,284,691
+Forward sales
+(1,115,324)
+(24,756)
+(96,172)
+(1,236,252)
+Net options position
+(23,016)
+(2,798)
+(25,814)
+Net long position
+55,343
+21,619
+Spot liabilities
+Spot assets
+Investment revaluation reserve
+2,818,551
+14.0
+3,023,021
+23.9
+4,802,096
+24.2
+5,228,107
+0.7
+146,231
+0.5
+99,289
+Amount Percentage (%)
+Percentage (%)
+31 December 2020
+In millions of RMB, except for percentages
+31 December 2021
+Amount
+Sub-Total
+14.0
+Overseas and others
+3,787,784
+3,493,789
+0.5
+105,216
+0.5
+116,198
+21.6
+4,341,790
+21.2
+4,569,603
+5.0
+1,004,778
+5.1
+1,094,526
+16.9
+3,394,921
+17.0
+3,676,925
+17.4
+17.5
+21,595,453
+Western China
+Central China
+0.5
+105,216
+0.5
+116,198
+2.3
+457,525
+2.3
+507,155
+29.2
+5,871,383
+27.5
+5,940,596
+30.1
+6,054,657
+32.4
+6,993,575
+59.3
+Sub-Total
+Northeastern China
+Accrued interest
+21,595,453
+Bohai Rim
+Pearl River Delta
+Yangtze River Delta
+Head Office
+Item
+Distribution of Deposits from Customers by Geographic Region
+Discussion and Analysis
+Annual Report 2021 35
+Including margin deposits, remittance payables and outward remittance.
+Note: 1.
+20,372,901
+21,907,127
+265,529
+311,674
+100.0
+20,107,372
+100.0
+Total
+34,927
+100.0
+100.0
+31 December 2020
+In millions of RMB, except for percentages
+The table below presents the composition of shareholders' equity at the dates indicated.
+At 31 December 2021, our shareholders' equity amounted to RMB2,421,359 million, representing an increase of
+RMB210,613 million, or 9.5%, as compared to the end of the previous year. Net assets per ordinary share were
+RMB5.87, representing an increase of RMBO.48 as compared to the end of the previous year.
+Shareholders' Equity
+Discussion and Analysis
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+36
+Please see related chapters for details of the net stable funding ratio, liquidity coverage ratio, liquidity ratio of
+important currency (RMB), net interest margin and average cost of total interest-bearing liabilities of the Bank.
+During the reporting period, the related liability management indicators and limits complied with the requirements
+of current internal and external rules and regulations. Deposits from customers kept growing stably, laying a solid
+foundation for liability sources. We continuously developed innovative products based on market demands and
+business needs in order to diversify the liability structure and continuously improve the competitiveness of products
+in the market. We continuously encouraged the absorption of general deposits and broadened the sources of active
+liabilities. We kept strengthening the initiative to obtain liabilities in such manners as coordinating and organizing
+placements from banks and other financial institutions, issuing debt securities and borrowing from the central bank.
+We established a scientific internal and external fund pricing mechanism and timely monitored and warned the
+changes of liability cost. We introduced scientific risk management technologies and methods, carried out regulatory
+requirements in a comprehensive manner and assured the authenticity of liability projects.
+The Bank built the liability quality management system that adapted to the operating strategy, risk appetite and
+overall business characteristics. According to the Management Measurement on Asset and Liability of the Bank,
+we defined the responsibilities for liability quality management in the principle of function separation, and devised
+the mechanism where the Asset & Liability Management Department plays a leading role and various front office
+departments are responsible for respective business lines and they collaborate to manage the liability business lines of
+the Bank. Under the comprehensive risk management system, we forged the monitoring, evaluation, reporting and
+control systems for specific risks such as liquidity risk, interest rate risk and exchange rate risk.
+265,529
+20,372,901
+311,674
+21,907,127
+100.0
+20,107,372
+100.0
+Item
+21,595,453
+Ordinary shares
+Capital reserve
+25,987
+1.2
+7.9
+173,556
+7.2
+173,556
+14.5
+319,875
+14.9
+359,872
+15.8
+349,983
+14.5
+349,983
+Percentage (%)
+Amount
+31 December 2021
+Amount Percentage (%)
+Other equity instruments
+20,107,372
+0.1
+0.1
+31 December 2021
+Amount Percentage (%)
+Quality of Liabilities
+Total
+Accrued interest
+Sub-Total
+More than 5 years
+1-5 years
+3-12 months
+Less than 3 months
+Demand
+Item
+Distribution of Deposits from Customers by Remaining Maturity
+21,907,127
+Total
+Accrued interest
+265,529
+20,372,901
+311,674
+In millions of RMB, except for percentages
+12,129
+31 December 2020
+Percentage (%)
+16,046
+17.7
+3,555,435
+19.6
+4,240,028
+14.3
+2,875,558
+14.4
+3,120,029
+8.7
+1,755,619
+8.5
+1,838,380
+59.2
+11,908,631
+57.4
+12,380,970
+Amount
+1.4
+In millions of RMB, except for percentages
+Surplus reserve
+0.5
+38,716
+0.6
+58,283
+Information transmission, software and IT services
+2.9
+232,833
+1.7
+153,577
+Others²
+Finance
+1,259,179
+16.3
+1,494,187
+Leasing and commercial services
+2.3
+191,659
+2.1
+193,539
+Mining
+15.5
+329,270
+3.6
+276,906
+Loans to private business
+Credit card balances
+Residential mortgage loans
+Personal consumption loans
+Item
+Amount Percentage (%)
+In millions of RMB, except for percentages
+31 December 2021
+At 31 December 2021, our retail loans increased by RMB918,469 million, or 14.8%, as compared to the end of the
+previous year. Among which, residential mortgage loans increased by 12.4%, primarily because we carried out the
+regulatory requirements and supported customers to purchase their residential properties for non-investment purpose;
+loans to private business increased by 23.5%, primarily because we vigorously developed inclusive finance; credit card
+balances increased by 15.5%, primarily due to the rapid increase in credit card installment business; loans to rural
+households increased by 38.6%, primarily due to the rapid increase in Huinong E-loan.
+Distribution of Retail Loans by Product Type
+At 31 December 2021, the top five major industries for our corporate loans include: (1) transportation, storage
+and postal services; (2) manufacturing; (3) leasing and commercial services; (4) production and supply of electricity,
+heating, gas and water; and (5) real estate. Aggregate loan balance of the top five major industries accounted for
+75.6% of our total corporate loans, representing a decrease of 0.2 percentage point as compared to the end of the
+previous year.
+Discussion and Analysis
+Annual Report 2021 31
+Classification of the loans in the above table is based on the industries in which the borrowers operate. Real
+estate loans include real estate development loans granted to enterprises mainly engaged in the real estate
+industry, mortgage loans for operating properties and other non-real estate loans granted to enterprises in the
+real estate industry. At the end of 2021, the balance of real estate loans to corporate customers amounted to
+RMB430,310 million, representing an increase of RMB51,777 million as compared to the end of the previous year.
+Others mainly include agriculture, forestry, animal husbandry, fishery, public health, and social work.
+2.
+Notes: 1.
+100.0
+8,134,487
+100.0
+9,168,032
+Total
+3.4
+2.6
+Loans to rural households
+213,961
+291,573
+heating, gas and water
+Production and supply of electricity,
+16.3
+1,329,190
+16.3
+1,497,847
+Amount Percentage (%)
+31 December 2020
+31 December 2021
+Amount Percentage (%)
+1,017,210
+Manufacturing
+In millions of RMB, except for percentages
+100.0
+8,134,487
+100.0
+69.6
+5,663,252
+71.5
+6,554,283
+9,168,032
+30.4
+Item
+11.1
+924,078
+11.4
+Construction
+7.5
+611,925
+7.8
+716,090
+Water, environment and public utilities management
+5.0
+408,879
+5.4
+493,538
+Wholesale and retail
+22.9
+1,860,488
+22.8
+2,092,461
+Transportation, storage and postal services
+9.7
+786,673
+9.1
+830,457
+Real estate¹
+3.2
+Others
+Total
+5,242,288
+100.0
+2,210,746
+100.0
+Off-balance Sheet Items
+Off-balance sheet items primarily include derivative financial instruments, contingent liabilities and commitments. The
+Bank enters into derivative transactions related to exchange rates, interest rates and precious metals for the purposes
+of trading, assets and liabilities management and business on behalf of customers. The Bank's contingent liabilities
+and commitments include credit commitments, capital expenditure commitments, bond underwriting and redemption
+commitments, mortgaged and pledged assets, legal proceedings and other contingencies. Credit commitments are
+the major components of off-balance sheet items and comprise loan commitments, bank acceptances, guarantees and
+letters of guarantee, letters of credit and credit card commitments.
+Composition of Credit Commitments
+In millions of RMB, except for percentages
+31 December 2021
+Item
+2,421,359
+Amount
+31 December 2020
+Amount Percentage (%)
+Loan commitments
+459,900
+22.0
+1,617,278
+51.0
+Bank acceptances
+414,934
+19.9
+Percentage (%)
+Total
+0.3
+5,957
+220,792
+9.1
+196,071
+8.8
+General reserve
+351,616
+14.5
+311,449
+14.1
+Retained earnings
+925,955
+38.2
+828,240
+37.4
+Foreign currency translation reserve
+(2,096)
+(0.1)
+(372)
+Non-controlling interests
+6,754
+0.3
+429,841
+13.6
+Guarantees and letters of guarantee
+304,238
+Business Review
+Corporate Banking
+During the reporting period, we actively served the major national strategies and key areas of the real economy,
+fostered new growth drivers through promoting digital transformation, established a new integrated service
+model, and improved our comprehensive financial service capability and customer satisfaction, so as to promote
+the high-quality development of our corporate banking business. At the end of 2021, the balance of domestic
+corporate deposits amounted to RMB8,037,929 million, representing an increase of RMB419,338 million
+compared to the end of the previous year. The balance of domestic corporate loans and discounted bills amounted
+to RMB9,592,361 million, representing an increase of RMB1,068,399 million as compared to the end of the
+previous year. The loans newly granted to projects included in our major marketing project pool amounted
+to RMB673.8 billion. At the end of 2021, we had 8.5963 million corporate banking customers, among which
+360.6 thousand customers had outstanding loan balances, representing an increase of 32.7 thousand customers as
+compared to the end of the previous year.
+We provided services to support major national strategies. By capitalizing our advantages of omni-channel, full
+range of products and multiple licenses, we comprehensively supported major regional development strategies,
+such as Beijing-Tianjin-Hebei Region, Yangtze River Delta, Guangdong-Hong Kong-Macao Greater Bay Area, and
+Chengdu-Chongqing Region.
+We provided services to support key areas of the real economy. We supported the cluster development of
+advanced manufacturing sector, innovated financial service models for the manufacturing sector, and accelerated
+the construction of key customer pool and key project pool for the manufacturing sector. The number of
+customers with outstanding loan balances and the balance of loans in manufacturing (based on the use of loans)
+increased by 81.7 thousand and RMB272.4 billion as compared to the end of the previous year, respectively.
+We supported new economy and new growth drivers, expanded our key customer base of the new economy,
+accelerated the building of a financial service system for science and technology startups, and maintained our
+first-mover advantage in the marketing to specialized and sophisticated "small giant" enterprises that produce
+new and unique products. The balance of our loans for strategic emerging industries exceeded RMB850 billion.
+We supported the development of private enterprises. We introduced policies to break hidden barriers of "difficult
+financing and expensive financing" in private enterprises, enhanced resource allocation, innovated service modes,
+and strengthened marketing effort to high-quality private enterprises, through which the quality and efficiency
+of financial services for private enterprises were improved. At the end of 2021, the number of private enterprises
+with outstanding loan balances reached 338.4 thousand, representing an increase of 32.7 thousand customers
+as compared to the end of the previous year. The balance of loans was RMB2,467,651 million, representing an
+increase of RMB436,238 million as compared to the end of the previous year.
+We promoted digital transformation. We established a series of digital marketing management tools based
+on the middle-end marketing platform for corporate banking (CMM system), focusing on major projects,
+the closed-loop management of funds and customer manager empowerment. We accelerated the layout of
+scenes in transportation, tourism, industrial chain and pension finance, and enriched the application of online
+credit, transaction banking, pension and other products. At the end of 2021, we had 50 thousand Internet
+high-frequency scenes for corporate business, representing an increase of 85.7% as compared to the end of the
+previous year and the number of active customers for corporate Internet banking and corporate mobile banking
+increased by 1,066.3 thousand and 864 thousand, respectively.
+38
+|中国农业银行
+AGRICULTURAL BANK OF CHINA
+2.9
+178,559
+2.5
+75.2
+4,662,119
+73.6
+31 December 2020
+Amount Percentage (%)
+291
+7,117,212
+603,392
+626,783
+468,688
+175,770
+Discussion and Analysis
+11,926,040
+Annual Report 2021 37
+Differences between the Consolidated Financial Statements Prepared under IFRSS and those Prepared
+under CASS
+14.6
+264,646
+8.4
+Letters of credit
+165,639
+7.9
+162,356
+5.1
+Credit card commitments
+743,594
+35.6
+695,183
+21.9
+Total
+2,088,305
+100.0
+3,169,304
+100.0
+Other Financial Information
+Changes in Accounting Policies
+There were no significant changes in accounting policies during the reporting period.
+There were no differences between the net profit or shareholders' equity in the Consolidated Financial Statements of
+the Bank prepared under IFRSS and the corresponding figures prepared in accordance with CASS.
+59.9
+4.39%
+26.0
+4,760,965
+63.4
+4,253,736
+60.2
+Bonds issued by policy banks
+1,557,354
+20.8
+1,427,871
+31 December 2020
+Amount Percentage (%)
+20.2
+710,759
+9.5
+873,119
+12.3
+Bonds issued by entities in public sectors
+238,604
+3.2
+220,866
+Bonds issued by other banks and financial institutions
+Amount Percentage (%)
+Government bonds
+Item
+114,544
+1.4
+106,276
+1.4
+93,794
+1.2
+132,155
+1.7
+8,093,012
+100.0
+7,696,712
+100.0
+125,947
+7,822,659
+Accrued interest
+Total
+137,031
+8,230,043
+Distribution of Non-restructuring-related Debt Securities Investments by Issuer
+In millions of RMB, except for percentages
+31 December 2021
+3.1
+Corporate bonds
+232,761
+3.1
+12.0
+937,124
+13.2
+1-5 years
+2,952,095
+39.4
+3,156,436
+44.7
+More than 5 years
+3,392,524
+45.2
+2,682,420
+37.9
+Total
+7,500,443
+100.0
+7,074,042
+100.0
+Distribution of Non-restructuring-related Debt Securities Investments by Currency
+900,411
+5.0
+3-12 months
+298,062
+298,450
+4.2
+Total
+7,500,443
+100.0
+7,074,042
+100.0
+Distribution of Non-restructuring-related Debt Securities Investments by Remaining Maturity
+In millions of RMB, except for percentages
+Remaining Maturity
+31 December 2021
+Amount Percentage (%)
+31 December 2020
+Amount
+Percentage (%)
+Overdue
+32
+Less than 3 months
+255,381
+3.4
+4.2
+384,239
+4.7
+384,231
+4,088,464
+23.8
+3,480,092
+23.0
+Pearl River Delta
+2,839,822
+16.6
+2,470,677
+16.3
+Bohai Rim
+2,461,253
+14.4
+2,214,679
+14.6
+Central China
+2,664,937
+15.6
+2,300,770
+15.2
+2.3
+Northeastern China
+350,729
+313,295
+8.8
+542,563
+8.8
+8.5
+435,267
+7.0
+681
+100.0
+6,198,743
+100.0
+Distribution of Loans and Advances to Customers by Geographic Region
+In millions of RMB, except for percentages
+Item
+Head Office
+Yangtze River Delta
+31 December 2021
+Amount Percentage (%)
+31 December 2020
+Amount
+Percentage (%)
+1.8
+In millions of RMB, except for percentages
+592,710
+551,938
+AGRICULTURAL BANK OF CHINA
+Distribution of Financial Investments by Product Type
+Item
+Non-restructuring-related debt securities
+Restructuring-related debt securities
+Equity instruments
+Others
+Sub-Total
+Discussion and Analysis
+31 December 2021
+In millions of RMB, except for percentages
+31 December 2020
+Amount Percentage (%)
+Amount
+Percentage (%)
+7,500,443
+92.7
+7,074,042
+91.9
+| 中国农业银行
+3.5
+32
+Financial Investments
+3.7
+Western China
+3,749,092
+21.8
+3,353,820
+22.2
+Overseas and others
+426,179
+2.5
+Sub-Total
+17,135,752
+100.0
+413,416
+15,136,121
+2.7
+100.0
+Accrued interest
+Total
+39,321
+17,175,073
+34,321
+15,170,442
+At 31 December 2021, our financial investments amounted to RMB8,230,043 million, representing an increase
+of RMB407,384 million, or 5.2%, as compared to the end of the previous year. In particular, investments in
+non-restructuring-related debt securities increased by RMB426,401 million, as compared to the end of the previous
+year, which was primarily due to an increase in investment in local government bonds and policy bank bonds.
+12,934,171
+Item
+USD
+Financial assets sold under
+repurchase agreements
+Debt securities issued
+Other liabilities
+Amount
+21,907,127
+Total liabilities
+Deposits from Customers
+Discussion and Analysis
+other financial institutions
+In millions of RMB, except for percentages
+Percentage (%)
+31 December 2020
+Amount Percentage (%)
+82.2
+20,372,901
+81.5
+1,913,471
+7.2
+1,785,176
+31 December 2021
+Deposits and placements from banks and
+Deposits from customers
+Item
+29,340
+3.43%
+2025/10/23
+2017 policy bank bond
+29,210
+2,471,235
+2027/09/08
+2019 policy bank bond
+27,546
+3.28%
+2024/02/11
+Note: 1.
+Allowance in this table refers to allowance for impairment losses in stage II and stage III, not including allowance for
+impairment losses in stage l.
+Liabilities
+At 31 December 2021, our total liabilities increased by RMB1,653,495 million, or 6.6%, to RMB26,647,796 million as
+compared to the end of the previous year. In particular, deposits from customers increased by RMB1,534,226 million,
+or 7.5%; deposits and placements from banks and other financial institutions increased by RMB128,295 million, or
+7.2%, mainly due to an increase in deposits from other domestic financial institutions; financial assets sold under
+repurchase agreements decreased by RMB73,162 million, or 67.0%, which was primarily due to a decrease in bonds
+sold under repurchase agreements; debt securities issued increased by RMB135,812 million, or 9.9%, which was
+primarily due to the increase in issuance of interbank certificates of deposit.
+34
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Key Items of Liabilities
+7.1
+36,033
+0.1
+109,195
+Other deposits¹
+Overseas and others
+31 December 2021
+Amount Percentage (%)
+31 December 2020
+Amount Percentage (%)
+21,479,255
+99.5
+20,002,156
+99.5
+8,037,929
+37.3
+7,618,591
+37.9
+2,667,190
+12.4
+2,390,431
+11.9
+5,370,739
+24.9
+5,228,160
+Demand
+2020 policy bank bond
+Time
+Demand
+0.4
+1,507,657
+5.7
+1,371,845
+5.5
+1,283,508
+26,647,796
+4.8
+1,355,184
+5.5
+100.0
+24,994,301
+100.0
+At 31 December 2021, the balance of deposits from customers of the Bank increased by RMB1,534,226 million,
+or 7.5%, as compared to the end of the previous year to RMB21,907,127 million. In terms of customer structure,
+the proportion of retail deposits increased by 0.6 percentage point to 59.9%. In terms of maturity structure, the
+proportion of demand deposits decreased by 2.8 percentage points to 52.4%.
+Distribution of Deposits from Customers by Business Type
+In millions of RMB, except for percentages
+Item
+Domestic deposits
+Corporate deposits
+Time
+Retail deposits
+2031/07/16
+3.38%
+32,311
+Distribution of Financial Investments by Business Models and Characteristics of Contractual Cash Flows
+6.6
+Item
+Financial assets at fair value through profit or loss
+Debt investments at amortized cost
+31 December 2021
+Amount
+Percentage (%)
+Amount
+460,241
+5.7
+583,069
+6,249,598
+77.2
+5,574,008
+Other debts and other equity instruments investments
+at fair value through other comprehensive income
+1,383,173
+17.1
+1,539,635
+Sub-Total
+8,093,012
+Discussion and Analysis
+100.0
+Annual Report 2021 33
+7,074,042
+Other foreign currencies
+Total
+31 December 2021
+Amount Percentage (%)
+31 December 2020
+Amount Percentage (%)
+7,190,104
+95.9
+6,756,711
+95.5
+249,096
+3.3
+264,207
+3.7
+61,243
+0.8
+53,124
+0.8
+7,500,443
+100.0
+100.0
+RMB
+7,696,712
+Percentage (%)
+3.79%
+2030/10/26
+2021 policy bank bond
+41,632
+3.52%
+2031/05/24
+2021 policy bank bond
+37,971
+3.22%
+2026/05/14
+2021 policy bank bond
+34,080
+3.48%
+2028/02/04
+2017 policy bank bond
+33,133
+3.85%
+2027/01/06
+2021 policy bank bond
+48,775
+31 December 2020
+2020 policy bank bond
+3.74%
+7.6
+72.4
+20.0
+100.0
+Accrued interest
+Total
+137,031
+8,230,043
+125,947
+7,822,659
+Investment in Financial Bonds
+Financial bonds refer to securities issued by policy banks, commercial banks and financial institutions, the principals
+and interests of which are to be repaid pursuant to a pre-determined schedule. At 31 December 2021, the balance
+of financial bonds held by the Bank was RMB2,268,113 million, including bonds of RMB1,557,354 million issued by
+policy banks and bonds of RMB710,759 million issued by commercial banks and other financial institutions.
+The table below presents the top ten financial bonds held by the Bank in terms of face value at 31 December 2021.
+In millions of RMB, except for percentages
+Bond
+Face value
+Annual
+interest rate
+Maturity
+date
+Allowance¹
+2020 policy bank bond
+50,571
+2030/11/16
+28.5
+8,230,043
+Amount Percentage (%)
+24,413
+Northeastern China
+21.2
+139,762
+21.3
+154,202
+Western China
+15.0
+98,993
+14.9
+107,196
+13.8
+90,921
+13.6
+98,191
+14.7
+97,061
+14.9
+107,394
+Central China
+Bohai Rim
+Pearl River Delta
+19.5
+3.4
+22,928
+3.5
+Overseas and others
+261,794
+40.9
+294,995
+County Area Banking Business
+Amount Percentage (%)
+Amount Percentage (%)
+Item
+2020
+2021
+In millions of RMB, except for percentages
+The table below presents our operating income from the County Area Banking Business and Urban Area Banking
+Business during the periods indicated.
+128,436
+Discussion and Analysis
+Annual Report 2021 29
+Note: Please refer to "Note IV. 39 Geographical Operating Segments to the Consolidated Financial Statements" for details of
+geographic segments.
+100.0
+659,332
+100.0
+721,746
+Total operating income
+6.7
+44,197
+7.0
+50,304
+30
+39.7
+20.0
+5.6
+39.6
+260,853
+37.4
+269,899
+Amount Percentage (%)
+Amount Percentage (%)
+2020
+2021
+Total operating income
+Other business
+Treasury operations
+Retail banking business
+Corporate banking business
+Item
+In millions of RMB, except for percentages
+We assessed our performance and determined the allocation of resources based on the segment reports. Segment
+information had been presented in the same manner with that of internal management and reporting. At present, we
+manage our segments from the aspects of business lines, geographical regions and the County Area Banking Business.
+The table below presents our operating income by business segment during the periods indicated.
+Segment Reports
+In 2021, our income tax expense rose by RMB5,294 million, or 10.9%, to RMB53,944 million as compared to the
+previous year. The effective tax rate was 18.23%, which was lower than the statutory tax rate. This was primarily
+because the interest income from the PRC treasury bonds and local government bonds held by the Bank was
+exempted from enterprise income tax by the relevant tax laws.
+Income Tax Expense
+In 2021, our credit impairment losses were RMB165,886 million, among which impairment losses on loans increased
+by RMB30,011 million to RMB168,999 million as compared to the previous year, primarily because we made the
+allowance for impairment losses on loans with a prudent approach.
+Credit Impairment Losses
+Discussion and Analysis
+2,613,749
+318,402
+44.1
+277,603
+42.1
+37,034
+4.9
+35,518
+Amount Percentage (%)
+Amount Percentage (%)
+Yangtze River Delta
+Head Office
+Item
+2020
+2021
+In millions of RMB, except for percentages
+144,528
+The table below presents our operating income by geographic segment during the periods indicated.
+659,332
+100.0
+721,746
+6.6
+43,697
+6.6
+47,503
+11.7
+77,179
+11.9
+85,942
+100.0
+Urban Area Banking Business
+379,554
+426,751
+721,746
+53.7
+8,134,487
+53.5
+9,168,032
+97.3
+14,722,705
+97.5
+16,709,573
+31 December 2020
+Amount Percentage (%)
+31 December 2021
+Amount Percentage (%)
+In millions of RMB, except for percentages
+Discussion and Analysis
+Accrued interest
+Sub-Total
+Overseas and others
+Retail Loans
+Discounted bills
+Corporate loans
+Loans granted by domestic branches
+Item
+Distribution of Loans and Advances to Customers by Business Type
+AGRICULTURAL BANK OF CHINA
+|中国农业银行
+424,329
+2.5
+389,475
+2.6
+Total operating income
+Amount Percentage (%)
+31 December 2020
+31 December 2021
+In millions of RMB, except for percentages
+Distribution of Corporate Loans by Industry
+Total
+Medium- and long-term corporate loans
+Short-term corporate loans
+Item
+17,175,073
+At 31 December 2021, our total loans and advances to customers amounted to RMB17,175,073 million, representing
+an increase of RMB2,004,631 million, or 13.2%, as compared to the end of the previous year.
+Distribution of Corporate Loans by Maturity
+100.0
+2.7
+34,321
+15,170,442
+413,416
+15,136,121
+39,321
+100.0
+2.5
+426,179
+17,135,752
+41.0
+6,198,743
+41.5
+Total
+Loans and Advances to Customers
+7,117,212
+27,205,047
+56.6
+16,454,503
+618,009
+720,570
+Percentage (%)
+31 December 2020
+Amount
+15,170,442
+17,175,073
+Percentage (%)
+31 December 2021
+Amount
+Less: Allowance for impairment losses on loans
+Loans and advances to customers, net
+Financial investments
+Item
+In millions of RMB, except for percentages
+Key Items of Assets
+At 31 December 2021, our total assets amounted to RMB29,069,155 million, representing an increase of
+RMB1,864,108 million, or 6.9%, as compared to the end of the previous year. In particular, net loans and advances
+to customers increased by RMB1,902,070 million, or 13.1%; financial investments increased by RMB407,384 million,
+or 5.2%; cash and balances with central banks decreased by RMB115,869 million, or 4.8%; deposits and placements
+with and loans to banks and other financial institutions decreased by RMB315,689 million, or 32.2%, which was
+primarily due to a decrease in cooperative deposits with banks and other financial institutions; financial assets held
+under resale agreements increased by RMB21,431 million, or 2.6%, which was primarily due to an increase in debt
+securities held under resale agreements.
+Assets
+Balance Sheet Analysis
+100.0
+659,332
+100.0
+60.3
+100.0
+59.1
+397,538
+14,552,433
+53.5
+Total loans and advances to customers
+28.3
+29,069,155
+100.0
+Total assets
+6.1
+2.1
+595,341
+1.9
+560,122
+3.0
+2.9
+837,637
+Financial assets held under resale agreements
+Others
+3.6
+816,206
+981,133
+7,822,659
+28.8
+2,321,406
+8.0
+2,437,275
+Cash and balances with central banks
+Deposits and placements with and loans to
+banks and other financial institutions
+665,444
+2.3
+9.0
+Bank Card Business
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+40
+Discussion and Analysis
+We comprehensively sorted out and optimized personal consumption loan products and launched batch
+marketing for retail banking customers of high-quality groups, through which we effectively raised our
+competitiveness in personal consumption loan market. At the end of 2021, the balance of online consumption
+loans exceeded RMB100 billion.
+We focused on enhancing financial services to individual industrial and commercial households, vigorously
+developed inclusive finance for small and micro enterprises, and implemented the policies of fee reduction and
+interest concession. As a result, significant progress was made in stabilizing and relieving enterprises. At the end
+of 2021, the balance of loans to private business exceeded RMB400 billion, of which a total of RMB270 billion
+was granted to 1.10 million individual industrial and commercial households.
+Retail Deposits
+We continued to enrich our product system and optimize the service processes to meet customers' diversified
+wealth management needs such as savings, investment and wealth management, and achieved sustained and
+steady growth in retail deposits.
+At the end of 2021, the balance of domestic retail deposits reached RMB12,934,171 million, representing an
+increase of RMB1,008,131 million as compared to the end of the previous year, maintaining a leading position in
+the industry.
+By strictly implementing national control policies and regulatory requirements and actively implementing
+differentiated housing credit policies, we focused on supporting the rational demand such as residents'
+purchasing and improvement demand for housing for non-investment purpose, and demand for urban housing
+of people migrating from rural to urban. The granting of our retail residential mortgage loans conformed to the
+regulatory requirements, and the concentration indicator continued to meet the regulatory requirements. At the
+end of 2021, the balance of retail residential mortgage loans reached RMB5.24 trillion, representing an increase
+of RMB580,169 million as compared to the end of the previous year.
+We enhanced the innovation of debit cards. We continued to enrich categories of debit card, and specifically
+promoted exclusive cards such as campus card, rural revitalization card, and ABC Zhufu card targeting students,
+county and rural customers, rural migrant workers and other different customer groups. We launched a variety
+of debit card marketing activities, and jointly organized a number of consumption promotion activities with
+UnionPay, involving catering, convenience stores and other venues for the convenience and benefit of the
+people. We fully implemented the policies of fee reduction and interest concession and waived inter-bank ATM
+cash withdrawal fees for all debit cards. At the end of 2021, we cumulatively issued 1,125 million debit cards,
+representing an increase of 26.9792 million as compared to the end of the previous year.
+Money Market Activities
+Private Banking Business
+•
+We strengthened the marketing to private banking customers, and organized marketing activities such as
+"Harvest Action". We established a batch of private banking centers at Head Office Level and strengthened the
+professional team construction such as wealth consultants and investment and research team to continuously
+improve our service system and professional services capabilities for private banking customers. The "Yi
+Private Banking" public welfare finance laboratory was established to provide public welfare financial services,
+with charitable trusts introduced in several branches. We accelerated the development of high-end wealth
+management for private banking customers, vigorously promoted asset allocation and insurance planning
+services based on our capabilities of investment and research, innovatively launched comprehensive capital
+market services, and proactively provided integrated services for families and enterprises, resulting in a rapid
+growth in agency sales of asset management products and family trust business.
+At the end of 2021, the number of our private banking customers reached 170 thousand and the balance of
+assets under management amounted to RMB1,846.5 billion.
+Annual Report 2021 41
+42
+Discussion and Analysis
+Treasury Operations
+The treasury operations of the Bank include money market activities and investment portfolio management. We
+adhered to serving the real economy and the transformation of the economy, and vigorously supported the green and
+low-carbon development. We flexibly adjusted investment strategies and strengthened flow operations on the basis of
+ensuring the security of bank-wide liquidity. Our investment return on assets remained at a relatively high level among
+the peers.
+•
+We strengthened our research on monetary policies and forecasts of market liquidity, comprehensively used
+various financial instruments such as placement and lending, repurchases, certificates of deposit and deposits
+to smoothen liquidity fluctuations and reasonably allocated maturing funds to improve the efficiency of fund
+utilization on the basis of ensuring the security of our liquidity.
+Retail Loans
+In 2021, our RMB-denominated financing transactions amounted to RMB53,038,597 million, including
+RMB52,400,030 million in lending and RMB638,567 million in borrowing.
+We deepened the digital transformation of credit cards. We improved instant card issuing mode and launched
+DIY functions for card number and card design. We rolled out new products such as the Winter Olympic card,
+the Constellation card, the private bank credit card (Yunzuan Version) and famous series cards, promoted
+preferential point exchange, point consumption, star membership and other services, built preferential scenes
+such as bus, subway and movie watching, and set up a business circle of preferential food. We continuously
+organized promotional activities of the brand of Jinsui credit cards such as Affectionate Companion, Auto
+Festival, and Home Decoration Festival and optimized installment products including Lefenyi, bill, automobile
+and home decoration, so as to improve customer experience and support consumption upgrade. The transaction
+volume of credit card for the year amounted to RMB2,276.29 billion.
+We focused on customers' concerns and served the people's livelihood. We continued to promote the
+comprehensive marketing service of "serving the market of rural areas", and provided rural customers with
+products such as rural revitalization card, Huinong wealth management, specialized Yinliduo and Huinong
+E-loan, so as to comprehensively improve the financial services for rural customers. We standardized the
+management of special wage accounts for rural migrant workers, enhanced the issuance of ABC Zhufu card
+and promoted the supervision platform of Gongxin Bao to effectively satisfy the needs of enterprises and rural
+migrant workers.
+|中国农业银行
+We developed broad wealth management to help customers with achieving wealth growth. Adhering to the
+strategy of selecting premium products, we strengthened cooperation with high-quality companies in wealth
+management, fund, insurance, precious metals and other industries to provide customers with more high-quality
+products. Focusing on the whole life cycle of customers, we provide them with "one-stop" and whole-process
+wealth management services to assist them in the preservation and appreciation of their wealth.
+Investment Portfolio Management
+We comprehensively promoted the digital RMB pilot project. We expanded scene-based projects related to public
+transportation, hospital payment, campus life, offline retail and other fields, with the number of pilot scenes and
+merchants ranking among top in the industry. We fully supported the opening and using of wallets via e-banking,
+mobile banking, branch outlets and portable smart terminals in pilot areas. We promoted the research and
+development of innovative products such as dual-offline digital wallet and intelligent contract, and realized the
+targeted distribution and use of government funds related to agriculture by using intelligent contract.
+Cross-border Financial Service
+We actively provided services to support the development of the export-oriented economy and high-quality opening
+up, and supported the Belt and Road Initiative, RMB internationalization and the establishment of pilot free trade zone
+and Hainan Free Trade Port, the transformation and upgrading of foreign trade and foreign investment. At the end
+of 2021, the total assets of our overseas branches and subsidiaries reached USD152.67 billion, and their net profit for
+2021 amounted to USD0.77 billion. In 2021, the volume of international settlement by domestic branches reached
+USD1,441.97 billion and the volume of international trade financing (including financing with domestic letters of
+credit) reached USD123,391 million.
+We steadily promoted the layout of overseas institutions. We established Dushanbe representative office in
+Tajikistan, and now have 22 overseas institutions and a joint-venture bank in 18 countries and regions, initially
+forming the cross-border financial service network covering major international and regional financial centers
+and countries (regions) with close bilateral exchanges.
+48
+AGRICULTURAL BANK OF CHINA
+Discussion and Analysis
+Transaction Banking
+We continued to improve the transaction banking system based on accounts and payment settlement. We
+comprehensively pushed forward the construction of the "Smart Payment+" platform, accelerated the layout of our
+online products, through which we promoted the high-quality development of our transaction banking business.
+We innovated the process of cross-branch collaboration in due diligence for the opening of corporate accounts
+and optimized account opening services to improve customer experience. At the end of 2021, we had
+8.9983 million corporate RMB-denominated settlement accounts.
+We promoted E-guarantee to implement the entire electronic process in terms of guarantees for the bidding and
+tendering of the public resources center. We expanded the service coverage of Gongxin Bao and realized online
+supervision on the wages of migrant rural workers. We enhanced our service for smart supervision to safeguard
+the capitals of major construction projects. We iteratively upgraded our smart guaranteed payment and refined it
+by industries and application scenes, to provide comprehensive financial service for multiple types of customers,
+such as E-commerce platform. At the end of 2021, we had 4.1627 million active transaction banking customers.
+Institutional Banking
+We promoted digital transformation to provide smart experience for customers. We implemented the strategies
+of technology guidance, data empowerment and digital operation, and made full use of "smart brain of retail
+business" and digital tools including "smart customer reception", "smart customer holding" and "digital
+person" to provide customers with products and services in a precise and smart manner.
+We promoted the construction of Smart Customer and continuously improved our comprehensive service capabilities
+in institutional banking business. At the end of 2021, we had 559.8 thousand institutional customers, representing an
+increase of 11.3% as compared to the end of the previous year.
+Regarding fiscal and social security, the special project for serving the integration of national fiscal budget
+management had covered 30 provinces, autonomous regions and municipalities. The number of customers with
+electronic certificates for medical insurance applied through our mobile banking channel exceeded 36 million.
+Regarding financial services for people's livelihood, we cooperated with over 30 thousand schools on our smart
+campus, and over 3,000 hospitals on our smart hospital.
+Regarding services to financial institutions, the contracted customers for third-party depository services
+amounted to 56.7526 million at the end of 2021, representing an increase of 7.9311 million as compared to the
+end of the previous year.
+Investment Banking
+Focusing on serving the real economy, we accelerated product innovation and continued to improve the "financing +
+financing intelligence" service solutions to meet the diversified financing needs of customers. In 2021, the income
+from our investment banking business was RMB9,385 million.
+We actively served the real economy. We were fully committed to serving the national strategies of rural
+revitalization and regional strategies such as Beijing-Tianjin-Hebei Region, Guangdong-Hong Kong-Macao
+Greater Bay Area, and Yangtze River Delta, assisted in achieving the goal of peak carbon emissions and carbon
+neutrality, and fully supported the development of new infrastructure, new urbanization initiatives and major
+projects. We met large financing needs of our customers and projects through syndicated loans, with the
+balance exceeding RMB1.8 trillion, maintaining our leading position in the market. We acted as a financial
+advisor in helping enterprises in M&A and restructuring, as well as in improving industrial structure, with our
+balance of M&A loans ranking among the top in the industry.
+Annual Report 2021 39
+Discussion and Analysis
+We promoted business innovation continuously. The Shenzhen Fund for Science and Technology Startups was
+set up, and a financial service model with multi-drivers of "stock option arrangement, fund for science and
+technology startups and loans for science and technology startups" was established. We underwrote all the
+six types of innovative bonds introduced by the National Association of Financial Market Institutional Investors
+(NAFMII), including the first batch of carbon neutrality bonds and the first batch of rural revitalization bonds in
+the market, demonstrating our leading role in the market.
+We continued to enhance our market influence. We won a total of 13 honors and awards, including, Best
+Syndicated Project Award by Hong Kong magazine The Asset, Market Innovation Award by National Interbank
+Funding Center, Best Bond Underwriter and Best Financial Bond Underwriter Excellence Bank Award by Wind
+Information.
+Retail Banking
+_
+In 2021, adhering to the customers-centered principle, we implemented the development strategy of one main
+body with two wings (namely, with customer construction as the main body, promoting broad wealth management
+and digital transformation as the two wings). We continued to enhance customer service capabilities, strengthened
+broad wealth management and digital transformation, and served rural revitalization, supported common
+prosperity, through which the capabilities of retail banking operation, business innovation and value creation were
+comprehensively improved. At the end of 2021, the total number of our retail banking customers reached 878 million.
+We strengthened customer construction by refining customer services. To satisfy customers' comprehensive
+financial needs, we improved our customer service system and the interests system, achieving unified
+classification and interests management for all retail banking customers. We provided targeted financial solutions
+for different customer groups based on the common characteristics of customers and the differentiated needs of
+major customer groups.
+Regarding financial services provided to governments, our coverage on cooperation with provincial-level service
+platforms and prefecture-level service platforms for government affairs reached 100% and 79%, respectively.
+We upgraded the convenient personal and corporate service functions of "iXiangyang" APP, and enriched
+pandemic prevention and control, rural revitalization and other special features. We promoted smart government
+affair to cover County Areas and empowered smart governance of County Areas.
+At 31 December 2021, our financial investments amounted to RMB8,230,043 million, representing an increase of
+RMB407,384 million or 5.2% as compared to the end of the previous year.
+In 100 million of RMB, except for percentages
+We maintained a leading position among the peers in respect of both the bond market-making business and the
+bond trading business in the inter-bank market, with our market share in bond trading increasing steadily. We
+proactively expanded the scale of market-making for green bonds to support green development. We focused
+on serving the opening-up of the bond market, and our market-making transaction volume of Bond Connect
+increased by 23.4% on a year-on-year basis.
+0
+0.00
+403 10,056.00
+405 10,779.13
+217 107,082.44
+217 108,854.39
+566 114,645.22
+568 117,140.30
+54
+54
+2,493.22
+2,493.22
+The amount of issuance includes the total amount of initial issuance of wealth management products and the total amount
+of subscription during the opening period of open-ended wealth management products; and the amount of maturity
+includes redemption and maturity amount of wealth management products during the reporting period.
+Annual Report 2021 43
+Discussion and Analysis
+The table below presents the balances of direct and indirect investment assets under the Bank's wealth
+management as of the date indicated.
+Item
+2 2,495.08
+Cash, deposits and interbank certificates of deposit
+Placements with and loans to banks and financial assets
+Debt securities
+Non-standardized debt assets
+Other assets
+Total
+We consolidated the foundation for the development of digital RMB. As one of the first batch of designated
+digital RMB operating institutions, we took the lead in successfully exchanging digital RMB in the production
+environment, built a core system of digital RMB, and promoted the deep integration of digital RMB into our
+traditional businesses.
+31 December 2021
+Percentage
+Amount
+(%)
+748.13
+28.8
+1,058.08
+40.7
+770.36
+held under resale agreements
+Trading Book Activities
+0 1,771.95
+Tranche Amount
+We continuously improved the management of bond trading portfolio. In 2021, as the yields of domestic bond
+market were range-bound with a downward trend, we dynamically adjusted the positions of portfolio following
+the market trend, and reasonably used certain derivatives to hedge risks.
+Banking Book Activities
+The quality and effectiveness of bond investment to serve the real economy continued to be enhanced. We
+maintained our investment in local government bonds and optimized the investment structure of credit bonds
+to support the national and regional strategies and local economic development. We supported infrastructure
+construction in electricity, transportation, energy and other sectors, and industries of the real economy such as
+public utilities, manufacturing, science and technology and consumption.
+We increased our investment in green bonds, focusing on key industries such as clean energy and green
+transportation to help in achieving the goals of peak carbon emissions and carbon neutrality.
+We reasonably seized the investment opportunities and dynamically adjusted the structures of investment
+portfolios by considering the market rate trend and profiles of bond supply, through which we reduced portfolio
+risks and achieved high returns.
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Asset Management
+Discussion and Analysis
+Wealth Management
+In 2021, by implementing a series of regulatory requirements under Guiding Opinions regarding Asset Management
+Business of Financial Institutions, we speeded up our net worth transformation and basically completed the
+rectification tasks of the transition period. At the end of 2021, the balance of the Group's wealth management
+products reached RMB2,072,533 million, of which RMB249,322 million was generated from the Bank and
+RMB1,823,211 million was generated from Agricultural Bank of China Wealth Management Co., Ltd.
+Wealth Management Products of the Bank
+At the end of 2021, the balance of wealth management products of the Bank amounted to RMB249,322 million.
+In terms of income type, the balance of principal guaranteed wealth management products amounted to RMBO,
+representing a decrease of RMB72,313 million as compared to the end of the previous year; the balance of
+non-principal guaranteed wealth management products amounted to RMB249,322 million, representing a decrease
+of RMB756,278 million. In terms of offering approach, the balance of publicly offered wealth management products
+reached RMB248,216 million, accounting for 99.6% of the total and representing a decrease of RMB814,738 million
+as compared to the end of the previous year; the balance of privately offered wealth management products amounted
+to RMB1,106 million, accounting for 0.4% of the total and representing a decrease of RMB13,853 million.
+723.13
+The table below presents the issuance, maturity and duration of our wealth management products during the
+reporting period.
+Principal guaranteed
+wealth management
+Non-principal guaranteed
+wealth management
+Total
+Note:
+In 100 million of RMB, except for tranches
+31 December 2020
+Tranche
+Issuance
+Maturity
+31 December 2021
+Amount
+Tranche Amount
+Tranche Amount
+Item
+Digital RMB
+AGRICULTURAL BANK OF CHINA
+High-frequency scene-based industry applications were innovated. In terms of campuses, we launched the K12
+smart campus application to provide financial and non-financial services. In terms of canteens, we rolled out
+the smart canteen App with the function of one-click sharing. In terms of government affairs, we launched a
+dedicated zone for government affairs on mobile banking and accelerated its alignment with administrative
+platforms of provinces and municipalities to extend financial services centering on "benefiting people,
+enterprises, farmers and government affairs". In terms of healthcare, we promoted electronic certificates for
+medical insurance and developed pilot mobile payment for medical insurance. In terms of travel, we built the
+"car owner service platform" to integrate the products, services, rights and interests related to the owner and
+realized "sharing and cooperation of external services and the seamless integration of bank products". In terms
+of daily life, we improved the interactive experience of mobile banking, simplified payment classification and
+optimized convenient payment service.
+51 307.43
+65 49,360.98
+8
+63.88
+316 18,232.11
+By nature of
+investment
+Fixed income
+135
+8,566.86
+Mixed
+Total
+81
+216
+931.28
+9,498.14
+128 55,410.14
+37 2,418.45
+165 57,828.59
+94.04
+57,828.59
+43 48,117.44
+22 1,243.54
+65 49,360.98
+96 2,179.14
+316 18,232.11
+Note:
+The amount of issuance includes the total amount of initial issuance of wealth management products and the total amount
+of subscription during the opening period of open-ended wealth management products; and the amount of maturity
+includes redemption and maturity amount of wealth management products during the reporting period.
+44
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Discussion and Analysis
+The table below presents the balances of direct and indirect investment assets under the wealth management of
+Agricultural Bank of China Wealth Management Co., Ltd. as of the date indicated.
+In 100 million of RMB, except for percentages
+31 December 2021
+Amount
+Percentage
+220 16,052.97
+Item
+16
+165
+216
+29.6
+22.11
+0.9
+2,598.68
+100.0
+Wealth Management Products of Agricultural Bank of China Wealth Management Co., Ltd.
+At the end of 2021, the balance of the wealth management products of Agricultural Bank of China Wealth
+Management Co., Ltd. amounted to RMB1,823,211 million. These wealth management products were all net worth
+ones, among which publicly offered wealth management products accounted for 99.6% while privately offered
+wealth management products accounted for 0.4%.
+The table below presents the issuance, maturity and duration of the wealth management products of Agricultural
+Bank of China Wealth Management Co., Ltd. during the reporting period.
+Product category
+By offering
+approach
+31 December 2020
+Tranche
+Issuance
+Amount
+Tranche Amount
+9,498.14
+Maturity
+Tranche Amount
+products
+173
+9,230.56
+149 57,734.55
+14 49,053.55
+In 100 million of RMB, except for tranches
+31 December 2021
+Tranche Amount
+308 18,168.23
+Privately offered
+products
+43
+We deepened the cooperation of open banking. We enriched our system of open banking products, realizing
+41 open banking products output in six categories including user authentication, account services, payment and
+settlement, investment and wealth management, financing services and information services. We consolidated
+foundation of our open banking platform by improving the outputs of API, H5, SDK and other interfaces and
+offering multi-channel accesses through APP, WeChat official account, applet and web page, so as to improve
+user experience and connecting efficiency of our partners.
+Total
+Publicly offered
+Cash, deposits and interbank certificates of deposit
+Placements with and loans to banks and financial assets
+267.58
+Debt securities
+Agency Insurance Business
+Our agency insurance premium reached RMB115.2 billion in 2021, maintaining a leading position among the peers.
+The agency regular insurance premium increased by 11.0% year-on-year, and the business structure continued to be
+optimized.
+Agency Distribution of Fund Products
+.
+We further deepened cooperation with high-quality companies, created the "Jiang Xin" series products brand
+and actively explored new service areas, through which our market competitiveness was significantly enhanced.
+In 2021, the number of funds distributed by the Bank amounted to 2,330, with sales volume amounting to
+RMB344,448 million.
+We launched the automatic investment plan zone for mobile banking, improved the comprehensive service
+system of mobile banking wealth management and optimized the smart customer service system of wealth
+management.
+Agency Sales of PRC Government Bonds
+In 2021, we, as an agent, distributed 18 tranches of savings PRC government bonds with the actual sales amount of
+RMB39,561 million, including 8 tranches of savings PRC government bonds (in certificate form) of RMB15,317 million
+and 10 tranches of savings PRC government bonds (in electronic form) of RMB24,244 million.
+Internet Finance
+We focused on creating an omni-channel, all-scenario, all-link online operation system, and comprehensively
+enhanced the value creation and market competitiveness of online channels.
+46
+| 中国农业银行
+Discussion and Analysis
+We continued to strengthen the construction of our online financial service platform and product innovation with
+mobile banking as the core, accelerated the iterative version upgrade of our mobile banking platform, and improved
+the intelligent and exclusive service capabilities of mobile banking.
+The level of intelligence was improved. We launched services such as details of revenue and expenditure and bank
+card management, and optimized functions such as asset and liability view and transfer inquiry. The wealth diagnosis
+and asset allocation services were upgraded to enhance our wealth management and credit financing services. The
+voice assistant service was launched and the function of intelligent search was optimized to improve our customers'
+interactive experience. We upgraded our online customer service by launching innovative video customer service. At
+the end of 2021, we had more than 150 million of monthly active users (MAU) of mobile banking.
+The "Rural Version" mobile banking was launched. We launched the "Rural Version" mobile banking based on
+the preference of customers in County Areas and added exclusive services such as Huinong wealth management
+and Huinong E-loan. We carried out special marketing activities with the theme of "Revitalizing Villages and
+Benefiting Rural People with Mobile Banking" and established an activity brand of "Huinong Service Day".
+The large font version of mobile banking was launched. Focusing on pain points of the elderly customers, we
+completed the transformation for accommodating the needs of elderly customers, which enlarged page display,
+simplified service function, optimized transaction process and provided one-click direct staff customer service.
+The multilingual services were enriched. We launched services in Tibetan and Uighur languages, which provided
+basic functions such as account inquiry and transaction details to meet the needs of financial services in ethnic
+minority areas.
+Online Corporate Banking
+The bank highlighted the two major functions of serving inclusive finance and Sannong, enhanced the three
+capabilities of foundation support, scenario services and open integration, and realized the comprehensive upgrade of
+online corporate banking.
+The Enterprise Platform Version 5.0 was released. We enhanced the capability of providing customized services,
+that we launched special editions of corporate e-banking for different customer groups, such as for payroll
+for rural migrant workers, for rural funds, resources and assets management, and for inquiry. We enriched
+and improved the functions of corporate mobile banking, that we released investment and financing service
+channels, and launched international business, e-bills and other functions. We also integrated and launched the
+Agricultural Bank of China Enterprise WeChat Bank.
+The "Salary Manager" was launched. We innovatively launched the "Salary Manager", an exclusive service
+platform, to provide one-stop digital management services such as human resources, salary and finance for
+payroll customers.
+The enterprise scene-based services were expanded. We developed solutions for supervising payroll for rural
+migrant workers and supervising rural funds, resources and assets. We established a third-party application market
+for our online corporate banking, introducing management tools including "Good Accountant" and "Yidaizhang".
+Annual Report 2021 47
+Discussion and Analysis
+Smart Scene-based Finance
+held under resale agreements
+The counter bond (Zhaishibao) business developed steadily, with our business scale maintaining a leading
+position in the market and the amount of counter distribution of bonds exceeding RMB30 billion in 2021. We
+actively served the opening-up of China's bond market. In 2021, the transaction volume of Bond Connect
+exceeded RMB600 billion, with our business scale maintaining a leading position in the market.
+We continued to improve exchange rate risk management services for customers by optimizing processes,
+innovating products and improving online service experience. In 2021, the transaction volume of foreign
+exchange sales and settlements as well as foreign exchange trading on behalf of customers amounted to
+USD476.9 billion, representing a year-on-year increase of 21.3%.
+Smart Mobile Banking
+Discussion and Analysis
+Non-standardized debt assets
+Treasury Transactions on Behalf of Customers
+Other assets
+Total
+Custody Service
+(%)
+8,432.30
+44.6
+578.40
+7,429.38
+39.3
+1,103.10
+5.8
+1,370.70
+3.1
+Precious Metals
+18,913.88
+100.0
+The number of initial offering of public funds under our custody reached a record high, and new breakthroughs
+were made in cooperation with leading fund companies. We achieved full coverage of central and local
+occupational annuity custodianship and successfully achieved several insurance and enterprise annuity
+custodianship projects, through which our market competitiveness was effectively improved.
+At the end of 2021, our assets under custody amounted to RMB12,454,663 million, representing an increase
+of 23.3% as compared to the end of the previous year, of which the pension funds under custody amounted
+to RMB941,572 million, representing an increase of 37.2% as compared to the end of the previous year. The
+income from custodian and other fiduciary service amounted to RMB3,832 million.
+Pension
+To proactively serve the national strategy of rigorously coping with aging population and contribute to the
+building of a multi-layered and multi-pillar social pension insurance system, we formulated an action plan of
+promoting high-quality development of pension financial services (2021-2023) to carry out the overall layout
+of pension financial services. The increase and growth rate of entrusted management customers of enterprise
+annuity both ranked first in the domestic banking industry. We were committed to providing annuity asset
+management services to various types of institutions including small and micro enterprises and individual
+customers, and our pension assets under entrusted management achieved steady appreciation.
+At the end of 2021, our pension funds under entrusted management' amounted to RMB170,897 million,
+representing an increase of RMB53,374 million, or 45.4%, as compared to the end of the previous year.
+Annual Report 2021 45
+In 2021, we traded 4,454.7 tons of gold and 51,980.01 tons of silver for our own account as well as on behalf
+of customers and maintained the leading position in the industry in terms of transaction volume.
+We steadily developed the precious metal leasing and lending businesses and strengthened the support for entity
+customers of the precious metal industry chain. We integrated ESG factors into the evaluation system of precious
+metal leasing customers, strengthened due diligence on green and low-carbon, and actively served green
+transformation enterprises. In 2021, we leased 32.15 tons of gold to enterprises on the "green mine" list of the
+Ministry of Natural Resources, equivalent to RMB11.854 billion.
+1
+7.2
+Including occupational annuity, enterprise annuity and other pension assets under entrusted management.
+Total
+Male
+Female
+Annual Report 2021 57
+Employees
+31 December 2021
+Number of
+Percentage
+(%)
+100.0
+55.1
+204,427
+44.9
+455,174
+Distribution of Employees by Gender
+Discussion and Analysis
+250,747
+100.0
+Total
+30.7
+31-40
+Information on Institutions
+41-50
+51 or above
+31 December 2021
+Number of
+Percentage
+Employees
+(%)
+87,633
+19.3
+105,613
+23.2
+121,928
+26.8
+140,000
+455,174
+At the end of 2021, we had 22,807 domestic branch outlets, including the Head Office, Business Department of the
+Head Office, three specialized institutions managed by the Head Office, four training institutes, 37 tier-1 branches
+(including five branches directly managed by the Head Office), 402 tier-2 branches (including business departments
+of branches in capital cities of provinces and business departments of provincial branches), 3,348 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), 18,961 foundation-level branch outlets and 50 other establishments.
+We had a total of 13 overseas branches and four overseas representative offices, including branches in Hong Kong,
+Singapore, Seoul, New York, Dubai International Financial Centre (DIFC), Tokyo, Frankfurt, Sydney, Luxemburg, Dubai,
+London, Macao and Hanoi, and representative offices in Vancouver, Taipei, Sao Paulo and Dushanbe. Besides, we had
+16 major controlled subsidiaries, including subsidiaries of integrated operation, overseas subsidiary banks and rural
+banks. Details referred to "Business Review Integrated Operation", "Business Review Cross-border Financial
+Service" and "County Area Banking Business Rural Banks" under "Discussion and Analysis".
+Total
+Head Office¹
+5,148
+22.6
+2,199
+9.6
+6,776
+29.7
+14.4
+22,807
+Note: 1.
+Organizations of the Head Office include the Head Office, Business Department of the Head Office, Private Banking
+Department, Credit Card Centre, Bills Business Department, Beijing Advanced-Level Training Institute, Tianjin Financial
+Training Institute, Changchun Financial Training Institute and Wuhan Financial Training Institute.
+58
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+30 or below
+100.0
+3,281
+10.5
+2,384
+Yangtze River Delta
+Pearl River Delta
+Bohai Rim
+Central China
+Northeastern China
+Western China
+31 December 2021
+Number of
+Domestic
+Branch
+Percentage
+Outlets
+(%)
+9
+3,010
+13.2
+Number of Domestic Branch Outlets by Regions
+Distribution of Employees by Age
+Strengthening Cyber Security Protection System
+100.0
+The transaction volume of production and operation grew rapidly, with the daily average transactions handled by
+the core system reaching 1,020 million, representing a year-on-year increase of 22.0%; the daily transaction peak
+volume reached 1,278 million. The availability rate during major business hours of the core system was 99.99%.
+We fully launched the integrated production, operation and maintenance platform, established the closed-loop
+of "monitoring-management-operation-allocation-analysis" linkage, and the instrumentalization and automation
+level of production, operation and maintenance was greatly improved.
+Disaster recovery drills were carried out. We implemented the remote switching drill of the core system cross-
+data center, completed the batch remote operation drill in three stages, and comprehensively inspected the
+batch and online transaction operation capabilities of Beijing, greatly improving the guarantee capability of
+round-the-clock business continuity.
+The construction of disaster recovery was promoted. 22 systems/modules such as quick payment system,
+personal mobile banking and personal online banking completed local dual-active construction, and online retail
+business was comprehensively dual-active; 154 systems/modules completed deployment for local or remote
+disaster recovery, and system data backup met regulatory requirements.
+We focused on constructing a disaster recovery system, improved the high availability of local dual-active and the
+take-over scope of the remote disaster recovery business, improved the coverage and complexity of emergency drills,
+and comprehensively improved the guarantee level of business continuity.
+Improving the Level of Guarantee of Our Business Continuity
+Discussion and Analysis
+Annual Report 2021 53
+Regarding the application of 5G technology, we launched pilot for 5G messaging application, through which
+customers can conduct credit cards application, daily life payment, financial product purchase and other services
+through the SMS entry, providing the brand new experience.
+Regarding the application of network technology, we strengthened the deployment of IPv6. Based on the IPv6
+section routing technology, we completed the optimization and upgrade of the backbone network structure of
+all branches.
+Regarding the application of information security technology, we persistently promoted the construction of the
+new generation of enterprise-level network information Security Operation Center (SOC), and completed the
+deployment in the Head Office and four pilot branches. We optimized the automation of security technology
+defense system, achieving an automatic monitoring rate of cyber security alarm of 100%, and an automated
+disposal rate over 97%.
+Regarding the application of block chain technology, we promoted the construction of BaaS (Blockchain as
+a Service) system, launched support services such as intelligent research and development, typical scenarios
+template, output block chain product view, and applied block chain technology to pension management, credit
+risk control and other fields.
+Regarding the application of distributed architecture, we promoted the transformation of core system to
+distributed architecture, and the distributed core system accounted for 62% of the trading volume on peak
+trading day.
+Regarding the application of Al technology, we constructed a knowledge graph network of ten-billion-level
+relationship to provide graph support for chain marketing and the special governance of telecom fraud,
+promoted the pilot of privacy computing technology in marketing, risk control and other fields, applied edge Al
+technology to serve smart branches, and applied satellite remote sensing and image recognition technology to
+serve the credit management of Sannong. We promoted the construction of smart mobile banking, including
+releasing five milestone versions of mobile banking, and completing the basic infrastructure upgrade.
+Regarding the application of cloud computing technology, we promoted the construction of an integrated cloud
+platform and initially built the basic environment for technology stack of "one cloud with multiple cores". The
+physical nodes of the cloud platform of the Head Office reached 11,000. All new production and test resources
+were integrated into the cloud platform, the self-service rate of development and test resources was 100%, and
+the cloudification rate reached 88%.
+Regarding the application of Big Data technology, we promoted in-depth data integration and common data
+accumulation, and the big data platform provided one-stop exclusive data services. At the end of 2021, the total
+data exceeded 19PB.
+The Bank set up a FinTech innovation center in Xiong'an New Area and built an innovation incubation center and a
+pilot field for innovation achievements. We strengthened the construction of basic capabilities of financial technology,
+deepened the application of FinTech, and empowered the high-quality development of business operations.
+Focusing on FinTech Innovation
+During the reporting period, we continued to deepen the application of frontier technologies related to FinTech,
+further promoted the implementation of our "ABC" strategy in information technology, and continued to improve
+the scientific and technological support and empowerment level. Mr. XU Han, Vice President of the Bank, was
+appointed as Chief Information Officer of the Bank. In 2021, the total investment in information technology
+amounted to RMB20,532 million.
+We set up a network security operation center (secondary department) in data center. We carried out network security
+attack and defense technology capacity building, and implemented integrated security operation and protection of the
+Group.
+We established an "attack and defense" mechanism, and carried out regular drills to improve the practical ability
+of cyberattack and defense.
+We strengthened the governance and control of cyber security vulnerabilities, reducing the number of basic
+software and hardware vulnerabilities by 58%, and controlling 100% of service domain and channel domain
+vulnerabilities.
+54
+Please refer to "Corporate Governance Report Operation of Corporate Governance Board of Directors" for
+the composition and authority of the nomination and remuneration committee of the Board of Directors. Please
+refer to "Note IV. 31 Other Liabilities (1) Staff costs payable and 6. Operating Expenses (1) Staff costs to the
+Consolidated Financial Statements" for the total annual remuneration and the remuneration distribution structure.
+Please refer to "Corporate Governance Report - Directors, Supervisors and Senior Management Remuneration of
+Directors, Supervisors and Senior Management" for details of the remuneration of the Board of Directors, the senior
+management and employees on positions that have a significant impact on the risks of the Bank.
+-
+Discussion and Analysis
+56
+Annual Report 2021 55
+We continued to deepen the reform of the remuneration allocation mechanism, optimize resource allocation and
+improve internal allocation structure, taking into account both efficiency and fairness. We promoted targeted
+incentives and enhanced compliance management. Our remuneration allocation strengthened incentives
+for strategy implementation, reforms in key areas, development of major businesses and profit-generating
+institutions, and encouraged value creation and high-quality development. At the same time, Our remuneration
+allocation prioritized the frontline staffs at foundation-level branch outlets, consolidated our achievements
+in poverty alleviation, and supported rural revitalization. We continued to improve the long-term incentives
+and constraints through preferential incentives for key positions, skeleton talents and professional talents, to
+effectively promote the Bank-wide talent development.
+Our employee remuneration policy was applied to all contracted employees. The employee remuneration
+primarily comprised basic salary, position salary and performance salary, which was linked to position value,
+employee performance assessment results, etc.
+The total remuneration allocated to institutions at all levels under the Bank was determined based on their
+operating efficiency, performance assessment result and completion status of key tasks according to our
+management system for total remuneration. Performance assessment indicators included efficiency, risk and
+other sustainable development indicators, which comprehensively reflected their long-term performance and risk
+profiles.
+During the reporting period, we formulated and adjusted our remuneration policy in strict compliance with relevant
+laws, regulatory requirements and corporate governance requirements of the Bank. Our overall remuneration level
+was determined by factors including the efficiency of the Bank, and the total annual remuneration was reviewed
+and approved by the Board of Directors of the Bank, as required by relevant national regulations. We formulated the
+annual remuneration plan in strict compliance with regulatory requirements and corporate governance requirements,
+according to which we managed and allocated the total remuneration of institutions at all levels under the Bank and
+remuneration of employees.
+FinTech
+Management of Remuneration
+We optimized the risk management functional system in key fields such as credit risk and market risk to
+strengthen the overall management capability of special risks. We set up a network security operation center to
+improve the network security risk control level of the Bank.
+We established a FinTech innovation center in Xiong'an New Area to carry out research and application
+promotion in the FinTech's frontier fields. We set up a digital RMB office to strengthen professional capability
+of digital RMB research and development and application. We optimized the establishment of digital risk control
+center to enhance the sustainable operation capability of online credit products of the Bank.
+We set up rural revitalization finance departments at the head office, branches and sub-branches to enrich the
+functions of financial services on rural revitalization.
+During the reporting period, the Bank continued to innovate its organizational structure based on the strategies of
+serving rural revitalization, promoting digital transformation and preventing and mitigating financial risk.
+Human Resources and Institutional Reform
+Human Resources Management and Institution Management
+Discussion and Analysis
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+We strengthened and refined the establishment of consumer rights and interests protection organizations, and
+set up a Consumer Rights and Interests Protection Department (secondary department), so as to accelerate the
+implementation of the Personal Information Protection Law in the Bank.
+Discussion and Analysis
+AGRICULTURAL BANK OF CHINA
+|中国农业银行
+50
+ABC International Holdings Limited maintained its leading position among its comparable peers in terms of core
+indicators of investment banking business. In 2021, it completed 4 IPO sponsorship projects and 22 underwriting
+projects, ranking 5th among all domestic and foreign investment banks in Hong Kong SAR in terms of the number
+of underwriting. It participated in 5 of the top 10 Hong Kong IPO projects in terms of fundraising size, basically
+covering the leading enterprises in which the Chinese concept stocks returned to the Hong Kong market for listing. It
+completed 98 overseas bond issuance, reaching its highest record in terms of the number of underwriting.
+ABC International Holdings Limited was established in Hong Kong SAR in November 2009 with a share capital of
+HKD4,113 million, 100% of which was held by the Bank. ABC International Holdings Limited is eligible to engage in
+providing comprehensive and integrated financial services in Hong Kong SAR, including sponsor and underwriter for
+listing, issuance and underwriting of bonds, financial consultation, asset management, direct investment, institutional
+sales, securities brokerage and securities consultation, and is also eligible to engage in businesses in Chinese mainland,
+including private fund management, financial consultation and investment. At 31 December 2021, its total assets
+and net assets amounted to HKD46,075 million and HKD11,113 million, respectively. It recorded a net profit of
+HKD1,023 million for 2021.
+ABC International Holdings Limited
+ABC-CA continuously improved the layout of its products, enhanced its investment and research capacity,
+consolidated the foundation of risk control and compliance management, with its asset management structure
+continuously optimized, and its profitability significantly enhanced. At the end of the reporting period, it had 66
+publicly offered funds and 92 privately offered funds. The scale of the publicly offered fund reached RMB205.6 billion,
+including RMB74.3 billion of equity funds, representing an increase 54% as compared to the end of the previous
+year. Its investment performance remained the leading position in the market and the annual yield rate of equity
+funds was 31.24%, ranking 8th among 149 fund companies. It has successively won three awards: "Golden Bull Fund
+Management Company" by China Securities Journal, "Star Fund Company Growth Award" by Securities Times, and
+"Golden Fund TOP Company Award" by Shanghai Securities News.
+ABC-CA Fund Management Co., Ltd. was established in March 2008 with a registered capital of RMB1.75 billion,
+51.67% of which was held by the Bank. Its businesses include fund-raising, sales of fund and asset management and
+its major fund products include stock funds, mixed funds, index funds, bond funds, monetary funds and FOF funds. At
+31 December 2021, its total assets and net assets amounted to RMB4,438 million and RMB4,043 million, respectively.
+It recorded a net profit of RMB648 million for 2021.
+ABC-CA Fund Management Co., Ltd.
+Integrated Operation
+Discussion and Analysis
+|中国农业银行
+Annual Report 2021 49
+Agricultural Bank of China (Moscow) Limited is a wholly-owned subsidiary of the Bank incorporated in Russia, with a
+registered capital of RUB7,556 million. Its scope of business includes wholesale banking business such as international
+settlement, corporate deposits, syndicated loans, bilateral loans, trade financing and foreign exchange trading.
+At the end of 2021, the total assets and net assets of Agricultural Bank of China (Moscow) Limited amounted to
+USD157 million and USD112 million, respectively.
+Agricultural Bank of China (Luxembourg) Limited is a wholly-owned subsidiary of the Bank incorporated in Luxembourg,
+with a registered capital of EUR20 million. Its scope of business includes wholesale banking business such as
+international settlement, corporate deposits, syndicated loans, bilateral loans, trade financing and foreign exchange
+trading. At the end of 2021, the total assets and net assets of Agricultural Bank of China (Luxembourg) Limited
+accounted to USD47 million and USD25 million, respectively. It recorded a net profit of USD1.39 million for 2021.
+Agricultural Bank of China (Moscow) Limited
+Agricultural Bank of China (Luxembourg) Limited
+Overseas Subsidiary Banks
+The cross-border RMB business achieved rapid development, with a total volume of RMB2.11 trillion in 2021.
+Actively playing its role as an RMB clearing bank, Dubai Branch handled RMB clearing business amounting to
+RMB35.8 billion in 2021.
+We supported the development of Hainan Free Trade Port. As the global strategic partner of the first China
+International Consumer Products Expo, we successfully held the "Forum on Serving Hainan Free Trade Port and
+Cross-border Finance". In 2021, the Hainan Free Trade Port accounts featuring separate accounting increased by
+1,599, representing a year-on-year increase of 180.9%.
+We supported the Belt and Road Initiative and enterprises' financial demands of "going global". Responding
+to the foreign trade situation, the customer demands and new development pattern of "double cycle", we
+effectively marketed and provided services for "going global" projects, focusing on the support for overseas
+project contracting and equipment export by Chinese enterprises. In 2021, the volume of loans, letters of
+guarantee and overseas bond issuance related to enterprises "going global" amounted to USD52,166 million,
+among others, businesses in countries along the Belt and Road Initiative amounted to USD3,216 million.
+We optimized our cross-border integrated financial service system. We implemented integrated operation of
+RMB and foreign currency businesses to enhance our cross-border financial service. We accelerated product
+innovation and digital transformation, and supported trade facilitation and development of new business
+models. Online brands for cross-border businesses, such as ABC Cross-border E-Remittance, ABC Cross-border
+E-Certificate and ABC Cross-border E-Finance, were built up with our further enhanced customer service
+capabilities.
+Discussion and Analysis
+In addition, we own Agricultural Bank of China (UK) Limited in the United Kingdom, with a share capital of
+USD100 million. According to our overseas business development strategy, after the opening of the London branch of
+the Bank, the financial license of Agricultural Bank of China (UK) Limited was revoked, and we have been undertaking
+the procedures needed to dissolve Agricultural Bank of China (UK) Limited.
+Information on Employees
+AGRICULTURAL BANK OF CHINA
+ABC Financial Leasing Co., Ltd.
+Besides, we own Agricultural Finance Co., Ltd. in Hong Kong SAR, with a share capital of HKD589 million, 100% of
+which is held by the Bank.
+Constantly improving its risk management. It continued to improve the embedded risk management and control
+mechanism applying to all types of products and processes, comprehensively improved its capability of credit rating
+and refined its market risk management and control system, and enhanced quantitative evaluation of regional risk.
+Empowering its business development by technology and backstage. It completed the launch of the new-
+generation asset management platform (A+) system and the switch of back office systems such as the
+accounting system for wealth management product, which realized the flow-oriented, integrated and systematic
+management and control, and formed a background supporting system for high-quality development of its
+wealth management business.
+Featured products were well developed. It continued to enrich its "6+N" product system. It strengthened the
+supporting role of six major wealth management products including cash management, fixed income, hybrid
+investment, equity, commodity and foreign exchange derivatives and alternative investments, and improved rural
+revitalization products benefiting farmers, FOF products and other featured products.
+Steadily improving its research and investment capabilities. It established a research system covering macro
+strategy, industry, equity, fund and quantification, improving the research framework of macro strategy, basically
+realizing the full coverage of primary industries, and strengthening the supporting of quantitative and fund
+research on investment.
+ABC Wealth Management steadily promoted the transformation and development of wealth management business
+in accordance with the requirements of the new asset management regulations, and its brand influence and product
+awareness were continuously improved. In 2021, it won 15 major awards, such as Excellent Wealth Management
+Subsidiary in 2021, Golden Bull Innovation Award for Wealth Management Companies of Banks, and Excellent Wealth
+Management Institution of Banks of the Year held by media such as 21st Century Economic Report, China Securities
+Journal, and the Economic Observer.
+Agricultural Bank of China Wealth Management Co., Ltd. was established in July 2019 with a registered capital
+of RMB12.0 billion, 100% of which was held by the Bank. Its principal scope of business includes public offering
+of wealth management products to the general public, investment and management of the above properties
+entrusted by the investors; private placement of wealth management products to qualified investors, investment and
+management of the above properties entrusted by the investors; wealth management advisory and consulting services;
+and other businesses approved by the CBIRC. At 31 December 2021, its total assets and net assets amounted to
+RMB15,238 million and RMB15,061 million, respectively. It recorded a net profit of RMB1,721 million for 2021.
+Agricultural Bank of China Wealth Management Co., Ltd.
+ABC Financial Asset Investment served the supply-side structural reform and the high-quality development of the
+economy, focused on its major business of market-oriented debt-to-equity swaps, and made important arrangements
+in the fields such as rural revitalization, green and clean energy, scientific and technological innovation, and risk
+mitigation of distressed assets, through which it achieved positive results. At the end of 2021, it completed a
+total of 214 debt-to-equity swap projects cumulatively, amounting to RMB260.0 billion. It held a leading position
+among comparable peers both in terms of the cumulative number and the amount of completed debt-to-equity
+swap projects.
+Discussion and Analysis
+Discussion and Analysis
+52
+In order to be consistent with the Group's disclosure standards, the data is in accordance with the new financial instrument
+standard (IFRS 9), which is different from the data is in accordance with the financial instrument standard (IAS 39) currently
+adopted by the insurance industry.
+1
+The registered capital of ABC Financial Asset Investment Co., Ltd. was RMB20.0 billion, 100% of which was held
+by the Bank. Its principal scope of business includes focusing on debt-to-equity and ancillary supporting business,
+conducting fund raising from qualified public investors for debt-to-equity in accordance with relevant laws and
+regulations, issuance of financial bonds for debt-to-equity, as well as other businesses as approved by the CBIRC.
+At 31 December 2021, its total assets and net assets amounted to RMB120,185 million and RMB24,719 million,
+respectively. It recorded a net profit of RMB2,805 million for 2021.
+ABC Financial Asset Investment Co., Ltd.
+The business scale of ABC Life Insurance grew steadily, the business value continuously increased, and its high-
+quality development showed a good trend. In 2021, the total premium income of ABC Life Insurance reached
+RMB30,118 million, representing a year-on-year increase of 11.32%. It was awarded seven honors including the
+Class A in the Evaluation of Business Operation of Insurance Companies for 2020 by the IAC, the 2021 Best Value
+Transformation Life Insurance Company by Financial Times and the 2021 High Quality Development Insurance
+Company Award by hexun.com.
+The registered capital of ABC Life Insurance Co., Ltd. was RMB2.95 billion, 51% of which was held by the Bank.
+Its principal scope of business includes various types of personal insurance such as life insurance, health insurance
+and accident insurance; reinsurance business for the abovementioned businesses; businesses with the application of
+insurance funds as permitted by the laws and regulations of the PRC; and other businesses approved by the CBIRC.
+At 31 December 2021, its total assets and net assets amounted to RMB125,579 million and RMB8,735 million,
+respectively. It recorded a net profit¹ of RMB884 million for 2021.
+ABC Life Insurance Co., Ltd.
+Closely focusing on serving Sannong and County Areas, the national strategy and the real economy, ABC Financial
+Leasing Co., Ltd. adhered to the risk limitations, and insisted on professional operation, and its business development
+has stepped onto a new level. At the end of 2021, the balance of its leasing assets amounted to RMB75,503 million,
+increased by 22.1% as compared to the end of the previous year. With its distinctive features of green leasing and
+focus on clean energy, green transportation, energy-saving and environmental protections, the proportion of green
+leasing in its annual investment accounted for 80.88%.
+ABC Financial Leasing Co., Ltd. was established in September 2010 with a registered capital of RMB9.5 billion, 100%
+of which was held by the Bank. Its principal scope of business includes financial leasing, transfer and acceptance
+of financial leasing assets, fixed-income securities investment business, acceptance of leasing deposits from
+lessees, absorbing time deposit with a maturity of three months or above from non-bank shareholders, inter-bank
+lending, borrowing from financial institutions, overseas borrowings, selling and disposal of leased items, economic
+consultation, establishment of project companies in domestic bonded zones to carry out financial leasing business,
+provision of guarantee for external financing of controlled subsidiaries and project companies, and other businesses
+approved by the CBIRC. At 31 December 2021, its total assets and net assets amounted to RMB76,742 million and
+RMB10,424 million, respectively. It recorded a net profit of RMB464 million for 2021.
+Annual Report 2021 51
+Note: The number of risk management, finance, administration, sales/marketing, trading, information technology employees did
+not include the management in related departments.
+We had a total of 455,174 in-service employees at the end of 2021. Among them, 726 employees were employed
+by our overseas branches, subsidiary banks and representative offices, and 8,945 employees were employed by the
+subsidiaries of integrated operations and the rural banks.
+31 December 2021
+Number of
+Technicians
+Tellers/Counter Staff
+Information Technology
+Trading
+Sales/Marketing
+Administration
+Risk Management
+Finance
+Management
+Employees
+31 December 2021
+Number of Percentage
+Distribution of Employees by Departments
+Discussion and Analysis
+100.0
+455,174
+6.8
+31,103
+30.3
+137,757
+55.2
+Others
+Total
+(%)
+120,497
+455,174
+6.9
+31,795
+5.5
+24,831
+16.3
+74,281
+2.0
+9,059
+251,405
+0.1
+31.4
+143,014
+3.6
+16,540
+4.2
+18,890
+3.5
+15,853
+26.5
+414
+7.6
+34,341
+0.1
+42,937
+Northeastern China
+20.6
+93,521
+14.2
+64,785
+11.0
+50,032
+13.9
+9.4
+63,390
+12,763
+Central China
+Bohai Rim
+Pearl River Delta
+Yangtze River Delta
+Head Office
+(%)
+Employees
+Percentage
+2.8
+Distribution of Employees by Regions
+Western China
+25.9
+568
+(%)
+Employees
+31 December 2021
+Number of Percentage
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+Total
+Below College
+College and Vocational School
+118,075
+Bachelor's Degree
+Doctorate Degree
+Distribution of Employees by Education Background
+100.0
+455,174
+2.0
+8,945
+0.2
+726
+Overseas Branches, Subsidiaries and Representative Offices
+Subsidiaries with Integrated Operations and Rural Banks
+Total
+Master's Degree
+We have established an integrated operation platform covering fund management, securities and investment banking,
+financial leasing, life insurance, debt-to-equity swap and wealth management businesses. In 2021, our six subsidiaries of
+integrated operation (namely ABC-CA Fund Management Co., Ltd., ABC International Holdings Limited, ABC Financial
+Leasing Co., Ltd., ABC Life Insurance Co., Ltd., ABC Financial Asset Investment Co., Ltd. and Agricultural Bank of China
+Wealth Management Co., Ltd.) focused on the Group's overall development strategy, continued to perfect the corporate
+governance, strengthened risk prevention and control, and deepened the synergies of the bank and subsidiaries, with
+their continuously improved business performance and ability of value creation and serving the Group.
+Management Structure and Management Mechanism
+Risk Management of Corporate Banking Business
+Loan Risk Classification
+We refined the risk management measures for treasury business and improved the whole-process risk management
+mechanism and the management of credit bonds before, during and after investment. We monitored constantly the
+risk profiles of credit customers and counterparties in relation to our existing treasury business, updated the list of
+existing credit customers that required special attention in a timely manner and dynamically adjusted the measures to
+address risks. We monitored the transaction prices related to financial market business and continued to establish the
+unified platform for management of market risk exposure limits. We strictly implemented the compliance requirements
+of anti-money laundering, improved the mechanism for financial consumer interests protection and customer
+complaints handling. We promoted the level of products online and risk control and the third phase construction
+of the global platform project. We improved the Group-level integrated system of risk monitoring and reporting for
+treasury business and established the monthly risk reporting and sharing mechanism of the subsidiaries and overseas
+branches for treasury business.
+Risk Management of Treasury Business
+Adhering to a prudent risk appetite, we continued to promote the construction of an intelligent, differentiated,
+intensive and integrated credit card smart risk control system. At the pre-loan stage, we strengthened precise credit
+granting, deepened differentiated management of regions, products and customer groups, and improved the anti-
+fraud business system for credit access to effectively control incremental risks. At the loan-processing stage, we
+strengthened system support, consolidated the foundation for risk management and control, and strengthened early
+identification of risks to effectively manage and control existing risk exposures. At the post-disbursement stage, we
+improved the integrated collection system, continued to promote write-offs and asset securitization, and improved
+the effectiveness of collection and disposal. The quality of credit card assets continued to be at the forefront of the
+industry.
+Risk Management of Credit Card Business
+We carried out the assessment, evaluation and data analysis of the Bank's centralized operation center for retail
+loans, and promoted the refined management of the centralized operation center for retail loans. We promoted the
+connection between the retail credit business and the real estate registration system, and took advantage of online
+processing to improve the level of collateral management. We carried out asset quality management in the dimension
+of customer managers, and improved the compliance operation level of customer managers. We promoted the digital
+transformation of personal loan business, optimized and improved the system functions of personal loan use control
+and anti-fraud, and continuously improved the capability of smart risk control on personal loan. We strengthened
+overdue loan collection management and write-offs, accelerated disposal of retail non-performing assets, with the
+quality of personal loan assets continuously improved.
+Risk Management of Retail Banking Business
+Discussion and Analysis
+AGRICULTURAL BANK OF CHINA
+We formulated and refined the loan risk classification management policies in accordance with the Guidelines of Loan
+Credit Risk Classification issued by the CBIRC. We comprehensively assessed the recoverability of loans when due and
+classified the loans by taking into account of factors including the borrower's repayment ability, repayment record,
+willingness to repay the loan, profitability of the loan project, and the reliability of secondary repayment sources.
+| 中国农业银行
+We improved the credit risk management system for Internet loans. We issued the Measures for Administration
+of Internet Loans, improved the management mechanism for cooperation institutions of Internet loan business,
+optimized the design of Internet loan products, and strengthened the risk management of key products.
+We strengthened credit risk management in key areas. We maintained the control of energy-intensive and high-
+polluting industries, adhered to the principle of "ensuring the development of certain areas while restricting the
+growth of others" and "supporting the development of certain areas while containing the development of others".
+We satisfied rational financing needs of the coal power, steel, non-ferrous metals and other manufacturers of energy-
+intensive and high-pollution industries, and would not blindly withdraw or cut off loans. We firmly reduced or cut
+off loans granted to energy-intensive and high-polluting customers which cannot meet or rectify to comply with the
+energy consumption and emissions standards. Adhering to the positioning of "houses are built to be inhabited, not
+for speculation", we implemented the requirements for prudent management of real estate financing, strengthened
+the management of real estate loans, focused on supporting the construction of affordable housing, rental housing
+and ordinary commercial housing, satisfied the reasonable financing needs of the real estate market, and maintained
+a basically stable concentration rate of real estate loans. We steadily provided financial services to "guarantee the
+delivery of property, people's livelihood and stability", and actively promoted the risk mitigation and disposal of real
+estate enterprises through measures such as project mergers and acquisitions, so as to promote the virtuous cycle and
+healthy development of the real estate industry.
+We refined the credit policy system. We formulated comprehensive policies such as the annual credit policy and
+County Area Banking and Inclusive Finance credit policy. We formulated or revised the credit policies for computer
+manufacturing, air transportation, education, photovoltaic, liquor and other industries. We formulated differentiated
+regional credit policies, and promoted refined portfolio management.
+The structure of our credit risk management mainly comprises the Board of Directors and its Risk Management and
+Consumers' Interests Protection Committee, the senior management and its Risk Management and Internal Control
+Committee, Credit Approval Committee, Asset Disposal Committee, as well as Credit Management Department,
+Credit Approval Department, Risk Management Department and various front offices, forming a credit risk
+management structure characterized with centralized and unified management and multi-level authorization.
+Credit Risk Management Structure
+In 2021, we implemented the state macro-control policies, improved the establishment of credit risk management
+system, strengthened the risk prevention and control in key areas, and diversified the channels for collection and
+disposal of non-performing loans, thus maintaining our assets quality stable.
+Credit Risk Management
+Credit risk is the risk of economic loss arising from the failure of a counterparty to fulfill its obligations to perform
+contractual liabilities. The Bank's credit risk is primarily originated from loan portfolios, investment portfolios,
+guarantee business and various other on- and off-balance sheet credit risk exposures.
+Credit Risk
+We strengthened post-loan management and the collection and disposal of non-performing assets. We strengthened
+the management of special mention loans, enhanced risk monitoring, and effectively reduced the risk of deterioration
+of special mention loans. We conducted deferred loan risk management properly. We strengthened the credit risk
+monitoring of group customers with large loan balance, and actively and steadily promoted the risk mitigation of large
+amount customers. We strengthened the disposal of non-performing loans. We carried out the disposal strategies of
+more collection, more write-offs, more restructuring and prudent transfer in batches, and strengthened the disposal of
+loans in large amount.
+We adopted two classification management systems for loans, being the five-category classification system and the
+12-category classification system. Corporate loans were mainly managed with 12-category classification system. We
+conducted comprehensive evaluations of customer default risk and debt transaction risk to objectively reflect the
+risk level of loans. The evaluations were made with more details in preparing the annual classification policies at the
+beginning of every year to specify the requirements for classification standards and management of loans to core
+corporate customers and thus improving the foreseeability and sensitivity of risk identification. Retail loans were
+managed with the five-category classification system which automatically classified risks mainly based on the length
+of period by which payments of principal or interest were overdue and the types of collaterals, allowing for a more
+Annual Report 2021 67
+68
+13.2
+2,269,076
+Loans secured by pledges
+46.1
+6,978,616
+46.5
+7,963,577
+Loans secured by mortgages
+(%)
+Amount
+(%)
+Amount
+Item
+Percentage
+Percentage
+31 December 2020
+31 December 2021
+In millions of RMB, except for percentages
+Distribution of Loans by Collaterals
+objective risk assessment. Large retail loans to private businesses were classified manually on a quarterly basis to
+enhance risk sensitivity. In addition, the classification was timely adjusted based on the risk information collected in
+the credit management to reflect loan quality objectively.
+Discussion and Analysis
+Discussion and Analysis
+66
+Annual Report 2021 65
+In 2021, in light of the complex economic and financial situation, we comprehensively analyzed various risk profiles,
+carefully studied trends of policies, market and technology development, strengthened forward-looking analysis of the
+risk profile, enhanced the risk analysis of key regions, industries, customers and businesses, identified risk factors, and
+formulated targeted suggestions on management and control.
+1.55
+4.63
+4.45
+2020
+2021
+Unit: %
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+64
+Allowance to loan ratio
+Allowance to non-performing loans
+Non-performing loan ratio
+Loan-to-deposit ratio
+Item
+Net fee and commission income to operating income
+Cost-to-income ratio
+Average cost of deposits
+Average yield of loans
+Item
+Key Financial Indicators of the County Area Banking Business
+Interest income from intra-bank balance represents the interest income earned on funds provided by the County
+Area Banking Business to other business segments of the Bank through internal funds transfer pricing, which is
+determined based on the market interest rate.
+Note: 1.
+1.46
+2,292,233
+10.49
+34.51
+Risk Analysis Report
+In 2021, we continued to refine our risk management policies system. In terms of comprehensive risk management,
+we revised the Group's risk appetite and comprehensive risk management strategy. In terms of credit risk
+management, we revised the credit management measures for corporate customers and group customers,
+formulated the management measures for Internet loans, to improve the credit policies system. In terms of market
+risk management, we formulated opinions on strengthening risk management of financial derivatives business.
+In terms of operational risk management, we revised the basic policies for operational risk management, set up
+rules for separation of duties of incompatible positions; revised the basic policies for compliance management,
+inspection management measures, and internal control evaluation measures. In terms of other individual risks, we
+formulated measures for model risk management and implementation rules for model life cycle management; revised
+measures for reputation risk management, and formulated measures for financial service management in response to
+emergencies, country risk management and control strategy and opinions on strengthening legal risk management of
+subsidiaries. We updated risk management policies for non-retail customer ratings, asset risk classification, industrial
+credit limits, capital transaction and market risks, inter-bank and agency distribution business as well as information
+technology, and performed risk management on a daily basis.
+Risk Management Rules System
+For details of risk governance, please refer to "Corporate Governance Report - Risk Governance".
+Under the complex and challenging risk situation in 2021, we continued to improve the comprehensive risk
+management system and steadily enhance all risk management work to ensure pertinent and effective risk
+management. We continued to strengthen risk investigation and evaluation at the group level, and enhance risk
+management of overseas branches and subsidiaries. We strengthened the management of credit risk in the whole
+bank, and implemented the system of credit principal responsible person system. We strengthened the internal rating
+management of credit risk, and enhanced the risk management of online credit business. We promoted the integrated
+market risk management and control at group level, improved the market risk measurement and limit control
+system, and strengthened the penetrating management of underlying assets in market businesses. We consolidated
+the foundation of case and operational risk management, strengthened information technology risk management,
+and improved business continuity risk management framework. We strengthened data governance, optimized and
+upgraded the risk data marts and individual risk management system, and continuously improved the Group's
+capability for aggregation of risk data and risk reporting. We prepared for the implementation of new regulations on
+capital supervision and orderly promoted the establishment of new measurement methods for credit risks, market risks
+and operational risks. We established a model risk management system and explored the promotion of climate risk
+management.
+Comprehensive risk management refers to the timely identification, measurement, monitoring, control and reporting
+of main material risks in business operation through the integration of elements including risk appetite, policies and
+rules, organizations, tools and models, data systems and risk culture in line with the principle of comprehensive
+coverage, whole-process management and overall participation, so as to ensure effective risk management in
+decision-making, implementation and supervision in the whole bank.
+Comprehensive Risk Management System
+Risk Management
+Discussion and Analysis
+4.76
+4.71
+313.05
+332.10
+1.52
+1.42
+60.60
+66.06
+2020
+2021
+31 December
+34.09
+11.19
+15.1
+Guaranteed loans
+1,910,717
+37,832
+0.22
+38,043
+0.26
+43,207
+0.43
+74,528
+Transportation, storage and postal services
+Transportation, storage and postal services
+Transportation, storage and postal services
+Transportation, storage and postal services
+Transportation, storage and postal services
+Transportation, storage and postal services
+Borrower E
+Borrower F
+Borrower C
+Borrower D
+Borrower B
+(%)
+Amount
+Industry
+Borrower A
+borrowers
+Percentage
+of total loans
+Top ten single
+In millions of RMB, except for percentages
+1.3
+195,433
+0.22
+1.1
+36,612
+29,622
+County Area Banking Business
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+At 31 December 2021, we fulfilled the regulatory requirements as total loans to our largest single borrower
+represented 2.44% of our net capital and total loans to our ten largest borrowers represented 11.67% of our net
+capital.
+2.08
+356,948
+0.12
+20,188
+Production and supply of electricity, heating, gas and water
+0.14
+24,312
+0.15
+24,990
+Production and supply of electricity, heating, gas and water
+Transportation, storage and postal services
+Borrower I
+Borrower J
+Total
+Borrower H
+0.16
+27,614
+Transportation, storage and postal services
+Borrower G
+0.17
+0.21
+6.8
+184,921
+12,663
+Overdue for less than 90 days (including 90 days)
+Overdue for 91 to 360 days (including 360 days)
+Overdue for 361 days to 3 years (including 3 years)
+Overdue for more than 3 years
+Item
+34,321
+15,170,442
+39,321
+17,175,073
+Discussion and Analysis
+Distribution of Overdue Loans by Overdue Period
+Total
+Accrued interest
+100.0
+15,136,121
+100.0
+17,135,752
+Sub-Total
+27.6
+4,175,828
+29.1
+4,992,382
+Unsecured loans
+11.2
+1,689,444
+11.2
+Total
+0.1
+Loan Concentration
+31 December 2021
+0.1
+16,829
+0.3
+43,749
+0.2
+40,886
+0.4
+60,793
+0.3
+52,847
+0.5
+78,228
+0.5
+74,359
+(%)
+Amount
+(%)
+Amount
+Percentage
+of total loans
+Percentage
+of total loans
+31 December 2020
+In millions of RMB, except for percentages
+8,021
+31 December
+126,111
+We accelerated the digital transformation of Sannong and County Area Banking Business. At the end of 2021,
+the total number of featured financial scenes in County Areas reached 12 thousand, representing an increase of
+7,537 as compared to the end of the previous year. 1,275 counties were contracted at a management platform
+for collectively-owned funds, resources and assets in rural areas, and 908 counties launched this platform,
+covering 123 thousand administrative villages. We initially built a smart rural comprehensive service cloud
+platform, with 61 scene functions of 3 categories.
+118,090
+We increased credit support for rural revitalization. We devoted full efforts in providing financial services for
+consolidating the achievements of poverty alleviation, national food security, rural industrial development, rural
+construction and other key areas for rural revitalization. At the end of 2021, the balance of loans in County
+Areas was RMB6,218.3 billion, representing an increase of RMB913.0 billion as compared to the end of the
+previous year.
+The Bank implemented the national strategic arrangement for rural revitalization, continuously pushed forward
+mechanism innovation, service upgrading and model transformation, and actively provided financial services for rural
+revitalization.
+Serving the Rural Revitalization Strategy
+We expanded the credit extension to key counties receiving assistance in pursuing rural revitalization. At the
+end of 2021, the balance of loans to key counties receiving assistance in pursuing rural revitalization was
+RMB266.0 billion, representing an increase of RMB34.7 billion or 15.0% as compared to the end of the previous
+year, which was 1.8 percentage points higher than the growth rate of that of the Bank.
+Discussion and Analysis
+Annual Report 2021 61
+We maintained steady growth in loans to the areas lifted out of poverty. At the end of 2021, the balance of
+loans in 832 counties lifted out of poverty was RMB1.47 trillion, representing an increase of RMB182.6 billion
+or 14.2% as compared to the end of the previous year, which was 1.0 percentage point higher than the growth
+rate of that of the Bank.
+We connected policies for poverty alleviation with policies for rural revitalization. We formulated 11 special
+documents including the Opinions on Vigorously Providing Financial Services for Connecting Consolidation and
+Expansion of Poverty Alleviation Achievements with Rural Revitalization, the Opinions on Enhancing Designated
+Poverty Alleviation, and the Implementation Plan of Supporting Key Counties Receiving Assistance in Pursuing
+Rural Revitalization with 158 financial assistance policies and measures.
+The Bank implemented the policy requirement of the CPC Central Committee to effectively combine the consolidation
+and expansion of poverty alleviation achievements with rural revitalization, focused on areas lifted out of poverty and
+key counties receiving assistance in pursuing rural revitalization. We insisted on no overall change in financial support
+policies, no deviation in target and no reduction in effort.
+Serving the Consolidation and Expansion of Poverty Alleviation Achievements
+Financial Services for Rural Revitalization
+We strengthened the construction of online and offline service channels in County Areas. We deeply
+implemented the Jinsui Huinongtong Project, and increased machinery and tools in the regions lifted out of
+poverty and the rural areas in the central and western regions. We developed and launched the county version of
+mobile banking, which provides Huinong financial products that are exclusively available for customers in County
+Areas. At the end of 2021, the number of registered customers of personal mobile banking in County Areas
+amounted to 186 million, representing an increase of 21 million as compared to the end of the previous year;
+and the number of monthly active users of mobile banking amounted to 63.54 million, representing an increase
+of 16.65 million as compared to the end of the previous year.
+We continued to push forward the innovation of products and service models. We continued to optimize the
+business processes of Huinong E-loan via Fin Tech such as Internet and big data to enable farmers to apply for
+loans through WeChat banking, mobile banking and other channels whenever they need, significantly improving
+customer experience. We adjusted petty loans for poverty alleviation to petty loans for people out of poverty,
+increased the amount of credit limit and extended the term of loan to better meet the needs of people lifted out
+of poverty.
+We increased the supply of Huinong E-loan. We vigorously promoted online financial services. In addition to
+providing financial services for planting and breeding industries, we strengthened credit support for merchants,
+rural residences, family inns, farm complexes and other fields in tourism and scenic spots. At the end of 2021,
+the balance of Huinong E-loan amounted to RMB544.7 billion, representing an increase of RMB191.3 billion
+as compared to the end of the previous year. The number of rural households with credit lines amounted to
+3.68 million, representing an increase of 0.92 million as compared to the end of the previous year.
+Keeping close to the financial needs of customers in County Areas, we continuously strengthened the innovation of
+products, channels and models. Our service capability of County Area Retail Banking Business was improved steadily.
+At the end of 2021, the balance of loans to retail customers in County Areas amounted to RMB2,679.3 billion,
+representing an increase of RMB413.6 billion as compared to the end of the previous year.
+County Area Retail Banking Business
+We continued to innovate featured financial products in County Areas. We moderately delegated the authority
+for product innovation in key areas such as agriculture, forestry, animal husbandry and fishery, county tourism,
+and counties lifted out of poverty, so as to support branches to carry out Sannong product innovation.
+Discussion and Analysis
+AGRICULTURAL BANK OF CHINA
+Rural Banks
+|中国农业银行
+ABC Hubei Hanchuan Rural Bank Limited Liability Company
+ABC Hexigten Rural Bank Limited Liability Company
+Percentage (%)
+Amount
+31 December 2021
+Amount Percentage (%)
+Item
+31 December 2020
+In millions of RMB, except for percentages
+Major Items of Assets and Liabilities of the County Area Banking Business
+Financial Position
+ABC Xiamen Tong'an Rural Bank Limited Liability Company was established in May 2012 in Tong'an District,
+Xiamen City, Fujian Province, with a registered capital of RMBO.15 billion, 51% of which was held by the Bank.
+At 31 December 2021, the total assets and net assets of ABC Xiamen Tong'an Rural Bank Limited Liability Company
+amounted to RMB1,094 million and RMB186 million, respectively. It recorded a net profit of RMB6.7564 million
+for 2021.
+ABC Xiamen Tong'an Rural Bank Limited Liability Company
+ABC Zhejiang Yongkang Rural Bank Limited Liability Company was established in April 2012 in Yongkang City,
+Jinhua City, Zhejiang Province, with a registered capital of RMB0.21 billion, 51% of which was held by the
+Bank. At 31 December 2021, the total assets and net assets of ABC Zhejiang Yongkang Rural Bank Limited
+Liability Company amounted to RMB697 million and RMB272 million, respectively. It recorded a net profit of
+RMB9.1144 million for 2021.
+ABC Zhejiang Yongkang Rural Bank Limited Liability Company
+ABC Jixi Rural Bank Limited Liability Company was established in May 2010 in Jixi County, Xuancheng City,
+Anhui Province, with a registered capital of RMB29.40 million, 51.02% of which was held by the Bank. At
+31 December 2021, the total assets and net assets of ABC Jixi Rural Bank Limited Liability Company amounted to
+RMB382 million and RMB43 million, respectively. It recorded a net profit of RMB0.2418 million for 2021.
+ABC Jixi Rural Bank Limited Liability Company
+Discussion and Analysis
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+62
+ABC Ansai Rural Bank Limited Liability Company was established in March 2010 in Ansai District, Yan'an City, Shaanxi
+Province, with a registered capital of RMB40 million, 51% of which was held by the Bank. At 31 December 2021,
+the total assets and net assets of ABC Ansai Rural Bank Limited Liability Company amounted to RMB547 million and
+RMB57 million, respectively. It recorded a net profit of RMBO.4247 million for 2021.
+ABC Ansai Rural Bank Limited Liability Company
+ABC Hexigten Rural Bank Limited Liability Company was established in August 2008 in Hexigten Banner, Chifeng City,
+Inner Mongolia Autonomous Region, with a registered capital of RMB19.60 million, 51.02% of which was held by the
+Bank. At 31 December 2021, the total assets and net assets of ABC Hexigten Rural Bank Limited Liability Company
+amounted to RMB217 million and RMB43 million, respectively. It recorded a net profit of RMB3.2420 million for 2021.
+ABC Hubei Hanchuan Rural Bank Limited Liability Company was established in August 2008 in Hanchuan, Hubei
+Province, with a registered capital of RMB31.00 million, 50% of which was held by the Bank. At 31 December 2021,
+the total assets and net assets of ABC Hubei Hanchuan Rural Bank Limited Liability Company amounted to
+RMB362 million and RMB63 million, respectively. It recorded a net profit of RMB3.7608 million for 2021.
+60
+At the end of 2021, the Bank optimized and adjusted the calculation method of rural industry loans in accordance with the
+Guidance Catalog of National Key Rural Industries (2021 Edition) issued by the national rural industry authority.
+1
+County Area Banking/Inclusive Finance Risk Management Center
+County Area Banking/Inclusive Finance Capital and Fund Management Center
+County Area Banking/Inclusive Finance Accounting and Assessment Center
+•
+•
+• County Area Banking/Inclusive Finance Human Resources Management Center
+Rural Households Banking Dept.
+• County Area Corporate Banking Dept.
+Rural Revitalization Banking Dept./County Area Policy and Banking
+Innovation Dept./Office of County Area Banking & Inclusive Finance
+Division Management Committee
+County Area Banking Division
+and Inclusive Finance Division
+Management Committee
+Chief Officer of County
+Area Banking Business
+Special Committee of
+Sannong and Inclusive
+Product Innovation
+Innovation Committee
+Technology and
+Product
+County Area Banking Business and
+Inclusive Finance Development
+Committee of the Board of Directors
+Head Office Level
+Senior Management
+Board of Directors
+Board of Supervisors
+Management Structure Chart of County Area Banking Division
+We provide customers in County Areas with comprehensive financial services through all our branch outlets in
+counties and county-level cities (i.e. County Areas) in China. We refer to such business as the County Area Banking
+Business or Sannong Banking Business. During the reporting period, focusing on our strategic positioning of building
+"a leading bank serving rural revitalization", we steadily promoted financial services to key areas relating to the
+consolidation and expansion of poverty alleviation achievements and rural revitalization, continuously improved the
+operation mechanism and policy system of County Area Banking Division, and enhanced the product innovation and
+digital transformation of Sannong, with our service capabilities and market competitiveness steadily enhanced.
+Management Structure
+Branch and Sub-branch Level
+•
+County Area Banking/Inclusive Finance Credit Management Center
+• County Area Banking/Inclusive Finance Credit Approval Center
+We accelerated to promote the digital transformation of County Area Corporate Banking Business. At the end
+of 2021, the balance of the online loans to corporate customers in County Areas increased by RMB71.5 billion
+to RMB184.4 billion as compared to the end of the previous year. We had 5.03 million high-frequency Internet
+customers in County Areas, representing an increase of 3.63 million as compared to the end of the previous year.
+We continued to increase loans to key areas relating to rural revitalization. At the end of 2021, the balance
+of corporate loans relating to key areas of food amounted to RMB137.8 billion, increased by RMB20.5 billion
+as compared to the end of the previous year. The balance of loans relating to pig production increased
+by RMB13.1 billion to RMB68.6 billion. The balance of loans to industries in rural areas increased by
+RMB194.6 billion to RMB1,139.2 billion¹; and the balance of loans for rural construction increased by
+RMB165.2 billion to RMB1,280.3 billion.
+•
+Actively implementing the national rural revitalization strategy, we strengthened product innovation and digital
+transformation to develop our County Area Corporate Banking Business up to a new level. At the end of 2021, loans
+to corporate customers in County Areas (excluding discount bills) amounted to RMB3,368.4 billion, representing an
+increase of RMB452.8 billion as compared to the end of the previous year.
+County Area Corporate Banking Business
+We optimized the credit policies for Sannong and County Areas. We formulated the Sannong Credit Policy
+Guideline for 2021, revised credit policies for agriculture-related industries such as liquor, animal husbandry,
+slaughtering and meat processing, and formulated special supporting policies for the seed and potato industries.
+We incorporated the business in those former areas with deep poverty, counties lifted out of poverty and key
+counties receiving assistance in pursuing rural revitalization as well as the loans for food security, modern seed
+industry and high-standard farmland construction into the scope of preferred settlement.
+We deepened the human resources reform in County Areas. We issued recruitment plan in County Areas
+with the proportion of not less than 50%, and continued to carry out special recruitment program for college
+students from registered poor families. We pushed forward the Double One Hundred Plan to help cadres and
+talents, with the number of pairs participating in the Plan increased from 100 to 110. We enhanced special
+trainings for rural revitalization, and conducted rotation trainings for vice presidents of tier-1 branches in
+charge of County Area Banking Business, presidents of County Area sub-branches, and chief officers of 1,000
+demonstration branch outlets.
+We introduced differentiated supporting policies. We introduced policies to support the services to rural
+revitalization and the development of County Area Banking Business for 2021, and optimized and improved the
+performance appraisal plan of County Area Banking Division. We adopted preferential policies to allocate the
+credit resources in County Areas, and separately allocated the economic capital, fixed assets, financial expenses,
+wages and other resources in County Areas. The Head Office arranged for the replenishment of the excess portion
+of the economic capital occupied by the loans granted in County Areas with the strategic economic capital.
+We improved the system and mechanism of serving rural revitalization. A leading group for financial services to
+rural revitalization was set up in the Head Office, promotion groups for financial services to rural revitalization
+were set up in each of our tier-1 branches analogously, and rural revitalization banking departments at all
+levels were established. We established and improved the system and mechanism of financial services for rural
+revitalization with overall planning by the Head Office, promotion by provincial and municipal branches, and
+implementation by County Area sub-branches.
+During the reporting period, we earnestly implemented the national strategic arrangement of consolidating and
+expanding achievements in poverty alleviation and comprehensively promoting rural revitalization, and continued to
+strengthen related financial services. The mechanism of County Area Banking Division was in good operation and with
+strong support, and the development of County Area Banking Business remained stable with a favorable trend.
+Total loans and advances to customers
+Allowance for impairment losses on loans
+Loans and advances to customers, net
+Management Mechanism
+Annual Report 2021 59
+County Area Sub-branch/
+County-level Banking Sub-division
+County Area
+Sub-branch Management
+Tier-2 Branch County Area
+Banking Sub-division
+Tier-1 Branch County Area
+Banking Sub-division
+Tier-2 Branch Management
+Tier-1 Branch Management
+County Area Banking/Inclusive Finance Internet Finance Management Center
+County Area Banking/Inclusive Finance Channel Management Center
+•
+Discussion and Analysis
+6,218,312
+We strengthened innovation of products and service models. We formulated Guidelines on Developing Flagship
+Products for Serving Rural Revitalization for 2021, and identified 19 flagship products for promotion across
+the Bank. We optimized and adjusted product innovation bases for Sannong, and set up 70 such bases.
+In collaboration with the National Rural Revitalization Administration, we launched a pilot product "Fumin
+Loan". We jointly built a financial innovation demonstration zone of rural revitalization with the National Rural
+Revitalization Administration and the Sichuan Provincial Government.
+(286,111)
+5.6
+1,653
+29,303
+30,956
+Net fee and commission income
+10.3
+23,783
+231,764
+255,547
+Net interest income
+12.2
+14,849
+122,135
+136,984
+Interest income from intra-bank balance¹
+16.4
+19,892
+121,062
+140,954
+Less: External interest expense
+12.5
+Other non-interest income
+28,826
+8,492
+7,765
+Total profit before tax
+77.8
+21
+27
+23.9
+12,514
+52,276
+64,790
+48
+Impairment losses on other assets
+Credit impairment losses
+13.8
+12,645
+91,401
+104,046
+Less: Operating expenses
+12.7
+33,201
+261,794
+294,995
+Operating income
+5,305,305
+727
+230,691
+1,068.1
+External interest income
+Deposits from customers
+100.0
+9,638,372
+100.0
+10,419,215
+Total assets
+8.7
+840,801
+9.1
+946,065
+38.8
+3,739,471
+34.0
+3,540,949
+Intra-bank balance¹
+52.5
+5,058,100
+56.9
+5,932,201
+259,517
+(247,205)
+9,413,446
+97.8
+Other assets
+97.9
+Growth rate
+Increase/
+(decrease)
+2020
+2021
+In millions of RMB, except for percentages
+Major Income Items of the County Area Banking Business
+Discussion and Analysis
+Annual Report 2021 63
+Intra-bank balance refers to funds provided by the County Area Banking Business to other business segments within
+the Bank through internal funds transfers.
+8,754,484
+(%)
+100.0
+8,942,453
+100.0
+2.1
+187,969
+2.2
+212,889
+9,626,335
+Total liabilities
+Other liabilities
+Note: 1.
+The Bank's exchange rate risk is mainly the exposure risk arising from the exchange rate of USD against RMB.
+74
+Exchange Rate Risk Analysis
+In 2021, the mid-point rate of RMB against USD appreciated accumulatively by 1,492 basis points or 2.3%. At the
+end of 2021, the Bank's positive foreign exchange exposure of on- and off-balance sheet was USD9,822 million,
+representing an increase of USD950 million in absolute terms as compared to the end of the previous year.
+Based on the composition of the assets and liabilities at 31 December 2021, if the interest rates instantaneously
+increase (or decrease) by 100 basis points, the net interest income and other comprehensive income of the Bank
+would decrease (or increase) by RMB37,792 million and RMB39,264 million, respectively.
+Exchange rate risk refers to the risk arising from currency mismatches of assets and liabilities of banks. Exchange rate
+risk mainly consists of the trading exchange rate risk that could be hedged, and the exchange rate risk caused by
+assets and liabilities (the "non-trading exchange rate risk"), which is hardly to be avoided in operations.
+Exchange Rate Risk Management
+| 中国农业银行
+The interest rate sensitivity analysis above indicates the movements within the next twelve months in net interest
+income and other comprehensive income under various interest rate conditions, assuming that there is a parallel
+shift in the yield curve and without taking into account any risk management measures probably adopted by the
+management to reduce interest rate risk.
+67,941
+In 2021, we performed monitoring on exchange rate risk exposures and sensitivity analysis regularly, and improved
+exchange rate risk measurement and system construction. Through proper matching of foreign currencies, we flexibly
+adjusted the trading exchange rate risk exposure, while maintaining the non-trading exchange rate risk exposure
+basically stable. Therefore, our exchange rate risk exposure was controlled within a reasonable range.
+AGRICULTURAL BANK OF CHINA
+Net foreign exchange exposure
+of on-balance sheet financial
+assets/liabilities
+31 December 2021
+RMB
+USD
+equivalent
+Discussion and Analysis
+In millions of RMB (USD)
+31 December 2020
+RMB
+USD
+equivalent
+Net foreign exchange exposure
+of off-balance sheet financial
+assets/liabilities
+66,079
+35,270
+(67,941)
+10,364
+Foreign Exchange Exposure
+Movements
+in other
+comprehensive
+income
+31 December 2020
+(37,792)
+37,792
+earning
+2,949
+(35,419)
+5,405
+Within
+1-3
+Sub-Total of
+1 month
+31 December 2021
+(6,739,001)
+(6,360,968)
+months
+1,022,100
+818,643
+3-12
+months
+4,872,511
+4,421,541
+1 year and
+below
+(844,390)
+(1,120,784)
+1-5 years
+(554,215)
+194,579
+Note: Please refer to "Note IV. 44.3 Market Risk to the Consolidated Financial Statements" for more details.
+Interest Rate Sensitivity Analysis
+Movements in basis points
+Increased by 100 basis points
+Decreased by 100 basis points
+In millions of RMB
+31 December 2021
+31 December 2020
+Movements
+in net interest
+Movements
+in other
+comprehensive
+income
+(39,264)
+39,264
+Movements
+in net interest
+income
+income
+(37,556)
+37,556
+(3,454)
+Discussion and Analysis
+22,625
+Liquidity Risk Management Strategy and Policy
+We adhered to a prudent liquidity management strategy. We formulated our liquidity risk management policy pursuant
+to the regulatory requirements, external macroeconomic environment and our business development. We effectively
+maintained balance among liquidity, security and profitability, on condition of the guaranteed security of liquidity.
+Liquidity Risk Management Objectives
+The objectives of our liquidity risk management were to effectively identify, measure, monitor and report liquidity
+risk by establishing a scientific and refined liquidity risk management system, to promptly fulfil the liquidity needs
+of assets, liabilities and off-balance sheet businesses and perform the payment obligations under normal business
+environment or under operational pressure; and to effectively balance both capital efficiency and security of liquidity
+while preventing the overall liquidity risk of the Group.
+Liquidity Risk Management Method
+We paid close attention to changes in economic and financial situation, monetary policies and market liquidity,
+continued to monitor our bank-wide liquidity condition, anticipated the change trend, and strengthened the asset-
+liability matching management to mitigate risks related to mismatch of maturity. We secured the sources of core
+deposits and facilitated the use of proactive liabilities instruments to keep our financing channels smooth in the
+market. We improved the liquidity management mechanism through strengthening the monitoring, early warning,
+and overall allocation of liquidity position. With a moderate reserve level, we satisfied various payment demands.
+In addition, we refined the functions of the liquidity management system and improved the level of our electronic
+management.
+Stress Testing Situation
+Based on the market condition and operation practice, we set liquidity risk stress scenarios based on full consideration
+of various risk factors which may affect the liquidity. We conducted stress testing quarterly. According to the testing
+results, under the prescribed stress scenarios, we have passed all the shortest survival period tests as required by
+regulatory authorities.
+Main Factors Affecting Liquidity Risk
+In 2021, the internal and external liquidity situations faced by the Bank were complicated and ever-changing. Due to
+the impact of the pandemic, the driver of global economic recovery slowed down, and the inflationary pressures of
+overseas rose. China implemented cross-cyclical adjustments macro policies, and the fluctuation of market interest
+rate increased. The challenges in our liquidity risk management we faced increased significantly, including the growth
+of deposit slowed and the difficulties in balancing the liquidity, security and profitability increased.
+Liquidity Risk Analysis
+During the reporting period, we managed cash flows brought by maturing fund properly and the overall liquidity was
+sufficient, secured and under control. At the end of 2021, we fulfilled the regulatory requirements with liquidity ratios
+for RMB and foreign currency of 62.01% and 138.94%, respectively. The average of the liquidity coverage ratio over
+the fourth quarter in 2021 decreased by 6.8 percentage points to 121.1% as compared to the previous quarter. At
+the end of 2021, the net stable funding ratio was 127.1%, with available stable funding of RMB20,646.3 billion in
+numerator and the required stable funding of RMB16,244.6 billion in denominator.
+76
+|中国农业银行
+AGRICULTURAL BANK OF CHINA
+Liquidity Gap Analysis
+The table below presents the Bank's net position of liquidity as of the dates indicated.
+Discussion and Analysis
+In millions of RMB
+Past due On demand
+Within
+1 month
+31 December 2021
+31 December 2020
+1-3
+3-12
+months months
+(663,272) (428,608)
+(627,463) 215,455
+Over
+5 years
+11,388,711
+2,914,986
+Discussion and Analysis
+(542)
+Annual Report 2021 75
+Liquidity Risk Management Governance Structure
+Please refer to "Note IV. 44.3 Market Risk to the Consolidated Financial Statements" for more details.
+Note: 1.
+Exchange Rate Sensitivity Analysis
+3,467
+Currency
+USD
+HKD
+Increase/decrease
+In millions of RMB
+in exchange rate Impact on profit before tax
+of foreign currency
+31 December 31 December
+against RMB
+2021
+2020
++5%
+224
+1,450
+-5%
+(224)
+(1,450)
++5%
+1,484
+771
+(1,484)
+(771)
+The non-RMB denominated assets and liabilities of the Bank were primarily denominated in USD and HKD. Based on
+the on- and off-balance sheet exchange rate exposure at the end of the reporting period, the profit before tax of the
+Bank will increase (or decrease) by RMB224 million if USD appreciates (or depreciates) by 5% against RMB.
+Liquidity Risk
+Liquidity risk refers to the risk of being unable to timely acquire sufficient funds at a reasonable cost by commercial
+banks to settle amounts due, fulfil other payment obligations and satisfy other funding needs during the ordinary
+course of business. The major factors affecting liquidity risk include negative impacts of market liquidity, deposit
+withdrawal by customers, loans withdrawal by customers, imbalance between asset and liability structures, debtor's
+default, difficulty in asset realization, weakening financing ability, etc.
+Liquidity Risk Management
+The liquidity risk management governance structure of the Bank consists of a decision-making system, an execution
+system and a supervision system, among which, the decision-making system comprises the Board of Directors and its
+Risk Management and Consumers' Interests Protection Committee and the senior management; the execution system
+comprises liquidity management department, asset and liability business department and information and technology
+department, etc.; and the supervision system comprises the Board of Supervisors, the Audit Office, the Internal
+Control and Compliance Supervision Department and the Legal Affairs Department. The aforesaid systems perform
+their respective decision-making, execution and supervision functions based on the division of responsibility.
+3,539,307
+-5%
+Over Non-interest
+Non-
+performing
+loan ratio
+Item
+Amount
+(%)
+(%)
+Manufacturing
+66,402
+32.6
+4.43
+Amount
+67,523
+5 years
+(%)
+35.1
+Percentage
+5.08
+heating, gas and water
+12,269
+6.0
+1.21
+9,641
+5.0
+Real estate
+28,172
+13.7
+3.39
+14,209
+7.4
+14
+Production and supply of electricity,
+1.04
+Non-
+performing
+loan ratio
+31 December 2020
+Others
+24
+8.25
+29
+256542 I
+0.62
+0.38
+1.55
+2.04
+0.85
+1.22
+4.26
+Overseas and others
+Percentage
+5,597
+1.31
+6,262
+Total
+245,782
+100.0
+1.43
+237,113
+2.6
+100.0
+1.51
+1.57
+Distribution of Corporate Non-Performing Loans by Industry
+31 December 2021
+In millions of RMB, except for percentages
+2.3
+1.81
+Transportation, storage and postal services
+17,859
+3.25
+Leasing and commercial services
+24,026
+11.8
+1.61
+26,040
+13.5
+2.07
+Finance
+362
+0.2
+0.24
+55
+3.2
+0.02
+software and IT services
+1,024
+0.5
+1.76
+679
+0.3
+1.75
+Other industries
+5,198
+2.5
+1.58
+6,478
+3.4
+Information transmission,
+6,225
+10.50
+10.0
+8.8
+0.85
+22,000
+11.4
+1.18
+Wholesale and retail
+18,384
+9.0
+3.72
+34,978
+18.2
+8.55
+Water, environment and
+public utilities management
+3,371
+1.7
+0.47
+1,916
+1.0
+0.31
+Construction
+6,558
+3.2
+2.25
+2,807
+1.5
+1.31
+Mining
+20,314
+2.2
+1.4
+1.5
+3.6
+0.28
+62,873
+0.42
+170,611
+1.00
+152,627
+1.01
+26,459
+0.15
+21,613
+0.14
+17,135,752
+100.00
+48,712
+15,136,121
+39,321
+17,175,073
+34,321
+15,170,442
+At 31 December 2021, the balance of our non-performing loans was RMB245,782 million, representing an increase of
+RMB8,669 million as compared to the end of the previous year; and the non-performing loan ratio decreased by 0.14
+percentage point to 1.43% as compared to the end of the previous year; and the balance of special mention loans
+was RMB253,071 million, representing a decrease of RMB51,264 million as compared to the end of the previous year;
+and special mention loans accounted for 1.48% of the total loans, representing a decrease of 0.53 percentage point
+as compared to the end of the previous year.
+In 2021, the Bank adhered to general principle of pursuing progress while ensuring stability, optimized the allocation
+of credit resources, reinforced the risk management and control over the key areas, and kept asset quality stable.
+The Bank optimized the credit structure continuously and reinforced the credit support for major areas such as
+rural revitalization, green & low carbon, scientific & technological innovation, manufacturing transformation and
+upgrade, regional development strategies of the state and inclusive finance. We paid close attention to risks in major
+industries, regions and customers, strengthened the risk monitoring and warning against the real estate sector, credit
+to local governments, industries with "high pollution and high energy consumption" and group customers with
+large loan balances. In addition, we made pertinent control plans, took measures to prevent and mitigate the credit
+risk, and strictly adhered to the limitation of avoiding the systematic financial risk. We reinforced the industry limit
+management, strengthened the control over special mention loans and effectively prevented, mitigated and disposed
+potential risks. We refined the operation mechanism for the online credit business, optimized the risk management
+process and policy for the online business and strengthened the risk management and control over online loans. We
+actively advanced the work to dispose of non-performing loans, adhered to the self-disposal and enhanced collection
+in depth. We implemented the disposal strategy of more collection, more write-offs, more restructuring and prudent
+transfer in batches. We focused on the work to dispose of non-performing loans in major areas and enhanced the
+capacity to resolve risks actively.
+Annual Report 2021 69
+70
+Discussion and Analysis
+Distribution of Non-Performing Loans by Business Type
+31 December 2021
+In millions of RMB, except for percentages
+31 December 2020
+Percentage
+Non-
+performing
+loan ratio
+100.00
+1.57
+237,113
+1.43
+Large Exposures
+During the reporting period, pursuant to the regulatory requirements such as the Administrative Measures for Large
+Exposures of Commercial Banks issued by the CBIRC, we further refined the organizational structure and system for
+large exposures management, conducted the measurement, monitoring and system optimization in respect of large
+exposures in an orderly manner, strictly managed and controlled each regulatory indicators according to regulatory
+requirements, regularly reported to regulatory authorities with regulatory reports and management statements and
+continuously improved our capability to measure and manage large exposures.
+Distribution of Loans by Five-category Classification
+In millions of RMB, except for percentages
+Item
+Normal
+Special mention
+Non-performing loans
+Substandard
+Doubtful
+Loss
+Sub-Total
+Accrued interest
+Total
+31 December 2021
+31 December 2020
+Percentage
+Percentage
+Amount
+(%)
+16,636,899
+97.09
+Amount
+14,594,673
+(%)
+96.42
+253,071
+1.48
+304,335
+2.01
+245,782
+Percentage
+2.34
+Non-
+performing
+loan ratio
+Amount
+Residential mortgage loans
+18,872
+7.7
+0.36
+17,655
+Credit card balances
+6,179
+2.5
+0.99
+8,430
+Personal consumption loans
+2,340
+0.9
+38,300
+1.33
+Loans to private business
+3,009
+1.2
+0.64
+3,231
+Loans to rural households
+5,822
+2.4
+0.96
+5,308
+6731~~
+16.2
+7.5
+3,647
+0.51
+14.7
+36,246
+(%)
+(%)
+Amount
+(%)
+(%)
+Corporate loans
+203,939
+83.0
+2.22
+192,551
+81.2
+2.37
+Including: Short-term corporate loans
+93,620
+38.1
+3.58
+93,614
+39.5
+3.79
+Medium- and
+long-term corporate loans
+110,319
+44.9
+1.68
+98,937
+41.7
+1.75
+Discounted bills
+Retail loans
+Item
+Total
+(%)
+100.0
+period
+Average
+Maximum
+Minimum
+67
+99
+36
+59
+88
+164
+52
+149
+190
+Minimum
+289
+28
+165
+213
+28
+44
+83
+136
+21
+62
+75
+120
+9
+150
+35
+Maximum
+Average
+period
+53
+162,959
+736,687
+Notes: 1.
+For details of the impairment models of three stages, please refer to "Note IV. 17 Loans and advances to customers
+to the Consolidated Financial Statements".
+2.
+The table includes the allowance for impairment losses on loans measured at fair value through other comprehensive
+income.
+Annual Report 2021 71
+Discussion and Analysis
+Market Risk
+Market risk refers to the risk of losses in the on- and off-balance sheet businesses of banks as a result of an adverse
+change in market prices. Market risk comprises, but not limited to, interest rate risk, exchange rate risk, stock
+price risk and commodity price risk. The market risks which the Bank is exposed to primarily include interest rate
+risk, exchange rate risk and commodity price risk. The Bank's organizational structure of market risk management
+comprises the Board of Directors and its Risk Management and Consumers' Interests Protection Committee, the senior
+management and its Risk Management and Internal Control Committee, the Risk Management Department, the Asset
+and Liability Management Department and other departments (institutions) bearing market risks.
+In 2021, the Bank formulated its market risk appetite and market risk management policy for 2021 to clarify the bank-
+wide market risk management requirements and access standards for transaction investment business. We continued
+to improve the capital measurement and limit calculation functions of the market risk management system, carry
+out comprehensive validation of Internal Model Approach, and optimize the modeling and system of market risk
+measurement. We focused on conducting new products access reviews to ensure that risks are controllable before
+launching new products. We gradually established a price monitoring system for financial market transactions and
+strengthened price monitoring and management.
+Our market risk exposure limits are classified into directive limits and indicative limits. We classified all of the on- and
+off-balance sheet assets and liabilities into either the trading book or the banking book. The trading book includes
+the financial instruments and commodity positions held for trading or hedging against the risk of other items in the
+trading book. Any other positions are classified into the banking book.
+Market Risk Management for Trading Book
+We managed the market risk of the trading book through various approaches such as Value at Risk (VaR), exposure
+limit management, sensitivity analysis, duration analysis, exposure analysis and stress testing.
+We adopted a historical simulation method with a confidence interval of 99% based on a holding period of one
+day and historical data for 250 days to measure the VaR for the trading book of the Head Office and domestic and
+overseas branches of the Bank.
+VaR Analysis for the Trading Book
+Item
+Interest rate risk
+Exchange rate risk¹
+Commodity risk
+Overall VaR
+Note: 1.
+72
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+In millions of RMB
+2021
+2020
+At the
+end of the
+At the
+end of the
+210
+57,503
+307
+87
+—
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Exchange rate risk
+Interest rate risk
+¥250
+¥200
+¥150
+¥100
+¥50
+Change in VaR of Trading Book in 2021
+Discussion and Analysis
+In millions of RMB
+MAN
+In addition, the Bank incorporated climate risk into its comprehensive risk management system. For details of climate
+risk management, please refer to "Information on Environmental, Social and Corporate Governance Green
+Finance".
+WF
+2021/01 2021/02 2021/03 2021/04 2021/05 2021/06 2021/07 2021/08 2021/09 2021/10 2021/11 2021/12
+In 2021, the scale of bond portfolio remained stable as a whole and declined slightly as compared to 2020, thus
+the VaR of interest rate risk was slightly lower than that in the previous year. The scale of foreign exchange trading
+remained stable, the unilateral exposure of gold portfolio increased, thus the VaR of exchange rate risk increased as
+compared to the previous year. The net average exposure of silver portfolio increased slightly, resulting in the average
+VaR of commodity risk being higher than that in the previous year.
+Market Risk Management for Banking Book
+The Bank managed market risk of the banking book through comprehensive use of technical measures such as
+exposure limit management, stress testing, scenario analysis and gap analysis.
+Interest Rate Risk Management
+Interest rate risk refers to risk of losses in economic value or income of the banking book as a result of adverse changes
+of the interest rate level or term structure. The interest rate risk of the banking book of the Bank primarily arises from
+the mismatch of the maturity or re-pricing dates of interest-rate-sensitive assets and liabilities in the banking book and
+inconsistencies in the change of the benchmark interest rate on which assets and liabilities are based.
+In 2021, the Bank paid close attention to macroeconomic and interest rate trends, adjusted the duration strategy
+of assets and liabilities in a timely manner, and implemented prudent interest rate risk management. We constantly
+promoted the optimization of the interest rate risk systems and models, and refined the interest rate risk
+management. We strengthened FTP dynamic adjustment of market business and the risk management function of FTP.
+During the reporting period, our interest rate risk of the banking book was overall controllable, while all risk indicators
+were controlled within the scope of regulatory requirements and management objectives.
+Interest Rate Risk Analysis
+At 31 December 2021, the accumulative negative gap with interest rate sensitivity due within one year of the Bank
+amounted to RMB844,390 million, representing a decrease of RMB276,394 million in absolute terms as compared to
+the end of the previous year.
+Annual Report 2021 73
+Discussion and Analysis
+Interest Rate Risk Gap
+In millions of RMB
+70
+In 2021, we continued to improve the risk consolidation management of the Group, and advanced the integration of
+risk management of the Bank and subsidiaries. We guided our subsidiaries to revise their risk appetite statements and
+risk management policies, improve their quantitative indicators system for risk appetite, and strengthen the tracking
+and monitoring of the implementation of risk appetite. We supervised subsidiaries to improve the business model and
+risk management and control measures for new products and new businesses. We further strengthened the system
+support for the consolidated risk management of the Group, continued to carry out risk monitoring, management
+evaluation and risk assessment and evaluation of subsidiaries, and guided subsidiaries to strengthen risk management
+and control in key areas. We implemented relevant regulatory requirements for risk isolation and conducted risk
+isolation evaluation.
+Risk Consolidated
+We managed country risk through tools and approaches such as country risk rating, limit control, exposure
+monitoring, provision for asset impairment and stress testing. In 2021, in response to changes in the external
+situation, we timely evaluated country risk and made adjustments to country risk ratings and limits. Taking full account
+of the impact of country risk on our asset quality, we made full provision for asset impairment.
+232
+362
+87
+According to the Capital Rules for Commercial Banks (Provisional), VaR relating to gold was reflected in exchange
+rate risk.
+¥350
+Overall VaR
+Commodity risk
+¥300
+1-5
+years
+Undated
+2,013,118
+2,279,803 2,143,651
+2,442,985 9,706,251 2,411,233 1,953,362
+Total
+22,689 (13,368,709) 899,919
+26,848 (12,801,017) 579,070
+Note: Please refer to "Note IV. 44.2 Liquidity risk to the Consolidated Financial Statements" for more details.
+For details of liquidity coverage ratio and net stable funding ratio of the Bank, please refer to "Appendix I Liquidity
+Coverage Ratio Information" and "Appendix III Net Stable Funding Ratio Information", respectively.
+Operational Risk
+Operational Risk Management
+Operational risk refers to the risk of loss resulting from inadequate or problematic internal procedures, from human or
+information technology system related factors, or from external affairs, including legal risk, but not including strategy
+risk or reputational risk.
+In 2021, we adjusted operational risk appetite and operational risk management strategy, revised the basic rules on
+operational risk management, improved the matrix operational risk management system, optimized the whole-process
+management mechanism for operational risk, and coordinately promoted the integration and digitalization of internal
+control, compliance, prevention of cases, and operational risk management, so as to steadily promote operational
+risk management. We deepened the application of operational risk management tools, carried out annual operational
+risk evaluation and operational risk evaluation of new businesses, products and systems, and improved the key risk
+indicator system of the Bank. Centering on the implementation of the Basel III, we strengthened the reporting of
+operational risk incidents, carried out centralized verification of incident reports, and advanced the construction of the
+operational risk loss data management system in an orderly manner. We strengthened operational risk management in
+key areas, formulated the Administrative Measures for Financial Services in Response to Emergencies, the Regulations
+on Outsourcing Risk Management, and the Rules on Separation of Responsibilities for Incompatible Posts, further
+promoted the construction of a case prevention monitoring and early warning platform and a smart anti-fraud
+platform, and carried out case risk inspection on a regular basis.
+Legal Risk Management
+203,939
+In 2021, we continued the construction of Agricultural Bank of China under the rule of law to further promote
+law-based governance. We improved the "three lines of defense" of legal risk management, and optimized
+the process and mechanism of legal risk management. We strengthened legal services and support in digital
+transformation, rural revitalization, green finance, privacy and data security, interest rate liberalization and inclusive
+finance. We prevented the risk of intellectual property infringement, and ensured business and product innovation.
+We prudently handled sensitive and major legal disputes, prevented and eliminated major risks, and actively
+safeguarded the rights and interests of the Bank. We enhanced legal risk management in comprehensive and
+international business and built an integrated domestic and overseas legal risk management mechanism for the
+Annual Report 2021 77
+78
+Discussion and Analysis
+Group. We comprehensively promoted the publicity and implementation of important laws such as the Civil Code
+and the Personal Information Protection Law, and made timely adjustments to systems, contracts and products. We
+promoted the culture of rule of law, and carried out publicity and education on the rule of law in various forms, so as
+to raise the awareness of the rule of law among all staff.
+Reputational Risk
+Reputational risk refers to the risk resulting from negative feedback from related stakeholders, the public and the
+media due to the operation of the Bank's institutions, behavior of employees or external events, thus damaging the
+brand value, causing adverse impact on normal operation, and even affecting market stability and social stability.
+In 2021, we further improved the basic system, steadily promoted the whole-process management of reputational
+risk, strengthened pre-event investigation and early warning, optimized in-event response and disposal, deepened
+post-event rectification and evaluation, carried out analog response drills, and strived to improve the Group's level of
+reputational risk management. We focused on monitoring the public opinion on financial services at important time
+points and key events, actively responded to social concerns, and conducted investigation and rectification in a timely
+manner. We carried out various forms of positive publicity and guidance to enhance our brand image.
+Country Risk
+Country risk represents the risk due to changes and incidents occurred in the economy, politics and society of a
+specific country or region, which results in the borrowers or debtors in that country or region incapable of or unwilling
+to pay their debts owed to the Bank or otherwise leads to business losses to the Bank in that country or region or
+other losses to the Bank.
+87
+516,225
+Legal risk refers to any risk of banks suffering from adverse consequences including legal liabilities, loss of rights
+and reputational damage due to the breach of laws, administrative rules and regulations, or terms of contracts of its
+business operations and legal failure to duly regulate and exercise rights or external legal factors. Legal risk includes
+risk directly resulted from legal factors, as well as the risk associated with other forms of risks.
+(59,252)
+0.64
+30,533
+12.9
+0.88
+Pearl River Delta
+17,463
+7.1
+0.61
+18,451
+7.8
+0.75
+Bohai Rim
+58,562
+10.7
+23.8
+65,405
+27.6
+2.95
+Central China
+49,632
+20.2
+1.86
+46,009
+19.4
+2.00
+Northeastern China
+5.0
+2.07
+2.38
+26,265
+Yangtze River Delta
+0.39
+2.22
+31 December 2021
+192,551
+100.0
+2.37
+| 中国农业银行
+AGRICULTURAL BANK OF CHINA
+Distribution of Non-Performing Loans by Geographic Region
+Discussion and Analysis
+31 December 2021
+In millions of RMB, except for percentages
+31 December 2020
+Percentage
+Non-
+performing
+loan ratio
+Percentage
+Non-
+performing
+loan ratio
+Item
+Amount
+(%)
+(%)
+Amount
+(%)
+(%)
+Head Office
+1,297
+0.5
+0.41
+1,369
+0.6
+9,294
+3.9
+12,258
+Western China
+credit losses
+410,963
+60,702
+159,541
+631,206
+(8,237)
+8,237
+(25,265)
+25,265
+Stage II to stage I
+4,768
+(4,768)
+Stage III to stage II
+2,420
+(2,420)
+Originated or purchased financial assets
+185,625
+185,625
+33,273
+36,009
+61,866
+131,148
+Repayment and transfer-out
+(110,167)
+(19,832)
+(22,041)
+(152,040)
+(59,252)
+Write-offs
+1.68
+Lifetime expected
+expected
+credit losses
+Remeasurement
+Stage I to stage II
+30.4
+74,708
+Stage II to stage III
+1.99
+59,790
+25.2
+1.78
+5,597
+2.3
+1.31
+6,262
+2.6
+1.51
+Total
+Overseas and others
+100.0
+Total
+245,782
+Stage III
+Stage II
+Item
+2021
+Stage I
+12-month
+Changes in the Allowance for Impairment Losses on Loans
+1.57
+100.0
+237,113
+1 January 2021
+Transfer¹
+1.43
+In millions of RMB
+20,000
+(RMB100 million)
+Green credit balance
+At the end of 2021, the balance of our green credit' was RMB1.9778 trillion, representing an increase of 30.6%
+compared to the end of the previous year, which was significantly higher than the overall growth rate of loans of
+the Bank.
+We actively used the carbon emission reduction supporting tools. In 2021, we responded to the policy of tools
+supporting the carbon emission reduction of PBOC quickly, carried out the targeted marketing, refined working
+mechanisms and supported projects that made a significant carbon reduction effect.
+We promoted the product and service innovation. We innovatively launched the green credit products, such as
+pledge loan of the future income right from contractual energy management, ecological restoration loan, green
+transportation loan, green energy conservation construction loan, ecological protection loan, carbon sink forestry
+loan, and supported our branches to launch several featured products.
+We increased the supply of green credit. To achieve the objectives of peak carbon emissions and carbon
+neutrality as well as biodiversity protection, we scientifically made allocation of our credit resources and
+improved our evaluation system. Our financial support was increased in areas related to energy conservation
+and environmental protection, clean production, clean energy, ecological environment, green upgrading of
+infrastructure and green services.
+Material
+We formulated the industry-specific credit policies for petrochemical, steel,
+nonferrous metals and building materials and related industries, put forward relevant
+requirements on ESG risk management and served the green and low-carbon
+development of industrial enterprises.
+We formulated the industry-specific credit policies for railways, highways, urban
+railways, airports, air transport and related industries, put forward relevant
+requirements on ESG risk management and served the green and low-carbon
+transformation of the transportation industry.
+Policy
+Transportation
+Industry
+Information on Environmental, Social and Corporate Governance
+15,149
+82
+Green Credit
+15,000
+0
+10,000
+Annual Report 2021 81
+2021
+2020
+2019
+2021
+2020
+2019
+0
+11,910
+654
+447
+600
+900
+883
+(RMB100 million)
+Green bonds invested for our own account
+19,778
+5,000
+300
+We formulated the industry-specific credit policies for coal and metal mining and
+processing and related industries, put forward relevant requirements on ESG risk
+management and served the green and low-carbon development of mining industry.
+We formulated the industry-specific credit policies for the oil and natural
+gas extraction industries, and put forward relevant requirements on ESG risk
+management.
+Capital Adequacy Ratio and Leverage Ratio
+We formulated a number of industry-specific credit policies for biodiversity protection
+involving seed, forestry, floriculture and traditional Chinese medicine, and introduced
+relevant work opinions to support ecological conservation in the Yellow River
+Ecological Zone. We stipulated increasing support for the whole industrial chain of
+green agriculture, including ecological planting, ecological breeding, under-forest
+economy, modern agricultural seed industry and forestry gene protection, actively
+supported the afforestation and forest resource conservation projects with remarkable
+effect of carbon sink or carbon sequestration. We actively supported the projects
+related to protection of natural forests, animal and plant resources, the construction
+and protective operation of nature reserves, ecological function areas and national
+parks, as well as returning farmland to forest and grass land, protecting river and lake
+wetlands, and the comprehensive management of soil erosion. For non-eco-friendly
+customers and projects, we applied the rule of "One Vote for Veto".
+The Board of Directors is responsible for formulating our sustainable development strategies and objectives,
+evaluating the related risks and implementation of the strategies. The Strategic Planning and Sustainable Development
+Committee assists the Board of Directors in formulating and evaluating the sustainable development strategies and
+objectives. The County Area Banking Business and Inclusive Finance Development Committee, the Risk Management
+and Consumers' Interests Protection Committee, and the Related Party Transactions Management Committee consider
+core ESG issues such as County Area Banking Business and inclusive finance, consumers' interests protection, and
+related party transactions according to their respective responsibilities. The Green Finance Committee, the Consumers'
+Interests Protection Committee and the County Area Banking Division and Inclusive Finance Division Management
+Committee have been set up under the Senior Management, which are responsible for the management of the
+respective ESG issues, such as green finance, consumers' interests protection, County Area Banking Business and
+inclusive finance.
+Relying on our traditional strengths in areas such as inclusive finance and green finance, we have promoted the
+deep integration of the sustainable development concept with our business management, and have been committed
+to building an ESG management system with a sound governance structure, sound management mechanism and
+adequate information disclosure.
+Information on Environmental, Social and Corporate Governance
+Annual Report 2021 79
+For details of the capital adequacy ratio of the Bank and credit risk exposures after risk mitigation, please refer to the
+2021 Capital Adequacy Ratio Report published on the websites of the Shanghai Stock Exchange and the Hong Kong
+Stock Exchange by the Bank. For details of the leverage ratio of the Bank, please refer to "Appendix II Leverage Ratio
+Information".
+1 According to the relevant statistics criteria of the CBIRC.
+We optimized the measurement model and system of economic capital, expanded the application scope of economic
+capital, and promoted the coordinated development of business volume, structure, quality and efficiency. We
+constrained total capital, optimized asset structure and controlled the growth of risk-weighted assets in order
+to achieve capital-intensive development. We continued to optimize the economic capital allocation mechanism,
+highlighted the transmission of strategic goals, continuously improved the level of sophisticated management of
+economic capital, and increased the allocation of economic capital in key areas such as pandemic prevention and
+control, inclusive finance, County Area Banking Business, private enterprises and green credit. We strengthened
+the process management and control of economic capital, improved the timeliness and effectiveness of capital
+management policy transmission, and improved the efficiency of economic capital monitoring.
+Management of Economic Capital
+The Bank intended to issue write-down eligible Tier 2 capital instruments of no more than RMB200 billion equivalent,
+and use the proceeds to replenish our Tier 2 capital. The issuance plan was considered and approved at the meeting
+of the Board of Directors held on 24 December 2021 and the extraordinary general meeting held on 18 March 2022,
+and was subject to the approval by the relevant regulatory authorities.
+In November 2021 and February 2022, we issued RMB40 billion and RMB50 billion of write-down undated capital
+bonds in the inter-bank bond market of China, respectively. After deducting expenses in relation to the issuance, the
+proceeds were fully used to replenish our additional Tier 1 capital.
+During the reporting period, we improved the capital replenishment system. To replenish capital, we proactively
+expanded external sources as well as through retained profit. We enhanced the capital strength, optimized the capital
+structure and reasonably controlled the capital cost.
+Management of Capital Financing
+We implemented advanced approaches of capital management and adopted advanced approaches of capital
+measurement and other approaches in the parallel implementation period to calculate capital adequacy ratio
+according to the requirements of the CBIRC.
+As one of the Global Systematic Importance Banks and Domestic Systematic Important Banks, the Bank, in accordance
+with regulatory requirements, established a retest mechanism for the recovery and disposal plan and constantly
+improved capabilities of risk warning and crisis management to reduce our risk spillover in the crises and strengthen
+the foundation for financial stability. We closely followed regulatory developments and studied the plan for satisfying
+Total Loss Absorption Capacity (TLAC) requirements to lay a solid foundation for compliance and enhance our risk
+resistance capability. We continued to enhance the internal capital adequacy assessment process (ICAAP), carried
+out the internal capital adequacy assessment for 2021 and the specific audit of ICAAP, and upgraded the working
+mechanism continuously in order to consolidate the foundation of management.
+During the reporting period, we implemented our capital plan for 2019-2021 in accordance with the requirements of
+the Administrative Measures for the Capital of Commercial Banks (Provisional), fulfilled the restriction and guidance
+functions of capital on business, enhanced the capacity of internal and external capital replenishment and improved
+our long-term mechanism of capital management, so that capital adequacy ratio rose steadily, providing a powerful
+guarantee for business development and operational transformation. We formulated the Capital Plan for 2022-2024
+to clarify capital management principles, capital adequacy ratio targets, capital supplementary arrangements and
+management measures for the next three years.
+Capital Management
+Discussion and Analysis
+During the reporting period, the Board of Directors fully played its leadership role in the ESG strategic planning and
+decision-making by formulating the 14th Five-Year Plan of the Bank, in which the implementation of ESG governance
+responsibilities was emphasized and the development of green finance was vigorously promoted from the perspective
+of corporate governance, marking that ESG had been incorporated into our bank-wide strategy. The Board of
+Directors and its special committees thereunder participated in ESG work in a comprehensive and multi-dimensional
+manner by considering proposals, listening to reports, conducting research and attending special trainings, etc.
+Through top-down spreading of sustainable development concepts and strengthening ESG trainings for the Directors,
+we enhanced the Directors' ability to perform their duties related to ESG issues. We pushed forward the related
+work by focusing on core ESG issues such as corporate governance, green finance, inclusive finance, human capital
+development, consumers' interests protection, privacy and data security, and achieved positive results in these aspects.
+Green finance
+Governance structure
+The Board of Directors is responsible for determining the bank-wide green finance development strategy and
+evaluating its implementation. The Board of Supervisors is responsible for supervising the implementation of the
+green finance strategy. The Senior Management is responsible for setting objectives for our green finance business,
+establishing mechanisms and procedures, and implementing green finance development strategy. The Green Finance
+Committee set up under the Senior Management is responsible for coordinating the development of green finance
+business across the Bank and considering major policies and measures related to green finance development of the
+whole Bank.
+such as grain, seed, forestry, cotton, animal husbandry, aquaculture and processing
+and specified green, low-carbon and environmental-friendly policy direction. We
+continuously strengthened environmental risk management and served the national
+strategy on food security.
+Oil and gas
+Mining
+Energy
+Biodiversity protection
+Agriculture/Forestry/Animal We formulated industry-specific credit policies for agriculture-related industries
+husbandry/Fishery
+Policy
+Industry
+We formulated the industry-specific credit policies for thermal power, hydropower,
+wind power, solar power, biomass power and related industries, and proactively
+supported clean energy industries and the purification and efficient utilization of
+traditional energy. We put forward relevant requirements on ESG risk management
+and served the green and low-carbon transformation of the energy manufacturing and
+consumption.
+Green development concept was in-depth integrated with our industry-specific credit policies. We implemented the
+indicators related to efficiency, effectiveness, environmental protection, resource consumption and social management
+in the industry-specific credit policies, and continued to expand the industrial coverage of green credit indicator
+system, so that gave full play to its role in customer access, classification management, and environmental and social
+risk prevention and control.
+Policy system
+Information on Environmental, Social and Corporate Governance
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+80
+The Board of Directors considered and approved the Green Finance Development Plan (2021-2025), which defines
+the objectives, vision and emphasis of our green finance business development in the 14th Five-Year Plan period,
+and proposes to implement a series of key tasks focusing on building a multi-dimensional business system, improving
+policies and mechanisms, and accelerating the construction of a green low-carbon bank. In the 14th Five-Year
+Plan period, the Bank will strive to achieve the three development objectives, which are significant growth in the
+scale of green finance business, more prominence of brand advantages and significant enhancement of risk control
+capabilities.
+In 2021, closely following the strategic deployment of peak carbon emissions and carbon neutrality, we identified
+green finance as one of our three major strategies, and endeavoured to build a distinctive and widely recognized
+green finance brand.
+Strategic guidance
+Our credit policy system for green finance business was continuously improved. We formulated the Guidelines on
+Accelerating the Development of Green Finance Business, which focuses on four major aspects: consolidating and
+improving the market position, striving to create a first-class green brand, improving the system and mechanism, and
+implementing the environmental and credit risk management, to clarify the implementation path and key tasks for
+green finance business development. We included the green finance development requirement to our annual credit
+policy guideline, Sannong credit policy guideline and inclusive finance credit policy guideline.
+| 中国农业银行
+| 中国农业银行
+Information on Environmental, Social and Corporate Governance
+We recruited more than 20 thousand staff in 2021 to actively implement the national requirement of stabilizing
+and ensuring employment, 50.6% of which are female and 10.2% of which are ethnic minorities. We recruited
+52.1 thousand staff from 2019 to 2021, 53.3% of which are female and 10.2% of which are ethnic minorities.
+The average turnover rate over the past three years is 1.19%.
+We promoted the Young Talent Project across the Bank which connected the urban with County Areas. We
+started a project named "Hundred, Thousand and Ten Thousand" to build a team of outstanding young leaders
+at all levels of the Bank with age diversity and complementary professional strengths. We carried out talent
+exchanges between eastern and western provinces, selected outstanding young talents to work in frontier
+regions of reform. We also selected and cultivated talents in the front line of rural revitalization areas.
+We implemented the Talent Development Plan for 2019-2022. We accelerated the building of a team of digital
+transformation talents and further consolidated the talent base of digital transformation. The hierarchical
+and classified management of customer managers was effectively strengthened, and the number of product
+managers, data analysts, and technology project managers were further increased. We vigorously promoted the
+training of talents in areas of green finance, international operation, rural revitalization and emerging business.
+The dual-channel promotion mechanism for management and professional positions was further improved and
+the selection and recruitment of middle and high-level professionals was organized in an orderly manner. We
+continued to promote post title system reform, with more than 6,400 employees obtaining various post titles
+throughout the year.
+We take talents as the first resource to lead our reform and development. Focusing on building a team comprising
+digital transformation talents and compound financial talents, we deeply implemented the strategy of empowering
+the Bank with talent force and continuously improved the structure and the overall quality of our talent team.
+Talent Development Strategy
+Human Capital Development
+Information on Environmental, Social and Corporate Governance
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+We provided network training course on climate risk stress testing covering all employees of the Bank to actively
+disseminate the significance, concept and method of climate risk stress testing among the headquarters and
+branches, so as to effectively enhance our ability to provide green financial services and cope with the risks
+related to low-carbon transition.
+We conducted trainings on green finance to popularize the concept of green and low-carbon development. As
+of the end of 2021, we offered 26 online training courses and 142 thousand employees participated in these
+trainings, with the cumulative training time of up to 258 thousand hours.
+Green finance training
+We were awarded Green Bank of the Year 2021 from Asiamoney. The creative R&D work "Green Farm"
+won the world second place in the 2021 Call for Code Global Challenge which is aligned to UN's sustainable
+development goals (SDG).
+The Bank is one of the first financial institutions signing up to the Green Investment Principles for the Belt
+and Road Initiative. During the reporting period, we signed up to the Principles for Responsible Banking (PRB)
+and became a financial institution supporting Task Force on Climate-related Financial Disclosures (TCFD)
+recommendations; attended the Ecological Civilization Forum of the 15th Conference of the Parties to the UN
+Convention on Biological Diversity and signed the Joint Declaration of Banking Financial Institutions in Support
+of Biodiversity Conservation; attended the meeting of global systematic importance financial institutions in the
+Annual Conference of Financial Street Forum 2021 and signed the Beijing Initiative for Climate Friendly Banking.
+We deepened communication and cooperation, and integrated with international standards to improve our image of
+green bank.
+We pragmatically promoted our own green and low-carbon development practice. In 2021, we established a
+carbon neutrality working committee to strengthen the overall planning and implementation for our green and low-
+carbon development. We made the self-screening on our carbon emission, and continuously reduce the total carbon
+emissions and per capita emission density of the Bank by promoting green energy use, building green branch outlets,
+practising green offices, advocating green travel, implementing green procurement and creating green culture.
+Improve the image of green bank
+Promote our own green and low-carbon development
+Human Resource Cultivation
+We actively pursued external cooperation. We entered into a training cooperation framework agreement with
+China Agricultural University. We cooperated with China Agricultural University and Renmin University of
+China to organize senior management courses and special trainings on rural revitalization for the presidents
+of sub-branches in County Areas and trained 1,492 participants. In cooperation with Peking University, seven
+seminars on outstanding leadership of young talents were held, with participants of 225 presidents and 280 vice
+presidents of tier-1 sub-branches. In collaboration with the Business School of Renmin University of China, the
+Overseas Education College of Shanghai Jiao Tong University, the School of Management of Zhejiang University,
+the Institute of Chinese Finance Studies of Southwestern University of Finance and Economics, and the College
+of Continuing Higher Education of Sun Yat-sen University, we held 26 special training courses on digital
+transformation of corporate banking business (including green finance-related contents), and trained 1,949
+presidents of tier-1 sub-branches in charge of corporate banking business.
+We held special training courses on rural revitalization. In the Financial Training Institutes in Changchun, Tianjin
+and Wuhan, we held 11 training courses on rural revitalization for the heads of the 1,000 demonstration branch
+outlets of serving Sannong which were the first batch elected by the head office.
+Annual Report 2021 87
+AGRICULTURAL BANK OF CHINA
+| 中国农业银行
+In 2021, representatives of the third session of the employee representative meeting of the Bank considered
+and approved the Management Measures for Deferred Payment of Employee Performance Remuneration of ABC
+(Revised) and Regulations on Remuneration Payment of ABC. In view of the most urgent, concerned and desired
+issues of employees and foundation-level institutions, the opinions of employee representatives were solicited,
+and seven specific solutions were determined, such as configuring warm clothes and strengthening employees'
+psychological counseling.
+We have established a bank-wide staff representative assembly system to effectively safeguard the staff's right to
+information, participation, expression and supervision.
+•
+•
+Employees' Involvement in Democratic Management
+We have established a labor dispute mediation committee, formulated the Management Measures of ABC on
+Labor Dispute Mediation, established compliant and effective mediation procedures, and provided employees
+with channels to appeal against labor disputes.
+We performed climate risk stress testing. In 2021, in order to actively address climate risks, we selected the
+coal power industry with high carbon emission intensity to make in-depth analysis and research on transmission
+channel of climate risk, and independently performed exploratory climate risk stress testing. Assuming that coal
+power companies were charged for carbon dioxide emissions, the testing focused on analyzing the possible
+impact on their repayment ability and further on the quality of the Bank's related credit assets. The testing,
+with reference to the carbon price scenarios of the Network of Central Banks and Supervisors for Greening
+the Financial System (NGFS) and the carbon price changes in China's carbon trading market, set up four stress
+scenarios, namely orderly transition, disorderly transition, greenhouse world, and policy planning, and took into
+account the changes of carbon price, coal power generation, electricity price, and energy structure and other
+factors under different carbon reduction pathways. The testing took the end of 2020 as the reference period
+and used a time horizon of 30 years, assuming that companies will not make low-carbon transition during
+the testing period. The test measured the future financial performance of coal power companies based on the
+impact of climate transition risk under different scenarios, and quantitatively evaluates the risk changes in credit
+asset portfolios in terms of rating migration, default probability and expected losses, so as to promote forward-
+looking prevention of transition risk. The test results showed that the impact on customers in the coal power
+industry would be obvious due to the low-carbon transition factors, and their credit ratings would move down
+to a certain extent under the stress scenario, and the default probability would increase, but the risk would be
+generally under control. In 2021, we also participated in a climate risk stress testing organized by the PBOC
+to evaluate the potential impact of the transition to achieve the goal of peak carbon emissions and carbon
+neutrality on our credit assets. The test results showed that the credit risk of the our customers in the thermal
+power, steel and cement industries would increase under the stress scenario, but the impact on our capital
+adequacy level would be overall under control.
+We provided equal and fair career opportunities to all employees without discrimination in terms of nationality,
+race, gender, religious beliefs and cultural background, prohibited forced labor and child labor, and entered into
+labor contracts with employees in accordance with the provisions of the Labor Law and the Labor Contract Law.
+In formulating, modifying or deciding on regulatory framework or significant proposals which are vital to the
+interest of employees, we ask for opinions from employees or employee representatives to effectively protect the
+legitimate rights and interests of both the Bank and all employees.
+We conducted regular assessments and evaluations on employees, which covered key performance and competency,
+etc. The results of the assessment were fed back to employees in an appropriate manner and applied in
+remuneration allocation, promotion, training and development, awards for progress and excellence, etc. Through
+the implementation of such employee performance management, the performance levels of employees continued to
+improve, which was conductive to their capability enhancement and career development.
+In 2021, we conducted hierarchical and classified trainings through online and offline channels attended by
+2,372 thousand participants, and the coverage rate of trainings provided through all channels reached 100%.
+Performance Evaluation
+We provided trainings on compliance culture. We held special trainings and courses on compliance culture,
+employee code of conduct, Party conduct and integrity, anti-money laundering and confidentiality across the
+Bank to improve employees' compliance awareness and compliance skills.
+We supported our staff to obtain professional qualification certification. We organized position qualification
+examinations attended by 209.7 thousand participants, guided 525 thousand participants with position
+qualification certification to complete subsequent continuing professional education, so as to enhance the
+ability of staff at foundation-level institutions to succeed in personal transformation and transition to different
+positions.
+We promoted digital trainings. ABC E-Learning (a new generation online learning platform) was launched,
+which enabled us to hold special trainings widely on leadership improvement, interpretation of peak carbon
+emissions and carbon neutrality and compliance management, and deliver high-quality training resources to
+the foundation-level institutions. During the past year, ABC E-Learning has updated more than 5,700 courses,
+organized more than 150 online learning topics, and offered more than 2,500 live-streams, covering nearly
+all staff. 142 thousand participants attended the online trainings on green finance, 149 thousand on rural
+revitalization, and 61 thousand on digital operation.
+•
+Information on Environmental, Social and Corporate Governance
+88
+Employees' Interests Protection and Labor Relation Conciliation
+Information on Environmental, Social and Corporate Governance
+86
+Annual Report 2021 85
+.
+We engrained the green concept in all categories of products and services of our investment banking business and
+were committed to developing a leading bank in green investment banking.
+Green Investment Banking
+Adhering to the business concept of "green leasing", ABC Financial Leasing Co., Ltd. gradually created its
+distinctive features of green leasing to help the green transformation and development of real economy. At
+the end of 2021, its balance of green leasing assets was RMB48.841 billion, representing an increase of 34.6%
+over the end of the previous year, accounting for 64.7% of its total leasing assets. It supported 66 clean energy
+projects including wind power, photovoltaic, biomass and garbage power generation, with an installed capacity
+of 10.2686 million kilowatts.
+ABC Life Insurance Co., Ltd. participated directly or indirectly in green investment through investment modes
+such as stocks, equity, bonds and infrastructure debt investment plans. It strengthened its business access
+management before investment and effectively contoured its credit concentration in overcapacity and high-
+risk industries by complying with the requirements of industrial credit limit management. After investment,
+it constantly tracked and managed the assets by carrying out rating analysis and risk monitoring to promptly
+and accurately identify and effectively prevent risks. In 2021, it mainly invested in the green projects related
+to the areas of infrastructure, clean transportation and clean energy, with a total investment amount of
+RMBO.82 billion.
+Information on Environmental, Social and Corporate Governance
+Annual Report 2021 83
+Including the balance of the invested green bonds in non-financial institutions (according to the CBIRC) for own account and
+the balance of the invested green bonds in financial institutions for own account.
+.
+1
+ABC Investment increased the debt-to-equity investment in clean energy sectors. It cooperated
+deeply with the large central power enterprises such as SPIC, CGN and China Huadian Corporation,
+the local energy enterprises such as Zhejiang Energy Group and the private power equipment giants
+such as Goldwind and GCL to help new energy power generation enterprises reduce their leverage
+ratio and improve their business performance, and the brand of debt-to-equity investment in green
+and clean energy was initially established.
+ABC Investment regarded green and low-carbon as key development areas, and proactively built a brand
+of green for debt-to-equity swap investment. At the end of 2021, the balance of the green investment
+for its own account was RMB24.3 billion, including RMB18.6 billion in clean energy, RMB3 billion in green
+upgrading of infrastructure, RMB1.7 billion in energy conservation and environmental protection, and
+RMB1 billion in clean production. During the reporting period, RMB6.1 billion of the green investment
+was for its own account, representing a year-on-year increase of 53%, effectively helping the Group to
+implement the national strategy of peak carbon emissions and carbon neutrality.
+ABC Investment strengthened the greening of its debt-to-equity swap business
+ABC-CA actively researched and developed green products, cooperated with Morgan Stanley Capital
+International (MSCI), and applied to the regulators for set-up of ABC-CA Green Energy Select Hybrid Fund and
+ABC-CA MSCI China A-share Climate Change Index Fund. It initiated the construction of its ESG evaluation
+system to pursue embedding ESG factors in the criteria for the selection of investment targets, and gradually
+promote the greening of its stock pool and bond portfolios.
+Agricultural Bank of China Wealth Management Co., Ltd. established its ESG rating system for investment
+targets, which specified the ESG rating principle, rating standard and investment scope. It issued ESG-themed
+wealth management products, prioritizing to invest the proceeds into enterprises with good ESG performance.
+As of the end of 2021, the wealth management products under ABC Anxin-ESG-themed and ABC Tongxin-ESG-
+themed reached a scale of RMB18.5 billion.
+We reinforced the strategic and policy guidance on our green bonds business, by defining its development
+planning, objectives, tasks and policies in the Green Finance Development Planning (2021-2025) and the
+Guidelines on Promoting Faster Development of Green Finance, to promote its omnipotent development.
+We increased our investment in green bonds in primary and secondary markets. As of the end of 2021, the green
+bonds invested for our own account reached RMB88.3 billion, up 35.0% over the end of the previous year.
+Green Investment and Financing
+It innovated the green debt-to-equity swap investment model. It set up four debt-to-equity swap
+green investment funds based on its subsidiary ABC Capital with a total size of over RMB7 billion,
+giving priority in areas related to clean energy and innovation of green technology and raising
+social capital to increase the size of its debt-to-equity swap green investment. The Peak Carbon
+Emissions Investment Fund established in cooperation with SPIC with a total size of RMB5 billion
+invested RMB4 billion within just over one year since its establishment. Focusing on clean energy
+industries such as wind power and photovoltaic, the fund helped the central enterprises to relieve
+their capital pressure and integrate green energy industries. It also helped small and medium-sized
+private enterprises to improve their operation. All of those realized the combination of clean energy
+investment and the rural revitalization strategy.
+AGRICULTURAL BANK OF CHINA
+•
+We underwrote the first batch of carbon neutrality bonds and the first batch of sustainability-linked bonds in the
+market, as well as the first domestic sustainable development panda bonds.
+We proactively explored the construction of climate risk management mechanism. According to the regulatory
+requirements and international frontier research results, we pursued the establishment of our climate risk
+management framework, actively developed, applied relevant climate risk management tools, explored stress
+testing of climate risk and strengthened the management on transition risk of customers in high-carbon
+industries.
+In 2021, the Board of Directors and the Risk Management and Consumers' Interests Protection Committee
+considered and approved the revision of the Comprehensive Risk Management Strategy, which incorporated
+climate risk into our comprehensive risk management system, and formulated control measures for climate
+factors as a key area in need of credit risk management; raised the requirements to explore the establishment
+of the analysis framework for climate risk in credit business, to strengthen sophisticated management of climate
+risk, to further improve the identification and evaluation of climate risk for investment and financing business,
+and implement climate risk management requirements in the processes of customer investigation, examination
+and post-loan and post-investment management. It was also included into our comprehensive risk management
+report and was reported to the Board of Directors on a regular basis.
+Climate risk management
+We collaborated with governments to explore low-carbon green economy development models. Zhejiang Branch
+incorporated the corporate's ESG scoring set by the government into the Bank's internal greening assessment
+standard system. Before granting loans, it considered the government ESG scores and the Bank's due diligence
+requirements for the environmental and social risks as important factors to determine the interest rate. After
+granting loans, it closely monitored the ESG scores of the customers to prevent the risks associated with their
+violations of environmental laws and regulations.
+We strengthened the analysis and management of our green bond investment. Before investing in green bonds,
+we strengthened the research on the green bonds market and industry, assessed the impacts of the "double
+carbon" goal on the business operation of the enterprises and focused on the green attributes, economic and
+environmental benefits, fund monitoring and information disclosure of the green bond investment projects to
+increase the quality and effectiveness of the green investment. After the investment was made, we monitored
+the use of bond proceeds and construction progress of the related project optimizing the quality of the green
+bond post-investment report. We explored optimizing the functions of the investment trading system and
+strengthened the statistical analysis of green bonds. We actively collaborated with the third-party institutions in
+green bond investment, credit rating and other fields, and strengthened our capacity to identify and address ESG
+risks.
+We embedded ESG risk management tools in our credit IT system. We optimized its functions for environmental
+and social risk management, and enhanced the sophisticated management through labelling classification and
+system verification, etc. For non-eco-friendly customers and projects, we applied the rule of "One Vote for Veto"
+for industries with high carbon emission, we applied credit limit management and increased the withdrawal of
+loans from those potential risk customers.
+We performed ESG risk due diligence and took the assessment results as an important basis for making credit
+business decisions. We classified customers based on their exposure to the potential environmental and social
+risks, and implemented differentiated management measures. We signed an undertaking of commitment on
+environmental and social risk responsibility with key customers to enhance our risk control capability through
+contractual constraints.
+We formulated the Measures for Environmental and Social Risk Management in Credit Business, which stipulates
+the full coverage, classified and whole-process management for environmental and social risks. It was integrated
+into the Bank's credit management system and was imbeded in the processes of due diligence, examination,
+approval, credit management and post-loan management to implement our whole-process control.
+In 2021, we provided over RMB220.0 billion for enterprises through ways such as green syndicated loans, green
+M&A loans, green bonds, representing an increase of more than 80% as compared to the previous year, and the
+funds were invested into areas such as environmental governance, clean energy and green transportation.
+ESG risk management
+AGRICULTURAL BANK OF CHINA
+84
+On 11 January 2022, we listed a green bond, with a total value of USD0.3 billion, on the Hong Kong Stock
+Exchange. The net proceeds will be used to finance or refinance the eligible green assets in the green financing
+framework of ABC New York Branch. In the view of Standard & Poor, ABC New York Branch's green financing
+framework used in this issuance is aligned with Green Bond Principles (GBP), ICMA, 2021 and Green Loan
+Principles (GLP), LMA/LSTA/APLMA, 2021, and the core factor "use of proceeds" was rated as "strong".
+On 11 January 2021, we listed a total value of USD0.3 billion of the green bond on the Hong Kong Stock
+Exchange. All the net proceeds have been used for loans for wind and solar power projects.
+On 3 June 2019, ABC Financial Leasing Co., Ltd. publicly issued a three-year green financial bond of
+RMB3 billion in the national inter-bank bond market. All the proceeds raised have been invested in clean
+transportation projects.
+Green bonds
+We conducted ESG risk due diligence on issuers in the bond underwriting business, by paying attention to
+the aspects of their corporate governance, social responsibility, environmental responsibility and collecting
+and collating the related information; we encouraged and guided the issuers to disclose ESG information, and
+continued to provide guidance during the duration of the bond.
+As a shareholder of National Green Development Fund, we actively participated in the operation of the fund and
+project investment.
+Information on Environmental, Social and Corporate Governance
+We innovatively created an employer brand of "ABC Elite Plan", under which we set up "Elite Trainee"
+positions. We continuously optimized the training schemes for new employees, and arranged for seat rotations
+in foundation-level institutions, R&D departments, data departments and subsidiaries according to their
+specializations, so as to build a stage for young employees to realize their potentials, grow and develop in an all-
+round way.