Bank of China Aktie

Hello, investors, analysts, media friends, good afternoon. Welcome you and my big thanks to you for participating in 2026 BOC interim results release amid this rain. My name is Liu Chenggang, EVP and Deputy Secretary of BOC. Today's release will be co-hosted by me and BOC spokesperson Madam Yu Ke.

This release is web broadcasted simultaneously. Welcome friends online. I want to introduce the leaders of BOC. Vice Chairman, President, and Chief Compliance Officer Mr. Zhang Hui, EVP Cai Zhao, and EVP Wu Jian, EVP Huang Xueling. We have our directors online. The 2026 interim results of the bank have been announced externally. The PPTs can be downloaded from our website. Today all the financial data are compiled according to IFRS. Now I want to give the floor to Mr. Zhang Hui to introduce to you the interim results of the bank.

Dear investors, analysts, media friends, good afternoon. Welcome you to BOC 2026 interim results announcement. It's a great pleasure to meet old and new friends. 2026 is a meaningful year for BOC. On the one hand, as the first A+H dual-listed bank in China, this year marks the 20th anniversary of our IPO. After 20 years of continuous operation, our bank, with a history of more than 100 years, have achieved a better corporate the governance, globalized operation, and diversified business transformation with asset scale grew by 8x and overseas institutional coverage expanded from 27 countries to 64 countries.

We are coming from a big bank to a stronger bank. This year also marks the end of the 14th Five-Year Plan and the beginning of the 15th Five-Year Plan. In the past five years, the BOC continuously improved its comprehensive stress, operating revenue, net profit, and NIM stabilized first among peers. The net interest income contribution increased to 33%.

Asset and liability grew by more than 50%. The globalization advantage has been further consolidated. Overseas profit contribution improved by 4.6 percentage points. NPL, the lowest among peers. The CAR ratio ranks as number eight among G-SIBs. In the first half of the year, we have completed our operating targets with good quality enhancement.

First, financial performance achieved a steady growth. In the first half, operating revenue RMB 357.1 billion, profit before provision RMB 230.4 billion, an increase of 8.41% and 9.77% respectively. Net profit attributable to shareholders of the bank grew by 4.67% and 5.10% respectively. The growth rate achieved quarter-on-quarter growth since 2025. NIM stabilized 1.27%. Net interest income grew by 10.20%. Cost income ratio decreased by 1.68 percentage point. Operating efficiency further enhanced. Asset and liability continuously improve its quality. Total asset exceeded RMB 40 trillion, an increase of 4.77% as compared to the end of last year.

Loan and bond and other high-yield assets improved by 1.32 percentage point. Domestic RMB loan grew by RMB 1.2 trillion, a growth of 5.98%. Total liability reached RMB 36.95 trillion, a growth of 5.11%. Overseas current deposit percentage also increased. Domestic RMB deposit interest rate reduced by 22 basis point. Liability cost is within control.

Asset quality is stabilizing. NPL ratio 1.22%, down 0.01 percentage point. Newly incurred NPL reduced. NPL balance also reduced. Provision coverage ratio 285%, up 0.48 percentage point by the end of last year. CAR ratio 18.31% and 80 basis points higher than the previous quarter. BOC stick to the principle of creating value through prudent operation and generate shareholder trust through stable return.

Since IPO, BOC have made payout of cash dividend of more than RMB 1 trillion with payout ratio maintained at a high of 30%. To mark the 20th anniversary of our IPO, we suggest that the payout ratio to be increased to 31%, and we declare a cash dividend of RMB 1.19 per 10 share. We sow in spring and reap in autumn, hard work will be rewarded.

At the end of March, in our annual result release BOC talk about our six orientations. In the first half of the year, our good performance demonstrated the correctness of our thoughts and the correctness of our six orientations. First, I want to introduce you optimization. Our global competitiveness have been further improved. Globalization is within the gene of BOC, and also the strength of our operation in 100 years.

In the first half of the year, we focus on three advantages of global operation, further polish our brand, and create pillar for our performance. Overseas net profit contribution maintained above 27%. We continuously expand our global network. Our global network cover 64 countries and regions, and number two in terms of institutions within the world.

In Hong Kong and Macau, we maintain a leadership position. In G20 countries, BRIC countries, and 10 ASEAN countries, and 21 APEC economies, we all have institutional presence. BOC have provided high quality globalized financial services, which won market recognition. In this year, we won clearing bank status for RMB in England, Sri Lanka, and Indonesia. The RMB clearing network covers 19 countries and regions.

We underwrite Panda bond of 38 billion and assist overseas issuers to get RMB direct financing exceeding 110 billion. Cross-border advantage are overwhelmingly leading the peers. Cross-border RMB business is a scale rank as number one in the world. We fully leverage our global service ecosystem and serve companies going global and investing into China.

We iteratively upgrade our multi-layer, multi-dimensional global services, and we help the country contribute to the establishment of overseas comprehensive service system by the country. We rely on our network in 64 countries and regions to provide cross-border investment promotion endeavors of the government.

We provide services to 90% of the Fortune 500 companies in China, and we provide 7x24 multi-currency cash pool services. We provide across-the-clock services and fund transfers and settlements can be done within seconds. We take the lead and establish the first Chinese global custody bank overseas, and cross-border custody scale increased by 16.20%, 19.38% respectively.

We upgrade BOC global salary payment and provide stock incentive for services to listed Chinese companies in overseas market. We enhance global organizational strength. In the past 100 years, we have accumulated capacities in corporate governance, talent team, compliance system, and risk control capacity. This is our most precious asset.

In the first half, we further strengthen regional intensive and integrated development. We further consolidate Hong Kong regional headquarters, strengthen BOC Europe regional headquarter, and we have established expatriate register with more than 10,000 talents on the list.

In international settlement, FOREX transactions, AML compliance, we have a large talent reserve. Also we further promoted overseas compliance management. Overseas compliance management momentum is stable. We further establish a bank-specific risk management policy, and we review this policy on a regular basis. We align risk appetite with our strategic goals and development capacity, so as to elevate our risk control capability to a new level.

Second, we expand into new businesses to serve the real economy. We focus on the five financial priorities, and we are a leading bank in tech finance. Tech loan balance take up more than 1/3 of our total corporate loan. We, in total, served 200,000 tech companies. We have a full team presence across key technology sectors. We provide services to 5,200 core AI companies and in total, green finance balance grew by 13.32%. Green bond underwriting scale, investment scale rank among the top in the industry. Inclusive finance provided to micro and small enterprises grew in amount and the customer number by 10.6%, 8.19% respectively.

Individual pension contribution grew by 54%, and elderly care industry loan balance grew by 50%. Digital finance empowerment enablement have been further enhanced. MAU of mobile banking increased by 6.6%. Cross-border E-commerce transaction amount grew by 24% year-on-year. Digital RMB consumption amount are among the top in the market. POE loan balance grew by 9%.

We also support the domestic consumption market loan in the first half, RMB 200 billion, and help to stabilize the real estate market. In total, we provided individual consumption loan to 3 million customer. We also provided interest rate subsidy for installment payment. We make a continuous movement to create value.

We cope with opportunities and challenges in external environment, and we actively promote volume and price synergy, optimize domestic and overseas asset and liability structure, fully leverage our global presence and multicurrency businesses. NIM stabilized in the first half. NIM improved by 2 basis points as compared to the first quarter. That's for RMB. For foreign currency NIM, it improved by 13 basis point, contributing to group NIM stabilization. We continuously optimize our revenue structure and expand into wealth management, payment settlements, transactions custody and other capital light businesses.

We expand the source of net interest income to generate higher comprehensive return. Individual customer wealth management, custody business, settlement and clearing fee income grew by 22%, 10% and 4% respectively. Net interest income percentage was more than 13%, among the top in the peers. We stick to capital intensive operation, and we focus on the philosophy of saving capital and create value at the same time.

We optimize our off-balance sheet and within balance sheet asset structure, strengthen refund management of capital, reduce and optimize the capital consumption of businesses, and expand capital light businesses.

Fourthly, we want to be stronger in many businesses to provide comprehensive services to our customers. The total number of corporate customer exceeded 9 million, a growth of 7.54%. Targeting the long-term development, we focused on the government clients and connected party actors to provide an ecosystem of services.

We are providing a banking plus ecosystem for open-ended financial services. We are also expanding seven customer segments, and our effective individual customers have expanded to 409 million. For mid-to-high end individual customers, there has been a 5.84% over the end of last year. We have enhanced key business products and services such as third party custody, payroll services, fast payment, and social security card-like products.

For cash management accounts and daily average deposits, they have grown by 7.94% and 10.69% respectively. For asset custody business, the total size has reached RMB 26.75 trillion with 10.27%. For the comprehensive financing projects, there has been a 20% year-on-year growth. Number five, we have made our business development even more stable with the balance between development and security underpinned by comprehensive risks management.

We have pushed forward the look-through risk management for domestic and overseas institutions, making risk management more capable, effective and efficient. Second, we have strengthened asset quality management by optimizing the longer acting mechanism for loan management, intensive and centralized measures, and the resilient measures to dissolve the NPL assets.

Thirdly, we have further optimized internal controls and compliance management with a three line defense system, with compliance and risk management always in place. Number six, we are more tilted towards what we call intelligence. We are pressing ahead with digital intelligence empowerment and underpinning technology stack. We are pressing ahead with 40 technology strategic projects.

The delivery cycle has been reduced by 15% in terms of timing, and we are expediting the plan of AI Plus. For BOC AI large language models, there has been over 32,000 customers covering 3,800 scenarios. Number three, we are making our channels more efficient and the paperless processes have been expanded to 70%.

Number four, we are deepening science and technology innovation and expansion of results. We have deployed over 190 innovative results with 37 high value achievements being incorporated into rollout programs. Last but not the least, the board meeting this morning adopted the 15th Five-Year Plan for BOC, establishing our priorities and directions for the next five years of high quality development.

We are building ourselves into a strong financial institution, focusing on six areas of capacity building. We are going to improve our capabilities to serve the real economy, global footprint, and international competitiveness. We are enhancing comprehensive customer service capabilities, risk management capabilities, integrated operational capabilities, and a high caliber talent pool.

For the second half, we are going to press ahead with our targets orientation, mid to long-term planning, and the focus on tech financing and other key areas of priority. We are going to better serve the real economy while giving full play to our globalized footprint and strengths with comprehensive customer services. We will firmly guard the bottom line of no systemic financial risks ever happening.

We are going to leverage this good momentum to roll out the 15th Five-Year Plan while pressing ahead with high quality development, with sustained long-term value so as to pay back to our customers, investors, and the entire society as a whole. Thank you for listening.

Now let us kick off the Q&A. Please ask one question every time and please identify yourself with your organization before asking the question.

Now the floor is open to analysts and investors.

Lady from the sixth row.

Thank you for giving me this opportunity. I am from Guotai Junan Securities. [Indiscernible], my name. I have a question about asset and liability management.

Since the beginning of 2026, lower speed and higher quality has become the new normal. I would like to invite management to talk about asset and liability management for the second half of this year and key loan extension directions, especially the balance between domestic and overseas loan extension for the mid and longer-term future.

In this new development stage of the 15th Five-Year Plan, how do we find the right balance between growth and quality?

Thank you for the question. We have continued to play the role of serving the real economy as a key player while transmitting the relatively easy monetary policy with multiple measures. For example, for the first half of this year, we grew our RMB loan by 5.96% higher than the industry average. We are also adding up to a bond investment with 10.6% growth rate in our domestic business, higher than that of last year.

We focus on tech, green, and inclusive finance with higher than average growth rate. We are also seizing opportunities of foreign trade development and Chinese companies going global. Our overseas commercial banking loans have created a five-year high with double-digit growth for overseas RMB denominated loans. We are shifting gear in economic development and restructuring.

As you have pointed out, lower speed and high quality has become the new normal. We are going to cater to these trends while finding the right balance between domestic and overseas market and the right balance between volume and price so as to push for balanced development of asset and liability management.

How do we find the right balance between domestic and overseas loans? Let me focus on the two following aspects. Our domestic business with the stable overall volume and a better service for key areas. We are going to make our support for real economy more efficient and effective.

We are going to make sure that our RMB loan growth rate is higher than average. We will continue optimizing loan structure while supporting more and more new quality productive forces. We are going to focus on the five priorities with tech innovations, green development, and mid to long-term manufacturing as the key areas of loan support. We are aligning ourselves with the key projects of the 15th Five-Year Plan of the country.

We are also implementing the synergistic tools between fiscal and monetary policies such as making use of fiscal industry interest rate subsidy tools. For overseas business, we will continue to regard globalization as a core mandate while maintaining a good growth momentum for loan extension, serving, bringing in, and going out initiatives.

We will focus on smart manufacturing, renewable energy, new materials, and the biopharmaceutical industry as key industries of support. We are also providing more and more better financial services for foreign companies. In this way, we are providing comprehensive and better quality comprehensive financial services for Fortune 500 companies and leading Chinese companies. We are assisting in the buildup of RMB ecosystem with ensuring a high quality business development of overseas institutions.

Talking about how are we going to find the right balance between growth on the one hand and quality on the other during the 15th Five-Year Plan. During the morning session, the board adopted our 15th Five-Year Plan, establishing a blueprint for our next five years of development and growth in order to implement our own 15th Five-Year Plan while analyzing opportunities and the risks and the external environment, and soliciting extensive opinions.

We will continue to focus on the five priorities of the financial sector, enhance comprehensive risk management and compliance management. We are going to strengthen our global talent pool, and we are going to further promote global international use of the RMB. Focusing on seven priority tasks. We have broken down those tasks into specific projects.

We are going to press ahead with the implementation of the 15th Five-Year Plan and development blueprint, and translate it into high quality results. Talking about asset and liability business, we are going to focus on four strategies with better balance between scale and quality.

First of all, continue to optimize asset and liability structure. On the asset side, we will strengthen the varieties, the industry targets, and the duration management of loans while focusing on the five tasks and loan support for key industries and sectors.

We will give a better play to loan investment in our asset allocation with the right scale and issuance tempo. On liabilities, we are going to focus on payroll services, fast payment to third party custodian, cash management, and other key products and services.

We are going to expand sources of low cost funding while optimizing deposit structures and lowering, optimizing our liabilities cost. Secondly, we are going to strengthen our capabilities of value creation with comprehensive coverage of different modalities of a financial industry. We are going to transform our revenue structure by sparing no effort to develop payment settlement, treasury management, bond underwriting, global custodian services, and agency trading. We will go all out to expand the non-interest revenue.

Thirdly, we are going to expand our global footprint and the strengths. We will continue to optimize our global footprint and the service mechanisms, while further enhancing profit contribution from overseas institutions. We are going to further help with internationalization of the RMB, helping Chinese companies go global, and help create benchmark brands for Chinese companies going global. We are going to provide comprehensive financial services for our clients in the overseas market.

And we will continue to enhance financial market business activities. Number four, we will continue to solidify risk management and compliance management with comprehensive capabilities and deployment.

We are further strengthening our look-through risk management and compliance capabilities, especially in terms of key sectors and business areas, so as to ensure the overall stability of our asset quality. At the same time, we will continue to provide for forward-looking judgment analysis for market risk and liquidity risk, et cetera.

I hope that would answer your question about our asset and liability management and our implementation on the 15th Five-Year Plan.

Thank you, President Zhang. Next question please. The gentleman from the second row.

Thank you. I am from CICC, Yan Jiahui by name. Over the past several quarters, we could see that BOC's NIM has continued to stabilize. Could you help analyze the drivers?

How do we identify the short-term impact and the long-term impact for the second half of 2026? What are the sources of pressure and support, respectively, for the NIM development? There are greater expectations for rate hike by the USD. What is going to be the impact on our overseas NIM and investment returns?

As I am in charge of asset and liability business, I am going to provide you with some answers. The RMB market rate is kept at a reasonable low level while key foreign currencies are observing higher interest rates.

Our global diversified currency allocation has been further brought to play. Starting from Q2 2025, we started to stabilize our NIM, and for the first half of 2026, it improved by one basis point to 1.27%. In the shorter term, the negative impact is under control, and there has been a repricing of mature long-term deposits of the RMB. For the mid to longer term future, we have exercised comprehensive management, striking a balance between volume and price.

For the first half of this year, with reasonable targets, we are highlighting the synergy between volume and price. Domestic RMB loan maintained a flat and even growth, and also newly incurred loan deposit stabilized. A loan interest rate stabilized marginally with yield remarkable improve as compared to the first half of the year. Also group foreign currency NIM increased a lot as compared to last year, contributing to stabilization of group NIM.

Overseas core asset maintained a faster growth, while foreign currency interest rate maintained at a relatively high level. That is why in the first half, overseas institutions loan growth are better than the previous year, and the bond investment grew faster.

While for overseas low cost capital and the fund acquisition capability are gradually enhancing in global custody, payroll services, cash management, and we are improving. Also in treasury funding agency businesses, the contribution from this business are growing, and also customer deposit interest are declining.

In the first half, overseas institutions current deposit contribution are increasing, while foreign currency deposit and loan spread marginally improved. Overseas institution operation mainly rely on the foreign currency NIM, and it is higher than domestic RMB NIM.

In terms of pressure, the RMB new loans interest rate are stabilizing. However, when credit are slowing down and the quality are improving, the overall asset yield is under pressure. On the supporting factors, RMB liability cost are reducing, and we will gradually control the high cost deposit by volume and by price, and continuously optimize the deposit structure. In the latter half of the year, we will continuously lower our deposit cost.

On asset side, we will optimize the asset structure, and high yield businesses will gradually grow. Risk-based pricing capability enhancement will further enhance our asset yield. Foreign currency NIM contribution will continue. Foreign currency asset percentage of the bank is rather high with foreign currency NIM are higher than RMB NIM.

The U.S. dollar interest rate may be uncertain in the near term, and we are confident that through active adjustment of asset and liability, we will continuously improve the resilience of our NIM.

Thank you. That's all for my answer to your question. Because we have many H share analysts online, now we will invite our meeting assistant to connect friends online to ask a question.

My name is [Li Lin Li] from JPMorgan Chase. My question is about non-interest income.

BOC's non-interest income performance was very stable in the first half of the year. Can management tell us the drivers of non-interest income growth?

Can you help us to analyze the features and the drivers of non-interest income by business lines and by region, and what is your prospects for the latter half of the non-interest income?

Now the floor is given to EVP Huang.

Thank you for your question. The economy of the country is stabilizing with positive foreign trade growth and also active transactions in the capital market contributing a good environment for non-interest income growth of the bank. BOC actively promote business transaction and expand the non-interest income sources. In the first half of the year, non-interest income stabilized and improved for the better.

The non-interest income of the bank was RMB 120.38 billion, an increase of 5.04% year-on-year. The percentage of non-interest income to total income was 33.71%, mainly benefiting from settlement clearing agency sales and the financial markets performance.

In terms of the drivers, I want to list four. First, we continuously optimize the supply of high-quality financial services with a steady growth in settlement and clearing. By the end of June, total corporate customer accounts and total corporate settlement accounts grew by 7% respectively, leading to 6.83% growth of domestic corporate settlement fee. Debit card payment amount exceed CNY 4 trillion.

Commission fee growth grew by 6.5% in this category. Cross-border RMB settlement amount, international settlement amount, e-commerce transaction amount grew by more than 20% respectively, contributing to continuous growth of corporate international settlement fee and commissions.

Second, we continuously enhance our wealth management capacity and satisfy customer demands to upgrade their asset allocation. We establish a global integrated asset allocation system and provide more products to our customer.

Agency sale, the fund, and wealth management product exceeded 7,800. Individual customer investment category financial asset grew by 7.16%. Fund agency sale fee grew by 31%, and agency wealth management fee grew by 17% in Macau and Hong Kong. They are working hard to increase their fund agency sales income by 4.6%.

Our integrated operation companies also strengthen their fee income by interaction with headquarters, stock sales, fund, and wealth management products. We also improve our global custody service system.

We are the first Chinese bank to offer global custody service among Chinese peers, and in the first half of the year, group custody asset scale grew by 10.27%, leading to 10.29% increase of our custody business revenue. Domestic asset custody and wealth management achieved double growth with fee income grew by 12%. Overseas custody asset, cross-border custody asset grew by 16% and 19% respectively. The scale ranks as number one among Chinese peers, leading to cross-border custody fee business grew by 13.09%.

We further leverage our strength in global financial market with a steady growth in investment and transaction business. We strengthen our professional judgment about macroeconomy and financial markets trends, effectively balance between risk and investment opportunities and provide 24/7 uninterrupted services to our customers.

Looking into future, the macroeconomy will be stable in China and the structure will be better. In a low interest rate environment, wealth management need will be further released.

We will continuously consolidate the foundation for non-interest business, since domestic and overseas opportunities rely on domestic operation and create international global synergy to maintain the contribution of non-interest income to total revenue amid low interest environment. We will steadily enhance payment and settlement business.

This is the cornerstone of our non-interest income. We will further expand our leadership in international settlement, cross-border RMB settlement, and also promote faster payment and credit card business enhancement so as to lay a solid foundation for non-interest income. Second, we will further expand wealth management, asset management custody services. The customer have a need to upgrade their asset allocation and allocate more to wealth management, asset management products.

We will rely on our global advantage and channel resources, expand agency sale of fund insurance products, wealth management products, and precious metal products. Rely on asset custody and wealth management capability, we will further enhance the contribution from wealth management and asset management.

Third, we will continue to enhance our competitiveness in financial market amid market volatility. We will further enhance our client driven transaction business revenue. We will strengthen market assessment and strengthen active management of bond holdings and enhance business synergy for bond investment businesses so as to generate more non-interest income.

Thank you. Now we welcome more questions.

Thank you for giving me this opportunity. My name is Claire Ouyang from Goldman. I have a question about globalization of the bank. The global competitiveness of the bank is further consolidated in the first half of the year. Looking into the latter half of the year, under the 15th Five-Year Plan period, what are the opportunities of the back half in global operation, and how can you turn this advantage into profitability?

Recently, we hold a company day in Shenzhen to further expand our globalization. Globalization is within the gene of BOC and also the strength of the bank in our past 100 years of operation. In recent years, global operation of the bank further strengthened and contribute to our income amid low interest environment. In the first half of the year, we found three highlights.

First, financial contribution maintained at high level in the first half of 2026. Overseas net profit, $6.4 billion, contributing to 27.21% of total group net profit. ROE and cost income ratio are better than domestic performance and overseas NIM increased by five basis point quarter-on-quarter, 11 basis point year-on-year. Supporting the stabilization of group NIM.

Second, maintain high quality growth in various businesses. Overseas asset scale exceeded $1.34 trillion, up 5.67% YoY, and loan grew by $26.1 billion, up. The growth rate was 5.82%. Asset quality was stable. At the end of June, overseas non-performing loan amount, NPL ratio, reduced by CNY 5.3 billion and 0.2 percentage points respectively. In Hong Kong and Macau, the NPL ratio was better than peers.

Looking into the latter half and the next five years, there are many Chinese companies going global and they are more influential globally. During the 15th Five-Year Plan period, BOC will continuously take globalization as our priority and turn our globalization advantage into profit growth.

During the 15th Five-Year Plan period, we will continue to maintain overseas business contribution to the group, and the contribution rate of overseas institution in terms of net profit will make new breakthroughs. In the following aspects, first, in the forward-looking way, we are going to make global arrangements for assets and liability.

Now our overseas assets exceeded $1 trillion, accounting for 22% of our total assets. With interest spread between RMB and foreign currencies, we are carrying out cross-border asset allocation to play hedging roles on the asset side. Our overseas institution loans and bond business continue to grow on liabilities. Current savings are accounting for a bigger share in the deposit structure for our overseas institutions with lower cost.

We have put in place leading amongst Chinese peers, group wide funding pool for global allocation. At the same time, we will continue to strengthen interest rate and exchange rate risk management by optimizing business structure, giving full play to the interest spread between RMB and foreign currency, and assisting high quality development of asset liability development for overseas.

Secondly, we are going to further leverage global network and infrastructure while enhancing non-interest business competitiveness. For international financial institutions, the G20 members, five countries of the BRIC, 10 ASEAN countries, and APEC members, we have achieved complete coverage.

Our payment and clearing network has covered 60 countries and regions. Our RMB, a number of RMB clearing banks is number one amongst our peers, is the only LCH designated PPS settlement bank and the first Chinese member. Our global custodian service covered 100 plus countries and regions with extensive infrastructure and layout. It is one of our unique advantages, able to provide a complete suite of products and services.

In terms of financial markets business, we are going to further expand customer driven trading and global custodian services so as to further add up to contribution of these business lines. Thirdly, we are going to drive up further synergies between domestic and overseas business by giving full play to our global services for our 37 domestic branches. They are also important bonds for global connections such as Shanghai International Financial Center and Hainan Free Trade Port, and the Hong Kong, Macau and Guangdong Greater Bay Area deployments. It will help us further enhance our comprehensive revenue.

Thanks to the above mentioned three pathways, we are going to turn global opportunities into concrete financial returns and shareholder value. Thank you.

Now let's go back to the on-site Q&A. Next question. The lady from the left, from the first row.

Thank you for giving me this opportunity. I am from CITIC Securities, Xiao Feifei by name. I would like to congratulate BOC on your business performance. I have a question about asset quality for the first half. There has been a very good asset quality. The question for management is what are your views on sector specific risks? What about the provision levels for the entire year?

Thank you, Ms. Xiao from CITIC Securities. EVP Wu Jian, please handle this question.

Thank you for your question. It is fair to say that since the beginning of 2026, confronted with the complex changes at home and abroad, the Chinese economy has displayed a development momentum of overall stability and trends towards new sectors and higher quality development.

In this process, we have carried out proactive management of credit risks with even more effective measures. We have further enhanced refined management measures, and the collection and resolution quality has been better and higher. For risk management for the first half, the results have been good, resulting in overall stability in asset quality. By the end of June this year, the NPL ratio stood at 1.22%, 0.01% lower than that of end of last year, continuing to stay at a low level.

For overseas institutions, the NPL ratio and NPL balance both dropped. Our provision coverage ratio exceeds 200%. Therefore, our risk resilience capabilities and preparations are adequate and reasonable. If I take a look at the sources of pressure for risk management, there are three of them.

First, domestic individual business or personal banking business will continue to pay attention to personal loans asset quality evolution, with strengthened management of overdue and NPL management. Second, for domestic corporate business, we will do a better job in forecasting risk developments so as to press ahead with the risk resolution in an orderly way.

Thirdly, our overseas business will continue to strengthen risk analysis response and resolution in key areas and sectors while continuing to solidify our global advantages. Looking forward to the second half of 2026, despite persistent complexities in external environment, the Chinese economy will continue to grow in a stable way with further improvement.

In this context, the Bank of China will continue to balance between development and security by strengthening risk analysis and guarding the bottom line of no systemic financial risks. We will continue to optimize the loan structure while further support the infrastructure development and higher level openness.

Second, we will be very stringent with the bottom line of asset quality by controlling incremental growth and optimizing existing stock of a business. We will focus on key business lines, key areas, and key sectors and key customers with forward-looking identification, proactive management, and precision resolution.

We will continue to adhere to the principle of prudential provision making. Thirdly, we are going to strengthen intelligent and smart capabilities in risk management by leveraging data-driven technologies and other new technologies.

With technology empowerment, we are better able to identify risks with early warning and resolution, making risk management more effective. Number four, we will continue to focus on key areas and sectors in terms of overseas business risks. In particular, we will pay attention to over-concentration of loan expansion in overseas business so as to ensure overall quality and stability of asset quality for our overseas business. We have every confidence in maintaining a stable asset quality throughout 2026, with adequate risk provision and compensation capabilities.

In the interest of time, so much for questions from investors and analysts. If you have any further questions, please talk to investor relationship management department.

Now, let me hand back to Yu Ke, our spokesperson for Q&A by media friends.

Thank you, President Mr. Liu. I am spokesperson Yu Ke for Bank of China. I would like to welcome all of you to our press conference.

With the golden autumn around the corner, we are scaling new heights in our stable development. I would like to thank all of you for your consistent support and interest. We are going to leverage this opportunity to conduct an effective Q&A. Now, before asking your question, please identify yourself with your name and press affiliation.

The lady from the first row, please.

Hello. I am from Xinhua. Tech finance is one of the five priorities for financial sector in China, as well as a key sector for BOC. At the beginning of our 15th Five-Year Plan in tech finance, what are going to be the breakthroughs and what are going to be the future plans?

Thank you, journalist from Xinhua. President Zhang Hui, I am giving the floor to you.

Thank you for your interest for tech finance by Bank of China. Tech finance is one of our long-term business priorities.

For the first half of this year, we continue to register positive results. By the end of June, tech finance accounted for 1/3 of corporate loans. We have provided tech loan support for over 200,000 companies. At the beginning of year, according to the National 15th Five-Year Plan, and during the next five-year period we would focus on modern industry system and the high level tech development amongst a total of 12 strategic priorities.

According to BOC's 15th Five-Year Plan adopted this morning by the board, tech finance will continue to be leveraged as an important driver for us to optimize our business while supporting national priorities. It has further highlighted tech finance role in BOC within the next five years.

We will continue to give play to full cycle customer service capabilities and a full stack product support. We are going to deploy tech-enabled risk management capabilities as well. Thanks to the development of those strategies and the structures, it will assist in higher level tech development by ourselves. We are going to focus on three aspects.

First, for industrial layout, we are going to expand from standalone developments to industry-wide coverage. Industrial chain by industrial chain, we are going to establish a paradigm of one chain, one strategy, and one plan, so that standalone solutions we are going to join dots into lines.

This effort has already been rolled out. Starting from the beginning of 2025, amongst our peers, we were the first to roll out our AI industrial chain action plan, covering the foundational layer, innovation layer, and application layer of AI and industry. We are supporting 5,200 companies of this kind with RMB 660 billion of loan support. For biopharma and commercial space industry, we have regarded them of the key industry to enjoy our support.

We are constantly enhance our capabilities in this regard. In tandem with the national strategies, we will further refine our strategies for sector specific support. We are going to give further play to our global footprint, following tech companies in their global presence and expansion. That is going to be our next step of focus in supporting this sector.

Second, we will continue to focus on the iterative process of our products. On the one hand, we should better serve the full life cycle requirements of tech companies based on their early and midterm trials, commercialization, and global expansion, as well as the need to provide services for tech talents.

BOC will establish complete suite of products to support all those six stages or imperatives. In this way, our support for tech companies is more precise and stage specific. For example, we are offering sci-tech innovation loans and loans for new and special industries and sectors as well as guarantee loans for individual entrepreneurship. On the other hand, AI, we have rolled out BOC Sci-Tech Innovation Computing Power Loan.

We have also rolled out the R&D loan, new and excellent quality catalog loan and centralized sourcing loan for pharma and pharmaceutical and other companies. During the 15th Five-Year Plan, we are going to offer a full stack products in order for our customers to enjoy tailor-made and precise services.

Across the different services and products, we are going to provide better connections so that our products and services will accompany our clients throughout their life cycle. Thirdly, we are going to focus on collaborative ecosystem.

For sci-tech and innovation companies, they need not only loans. They have a need for bonds, equity, and insurance products as well. BOC in line with the needs of these tech companies, we are focusing on establish a financial services ecosystem to achieve a multi win. We are strengthening group-wide interaction and synergy.

At the end of last year, we have issued a plan to provide group-wide services to our customers. We try to achieve a synergy between bond, loans, and insurance and the leasing so as to provide multi-sector services to our customer.

This ecosystem have been established for 40 projects and covering quantum computing and AI. On the other hand, we continuously expand the ecosystem of cooperation, continuously strengthen our cooperation with different local and government promoting fund, working together with different sectors to gather resources from various sectors to contribute to the development of tech sector.

Under the BOC Tech Innovation Ecosystem Partnership, we have organized seven activities, attracting 2,800 companies and 5,000 investment institutions to attend such activities. We will further expand the connotation and the externality of such ecosystem so as to provide a long-term companionship to tech companies, better help the growth of tech companies. Thank you. That's all for my response.

Thank you, President Zhang. Now we allow further questions. First row, on the left side.

Thank you for giving me this opportunity. I'm from Hong Kong Commercial Daily. I'm very happy to attend this press release on occasion of 20 years anniversary of dual listing of BOC in A and H share. I want to ask a question. What kind of competitive and comprehensive financial services will be provided by BOC for companies going global and cross-border presence?

Thank you for your question. I want to give the floor to President Zhang Hui.

I will answer your question. At present, Chinese companies going global are changing their business models and features of overseas investing. How can we better serve Chinese companies going global is an important responsibility of BOC. BOC will provide integrated financial services to companies going global in four aspects.

First, we will further consolidate our advantage and lay a solid foundation for providing diversified products to our customers. Globalization is our distinctive feature, and our global layout is the foundation for serving companies going global. Our global services network are further expanded. We have served about 530,000 companies in overseas market, and also we have enhanced interaction between commercial banks and non-bank financial subsidiaries, and providing insurance, bond, loan, and leasing services in an integrated manner.

Cross-border financial services capability of the bank are continuously enhanced. Second, we will focus on the pain points of companies going global, helping them to address their bottlenecks. Chinese companies going global are shifting from commodity sales to technology transfer and capital investment, and they have local operation and digital management as well. BOC will seize this opportunity, optimize our services, and help Chinese companies going global in cross-border payment and settlement, and we will help them to increase the efficiency of payment.

The listed currency pairs reached 45, and we can provide foreign currency services for 100 currencies. For Zambia, Mauritius, and other small local currencies, we also provide services. We are improving smart middle office services and try to improve the efficiency of services provided for Chinese companies going global. In the past, account opening was slow, and now we provide easy account opening services for Chinese companies going global.

With domestic application, they can open their overseas account in BOC. We have seven by 24 clearance services. Multi-currency fund transfer can arrive your account within seconds. We help the companies to address the exchange rate risk and the interest rate risk, and helping them to come up with hedging solutions.

We provide derivative products in 90 currencies. For long-term project financing needs of the companies, we provide multi-currency loans at the maximum 30 years of maturity, so as to provide controllability and stability of funding for major projects.

Third, we have targeted empowerment of companies. Previously, BOC worked together with relevant entities to provide 1,300 Chinese companies going global with our questionnaire to ask their needs. We summarize their most urgent needs. Based on this questionnaire, we set up a sailing and long-term shipping by name to service solutions.

On August 27th, we launched our service solution in Shenzhen to the public. We look at the different stage of needs of the customer provider, differentiated services to them. For a launch product, we target companies going global for the first time. We also have a long voyage service solution targeting companies who have been in overseas market for many years.

Second, we focused on the major industries with global expansion of Chinese companies. For different industry and a different country, we come up with specific solutions. For e-commerce, building, automobile, and in total, 10 key industries and 10 major countries, including Indonesia and Brazil. We have provided country-specific service guideline. Fourth, we gather resources to set up ecosystem for providing services to financial market. We work together with COSCO and China Merchant Banking Group, and The Export-Import Bank of China, and CICC and King & Wood Mallesons law firms and Lixin accounting firm.

We work together to establish global service alliance, gathering specialties in finance, logistic, law, accounting, and think tank. In this way, we can help companies going global with better policy advice, legal compliance, project matching, and financial services as well.

We can provide them with one-stop services. BOC will rely on our one-point access global response mechanism to support Chinese companies going global in an end-to-end manner. Leverage our unique advantage of global presence to empower Chinese companies' global development and to enable them to make new breakthroughs. Thank you for your question.

Thank you, President Zhang. Now we allow further questions. The second row, the lady in the middle.

I'm a journalist from 21st Century Business Herald. My question is about consumption. The recent Political Bureau of the CPC Central Committee meeting stressed the need to expand the domestic demand. What are the achievements made by BOC in the first half in expanding domestic consumption, and what are the measures adopted by the bank to support service consumption?

Thank you for your question. The floor is given to Mr. Cai, EVP.

Thank you for your question. BOC steadfastly implement the strategic deployment of the country in expanding domestic consumption.

We focus on the needs of different customer groups and provide them with targeted services. We have made solid progress in satisfying citizens' diversified need, while contributing to citizens' revenue boosting and enhancing their consumption capacity.

In the first half of the year, we offered RMB 390 billion loans to stabilize employment and expand employment. Second, we further enhance the citizens' property-based revenue.

We are working together with partners to create mutual fund smart investment brand. By the end of June, the total individual account financial asset exceeded CNY 18 trillion group wide.

In line with the consumption upgrading trend, we strengthen supply side support and provide more credit support in major consumption areas. In the first half, corporate credit balance in consumption area increased by 7.7%.

For cultural tourism, elderly care industry, the loan balance grew by 10%, 50% respectively. For service sector, we provide loan subsidy, and in total, the new loans to this sector exceeded CNY 640 billion.

By the end of June, 3.28 million of the customer have enjoyed installment interest subsidy. We also create a new brand of BOC beneficial tourism covering 30 provinces and cities.

In 108 cities, in 700 food district, we provide credit card consumption discount. In the first half, the marketing activity has led to a consumption of more than RMB 4 trillion.

We leverage our cross-border advantage to serve inbound consumption. We create outbound tax refund brand.

By the end of June, our tax refunds cover 25 provinces and administrative regions, and the number of tax refunds grew by 400%. We also provide more convenience for inbound consumption, and we provide merchant card acquiring businesses covering major merchants, and foreign card acquiring businesses increased by 64%.

In the next step, we will work harder to contribute to boosting consumption. We will continue to strengthen asset allocation with a higher return on investment.

Second, we are going to strengthen our credit support so as to optimize consumer finance services by unleashing more potentials for consumption. Thirdly, we are going to further optimize the environment for consumption with a host of preferential treatment or benefits for using BOC.

Number four, we are going to step up synergy with the policy community so that the fiscal interest subsidies are in place.

Next question, the lady from the second row.

Thank you. I am from Securities Daily, Yang Jie by name. For the first half of this year, in domestic bond underwriting, it exceeded RMB 700 billion, and for Panda bond underwriting, it accounts for 66% of the market. For 12 years, you were number one. With changing global interest rate environment and the speeding internationalization of RMB, how will BOC further consolidate your leading edge in bond underwriting business?

VP Liu, please answer this question.

Thank you for your question. Starting from this year, the financing structure in China is undergoing profound changes and the global interest environment continues to change.

The Chinese bond market has accelerated in development, especially RMB bonds. There are good opportunities, and BOC is continuing to improve upon our business structure of bonds, making it a new cutting edge for BOC in five aspects.

First, in a forward-looking way, we are grasping trends in the market with strategic guidance. For the first half of this year, for non-financial companies, the direct financing accounts for 11.3%, 5.6 percentage points higher for the first half of this year. The size of bond underwriting exceeded RMB 750 billion, serving over 300 issuers. For the first half of this year, our bond business grew by over 30%.

We have a dedicated plan for bond issuance and underwriting as part and parcel of our strategy. Second, we are enabling an integrated service mechanism covering commercial banking and investment banking, while making use of diversified products such as loans, bonds, and securitization to provide a one-stop service for our customers in a close-loop model of service.

In particular, one of our biggest strengths is our global service capabilities, especially in overseas market. Cross-border RMB services has been one of our exemplary products. For Panda bond underwriting, for 12 years on a row, we are number one for dim sum debt overseas. For three years, we have maintained a very good position.

For example, for the first half of this year, we underwrote 58 Panda bonds amounting to RMB 38 billion. For example, in Samruk-Kazyna of Kazakhstan, it is an SWF Panda bond. For the Slovenian issue, it was the biggest issue of a Panda bond. In Pakistan, we achieved the first Panda bond underwriting in South Asia.

We were master underwriters for 140 bonds amounting to RMB 90.1 billion, accounting for 50% of the market share in dim sum debt, such as the first dim sum debt by Singapore Airlines and a RMB 31.1 billion and euro double currency bond issued by SWF Indonesia. From bond issuance, to market trading, to asset allocation, to interest rate and exchange rate risk management, we are offering a one-stop service.

We jointly issued first cross-border RMB bond white paper together with ICMA. Secondly, we are expanding on innovative practices in the bond market, focusing on the five key priorities of the financial sector with multiple cases of innovation. For example, for science innovation bond, we helped issue first POE, a private company offered M&A bond. In terms of green finance for the first half of this year, we underwrote over RMB 58 billion of ESG financing.

For example, we took the lead in helping Guangdong provincial government issue their offshore RMB green bond and blue bond. In pension finance, we helped with the first pension-specific bond issues. We have always kept risk management compliance in mind with the right checks and balances. We will continue to focus on the national 15th Five-Year Plan with multiple layers of bond market in development, in tandem with internationalization of the RMB.

We are going to give full play to our capabilities to further enhance and strengthen our leading edge in bond underwriting business going forward. Thank you for your question.

Thank you, Mr. Liu. We have the last opportunity. Last question. Lady from the third row, please.

Hello. I am from Tencent Finance, Jun Ping by name. My question is about AI. So far, AI is reshaping the way banks are doing business. I want to ask what BOC is doing in AI empowerment and efficiency enhancement, and in the digital intelligent transformation going forward. What are going to be BOC's plans?

Vice President Cai Zhao, please answer this question.

Thank you for your question. In 2026, BOC is earnestly implementing the decisions of the central government with the right balance between development and security, and an in-depth implementation of AI deployment as required by regulators. We have issued AI Plus plan and AI Plus finance implementation plan with the 3-2-6 architecture first. We are building a foundational level serving the entire group with the unified computing power platform and BOC AI large language models platform.

Leveraging three information centers overseas and our global footprint, we are helping branches with computing power, model selection, and risk management. Second, we are enabling full service scenario deployments driven by value. With the convergence between business and technology, we have incubated over 2,000 intelligent assistants, and we are implementing a roadmap of joining dots with skilled development and applications covering smart sales and point of sales Q&A, and other capabilities covering various business sectors and modalities such as customer service, sales, credit business, risk management, and operations covering the front office, middle office, and back office. For example, take credit business, for example, from pre-loan reporting to mid-loan due diligence to post-loan data analysis.

It's a full process intelligence support. In Singapore and other branches, we are piloting with global business development empowered by AI for loan extension. Thirdly, we are establishing a security governance mechanism with both security and development with ex-ante assessment, standardized tagging, content testing, and human checks and balances. Going forward, BOC will continue to implement the 15th Five-Year Plan, AI Plus plan, et cetera.

First, we're going to further solidify the foundation of technology with self-reliance, intelligent computing platforms, the large model platforms, and agent platform. Second, we're going to be more business-focused with re-engineering of business processes in order to reap more business benefits and value.

On the business side, we're going to focus on high-level scenarios. On the technology side, with greater R&D, we are leveraging technology to empower an agile ecosystem of coordination between data and business. Thirdly, we're going to always focus on security. AI risk management has been incorporated in the overall structure of risk management with self- iterative process and self growth. In this way, AI is being applied in a compliant way and AI for good is the principle ensured.

In the interest of time, so much for Q&A. If you have further questions to ask, please contact us.

During the 15th 5-year plan is open an opportunity for us to strengthen our foundation with all our efforts. And we will observe long-term perspective to help with the directions towards newer, better and more optimized developments. With a better performance, we're going to pay back the society for your trust and--

[Audio Gap]

[Statements in English on this transcript were spoken by an interpreter present on the live call.]

Dear investors, analysts and friends from the media, good afternoon. Welcome to the 2025 Annual results release of the Bank of China. I'm Liu Chenggang, Vice President and Secretary of the Board of BOC. Today's press conference is co-hosted by Ms. [Ko Margaret], spokesperson of BOC and myself. This event is being live streamed online, and we also extend a warm welcome to all participants who are joining us online. First of all, let me introduce to you the leaders attending today's conference. Mr.Zhang Hui, Vice Chairman, President and also Chief Compliance Officer; Mr. Hui Zhang, Vice President; Mr. Liu Chenggang, Vice President; and Mr. Yang [indiscernible], Vice President; Ms. Wang [indiscernible] Ling, member of the Party Committee and Vice President. In addition, some directors participating online. The bank's 2025 annual results have been announced to the public today.

The performance presentation slides are now available for download on the bank's official website or can be viewed at the bottom of the live stream page. All financial figures presented today are prepared in accordance with IFRS, unless otherwise specified. Today's conference consists of 2 sessions, a performance overview and a Q&A session. First of all, let's give the floor to Mr. Zhang Hui to deliver the speech.

Dear investors and guests -- good afternoon. And first of all, a big welcome to all of you to our annual results release. I want to thank all of you for your longer trust, attention and support for our bank. I will first provide a brief overview of our 2025 operating performance and outlook for the next stage. After that, I will join the senior management present here to have an in-depth exchange on issues that you care about. 2025 was the final year of the 14th 5-year plan period, facing a complex environment. Our bank rigorously implemented the decisions of the Party Central Committee and the State Council. We accelerated transformation under a low interest rate environment, achieved steady and improving operational results, improved quality as we progressed and met our expectations and delivered stable and satisfactory returns to our shareholders.

First, operating efficiency steadily improved. Operating income reached about RMB 659.9 billion, an increase of 4.28% year-on-year. In the past 3 years, the cumulative year-on-year growth over 11 quarters ranked among the top in the main peer groups and financial efficiency improved marginally with preprovincial profit growth increasing 2.62 ppt compared with 2024. Net profit and net profit attributable to shareholders grew by 2.06% and 2.18%, respectively, with growth improving quarter-by-quarter. NIM stood at 1.26%, remaining stable quarter-by-quarter since mid-2025. The cost-to-income ratio fell 0.93 ppt year-on-year and operating efficiency further improved. Second, resilience of development significantly enhanced. We have consistently promoted high-quality transformation under a low interest rate environment and achieved noticeable results.

Net interest income improved quarter-by-quarter and a single quarter year-on-year growth in the second half of this year turned positive. Noninterest income increased 19.21% year-on-year and maintained a high proportion of 33.21% of operating income, up by 4.16 ppt year-on-year. Income sources were further broadened with rapid growth in wealth management settlement and clearing custom financial market trading of [indiscernible] and integrated operation, which strongly supported overall performance. 3, balanced asset and liability growth. Group total assets reached RMB 38.36 trillion, up by 9.4% from last year. The proportion of high-yield assets such as loans and investment increased 0.93 ppt. Total liability reached about RMB 35.15 trillion, up by 9.47%, while RMB deposits increased by RMB 1.37 trillion and foreign currency deposits grew by 15%, further consolidating our leading advantage.

Fourth, asset quality remained stable and excellent NPL ratio stood at 1.23%, down by 0.02 ppt from last year-end, maintaining the best level among peers. The watch list ratio remained 1.47%, which is very stable. Provincial coverage ratio was about 2.37%, maintaining a reasonable adequate level. NPL balances and ratio for overseas institutions both declined. We completed the first batch of capital replenishment of RMB 165 billion, and CAR reached 18.85%, the highest year-end level historically with continuous improvement in risk buffer capabilities. Sixth, our market recognition and shareholder returns remained high.

Our unique operational advantage and business development have been widely recognized by the market. S&P, Moody's and Fitch all red BOC at the highest level among Chinese peers in 2025. We formulated and implemented market value management measures and the value enhancement and quality return plan, striving to convert steady performance into substantial returns for investors, we efficiently completed both the 2024 year-end and 2025 midterm dividend distributions with a per share dividend of RMB 0.2310 and our payout ratio maintained at 30%. For 4 consecutive years, we have delivered double-digit store investment returns to shareholders.

Over the past 1 year, we have been persistent in our positioning, and we have also been fully integrated into national strategy in serving the real economy, preventing financial risks and deepening our innovation has further enhanced our high-quality development. First, firmly supporting high-quality development of the real economy, domestic RMB loans increased by RMB 1.81 trillion, up by 9.9%, intensified support for major national strategies, key sectors and weak links, including technology, innovation, technical upgrades, inclusive finance, elderly care, et cetera. And we have also made great efforts in developing the 5 key areas of finance. We also increased about 18.78% in our technology loan balances, leading the peers. Green loan balance grew by 27.83% and green bond underwriting led Chinese peers.

Inclusive finance expanded in scale and quality, inclusive small and micro enterprise loan balances and account numbers increased by 21.32% and 22.86% year-on-year, respectively. We built the BOC Silver Age Pension Financial brand enterprise annuity individual accounts ranked high in the market and the pension industry loans achieved double-digit growth. We promoted breakthrough in digital industrialization and deep transformation of industrial digitalization with digital economy industry loan balances exceeding RMB 880 billion. We supported consumption recovery through the RMB 10,000 billion benefit in the people initiative, effectively implementing physical interest subsidy policies. Domestic personal consumption loan balances increased by 28.35% by contributing to stabilizing the real estate market with personal housing loans exceeding RMB 500 billion.

Secondly, firmly expanding global advantage and supporting high-level opening up. Our global operations advantage continued to consolidate with global deployment and international competitiveness further strengthened. Overseas pretax profit contribution increased to 27.99%. We actively supported stable foreign trade and investment. Domestic institution handled international settlement of USD 4.45 trillion, up by 9.56%. Cross-border e-commerce settlement reached USD 1.18 trillion, up by 45.07%. We established the first Chinese global custody bank, the custody network covered over 100 countries and regions, maintaining the top scale among Chinese peers. We actively served going out and bring in initiatives. We tracked over 1,400 Belt and Road corporate credit projects with cumulatively credit support exceeding USD 4.39 billion.

We closely followed key foreign invested projects, providing loans, [panda] bonds, cash management and supply chain financing services. We became one of the first bond connect Northbound repo market makers, bond trading volumes with foreign investors consistently exceeding trillions over the past 3 years. We launched cross-border payment channels for Mainland Hong Kong transfers becoming the preferred channel for routine small value remittances. We supported offshore tax refund services covering the widest regions with the number of cases for foreign investors increasing more than 150%. We vigorously supported RMB internationalization. Our London and Colombo branches were successfully qualified as RMB clearing banks, bringing the total number of clearing banks to 18. Cross-border RMB corporate loans continue to grow with cross-border RMB settlement of panel banks and offshore RMB bonds maintaining market leadership.

We conducted various multinational central bank digital currency bridge transactions exceeding RMB 350 billion. And for 3 consecutive years, we acted as a main participating bank, enabling efficient cross-border capital flows. Third, firmly consolidate the client end base and enhance competitiveness in key businesses. We classified corporate clients and implemented targeted strategies, increasing corporate clients by 13.88%. We built a comprehensive financial service ecosystem for government, military, education, health care, insurance, securities and infrastructure clients, forming well-integrated collaboration in government, military, school, hospital, insurance, securities and infrastructure sectors. We developed a digital service system for individual clients. Total personal clients approached 554 million, and mobile banking monthly active users exceeded 100 million.

We continuously improve the quality and efficiency of wealth management services. Agency sales of personal wealth management products and public mutual funds increased by 11.8% and 12.73%, respectively. We provided full life cycle and full process comprehensive products and service for clients. Link financing projects increased 25% year-on-year. Comprehensive operating profit contribution has increased for 3 consecutive years, maintaining leading position among main domestic peers.

Fourthly, firmly coordinated development and safety, safeguard risk and compliance. We continued to deepen the comprehensive risk management system and proactively prepare for various risk prevention. We adhered to the [indiscernible] approach of strict control of new NPLs and strict management of write-offs, ensuring the entry gate and exit gate of asset quality was strictly managed to maintain steadily in asset quality and adequate risk buffer capability, we strengthened overseas risk management, assisted clients in coping with external environment changes to ensure the safety of their overseas funds and assets. We responded prudently to market volatilities with liquidity risk and market risk maintained at a controllable level. Internal control and compliance management were strengthened and compliance operation improved effectively.

Fifthly, firmly promote digital transformation and deepen intelligent environment. We accelerated the transformation and upgrading of technology architecture. The total number of cloud service exceeded 51,000. We implemented AI+ initiative and formulated AI+ construction plan, deploying over 400 intelligent assistants across credit operations, risk and client services for deep empowerment. Enterprise-level RPA covered over 3,600 scenarios, expanding the effectiveness of digital tools to reduce workload and empower frontline teams. Sixth, firmly practice in sustainable development and fulfill social responsibility. We officially released our first sustainability report, reviewing the significant achievement of BSC in serving social development, improving people's livelihood and contributing to ecological and environmental protection with world carbon emission measures for high carbon clients within credit portfolios, oddly reducing portfolio carbon intensity.

For 26 consecutive years, we have provided national student loans benefiting more than 2 million students. We actively supported employment stability and livelihood loans to maintain and expand jobs increased over 63%. 2026 is the first year of the 15th 5-year plan period. We will implement the deployment of the State Council and also to focus on our main businesses and also hold fast to our risk bottom line and continue to build ourselves into a very strong financial institution. In accelerating China's effort to build a strong power of finance, we are going to make our contribution to high-quality development. We will mainly focus in the following 5 areas. First, high-quality support for the real economy, deepen the 5 key areas of finance, intensify support for technology, innovation, strategic emerging industries, manufacturing, SMEs and other key sectors and follow the national strategy to expand domestic demand, promote consumption potential and optimize investment structure.

Second, high-quality support for opening up, deepen the one access point global response service model, build a financial platform for Chinese enterprises to go global and increase support for Chinese enterprises going global and foreign invested companies bringing in enhanced RMB internationalization services and accelerate integrated company operations. Thirdly, promote high-quality value creation, strengthen proactive lean management and pricing capabilities, consolidated income structure advantages continuously improve noninterest income contribution, optimize application of EBA and RWA in resource allocation, promote cost reduction and efficiency enhancement and enhance sustainable development capability.

Fourth, high-quality digital and intelligent empowerment will be improved. We'll apply smart contracts, blockchain and AI in cross-border payments, wealth management, client operations and internal management. We will also enhance online and offline, domestic and overseas integrated services and improve total factor productivity. Fifthly, high-quality foundation for development. will strengthen monitoring and management of key industries and clients, control credit and compliance costs effectively, enhance risk prevention and resolution capacity and ensure stable and safe financial services. Dear friends, in 2026, BOC will also celebrate the 20th anniversary of A+H share listing. Since listing, our total assets have increased 6.2x and cumulative dividends have exceeded RMB 970 billion, providing substantial returns to the country and shareholders.

Standing at a new starting point and position, all BOC employees will unite, act pragmatically and continue to work hard to deliver steadily improving operating performance, repaying the trust and support of clients, investors and all walks of life of society. Thank you.

Thank you, President Zhang. Now we move on to the Q&A session in order for more friends to have a chance to raise questions. Each person only can ask 1 question. Before that, please identify yourself and your organization first.

[Operator Instructions]. First row on the right hand side, in the middle, gentlman, please.

I'm [indiscernible] from Citi Securities. Congratulations on the excellent performance. I have a question regarding strategic planning and business strategy. It is a top level -- a top-down question. So 2026 marks the first year of the 15th 5-year plan. We would like to ask the management to share BOC's overall layout for the new development stage of the 15th 5-year plan period as well as its business philosophy and goals for 2026.

Thank you. It is a very comprehensive question. I'd like to invite President Zhang to answer the question.

Thank you for your question. As I introduced at the results released just now in 2025, facing the complex and volatile external situation, BOC forged the head under pressure and pursued progress while maintaining stability and successfully concluded the 14th 5-year plan with good results. laying a solid foundation for the development of the 15th 5-year plan period. Looking ahead to the 15th 5-year plan period, in terms of the overall strategic goal, BOC will align with the strategic deployment for building a strong country -- country strong in finance, aimed to develop into a powerful financial institution and continue to act as a door in implementing the decisions and arrangements of the Party Central Committee, a major force in serving the real economy [indiscernible] supporting high-level opening up a practitioner in enhancing the strength of the large-scale large state-owned financial institutions and the balance for maintaining financial stability, thus promoting its own quality development while serving the high-quality development of the economy and society.

This strategic position and goal is a solemn commitment made by the Party Committee of BOC to the party and to the country, to all customers and investors and all countries and employees of the bank in 2024, which has effectively guided and promoted the achievement of all the bank's business goals during the 15th 5-year plan period. That is about the overall strategic goals. And in terms of the business practices during the 15th 5-year plan period, we will adhere to the consistent implementation of the overall plan and continue to effectively carry out its strategic goal and positioning from the perspective of operational management. During this new period, BOC will focus on its core responsibilities and main business, mainly 6 capability improvements and 2 transformation promotions. About the 6 capabilities.

First, we build a strong capability to serve the real economy, adhere to taking financial services for the real economy as the fundamental purpose closely focus on major strategic tasks and projects such as the construction of China's modern industrial system and coordinated regional development during the 15th FYP period, optimize financial supply and improve service quality and efficiency. We will solidly carry out the 5 key tasks of the financial sector, place high-tech finance in a prominent position in the group's overall development and build a service model that empowers the innovative development of industries.

Second, build a strong global layout capability and international competitiveness. We will resolutely take globalization as a core development strategy and top priority, continuously consolidate the advantages in key regions such as Hong Kong and Macau, accelerate the strategic layout in key emerging markets and create new growth drivers for profit contribution. We will play the main role of BOC in facilitating international use of the RMB and supporting the construction of the 2 international rich financial centers of Shanghai and Hong Kong.

Third, we'll build a strong comprehensive customer service capability. We will adhere to customer centricity, give full place to the characteristics of comprehensive operation, improve the ecological construction of circles, chains and groups, optimize the comprehensive financial services of equity, loan bond insurance and lease, continuously enhance ecological and integrated service capabilities to drive the improvement and strengthening of medium-sized credit customers and take multiple measures to improve the quality and efficiency of customer service.

Fourth, build a strong risk resistance capability, optimize the comprehensive risk management system, strengthen asset quality control, improve the quality and efficiency of recovery and resolution, ensure the basic stability of the group's asset quality keeps the NPL ratio at a low level among peers and firmly hold the bottom line of preventing systematic financial risks. Fifth, build a strong integrated operation capability. We will strengthen the organic integration of business data and technology and enhance the agile and collaborative channel operation capability, intensive and shared operational support capability and data empowerment.

Digitally empowered management and sharing capability. Sixth, we'll build a strong team of financial talents. We will adhere to high political standing, excellent work style and strong professional capability, clearly establish a correct orientation for talent selection and improvement and employment improve the talent system mechanism, encourage countries and employees to take on responsibilities and strive to cultivate a team of countries and talents with global competitiveness. Regarding the 2 transformations, first, accelerate digital intelligent transformation. We will increase tech investment in digital intelligent business, build an AI+ finance ecosystem, strengthen tech empowerment in key areas such as key business, channel construction and risk management, build differentiated market competitiveness and create a power engine for high-quality development.

Second, accelerate the transformation of sustainable business development. Last year, NIM was 1.26%, greatly shortening the gap with our peers. We are confident that in terms of the net interest income fundamentals, we'll be able to make more contributions. We'll optimize the asset liability structure and firmly hold the basic foundation of net interest income. We'll promote the high-quality development of noninterest business and increase efforts to expand noninterest income, which account for a large proportion of our income. We will also strengthen refined management and promote cost reduction and efficiency improvement. And here, we also continue to adhere to light asset intensive development, strive to alleviate the pressure of the tight balance of capital and funds and effectively respond to the low interest rate environment.

So that is our overall strategy and for the 15th 5-Year Plan period, 2026 is the first year of the 15th 5-Year Plan period. The bank will firmly establish and practice a corrective view of performance, serve national strategies and the development of the real economy, adhere to focusing on main business, improving governance and achieving differentiated development, maintain a good development momentum and go all out to ensure a good start for the 15th 5-year plan period. Our business philosophy and goals for 2026 can be summarized as the 6 orientations. The first orientation is adhere to innovation-oriented development, serve the overall national interest and increase support for the development of new product -- new quality productive forces.

We will continuously improve the product and service system, highly adapted to new product -- new quality productive forces, boost and empower the construction of the modern industrial system and help smooth the innovation chain, supply chain, industrial chain and capital chain increase -- will also increase support for the construction of a strong domestic market, serve the expansion of domestic demand and boost consumption, implement the policies of 2 major categories of projects and 2 new types of infrastructure and help improve the transmission efficiency of fiscal and financial policies. We will also increase support for areas such as upgrading traditional industries, cultivating and expanding emerging industries and future industries, expanding capacity, improving the quality of the service industry and creating a new form of intelligent economy so as to improve the quality and efficiency of comprehensive financial services.

Second orientation adhere to the advant-oriented development, consolidate advantageous features and provide all-around services for high-level opening up. We will continuously improve the global layout and financial service system and maintain a high level of overseas profit contribution. We will vigorously expand the international use of the RMB and maintain rapid growth of RMB assets and liabilities of overseas institutions. We'll also serve the going global of Chinese-funded enterprises and the layout of the global industrial chain and build a benchmark brand for supporting the overseas development of Chinese-funded enterprises. We will also improve and expand global custody products and services and the proprietary custody network and provide higher quality global custody services for various cross-border investment and financing customers.

Third, we will adhere to the value-oriented development focused on value creation and effectively respond to the challenges of the low interest rate environment. We will strengthen refined management and drive the steady improvement of net profit to a level comparable with peers. We will enhance the capability of overall allocation of domestic and overseas funds, strengthen the forward-looking management of net interest margin and drive the stabilization and recovery of net interest income. We will increase efforts to expand intermediary business, steadily raise the scale of settlement and clearing, deepen wealth management business and optimize comprehensive financial services.

We will expand the scale of customer-driven transactions and promote the development of other net interest rate -- net interest businesses. We also strengthen cost reduction and efficiency improvement. Fourth, adhere to the foundation-oriented development. We'll strive to consolidate the fundamentals and improve the quality and efficiency of key business products and services. We will closely focus on customer needs, give full play to the advantages and characteristics of globalization and comprehensive operation and continuously improve the full life cycle and full process comprehensive service system will enhance the market competitiveness of the key business segments, continue to focus on key products such as salary payment agency, express payments, third-party custody and cash management and actively expand the sources of low-cost liabilities.

Also the fifth orientation is adhere to the stability-oriented management development. We'll build a solid risk defense line and better balance development and security. We will effectively respond to internal and external risks and challenges and adhere to prudent and compliant operation. We will also strengthen asset quality control focused on the 2 main lines of strictly controlling newly generated nonperforming assets and increasing substantive recovery, continuously save credit costs and keep the group's nonperforming loan ratio stable. And sixth, we will adhere to the intelligence-oriented development, strengthen digital intelligent empowerment and accelerate the improvement of tech operation efficiency.

We will accelerate the implementation of the AI+ plan, optimize the high-efficiency technology supply system, promote the value transformation of data assets and create AI application paradigms, focusing on scenario needs of key areas such as credit marketing and operation. That's all for my answer, thank you for the question.

Thank you, President Zhang. Now we move on to the next question. Second row, lady in the middle, please.

I'm Shen Juan from Huatai Securities. First of all, congratulations on the excellent performance of BOC. I have a question related to deposits. Since the beginning of the year, the market is highly concerned about the large-scale maturity and repricing of time deposits in the banking industry. How does the management of BOC view the growth trend, structural changes and room for cost improvement of deposits in 2026? At the same time, we can see that the market has noticed the fierce competition, be it competition among peers or the flow of deposits to other areas. So what measures has the bank taken in active liability management in the face of fierce deposit competition?

I would like to ask Vice President Zhang to answer the question.

Thank you for your question. I would like to answer from 2 perspectives. One is our view on the growth trend of deposits. And second is how to promote the high-quality development of liability business. First of all, our view on the growth trend of deposits. In terms of total volume in recent years, M2 has maintained steady growth. Over the past 3 years, average growth rate was 8.5%. It is estimated that this year, this trend will be sustained. About the customers' deposits, they have shown a steady and sound momentum. In 2025, domestic RMB deposits achieved a year-on-year increase in increment. Regarding the issue of the maturity of bank time deposits concerned by the market, the scale of the bank's maturing time deposits has indeed increased since the second half of 2025.

For these maturing time deposits, we have honestly done a good job in deposit retention services. And if you look at the actual results, most of the deposits are still retained in the form of deposits. With a high rollover ratio of time deposits. It is expected that the maturity of time deposits will have a limited impact on the bank's deposit growth this year and the momentum will continue. The interest rate is lower than the time deposit interest rate 3 years ago. The repricing of the above deposits will drive down the deposit interest payout rate, bringing a positive impact on stabilizing the bank's interest margin level. In terms of structure, it is estimated that social funds will continue to gather towards individuals and nonbank institutions.

However, with the implementation and effectiveness of the package of policies for physical and financial coordination to boost the domestic demand, which supports the sustained sound development of economy and improves corporate liquidity the growth of corporate deposits will improve. And this will create a good foundation for the bank to consolidate the liability base and support the development of the real economy. Secondly, how to promote the high-quality development of liability business. Customer deposits are the core business for improving liability quality and an important guarantee for banks to maintain the steady growth of assets.

The bank has always adhered to the customer centricity driven by the dual wheels of wealth management and asset management, allocating products and services around customer needs and improve the efficiency of deposit precipitation by providing customers with full process services first, consolidate the customer base and improve liability quality. For corporate customers, establish hierarchy and classified service system actively give play to the traditional advantage cross-border business and further expand the customer base by providing customers with international trade and cross-border RMB settlement services, relying on digital platforms such as corporate online banking, mobile banking and WeChat work to improve the coverage and the convenience of customer services carry out targeted marketing for various customer groups such as [indiscernible] enterprises, multinational corporations, listed companies, micro and small enterprises, industry leaders and continuous to improve customer service capabilities.

For individual customers, continues to optimize the hierarchical operation strategy, steadily promote the 3-level customer management model and provide precise services for customers at different levels, strive to improve customers' transaction. Secondly, improve the product and service system and enhance the quality and efficiency of customer service. We adhere to win-win value creation concepts for both banks, and we have also provided the diversified professional products services so as to drive the steady growth of deposits. For instance, in 2025, the bank optimized global cash management system and realized 724 real-time receipts of multicurrency funds on the basis of security leading the industry, give play to the capability advantages of BOC Wealth Management and Bank of China Hong Kong to provide customers with rich and high-quality selection of products adapted to the wealth management needs of multi-asset, multi-strategy and multi-region, build the group's exclusive pension product system, BOC Silver age long-lasting care, provide exclusive wealth management services for pension preparation and elderly care.

Thirdly, promote ecological operation and facilitate the closed-loop retention of funds, focus on the policy orientation of investment in physical assets and human capital, follow up the capital flow of finance, social securities, housing, major projects, construction, technological transformation and industrial and supply chains, build a finance plus nonfinance service network for customers and integrate financial services into customers' ecological operation scenario through the in-depth integration with customers' capital flow, information and logistics flow, promote closed loop management of customers' funds, drive deposit precipitation and improve stability of deposits.

Fourthly, optimize active liability management and enhance resilience of operation and management with the continuous decline of interest rates center, banks can obtain stable funds with relatively controllable costs. We are going to seize favorable market opportunities, issue bonds and interbank certificates of deposit at the right time, enrich the source channels of liabilities and also achieve cross-cycle high-quality development by supplementing capital and improving the total loss absorbing capacity. Thank you so much.

Thank you so much. Now we can invite more questions. Okay. The lady who are sitting on the second row on the left-hand side.

I'm [indiscernible] from Guotai Haitong Securities. I have a question about NIM. Faced with the challenge of low interest rate environment. Can you introduce us on the specifics? Looking ahead of 2026, what is the trend of NIM and what are the main pressures and the supporting factors, respectively?

I'm going to answer your question. Actually, according to Mr. Zhang, you already mentioned that it's a very important task for us to maintain our good development and performance in the low interest rate environment. As for Bank of China, we have our own advantages. So we will make good use of both domestic and overseas markets coordinate both RMB and foreign currencies. And we already achieved good results in 2025. And our net interest margin was 1.26%, a decrease of 14 basis points over the previous year. Since the second half of the year, the group's foreign currency net interest margin has stabilized and rebounded. The group's net interest margin was the same as that in the first half of the year and the net interest income achieved positive year-on-year and month-on-month growth.

Specifically speaking, first, we increased asset investment and improved efficiency of asset allocation and strengthened our self-disciplinary management of loan interest rate. In 2025, the bank's domestic RMB loans increased by about RMB 1.8 trillion. Credit supply maintained steady and balanced growth, adhered to the principle of risk pricing and reasonably determined the interest rate level of newly issued loans according to operating costs. We also actively seized domestic and overseas market opportunities. The proportion of the bond investment in interest earning assets increased by 21 percentage points year-on-year, of which the growth rate of foreign currency bond investment exceeded 20%, flexibly arranged the term of bond investment.

Secondly, continuously optimized liability structure and effectively reduce liability costs. maintain the rapid growth of domestic RMB deposits, appropriately absorb interbank nonbank demand deposits, solidly promote the self-disciplinary management of deposits, drive the group's liability interest payout rate down by 37 basis points with the improvement amplitude hitting a new high in recent years. Third, give play to the advantage of global business and improve efficiency of foreign currency fund utilization. The asset scale of overseas institutions has grown steadily and the proportion of core assets in total assets has increased by 0.9 percentage points. And looking ahead to 2026, it is expected that the year-on-year decline of bank's net interest margin will narrow significantly and the net interest income will achieve positive growth.

Currency was faced with a lot of uncertainties, as you may know, that now the geopolitics landscape has actually shrink -- has already give pressure to the interest rate decline of many currencies. We have confidence that we will seize the market opportunities brought by implementation of the package of incremental policies give full play to the advantage of globalization and the characteristics of comprehensive operations solidly achieved the comprehensive balance of volume price risk and efficiency for the 2026, we will do great efforts in the following aspects. First, optimize the basic foundation of asset and liability business and effectively control the decline of interest margin of RMB business.

In terms of assets in the first year of 15th 5-year plan period, the bank will grasp with the more proactive macro policies to act ahead of schedule and reasonably arrange the pace of credit supply and bond investment. And also in liability, we will strengthen technological empowerment focused on key scenario and products, remote digital operation of corporate non-loan customers, settlement accounts and individual long-tail customers and facilitate precipitation of demand deposit funds. Meanwhile, we will also actively seize the favorable opportunities of the gradual maturity of time deposits to effectively hedge against the downward pressure of asset income.

And besides, secondly, we will strengthen the global service system and maintain the overall stability of interest margin on foreign currency basis. Business, the bank will continue to steadily expand the customer base of going global, promote sustainable growth. Meanwhile, the rapid growth of low-cost domestic deposits has provided competitive capital support. Currently, the expectation of U.S. dollar interest rate cut has weakened significantly. If the U.S. dollar interest rate is cut, it will have basically no adverse impact on the bank. If the Hong Kong dollar interest rate declines, it will bring certain pressure on our income. We will strengthen interest rate sensitivity management and take multiple measures to elevate the adverse impact.

Thirdly, refine the requirements for interest rate pricing management and consolidate the foundation for steady development. We will follow closely policy development, adhere to the bottom line of compliant interest rate operation and improve efficiency and effectiveness of pricing management through institutionalized and standardized management methods. And we will also set the reasonable deposit and loan interest rate. Thank you so much. And today, we have a lot of friends who are with us today, especially some share investors who are also joining us online. So now we will invite the friends who are online to raise questions. [Operator Instructions].

I'm Xu Ran from Morgan Stanley. I have a question regarding the growth of the commission rate. Well, the ratio of the noninterest income is also quite high. So I want to ask a question about the reasons and also whether in 2026, will it continue to grow? And what are the driving factors?

And we will invite Vice President, to take this question.

Thank you so much for your question. Bank of China has played its advantage of globalization and comprehensive business and actively promote the source of noninterest income effectively tackle the market. And Also, we have the total noninterest income of RMB 219.2 billion, a year-on-year increase of 19.2%, while the net fee and commission income was RMB 82.2 billion, a year-on-year increase of 7.4%. And also, this is the historical high in terms of the contribution ratio of noninterest income, mainly in 3 areas. First, gas the development trend of transformation and upgrading of resident asset location and enhanced wealth management capabilities.

We continuously built a full market plus for improved product shelf improved product selection and management capabilities with more than 7,500 on sale and agency sold public funds and wealth management products, benefiting from the recovery of the capital market in 2025, the investment assets of domestic individual customers increased by 15%. The customer-driven stock trading volume of Bank of China, Hong Kong increased by 85% and the management scale of BOC fund increased by 12.8%, driving the group's agency fees up by 26.67%. At the same time, accelerate the construction of global custody capabilities. The group's custody asset scale increased by 21%, driving the growth of relevant fees by 7.74%. Secondly, optimize comprehensive finance and continues to provide high-quality payment and settlement services.

Bank of China has solidly expanded customer and account base. The total number of corporate customers and corporate settlement accounts have both achieved double-digit growth and international settlement volume has increased by 9.56%, driving the group settlement and clearing fees up by 2.03%, achieving positive growth for 5 years in a row. The corporate domestic settlement fees achieved remarkable performance with a year-on-year increase of 7.2%. The development foundation was further consolidated and the leading advantage in international settlement was further expanded.

Thirdly, they play to the advantage of a global market business and steadily expand trading and investment business. As you may know that in 2025, the global financial market experienced a large fluctuations, relying on the global 24-hour [indiscernible] service network, we served the global customers' need for [indiscernible] and value preservation and the customer-driven trading business achieved a steady growth.

Gas was the trend of RMB and foreign currency bond markets, dynamically optimized the investment portfolio and realize effective growth in financial investment income.

Looking ahead in 2026, the domestic economy has a good start. The transformation of old and new growth drivers are accelerating and the demand for transaction banking, wealth management, investment banking business will further grow. We will take customer as the first as a [indiscernible], taking service customers through the entire chain as its mission and strive to maintain the steady and healthy development of noninterest business. In terms of wealth management, and we will continue to coordinate the management and to build a full spectrum product system and achieve a win-win situation for both customers and bank in terms of values.

In terms of settlement business, we will seize the incremental business space brought by expanding domestic demand and boosting consumption, consolidate the foundation of traditional business such as payment and settlement and cross-border settlement and deeply embed settlement services into industrial chain scenarios. In terms of financial market business, we will further give play to the advantages of global layout and continuously enhance the competitiveness of financial market business. We'll also fully play out the role of the main channel to facilitate the international use of the RMB. Against the background of complex and volatile geopolitics will serve customers' needs for exchange rate risk management and cross-border investment and financing in response to their needs for risk aversion, value preservation and appreciation.

We also enriched the global custody product system and provide customers with reliable global custody services. We also strengthened the research and judgment of macroeconomy and the market, make good arrangement for RMB and foreign currency investment and effectively balance risk returns. In a word, the in-depth advancement of China's high-quality economic development has provided many structural opportunities for the bank's noninterest business development. BOC will see the opportunities to achieve better development.

Thank you, VP Zhang, for your answer. Now we move on to the next question online. Yen Madam Yen.

Thank you, VP Liu for the opportunity to raise a question. And I congratulate BOC for such excellent performance in the complex environment. I have a question related to asset quality. In 2025, BOC's asset quality remained generally stable and robust, but the market has also noticed that risks in the banking industry as a whole continue to emerge in certain areas. We would like to ask the management about its outlook, the senior management outlook on the bank's asset quality performance this year and what pressures the corporate and retail business are facing, respectively.

Thank you, Madam Yen. I would like to invite VP Liu Chenggang, to answer the question.

Thank you for your question. In 2025, facing the profound and complex changes in both domestic and international situations, China's economy forged ahead under pressure, developed towards innovation and improvement, successfully completed the socioeconomic goals and concluded the 14th 5-Year Plan with remarkable achievements. At the same time, BOC has continuously strengthened the active management of credit risks, taken more proactive and effective measures, further improved the level of refined management, constantly raised the quality and efficiency of recovery and disposal, achieved a good result in risk control throughout the year, made new progress in risk prevention and control in key areas and maintained stable asset quality.

As President Zhang has mentioned, by the end of 2025, the group's NPL ratio was 1.23%, a decrease of 0.02 PBT from the end of previous year, continuing to maintain the lowest level among comparable peers. The provision coverage ratio was 200.37% with a reasonably adequate risk mitigation capacity. Going forward, in 2026, we are confident in maintaining the stability of the group's asset quality. Domestically, the NPL ratio of corporate loans has maintained a downward trend for 7 consecutive years. The asset quality of key industries such as manufacturing sector has continued to improve and the business structure has been further optimized. About the newly generated NPL personal loans have improved quarter-by-quarter since the second half of 2025.

Overseas, the asset quality control is effective. The nonperforming balance and NPL ratio achieved a double decline in 2025 and the globalization advantages are continuously consolidated. These have provided confidence and strength for us to further improve asset quality control in the following -- in the coming -- forthcoming period. And of course, we'll also focus on the following aspects. First, the real estate market is in a period of transformation from the old model to the new one. Some indicators fluctuated in 2025, but the phased adjustment has been reflected in the asset quality data. With the release of risks, we estimate that the real estate market will operate steadily. Second, the personal loan business still faces certain pressure against the background of the macroeconomic cycle and the adjustment of employment structure.

Third, the repeated changes of U.S. tariff policies, frequent geopolitical conflicts and the downturn of commercial real estate in some overseas regions have brought potential challenges to asset quality control. Although the impact of changes in the external environment is deepening, the supporting conditions and basic trend of China's economy for long-term sound development have not changed. The bank will continue to balance development and security, pay close attention to the new trends and characteristics of risk resolution at all times, strengthen the forward-looking research and judgment and effectively respond to risks and firmly hold the bottom line of preventing systematic risks. By taking the following measures, it is expected that the impact of the above challenges on BOC's asset quality will be relatively limited.

First, solidly carry out the 5 key tasks of the financial sector, further optimize the credit structure, improve the credit business in the field of a strong domestic market, modern industrial system, green transformation and development, high-quality opening up and rural revitalization and strengthen the risk management of structural problems in real estate, local debt and key industries. Second, hold the bottom line of asset quality firmly, resolve potential risks in key areas, adhere to the 2-way refined control strategy of newly generated nonperforming assets and recovery and disposal and conduct coordinated control of asset quality from both the inflow and outflow aspects.

Third, we will restructure and upgrade the group's comprehensive risk control system, improve the level of risk governance, enhance global risk management capabilities, strengthen the control of high-risk products and make forward-looking risk prevention and control in nontraditional fields. Fourth, we will deepen the digital and intelligent transformation of risk control, consolidate system functions, build a solid risk support, create standardized full process management capabilities and improve the level of digital and intelligent risk control driven by data and supported by new technologies. Thank you.

Now let's go back to on site and take another question from another analyst. First from left, gentlemen, please.

I'm Lin Yingqi from CICC. So looking ahead to 2026 and the 15th 5-year plan period, what development opportunities and challenges does the management believe BOC's global operation is facing? And what is the outlook for the relevant financial performance and risk trends?

Thank you, Mr. Lin. Globalization is a big feature of BOC and as the market would like to know the investment value of BOC. I would like to ask President Zhang to answer the question.

First of all, thank you for your attention to BOC's globalization strategies implementation. Globalization is the inherent gene and the heritage of the past century of operations of BOC, I mean, 114 years. It is also the biggest differentiated development advantage compared with other Chinese funded banks. This strategy has not been changed. We established overseas institutions that have sustained operations for close to 100 years. So globalization, as I have mentioned just now, is the inherent gene and the heritage of BOC's past 114 years of operations. It is also the biggest differentiating factor and advantage for us. So it provides very effective support for our operations management and performance for the whole bank. In terms of globalization, overseas institutions pretax profit contribution ratio is close to 28%.

I mean, overseas institutions contribution, 28% very high. DOC will deem globalization as an important component of the development strategy and differentiating element of BOC and implement it very well. You mentioned the question about opportunities and challenges. I think we can -- about the opportunities, first of all, we are highly aligned with the national development plan. And for example, the National 15th 5-year plan. The National 15th FYP clearly proposes to adhere to open cooperation and mutual benefit and win-win results, expand high-level opening up and make specific arrangements from aspects such as promoting the innovative development of trade and the high-quality Belt and Road initiative cooperation.

So this is a very good opportunity in terms of the overall national opening up for BOC to promote its own high-quality development. Second, the accelerated flow of foreign investment and foreign trade releases policy dividends. The 3 national brands of buy in China, export from China and investing in China continue to exert their strength, building an important bridge for the global flow of factors and market integration. BOC's traditional advantages in trade finance, payment, facilitation and other fields have a broad stage for us to play. Third opportunity is the changes in the world economy and trade also greet development opportunities. Last year, the world's economic and trade landscape has witnessed great changes. China's import and export volume in terms -- with ASEAN, with Europe, with Africa has all increased by a large margin, very quick increase.

And BOC has made a lot of important deployments and enjoy a very solid foundation with good potentials for very promising growth. And Fourthly, RMB internationalization is being accelerated. Now RMB has become China's largest settlement currency for external payments and receipt and the world's third largest trade finance and payment currency and enterprises' willingness to use RMB for transactions has increased significantly. And BOC's business growth in cross-border RMB payment, RMB financing and bonds and other aspects has shut in a very important window of time. And fifthly, the overseas development of Chinese-funded enterprises also spawns cross-border financial needs. With the in-depth adjustment and optimization of China's industrial structure, the pace of Chinese-funded enterprises going global has been continuously accelerated and the demand for diversified financial services such as cross-border financing, global cash management and interest rate and exchange rate risk management is also increasing day by day. BOC's International services meet these diversified financial needs.

And the sixth opportunity is the global demand for asset security also give first to a blue ocean for custody business. The complex and volatile international situation has increased the enterprises demand for asset risk aversion. BOC has strived to promote the construction of global custody capabilities and we have become the first Chinese funded global custody bank and can provide safe and efficient asset custody solutions for Chinese enterprises and global customers. So that is the opportunities for our globalization strategy in BOC.

Of course, we're also facing some challenges in terms of globalization, mainly 2 challenges. First, the external environment is full of uncertainties and global economic growth is slowing down, and there are changes in -- sharp changes in geopolitical situations and trade policies are also unstable in many countries. This has brought challenges to risk control and compliance. Second, frequent regional conflicts and tensions threaten the safety of some overseas branches to a certain extent, and the disruption of industrial and supply chains also have affected the safe development of Chinese enterprise customers.

However, facing the opportunities and challenges under the -- in the century as the only Chinese funded bank with a century of global operation, BOC has the responsibility, confidence and ability to build the global Golden brand into a performance pillar. We have our comparative advantages. First, mainly 5 aspects. First, our institutional network covers the whole world. BOC's overseas institutions cover 64 countries and regions, out of which 45 are Belt and Road countries or regions with institutions in all major international financial centers, and having a significant first-mover advantages in the international financial centers of Shanghai and Hong Kong.

And they cover a proprietary overseas institutions ranked second in world and first in China. Secondly, the customer base is solid and stable. Our banks overseas institutions of about 28,000 Chinese founded going global customers and more than 330,000 fully invested enterprises in China. The service coverage ratio of Fortune 500 foreign enterprises in China exceeded 90%. And this has also provided a very solid foundation for our globalization. Thirdly, cross-border business leads the industry.

In terms of international sentiment and foreign exchange purchase and sales we have very obvious competitive advantage with nearly 410,000 cross-border settlement customers and maintained steady growth. Our major cross-border Renminbi business ranked first in the world and our SIP business accounts for more than half of the entire market. By 2025, our bank has been awarded the best RMB clearing bank in the Asia Pacific region award 12x.

Fourthly, overseas risk control is steady effective. Over the past century, we have faced with many historical processes such as changes in the international situation and the restructuring of the global economic and trade network relying on firm strategic results reach development experience and a solid effective risk control capabilities, we have never had a major risk incident and the nonperforming asset balance and the nonperforming loan ratio have always been maintained at a reasonable level. And also since [indiscernible], we have never encountered any major risk incident.

And we do know that the overseas risk control needs very long-term and a solid foundation, and that's also one strengths of BOC. Fifthly, our talent team has maintained very strong strength. We have very sufficient reserve for global talent with 25,000 employees overseas. And has built an overseas talent pool of more than 8,000 people reserving professional talents in multiple minority languages. There is a galaxy of talent in fields such as international settlement, foreign exchange trading and risk compliance, which is our greatest confidence in seizing opportunities and coping with challenges. Of course, we could not be very over complacent.

And in these 5 advantages, we shall continuously improve our capabilities of operation and the management for the next step, we will mainly focus on the following 4 areas. First, adhere to globalization development strategy and continues to enhance our global layout capabilities and international competitiveness that can strengthen forward-looking research and judgment and effective response to risks, pay close attention to the new trend and the characteristics of the evolution of international market risks, improved monitoring and early warning system and ensure the safety of overseas assets.

Thirdly, increased efforts in the construction of regional headquarters continuously enhance through several layout capabilities and competitiveness. And then fourthly, improves overseas digital and intelligence level, accelerate application of new technologies such as smart contracts and blockchain, increased intensity of intensive construction and continues to improve operational efficiency. The client also asked me to look ahead to 2026 regarding our strategies and also the risk trend.

First of all, I want to say that we are confident in promoting the continued sound development momentum of our global businesses. And also to maintain great momentum of our international business. Our goal is that the contribution of overseas institutions in profit will remain at a high level and also, the asset of our overseas institutions will also be very good and stable. Thank you so much for your question.

Thank you so much, President. Zhang, in the interest of time, that will be the end of the Q&A session of investors and analysts but if you have further questions, feel free to contact our Investor Relations team. Now we will give the floor to Ms. Erica to moderate the Q&A session of the journalists.

Thank you so much. Hello, everyone. I'm Yu Ke. I'm the spokesperson of BOC. First of all, I want to give a big welcome to all the friends from the media. Over the past 1 year, you have reported the story of BOC in integrating in our national strategy and carry out our historical responsibilities. Now we are going to the Q&A session. [Operator Instructions]

Congratulations. I'm [indiscernible] from CCTV. My question is that the five-year plan proposed to accelerate the high levels of scientific and technological self-reliance and self-improvement lead the development of new productive forces. Would you please share with us your experiences in developing fintech?

Thank you so much the report from CCTV. We will invite Mr. Zhang Hui to answer your question.

First of all, I want to thank you for your interest in our work in fintech. In recent years, we have continuously increased efforts to serve high level scientific and technological self-reliance and improvement and has formed a new differentiated business advantage in sci-tech and fintech, becoming a new engine driving the high-quality development of the bank, mainly we have the following full features. First, the structural advantage continues to stand out. By the end of 2025, the balance of Bank of China's sci-tech loans exceeded RMB 4.8 trillion, accounting for more than 1/3 of our corporate loans, ranking first among our comparable peers.

Second, the customer base is continuously consolidated. The total number of credit, good customers exceeds 170,000, among which the credit coverage rate and the customer increment of sci-tech enterprises are at the leading level in the market. Thirdly, the effect of comprehensive services is remarkable. The cumulative comprehensive financial supply, including investment, bonds, insurance and leasing has reached about RMB 900 billion, building a full life cycle and a full process comprehensive service system for sci-tech enterprises.

Fourthly, the asset quality remains sound in the recent years, the NPL balance of sci-tech loans has remained stable and the NPL ratio has been continuously lower than the overall NPL rate of the group. Overall, our sci-tech finance business has achieved remarkable improvement and has become the new advantage driving our competitiveness in the market. I want to thank you for your attention and support.

Specifically speaking, in the 4 areas, we will continue our efforts. First, pursue innovation-oriented development in service models and systematically build our sci-tech finance ecosystem. The needs of sci-tech enterprises are diversified. They need not only credit funds, but also a series of comprehensive financial support, including equity investment, debt financing, insurance protection and listing services with commercial banking as the hub, we connect various financial resources for enterprises. We have further promoted the BOC Sci-tech Innovation Ecosystem Partner Program, building an efficient platform for sci-tech enterprises to connect with technology, industry, capital and talents.

It has already attracted about 7,500 enterprises and over 800 investment institutions. At the end of 2025, we further launched the BOC Sci-tech Innovation End-to-End Customer Cultivation program, fully coordination and the comprehensive operation resources within the group building an equity loan relay financial support plan for the next 3 to 5 years for key core technology enterprises, such as high technology enterprises and creating a sci-tech finance model of coordinated investment lending, risk sharing and benefit sharing.

And this has realized a more continuous and predictable comprehensive equity loan financial support for high-tech companies. In the 3 months since the launching pilot projects have been carried out in 8 regions, including Beijing, Shanghai and Shenzhen. About 28 projects have entered this channel. Secondly, promote the in-depth development in industrial layout and continuously enrich the supply of sci-tech financial resources, we have made precise layout and key breakthrough and continuously increased its layout in the field of AI. In 2025, we took the lead in issuing the action plan for supporting the development of AI, industrial chain, proposing to provide special comprehensive financial support of no less than RMB 1 trillion for AI industry chain within the next 5 years and also launched the innovative product, Computing Power Loan to provide credit supply for enterprises with computing power needs.

Through one year's effort, we have established cooperation with nearly 405,000 core enterprises and with a new increase of over RMB 150 billion in credit balance and a growth rate of 39% and provided comprehensive financial services such as equity bond insurance et cetera. Last Friday, we together with China Academy of Information and Communications Technology and the China Securities Index Corporation, officially launched the research on AI industry index and our subsidiary BOC fund simultaneously released the BOC Double Innovation AI index fund, providing more reference guidelines for financial support to the AI industry.

Thirdly, align with precision-oriented in policy implementation and continues to enhance momentum of the sci-tech finance development facing the opportunities brought by the package of incremental policies and the physical and financial coordinated policy to boost domestic demand issued by the state. We have actively responded and promoted the conversion of policy dividend into the quality and efficiency. By the end of 2025, the balance of loans for scientific and technological innovation and equipment renewal exceeded USD 190 billion and the relending balance ranked fast among comparable peers.

Focusing on product innovation, we have actively responded to the new pilot policy for M&A loans and through the integrated for chain, extended service of M&A loans and M&A consulting and equity investment. We have helped scientific tech companies strengthen and supplement industrial chains. And also provided financial support for M&A transaction exceeding RMB 190 billion. Follow the leader pilot test. We also provided the support of these companies and launched the pilot test insurance finance, and we already worked with 190 national and ministerial-level pilot test platforms with a coverage rate of nearly 80%.

Focusing on patient capital, we optimized the AIC Equity Investment Fund and the BOC Sci-tech Innovation Fund with a total subscribed scale exceeding RMB 40 billion. It has launched landmark equity projects in fields such as commercial aerospace, biomedicine, AI and integrated circuits and actively participated in the establishment of the Beijing-Tianjin-Hebei Venture Capital Guidance Fund. Fourthly, make pragmatic efforts in mechanism and optimization to effectively consolidate the foundation for sci-tech finance development. In response to the features of sci-tech innovation, enterprises such as high investment and light assets, we have continuously promoted mechanism innovation and actively addressed the blocking pain points and difficulties in financial services. To improve professional service capabilities. We have continuously improved. The 3-dimensional sci-tech finance organizational structure of head office, branch, sub-branch and configured the exclusive sci-tech finance credit model for growing sci-tech enterprises solving the credit bottlenecks in the process of transforming from micro and small inclusive customers to large enterprises. And we have also launched the construction of an external expert database, introduced the cloud review model to provide empowerment for efficient credit approval to improve precise service, we have innovatively developed BOC sci-tech innovation quantum system and used digital technology to integrate multiple factors such as enterprise innovation capabilities, operating conditions to form a multidimensional evaluation system.

Now we have already used this system to serve more than 10,000 businesses to support international cooperation, relying on the one-point access global response service mechanism, which supports sci-tech enterprises to go global and innovative resources to be brought in. In the next step, we will give full play to our globalization advantage and strengthen the level of opening up and cooperation. Looking ahead, we will continue to improve the system compatible with scientific and technological innovation, promote in-depth integration and mutual promotion of globalization advantage, comprehensive characteristics and sci-tech finance business development and form a high-level cycle of technology industry finance and contribute more strength to supporting high-level scientific and technological service reliance and the improvement and help the development of new productive forces.

Thank you so much. Now we want to invite the gentleman in the second row on the right-hand side.

Xinhua News Agency. I'm [indiscernible]. My question is that in 2025, consumption continued to play the role of the main engine of economic development. Could you elaborate on the measures taken by BOC to actively cooperate with implementation of the special action and what efforts will you make?

Thank you for your question. This is a question related to boosting domestic consumption. I would like to invite VP, Zhao Cai to answer the question.

Thank you for your question. In this year's government work report striving to build a strong domestic market is placed at the first of this year's work tasks and implementing a special action to boost consumption is placed in a prominent position. This is the second consecutive year that the government work report has taken expanding domestic demand as the top priority. BOC has actively responded to the national strategy deployment. We have taken boosting consumption and expanding domestic demand as a key task of our whole bank systematically arranged to improve the quality and efficiency of financial services, made coordinated efforts from both the supply and demand sides, not only strengthening financial supply in the consumption field, but also consolidating the foundation of residents' income and consumer confidence, that is to enable people to make money and spend the money well.

In 2025, BOC launched on Wan Qian Bai Yi 10,000 -- 1,000, 10,000, 100 million consumer benefit campaign with 10 major gift packages, injected more than RMB 20 trillion in credit funds into key consumption areas, created more than RMB 250 billion in property income for customers and provided over RMB 10 billion in consumption subsidies and fee reductions benefiting hundreds of millions of people and helping to warm our consumption with real financial support.

First, we help the residents increase their income to make consumption more confident. We strengthened professional wealth management services, enrich the diversified product shelf. We have also improved the pre-investment and post-investment customer experience through full process wealth management companionship. We have also promoted people's livelihood and inclusiveness of wealth management services. We help customers share the dividends of the capital market and increased residents' property income. By the end of 2025, the scale of financial assets of the group's total personal customers exceeded RMB 170 trillion.

We issued more than RMB 560 billion in entrepreneurial guaranteed loans and special loans for employment, stabilization and expansion providing financial support for stabilizing employment and promoting entrepreneurship. Second, we served consumption upgrading to make consumption more high quality.

In 2025, the consumption volume of credit card national subsidy trading increased by more than 100% year-on-year, and the balance of personal consumption loans increased by 28%. BOC promptly implemented the fiscal interest, the subsidy policy for consumption loans, benefiting a total of more than 600,000 -- 700,000 customers. In terms of service consumption and focus on supporting industries such as accommodation and catering, cultural tourism and pension. In 2025, the loan growth rate in key areas of service consumption was about 20%. It launched inclusive products such as famous, special, high quality and new loans and issued more than RMB 660 billion in operating loans to individual industrial and commercial loans to individual industrial and commercial hospitals allowing financial flows to benefit thousands of stores.

In terms of new consumption covered with the payment platforms to carry out preferential activities such as instant consumption discounts. The annual express payment and marketing activities drove transaction volume of more than RMB 80 trillion.

Third, smooth cross-border services to make consumption more efficient. We have addressed blocking the choking points in inbound consumption services with 100% coverage of foreign car cash withdraw at ATMs and the foreign card acceptance and foreign currency exchange business remained at the forefront of the market. By the end of 2025, the agency tax refund service covered 21 provincial regions ranking first among peers. The number of tax refund transactions for overseas stores coming to China increased by more than 150% year-on-year in 2025.

We also launched the Laihua Tong app, an exclusive platform for overseas personnel coming to China, providing one-stop services for food, accommodation, transport, travel and shopping. Going forward, in 2026, BOC will continue to give full play to its globalization advantages and comprehensive characteristics, we will continue to carry out the Wan Qian Bai Yi consumer benefit campaign, optimize and implement financial services in the consumption field, serve the overall national interest with financial strength, fully meet the diversified consumer financial needs of residents and contribute BOC strengths to a good start of the 15th Five-year plan period.

First, will help entrepreneurship and increase income to enhance consumption capacity. We will make every effort to optimize wealth management business, improve professional levels such as product selection, asset allocation and customer companionship. We'll also improve product full life cycle management capabilities, help residents manage their money bags and broaden the income channels of urban residents. We will support the production and operation of enterprises that stabilize and expand employment, strength and passion financial services, optimized products and services for groups such as new citizens and college graduates, help improve the multi-level social security system and contribute and release consumption potential from the source.

Second, we'll focus on key areas to support consumption upgrading. We will implement the action to improve the quality and benefit of service consumption, optimize labor services based on specific consumption scenarios, refined cultural tourism experiences and expand characteristic brands such as BOC Hui Chu You and we'll also implement policies such as relending for service consumption and pension and fiscal interest subsidies and promote the direct transmission of policy dividends to the terminal.

We'll continue to carry out the special national subsidy that is the trading activity, strengthen cooperation with new energy vehicle enterprises, key merchants and leading platforms and launch activities such as renewal, installments and full payment discounts to promote the expansion and upgrading of commodity consumption. Third, optimize the consumption environment to improve consumption experience. Thank you.

Let's move on to another question. The lady in the middle.

Dear management team, for the opportunity to ask a question. I'm from Shanghai Securities, [indiscernible]. In 2025, BOC completed the supplementary capital, the capital replacement of RMB 165 billion for common equity Tier 1 capital. Next what are the BOC's arrangements for loans supply in terms of total volume structure and direction and how will it combine the globalization and comprehensive advantages to accurately allocate the capital of a platform to key areas of the real economy and national strategic tracks?

Thank you. I invite VP, Liu to answer the question.

Thank you for your question. We in 2025 successfully realized capital replacement for the BOC to serve the real economy. By the end of 2025, our group's loan balance reached RMB 235 trillion, an increase of RMB 19 trillion or 8.6% compared with the beginning of the year. Our group's bond investment balance reached RMB 93 trillion, an increase of RMB 30 trillion or 15.7% compared with the beginning of the year.

The growth rate of corporate and consumer loans both exceeded the average level of the whole society. In terms of corporate banking more than half of the newly issued loans were invested in industries such as manufacturing, energy and transportation. At the same time, key support was given to fields such as green credit and sci-tech finance. The balance of private enterprise loans exceeded RMB 50 trillion. The growth rates of inclusive green and strategic emerging industry loans all exceeded 20%, and there were more than 300 comprehensive operation-linked financial projects. In terms of retail banking, it expanded consumption scenarios and the balance of personal consumption loans increased by 28%. At the same time, we supported the implementation of a more proactive fiscal policy, the investment scale of national bonds and local bonds increased steadily and continue to increase bond investments in key areas such as sci-tech innovation bonds, green bonds and private enterprise bonds leading the marketing, in green bond investment scale.

Overseas, the globalization advantages continue to be consolidated. In 2025, China's total import and export exceeded RMB 450 trillion, a record high and outward direct investment increased by 7.1% year-on-year ranking among the top in the world. Foreign trade has shown strong resilience and vitality. And these positive results have been achieved in international use of the RMB. All these have endowed BOC's globalization development with new missions and tasks and provided broader business development space.

First, expand the scope of customer services. We will fully serve enterprise going global, help the cross-border layout of industrial and supply chains. Loans are not only investing in traditional industries, but also expanding to emerging fields. We will also increase the marketing and renewal efforts of personal mortgage business. Second, we'll broaden the currency scope. We actively help the international use of the RMB, tailor RMB financing solutions for customers overseas. RMB loans have maintained a double-digit growth rate for 3 consecutive years, significantly higher than the overall overseas loan growth rate.

Third, we have enriched the cross-border financial product system. We issued service plans to support the facilitation of cross-border trade and proactively help realize foreign trade and foreign investment. We also launched a new generation of BOC Smart Treasury Management System. As you have mentioned, capital is a valuable resource for banks to achieve high-quality development. In the process credit supply, we also pay great attention to capital conservation and refined management of RWA. The risk density further decreased in 2025.

In 2026, the bank will adhere to the requirements of high-quality development, continue to give play to the guiding rule of capital in the allocation of credit resources and connect reasonable credit supply. We'll do well in the following. First, maintain a steady and balanced growth of total credit volume. The group's loan growth rate will remain stable compared with the previous year. The domestic RMB loan growth rate will outperform the market and overseas commercial bank loans will maintain steady growth among which overseas RMB loans will grow faster. In the first 2 months of this year, BOC's RMB credit balance has shown a good growth momentum, laying a solid foundation for achieving the annual credit supply target.

Second, the BOC's credit structure will continue to be optimized. We will further carry out the 5 key tasks of the financial sector in depth. Sci-tech Finance will solidly promote the service connection section of the end-to-end customer cultivation program. In terms of green finance, we will further support fields such as key energy, energy conservation and envision reduction and ecological protection. In terms of inclusive finance, we'll focus on customer groups such as sci-tech, innovation, international settlement, cross-border e-commerce and industrial chain, upstream and downstream.

In terms of pension finance, we increased support for high-quality projects in fields such as elderly care, elderly products and smart pension. In terms of digital finance, we'll actively integrate into digital economy ecosystem in solutions and meet the full life cycle financial needs of enterprises. We also fully support expanding the demand and boosting consumption, support the expansion of effective investment, make forward-looking reserves of national major strategic projects during the 15th FYP period, cease the opportunities of supporting financing business of new policy based, the financial tools and actively connect with key local projects. We will steadily expand personal housing loans and non-housing consumer loans business, promote the coordinated development of products, customer groups and scenarios and build complete scenario consumption ecosystem. Thirdly, we will adhere to the core position of the globalization strategy. We will vigorously improve the quality and efficiency of services for business going global, closely attract the active regions of China's foreign investment, focus on industrial needs of intelligent manufacturing, new energy, new material balancing, et cetera.

We will also help enterprises explore the global market and improve the industrial chain layout, we'll also actively provide financial services for foreign-invested enterprises and provide comprehensive financial service support for Fortune 500 foreign invested enterprises and local leading enterprises in their global operations and investment and operation in China. Fourth, we will implement the package of policies for fiscal financial coordination to boost the domestic demand. In the first 2 months of this year, the BOC deployed in advance and took the lead in the amount of newly issued loans related to SMBs and equipment renewal ranked among the top in the industry. We will also fully utilize structural monetary policy tools, solidly carry out credit supply fields such as sci-tech, innovation and transformation and carbon emission reductions to benefit more enterprises and projects.

Now next question. First row, left side, second lady.

I'm from Phoenix TV, we can see currently the status and influence of the RMB in global payments, reserves and pricing continue to rise. How does the management evaluate the new stage of this process. As the main channel bank for cross-border RMB services, what explorations and innovations has BOC made in the field -- in this field?

Thank you, Phoenix TV journalist, promoting RMB's international use is a very potent effort of BOC to build China into a stronger country. VP Yang, please answer this question.

Thank you for your question. The continuous rise of the RMB status and influence is supported by a solid economic foundation. First, China's economy is playing an increasingly important role in global economic and trade activities, laying a solid foundation for the international use of the RMB. China is the world's second largest economy and the largest trading nation. It is also the main trading partner of more than 160 countries and regions around the world.

In 2025, China's total import and export value of goods trade reached about RMB 454.7 trillion, achieving growth for 9 consecutive years and has been the world's second largest import market for 17 years in a row. RMB has become the world's second largest trade finance currency. Secondly, RMB has a stable value and reliable credit. More and more countries and market entities are willing to accept and use RMB. Based on the full caliber calculation, RMB has become the world's third largest payment currency.

Presently, central banks or monetary authorities of more than 80 countries and regions have included RMB in their foreign exchange reserves, making RMB a new safe and reliable choice. Thirdly, infrastructure for the international use of RMB is increasingly improved, providing an important guarantee for expanding the international use of RMB. BOC, Bank of China has authorized the establishment of RMB clearing banks in 34 countries and regions, basically covering countries and regions with close trade times with China. SIPs has more than 190 direct participants and over 1,500 indirect participants covering more than 120 countries and regions.

Fourthly, the scenario for the international use of RMB are becoming more and more abundant. Products and services continues to innovate, upgraded. The multi-natural central bank digital currency bridge budget has provided a new solution that balances efficiency and security for cross-border payments. The cross-border QR code payment has further expanded international use of RMB to the retail industry. The cross-border payment connect project, provide efficient, convenient and safe cross-border the payment services for mainland residents and overseas residents.

As the main channel bank for cross-border RMB services for a long time, BOC has actually promoted various business areas and achieved a series of positive progress. First, continuously expand the service network and build a global ecosystem for the international use of the RMB. Just now, President Zhang also mentioned that we covered about 64 countries and regions overseas and carried out RMB businesses in 58 countries and regions and 46 served as direct CIPS participants, serving more than 760 indirect participants. It has opened more than 1,600 RMB clearing accounts for overseas participating banks, and the cross-border RMB clearing volume has grown rapidly. We can also support the overseas investment opportunities and investors to join our capital market.

Secondly, continuously improve the efficiency and convenience of cross-border RMB payment and the settlement. In 2025, BOC's domestic branches handled cross-border RMB settlement volume of about RMB 180 trillion, accounting for over 25% of the entire market, and the cross-border RMB settlement under goods trade accounted for more than 30%. The service coverage rate of leading cross-border e-commerce customers exceeded 80%. The RMB settlement volume exceeded RMB 10 trillion, accounting for over 90%. We successfully implemented China-Indonesia cross-border QR code payment project, and was appointed as the sole pilot clearing bank for digital RMB in Laos. Thirdly, support more market entities to issue RMB bonds.

In 2025, we helped more than 30 overseas entities issue panda bonds in China with an underwriting scale of nearly RMB 38 billion, ranking first among panda bond underwriters for 12 years in a row. We also assisted Hungary in issuing RMB 5 billion of panda bonds, setting a record for the largest issuance and scale by a sovereign institution. We helped more than 80 entities issue offshore RMB bonds with an underwriting scale of over RMB 110 billion ranking first among offshore bank underwrites for the third consecutive years. We also assisted mutual finance in issuing the first green sovereign bond. Fourthly, seize on market opportunities to provide cross-border RMB loans for enterprises. By the end of 2025, the balance of cross-border RMB corporate loans and trade finance provided to enterprises was about RMB 400 billion. We took the lead in arranging an RMB syndicated loan valued at RMB 14.2 billion for Fortescue Metals Group, the world's leading iron ore producer, which is the largest RMB international syndicated loan to date.

We also provided a five-year RMB 3 billion loan to Turkish Airlines, which is the largest single RMB loan in the Turkish market. Fifthly, we actively promote the scenario and advantage of the international use of the RMB to the market and customers. Actively played the role of the Chinese leading unit in multilateral and bilateral trade and investment promotion mechanism and chambers of commerce association. We have 23 overseas institutions serving the present units of overseas Chinese-funded enterprises, chambers of commerce associations, and we also hold RMB internationalization forum in Shanghai and Hong Kong many times and carried out 19 high standard RMB roadshows overseas in 2025, covering key regions such as Asia, Pacific, Europe, Africa, and Latin America.

In the future, we will further highlight our globalization advantage, continuously improve our product and service capabilities, continuously improve the basic conditions, and serve Chinese enterprises going global and foreign companies bringing in China, and act as the main channel of cross-border business, the main force for offshore market development, and a leader in business innovation, and better serve high-level opening up. Thank you.

Thank you, VP Yang. We have the last question to be asked, so please raise your hand. Second row left, third lady, please.

Thank you management. Good afternoon. I'm from China Business Daily. Thank you for the opportunity to ask the last question. I have a question related to digital finance. What are the breakthroughs that BOC has made in digital finance? And going forward, how will BOC further improve customer experience or personal efficiency through digital finance?

Thank you for the question. Now I would like to invite VP Cai Zhao to answer the question.

In 2025, BOC resolutely implemented the decisions and arrangements of the Party Central Committee, balanced the development security, strived to do a good job in the five key tasks, further implemented regulatory requirements such as the implementation plan for the high-quality development of digital finance in banking and insurance industry, and has made the following aspects. First, consolidate the foundation for digital finance development. We optimized the computing power layout and accelerated the construction of independent, controllable, safe and efficient financial infrastructure. We deepened data governance and completed the data brand-new storage project and accumulated 94,000 data tablets connected to the group's data lake. We promoted the full application of AI, formulated the AI+ construction plan, focused on the work idea of building platforms, aggregating data, promoting applications preventing risk -- mechanism. We built a large model platform, deployed more than 10 mainstream large models and empowered the entire bank with APIs, agents, education paradigm, et cetera, achieving 3 coverages.

First, covering all levels; second, covering all institutions; and third, covering middle, front and back offices. We also focused on promoting the application and popularization in fields such as marketing, operation and customer service. The intelligent marketing assistant has covered customer managers at all levels. The intelligent Q&A assistant has benefited all network branches and the remote customer service system has covered 90% of business scenarios. We fully used AI for document recognition and review supporting a total of more than 270 types of document recognition and with a daily average call value volume of 1.5 million times, effectively improving operational quality and efficiency.

We replaced the repetitive work through automated means covering more than 3,600 scenario applications with an average of nearly 300,000 tasks executed per month. Sci-tech R&D has achieved intelligent transformation with the number of R&D assistant users exceeded 10,000. Digital and intelligent empowerment for the group's globalization development, relying on overseas information centers to build a global AI empowerment system and effectively improved the regulatory compliance and risk prevention. Second, we empowered the improvement of quality and efficiency of financial services.

We continuously upgraded the experience of corporate online service channels. Domestic corporate online banking has added products such as electronic invoices and shipping express services. Overseas corporate online banking covers 56 countries and regions, providing services in 14 languages. The monthly active users of personal mobile banking exceeded 100 million, a year-on-year increase of 7.11%. Overseas personal mobile banking covers 31 countries and regions around the world, providing services in 12 languages. We have actively promoted the use of digital RMB with a cumulative consumption amount of RMB 27.762 billion and a cumulative number of effective merchants of 13.69 million households in the year.

We have also created the cross-border e-commerce settlement product, BOC Cross-border E-commerce Connect with annual transaction volume exceeding the RMB 1 trillion mark for the first time. We promoted overseas institutions to connect with local clearance systems and directly participate in 96 overseas local clearance systems in 2025. We basically built a global custody service network and took the lead among Chinese funded peers in building a centralized clearing business model for global capital pools and 724 operation guarantee mechanisms realizing real-time receipt of overseas fund transfers.

Third, we established an intelligent risk prevention and control system. We established an integrated mechanism of intelligent risk control for head office branches and subbranches and strengthened the control of unified credit system. We have also built a concentration risk review risk view display to provide digital support for concentration risk management and asset quality management. We created a group comprehensive risk management portal with a daily average call volume of more than 200,000 times providing intelligent tools for comprehensive risk management.

We have also built an intelligent risk control 1+N model system and optimize the digital intelligent transformation mechanism. Going forward, BOC will fully implement the direction of the national 15th FYP, the spirit of the Central Financial Work Conference and the overall strategic deployment of the Group 13th FYP, promote the high-quality implementation of the FYP-related plans for digital finance and fintech take data plus technology as a dual drivers focus on the full process digital transformation of financial services, continuously deepen the integration of business data and technology and fully empower the 5 key tasks. First, fully implement the AI+ initiative, drive the digital and intelligent transformation of the entire bank.

And we have established agile and reliable AI governance mechanism and created AI application paradigm focusing on the needs of core business scenarios. Secondly, we have deeply participated in the Data Factor X initiative in the financial field to deepen large-scale application of data in fields such as operation, risk control and decision-making and fully release the value of data factors. Third, we will actively integrate into the digital economy ecosystem, improving industrial digitalization and digital public service capabilities promote the construction of open banking and slightly develop digital RMB to better serve the economic and trade development of China. Thank you.

Due to the time constraints, that's all for the Q&A session for our media. If you have further questions, please contact us at a time convenient for you. This is the first year for the 15th Five-Year plan. BOC will continue to work hard and undertake our responsibilities for the implementation of the plan. Please also pay attention to our efforts in serving real economy and high-quality opening up and our results in doing so. We are more than ready to tell the stories of the new journey together with you. That's all for today's press conference. Thank you.

[Interpreted] Investors, analysts and friends from the media, good afternoon. Welcome to the Bank of China 2025 Interim Results Press Conference. I am Zhuo Chengwen, Board Secretary of BOC. Today's press conference will be co-hosted by me and Ms. Yu Ke, BOC Spokesperson. In light of recent major event preparations in Beijing and considering everyone's schedules and participation preferences, this press conference will be conducted via live broadcasting live webcast, we extend a warm welcome to all participants joining online.

Firstly, allow me to introduce the bank's leadership in attendance. Mr. Zhang Hui, Vice Chairman and President of BOC. Mr. Cai Zhao, Vice President; and Wu Jian, Vice President, Jinliang Zhang, Vice President, and [ Liu Jin ], Member of the Party Committee. Additionally, Madam [ Zhang Ran ], representative of our bank's independent directors is also participating online. Our 2025 interim results have been publicly announced today, the presentation materials are available for download on our official website or can be viewed on the live streaming page. All financial figures mentioned today, unless otherwise stated, are prepared in accordance with the International Financial Reporting Standards, IFRS.

Today's agenda consists of 2 segments: results presentation and Q&A session. First of all, let me invite Mr. Zhang Hui, President of BOC, to present our interim results.

[Interpreted] Dear investors, analysts and friends from the media, good afternoon. Welcome to Bank of China's 2025 Interim Results Press Conference. Thank you for your long-standing trust, attention and support for the Bank of China, BOC. Please allow me first to briefly introduce BOC's operating performance for the first half of 2025 and the full year outlook. Subsequently, together with the attending members of the senior management team, we will engage in in-depth discussions and exchanges on the topics you are concerned about.

And just now the senior management team members were already introduced to you may notice there are some new faces. And we have a stronger leadership now at the senior management team of BOC. And please rest assured you will have higher return as investors. Since the beginning of this year, BOC has thoroughly implemented the decisions and deployments of the CPC Central Committee solidly advanced various management and operational tasks while serving high-quality economic and social development, achieving positive results. First, steady progress in financial performance. The group achieved operating income of RMB 329.4 billion, a year-on-year increase of 3.61% with net fee income growing 9.17% year-on-year. Post-tax profit reached RMB 126.1 billion, and post-tax profit attributable to the bank's shareholders was RMB 117.6 billion, remaining stable year-on-year with the trend of change continuously improving compared to the first quarter.

The NIM stood at 1.26%. The ROA was 0.7%. ROE was 9.11% and the cost-to-income ratio was 25.11% all maintained within reasonable ranges. Second, steady growth in assets and liabilities. Total assets reached RMB 36.79 trillion, an increase of 4.93% from the end of the last year. The proportion of high-yielding assets such as loans and bond investments increased by 2.32 percentage points. Total liabilities amounted to RMB 33.66 trillion, an increase of 4.85% from the end of the last year. The proportion of customer deposits to total liabilities increased by 0.7 pps. The market competitiveness of RMB-denominated average daily deposit domestically has improved year-on-year and the leading advantage in foreign currency deposits has expanded.

Third, improve the quality and growth in customer base. The number of total corporate customers, total individual customers and the total financial assets of individual customers steadily increased customer structure optimized with the number of medium-sized corporate credit customers offering higher comprehensive returns, increasing by 13.48% from the end of the last year and the proportion of mid- to high-end individual customers rising by 0.16 pps. Fourth, solid and effective risk prevention and control. Asset quality remains stable with the NPL ratio at 1.24%, down by 0.01 percentage points from the end of the last year. The NPL coverage ratio was 197.39%. The bank was among the first to complete the replenishment of RMB 165 billion in core Tier 1 capital. The core Tier 1 CAR and CAR reached 12.57% and 18.67% respectively, up by 0.7 percentage points and 0.69 percentage points from the end of the last year. Before the capital increase, laying a more solid foundation for BOC's medium- to long-term development.

Fifth, continuous commitment to shareholder returns. We formulated and implemented market value management measures, focusing on stable operations to continuously create long-term investment value for shareholders, efficiently completed the interim and financial -- final dividend for 2024 with a total distribution of RMB 7.36 million. The Board meeting held today proposed an interim dividend for 2025 of RMB 1.094 per 10 shares totaling RMB 35.25 billion, maintaining a high payout ratio of 30%. Specifically, in the first half of the year, BOC proactively addressed the new situations, responding to new challenges with solid and effective measures and seized new opportunities with an innovative spirit, achieving new breakthroughs in its own high-quality development, mainly reflected in the following 5 aspects.

First, continuously optimize the financial service supply fully supporting high-quality real economy development. By the end of June, RMB loans issued by domestic institutions increased by RMB 1.41 trillion from the end of the last year, up 7.72%. We increased the financial support for key areas such as 2 major projects and new 3 initiatives. The balance of equipment renewal loans exceeded RMB 90 billion. Loans directed to the manufacturing sector grew by 12.99% from the end of the last year and loans to strategic emerging industries increased by 22.92%. We actively supported initiatives to boost the consumption with personal consumption loans growing by 15.42%. We adhere to the 2 unwavering supporting the development and growth of the private sector, the private economy with loans to private enterprises increasing by 12.93% from the end of last year.

We helped stabilize the real estate market, meeting rigid and upgraded housing demand. We supported the healthy and stable development of the capital market with credit services for listed company stock repo and increased plans in maintaining a market-leading position. Second, we solidly executed the 5 key areas of finance, supporting the development of new quality productive resources according to local conditions. We seized the market opportunities such as AI and M&As of tech enterprises. We innovated technology, finance products like computing power loans. The balance of technology loans reached RMB 4.59 trillion. The number of credit customers among technology enterprises exceeded 160,000. Comprehensive services provide cumulatively exceeded RMB 780 billion. The intended scale of the Sci-Tech Innovation final fund, exceeded RMB 50 billion.

The balance of green loans increased by 16.95% from the end of last year. Green bond investment and underwriting scale remained the highest among Chinese financial institutions. We solidly advanced the implementation of the financing coordination mechanisms for small and micro enterprises. The balance of inclusive loans of SMEs reached RMB 2.65 trillion with the number of borrowing enterprises surprising 1.72 million. The number of credit customers and coverage rate for national and provincial level little giant specialized and sophisticated enterprises that produce new and unique products led the market. We further increased the financial support for the pension industry ranking high in the market in terms of the number of enterprises, annuity individual accounts and the scale of enterprise new custodial funds. Digital finance accelerated business empowerment depending on the application of new technologies, like the number of MAU of personal mobile banking grew by 8.59% year-on-year consumption volume by digital RMB remained market-leading position.

Thirdly, we fully elaborate global presence and comprehensive operations to support high-level opening up with further increased the financial supply for stabilizing foreign trade. The volume of international settlement handled by domestic institutions exceeded USD 2.1 trillion up 16.5% year-on-year, maintaining a market-leading position in international trade settlement business. We proactively serve the new forms of foreign trade formulating service loans to -- service plans to support cross-border trade facilitation. The total transaction volume of cross-border e-commerce increased by 42.1% year-on-year. The leading advantage in cross-border RMB business remain solid. The number of direct and indirect participants in the cross-border interbank payment systems, CIPs and the number of RMB clearing banks remained the highest among peers. Cross-border RMB clearing volume exceeded RMB 560 trillion, maintaining a global leading position.

We actively serve going global and bringing in such strategies. Guided by the 8 actions for high-quality Belt and Road cooperation, we supported a major landmark projects and small yet smart livelihood programs. We ranked first in underwriting volume for Panda bonds, Chinese offshore bonds and offshore RMB bonds. The full market size of cross-border custody continue to rank first among Chinese financial institutions. Overseas commercial banking accelerated transformation development with continuous optimization of the asset and liability structure, overall improvement in basic product service capabilities and strengthened IT support. Operating income and pretax profit for the first year for the first half of 2025 increased by 9.02% and 10.88% year-on-year, respectively. Comprehensive operations involved in quality -- improved in quality and efficiency with core business indicators of several subsidiaries advancing BOC Wealth Management moved up 2 places to rank first among the big 4 banks. BOC Aviation's owned fleet value ranked first in Asia, BOC International's IPO underwriting ranking rose to 6 in the market.

Fourthly, balanced the development and security, fully preventing and mitigating financial risks. We deepened the comprehensive risk management system, conducted forward-looking control of various risks and strengthen systematic risk prevention. We enhanced the credit asset quality management, steadily progressing NPL resolution, improve the quality and efficiency of a recovery and disposal, and maintained reasonable and sufficient risk buffer levels. We strengthened overseas risk management to ensure the safety of overseas assets and personnel effectively responding to financial market fluctuations proactively conducted special stress tests in key areas. We accelerated digital transformation, continuously improved the group's technological operation level.

We consolidated basic technological capability solidly, advanced infrastructure and construction with the total number of servers in the group's cloud platform reaching 40,000. We deepened the innovative application of new technologies, released the AI application and promotion work plan and utilize the large model LLM technology to empower over 100 scenarios across the bank.

We also deepened efforts to reduce the burden on grassroots levels with enterprise-level RPA covering over 3,300 scenarios. Going forward, BOC will continue to focus on its main responsibilities and businesses fully leverage its global presence and comprehensive operations, solid advance is on high-quality development, while serving the real economy and lay a solid foundation for the conclusion of the 14th 5-year plan period and the commencement of the 15th 5-year plan period. First, we will optimize our financial supply and improve the diverse and professional product and the service system. We will actively serve domestic demand expansion, consumption promotion and investment stabilization. We will increase credit allocation to key areas and weak links. We will support enterprise production, operation and job in stabilization and expansion through finance. BOC will continuously improve the product and service system highly adaptable to new quality productive forces focused on the overall building modern people's cities supporting the stable and healthy development of the real estate market through finance.

Second, we will leverage advantages and characteristics to enhance global layout capabilities and international competitiveness. We will strengthen financial support for key regions and areas of Belt and Road cooperation will improve the quality and efficiency of services for Chinese enterprises going global and foreign investment coming into China. We'll support the construction of the RMB clearing network and expand the leading advantage in cross-border RMB clearing. We will fully meet customers' diversified investment and financing needs in a low interest rate environment and enhance the adaptability and competitiveness of comprehensive financial services.

Third, we'll focus on risk prevention and control and firmly at the bottom line in preventing systematic financial risks.

And fourthly, we will strengthen asset quality management, enhance forward-looking digital market risk, improve the quality and efficiency of internal control and compliance management, accelerate digital transformation continuously consolidate the foundation for high-quality development and deepen the application of new technologies like AI, agilely respond to market and customer needs to accelerate product innovation and promotion.

Friends, facing a complex and changing internal and external environment, all employees of BOC will unite and overcome difficulties and make progress to repay the trust and support of our customers, investors and all sectors of society with stable operating performance. Thank you. And your questions are more than welcome.

Thank you, President Zhang. Now we move on to the Q&A session. [Operator Instructions] Meeting assistant, please take the first question.

Sure. Thank you for giving me the first opportunity. I'm Yan Meizhi from UBS. First of all, I would like to congratulate BOC for achieving very prudent results in the first half of the year. So since the beginning of this year, the bank has faced complex and changing macro environment. So how does the management evaluate your performance in the first half of the year?

Just now, President Zhang has mentioned key areas of work for BOC. So given the latest domestic and international situation, what's your business objective and the strategy for the future?

Thank you very much for your continued interest in BOC's operation strategy, I will address this question to Mr. Zhang.

Thank you for your question. Just now I have given you a comprehensive introduction of the business results. I've mentioned that in the first half, the financial benefits of BOC was steady and the assets and liabilities have steady growth. We have done a good job in risk control and improve the quality and quantity of our customers. And this has been fully recognized by everyone here. Now, how do we see the results of the first half of this year?

Well, I think there are 5 areas. First, we have fully implemented our responsibility as a state-owned major bank. We have implemented the spirit of the Central Politburo Committee meeting on April 25, focused on the 2 majors and 2 new areas and play a bigger role in serving the real economy. In terms of fulfilling our responsibilities as a major state-owned bank, BOC has made our own contribution and efforts. Also, it has laid a very good foundation for our continued business growth. For example, RMB loans of domestic institutions increased by RMB 1.41 trillion. Also our loans to -- mid- to long-term loans to manufacturing sector and to the business sector have outpaced our peers. We've also implemented the consumer support policy and the loans for trading consumption have increased nearly threefold compared with the last year.

Also in Technology Finance, our new financing has exceeded our peers. So this is the first thing. Second, we have consistently created very good shareholder returns. Ever since BOC's listing after the joint stock reform, BOC has delivered over RMB 940 billion of dividends. So since 2015, the dividend ratio has remained at 30%, which is very high. And the investors fully share the business results of the BOC. Especially since the beginning of this year, we have overcome the difficulties and challenges to promote high-quality transition in a low interest environment. And the operating income increased by 3.61% year-on-year and is expected to maintain at this level among the state-owned banks.

Third, we have actively seized the market opportunities brought about by the changing external environment. Actually, this has brought a lot of opportunities for the transition of commercial banks like us. We have seized the opportunities of implementing the package of financial policies. And we have introduced a series of comprehensive service plans for AI and the going Global of businesses. We've also seized the opportunities of the recovery of the capital market, and we have built the open wealth management platform and developed the Wealth Management business. And this fees from the wealth management business have also achieved rapid growth and outpaced the market. And this is also hedged the insufficient credit demand and also helped us address the profit and income difficulties in the low interest income.

Number four, continue to consolidate our global advantages. We have consistently enhanced the resource input for the overseas institutions. Now we cover 64 countries and regions and established a financial service network of one access and global response. In the first half of this year, we have consistently optimized the One bank, One policy strategy for overseas institutions and the contribution -- the profit contribution of overseas institutions reached 29.76%, up by 2.12 point percentage points year-on-year.

And #5, we have strictly observed the bottom line of risk compliance. We have been among the first banks to complete the replenishment of RMB 165 billion of CET1. We have improved and deepened the comprehensive risk management system development and have maintained a very good and reasonable level of risk compensation capabilities. We've also improved the overseas risk shock response mechanism and has carried out an exercise for responding to extreme scenarios so that we can better control risks for the overseas institutions.

In the second half of the year, we face some shared pressures and challenges as our peers, but we are competent to address those challenges and to achieve steady operation results. I think it can be seen from 3 aspects. First, in the domestic low interest environment, this is our common challenge. We will have to continue to improve our asset and liability structure and further expand the noninterest income. Second, the Federal Reserve will probably start -- will probably start the interest cut. So we need to seize this window period and make sure that the overseas business will make more contribution to our overall business. Third, we will continue to address the risk pressures from inclusive finance and consumer finance. We need to strengthen risk control in key areas so as to ensure asset quality and control risks. Just as you have mentioned. In the interim results release, I have talked about 8 [indiscernible]. We will continue to follow this strategy to carry out our operation work.

And I would like to highlight the following for your reference. First, consolidate our advantages to improve our global competitive advantage. We need to leverage our competitive advantage of global layout to offset the low interest rate environment so that our global business will make greater contribution to the group. As you can see in the first half of the year, our global advantage have played a very important role in heading -- in offsetting the risks of the external environment. So in the future, we will improve our global financial markets business, global financial institutions business and to accelerate capacity building for the global custodian businesses so as to nurture new growth points for our business and make us more competitive globally.

Second, we need to maintain our net interest income. We need to consolidate the customer deposit base and to increase the size of low-cost deposits. We need to seize the market opportunities offered by the wealth management businesses and to further increase our total financial assets. We also need to reduce the cost of liabilities and so that the low-cost customer deposits and a comprehensive income will play a greater role. Also, we need to expand to more medium to large -- medium-sized credit clients, improve the return on assets. Also, we need to be flexible in investment -- bond investment so as to increase their contribution.

Third, coordination for better comprehensive services we need to establish a comprehensive asset management platform for the group. So as to meet the investment and financing needs of the customers in a low interest environment. We need to dive deeper into the Hong Kong market because we have a lot of advantages in the Hong Kong market. We need to fully leverage that, especially investment, insurance and the comprehensive capabilities. Also, we need to establish a technology finance ecosystem so as to expand our early mover advantage in patient capital.

And #4, we need to maintain a high contribution of the noninterest income. We need to accelerate strategic transition and promote the development of noninterest business, among interested businesses so as to ensure relatively rapid growth. For personal business, we need to establish an open wealth management platform covering whole group and 4 markets. And for corporate business, we need to seize opportunities of bond issuance, mergers and reorganizations and public REITs. So as to expand the income for the M&A adviser consultants and seize the opportunities in market volatilities and make sure that the financial market business make greater contribution to the group's value.

And #5, reduce cost and increase efficiency. We need to focus on intensive operation that is strong front desk, intensified middle desk and efficient back end so as to optimize business procedures and risk control.

And second, we need to strengthen the granular management of the financial cost, focus on resource guarantee in key areas and remain committed to strategic and benefit orientation so as to improve the efficiency of investment.

Number six, we need to make sure that we have prudent operation. We need to enable digital and smart transformation of the risk management. The management has developed relevant plans, and we are implementing those plans. And just as you have pointed out, inclusive finance, consumer finance has some key risk areas and we need to strictly control the new NPLs and strengthen substantive collection and enhance asset quality control for key accounts. Also, we need to strengthen compliance control for overseas institutions to improve the efficiency and quality of internal control and compliance management.

Number seven, remain target-oriented to optimize customer and business structure. For corporate clients, we need to expand more midsized clients and strengthen the digitalized operation system. So as to dig deeper into those clients that offer high comprehensive value. And for financial institutions business, we need to have granular management and operation to target more international clients. And for retail clients, we should target high net worth individuals and leverage our global advantages to play a better role in the asset allocation for those high net worth individuals. And also, this is also an important way to expand our low-cost liabilities. And in terms of business structure, we need to focus on the 5 key areas. For example, technology finance, we need to create an ecosystem and for green finance, we need to have more credit supply for the highway -- high-speed railway in green buildings operation.

For inclusive finance, we need to strengthen the financial coordination mechanism for small micro businesses. And for pension finance, we need to enrich our product offerings for the senior citizens and also for technology and digital finance, we need to promote digital transformation. We also need to improve our government financial services so as to create a unique model of BOC in serving the government financial needs.

Number seven -- #8, we need to empower our business through digital technology and enhance our basis of self-controlled technology, just as you have heard, BOC and its branches and subsidiaries have made a lot of attempts in digital empowerment and have yielded very good results. And for the group level, we are actually spreading and promoting these practices and have yielded good results.

We strengthened the application of new technologies such as AI to improve the efficiency of customer services and management. So in the first half of this year, China's capital market has recovered and both the Shanghai and the Shenzhen stock markets have rallied and bottomed out and BOC has the confidence and capabilities to leverage this capital market recovery to create more value for the investors. And also, I hope that the investors will continue to pay attention and support BOC.

Thank you, Mr. Zhang. Okay. Next question, please.

I'm Zhang Shuai from CICC. We know that we are in a low interest environment. And so net interest income is under a lot of pressure. And that makes noninterest income even more important. So could you give us briefing of the core drivers of the noninterest income growth in the first half of the year and also give us an outlook for the trends in the second half of the year. Will this trend continue?

Thank you, Mr. Zhang from CICC. And I would like to invite Vice President, Zhao Cai to answer this question on noninterest income.

Thank you for your question. In the first half of this year, the group achieved a noninterest income of RMB 114.6 billion, including net fee income of RMB 46.8 billion as the domestic commercial bank with the highest level of internationalization and comprehensive operations, noninterest income, such as fees accounts for over 30% of operational income. As Vice President Zhang has mentioned just now, its contribution to the group has been steadily increasing in recent years, playing a positive role in hedging the impact of interest rate cuts domestically and overseas.

According to our analysis, this was mainly attributable to the following aspects. First, seizing capital market opportunities to grow wealth management income by serving customers asset allocation needs, proactively optimizing business deployments and expanding total customer financial assets serving the national strategy and policies, our wealth management income continue to grow. Domestically, focusing on the common prosperity goal and prioritizing customer experience, our fund distribution fees increased by 4%. Wealth Management product distribution fees grew by 3.3%, with us as the agent and precious metals income rose by 37%. In addition, the impact of the unified reporting and implementation policy for personal agency insurance was gradually absorbed with significant improvement in distribution volume and fee trends.

Meanwhile, capitalizing on active Hong Kong stock market and warming investment environment, agency fees for insurance, stocks, funds, et cetera, in Hong Kong and Macau institutions doubled and investment banking and asset management comprehensive company fees as well as insurance service income from insurance, comprehensive companies both achieved double-digit growth. Second, optimizing comprehensive financial services to stabilize the basic fee income base. We consistently emphasize customer and account expansion, continuously strengthening the business foundation. Domestic corporate settlement fees increased by 5.8%. We closely followed the national proactive fiscal policy and serving -- served customers' financing needs. Our bond underwriting fees grew by 25.3%. Leveraging advantages in foreign trade and foreign exchange business, personal international settlement fees rose by 13%, and spot ForEx settlement fees increased by 2.2%.

Thirdly, capturing financial market opportunities to maintain contributions from other noninterest income serving customers' capital preservation needs amid interest and exchange rate fluctuations expanding client fund trading business, driving steady growth in the group's net trading income. We have aligned with the trends in domestic and foreign currency bond markets, opportunities and we prudently conducted operations dynamically optimize the investment portfolio structure, which has led to stable growth in the group's financial investment income. Going forward, as macro policies become more proactive and effective economic growth momentum and vitality will recover faster and financial consumption behavior such as wealth management and payment settlements by residents and enterprises will become more active presenting opportunities for the development of BOC intermediaries business.

We'll closely focus on customer needs, prudently grasp market conditions and maintain stable and healthy development of noninterest business. We will work hard on 3 aspects. First of all, wealth management. We will actively adapt to the positive trend in capital markets adhere to the concept of synergized operation of total financial assets, leverage the advantages and channel resources of both markets, that is onshore and offshore markets. Strengthen asset allocation services and enhance all-around revenue generation capabilities. We will enrich the whole group plus home market open wealth management platform vigorously expand fund distribution, agency insurance, wealth management products and precious metals business, achieving value win-win results for customers and the bank.

In terms of settlement business, we'll focus on growing account management and settlement needs of market entities. We will strengthen the full chain service capability of transaction banking capitalized on the favorable environment of marginal recovery in consumer demand, enhance the market competitiveness of fast payment products and steadily increase the contribution of anchor type income. In terms of the financial markets business, we'll fully seize the opportunities presented by RMB internationalization, improve emerging market currency services and the offshore RMB product system and strengthen market maker functions. We will provide exchange rate risk management and cross-border investment and financing services, capture the expansion opportunities of global asset management industry in the low interest rate environment and increased income from ForEx settlement, international settlement and custody business. We'll enhance our adjudication of macroeconomics and market trends, balance risk and returns and seize business opportunities amid market fluctuations.

Now the next question.

Senior management members. I have a question about NIM. The low interest rate environment is a challenge faced by the entire industry since the beginning of the year, BOC's management has implemented a series of solid and effective measures. Can you give us an outlook on the NIM trend in the second half of the year? Sorry, I forgot to introduce myself. I'm from JPMorgan.

Yes, I know you, Madam Lei. Yes. Low interest rate environment is a big challenge faced by the entire industry. And just now when President Zhang made the presentation, he also mentioned that point. And now let's invite President Zhang to address the question.

Thank you for your question. Yes, the NIM of commercial banks has always been a focus of attention. In recent years, the NIM of the domestic banking industry of China has generally narrowed significantly and BOC's NIM performance target is no worse than main comparable peers. And now we have realized the target and I know that you are concerned with this question because compared with our comparable peers, our NIM is slightly lower than theirs.

So first of all, if you look at the change trend in the first half of this year, our NIM is 1.26%, down 14 bps year-on-year and down 3 bps from the first quarter. So if you look at the quarter 1 and quarter 2 changes, it is a large narrowing margin trend. That is the trend. And when you pay attention to the -- when you follow the operations of BOC, you need to pay attention to the advantages and the characteristics of BOC. You should not only pay attention to NIM, but also the overall changes in our income and performance. As Vice President, Cai Zhao responded to the previous question, compared with comparable peers, BOC's noninterest income percentage in our income is higher, more than 1/3. In the first half of this year, the percentage reached 34.79% that is a very good level compared with our peers in Chinese mainland. And for overseas institutions, noninterest income growth trend is very good. In the first half of the year, the growth was more than 70% year-on-year, playing a positive role in achieving greater shareholder value.

So while the operational income is not showing a very favorable picture, our income still -- this income still increased by 1/3 in terms of the operating income. So you should pay attention to the overall changes in the income and performance of BOC instead of only pay attention to NIM. Of course, NIM is the fundamental indicator for a bank and we have made strategic arrangement. First, we need to get the bottom line of NIM. And in the first half, we hedged against the impact of the low interest rate environment. We have conducted forward-looking analysis and taken effective measures.

First, we increased asset allocation to enhance fund utilization efficiency. Credit allocation, maintained steady and balanced growth with RMB loans from domestic institutions increasing by RMB 1.41 trillion from the beginning of the year, over RMB 200 billion more than the same period last year. And at the same time, we seized opportunities in domestic and international markets and increased the bond investments. The proportion of bond investments in interest earning assets rose by 2.4 percentage points year-on-year.

Our second measure was we continuously optimize the liability structure to effectively reduce liability costs. And the scale of low-cost customer deposits with market competitiveness in improving for 3 consecutive years. And third, we have fully leveraged the global advantages to strengthen centralized management of foreign currency funds. With U.S. dollar interest rate cuts, we dynamically adjusted active financing strategies and we have also smoothen the channels for domestic and overseas fund utilization to fully utilize the benefits of domestic low-cost deposit funds and improve the efficiency of foreign currency fund utilization. Through these measures, BOC's asset liability structure continued to optimize pricing capabilities kept improving, achieving coordinated development of both volume and price.

As I have mentioned, entering the second quarter, the month-on-month decline in NIM narrowed significantly. Overall, at present, the main reasons for the NIM decline are the continuous downward trend of LPR since last year. And also another factor is the adjustment of the existing mortgage rate. And third factor is the flat interest rate cuts, which led to a faster decline in asset yield compared to liability costs. It should also be noteworthy that in our operational strategy, BOC fully leveraged its advantages in financial markets, foreign exchange business and actively managed asset liability mismatches in different currencies through ForEx swaps.

This indicator is having a lot of impact on NIM. With the same standard we calculated NIM will be increased by 3 bps from 1.26%. And then the year-on-year decline would -- so that will be similar with the whole industry strength. Looking ahead to the second half of the year, from the external market perspective, the domestic banking industry as a whole faces a low interest rate environment and expectations of USD interest rate cuts are heating up. The banking industry's NIM will still be certain narrowing pressures. BOC will be based on its own asset liability structure and business characteristics and fully mobilize various positive factors to play a supportive role in the NIM.

First, we'll continuously strengthen deposit and lower management to effectively hedge against the LPR decline pressures. With -- as the RMB time deposits gradually mature and reprice the positive impact of declining liability costs of BOC will gradually emerge effectively hedging against the downward pressure on RMB asset yields. On the other hand, BOC will continue to optimize its product structure. We will intensify efforts in expanding key business -- in expanding key business such as payroll services, fast payments and third-party depository services and grow the scalable cost deposits. Such measures are already yielding results. I'm sure that the low-cost liability scale will be expanded. In terms of the loan business, as I have mentioned, for corporate customers, we will further enhance the strategic expansion of the customer base of medium-sized businesses and also the income from corporate customers.

In terms of the individual customers, we'll also enhance personal asset management development so that we can increase the overall level of loan pricing. And BOC will also actively implement regulatory requirements and ensure self-discipline. We will resist disorderly competition. This will be conducive to the deposits interest bearing results and the overall improvement of loan and deposit situation. Second, we should seize the opportunity of high interest rate in the U.S. and increase our investment in foreign currency denominated bonds to improve the efficiency of foreign currency fund utilization.

So we are ahead of our peers in terms of our domestic foreign currency deposits and in the future, we will seize this window opportunity and increase our investment in foreign currency bonds and enrich the investment types. And third, leverage our global operation advantages and stabilize the NIM for the group. We will leverage the leading role of the Hong Kong and Macau region and encourage other key overseas institutions to leverage their local market advantages and dynamically adjust their business strategies as to respond to the market interest rate changes and just consolidate the foundation for local operation development and improve the market competitiveness of the main business. So as to make greater contribution for stabilizing the group's NIM.

Overall, we should fully seize the opportunities offered by the market and be more proactive, timely and targeted in our management and operation to properly respond to the impact of the low interest environment so as to promote the high-quality development of the group.

Thank you, President Zhang. Let's move on to the next question.

I'm [indiscernible] in from GF Securities. My question is about asset quality. So since the beginning of this year, the pressure points for BOC's asset quality. Are there any changes about that? And what's your outlook for the future? As for the key industry capacity governance, so what is BOC's credit strategy, credit exposure and asset quality?

Okay. Mr. Liu Jin, please answer this question.

Thank you for your question. Since the beginning of 2025, BOC has strengthened proactive management of credit risk and improve our granular management of the risks, in particular, we have improved the efficiency of asset quality and management. We have done a good job. As of the end of June, the NPL ratio of the group stood at 1.24%, down by 0.01 percentage points over last year's end and provisioning coverage ratio was 197.39%. And we have reasonable risk compensation capability.

Now the pressure mainly come from 3 areas. First, domestic corporate business, mainly the property market risk. From the perspective of new NPLs, the real estate market remains the biggest source of new NPLs but a substantive new NPL has slowed down. As the policies on both the supply and demand end of the real estate market takes effect, we expect that the real estate market will hit the bottom and rally out. And second, for retail business. In the first half of the year, the retail operation loan and consumer loan NPL has increased year-on-year. We expect the asset quality will continue to face pressure for some time to come, and we have taken some measures that is we've strengthened the whole process risk management.

And also for such assets, we will have better expectations management. And the third part is about the overseas business. In the first half of this year, the new NPL has declined a little bit, but we are still coolheaded because in the second half of the year, there are still uncertainties in the external environment. So BOC will continue to strengthen the risk judgment, prediction and response and solution in key areas and regions and strengthen the differentiated support for the premium clients and promote the high-quality development of the overseas business. So looking into the second half, we expect that China's economy will continue to see steady growth and development, and the BOC will continue to strike a balance between development and security, and we are confident to maintain high quality and stable development of the group's assets in 2025.

As for your second part of your question, for the new policy requirement issued by the State Council. And after the Central Economic and Financial Affairs Committee's meeting in July, the politburo have put forward the requirement to crack down on the unorderly competition of the businesses and promote the capacity governance of key industries. And for BOC, we mainly focus on the key industries such as NEVs and PV panels. And we have just timely adjusted and optimized our credit policies and strategies. We remain committed to a market-based and law-based business development and risk management philosophy, so as to address the structural conflicts and there are several key points. First, implement differentiated strategies for key industries. There are support and there are control measures. For companies with premium capacities, we will provide support for them. And for the backward capacities, we will strictly control the credit supply.

Second, we support mergers and reorganizations within the industry, so as to strengthen the consolidation of the lead companies. And third, support the transition upgrading and technological innovation of the key industries, focus on key technology breakthroughs and the nurturing of new growth points so that the industry will become more high ended. Now the overall size of credit extended to key industries at BOC is reasonable and asset quality is stable. And in the future, we will continue to follow the requirement of the nation's industry policies and continue to help address the structural problems in key industries and ensure the steady quality of the assets while preventing risks. We will also actively pay attention to business opportunities of industry consolidation and M&As so as to achieve better business development for ourselves.

Next question, please.

My question is about credit extension and credit growth. So after the capital injection, will BOC adjust your credit growth plan for the whole year? And which areas do you think the credit demand will come from for the second half of the year and how to conduct credit supply?

Okay. Thank you for your question. Mr. Yeung will answer the question for you.

Thank you for your question. In the first half of the year, BOC has actively implemented the macro control policy requirement and worked hard to improve the efficiency of financial services -- financial sector serving the real economy. And the credit extension have achieved a steady growth.

As of the end of June, our domestic RMB loan has increased by RMB 1.1 trillion over year beginning, up by RMB 200 billion. In June, we have completed the capital replenishment. CET1 is the main pivot for the banks to serve the real economy and achieve high-quality development. Judging from past experiences, the injection of CET1 has a leverage effect. Every CNY 1 of core capital can enable several times of credit supplies. So for the long run, this capital injection will enable us to better inject a dynamism for the real economy with more sufficient capital strength. better financial services and more effective risk control. So as the proactive fiscal policy and moderately easy monetary policy continued to be implemented. We believe that market vitality will continue to increase, and we will seize -- fully leveraged the business opportunities brought by the capital injection and follow the existing plans to conduct our credit extension work. While maintaining the steady and balanced growth of the total credit supply, we will further improve the fund utilization efficiency and the level of financial services to consolidate our customer base and the reserve of premium projects. We should focus on the 5 key financial services areas and consolidate the good recovery of the economy. First, strengthen our technology finance capabilities, established a coordination mechanism to establish a 3-dimensional network coverage capabilities, professional equity investment capabilities, differentiated credit support capability and diversified financing and fundraising capabilities to create an ecosystem for the technology innovation services. Second, to promote infrastructure project development. We'll actively participate in the signature projects and support the upgrading and transition of the manufacturing sector [indiscernible] to provide strong support for the transition of new and old drivers. Third, consolidate the advantage in green finance, focus on green technology, energy conservation and decarbonization and the green transportation, optimize products and services and to innovate the carbon extension collateral and collateral loans and the transition loans. Fourth to provide financial services to stabilize foreign investment and foreign trade. We will work with the Ministry of Commerce to build this brand of invest in China and hold relevant promotion and publicity activities to implement the multinational comprehensive financial services programs. Number five, to promote better quality and efficiency of the consumer loans, to support the trade-in programs and the national subsidies expansion and provide financial services for the trade-in policies for consumer products and to make sure that the policy dividends will directly reach the consumers and to make our contribution for unleashing the consumption potential. And number six, implement the coordination, financing corporation mechanisms for the real estate sector, implement the spirit of the Central Urban Meeting Conference effectively improve the competitiveness of the new home loans and also for the second home loans to meet people's housing needs for elastic needs and improving needs and also introduce relevant procedures for micro and small businesses and effectively help better financing for the SMEs and micro businesses so as to provide high-quality and effective financial services for the clients.

Thank you, Mr. Yang. Our next question, please.

Hello, everyone. I'm Xu Ran from Morgan Stanley. My question is about global operation over the past 2 years. The BOC's advantages in global operation has been fully reflected in your performance results, and we just won the recognition of the market. However, given the increasing uncertainties of the external environment, how can we get to understand the differentiated features and outlook of BOC? Also, can you share with us BOC's global operation status and development strategy from the perspective of a regional layout and business categories?

Indeed, global operation is our advantage and draws the attention of the investors and Mr. Zhang will give you an answer. Thank you.

Thank you for your attention and your question. Globalization is BOC's most prominent differentiating advantage. It's like our biggest highlight. And over the past 130-plus years, BOC has always adhered to the concept of global development, forming our own unique characteristics and advantages. Going forward, we'll continue to adhere to this strategy that is global operations. and accelerate our efforts. In the midyear, we had a conference on global operations. We stated that we'll continue to insist on this strategy. It is a core strategy for us. That is also how we will serve our real economy diplomacy and international development. This is also a task for us to have our own development. You have mentioned that over the past 2 years, globalization differentiating advantages has given us a lot of benefits. Yes. Indeed, after efforts in the first half of the year, BOC's global development has achieved further new breakthroughs. The operating income and pretax profit of overseas institutions increased by 14.43% and 10.29% year-on-year, respectively. Their contribution to the group was 23.77% and 29.76%, respectively. Going forward, BOC will continue to enhance its global deployments and international competitiveness and continuously consolidate and expand its global advantages. Of course, what investors are interested in is the global external environment and the interest rate cut trend and their impact on our globalization advantages. We have made forward-looking arrangements, and will work on the following [ 6 ] aspects to cope with such risks and challenges. First, accurately navigate the characteristics of different regional markets and strive to create a new global pattern with Hong Kong and Macau as the main body and support multi-pillar development. We will continuously consolidate the advantages of being a leading mainstream bank in Hong Kong and Macau, expand and strengthen BOC Hong Kong business and make the integrated development of Southeast Asia, the top priority of the group's global operations. You know starting from 2017, Southeast Asian region, was -- began to be led by BOC Hong Kong. BOC Hong Kong is our regional headquarter which normally serve the Hong Kong region, but also Southeast Asian region. So BOC Hong Kong will play its role as a mainstream bank, so that it's capabilities in different fronts can further empower the development of Southeast Asia and its role in this regard is gradually playing out, and we'll continue to strengthen our efforts in this regard. And we will take into consideration the different characteristics of different regions to strong -- to have high-growth regions development like Middle East, Southeast Asia, America, et cetera. Second, we'll continuously strengthen domestic overseas interactions and seize the major opportunities of China's high level opening up, RMB has become the world's fourth largest payment currency and the third largest trade financing currency, coupled with the restructuring of global supply chains and trade relations. This brings broad market opportunities for BOC's global operations. BOC will proactively leverage the coordination effects and income complementarity of domestic and overseas business, promote overseas with domestic, support domestic with overseas business, coordinate internally and externally and have good interactions with our global operations to effectively enhance the group's overall financing -- financial stability and growth is resilience. Thirdly, we'll actively promote the diversification of the diversification of the group's business and expand and strengthen financial institution and financial market businesses. We'll increase marketing and expansion of financial institution customers, comprehensively enhanced comprehensive customer service capabilities, increase customer asset allocation, and expand financial institution customers' bond investment, trading scale and foreign exchange trading volume so that we can continuously improve the comprehensive value contribution of financial market business, optimize bond investment structure, enhance global customer group quotation service capabilities and consolidate and expand the competitive advantage of leading Chinese peers. We hope that we can -- we and financial institutions that share complementarity with us in terms of business and customers, we can work together with each other. In the first half of the year, together with some commercial banks, we are making full use of cross-border connect to empower other Chinese-funded peers so that we can have win-win results. At the same time, together with leading insurance groups, we have further conducted joint services to develop new products involving both commercial banks and insurance companies. This work is going on and has yielded preliminary results. Fourthly, we will enhance comprehensive financial services and accelerate the development of global custody capabilities. We'll continuously increase resource investment, enhance the basic product service capabilities of overseas institutions, and continuously improve the comprehensive financial service system. In the first half of this year, BOC has formulated the 3-year development plan for overseas custody business. We'll accelerate the improvement of our custody network, ensure the continuous improvement of the custody product service system and operational efficiency and continuously expand its absolute leading position among comparable peers. In the current -- amidst the current environment, overseas custody business has a huge market, and we have early comer advantage. We are forward-looking, and we have anticipated such market changes. So previously, we have already made our plan for expansion in this regard. We are confident that within 3 years, we will be able to build up our capability similar to that of Western developed banks or even on par with them. Fifthly, accelerate the promotion of RMB internationalization and continuously expand market-leading advantages. We'll see the window period of RMB financing cost advantages, leverage and attract customers to prioritize the use of RMB in trade financing and project loans and promote the formation of a closed-loop model of RMB financing, settlement and repayment. We will strive to secure more RMB clearing bank qualifications and enhance the performance capabilities of RMB clearing banks. Sixth, strengthen risk and compliance management to ensure the safety of overseas assets. We will dynamically carry out overseas risk assessment investigation, deeply analyzed weaknesses in overseas risk prevention and control target, targetedly optimized risk management mechanisms and processes and ensure no mechanism management shortcomings. We'll promote the digital and intelligent transformation of risk management, accelerate the application of new technologies further enhance overseas compliance risk management capabilities and have firmly hold the bottom line of preventing systematic risks. Looking back, after many years of global operations, BOC has continuously enhanced its global development capabilities and global business has continuously made important contributions to the group's development. Going forward, we'll continue to work hard and expand global operations to ensure asset safety. So global operations have continued to contribute to the BOC performance, not just in the past 2 years. In the current low interest rate environment, global development is not only responsibility entrusted by the country to BOC but also a to priority for BOC's high-quality development and for us to win customers' markets in the future. We'll go all out to seize opportunities and continuously expand and strengthen global business and make the century-old BOC golden brand, shine brighter.

Thank you. Due to the time constraints, that's all for the questions from investors and analysts, and I would like to thank all the investors and analysts for your long-term attention and support, and thank you for the past exchanges. If you should -- if you have any further questions or inquiries, please contact our Investor Relations teams after the present -- this part. Now I invite Ms Yu Ke, Spokesperson of BOC to host the media Q&A session.

Thank you. Thank you Board Secretary Zhuo. Good afternoon. I am Yu Ke, Spokesperson of Bank of China, BOC. A big welcome to all media friends joining today's interim results press conference online. Over the past 6 months, you have documented through your words and lenses, you have documented BOC's concrete actions and sense of responsibility in serving national strategies and supporting the real economy. You have also witnessed our efforts to innovate financial services and drive high-quality development. Thank you for your consistent support and attention. Now we move on to the media Q&A session. Please take the first question.

I'm from China Daily. My question is like this, recently PBOC and 5 other departments don't release the guiding opinions on the financial sector supporting consumption expansion stating the road map, what major measures have been taken by BOC to expand the financial supply for this? Thank you.

I would like to invite Vice President, Xiaodong, to answer this question.

Thank you for your question. BOC has always taken on its shoulders the responsibility of serving national strategy and made advanced deployments for boosting consumption. We have immediately formulated action plan and detailed measures to expand financial services and boost domestic consumption from both sides, that is supply and demand. First, in terms of the support for boosting people's consumption capabilities, and have inclusive finance to support people's employment and entrepreneurship. We have expanded our support for entrepreneurship guarantee loan. And in the first half of this year, we disbursed dedicated loans in this regard, more than CNY 300 billion. We also help people to increase their income. We strengthened product screening, asset allocation and customer companionship. At the end of June this year, the group's personal customers base -- for them, the financial asset scale reached CNY 16.83 trillion. We have also optimized our system to enrich the personal pension products to have consumer loans to have bailout for these targeted audience. And we have also implemented 2025 national student loan interest payment policy by wavering or reducing interest payment benefiting more than -- about 80,000 students. We are also making the housing mortgage interest rate adjustment as a routine measure. Second, we are promoting consumption for higher quality and upgradation in the first half of this year, personal consumption loans disbursement amount and credit card consumption amount have in cumulative terms exceeded CNY 1 trillion and through professional wealth management, we have created asset income of nearly CNY 100 billion for our customers. And for consumption subsidies and concessions in this regard, it reached about CNY 5 billion. And for national subsidy consumption loan, the loans scale has greatly exceeded that of the level of last year, the whole year. In terms of serving consumption, we are using service consumption and pension reloan -- relending policy instruments to expand our efforts of credit support for accommodation, catering, recreational activities, tourism, education and pension or elderly care. By the end of June, for these priority areas of serving consumption and for elderly care industry, our loan balance reached CNY 202.5 billion. In terms of supporting new types of consumption, we are deepening cooperation with Internet, with online e-commerce platforms and our digital RMB consumption amount is leading in the market. Thirdly, we are helping improve consumption environment to make the consumption more convenient. We are expanding a secondary consumption for overseas visitors visiting China so that they can immediately have tax refund after buying and in Beijing, Tianjin, we have had the first transaction of cross-border interoperability business in Beijing CB District and [indiscernible] Central Plaza, such core commercial catchments, we have established a centralized tax refund spot for the whole city. And on [indiscernible] app, we are having online application channel so that we can bring about a one-stop service experience for purchase and tax refund. In the first half of our -- of this year, our outbound tax refund, outbound visitors when -- for overseas investor -- visitors when they leave the country, the tax refund transactions of our bank had a year-on-year increase of nearly 80%. And we are also promoting payment facilitation for ATM foreign card service, for example, withdrawing cash, the coverage is almost 100%. We are also strengthening financial consumer protection initiative and we are conducting a lot of outreach activities, including on March 15. And these activities have touched 2.1 billion person times. In the future, BOC will further play out its global advantages to help individuals and enterprises to have more income and boost the consumption environment.

Second, to innovate products and services around the key consumption areas and focus on the organization and implementation of the discount policies around personal consumer loans and serving the business -- businesses; and third, to create reassuring consumption environment to support the urban and rural consumption infrastructure development and support the modern circulation system play out, continue to optimize the payment system so as to protect the consumer.

Next question, please.

I'm [indiscernible] from Xinhua News Agency. My question is about -- so your support for the foreign trade in the first half of this year, the foreign orient -- the trade-oriented businesses have actively explored the domestic and overseas markets and promoted the steady growth of imports and exports. So as a primary bank to support a high-quality development of foreign trade, what specific actions has BOC taken to support those export-oriented businesses.

Okay. Thank you for your question. Mr. Yang will take this question.

Thank you for your question. As you all know, BOC as a primary leader in terms of foreign exchange and foreign trade businesses. And we have always been a leader in serving the new development paradigm. We have taken this as our mission and responsibility, faced with a complex and the changing international trade situation, BOC has continued to invest in resources to support foreign oriented companies to face the pressure, maintain their vitality and show their advantages. BOC continued to provide financial supplies for foreign trade and to help those businesses respond to the external shock. First, for a more convenient cross-border settlement. We have upgraded the cross-border remittance services and expanded the customer coverage. We have reduce the handling time to less than a second and help the businesses seize the market window period through our digital and intelligent financial services. From January to June this year, our domestic institutions have helped various types of businesses handle over USD 2.1 trillion worth of international settlement businesses increasing by 6.51% year-on-year. Second, stronger financial support. We have used working capital loans, supply chain finance, letter of credit and letter of guarantee to satisfy the different financing needs of different companies to facilitate the flow of funds for the foreign trade companies. And third, more convenient foreign exchange risk avoidance. Online banking and mobile banking have added special sections for foreign exchange services to make it easier for the businesses. We've actually responded to the needs of the businesses and hosted various analysis sessions on the topic of current foreign exchange, and we continue to promote this risk-neutral philosophy to help the foreign-oriented enterprises respond to the foreign exchange volatilities. BOC also nourish and participate in the management of new growth drivers. We have supported the development of new foreign trade business mode. We supported and introduced a series of measures and introduced the overseas e-commerce overseas collection service and established an integrated cross-border e-commerce settlement system with our business scale increasing by 42%. Number two, we supported the steady growth of trade transactions with emerging regions. For example, we have offered foreign exchange settlement and the sales services in Serbia and Poland and strengthened support for foreign trade with RCEP, Latin America and other key areas. And third, support the over -- going global of new businesses. We have introduced a comprehensive service plan to support overseas trade to satisfy the service -- to satisfy the need for fund security and optimize the global supply chain. Number four, to help the FTZ development scale new heights. We leveraged our advantage in cross-border businesses and actively participate in the FTZ business innovation pilot, we have the international settlement -- the international trade settlement of key FTZ branches and the settlement and the foreign exchange settlement and sales of cross-border RMB services have remained market leadership position. BOC have also supported the foreign export-oriented companies to explore diversified market. And we have supported the Spring Guangzhou Fair and the Consumer Expo to help those companies expand their friends circle. Second, to promote the use of cross-border RMB use in key areas. For example, in commodity trade, capital market investment we have customized a lot of product programs for cross-border RMB settlement, financing plus foreign exchange trading, so as to effectively reduce the transaction cost for the businesses. Third, to provide in-depth services for the customers and to enable 2-way connections. For example, we have hosted a series of activities. The Chinese and French enterprises matchmaking events and the matchmaking activities for Chinese and Italian businesses. We have attracted the participation of companies from various countries and regions around the world and support the sales channels of premium commodities and products.

Looking to half -- the second half of the year, China's foreign trade still face a very complex and external situation challenges. BOC will closely follow the national policy to stabilize foreign trade, leverage our global advantages and integrated operations features to make greater contribution. First, to make global settlement service more convenient. We will focus on cross-border remittance, cross-border e-commerce and shipping trade to improve the digitalization and the facilitation of trade settlement, increase efficiency and reduce costs for the businesses. And second, consolidate our advantages in global cash management services. We will improve our capabilities, create a round-the-clock operation support capability and increase the efficiency and security of the fund pool to make sure that the global fund management for the businesses is visible, controllable and operationable. And third, we should leverage our global network advantage to leverage both markets and both resources, domestic and overseas markets so as to provide -- to introduce competitive financial funds for those businesses and to connect the trade transactions. Number four, support the global economic and trade transactions, we will provide better services for the asset expo -- import expo and the [indiscernible] Guangzhou fair so as to promote some cross-border matchmaking and [indiscernible] trade and help the export-oriented enterprises expand market and improve quality of their businesses.

Okay. Next question, please.

Thank you for the opportunity. I am from chinanet.com. Now China's silver economy is developing rapidly, and they have strong demand for financial services. So how does BOC plan to better meet the growing service demand from the senior citizens and promote the high-quality development of the silver economy.

Thank you for your question. So this question is about pension finance. So President Yang will take this question.

Well, thank you for your interest in pension finance. In the first half of this year, there are a lot of incremental policies in the area of pension finance. And the silver-hair economy potential continues to be released as a major financial institution, BOC has remain committed to serving the people and promoted the supply-side structural reform of the financial sector to care for the security of the pension assets, and we have worked hard to cultivate the senior citizens customers. First, preserve and grow the pension assets. We have offered some dedicated product portfolios, and we have issued new -- 6 new dedicated deposit products for the senior citizens. And as of the end of June, it reached CNY 140 billion. And we've offered 2 new retail pension wealth management products and reaching CNY 40 billion by the end of June, and it has outperformed the market. Second, enable the reasonable planning of the pension assets. There is a dedicated pension finance section in the mobile app, covering the basic pension insurance, enterprise annuities and individual pension. So it provides a very comprehensive visual insight into the pension assets. It has various functions. For example, measure your pension treatment, filling the gaps and make up for the pension assets so that people were rest assured. And third, the social security card has integrated more livelihood functions. We are one of the first banks to issue a social security bank card which enables the integration of social security, financial services, transportation and high-speed railway services, so that the social security card services can be expanded to the high-frequency scenarios for the people. Cardholders can go to the hospitals, buy medicines, can also take their salaries and can just take this card -- swipe this card to take the Beijing-Tianjin Expressway. So this enables the seamless connection of commute financial services and life scenarios. And number four, strengthen our capabilities to serve the senior citizens. We have expanded our outlets and also developed the code of conduct for special clients in the outlets so that we can better serve those senior citizens. And in Guangdong for 3 consecutive years, we have hosted over 50 events in collaboration with the Guangdong government. And we have created a senior citizen consumer ecosystem covering supermarkets, hospitals, banks and securities to providing massive experience for our pension products and services, serving over 40,000 senior citizens. And number five, serving the high-quality development of the silver-hair economy, so that is easily accessible to the senior citizens. So under the guidance of the local PBOC, we have completed the first or first batch of pension loans and we have supported the old-age care services, the old-age technology and the smart old-age care services. And we have provided nearly 350 new pension industry or old-age care industry loans. In the second half of this year, BOC will continue to implement the government incremental policies for pension finance and we'll focus on the pension finance, old-age care service financing and old-age care industry finance and build a pension finance service system with Chinese BOC characteristics. First, we will improve our professional advantage of pension finance. We will focus on the 3 pillars and to implement some measures such as portfolio manager profile and integrated operation. We will focus on the strategic opportunity of long-term care insurance and provide full life cycle and full [indiscernible] financial comprehensive solutions for the government and the pension institutions. Number two, continue to strengthen our advantages of pension service financing. We will closely follow the policy dynamics and timely introduced some premium products to the satisfaction of the customers. Centering on the entire life cycle, financial needs of the pension customer group will actively innovate. We have actively innovated various types of pension products with low thresholds and stable returns, building a more systematic financial product shelf. Third, we'll continuously increase credit support for the pension industry, focusing on silver consumption areas such as care, health and self enjoyment, we will introduce comprehensive financial service solutions, fully utilize policy tools like relending and loan interest subsidies, increased credit support for the pension industry and maintain rapid growth in the scale of pension industry loans. And fourthly, we will continuously build differentiated advantages in online and off-line channels. For off-line, we will expand and strengthen our pension service administration outlets. For online, the mobile banking pension finance section will further introduce high-quality nonfinancial resources such as medical wellness and travel-based retirement living, providing finance plus pension service ecosystem experience. Fifth, we'll continuously publish the BOC silver age pension and finance brand. From the customers' perspective, we will further integrate and innovate pension financial products and services, building a pension financial service system with BOC characteristics making BOC silver age and [ Changqing ] leading brands in the industry pension finance sector.

Thank you, Vice President Yang. Now let's continue with the questions.

Thank you for the question for the opportunity to raise the question. I'm [ Lijing ] from China Securities I have question what impact will the private placement in the first half of the year to supplement core Tier 1 capital have on BOC's risk resistance capability? And second, what are the next steps to improve capital reuse efficiency? How do you view the future dividend payout ratio and the level of dividend per share or DPS?

Thank you for your question. I would like to invite Board Secretary, Mr. [indiscernible] to answer those questions.

Thank you for your question. On June 13, our bank conducted a private placement of A shares to the Ministry of Finance or easing RMB 165 billion. After deducting related costs, the entire amount was used to increase core Tier 1 capital. Core Tier 1 capital is the highest level and highest quality capital serving as an important foundation for the bank to resist risks and operate safely. An increase in core Tier 1 capital also correspondingly enhances the capacity for supplementing other levels of capital. After this round of capital increase, our bank's core Tier 1 capital adequacy ratio reached 12.57%, an increase of 75 basis points compared to the end of the first quarter, marking the highest level in our bank's history. Other capital adequacy ratios or CARs were also further improved with the Tier 1 capital adequacy ratio and total capital adequacy ratio rising by 52 bps and 69 bps, respectively compared to the end of quarter 1. This capital increase has effectively solidified our bank's capital foundation, optimized the capital structure and thickened the defensive buffer against the various risks and market volatility shocks enabling our bank to better cope with complex economic situations and maintain operational resilience. This capital increase has replenished our bank's ammunition depot for a sound operation and navigating cycles. We will take this core Tier 1 capital replenishment as an opportunity to further improve capital use the efficiency, leverage the fundamental role of capital in operation and management and accelerate the transition towards a capital-efficient and economical usage model. First, we will fully utilize the leverage effect of capital, continuously enhanced fund utilization efficiency and finance service financial service levels and solid work on the 5 key areas of finance to serve the development of the real economy. Second, we'll optimize business and capital allocation and accelerate the improvement of global deployment capabilities and international competitiveness and strive to expand diversified revenue sources. Third, we'll further strengthen the concept of capital return and value creation, enhance the application of value creation indicators in resource allocation and improve the capability in high-quality developments under capital strains. Fourth, we'll strengthen refined capital management, optimize and excel in capital-heavy businesses and enhance the comprehensive customer returns through all-round financial services will expand and strengthen capital light business, reasonably adjust the business structure and vigorously develop intermediary business such as settlement custody and wealth management. BOC has long value the investor returns since its share reform and listing cumulative dividends have exceeded RMB 900 billion for dividend payout. Since 2015, the dividend payout ratio has been maintained at a high level of 30%. Starting in 2024, interim cash dividends were also implemented, allowing investors to share earlier share in our bank's operational performance results earlier. And currently, for 2025, BOC's dividend payout ratio and frequency remains stable. In the morning, the Board of Directors also recommended an interim dividend for 2025 of RMB 1.094 per 10 shares with the payout ratio continuing to be maintained at a high level of 30%. In the long term, from the long-term perspective, the enhancement of capital strength brought by this private placement will promote the recovery and improvement of BOC's profitability as well as earnings per share and dividend levels, helping to create greater value and deliver long-term, stable returns for investors. Thank you.

Thank you Board Secretary [indiscernible] . Due to the time constraint. We have time for one last question. Please connect with the last journalist.

I'm from Phoenix TV. My name is [indiscernible]. I have a question related to technology finance. Since the beginning of this year, a series of policy measures have been introduced to guide financial resources to better support technological innovation. How is BOC seizing the opportunities to intensify the development of technology finance? What are the key focuses for your next steps?

Thank you for the question from general from TV, that's it President Zhang to answer the question.

Thank you for your question. I'm very happy -- but at this press conference, I can answer this last question. Technology Finance is the priority among the 5 key areas of finance and is of great significance for promoting industrial innovation led by technological innovation and actively cultivating and developing new quality productive forces. BOC regards technology finance as a top priority in business development, actively integrated into the national technological innovation system, leverages the group's global advantages and comprehensive characteristics. Supports the high-quality development of the technology industry and enhances the momentum for technology finance development. Therefore, as a result, service quality and efficiency of our bank have steadily improved , overall this represents 3 characteristics. First, the technology content of credit has further increased for the whole group of BOC. By the end of June, BOC's technology loans accounted for -- of over 30% of corporate loan balances, maintaining a leading position among major peers. Second, loans to technology-based SMEs, that is small and micro enterprises and little giant specialized and sophisticated SMEs also lead the marketing credit scales. This can ensure the efficiency and quality of inclusive finance at the same time. Third, comprehensive service capabilities continue to improve. For comprehensive services provided for technology of finance, it does not include a credit with cumulative comprehensive service supply exceeding RMB 780 billion and efforts in investing in early and small early start-ups and small and micro enterprises continue to intensify. So these are the 3 characteristics for technology finance of BOC. In the second half of 2025, our technology finance measures are manifested in the following aspects. First, we built a 3-dimensional service network to enrich financial resource, supply and technology innovation hubs. And through technology finance centers covering 24 provinces and cities with concentrated technology innovation resources such as Beijing, Shanghai and Shenzhen, and 275 technology finance outlets, we are now providing credit support to over 160,000 technology-based enterprises. We're also enhancing the comprehensive technology finance service level in innovation hubs like Beijing, Tianjin Hebei, Yangtze River Delta and Guangdong-Hong-Kong-Macao Greater Bay Area continuously -- we are continuously increasing credit supply and steadily improving customer coverage. And second, we are also supporting the key areas, high-quality development, for example, in AI sector. And we have launched our action plan to support the development of the AI industry chain in January this year. We were the first to do so. This has comprehensively supported the upstream computing power infrastructure, midstream technologic innovation and downstream scenario applications in the industry chain with plans to provide -- our plan is to provide RMB 1 trillion in special comprehensive financial support over the next 5 years in the forthcoming 5 years. In May, we launched the BOC technology innovation, computing power loan scheme in AI innovation in active regions such as Beijing, Shanghai, Shenzhen and [indiscernible]. We are actively serving enterprises computing power resource procurement needs with this initiative and fully supporting the construction of the technology innovation hubs. And in Beijing, we are providing manufacturing and investment loan. In Shenzhen, we are providing sci-tech R&D loan. So with such a characteristic loan -- products for sci-tech innovation. Many sci-tech enterprises or many regions have benefited in terms of the loan balance, the comprehensive service provided and the customer service level in terms of all those brands, BOC is leading among our peers. Third, we have built globalized cross-border services to strengthen financial service support for technology enterprises going global, leveraging BOC's global network layout and advantages in high-quality customer groups, cash management, cross-border payments and asset custody, we're now providing 14 technology finance services including basic account settlement services plus private financing plus technology, finance loans plus cornerstone investment custody plus IPO collection.

Through domestic overseas interactions and integrated commercial and investment banking services, we precisely support a group of technology innovation enterprises in fields such as biomedicine, chip design and intelligent computing. And in the first half, we had the IP, we have made full use of IPO opportunities to provide such services. Fourth, we are building diversified comprehensive services to deepen the technology finance product service metrics. We deeply participate in the construction of the bond technology innovation board and led the market. We since the launch of the technology board, BOC's technology innovation bond underwriting scale has exceeded RMB 30 billion underwriting 69 bonds, including the first batch of technology innovation bonds announced by several leading technology innovation enterprises, and the market's first long-term technology innovation bond by a private entity equity investment institution further reaching financial supply methods in the hard technology field. At the same time, we are also making full use of sci-tech innovation and technological retrofitting relending and the newly added loans exceeded CNY 90 billion in this regard. In terms of the product and the service innovation, we are also working with our peers to enhance our efforts. We have worked together with China Life to provide joint efforts so that we can provide differentiated bank and insurance services for pilot scale testing. And fifthly, we are building digital platform tools to strengthen technological empower in operational management. In sci-tech -- in technology finance core regions, we independently developed the quantum digital platform in Shenzhen and other places and continuously iterated and upgraded it using advanced technologies such as AIGC or generative AI, knowledge graphs and privacy computing, we've targeted [indiscernible] evaluated enterprises innovation capabilities and automatically recommended suitable financial products for tech enterprises at different stages of their life cycle. This has been spoken highly by enterprises and the local governments.

So supporting sci-tech innovation is an important strategic measure for financial services to serve the high-quality development of the real economy. And it is also a very important area for us to undertake our responsibility entrusted by the country. Going forward, BOC will continue to thoroughly implement the national strategic direction, promote high-level planning, high-standard services and high-quality development of technological finance. You mentioned just now you want me to introduce to you the key deployments in the future. First, focus on key technology breakthroughs and serve the AI Plus initiative. We will expand the depth and the breadth of financial sector serving the AI. Now we are implementing the relevant plans. Second, to improve our integrated services and to promote the diversified technology finance ecosystem development. We have promoted the BOC sci-tech partnership program. And we are actively working on the BOC technology integrated partnership program to build a coordinated risk sharing and benefit sharing if -- innovation mechanism so as to help the key enterprises. Number three, to leverage our global advantage actively serve the high-tech companies and especially their cross-border financial services. We should [ average ] our working mechanism of 1-point access and global response, integrate resources and actively support the cross-border financing channels for high-tech companies also serve the global -- going global and bringing in and the opening up and cooperation of technology finance. In the future, BOC will continue to leverage our advantage and the features, and we'll work hard to leverage the competitive advantage of our technology finance and it elevated into our strategy advantage and the brand advantage so as to contribute more to high-level technology independence and high-quality productivity. Thank you.

Thank you, Mr. Zhang. For the interest of time, that's the end of the media Q&A session. So if you have further questions, or intentions of communication, please contact us. Thank you very much again for the investors, analysts and friends from the press. BOC will continue to remain committed to our original intention and respond to the challenges ahead through reform and live up to the expectations of all walks of life. That's the end of the release. I look forward to seeing you next [indiscernible].

[Statements in English on this transcript were spoken by an interpreter present on the live call.]