Bank of China Limited ($3988)

Dear investors, analysts and friends from the media, good afternoon. Welcome to the 2025 Annual Results Release of the Bank of China. I'm Lung, Vice President and Secretary of the Board of BOC. Today's press conference is co-hosted by Ms. Yu Ke, 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. Tai Zhang, Vice President; Mr. Wu Chen, Vice President; and Mr. Yang, Vice President. Ms. Wang Li, 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 slide and at the level for download 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. The performance over you BU and the 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 review of our 2025 operating performance and outlook for the next stage. After that, I will join the senior management present here to have and issues that you care about. 2025 was the final year of the 14 5-year plan period, facing a complex environment. Our bank reserves implemented the decisions of the Party, Central Committee and State Council. We accelerated transformation under a low interest rate environment achieved steady and improving operational results, improved the 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 65.9 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 May peer groups and financial efficiency improved marginally with provincial profit growth creating 2.62 ppt compared with 2024. Net profit and net profit attributable to shareholders grew by 2.6% and 2.8%, respectively, with growth improving quarter-by-quarter. Lin 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 persistently promoted high-quality transformation under a low interest rate environment and achieved noticeable results. Net interest income quarter-by-quarter and a single quarter year-on-year growth in the second half of this year turned positive. Noninterest income increased 91.21% year-on-year and maintained a high provision 63.21% of operating income, up by 4.16% year-on-year. Income sources were further broadened with rapid growth in wealth management settlement and clearing custom financial market trading of FOREX and integrated operation, which is strongly supported overall performance. Three, 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%. Total liability reached about RMB 35.15 trillion, up by 9.47%, while, RMB deposits increased by CNY 1.37 trillion, and foreign currency deposits grew by 15%, further consolidating our leading advantage. Fourth, asset quality remained stable and the accident NPL ratio stood 1.23% down by 0.02% 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 20.37% maintain adequate level. NPO balances and the 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 of capabilities. Fifth, our market regulation and shareholder returns remained high. Our unique operational advantage and business department have been widely recognized by the market. S&P, Moody's and Fitch all 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 compare steady performance into substantial returns for investors. We efficiently completed both, the 2024 year-end and the 2025 midterm dividend distributions with a per share dividend of RMB 0.231, and our payout ratio maintained at 30%. For 4 consecutive years, we have delivered double-digit stock investment returns to shareholders. Over the past 1 year, we have been persisted in our positioning, and we have also been fully integrated into national strategy in serving the real economy, preventing financial risks and deeply our innovation has further enhanced our high-quality development. First, firmly supporting high-quality development of the real economy, domestic RMB notes 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 will 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 21.2% 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 knows achieved double-digit growth. We promoted breakthrough in digital industrialization and a deep transformation of industrial digitalization with digital economy industry loan balances exceeded RMB 880 billion. We supported consumption recovery to the RMB 10,000 billion benefit in the people initiative effectively implementing physical interest subsidy policies. Domestic or personal consumption loan balances increased by 28.35%, while contributed to stabilizing the real estate market with personal housing none exceeded RMB 500 billion. Secondly, firmly expanding global advantage and supporting high level of NetApp. Our global operations advantage continue to consolidate with global deployment and international competitiveness for the stress. Overseas pretax profit contribution increased to 27.99%. We actively supported a stable foreign trade and investment. Domestic institution handled international settlement of USD 4.45 trillion, up by 9.56%. Cross-border e-commerce element 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 top scale among in peers. We actively served going out and bringing initiatives. We tracked over 1,400 Belt and Road to corporate credit projects with cumulatively credit support exceeding USD 4.39 billion, which closely followed key foreign invested projects, providing loans, tender bonds, cash management and supply chain financing services. We became 1 of the first bond connect repo market makers. Bond trading volumes with foreign investors consistently exceeding tradings over the past 3 years. We launched cross-border payment channels for Mainland Hong Kong transfer is becoming the preferred channel for routine more value remittances. We supported offshore tax refund services covering the widest regions with the number of cases for foreign visitors 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 panel banks and offshore RMB bond maintaining market leadership. We conducted various multi-natural central bank digital currency bridge transactions exceeding RMB 350 billion. And over 3 consecutive years, we acted as a main participating bank, enabling inflation cross-border capital flows. Third, finally consolidate the client 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, ministry, 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 personnel 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. Financing projects increased 25% year-on-year. Comprehensive operating profit contribution has increased for 3 consecutive years, maintaining a leading position among main domestic peers thoughtfully firmly coordinated development, safety, safeguards risk and compliance will continue to deepen the comprehensive risk management system and proactively prepared for various risk prevention. We adhere to the due approach of a strict control of the new NPLs and the strict management of write-offs, ensuring the entry gate and exit gate of asset quality, we strictly managed to maintain state in asset quality and adequate risk capability. We strengthened overseas risk management assisted clients in coping with external environment changes to ensure the safety of the 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 with stressed the compliance operation improved effectively. Fifthly, firmly promoted digital transformation and deepened intelligent. We accelerated the transformation and upgrading of technology architecture. The total number of cloud service exceeded 51,000. We implemented AI initiative and formulate as construction plan, deploying over 400 intelligent assistance 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. Six, firmly practicing sustainable development and fulfill social responsibility. We officially released our first disability report reviewing the significant achievement of BSV in serving social development, improving people's livelihood and contributing to ecological and environmental protection with carbon emission measures for high carbon clients within credit portfolios, oddly reducing portfolio carbon intensity. For 26 consecutive years, we have provided national students 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 the domestic demand, promote consumption, potential and optimize investment structure. Second, high-quality support for opening up, deepen the 1 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 can bring in, enhance RMB internationalization services and accelerate integrated company operations. Certainly, promote high-quality value creation, strengthened proactive lean management and pricing capabilities. Consolidated income structure advantages continues to improve noninterest income contribution, optimized application of EBA and RWA in resource allocation, promote cost reduction and efficiency enhancement and enhance and full development capability. For its high-quality digital and intelligent empowerment will be improved. We apply smart contracts, blockchain and AI in cross-border payments, wealth management, internal management. We will also enhance online, offline, domestic and overseas integrated services and improve to factor -- total factor productivity. Fifthly, high-quality foundation for development. We will strengthen monitoring and management of key industries and clients, control credit and compliance costs are 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+ share listing. Since listing, our total assets have increased to 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 walks of life of society. Thank you.

Thank you, President Zhang. 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, room on the right-hand side in the middle, gentlemen, please.

Thank you for the opportunity to ask the first question. I'm [Audio Gap] from Securities. Congratulations on the excellent performance. I have a question regarding strategic planning and business strategy. It is a top level -- top-down question. So '26 marks the first year of the 15 5-year plan. we would like to ask the management to share BOC's overall layout for the new development stage of the 15 5-year plan period as well as this business philosophy and goals for 2026?

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, fishing the complex and volatile external situation, you'll see force the hedge 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 strategical BOC line with the strategic deployment for building 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 for all and supporting high-level opening up a practitioner in enhancing the strength of the large scale -- large state-owned financial institutions and a balance for maintaining financial stability. That's promoting its own client quality development while serving the high-quality development of the economy and society. This store seating positioning and goal is a sole commitment made by the Praticommittee of BOC to the party and to the country to all customers and investors and to 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 15, 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 prospective operational management. During this new period, BOC will focus on its core responsibilities and main business, mainly capability improvements and 2 transformation promotions. About the 6 capabilities. First, we will build a strong capability to serve the real economy, adhere to taking financial services for the real economy as the fundamental purpose closely focused on major strategic tasks and projects such as the construction of Chinese modern industrial system and coordinated regional development during the 15th 5-year period, optimize financial supply and improved service quality and efficiency. We will solidly carry out the 5 key tasks of the financial sector. Playtech 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 at the core development strategy and top priority, continuously consolidate the advantages in key regions such as Hong Kong and Macau accelerated 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 the international use of the RMB and supporting the construction of the 2 international rice 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 play to the characteristics of comprehensive operation, improve the ecological construction of circles chains and groups optimize 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 business 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 will strengthen the organic integration of business data and technology and enhanced agile and collaborative channel operations operation capability, intensive and shared operational support capability and data empowerment. -- digital 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 provisional capability, clearly establish a correct orientation for talent selection and improvement -- improve the talent system, making some encourage countries and employees to take responsibilities and strive to cultivate carries and talents with global competitiveness. Regarding the 2 transformations, first, accelerate digital intelligent accelerate digital intelligent transformation. We'll increase tech investment in digital intelligent business, build an AI plus 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 accounts for a large proportion of our income. We will also strengthen refined management and promote cost reduction and efficiency improvement. And here, we'll also continue to adhere to tight asset intensive development strive to alleviate the pressure of the tight balance of TC capital and funds and effectively respond to the low interest rate environment. So that is our overall strategy and for the 15, 5-year plan period, 2026 is the first year of the 15th 5-year plan period. The bank will formally establish and practice the corrective view of performance, so 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 here to innovation-oriented development. So the overall national interest and increased support for the development of new product, new quality productive forces. We will continuously improve the product and service system adapted to new product -- new quality productive forces, We empower the construction of the modern industrial system and HealthSouth, the innovation chain, supply chain industrial chain and capital chain increase. We will also increase support for the construction of our strong domestic market. So the expansion of domestic demand and boost consumption implement the qualities 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 recent future industries, expanding capacity, improving the quality of the service industry and creating a new form of intelligent economies so as to improve the quality and efficiency of comprehensive financial services. Second, orientation, adhere to the advanced oriented development. consolidated 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 plant for supporting the overseas development of Chinese-funded enterprises. We will also 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, focus 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 gearing deep wealth management business and optimize comprehensive financial services. We'll expand the scale of customer-driven transactions and promote the development of other noninterest rate. Now Into the businesses with also strong cost reduction and efficiency improvement force, 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, to the advantages and characteristics of globalization and comprehensive operation and continuously improve the full life cycle process comprehensive service system will enhance the market competitiveness of the key business segments continue to focus on key products such as seller payment agency expressed payments, the custody and cash management and actively expand the sources of local liabilities. Also, -- and the fifth orientation is adhered to the stability oriented management development. We'll build a solid risk defense line and better balanced development and security. We will effectively respond to internal and external risks and challenges and adhere to prudent and compliant operation. We'll also strengthen asset quality control, focused on the 2 main lines of strictly controlling newly generated and nonperforming assets and increasing substantive recovery, continuously save credit costs and keep the group's nonperforming loan ratio stable. And 6 will adhere to the intelligence-oriented development strength in digital intelligent empowerment accelerated the improvement of efficiency, we'll accelerate the implementation of the AIs plan, optimize the high-efficiency technology supply system, promote the value transformation of data assets and create AI application paradigms focusing on the scenario needs of key areas such as marketing and operation. That's all for my answer, and thank you for the question.

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

I'm [indiscernible] from Marti Securities. First of all, congratulations on the excellent performance of. 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 competition among peers of 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, Jan to answer the question.

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, the -- they have shown a steady and sound momentum in 2025, the RMB deposits achieved a year-on-year increase in implement. Regarding the issue of the material of bank time deposits concerned by the market, the scale of the bank's maturing deposits has indeed increased since the second half of 2025. For these maturing time deposits, we have earnestly 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. 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 to pay out the rate of 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 and 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. Improving liability quality and important guarantee for banks to maintain a steady growth of assets. The bank has always adhered to the customers' centrality 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 will full grocer services first. Consolidated our customer base and improvability quality for corporate customers establish a and a classified service system actively give play to the traditional advantage cross-border business and to further expand the customer base by providing customers with international trade and cross-border and settlement services. Relying on digital platforms such as corporate online banking, mobile banking and we charge work to improve the coverage and the convenience of customer services carry out targeted marketing for various customer groups such as enterprises, multinational Corporation, listed companies, micro and the small enterprises industry leaders and continuously improve customer service capabilities. For individual customers continues to optimize the high Araku 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 costs 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 received receipt of match currency 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 provide exclusive wealth management services for pension preparation and outcare. Thirdly, promote ecological operation and facilitate the closed-loop retention of funds focused on the policy orientation of investment in physical assets and human capital follow up the capital flow 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 operations scenario to the in-depth integration with customers, capital flow information, logistics flow, promote across the loop management of customers found drive deposit precipitation and improved stability of deposits. Fourthly, optimize active liability management and enhanced resilience of operation and management with a continuous decline of interest rate 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 cost cycle, high-quality development by supplementing capital and improving the total loss absorbing capacity. Thank you so much.

Now we can invite more questions. Okay. The lady who is sitting on the second row on the left-hand side.

I'm Martin team from Guotai Hydro Securities. I have a question about faced with the challenge of loan government, your question. Actually, according to Mr. Zhang 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 the 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 assets 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 a 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 the domestic and overseas market opportunities. the proportion of the bond investment in interest earnings assets increased by 21 percentage points year-on-year, of which the growth rate of foreign currency bond investment exceeded forex range return bond investment. Secondly, continuously optimize liability structure and effectively reduce liability costs. maintain the rapid growth of domestic RMB deposits appropriately, absorbed interbank nonbank demand deposits, so this we promote the self-disciplinary management of deposits, drive the group's stability interest payout rate down by 37 basic points with the improvement amplitude hitting a new high in recent years. So deeply to the advantage of global business and improve efficiency, foreign currency fund utilization, the asset scale of overseas institution 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 we are faced with a lot of uncertainties. As you may know, that now the geopolitics landscape has actually -- has already give pressure to the interest rate decline of main currencies. We have confidence that we will seize the market opportunities both by implementation of the package of incremental policies give for play, to the advantage of globalization and the characteristics of comprehensive operations solidity achieved a 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 assets and liabilities business and effectively control the decline of interest margin of RMB business. In terms of asset in the first year 5-year plan period. The bank will grasp with a more proactive macro policies act ahead of schedule and reasonably ranged the pace of credit supply and a bond investment. And also in liability, we will stress on technology empowerment focused on key scenario and products remote digital operation of corporate nonloan 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 effectively hedge against downward pressure of asset income. besides, secondly, we will strengthen the global service system and maintain the overall stability of the interest margin of foreign currency 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 measures to elevate the adverse impact. Certainly, refine the requirements for interest rate pricing management and consolidate foundation for steady development. We will follow closely policy development, adhere to the bottom line of compliant interest rate operation and improve efficiency and effective pricing management through institutionalized and standardized management methods. And we will also set the reasonable deposit and the 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 and also please identify yourself and then ask your questions.

I'm Ran Xu 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. I want to ask a question about the reasons and also whether in 2026, will it continue colocalization and a comprehensive business and to 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 19.2% while the net fee and the commission income was RMB 82.2 billion, a year-on-year increase of 7.4%. And also, and this is the historical high in terms of the contribution ratio of noninterest income, mainly in 3 areas: First, grasp the development, the trend of transformation and upgrading of resident asset location and enhanced wealth management capabilities. We continuously build a full market place for group product shelf improved product selection and management capabilities, with more than 7,500 sales 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 included by and the management of scale of BOC fund increased by 12.8%, driving the group's agency fees, up by 26.7%. 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 7.7%. 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 the international settlement volume has increased by 19.56% 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 year-on-year increase of 7.2%. The development foundation was further consolidated. And the leading advantage in international settlement was further expanded. Certainly, you 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 1 for our rapid service network. We serve customers need for found the risk of vision and the value preservation and the customer-driven trading business achieved a steady growth. [Audio Gap] was a trend of RMB and in currency bond markets, dynamically optimized the investment folio and realize effective growth in financial investment income. Looking ahead in 2026, the domestic economy has a good start the transformation of old and the new growth drivers are accelerating and the demand for transaction banking, wealth management, investment banking business will further grow. We will take a customer as the first as a call taking service customers through the entire chain as its mission and strap to maintain a 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 see the incremental business base for expanding domestic demand and hosting 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 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 We 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 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. We 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 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.

Thank you, VP Huang, your answer. Now we move on to the next question online.

I congratulate BOC for such excellent performance in a 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 and the senior management outlook on the bank's asset quality performance this year and what pressures the corporate and retail business facing, respectively.

Thank you. I would like to invite VP, Wu, Jian 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 conclude the 45-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 improve the level of refined management constantly raise the quality and efficiency of recovery and disposal achieved a good result and risk control throughout the year, made new progress in risk prevention and control in key areas and maintained stable asset quality.

Quality as President, John has mentioned, by the end of 2025, the group's NPL ratio was 1.23% and 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 20.37% 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 the 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 the 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 country following in the coming -- forthcoming period. And of course, we will 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 pace adjustment has been reflected in 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 complex and the downturn of commercial real estate in some overseas. This 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 fields of a strong domestic market, modern industrial system, transformation and development, high-quality opening up and rural revitalization and strengthen the risk management of structural problems in real estate, local debts and key industries. Second, hold the bottom line of asset quality. Secondly, resolve potential risks in key areas, adhere to the 2-way fine 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, enhanced global risk management capabilities, strengthen the control of high-risk products and make forward-looking risk prevention and control in nontraditional fees. Fourth, we will deepen the digital and intelligent transformation of risk control, consolidate system functions built a solid risk support create standardized the full process management capabilities and improve the level of digital and intelligent risk control driven by data and supported by new technologies. Thank you.

Thank you, Wu. Now let's go back to on site and take another question from another analyst. First go left.

I'm Yingqi Lin from CIC. So looking ahead to 2026 and the 15th 5-year plan period, what development opportunities and challenges that the management BOCs 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 asset 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 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 highly -- 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 B and Roll 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 invest 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 greed 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 skilled potentials for very promising growth. And fourthly, RMB internationalization is being accelerated. Now RMB has become China's largest settlement currency for external payments overseas and the world's third largest trade finance of 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, handbonds and other aspects has ushered in a very important window of time. And fifthly, the overseas development of Chinese-funded enterprises also spans cross-border financial needs with the in-depth adjustment and optimization of China the 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 national situation has increased our the enterprises demand for asset risk. BOC has strived to promote the construction of global custody capabilities we have become the first Chinese brand global custody bank and can provide safe and efficient asset custody solutions for Chinese enterprises and global customers. So that is 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 main countries. This has brought challenges to its control and compliance. Second, frequent regional conflicts intentions 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 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 advantage is in the international financial centers of Shanghai and Hong Kong. And they cover a proprietary overseas institutional bank 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 and the prices in China. The service coverage ratio of 500 flowing and enterprises in China is ceded 90%. And this has also provide a very solid foundation for our globalization. Certainly, cross-border business leads the industry. In terms of international sentiment and foreign exchange purchase and sales. We have very fierce competitive advantage with nearly 410,000 cross-border settlement customers. and maintained steady growth. Our major cross-border MB business ranked first in the world and our SIP businessaccounts for more than half of the entire market. But 5, our bank has been awarded the best RMB clearing bank in the Asia Pacific region were to 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 [indiscernible] and trade network Relying on firm strategic results reach development experience and a solid effective risk and 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 reform app, 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 1 strength of BOC. Fifthly, our talent team has maintained very strong strength. We have very sufficient reserve for global talent with to 25,000 employees overseas. And has built an overseas Thailand 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 seeding 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 fin 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 -- in early warning system and ensure the safety of overseas assets. Site increased efforts in the construction of regional headquarters continuously enhance the abilities and competitively. 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 claim also asked me to look ahead 2 regarding our strategies and also the risk trend. First of all, I want to say that we are confident in promoting the continued some of the development momentum of our global businesses. And also to maintain the 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 at the table. 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, we are free to contact our Investor Relations team. Now we will give the floor to to moderate the Q&A session of the journalists.

Thank you so much. Hello, everyone. I'm Ike. 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. [Foreign Language] My question is that the Phase plan proposed to accelerate the high levels ecological self-reliance and self-improvement leader decencment 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 site fintech, becoming a new engine driving the high-quality development of the bank, mainly we have the following full features fast. The structural advantage continues to stand out. By the end of 2025, the balance of Bank of China fintech 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 Sitech enterprises at the leading level in the market. Firstly, 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 Cytec enterprise. The asset quality remains sound in the recent years, the balance of tech nodes has remained stable and the NPL ratio has been continuously lower than the overall NPL rate of the group. Overall, our Scientech 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 on related development in service models and systematically built our Sintech finance ecosystem. The needs of Cytec enterprises are diversified. They need not only credit found that also a series of comprehensive financial support, including equity investment, debt financing, insurance, detection and listing services with commercial banking as the hub, we connect various financial resources for enterprises we have further promoted the BOC Scientech innovation ecosystem partner program, building an inflation platform for Cytec enterprises to come back with technology, industry capital and balance. 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 callivation program. For the coordination and the comprehensive operation resources within the group building and equity loan related financial support plan for the next 3 to 5 years for key core technology enterprises, such as hub technology enterprises and creating a Scientech 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 budgets have entered this channel. Secondly, promote the in-depth development in industrial layout and continuous to enrich the supply financial resources, we have made precisely out 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 trend within the next 5 years and also launched the innovative product computing power loan to provide credit supply for enterprises with computing power needs. So 1 year's effort, we have established -- this 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. As last Friday, we together with China Canem Information and Communications Technology and the China Securities Index Corporation, officially launched the research on AI industry index our subsidiary BOC fund simultaneously released BOC Double Innovation AI index fund, providing more reference guidelines for financial support to the AI industry. Firstly, a lit precision-oriented in policy implementation and continues to enhance momentum of the Sitech 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 MA 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, following the lead panel test. We also provided the support of these companies and launched the pilot test insurance finance and we already worked with 190 national and masteral 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 tech innovation from a 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 and actively participated in the establishment of the Beijing, Tianjin be venture capital guidance fund. Fourthly, make pragmatic efforts in mechanism and optimization to effectively consolidate the foundation for site development. In response to the features of Cytec innovation, enterprises such as high investment and light assets. We have continuously promoting 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 site finance organizational structure of head office branch branch and configure the exclusive side tech finance credit model for growing Sitech enterprises solving the credit bottlenecks in the process of transforming from micro and small inclusive customers to large enterprises. And we have also launch to the construction of an external expert data base, introduced the cloud review model to provide empowerment for efficient credit approval to improve such as enterprise innovation capabilities, operating conditions to form a multidivaluation 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 Scientech 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 apps and cooperation. Looking ahead, we will continue to improve the system compatible with scientific and technological innovation, promote in-depth integration promotion of globalization advantage, comprehensive characteristics and Sitech finance business development and for a high-level cycle of technology industry finance and contribute more strength to supporting high-level service reliance and the improvement and help the development of new productive forces.

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

News agency. I'm Lou. 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 corporate 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 part 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 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 of resident income and consumer confidence, that is to enable people to make money and spend the money well. In 2025, BC launched on GM1, 10,000 -- 100 million consumer benefit campaign with 10 major gift practice, injected more than RMB 20 trillion in credit funds into key consumption areas, created more than RMB 250 billion in property income for customers, 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 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 residence property income. By the end of 2025, the scale of financial assets of the group's total personal customer 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 terms 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% and it is promptly implemented the fiscal interest, the subsidy policy for consumption loans, benefiting a total of more than 60,000 -- 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 in decretive products such as famous special, high quality and new loans and issued more than RMB 60 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 was 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 , 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 [indiscernible] its globalization advantages and comprehensive characteristics, we will continue to carry out the OneGene consumer benefit campaign, optimize and implemented 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 to a good start of the 15 5-year plan period. First, will help controversip 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 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 contribution 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 lab services based on specific consumption scenarios, refined cultural tourism experiences and expand characteristic brands such as BOC, which who and we'll also implement policies such as relending for service consumption and pension and physical 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 cooperation with new energy vehicle enterprises margins 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 Dean Internet. BOC completed the supplementary capital, the capital replacment of RMB 165 billion for common equity Tier 1 capital. Next what are the BOC's arrangements for loans deploy in terms of total volume structure and direction and how will it combine the globalization and comprehensive advantages to accurately allocate the capital implant key areas of the real economy and national strategic tracks?

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

Thank you for your question. We intent successfully realized capital replacement for the busy to serve the real economy by the end of China, 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 board 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 -- rates of inclusive green and total 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 for investments in key areas such as fintech innovation bonds, green bonds and private enterprise bonds leading the marketing, Greenman investment scale. Overseas, the globalization advantages continue to be consolidated. Internal 5 China's total impotent export exceeded RMB 450 trillion, a record high in outward direct investment increased by 7.1% year-on-year ranking among the top in the world. Foreign trade has shown strong resilience in mentality. 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 take broader business development space. First, expand the scope of customer services. Was fully of enterprise going global, helped 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 to the RMB financing solutions for customers over the RMB laws have maintained a double-digit growth rate for 3 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 for 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. Cytec 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 or in terms of inclusive finance, we'll focus on customer groups such as Cytec, 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 my attention -- 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 results 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, steadily -- 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 composition of the globalization strategy. WE will vigorously improve the quality and efficiency of services for business going global, closely active regions of China's foreign investment focused 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 out, we'll also actively provide financial services for foreign-invested enterprises and provide on financial service support for Fortune 500 for image 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 thematic demand. In the first 2 months of this year, the BC deployed in advance and took the lead in the amount of new issue loans related to SMBs and equipment renewal and among the top in the industry. We will also fully utilize structural monetary policy tools, so the car out credit supply fields such as site innovation and transformation and covering emission reductions to benefit more enterprises and projects.

Now next question. First of all, left side, second lady.

I'm from Phoenix TV, we can see currently the status and influence of the RMB. 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 built made in the field -- in this field.

Thank you, Phoenix TV journalist, promoting RMB international use is a very potent effort of BOC to build China into a stronger country. [indiscernible], 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, lay 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 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 RB 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, 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 important 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 54.7 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 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 ties with China. IPS 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 are continuously innovated and upgraded. The multinateral Central Bank Digital Currency Bridge project 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 payment services for Mainland residents and overseas residents. As the main channel for cross-border RMB services for a long time, BOC has actively promoted various business areas and achieved a series of positive progress. First, continues to 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 participants serving more than 760 indirect participants. It has opened more than 1,600 clearing accounts for overseas participating banks and the cross-border RMB clearing volume has grown rapidly. And 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 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 as well appointed as the sole pilot clearing bank for digital RMB in LA. 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 tender bonds, setting a record for the largest issuance at scale by a sovereign institution. It helped -- we helped more than 80 entities issue offshore RMB bonds with an underwriting scale of over RMB 110 billion, ranking first among offshore bank underwriters for the third consecutive years. We also assisted Ministry of Finance in issuing the first green sovereign bond. Fourthly, seize market opportunities to provide cross-border RMB loans for enterprises. By 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 RMB syndicated loan valued at RMB 14.2 billion for FQ Metals Group, the world's leading iron ore producer, which is the largest RMB international syndicated loan to date. We also provided 5-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 international use of RMB to the market and customers, actively played the role of the Chinese leading unit. In multilateral and bilateral trade investment promotion mechanism and Chambers of Commerce Association, we have 23 overseas institutions serving the units of overseas Chinese-funded enterprises, chambers of commerce and associations, and we also hold RMB internationalization Forum in Shanghai and Hong Kong, many times and carry out 19 high stand 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, continuous to improve our product and service capabilities, continues to improve the basic conditions and serve Chinese enterprises going global and foreign companies bringing in, in China and act as the main channel of cross-border business, the main force for offshore market development and the leader in business innovation and better serve high-level opening up. Thank you.

Thank you, VP. We have the last question to be asked. Second row left, third lady, please.

I'm from China Business Diestion. 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 and operational efficiency through digital finance?

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

Thank you for your question. In 2025, BOC resolutely implemented the decisions and arrangements of the Party Central Committee, balanced development security strive to do a good job in the 5 key tasks. Further implemented regulatory requirements such as the implementation plan for the high-quality development of digital finance in banking industry -- 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 granular 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 development work idea of building platforms, aggregating data, promoting applications, preventing riskastation mechanism. We built a bi-large model platform, deployed more than 10 mainstream large models and empower 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. Cytek 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, VP, Zhao. 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.