Industrial and Commercial Bank of China Limited ($1398)

Respected investors, analysts and media friends, good afternoon. Welcome to the ICBC 2025 Earning Results Presentation. I'm [indiscernible] representing ICBC. Our 2025 annual results announcement has been published online. We sincerely appreciate global shareholders' recognition of ICBC's investment value. ICBC consistently prioritizes investor and media Relations as well as market value management, maintaining proactive communication with global stakeholders. Today's presentation is hosted in a hybrid format, on site in Beijing and Hong Kong with global live streaming. Allow me to introduce ICBC's senior management and attendees. In Beijing, we have President, Liu Jun; Vice President Yao Mingde; Board Secretary, Tian Fenglin. In Hong Kong, we have Vice President, Mr. Wang Jingwu; Vice President, Mr. Zhao Guide. Also present are Dr. Madam [ Cao Liqun ]; Mr. Dong Yang; Madam Chairman [indiscernible]; Mr. Dr. Wei; Mr. [indiscernible]. Now we'll invite Board Secretary, Tian Fenglin, to present ICBC's 2025 Annual Results.

Dear investors, analysts and media friends, good afternoon. Welcome to ICBC '25 Annual Results Presentation. Thank you for your continued attention and support. Our report on ICBC's operation performance in '25. In '25, ICBC successfully concluded its 14th 5-year plan, guided by its 5 transformations pathway, intelligent risk control, modernized structure, digital capabilities, integrated services and ecosystem development. The bank enhances value creation, market competitiveness, influence and wealth management by supporting economic recovery. ICBC achieved high-quality development, delivering a benchmark performance as a leading bank for steady progress in performance with enhanced resilience. By end of last year, ICBC total assets exceeded RMB 53 trillion. Customer loans surpassed RMB 30 trillion, up RMB 2.13 trillion Y-o-Y, investments reached RMB 16.91 trillion and customer deposits exceed RMB 37 trillion, up RMB 2.5 trillion Y-o-Y, while maintaining industrial leadership. Operating income rose 1.9% Y-o-Y to RMB 800 billion with net fee and commission income at RMB 111 billion, up by 1.6% Y-o-Y. Provision per fiscal by 2% Y-o-Y and net profit reached RMB 370 billion, about 1% Y-o-Y. The NIM stood at 1.28% with [indiscernible] declines. So now 18.76% and provision coverage ratio, 213.6%, reflecting robust risk resilience, both on strong performance, asset discipline and total cash dividends of RMB 110.6 billion in 2025, including interim dividend of RMB 50 billion. Following corporate governance procedures a final dividend of RMB 60 billion will be distributed. Based on average annual share prices, A share and H share dividend yield reached 4.22% and 5.99%, respectively. Sustainable shareholder return demonstrate the effectiveness of ICBC market value management measures. Second, stable asset liability growth was improved, service quality, customer loans, bond investments and deposit grew by [ 7.5%, ] 19.6% and 7.1% Y-o-Y, respectively. Credit structure further optimized. Our corporate loans rose by 7.8% Y-o-Y with accelerated growth in loans through key national strategies, major projects in underdeveloped sectors. Retail transformation advanced rapidly. Personal business loans up by 15% and customer loans up 18.5%. Upon proactively capturing market opportunities by deepening its 5 key areas. Technology, finance, total loans hit RMB 6 trillion. Gross finance reached -- gross loans reached RMB 6.7 trillion, ranking #1 in the industry. Inclusive loans totaled RMB 3.6 trillion. Gross rates was 22.8%. Pension assets under management hit RMB 5.9 trillion. Loans to core digital economy industry exceeded RMB 1 trillion. Through accelerated 5 transformation and mission reform momentum. Last year, ICBC strengthened capabilities to reform, aligning with the financial sector's theme of preventing risks, strengthening regulation and promoting high-quality development. The 5 transformation drove new progress in high-quality development and security. In Intelligent risk control, we will enhance a comprehensive wealth management system with holistic oversight, proactive prevention and intelligent control, strengthened the [indiscernible] risk framework and [indiscernible] collaboration and risk committees, officers and departments. So enterprise-wide intelligent risk control platform, the [indiscernible] center covered all branches. By end of last year, the NPL ratio stood at 1.31%, down 3 bps Y-o-Y. And special mature loans fell to 1.95%, down 7 bps Y-o-Y. Provision coverage remained robust at [ 213.97%. ] In terms of modernized structure, we'll support our national strategies, key sectors and undeveloped areas. Manufacturing loans rose to RMB 5.24 trillion, mid- to long term loans, RMB 2.38 trillion. Equipment [indiscernible] loans exceeded RMB 150 billion. Corporate RMB settlements valued at [ RMB 2,248 trillion. ] Trade finance stood at RMB 1 trillion and merchant acquiring volume reached RMB 2.85 trillion, seizing on the international opportunities on the ICBC became [ Turkey's ] RMB clearing bank, expanding its global clearing network to 12 centers. Cross-border RMB settlements grew 8% Y-o-Y to RMB 6.3 trillion. RMB global payment now stand at [ 44 ] countries and regions, up by 23% Y-o-Y. Digital and intelligent capabilities, advanced ICBC initiatives. Personal mobile banking users hit 630 million. The [indiscernible] was 290 million. Corporate internet banking served 18.94 million clients, monthly active users, 8.36 million, both leading the industry. AI wealth assistant, ICBC AI, was launched for personalized services. Over 500 AI applications were deployed across 30-plus business areas, boosting transaction automation to 96%. Integrated services provided comprehensive financial solutions across clients' life cycles. ICBC investment established 48 [indiscernible] equity funds, committed capital of RMB 108 billion, ranking #1 in the industry. The M&A loan growth surged 37%, led pioneering bond insurance for U.S. and U.K. firms, maintained #1 position in asset custody and RMB FX market, making ICBC global trading set 15,500 corporate growth, up by 24 Y-o-Y. The personal loan exceeded RMB 25 trillion. The ecosystem development [indiscernible] Ecosystem, corporate clients reached 14.75 million. Retail clients hit 780 million. Payroll disbursement volume exceed RMB 6 trillion, leading in scale and growth. Integrated urban and rural services and mobile banking empowered ecosystem synergy. ESG governance and disclosure frameworks will also have further enhanced. We'll also deepen the infrastructure of our financial services. We'll also raise empowering between ecosystem and our ESG governance. And outlook for '26. As the 15th 5-year plan begins, ICBC will uncover main goals, advance steady and prioritize quality. The bank will deepen its 5 transformations, balancing progress with stability to deliver sustainable value for global shareholders. Thank you.

Thanks for Mr. Tian's introduction. Let's enter the Q&A session. [Operator Instructions] The first question comes from Beijing meeting room, the first row lady, please.

Question one. Congratulations to the ICBC sustainable robust growth amidst complex changes. Did ICBC achieved more shifts in performance? What were the sales achievements for '26? Where is ICBC's strategic priorities? How do you project full year revenue and net profit?

This is President Liu speaking. We believe that 2025 marked the successful culmination of the 14th 5-year plan. ICBC navigated changes, structural optimization, a new growth driver advancing this 5 transformation. We continue to improving our indicators. We didn't stop pursuing the probabilities. And we have delivered a very good growth curve among challenges. Investors pay attention to our asset quality and our management of the nonperforming loans. I will introduce in 3 aspects. The first is that you can see our growing resilience in probability, our fee based income and 4 core profit metrics achieved positive growth despite sector wide pressures. The stablized interest margin, the net interest income serve as anchor with net interest margin contracting to continue to narrow, and in the structure, the Chinese economy is also stabilizing. Although there is narrowing in our NIM, but we can see declines. The fee based income grew by 1.4% and made a great contribution to our operating income. We can see it also adds to the sustainability of our probabilities. We can also see our asset has exceeded RMB 53 trillion, and RMB has rose 8.1% to RMB 28 trillion. The RMB bank investment rose by RMB 2.5 trillion, making a record high. We also optimized our structures, focus on our transformation and 5 priorities, our main balance ratio was 67%, up by 3.6 percentage points. We continue to serve the economy. And thirdly, we will look at our asset quality. The NPL ratio was 1.31%, down by 0.03 percentage points. The coverage of provision, the provision coverage was 213.6%. If you continue to follow asset basis operation, you can see that we have a very [ rash ] increase in our provision ratio. We create more room for our business development and also to dilute the impact coming from the cyclical pressure. We'll also continue to strengthen our disposal of the risks. We have a good asset quality and prudent risk appetite, which also have built a very solid foundation for our long-term development. And also '25, our A share price rose 14.6% and A share price rose 20.7%. Our cash dividend yield and [indiscernible] were top tier in the market, and we'll maintain our position as high as cash dividend paying A share listed company. And looking to '26. First, we'll continue to do well in the financial services to build a world-class bank. We have the standards for the world-class bank. We do not define our own standard. And going on our balance sheet, how can we realize the goal of becoming the world-class bank. My understanding is that if we still focus very much on the credit business, and we're still lagging behind the goal of becoming world-class require us to grow stronger in our financial services to place a trail of our own in providing better financial services to focus more on the technology driven financial service. Finance is the bloodline of the bank. If we cannot provide enough finances to the real economy, then we didn't leverage all of our strengths. We should combine the scale and also our services and to provide better services in all our overseas markets. So our first measure is to build stronger international operation. We integrate the full life cycle financial services, smart services and focus on the technological innovation and strengthen the commercial banking, investment banking, clearing banking services to provide a comprehensive financial solutions to our customers, continue to create -- to bring more value creation. If you look at the internationally strong banks that they rely less on the credit business and rely more on the financial services and a lot of income comes from financial services. And thus, their market value is higher than us. So ICBC will try to combine our credit business and with the financial services and try to balance well the 2 proportions and to be strong in both legs. And second, we'll also build a comprehensive service new engine. ICBC, as a large commercial bank, we also balance well both domestic and international markets. So we rely on our strength of international network, continue to mobilize resources and accessing more markets and to find our indulgence driver to provide more RMB product, provide all around business service, certainly on RMB, and continue to help the internationalization of RMB in terms of the pricing. From the 1990s to now, when we talk about the internationalization of our financing institutions, we talked a lot about the foreign exchange business. If in the 1990s, if they have more overseas institutions, if they can provide more foreign exchange business, that means it has higher internationalization level. But what I want to say here is if we take a closer look, take a second sight, when we talk about the global strategy, it has to be the globalization of RMB. And ICBC is the biggest market maker here, and we are strong in the RMB business. So going forward, we will become this cornerstone in building strong the RMB business. And certainly, we will continue to build this digitalized drivers. We are strong in technologies. We build a lot of systems, which are also iterating. And to power all of our business, we'll also pay attention to the application technologies, the new technologies, but the new technologies has to be tested before. If the technology is not safe, we do not dare to use the technologies in our bank because the data security, the privacy security of our customers is our top priority. So if we apply technologies to our system, we'll first do the safety check. We also want to make commitment to the market that we will study all of the new technologies and to conduct the safety checks and to use the safe and also cutting-edge technologies to serve the real economy, to serve the Chinese people. As you all know that the current situation is ever changing and very complicated. '26 is a year of deliveries. ICBC has achieved good results in the past 2 years. We are also confident to provide good results to you. And we also hope that the market can have more confidence in us.

[indiscernible] may proceed to the Q&A session.

First of all, [indiscernible] security, concerned about the asset quality [indiscernible] Could you provide an overview of the overall situation with a focus on the latest asset quality and personal credit as well as future trends. Thank you.

I'd like to ask Mr. President, Mr. Liu Jun, to answer this question.

Thank you for your question, and we appreciate your support, interest from our investors. In recent years, ICBC has consistently balanced high-quality development with robust risk management, prioritizing risk prevention is a core principle. Adhere to a steady and progressive approach, we have maintained stable and improving asset quality. We want to [indiscernible] period, the group's NPL ratio has consistently improved by at least 2 bps, [indiscernible] in 2025. The group's NPL ratio stood at 1.31%, 3 bps decline Y-o-Y. [indiscernible] successful conclusion to our asset quality targets for the 14th 5 year plan. [indiscernible], where asset quality pressures have risen [indiscernible] the industry, ICBC has proactively managed the risks, ensuring overall controllability and [indiscernible] provisioning. ICBC has [indiscernible] implemented its national strategy, comprehensively advancing the major task of inclusive finance, while also supporting the allocation of resources to the real economy, enhancing services for key customer segments, expanding the [indiscernible] product portfolios, strengthening operational support, and providing integrity service system and seller refined management foundation. ICBC has continuously expanded the coverage, accessibility and satisfaction of inclusive financial services, while maintaining healthy and sustainable development. Regarding the asset quality that consumers [indiscernible], ICBC has consistently improved the risk management foundation for inclusive loans in recent years. First, it [indiscernible] digital risk controllers expert [indiscernible], continuously applying risk management strategies and mechanisms. Second, it applies digital intelligent means to enhance the full site of risk management and the [indiscernible] of risk management in [indiscernible]. Third, apparently, [indiscernible] external risk characteristics, [indiscernible] and strengthens collateral management. First, it takes [indiscernible] to improve the resolution of potential risks and the management efficiency of [indiscernible] nonperforming assets in [indiscernible]. Last, risk controllers have made a solid foundation for ICBC to maintain peer comparable asset quality in inclusive loans. Looking ahead, we're confident that the asset quality of [indiscernible] will gradually stabilize. It is [indiscernible] phase, we're trying to build on past achievements in asset [indiscernible] against the backdrop of consolidating [indiscernible] economic environment, [indiscernible] for inclusive loans will continue to strengthen internally. [indiscernible] development, the professional capabilities of ICBC's [indiscernible] teams have significantly improved in digital intelligence and centralized risk control mechanisms have been continuously refined, both in internal and external advantages will support ICBC in delivering high quality inclusive financial services. In terms of personal loans, ICBC has [indiscernible] implemented the national strategy, focusing on its core responsibility and actively align with the existing policies. It has consistently enhanced market comparables, value creation and the risk management capabilities of its personal loans business. In terms of the development, ICBC has strengthened loan and cost profit management, continuously fostering a sustainable growth momentum to achieve both quality improvements and reasonable positive growth. Specifically, first, it analyzes the development trends of the real estate market and [indiscernible] management policies [indiscernible] environment [indiscernible] affordable housing and stabilizing the real estate market. Second, it emphasizes policies supporting [indiscernible] financial service models and increases consumer [indiscernible] diverse and differentiated consumption potential. Third, it addresses gaps in financial services for the real economy, improving service quality [indiscernible] agriculture and commercial sectors. The qualitative implementation of these measures has driven a high quality development of ICBC's personal loans business, which was noted best consumer credibility in China, [indiscernible] in 2025. Regarding asset quality, ICBC's personal loans has historically attained strong performance. However, in recent years due to economic transformation, [indiscernible] adjustments and temporary supply/demand imbalances, the PL ratio has entered a short-term upward trend aligning with industry wide patterns. However, China's economic fundamentals remain stable, resilient and full of potential with long-term positive conditions and trends unchanged. Thus, personal loan risks remain manageable. From a policy perspective, in 2025, [indiscernible] introduced policy to boost consumption such as subsidies for personal consumer goods and physical interest discounts for personal loans. The 15th 5 year plan outlines [indiscernible], stimulating consumption and for the first time, significantly raising the household consumption rate as a key socioeconomic development goal. As these policies take effect and the benefits are realized, the market foundation for personal loan will improve, and asset quality will return to [indiscernible] level. In response to market changes, ICBC adjusted our internal structure in 2026 by establishing also personal credit business deployment, further enhancing centralized and professional operations, simultaneously strengthened digital and intelligent capabilities, diversified product innovation and supply and personal consumption and business financing, balancing development and security and proactively addressed risks while improving the nonperforming asset disposal. Through the joint efforts of [indiscernible] the funds, the upward trend in personal loan deterioration has slowed. ICBC will always uphold high-quality risk control as a constant to adapt to market changes, ensuring stable asset quality across the group and injecting financial resilience into the high-quality development of the real economy.

The question comes from the Hong Kong meeting room, please?

I'm Meizhi, UBS. First, I want to congratulate ICBC to achieve such good results in a complex environment. My question is about the NIM. President Liu also mentioned last decline in NIM [indiscernible] comparing to '24. What are the current pricing trends for corporate and retail loans? How do you project NIM trajectory in 2026? And when might an inflection point occur?

Okay. This question goes to President Yao -- Vice President Yao.

Thank you for your questions. You have 2 questions. I will first answer your first question about the pricing trend. The loan -- we project that the NIM will continue -- the pricing will continue to go down but the pace will significantly moderate. The latest [indiscernible] adjustments in May '25 occurred nearly a year ago. And this repricing effect has been largely digested. The [indiscernible] rates is stabilizing, the corporate loans, residential mortgages and individual business loans show early signs of stabilization. So from the first 2 months of '26, the new loan growth declined by 2 bps Y-o-Y, a notable improvement from the 20 bps Y-o-Y drops. The potential [indiscernible] costs in '26 may continue to pressure loan yields downwards. And your second question is about the NIM, '26 NIM outlook. We project it will be an [ L-shaped ] trajectory. In '25, the performance in '25 was 1.28%, down by 14 bps Y-o-Y. The rate of declined narrowed by 5 bps versus 2024. So although the NIM is going down, but the decline has narrowed. If we put aside the [indiscernible] cuts, then we believe that there will be inflection points this year. Assuming no significant additional [indiscernible] deposit rate cost, the NIM decline will narrow further and the net interest is projected to achieve positive Y-o-Y growth. And about the 4 pillar driving the stabilization, the first is adaptive asset liability portfolio. We have enhanced sensitivity management to offset rate pressures, along with the [indiscernible] metric monetary policy balancing real economy supporting bank health. And secondly, liability cost optimization of the funding diversification will leverage leadership in custody and settlement services to attract low-cost deposits. And for the pricing discipline, we have strict enforcement of deposit rate for the classes and interbank pricing guidelines. And will sustain the volume price synergy and deposit growth. As a lot of high-cost time deposits matures, we also have pressure relief, benefits of '25 deposit rate cost is materializing. And so strategic long-term asset allocation for loan growth, the customer loans up by 7.5% in '25, above system average. The bond investment surged up by 19.6% in '25 with a system-wide 7.1% growth. The trade-off, for the trade-off analysis, the short-term lower yields and new bonds per share NIM, the bond repricing cycles is larger than the loan cycles. And the long-term with those high quality assets results to future probabilities. So in the short term, it will have impact on the NIM. And in the long term, it will have contribution to our value creation and the [indiscernible] global expansion synergy. For the overseas growth, we're continuing to open up to the international market and also for the global strategy of RMB growing globally. The international assets of ICBC was RMB 491.6 billion, up by 12.4% Y-o-Y, outpaced group average of 9.5%. And for the NIM impact and the short-term NIM compression continues amid global rate cuts. And for strategic value, accelerated RMB internationalization enhanced group synergy. We believe going forward, ICBC will adhere to a strong focus on industrial expertise and commercial innovation. We continue to optimize asset allocation and credit deployment. And thank you for your question.

Now we will be back to Hong Kong. The [ fourth ] question.

[indiscernible] conference, management presented the achievements of digital ICBC construction, analyzed ICBC's [indiscernible] were branded as smart ICBC, [indiscernible] strong emphasis on intelligence. Has ICBC upgraded its strategy in the fintech sector? What were the key achievements in artificial intelligence application in 2025 and [indiscernible] in 2026.

I ask the Vice President, Mr. [indiscernible] to answer this question.

Thank you for the question. Now I'll answer this question from 3 perspectives. First, regarding the development of smart ICBC. ICBC [indiscernible] strategy, [indiscernible] transformations, consistently positioning itself as the forefront of financial innovation. We will upgrade the digital ICBC, the digital ICBC to AI ICBC. This is planned business considerations, mainly with the tune of the AI actively placing the mega trend of digitalization, we're working on intelligent development, implementation strategies, advancing the AI plus initiative along with local conditions, [indiscernible] digital transformation, injecting strong momentum into building ICBC into world class financial institution. This app will signify ICBC's business commitment to advancing alongside AI innovation, further embracing artificial intelligence to elevate its digital and intelligent environment to new heights. Second, achievements in AI applications. AI presented unprecedented development opportunities for ICBC. Digital and intelligent transformation is not an option, but an accessible, a strategic choice to seize the initiative and gaining a competitive edge. In '25, we launched the [indiscernible] initiative, combined with top level design, [indiscernible] innovation to drive technological advancements in [indiscernible] application and to actively foster quality financial productivity. As well, we became the first in the industry to receive the highest level of certification across all capability domains in the [indiscernible] assessment, the technical level to continue to breaking new grounds and continuously strengthen our technological support, focusing on acquiring such as computing power, algorithm data and security. We have launched the ICBC smart search technology system. And, features 4 key characters, efficient computing power. We have built a large scale [indiscernible] solutions [indiscernible] scale and [indiscernible] we have integrated over 10 industrial models conducted in-depth and developed an enterprise level foundation metrics that better understand financial finance in ICBC. Additionally, we created an industry-leading intelligent [indiscernible] platform [indiscernible] resources. We have established an enterprise-level AI knowledge system, constructing a high-quality, large-scale and comprehensive training token financial data set to provide ample management for the large LLM training. ICBC is the only bank selected for National Data Administrations 2025 Trusted Data Space Innovation Power Program. Security and reliability. We have enhanced the government's efficiency by building a full chain security protection system for AI applications, effectively [indiscernible] infrastructure security, data security, security and application security. [indiscernible] business pain points with tangible solution guided by [indiscernible] principles. We successfully implement our [indiscernible] intelligence in over [ 50 ] scenarios. For example, investmentin training. We successfully deployed an intelligent pricing assistant in financial [indiscernible] ratio and the 50% [indiscernible] in transaction volume. Customer acquisition and marketing [indiscernible] developed the personal client management, [indiscernible] assistance according to human AI collaborative working model that drove billions in additional sales for key products. With management, we introduced [indiscernible] an intelligence assistant, providing an end to end support for over 4,000 credit officers across the bank. Operational efficiency by [indiscernible] operational assistance with [indiscernible] [ 370 ] [indiscernible] introductions in 2026, improving efficiency by reducing operational risks are notable achievements. Third aspect pertains to fintech planning and the key initiative for the current year. Along with the 15th 5 year plan framework grounded in practical realities, ICBC has formulated a preliminary draft of its group wide 15th 5-year plan. As a core component of this plan, we have defined the guiding principles for building digital intelligence in ICBC as well as [indiscernible] refers to digital intelligence driven, low quality productive forces. And [indiscernible] include ICBC's high quality development with the overarching goal of the initiative. The second high is group wide high level security, the foundation building line. And the third high is high-efficiency governance via business technology, data integration, the system safeguard. [indiscernible] framework will serve as the central theme for ICBC fintech efforts in the coming phase. We maintain an open mindset, deepen insight and practice, refine strategies for innovation and continuously expand the pathways to realizing the AI ICBC. To ensure a solid implementation and deployment [indiscernible] is crucial. ICBC adheres to the 5-year plan [indiscernible] this year's objectives for the [indiscernible] building AI, ICBC's key focus of this effort will concentrate on 4 aspects, intelligence smart capabilities [indiscernible] platform and continue implementing the initiative to strengthen digital intelligent momentum. First, accelerate intelligent transformation. Continuously optimize ICBC [indiscernible] enterprise level data space, enhancing [indiscernible] agents. Second, strengthen the smart foundation, upgrade ECOS 2.0 smart banking ecosystem, advance toward an AI native architecture and shift the role of technology from backstage support to a frontline driver. Third, expand intelligent computing capacity, proactively optimize the computing power system to provide advanced, efficient and superior support for digital intelligent development. Fourth, develop shared platforms, enhance key platforms such as mobile banking and accelerate [indiscernible] well advanced service mode, offering customers seamless access and bank-wide responsive high-quality services. In summary, we must pursue innovation with determination, take proactive action and accelerate the construction of AI ICBC and deepen the integration of artificial intelligence with [indiscernible]. We aim to be unique in how to replicate competitive edge and robust momentum into ICBC's vision to become a first-class leading integrated driven bank. Thank you.

Are there any questions from Hong Kong?

[indiscernible] Morgan Stanley. My question is about the capital replenishment and profit distribution. What are the ICBC's capital replenishment plans for 2026? How will dividend policies evolve? We also noticed that other banks are increasing their profit distribution. Will ICBC consider raising its cash dividend payout ratio to further enhance investor returns?

I will ask the Board Secretary to answer your question.

Thank you for your question. ICBC has always placed high importance in capital management, maintaining industry-leading capital metrics in '25, adhering to the overarching principle of balancing value creation market position, risk control and capital constraints. ICBC rigorously implement its new capital regulations and continuously improved capital management effectiveness. First, capital management initiative. In '25, we optimized long-term capital replenishment mechanism. We returned earnings, added RMB 246.9 billion to CET1 capital, issued RMB 230 billion in capital instruments and RMB 10 billion in TLAC bonds. We reduced weighted average interest cost of existing instruments by 42 bps. At the end of last year, ICR was 18.76%, the Tier 1 capital ratio of 14.94%. The CET1 ratio, 13.57%. The TLAC risk weighted ratio, 21.47%. TLAC leverage ratio, 10.79% maintained regulatory buffer. Then for '26, our strategic actions are the first to have this 15th 5-year plan capital strategy. We'll develop a forward-looking capital plan to support the real economy, advance ICBC 5 transformations. And second, we'll deepen the [ EVA ] integration and that [ EVA ] matrix into business units, valuations to drive better driven decision-making. And third, we'll have this proactive capital management. We will execute the capital and TLAC insurance plan flexibly based on capital supply demand dynamics, market liquidity conditions and the policy support. We'll issue this -- the states is RMB 300 billion special treasury bonds for systematic banks pending official announcements. Our commitment is delivering sustainable returns while balancing strategic growth. And since our listing, we have cumulative cash dividends of RMB 1.58 trillion. Our pay out ratio consistently higher than 30%, the highest among Asia listed company. And for the frequency, we have this semiannual dividends since 2024, both interim and final dividends. We have twice dividend distribution over the year. And for the H share flexibility, we add this RMB dividend option since 2024. And for the dividend yield advantage from 2023 to '25, the average is yield is [ 5.22%. ] The average H share yield is 7.29%. And in 2025, the yield -- the A share yield is 4.22%. The H share yield is 5.99%, significantly exceeded 1 year deposit rates of 1.5%, and average was management yield of 3.2%. So we believe the shares of ICBC has its long-term value for our investors. And for '25 dividend execution, we have this interim dividend of RMB 50.4 billion, which was distributed in August 2025. And our proposed final dividend is RMB 60.2 billion subject to AGM approval. The '25 total payout is RMB 110 billion. In future direction, ICBC will dynamically optimize dividend policies by [indiscernible]. Shareholders' return expectation, capital retention needs, external financial condition. Our goal is to sustain top-tier dividend yield while preserving strategic flexibility.

Mr. Liu Jun wants to supplement that ICBC has the highest capital among other peers, and the changes in our capital will bring signals to the industry. We'll continue to commit to the market that we will manage our capital well. We have this rolling capital management plan. We will make good use of our indulgence and external capital replenishment. And second, see from our [indiscernible] and from our bond yields, from our share yields, that the share yield is higher than the [ WM ] products. This means ICBC is available for investment. We'll not stop here. We'll continue to create more values to showcase our value for investments and bring returns to our investors. So secondly, we will continue to bring more income by building solid finances, we will have more capital return replenishment. We want to be strong, both in our credit business and our noninterest income businesses. And we will have this dynamic changes to the market demand so as to secure a healthy development in the market. If the market wants higher payout ratio, ICBC will also take into consideration of the market demand. If the adjustments will bring healthier development markets, then ICBC will take the lead in maybe increasing our payout ratio. And we'll also look up to our international peers to make better capital management, and we will monitor the demand from the current market in terms of the payout ratio. That's all from me.

Now we'll take the follow-up question.

[indiscernible] My question is about the corporate banking. Corporate banking has always been the traditional strength of ICBC in 2025. What achievements are associated [indiscernible] and consolidating the foundation of the real economy as the top of its 12 strategic tasks? How will ICBC optimize its corporate credit allocation structure in 2026? And through comprehensive financial services contribute to building a leading industrial system?

May I ask President [indiscernible] to answer this question.

Thank for your question. About your first question, ICBC's achievements in supporting industry, commerce and technological innovation. Industrial and commercial credit is the traditional strength in 2025 5. ICBC [indiscernible] implemented guiding principles on national strategies. We proactively aligned with existing policies and a package of incremental measures focusing on the wants and the needs of industry system development. By building a highly adaptable corporate credit framework, we continuously enhanced the high-quality financial support for the world economy. As of 2025, the bank's corporate loan balance reached CNY 18.8 trillion, maintaining a leading position in the industry with a full year increase of CNY 1.4 trillion. Lastly, we achieved solid results in serving sectors such as manufacturing, commerce and technology. First, manufacturing loan balance [indiscernible] exceed CNY 5 trillion, reaching new heights. We actually support the manufacturing power strategy, launching specialized financial plans for new industrialization. Along with large-scale [indiscernible] initiative, we conducted the ICBC benefit cluster campaign in the [indiscernible] to serve [indiscernible] manufacturing clusters, fostering intelligent, green and integrated development. By the end of 2025, the manufacturing loan balance reached CNY 5.2 trillion, a 20% increase with both balance and growth within the industry. Equipment loans CNY 150 billion in disbursements. Second, we serve [indiscernible] commercial and trade customers, expanding our reach even further. We prioritized building a robust domestic market by deepening [indiscernible], such as [indiscernible] and domestic bulk communities, trade logistics, e-commerce and service consumption to boost domestic demand and stimulate consumption. Under the guidance of the [indiscernible], we'll engage in the high quality level retail list project collaboration, providing nearly CNY 10 billion in funding support for over 30 retail projects, including Beijing's [indiscernible] commercial streets. We also innovated and upgraded the merchant e-loan product to enhance financial support for SMEs in the trade sector. By end of 2025, the RMB corporate segment volume in the trade sector exceeded CNY 220 trillion, leading the industry. While the trading financing balances surpassed CNY 1 trillion. Additionally, the number of commercial and trade customers grew by over 1 million in 2026 -- in 2025. And third, the means of solving technological innovation have been further refined with stronger momentum for upgrading and through innovation. Science and technology finance development plan was formulated to support the optimization and upgrading of traditional industries as well as cultivation and expansion of emerging and future industries. We have the ICBC science and technology innovation product brand, innovative exclusive financial products such as disruptive technology loans, credit score based loans, R&D loans and intellectual property financing were introduced to provide customers with more diversified financial support. By the end of 2025, the balance of technology-related loans reached [ CNY 86 trillion, ] the coverage ratio of credit services for [indiscernible] specialized and sophisticated SMEs 30%, an increase of 22 percentage points from the beginning of the year. [indiscernible] science and technology innovation bonds surpassed the CNY 100 billion. The second question is about ICBC's plan to support the modernization of the industrial system in 2026. Since the beginning of this year, ICBC has actively implemented physical and the financial policies to boost domestic demands, adhering to the principle of acting ahead in this recession to stabilize investment and [indiscernible] consumption. On the other hand, we see the early year construction peak collectively engaging with 2 -- with priority projects and low policy based financial instruments. In the first 2 months, corporate loan disbursement exceeded CNY 2 trillion with over CNY 60 billion allocated to support key initiative projects. On the other hand, we supported the Spring Festival consumption boom on February 17, 2026, ICBC collaborated with [indiscernible] and the People's Bank of China and key enterprises in the commercial sector to host the financial support for commerce to facilitate [indiscernible] and boost consumption symposium. We also launched the heavy shopping from New Year campaign to stimulate consumption and contribute to building a robust domestic market. Moving forward, ICBC will continue to align with the needs for the real economy monitory policy development actions and the bank's operational realities, maintaining a strong cooperation lending momentum. [indiscernible] oriented approach to better serve the construction of the industrial system. [indiscernible] a key component of our banks 5 transformations. We will accelerate the development of modern corporate credit framework tailored to the financial needs of the industrial system construction, providing services that better align with the economic structure. For the transformation and upgrading of traditional industries, we will enhance financial support for key areas of rural industrialization. We'll deepen the ICBC [indiscernible] initiative to support advanced manufacturing clusters comprehensively serving 80 merchant level clusters to strengthen their core competitiveness. We will also back large scale equivalent [indiscernible] and upgrading to priority effective investment expansion, [indiscernible] emerging and future industries, we will refine our specialized service system to better support the development of 3 international sci-tech innovation hubs and national regional sci-tech innovation centers. We'll build the ICBC science and innovation ecosystem platform, offering in full circle financial services to high-quality innovative enterprises, including little [indiscernible] companies. For fostering high-quality and efficient modern services, we will leverage our strength in trade finance, focusing on key modules in modern services. By utilizing policy tools such as service consumption and elderly care lending as well as interest subsidy programs for service sector businesses, we'll ensure precise product service alignment, develop industry specific models and drive high-quality developments. Second one on [indiscernible] projects to advance national strategies. We will focus on [indiscernible] major projects outlined in the 15th 5-year plan, actively aligning with the priorities such as major projects and major reforms, [indiscernible] urbanization initiative, more policy [indiscernible] financial instruments and the central government's budgetary investments. [indiscernible] prioritize development of the national comprehensive [indiscernible] transportation network, systems, [indiscernible], urban and rural products. Those efforts will accelerate the establishment of modern infrastructure system to boost national strategy goals. Third, client-centered approach will accelerate the enhancement of full integration with service capabilities. We will rigorously promote our comprehensive financial solutions, closely tracking evolving clients' needs while strengthening the financing -- the intellectual empowerment technological enablement and ecosystem synergy to elevate our integrated services capability and build differentiated competitive advantage. By deeply embedding ICBC premium service into clients, industry chains, supply chains and business ecosystem, we aim to become the trusted financial partners of choice.

Due to time limits, that's the end of Q&A session. I want to thank all the investors, analysts and friends from the media for your communication with the management. We believe this is not only an important results announcement, but it's also an in-depth and professional communication. It only reflects our 2025 results, but it also shows our confidence for the future years. And in the future, we will have road shows and some other ways to keep a close communication with the market. If you have further questions, our IR team and PR team are very happy to communicate with you. ICBC will stick to its core business, improve its efficacy and efficiency and create long-term and stable value for our investors. Thank you for your support. Now that's the end of the 2025 annual results announcement. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]