6818) THIRD QUARTERLY REPORT OF

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1 Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. 中國光大銀行股份有限公司 (A joint stock company incorporated in the People s Republic of China with limited liability) (Stock code: 6818) THIRD QUARTERLY REPORT OF 2017 The Board of Directors (the Board ) of (the Company ) hereby announces the unaudited results of the Company and its subsidiaries for the third quarter ended 30 September 2017 (the Reporting Period ) prepared under the International Financial Reporting Standards (the IFRS ). This announcement is made in accordance with Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and Rule of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited. Beijing, the PRC 30 October, 2017 On behalf of the Board TANG Shuangning Chairman As at the date of this announcement, the Executive Directors of the Company are Mr. Zhang Jinliang, Mr. Ma Teng and Ms. Li Jie; the Non-executive Directors are Mr. Tang Shuangning, Mr. Gao Yunlong, Mr. Cai Yunge, Mr. Zhang Shude, Mr. Li Huaqiang and Mr. Zhao Wei; and the Independent Nonexecutive Directors are Mr. Qiao Zhimin, Mr. Xie Rong, Ms. Fok Oi Ling Catherine, Mr. Xu Hongcai, Mr. Feng Lun and Mr. Wang Liguo.

2 I. IMPORTANT NOTICE Third Quarterly Report of 2017 (H shares) 1.1 The Board of Directors, Board of Supervisors and Directors, Supervisors and Senior Management of the Bank hereby warrant the authenticity, accuracy and completeness of the contents of this report and that there are no false representations, misleading statements or material omissions, and jointly and severally assume full responsibility for the information in this report. 1.2 The fourteenth meeting of the Seventh Session of the Board of Directors of the Bank was convened on 30 October 2017, at which the Third Quarterly Report of 2017 was considered and approved. 15 out of 15 Directors attended the meeting in person. Independent Director Mr. Xu Hongcai was authorized in writing by Independent Director Mr. Feng Lun, who was not able to attend the meeting due to other official duties, to attend the meeting and exercise the voting right on his behalf. 8 supervisors were present at the meeting as non-voting attendees. 1.3 The financial statements in this report were prepared pursuant to International Financial Reporting Standards ( IFRS ) and are unaudited. 1.4 In this report, the Bank, our Company and the Company all refer to China Everbright Bank Company Limited, and the Group refers to and its subsidiaries. 1.5 Mr. Tang Shuangning, Chairman of the Board of Directors, Mr. Zhang Jinliang, President and Mr. Xie Rong, Independent Non-executive Director hereby declare and warrant the authenticity, accuracy and completeness of the financial statements in this quarterly report.

3 II. BASIC CORPORATE INFORMATION 2.1 Key financial data Item 30 September December 2016 Unit: RMB million Changes over the end of the previous year (%) Total assets 4,030,414 4,020, Net assets attributable to equity shareholders of the Bank 273, , Net assets per share attributable to equity shareholders of the Bank 1 (RMB) Item January September, 2017 January September, 2016 Changes over the same period of the previous year (%) Operating income 68,873 70, Net profit attributable to equity shareholders of the Bank 25,433 24, Basic earnings per ordinary share 2 (RMB) Diluted earnings per ordinary share 3 (RMB) Return on weighted average net assets 4 (%) percentage points Net cash flows from operating activities (204,273) 229,453 Not Applicable Notes: 1. Net assets per share attributable to equity shareholders of the Bank = (net assets attributable to equity shareholders of the Bank of other equity instrument)/total number of ordinary shares at the end of the period. 2. Basic earnings per share = net profit attributable to ordinary shareholders of the Bank/weighted average number of ordinary shares outstanding; net profit attributable to ordinary shareholders of the Bank = net profit attributable to equity shareholders of the Bank dividends of the declared for the reporting period. 3. Diluted earnings per share = (net profit attributable to ordinary shareholders of the Bank + effect of dilutive potential ordinary shares on net profit attributable to ordinary shareholders of the Bank)/(weighted average number of ordinary shares outstanding + weighted average number of dilutive potential ordinary shares converted into ordinary shares). 4. Return on weighted average net assets = net profit attributable to ordinary shareholders of the Bank/ weighted average net assets attributable to ordinary shareholders of the Bank, listed in an annualized form.

4 The above figures were calculated according to the Compilation Rules for Information Disclosures by Companies that Offer Securities to the Public (No.9): Calculation and Disclosure of Rate of Return on Equity and Earnings per Share (2010 Revision) issued by the CSRC and the Interpretation of Accounting Standards for Business Enterprises (No.7) of the Ministry of Finance. The Bank declared dividends of the of RMB1,450 million (before tax) for January to September, Capital adequacy ratio and leverage ratio indicators The capital adequacy ratio (CAR) indicators of the Group as at the end of the reporting period calculated in accordance with the Capital Rules for Commercial Banks (Provisional) (released by the China Banking Regulatory Commission ( CBRC ) on 7 June 2012) are as follows: Item Unit: RMB million, % 30 September December 2016 Consolidated Consolidated Nonconsolidated Nonconsolidated Net common equity tier-1 capital 242, , , ,023 Net tier-1 capital 272, , , ,970 Net capital base 352, , , ,783 Risk-weighted assets 2,785,320 2,724,566 2,665,037 2,607,124 Common equity tier-1 CAR Tier-1 CAR CAR The leverage ratio indicators of the Group as at the end of the reporting period calculated in accordance with the Measures for the Administration of the Leverage Ratio of Commercial Banks (Revised) (released by the CBRC on 30 January 2015) are as follows: Item 30 September June 2017 Unit: RMB million, % 31 March December 2016 Leverage ratio Net tier-1 capital 272, , , ,873 Adjusted on-balance sheet and offbalance sheet assets 4,621,816 4,643,364 4,688,433 4,573,997

5 2.3 Liquidity coverage ratio indicators The liquidity coverage ratio indicators of the Group as at the end of the reporting period are as follows: Unit: RMB million, % Item 30 September December 2016 Liquidity coverage ratio High quality liquid assets 292, , Net cash outflows in 30 days from the end of the reporting period 294, , Differences between the financial statements prepared in accordance with the PRC Generally Accepted Accounting Principles ( PRC GAAP ) and those prepared in accordance with IFRS. There was no difference regarding the net profit from January to September, 2017 and the net assets as at 30 September 2017 as presented in the Group s consolidated financial statements prepared in accordance with PRC GAAP and those prepared in accordance with IFRS. 2.5 Analysis of operating results As at the end of the reporting period, the total assets of the Group posted RMB4, billion, representing an increase of 0.26% over the end of the previous year. The total liabilities were RMB3, billion, representing a decrease of 0.34% over the end of the previous year. Of these, the balance of deposits reported RMB2, billion, up by 5.01% over the end of the previous year. Balance of loans and advances stood at RMB2, billion, representing an increase of 12.01% over the end of the previous year. From the beginning of the year to the end of the reporting period, the Group realized a net profit of RMB billion, a year-on-year increase of 4.05%. Its operating income registered RMB billion, down by 2.85% year on year. Its net interest income reached RMB billion, down by 7.64% year on year and accounting for 65.48% of the total operating income, while its net fee and commission income was RMB billion, up by 10.92% year on year and accounting for 34.18% of the total operating income. From the beginning of the year to the end of the reporting period, the Group incurred operating expenses of RMB billion, a decrease of 4.05% year on year. Its impairment losses on assets were RMB billion, down by 11.62% year on year. As at the end of the reporting period, the non-performing loans of the Group totaled RMB billion, representing an increase of RMB3.000 billion over the end of the previous year. Its non-performing loan ratio was 1.58%, down by 0.02 percentage point over the end of the previous year. Its provision coverage ratio was %, up by 2.00 percentage points over the end of the previous year.

6 As at the end of the reporting period, the Group s CAR reached 12.67%. Its tier-1 CAR stood at 9.77%, while its common equity tier-1 CAR reported 8.69%, all of which meet the regulatory requirements. As at the end of the reporting period, the leverage ratio of the Group was 5.89%, up by 0.45 percentage point over the end of the previous year. 2.6 Total number of shareholders and shareholding of top 10 shareholders and top 10 shareholders not subject to selling restrictions as at the end of the reporting period are as follows: Unit: Share, % Total number of shareholders as at the end of the reporting period (shareholders) A Shares 239,692, H Shares 988 Shareholding of top 10 shareholders Name of shareholder China Everbright Group Limited Nature of shareholder Domestic legal person Number of shares Class of shares Shareholding percentage Number of shares subject to selling restrictions Number of shares pledged/ frozen 11,565,940,276 A Shares ,965,000 H Shares 0.37 Central Huijin Investment Limited State 10,250,916,094 A Shares Hong Kong Securities Clearing Company Nominees Limited, including: Ocean Fortune Investment Limited China Life Reinsurance Company Limited China Everbright Limited China Securities Finance Corporation Limited China Reinsurance (Group) Corporation Shenergy (Group) Co., Ltd. Zhuhai Shipping Corporation Limited Central Huijin Asset Management Ltd. Yunnan Hehe (Group) Co., Ltd. 6,863,069,480 H Shares Unknown Overseas legal person Domestic legal person Overseas legal person Domestic legal person Domestic legal person Domestic legal person Domestic legal person Domestic legal person Domestic legal person 1,605,286,000 H Shares ,508,736,000 H Shares ,572,735,868 A Shares ,168,285,565 A Shares ,094,619 A Shares ,393,000 H Shares ,002,403 A Shares ,999,875 A Shares ,693,300 A Shares ,063,556 A Shares 1.34

7 Notes: 1. As at the end of the reporting period, all ordinary shares of the Bank are not subject to selling restrictions. 2. Statement on the connected party relations or concerted action among the aforesaid shareholders: The Bank was aware that as at the end of the reporting period, Central Huijin Investment Limited held 55.67% and 71.56% interest in China Everbright Group Limited and China Reinsurance (Group) Corporation, respectively; Central Huijin Asset Management Ltd. is a wholly-owned subsidiary of Central Huijin Investment Limited; China Everbright Limited is a subsidiary indirectly controlled by China Everbright Group Limited; China Life Reinsurance Company Limited is a subsidiary of China Reinsurance (Group) Corporation; Zhuhai Shipping Corporation Limited and Ocean Fortune Investment Limited are both subsidiaries indirectly controlled by China COSCO Shipping Corporation Limited. Save for the above, the Bank is not aware of any connected party relationship or concerted action among the above ordinary shareholders. 3. The total number of H shares of the Bank held by the Hong Kong Securities Clearing Company Nominees Limited acting as the nominee for all institutional and individual investors that maintain an account with it was 6,863,069,480 H shares as at the end of the reporting period. The Bank was aware that apart from the 1,605,286,000, 1,508,736,000, 172,965,000 and 376,393,000 H shares of the Bank held by Ocean Fortune Investment Limited, China Life Reinsurance Company Limited, China Everbright Group Limited and China Reinsurance (Group) Corporation respectively, all of which were under the name of Hong Kong Securities Clearing Company Nominees Limited, the number of remaining H shares of the Bank held under the name of Hong Kong Securities Clearing Company Nominees Limited was 3,199,689,480 H shares.

8 2.7 Total number of preference shareholders and shareholdings of top 10 preference shareholders as at the end of the reporting period Everbright P1 (Code of : ) Total number of preference shareholders of Everbright P1 as at the end of the reporting period (shareholders) Name of shareholder Bank of Communications Schroder Fund Management Co., Ltd. China CITIC Bank Corporation Limited Chuangjin Hexin Fund Management Limited Nature of shareholder Changes in shareholding during the reporting period Number of shares held Percentage of shareholding 18 Type of shares Others 37,750, Domestic Others 17,750, Domestic Others 15,510, Domestic BOCI Securities Limited Others 15,500, Domestic Bank of Communications International Trust Co., Ltd. Others 15,500, Domestic Hwabao Trust Co., Ltd. Others 13,870, Domestic China Resources SZITIC Trust Co., Ltd. Others 13,870, Domestic CCB Trust Co., Limited Others 10,000, Domestic China Ping An Property & Casualty Insurance Co., Ltd. China Ping An Life Insurance Co., Ltd. Others 10,000, Domestic Others 10,000, Domestic Unit: Share, % Number of shares pledged/ frozen Note: China Ping An Property & Casualty Insurance Co., Ltd. and China Ping An Life Insurance Co., Ltd. have connected party relations. Bank of Communications Schroder Fund Management Co., Ltd. and Bank of Communications International Trust Co., Ltd. have connected party relations. Save for the above, the Bank is not aware of any connected party relationship or concerted actions among the above shareholders of and between them and the top 10 shareholders of ordinary shares.

9 2.7.2 Everbright P2 (Code of ) Total number of preference shareholders of Everbright P2 as at the end of the reporting period (shareholder) Name of shareholder AXA SPDB Investment Managers Co., Ltd. Shanghai Wisdom Asset Management Co., Ltd. China Everbright Group Limited China Life Insurance Company Limited Postal Savings Bank of China Co., Ltd. Bank of Communications Schroder Fund Management Co., Ltd. Bank of Communications International Trust Co., Ltd. China Resources SZITIC Trust Co., Ltd. Nature of shareholder Changes in shareholding during the reporting period Number of shares held Percentage of shareholding 23 Type of shares Others 16,470, Domestic Others 13,090, Domestic Others 10,000, Domestic Others 8,180, Domestic Others 7,200, Domestic Others 6,540, Domestic Others 6,540, Domestic Others 3,680, Domestic BOCI Securities Limited Others 3,270, Domestic HuaAn Future Asset Management (Shanghai) Limited Others 3,270, Domestic Bank of Hangzhou Co., Ltd. Others 3,270, Domestic China CITIC Bank Corporation Limited Others 3,270, Domestic Unit: Share, % Number of shares pledged/ frozen Note: Bank of Communications Schroder Fund Management Co., Ltd. and Bank of Communications International Trust Co., Ltd. have connected party relations. China Everbright Group Limited is also one of the top 10 holders of the ordinary shares of the Bank. Save for the above, the Bank is not aware of any connected party relationship or concerted actions among the above shareholders of and between them and the top 10 shareholders of ordinary shares.

10 III. SIGNIFICANT EVENTS 3.1 Material changes of major financial statements items and financial indicators and the reasons thereof Applicable Inapplicable Item Deposits with banks and other financial institutions Placements with banks and other financial institutions Financial assets at fair value through profit or loss Held-to-maturity investments 30 September 2017 Unit: RMB million, % 31 December 2016 Change Main reasons for change 75, , Deposits with banks scaled down 83, , Placements with domestic other financial institutions scaled down 21,965 7, Bonds held for trading increased 364, , Investments in held-to-maturity bonds increased Other assets 69,646 35, Precious metals held scaled up Derivative financial liabilities 5,924 4, Negative revaluation of derivatives increased Other liabilities 43,703 31, Items in the process of clearing increased Other comprehensive income (857) 509 Not applicable Valuation losses from available-forsale financial assets increased Item January to September, 2017 January to September, 2016 Change Main reasons for change Net trading (losses)/gains (2,017) 196 Not applicable Net losses arising from investment securities Net valuation losses of derivative financial instruments increased (96) (30) Gains from bond trading decreased Net foreign exchange gains 1, The net foreign exchange gains increased due to the changes of exchange rate

11 3.2 Progress and impact of significant events and analysis and explanation of the solutions Applicable Inapplicable Conversion of convertible corporate bonds Starting from 18 September 2017, convertible bonds issued by the Bank (stock name: Everbright Convertible Bonds, stock code: ) can be converted into ordinary shares (A shares) of the Bank at the price of RMB4.26 per share. During 18 September to 30 September 2017, Everbright Convertible Bonds worth RMB100,000 were converted into ordinary shares (A shares) of the Bank cumulatively, and the number of shares converted reached 23,459 cumulatively Issuance of tier-two capital bonds On 29 August 2017, the Bank issued the second tranche tier-two capital bonds with a total principal amount of RMB12 billion at a fixed coupon rate of 4.70% with a term of 10 years. The Bank is entitled to redeem the bonds at the end of the fifth year Second issuance of the On 28 February 2017, the Bank had its plan for second issuance of reviewed and approved at the 2017 First Extraordinary General Meeting which coincided with the 2017 First A Shareholders Class Meeting, 2017 First H Shareholders Class Meeting and 2017 First Preference Shareholders Class Meeting. As at the disclosure date of the Report, the proposal is in progress Non-public issuance of H shares On 25 July 2017, CBRC reviewed and approved the proposal of the non-public issuance of H shares of the Bank, approving the Bank s non-public issuance of no more than billion H shares. As at the disclosure date of the Report, the matter is under review of relevant regulators China Everbright Bank (Europe) S.A. started operation China Everbright Bank (Europe) S.A., a wholly owned subsidiary of the Bank established in Luxembourg was granted a license by the European Central Bank and started operation in July 2017.

12 3.3 Undertakings overdue and not fulfilled during the reporting period Applicable Inapplicable 3.4 Warnings and explanations of any forecasted loss or significant changes in accumulated net profit for the period from the beginning of the year to the end of the next reporting period or in comparison to the same period of the previous year. Applicable Inapplicable 3.5 Changes in accounting policies Applicable Inapplicable 3.6 Other significant events Applicable Inapplicable IV. PUBLICATION OF QUARTERLY REPORT The quarterly report prepared in accordance with PRC GAAP and IFRS respectively are available on the websites of Shanghai Stock Exchange ( The Stock Exchange of Hong Kong Limited ( and the Bank ( V. APPENDIX The consolidated statement of profit or loss, the consolidated statement of other comprehensive income, the consolidated statement of financial position, and the consolidated cash flow statement (prepared under IFRS) are attached below. Legal Representative: Tang Shuangning Board of Directors of October 30, 2017

13 Financial Statements For the Nine Months Ended 30 September 2017 (Prepared in accordance with International Financial Reporting Standards) 1

14 Consolidated Statement of Profit or Loss For the nine months ended 30 September 2017 (Expressed in millions of Renminbi, unless otherwise stated) For the nine months ended 30 September Interest income 118, ,839 Interest expense (73,462) (57,007) Net interest income 45,100 48,832 Fee and commission income 25,010 22,385 Fee and commission expense (1,467) (1,160) Net fee and commission income 23,543 21,225 Net trading (losses)/gains (2,017) 196 Dividend income 6 5 Net losses arising from investment securities (96) (30) Net foreign exchange gains 1, Other operating income Operating income 68,873 70,896 Operating expenses (21,654) (22,569) Operating profit before impairment 47,219 48,327 Impairment losses on assets (14,241) (16,113) Profit before tax 32,978 32,214 Income tax (7,498) (7,725) Net profit 25,480 24,489 2

15 Consolidated Statement of Other Comprehensive Income For the nine months ended 30 September 2017 (Expressed in millions of Renminbi, unless otherwise stated) For the nine months ended 30 September Net profit 25,480 24,489 Other comprehensive income: Items that may be reclassified subsequently to profit or loss: Available-for-sale financial assets: - Net change in fair value (1,364) Reclassified to the profit or loss upon disposal (383) (62) - Related income tax effect 437 (13) Exchange differences on transaction of financial statements of overseas subsidiaries (56) 13 Other comprehensive income, net of tax (1,366) 52 Total comprehensive income 24,114 24,541 Net profit attributable to: Equity shareholders of the Bank 25,433 24,437 Non-controlling interests ,480 24,489 Total comprehensive income attributable to: Equity shareholders of the Bank 24,067 24,489 Non-controlling interests ,114 24,541 Basic earnings per ordinary share (in RMB) Diluted earnings per ordinary share (in RMB)

16 Consolidated Statement of Profit and Loss For the three months from 1 July to 30 September 2017 (Expressed in millions of Renminbi, unless otherwise stated) For the three months from 1 July to 30 September Interest income 39,863 36,229 Interest expense (25,146) (20,022) Net interest income 14,717 16,207 Fee and commission income 8,062 7,783 Fee and commission expense (511) (456) Net fee and commission income 7,551 7,327 Net trading losses (687) (350) Dividend income 6 5 Net (losses)/gains arising from investment securities (20) 47 Net foreign exchange gains Other operating income Operating income 22,488 23,815 Operating expenses (7,303) (7,156) Operating profit before impairment 15,185 16,659 Impairment losses on assets (4,211) (6,157) Profit before tax 10,974 10,502 Income tax (2,466) (2,481) Net profit 8,508 8,021 4

17 Consolidated Statement of Other Comprehensive Income For the three months from 1 July to 30 September 2017 (Expressed in millions of Renminbi, unless otherwise stated) For the three months from 1 July to 30 September Net profit 8,508 8,021 Other comprehensive income : Items that may be reclassified subsequently to profit or loss: Available-for-sale financial assets: - Net change in fair value 595 1,096 - Reclassified to the profit or loss upon disposal (530) (152) - Related income tax effect (16) (236) Exchange differences on transaction of financial statements of overseas subsidiaries (27) 2 Other comprehensive income, net of tax Total comprehensive income 8,530 8,731 Net profit attributable to: Equity shareholders of the Bank 8,494 7,998 Non-controlling interests Total comprehensive income attributable to: 8,508 8,021 Equity shareholders of the Bank 8,516 8,708 Non-controlling interests ,530 8,731 Basic earnings per ordinary share (in RMB) Diluted earnings per ordinary share(in RMB)

18 Consolidated Statement of Financial Position As at 30 September 2017 (Expressed in millions of Renminbi, unless otherwise stated) Assets 30 September 31 December Cash and deposits with the central bank 354, ,620 Deposits with banks and other financial institutions 75, ,630 Placements with banks and other financial institutions 83, ,305 Financial assets at fair value through profit or loss 21,965 7,834 Derivative financial assets 4,508 4,950 Financial assets held under resale agreements 86,695 67,000 Interests receivable 28,310 25,339 Loans and advances to customers 1,962,153 1,751,644 Finance lease receivables 55,621 55,560 Available-for-sale financial assets 409, ,131 Held-to-maturity investments 364, ,500 Debt securities classified as receivables 491, ,678 Fixed assets 14,483 14,228 Goodwill 1,281 1,281 Deferred tax assets 7,308 5,622 Other assets 69,646 35,720 Total assets 4,030,414 4,020,042 6

19 Consolidated Statement of Financial Position (continued) As at 30 September 2017 (Expressed in millions of Renminbi, unless otherwise stated) Liabilities and equity 30 September 31 December Liabilities Due to the central bank 218, ,000 Deposits from banks and other financial institutions 590, ,354 Placements from banks and other financial institutions 95,667 95,501 Derivative financial liabilities 5,924 4,368 Financial assets sold under repurchase agreements 37,971 41,195 Deposits from customers 2,227,244 2,120,887 Accrued staff costs 8,147 7,776 Taxes payable 5,567 4,501 Interests payable 37,855 33,576 Debts securities issued 485, ,500 Other liabilities 43,703 31,316 Total liabilities 3,756,098 3,768,974 7

20 Consolidated Statement of Financial Position (continued) As at 30 September 2017 (Expressed in millions of Renminbi, unless otherwise stated) Liabilities and equity (Continued) 30 September 31 December Equity Share capital 46,679 46,679 Other equity instrument 35,108 29,947 Capital reserve 33,365 33,365 Other comprehensive income (857) 509 Surplus reserve 17,951 17,951 General reserve 51,448 51,447 Retained earnings 89,964 70,557 Total equity attributable to equity shareholders of the Bank 273, ,455 Non-controlling interests Total equity 274, ,068 Total Liabilities and equity 4,030,414 4,020,042 Approved and authorized for issue by the board of directors on 30 October Tang Shuangning Zhang Jinliang Xie Rong Chairman of Board of Directors, President Executive Director Independent Non-executive Director Non-executive Director 8

21 Consolidated Cash Flow Statement For the nine months ended 30 September 2017 (Expressed in millions of Renminbi, unless otherwise stated) Cash flows from operating activities For the nine months ended 30 September Net profit 25,480 24,489 Adjustments for: Impairment losses on assets 14,241 16,113 Depreciation and amortisation 1,600 1,623 Unwinding of discount (681) (673) Dividends income (6) (5) Unrealised foreign exchange losses/(gains) 388 (248) Net losses on disposal of investment securities Net losses/(gains) on disposal of trading securities 17 (161) Revaluation losses/(gains) on financial instruments at fair value through profit or loss 2,000 (35) Interest expense on debt securities issued 15,358 9,069 Net losses on disposal of fixed assets 3 3 Income tax 7,498 7,725 65,994 57,930 Changes in operating assets: Net decrease/(increase) in deposits with the central bank, banks and other financial institutions 60,656 (40,912) Net decrease/(increase) in placements with banks and other financial institutions 45,457 (8,488) Net increase in loans and advances to customers (223,881) (250,993) Net (increase)/decrease in financial assets held under resale agreements (19,729) 91,367 Net increase in other operating assets (33,180) (40,616) (170,677) (249,642) 9

22 Consolidated Cash Flow Statement (continued) For the nine months ended 30 September 2017 (Expressed in millions of Renminbi, unless otherwise stated) Cash flows from operating activities (continued) For the nine months ended 30 September Changes in operating liabilities: Net (decrease)/increase in deposits from banks and other financial institutions (240,291) 155,113 Net increase in placements from banks and other financial institutions ,452 Net (decrease)/increase in financial assets sold under repurchase agreements (3,249) 10,397 Net increase in due to the central bank 31,500 72,160 Net increase in deposits from customers 106, ,048 Income tax paid (8,064) (10,098) Net increase in other operating liabilities 13,991 15,093 (99,590) 421,165 Net cash flows (used)/from operating activities (204,273) 229,453 Cash flows from investing activities Proceeds from disposal and redemption of investments 583, ,948 Proceeds from dividends income 6 5 Proceeds from disposal of fixed assets, intangible assets and other assets Payments on acquisition of investments (554,077) (748,691) Payments on acquisition of fixed assets, intangible assets and other assets (1,717) (1,986) Net cash flows from/(used) in investing activities 27,439 (369,702) 10

23 Consolidated Cash Flow Statement (continued) For the nine months ended 30 September 2017 (Expressed in millions of Renminbi, unless otherwise stated) Cash flows from financing activities For the nine months ended 30 September Net proceeds from issue of - 9,982 Net proceeds from issue of new debt securities 78, ,502 Interest paid on debt securities issued (14,904) (9,779) Dividends paid (6,026) (9,938) Net cash flows from financing activities 57, ,767 Effect of foreign exchange rate changes on cash and cash equivalents (971) 589 Net (decrease)/increase in cash and cash equivalents (120,616) 66,107 Cash and cash equivalents as at 1 January 241, ,964 Cash and cash equivalents as at 30 September 120, ,071 Interest received 115, ,182 Interest paid (excluding interest expense on debts securities issued) (54,254) (46,646) 11