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BOC ANNOUNCES FIRST QUARTER RESULTS

Bank of China Limited (“BOC” or the “Bank”, HKEx stock code: 3988, SSE stock code: 601988) announced its performance in the first quarter of 2008 on April 28. The healthy momentum of growth continued in the first quarter. In accordance with International Financial Reporting Standards (IFRS), the net profit attributable to equity holders of BOC reached RMB 21.696 billion, increasing significantly by 85.15%.The annualized return on asset (“ROA”) increased to 1.50% from 1.10% of last year and the return on equity (“ROE”) rose to 20.17% from 14% of last year.

The significant improvement in profitability was mainly attributable to the rapid surge in net interest income and net fee income as well as lowered tax rate. During the reporting period, BOC continued to adjust the size and structure of its securities investment, prudently manage its foreign exchange investment portfolio, carefully control risks and optimize investment return. The Bank also increased its effort of attracting deposits to expand and solidify the stable low cost funding base. Due to the stable growth of interest-earning asset and average asset yield, the Bank’s net interest spread and net interest margin slightly expanded. For the first quarter of 2008, the Bank made RMB 40.815 billion in net interest income, an increase of 18.74% YoY.

BOC maintained the rapid growth momentum in the fee-based business. Driven by the fast growth in its traditional advantageous business of trade finance and efforts to enhance its product innovation as well as service quality, the Bank achieved remarkable growth in international settlement and clearing fees and in financing consultancy income. For the first quarter of 2008, the Group’s net fee and commission income grew by 82.93% YoY to RMB 9.454 billion, while domestic fee and commission income grew significantly by 115.58% YoY.

To cope with the macro control environment, BOC strictly followed the tightening monetary policy and maintained a controlled domestic RMB loan growth within regulatory limit. BOC fully utilized its competitive advantages of international network and diversified business platform to optimize business and income structure and further improve its capability of diversified operation of the Group. The group achieved continuous and robust growth in all business lines including corporate banking business, personal banking business and global markets business. The concerted development of commercial banking, investment banking, securities and insurance business also achieved outstanding results.

Overall risk management mechanism has been further improved during the reporting period. As a result, BOC’s asset quality kept improving as evidenced by further dual decrease in the Group’s identified impaired loans balance and impaired loans ratio. Credit cost maintain at a low level and impaired loan coverage ratio continued to increase steadily. BOC constructed the integrated management mode within domestic and overseas operation. With the establishment of American, European/African and Asia-Pacific syndicated loan centers, the Bank successfully consolidated its global resources, fully utilized its competitive advantage of concerted development of its international operations, and leveraged on its renowned brand name. The business volume, market position and margin of the Bank’s syndicate loan business all achieved significant increase.

As at March 31st 2008, Bank of China’s total assets grew by 5.83% to RMB 6,340.352 billion, compared to the end of last year. Total liabilities and total equity reached RMB 5,870.874 billion and RMB 439.891 billion, increased by 5.96% and 4.63% compared to that of the end of 2007 respectively. Gross loans and advances rose by 7.98% to RMB 3,078.168 billion, while total deposits increased 5.80% to RMB 4,655.306 billion.

Mr. Xiao Gang, Chairman of BOC, pointed out, “The Bank has an excellent openning of 2008: domestic business continued to expand steadily, rapid growths were achieved in overseas business, and operating and management efficiency has been further improved. While cheering for the outstanding results, we still need to remain cautious and prudence to observe the development in the macro economic environment, closely monitor the impacts resulting from the uncertainties of international financial markets, pay high attentions to the risks faced by the banking industries, and proactively manage the new business challenges from the highly competitive market.”

Mr. Li Lihui, President of BOC, said, “In 2008, BOC will actively face the changes in the operating environment, and continue to enhance its operation management ability. We will continue to improve our risk management system and strengthen internal control system. We will focus on steady implementation of IT blueprint and business management reorganization, fully utilize the Group’s synergies advantages and integration on domestic and overseas business. We are ready to serve the Olympic Games to the best of our ability, and ensure the service quality and operation safety.”

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