In accordance with the State’s macro-economic policy and fully capitalizing on the opportunities with the State’s measures to increase domestic demand and stimulate economic growth, BOC accelerated its pace in loans and deposits expansion and achieved rapid growth. As at 31 March 2009, the Bank’s domestic RMB-denominated loans increased by RMB 569.4 billion or 24% compared with the end of 2008 and the market share increased by 0.62 percentage point. Domestic RMB-denominated customer deposits also increased by RMB 723.1 billion or 18% from the end of 2008. Market share of the Bank’s domestic RMB-denominated corporate deposits and savings deposits also increased by 0.79 and 0.14 percentage point respectively, compared with the end of 2008.

In the first quarter of 2009, net interest income amounted to RMB 36.838 billion, down 9.74% against the same period of 2008. Net interest margin was 2.14%, down by 63 basis points year-on-year, or 34 basis points from the fourth quarter of 2008.

As at 31 March 2009, the carrying value of US subprime mortgage related debt securities, US Alt-A mortgage-backed securities, Non-agency US mortgage-backed securities, debt securities issued by and mortgage-backed securities guaranteed by US Freddie Mac and Fannie Mae held by the Bank amounted to USD 13.145 billion, a decrease of USD 2.861 billion from the end of 2008. The aggregated amount of allowances for these securities was USD 4.838 billion, up by USD 0.378 billion. Impairment losses on investment securities for the quarter amounted to RMB 3.013 billion.