Since 2015, China has witnessed a downturn in macro economy and a faster pace in

marketization of interest rates, while the banking sector has been subject to a general

slowdown in earnings growth. Despite such a complex and changing market

environment, Ping An Bank (the "Bank"), through making adjustments in response to the

general trend and overcoming difficulties, established a series of transformation

approaches to develop the industry funds, set up the new Industry Business Units, press

ahead with structural adjustment and expedite business innovation. As a result, viewing

from the various business indicators for the first three quarters, the Bank generated

noticeable results from its transformation measures and recorded an overall satisfactory

financial performance.

1

Overview

Contents

I. Results Overview

• (I) Business Indicators Summary

• 1.Earnings and Scale

• 2.Quality and Efficiency

• 3.Income Statement

• 4.Regulatory Indicators

• (II) Performance Highlights

II. Business Outlook

2

1. Earnings and Scale

3

(in RMB 100 million) Jan-Sep 2015 Jan-Sep 2014 YOY

Change Change %

Net Profit 177.40 156.94 20.46 13.0%

30 Sep 2015 31 Dec 2014 YTD

Change Change %

Total Assets 25,991 21,865 4,126 18.9%

Total Loans 12,656 10,673 1,983 18.6%

Including: Loans and Advances 12,093 10,247 1,846 18.0%

Including: Corporate Loans 7,795 6,397 1,398 21.9%

Retail Loans 2,933 2,821 112 4.0%

Credit Cards 1,365 1,029 336 32.7%

Total Liabilities 24,420 20,556 3,864 18.8%

Total Deposits 21,567 17,638 3,929 22.3%

Including: General Deposits 17,233 15,332 1,901 12.4%

Including: Corporate Deposits 14,605 12,804 1,801 14.1%

Retail Deposits 2,628 2,528 100 4.0%

Shareholders’ Equity 1,571 1,309 262 20.0%

Note: According to “Circular of PBOC on Adjusting the Scope of Deposit and Loan Statistics in Financial Institutions” (YinFa [2015] No.14),

starting from 2015, the deposits placed by non-deposit financial institutions at financial institutions are accounted for as “Total Deposits”,

whereas the loans extended by deposit financial institutions to non-deposit financial institutions are accounted for as “Total Loans”.

2.Quality and Efficiency

4

(in RMB 100 million) 30 Sep 2015 31 Dec 2014 YTD

Asset Quality

NPL Balance 161.99 105.01 54.26%

NPL Ratio 1.34% 1.02% +0.32pp

Provision to Loan Ratio 2.24% 2.06% +0.18pp

Provision Coverage Ratio 166.97% 200.90% - 33.93pps

Jan-Sep 2015 Jan-Sep 2014 YOY

Return on Assets

Annualized Average Return on Total Assets 0.99% 1.04% -0.05pp

Annualized Weighted Average Return on Equity 16.06% 17.20% -1.14pps

Net Interest Spread 2.59% 2.36% +0.23pp

Net Interest Margin 2.73% 2.53% +0.20pp

Cost/Income Ratio (Excluding Business Tax) 32.14% 36.70% -4.56pps

3. Income Statement

(in RMB 100 million)

Jan-Sep 2015 YOY

Amount % of Total Change Change % Change in

% of Total

Operating Income 711.52 100% 165.01 30.19%

Net Interest Income 482.06 67.75% 97.88 25.48% -2.55%

Net Non-interest Income 229.46 32.25% 67.13 41.35% +2.55%

Including: Net Fee Income 202.23 28.42% 74.26 58.03% +5.01%

Expenses 279.12 37.33 15.44%

Operating Fees 228.66 32.14% 28.10 14.01% -4.56%

Profit Before Provisions 432.40 127.68 41.90%

Asset Impairment Loss 199.35 102.34 105.49%

Net Profit 177.40 20.46 13.04%

EPS (RMB) 1.27 0.13 11.40%

5

4. Regulatory Indicators

(Unit: %) Benchmark 30 Sep 2015 31 Dec 2014

Liquidity Indicators

Liquidity Ratio (RMB and Foreign Currency) ≥25 66.98 53.21

Liquidity Coverage Ratio ≥70 125.27 80.25

Capital Adequacy

Capital Adequacy Ratio ≥10.5 11.08 10.86

Tier 1 Capital Adequacy Ratio ≥8.5 9.14 8.64

Core Tier 1 Capital Adequacy Ratio ≥7.5 9.14 8.64

6

Contents

I. Results Overview

• (I) Business Indicators Summary

• (II) Performance Highlights

• 1. Stable Growth in Deposits Scale

• 2. Continued Optimization of Business Structure

• 3. Steady Improvement in Profitability

• 4. Acceleration in Transformation and Innovation

• 5. Quickened Development in Iudustry BUs

• 6. Enhancement in Risk Control

II. Business Outlook

7

1. Stable Growth in Deposits Scale

•Favorable growth momentum: Further to standing above the RMB 2 trillion level as at the end of June,Total Deposits continued to grow in the 3rd quarter to reach RMB 2,156.7 bn as at the end of September, up RMB 392.9 bn YTD and up RMB 69.4 bn from the end of June 2015.

• Industry-leading growth rate: As at the end of September, Total Deposits of the Bank grew 22% YTD, of which, the General Deposits grew 12% YTD, representing industry-leading growth rates.

Rapid Growth in Total Deposits

•As at the end of September 2015, Corporate Deposits of the Bank amounted to RMB 1,460.5 bn, up 14% YTD. Retail Deposits were RMB 262.8 bn, up 4% YTD. Deposits from non-bank FIs grew 89% YTD.

Significant Contribution from Corporate Deposits and Deposits from Non-bank FIs

8

Note: According to “Circular of PBOC on Adjusting the Scope of

Deposit and Loan Statistics in Financial Institutions” (YinFa [2015]

No.14), starting from 2015, funds from non-deposit-taking financial

institutions to deposit-taking financial institutions shall be included into

“Total Deposits”. Deposits in the former statistical scope shall be

renamed to “General Deposits” in the Bank’s financial reports.

17,638

21,567

2014/12/31 2015/9/30

General Deposits*(In RMB 100 mn)

+22%

2,528 2,628

12,804 14,605

2014/12/31 2015/9/30

Corporate Deposits Retail Deposits

15,332 17,233 +12%

Total Deposits*(In RMB 100 mn)

10,247

12,093

2014/12/31 2015/9/30

2. Continued Optimization of Business Structure

9

• Stepping up lending efforts: As at the end of September, Loans and Advances amounted to RMB 1,209.3 bn, up 18% YTD, which was a leading growth rate among the peers.

• Maintaining a stable pricing level : The Bank increased the proportion of high-yield loans, i.e. small business, auto finance and Xin Yi Dai. As such, on the back of PBOC’s successive rate cuts, average interest rate for retail loans still grew 0.71 pp YOY.

Optimized Asset Structure

• Rapid grwoth in deposits from non-bank Fls: The Bank has effectively broadened the channel of fund sources and reduced the cost of liabilities as a whole.

• Monitoring the growth of foreign currency and wealth management deposits: The Bank has adjusted its management policy with a view to keeping the growth of the high-cost deposits of forengn currencies and wealth management products under control。

• Reduced cost rate of interest-bearing liabilities:The cost rate of interest-bearing liabilities was 3.02% for the first three quarters, down 39 bps YOY.

Optimized Liability Structure

• The Bank strengthened capital management and proactively developed intermediary business to promote its transforamtion toward "Light Asset and High Efficiency".

• Non-interest income grew 41% YOY to RMB 22.9 bn in the report period, while the percentage of operating income grew 2.55 pps YOY to 32.25%. Benefiting from the rapid development of the businesses such as investment banking, custody, wealth management and settlement, the Bank recorded net fee income of RMB 20.2 bn, up 58% YOY.

Optimized Business Structure

Balance of Loans and Advances

(In RMB 100 mn)

+18%

162

229

30%

32%

15%

25%

35%

0

120

240

360

Jan-Sep 2014 Jan-Sep 2015

Non-interest Income and Percentage

(In RMB 100 mn)

10

3. Steady Improvement in Profitability

•Under the impact of marketization of interest rates, the banking sector has been subject to a general narrowed interest spreads as well as deteriorated profitability since 2015. The Bank’s interest spreads improved steadily on optimizing business structure and reinforcing pricing management.

•In the first three quarters, NIS was 2.59%, up by 23 bps YTD and 2 bps from end of 1H 2015; NIM was 2.73%, up by 20 bps YTD and 2 bps from end of 1H 2015.

Steadily Improved Interest Spreads

•By promoting standardized cost management , bank-wide input efficiency continued to optimize.

•In the first three quarters, cost-to-income ratio was 32.14%, down by 4.56 pps YOY.

Significantly Improved Input-output Efficiency

2.53% 2.57%

2.71% 2.73%

Jan-Sep 2014

2014 1H 2015 Jan-Sep 2015

Net Interest

Spread

Net Interest

Margin

Cost-to-Income

Ratio

41.92%

40.95%

39.99%

39.41%

40.77%

36.33%

32.14%

2009 2010 2011 2012 2013 2014 Jan-Sep 2015

2.36% 2.40%

2.57% 2.59%

Jan-Sep 2014

2014 1H 2015 Jan-Sep 2015

• Industry Funds business represents a strategic move of the Bank to address economic downturn and quicken business transformation, which has effectively driven the growth of the Bank in terms of scale and income.

• The Bank has accelerated the pace in its industry funds business with such business activties having been gradully rolled out in the emerging fields such as private placements of listed companies, M&As, management of government debts, mixed ownership reform of SOEs directly controlled by the central government, whereby the Bank has actively provided support to real economy and fully involved itself in the construction work in key areas of national economy and the people's livelihood. Leveraging its Industry Funds business, the Bank won a number of large-scale key customer which significantly improved the structure of its customer base.

Industry Funds

• Investment banking business: The Bank achieved satisfactory results in this respect through accelerating transformation and upggrading and agresssively boosting the businesses including industry funds, assets securitization and bonds financing.

• Offshore finance business: The Bank has established the four major systems, namely the offshore investment and finance, offshore interbank finance, offshore finance for domestic resident enterprises and offshore trade finance, which has driven the rapid development of its offshore finance business.

• Free Trade Area business: Grasping the opportunities arising from reform of RMB exchange rate, liberalization of capital account and reform in free trade area, the Bank put much efforts in marketing its forex derivatives and cross-border investment and finance business and cultivated on-line business platforms to enhance income from its forex business.

Business Innovation

• Certificate of Deposit qualification: The Bank successfully issued first tranche of CDs to enterprises and individuals, which brought the Bank with addtional source of fund.

• Access to Cross-border Interbank Payment System (CIPS): The Bank has obtained the qualification of direct participant to CIPS (as one of the first-batch participants), which would facilitate the development of its cross-border RMB business.

Business Qualifications

• Quickened promotion of Orange-e-Platform: This platform has 740,000 registered customers, including about 400,000 corporate users, with significant enhancement in customer activeness.

• Initial success in internet of things in finance: The Bank launched its internet of things in finance to reconstruct the credit environment for movable property financing and provide customized finance products and services.

Platform Innovation

11

4. Acceleration in Transformation and Innovation

5.Quickened Development in Iudustry BUs

12

•Energy BU: This BU provides services to over 400 customers, including large and medium state-owned and private enterprises.

•Real estate BU: This BU provides services to 90% of the Top 20 Real Estate Enterprises, with favorable performance having been witnessed in its innovative fund business mode and crowd-funding scheme for real estate projects.

•As at the end of September 2015, the six established industry BUs had generated RMB 239.2 bn in deposits, loan balance of RMB 257.5 bn and operating income of RMB 9.5 bn.

Prominent Contribution from Existing Industry BUs

• In 3Q 2015, the Bank has started to prepare for setting up two new BUs: the Electronic Information BU and Equipment Manufacturing BU, both of which representing the first of its kind in the banking sector.

Active Tapping

Emerging Industries

The Bank set up new industry BUs targeting sunrise industries to cope with the economic

downturn and deepen its specialized business.

6. Enhancement in Risk Control

13

•In the first three quarters of 2015, total amount of NPLs recovered was RMB 4.5 bn, including RMB 4.3 bn of credit assets (loan principals). Among the loan principals recovered, written off loans and outstanding NPLs amounted to RMB 2.2 bn and RMB 2.1 bn respectively; 94.18% of the recovered amount was collected in cash and the remaining was collected by expiating debts in kind and other methods.

Prominent Results of

Loan Recovery

Work

•The Bank took initiative to increase its provisioning efforts and new provisions grew by RMB 10.2 bn or 105% YOY to RMB 19.9 bn in the first three quarters.

Stronger Ability to

Resist Risk

Risks continued to spread in banking sector amid the macroeconomic downturn. The Bank paid close attention to mitigate

risks and took initiative to increase provisioning, the asset quality was gradually stabilized.

Contents

I. Results Overview

II. Business Outlook

14

Business Outlook

15

Proactively capture policy opportunities

Continue with optimization of business structure

Firmly promote strategic transformation

Accelerate the marketing of innovative business

Step up efforts in loan recovery and risk mitigation

Make scientific planning for a good start of 2016