2020 ANNUAL FINANCIAL AND SUSTAINABILITY REPORT

1 2020 ANNUAL FINANCIAL AND SUSTAINABILITY REPORTABOUT THE REPORT102-50, 102-51 102-52, 102-54 This ANNUAL FINANCIAL and SUSTAINABILITY REPORT provides our stakeholders with a balanced view of our ability to use our FINANCIAL resources and expertise to be a sustainable business that creates sustainable value. Covering the period January 1 to December 31, 2020, this REPORT contains material information relating to our FINANCIAL and non- FINANCIAL performance, operating context, prospects, risks, and governance to address the information requirements of our current and prospective investors. We also present information relevant to the way we create value for other key stakeholders, including our employees, customers, regulators, and society. This follows our latest REPORT released in 2020 covering the period January 1 to December 31, 2019.

2 This REPORT has been prepared in accordance with the GRI Standards: Core option. This has also been aligned with the disclosure requirements of the Bangko Sentral ng Pilipinas and the ASEAN Corporate Governance Scorecard. For the Materiality Disclosures Service, GRI Services reviewed that the GRI content index (pages 276-279) is clearly presented and the references for Disclosures 102-40 to 102-49 align with appropriate sections in the body of the THE COVERC ompleted in 1924, China Bank s original headquarters in Binondo, Manila represents more than just architectural history; it symbolizes the Bank s culture and heritage, how we have endured the test of time, and how we continue to be strong and resilient for future generations. The restoration of the seven-story Neo-classic Beaux Arts building is the centerpiece of China Bank s centennial celebration in 2020, and more importantly, our contribution to the revival of Binondo, the world s oldest Chinatown.

3 Recognized by the National Historical Commission of the Philippines with a historical marker and by the National Museum as an important cultural property, the fully restored China Bank Binondo Business Center stands proud as a shining example of architectural renewal in About China Bank Company Profile, Vision, Mission and Core Values4 Journey to 100 Years6 FINANCIAL Highlights8 Message to Our Stakeholders From Chairman Hans T. Sy, Vice Chairman Gilbert U. Dee, and President William C. Whang12 Together Against Covid-1916 The Year in Review18 Moving Forward20 SUSTAINABILITY Framework21 Sustainable Finance 22 SDG Contributions24 Stakeholder Engagement25 Materiality Process 26 China Bank as Enabler Standing by our Customers36 China Bank as Advocate Caring for our Customers40 China Bank as Employer Engaging and Developing our People46 China Bank as Steward Championing Good Corporate Governance70 China Bank as Partner Partnering with and for our Communities74 Our Leaders Board of Directors, Management Committee, and Senior Officers84 2020 Awards85 FINANCIAL Statements Capital Structure/Adequacy, Audit Committee REPORT , Statement of Management Responsibility for FINANCIAL Statements, Auditors REPORT , Management Discussion.

4 Notes to FINANCIAL Statements11 2 Branch Directory China Bank Branches China Bank Business Offices China Bank Savings Branches China Bank Savings Business Offices128 Subsidiaries and Affiliate131 Products and Services140 GRI Content Index144 Investor InformationCONTENTS1 ANNUAL FINANCIAL AND SUSTAINABILITY REPORT 2020 China Banking Corporation (China Bank) is one of the leading private universal banks in the Philippines. We offer a full range of quality FINANCIAL products and services to individuals and businesses across our vast network of branches nationwide and robust electronic banking channels. Through our subsidiaries China Bank Savings, China Bank Capital, China Bank Securities, China Bank Insurance Brokers, and affiliate Manulife China Bank Life Assurance, we also serve the retail banking, investment banking, and insurance needs of our diverse customers.

5 The China Bank stock (PSE: CHIB) is listed on the Philippine Stock Exchange (PSE). We are a member of the SM Group, one of the largest conglomerates in the BRANCHES 1,022 ATMs9,825 employees committed to build enduring relationships of trust with million customersWHO WE ARE102-1, 102-2, 102-3, 102-7, 102-8 HEADQUARTERS: China Bank Building, Paseo de Roxas corner Villar St., Makati City 1226 PhilippinesStrongly positioned for value creation billion net return on trillion assetsP105 billion capital23 CHINA BANKING CORPORATIONANNUAL FINANCIAL AND SUSTAINABILITY REPORT 2020 Our vision, mission, and the values passed on by China Bank s founders underpin our continuing story of sustainable growth, governance excellence, and enduring partnerships.

6 Over the span of a century, China Bank has been operating ethically and responsibly to drive economic growth, to uplift lives and livelihoods, and to help communities progress towards a sustainable 102-16 Drawing strength from our rich history, we will be the best, most admired, and innovative FINANCIAL services institution, partnering with our customers, employees, and shareholders in wealth and value We will be a leading provider of quality services consistently delivered to institutions, entrepreneurs, and individuals here and abroad, to meet their FINANCIAL needs and exceed their rising expectations. We will be a primary catalyst in the creation of wealth for our customers, driven by a desire to help them succeed, through a highly engaged team of competent and empowered professionals, guided by in-depth knowledge of their needs and supported by leading-edge technology.

7 We will maintain the highest ethical standards, sense of responsibility, and fairness with respect to our customers, employees, shareholders, and the communities we VALUES Integrity High Performance Standards Commitment to Quality Concern for People Efficiency Resourcefulness/Initiative Customer Service Focus23 CHINA BANKING CORPORATIONANNUAL FINANCIAL AND SUSTAINABILITY REPORT 2020 JOURNEY TO 100 YEARS194619701920 Dee C. Chuan leads a group of top Chinese Filipino businessmen to establish China Bank. The Bank opens for busness on August 16, 1920 on Rosario St., Binondo, Manila1924 Transfers its growing operation to its own building on Juan Luna corner Dasmari as Sts., Binondo, its head office for the next seven decades 1925 Opens branch in Xiamen, China 1927 Becomes one of the first companies to be listed on the Manila Stock Exchange 1929 Opens branch in Shanghai, China1931 The Great Depression adversely affects the Philippine banking sector.

8 Hit by runs, a rival bank goes under, but China Bank weathers the crisis unshaken1942 The Japanese military shuts downChina Bank, liquidates its assets, and jails its principal officers Albino SyCip and George Dee Se Kiat1948 Opens China Bank Cebu, its first local branch 1949 Closes Xiamen and Shanghai branches when the Communists took over China1954 Albino SyCip initiates the Liberty Wells project to provide potable water for millions of Filipinos 1955 Breaches the P100-million mark in assets, becoming the biggest local private commercial bank1960 Opens its first branch in Manila,Sto. Cristo Branch1965 Declares 100% stock dividend and increases its authorized capital stock from P10 million to P40 million 1969 Becomes the first bank in Southeast Asia to process deposits on-line, using the IBM 360 1945 China Bank reopens and while working towards its own recovery, lends to key industries for post-war reconstruction and long-term development1970 Still the biggest local private commercial bank, with P566 million in resources Opens Makati Branch in its new 15-storey building1920194545 CHINA BANKING CORPORATIONANNUAL FINANCIAL AND SUSTAINABILITY REPORT 20201996 Accesses the offshore capital markets for the first time by issuing US$50 million Floating Rate Certificate of Deposit (FRCD)1997 Issues U$75 million FRCD.

9 Becomes the best capitalized bank during the Asian FINANCIAL Crisis after a 2 for every 3 shares stock rights offering1998 Establishes China Bank Insurance Brokers, Inc. to provide direct insurance broking for retail and corporate customers, with a wide and comprehensive range of plans for life and non-life insurance2005 Launches its Internet banking facility, China Bank Online2007 Acquires Manila Bank and operates it as China Bank Savings; enters into a bancassurance joint venture with Manulife to form China Bank Manulife Life Assurance Corp. 2012 Acquires Pampanga-based Unity Bank2014 Acquires Plantersbank and merges it with China Bank Savings;raises P8 billionfrom its stockrights offering2015 Enters the credit card business and launches China Bank MASTERCARD, migrates to its new core banking system, Finacle Core Banking Solution (FCBS) from Infosys; incorporates its Investment Banking Group into a full-fledged investment house subsidiary, China Bank Capital2016 Establishes China Bank Securities to provide clients with stock brokerage, securities research, and analysis services 2017 Gets investment grade credit ratingof Baa2 from Moody s.

10 Raises P15 billion from stock rights offer2018 Signs US$150 million green bond agreement with International Finance Corporation (IFC) 2019 Raises P30 billion via maiden issue of fixed-rate retail bonds, one of the largest bond offerings for the year; begins restoration of original head officein Binondo2020 Marks centennial; hits P1 trillion inassets and P100 billion in capital19711995199620201973 Hits the P1-billion mark in assets; meets the Central Bank s requirement of a P100 million minimum paid-up capital for commercial banks 1975 Increases its Filipino ownership up to the 70% level required by the Central Bank, paving the way for China Bank s major branch expansion program1977 Hikes capitalization to P300 million from P100 million; becomes one of the first banks authorized by the Central Bank to engage in foreign currency-denominated transactions1982 Establishes CBC Properties and Computer Center, Inc.