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universal integrated financial services

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									2012 Interim Results
     August 2012
 Cautionary Statements Regarding Forward-Looking
 Statements
To the extent any statements made in this presentation containing information that is not historical are
essentially forward-looking. These forward-looking statements include but are not limited to
projections, targets, estimates and business plans that the Company expects or anticipates will or
may occur in the future. These forward-looking statements are subject to known and unknown risks
and uncertainties that may be general or specific. Certain statements, such as those including the
words or phrases "potential", "estimates", "expects", "anticipates", "objective", "intends", "plans",
"believes", "will", "may", "should", and similar expressions or variations on such expressions may be
considered forward-looking statements.
Readers should be cautioned that a variety of factors, many of which may be beyond the Company's
control, affect the performance, operations and results of the Company, and could cause actual
results to differ materially from the expectations expressed in any of the Company's forward-looking
statements. These factors include, but are not limited to, exchange rate fluctuations, market shares,
competition, environmental risks, changes in legal, financial and regulatory frameworks, international
economic and financial market conditions and other risks and factors beyond our control. These and
other factors should be considered carefully and readers should not place undue reliance on the
Company's forward-looking statements. In addition, the Company undertakes no obligation to publicly
update or revise any forward-looking statement that is contained in this presentation as a result of
new information, future events or otherwise. None of the Company, or any of its employees or
affiliates is responsible for, or is making, any representations concerning the future performance of
the Company.
Agenda

  Topic                    Speaker           Position

  Overview                 Peter Ma          Group Chairman & CEO

                                             Executive Director &
  Operating Highlights     Alex Ren
                                             Group President

  Financial Analysis and                     Executive Director &
                           Jason Yao
  Embedded Value                             Group CFO

  Insurance Business       Yuansiong Lee     Group Chief Insurance
  Review                                     Business Officer

  Banking Business
                           Richard Jackson   President of Ping An Bank
  Review

  Investment Business                        Group Chief Investment
                           Timothy Chan      Officer
  Review



                                                                         2
Overview
Overview
In the first half of 2012, the global market was fraught with uncertainty due to the
European debt crisis, and domestic economic growth slowed as a result of the
weakening investment and exports stimulus, lower domestic demands, and rising
operating costs for enterprises, all of which put greater pressures on the financial
industry. Thus growth in insurance market slowed down, competition in banking
industry intensified, and volatility of capital market intensified. Faced with these
challenges, we adhered to our overall strategy and plans, managed our business
prudently and achieved above-market performance.

In the second half, we will actively respond to the challenges in line with our
established integrated financial strategy, continue improving structure and quality
of business, optimize cost structure, and develop new areas for profit growth to
ensure stable growth of our core business. Furthermore, we will take full advantage
of technologies to promote our integrated financial strategy; realize our goal of
“one customer, one account, multiple products, and one-stop services”; create a
new customer experience of “expertise makes life simple”; further strengthen the
Group’s synergies and core competitiveness; lay a solid foundation for value-added,
sustainable and above-market future growth; and accomplish yet more outstanding
performance in return for the lasting trust and support from our shareholders.



                                                                                  4
Operating Highlights
Operating Highlights of Our Three Core Businesses
  Insurance Business
    Written premiums of life insurance business amounted to RMB114.8 billion, with those from the more profitable
     individual life business increasing by 7.9% to RMB102.4 billion; number of sales agents increased 1.4% to
     nearly half million from the end of 2011
    Premium income of Ping An P&C amounted to RMB48.75 billion, representing an increase of 19.7%; combined
     ratio remained at a sound level of 93.1%
    Ping An Annuity maintained its leading position in the annuity industry

  Banking Business
    Break-through was achieved in the integration of SDB and the Original Ping An Bank; the two banks officially
     merged as one legal entity, and the new entity was renamed as Ping An Bank on July 27
    Banking business performance was steady, with profit contribution of RMB3.47 billion to the Group
    Total deposits amounted to RMB949.6 billion, of which retail deposits amounted to RMB176.6 billion, up11.6%
     and 16.0% from the end of 2011, respectively ; the number of credit cards in circulation reached 9.89 million

  Investment Business
    Investment portfolio of insurance funds were rebalanced and optimized. Net investment yield and total
     investment yield were 4.5% and 3.7%, respectively
    The personal wealth management business of Ping An Trust achieved stable growth, with the number of high net
     worth customers exceeding 15,000, up 21.3% from the end of 2011; the volume of assets held in trust amounted
     to RMB236.2 billion, up 20.4% from the end of last year
    Ping An Securities completed 22 corporate bond issuances as lead underwriter, increasing by 14; ranked third in
     terms of the number of stocks issued

                                                                                                                     6
Financial Highlights

   (In RMB million)                     1H2011      1H2012       Growth
  Total Income(PRC GAAP basis)          129,749      159,531       23.0%
  Net Profit                             12,998       17,527       34.8%
  Net Profit Attributable to Shareholders
  of the Parent Company
                                          12,757      13,959       9.4%

  EPS(in RMB)                              1.67         1.76       5.4%


                                     31/12/2011     30/06/2012   Growth
  Total Assets                          2,285,424    2,644,999     15.7%

  Total Equity                           171,342       193,681    13.0%

  Equity Attributable to Shareholders    130,867       146,762     12.1%
  of the Parent Company



                                                                           7
Strengthen Integrated Financial Services with Innovative
Technologies and Upgrade Customer Services
 Enhanced Back-office Centralization
    The Company optimized service procedures through one-stop service
     channels, including comprehensive service counters, remote service terminals
     and unified customer service hotline, as well as innovative technologies such
     as mobile phone locators and caller ID

 Strengthened E-operation Platform
  The e-integrated financial business platform has covered our insurance
                                                                                     One Customer
   sector, also facilitating customers to open multiple accounts in banking and      One Account
   securities, therefore providing a platform across insurance, banking and
   investment services                                                               Multiple Products
  As at June 30, 2012, more than 95% of agents of Ping An Life have adopted
   MIT, and over 5 million customers were insured through MIT. The MIT usage         One-stop
   rate for the automobile insurance business of Ping An P&C exceeded 30%            Services

Upgraded Services
  Ping An P&C became the first in the industry to commit to ―settlement within
   72 hours from reporting to receiving benefit payment for claims below
   RMB10,000‖, achieving a success rate of 94.5% with an average processing
   time of 1.7 days
  Ping An Life has committed to ―settlement within 72 hours for standard cases
   with full documentation‖, achieving a success rate of 99.7% with an average
   processing time of 2.1 days

                                                                                                8
Enhanced Depth and Width in Cross-selling

   New Business Acquired through Cross-selling

   (In RMB million)                                                           Amount         Business Contribution
   Property and casualty insurance
       Premium income                                                            7,264                      14.9%
   Group short-term insurance of Ping An Annuity
       Sales volume                                                              1,457                      41.6%
   Trust business
       Trust schemes                                                           28,473                       17.9%
   Banking business
       Retail deposits (increase of daily average size)(1)                       3,652                      13.5%
       Credit cards (in ten thousands)(2)                                            77                     41.5%



  Notes:(1) These retail deposits were through cross-selling by SDB and the Original Ping An Bank
        (2) These new credit cards were issued through cross-selling by SDB and the Original Ping An Bank




                                                                                                                     9
Financial Analysis and
   Embedded Value
Net Profit and Equity Attributable to Shareholders of
the Parent Company Increased Steadily
                                                                 (In RMB million)
        Net Profit Attributable to             Equity Attributable to
   Shareholders of the Parent Company   Shareholders of the Parent Company


                9.4%                                    12.1%    146,762
                        13,959
                                            130,867
       12,757




       1H2011           1H2012             31/12/2011           30/06/2012



                                                                                    11
Income Growth by Business Segment
                                                                                                                          (In RMB million)
      Insurance Business
                                                          Banking Business                                 Investment Business
      (Written Premiums)

                6.6%                                             276.8%                                                 2.8%
                           163,751                                             19,830
 153,552


                                                                                                             2,652                2,726


                                                                                                           Securities           Securities
                                                                                                            1,775                1,745

                                                        5,263

                                                                                                              Trust                Trust
                                                                                                               877                  981

   1H2011                   1H2012                     1H2011                  1H2012                       1H2011               1H2012
Notes: (1) Written premiums of insurance business mean all premiums received from the policies underwritten by the Company, which are prior to the
           significant insurance risk testing and unbundling of hybrid risk contracts
       (2) The incomes from banking and investment businesses are based on PRC GAAP
       (3) The investment business income came from securities and trust, excluding other businesses and elimination
       (4) The banking business income in 2011 included the investment income from SDB based on the equity method, RMB1,183 million; the figure
           in 2012 reflected the consolidation of SDB


                                                                                                                                         12
Net Profit Growth by Business Segment

                                                                                                                          (In RMB million)

    Insurance Business                                  Banking Business                                 Investment Business

                3.4%                                                180.8%                                                1.3%
                                                                                 6,731
      9,455                9,777

       P&C                   P&C                                                                             1,058                   1,072
       2,693                2,746


                                                                                                            Securities             Securities
        Life                 Life
                                                          2,397               Contribution                    715                    663
       6,762                7,031                                               to the
                                                                                Group
                                                                                3,467
                                                                                                              Trust                   Trust
                                                                                                               343                     409
      1H2011               1H2012                         1H2011                1H2012                        1H2011                1H2012
Notes: (1) Net profit from insurance pillar covered life insurance business and property and casualty insurance business
       (2) Net profit from banking business in 2011 included the investment income from SDB based on the equity method, RMB1,183 million; the figure
           in 2012 reflected the consolidation of SDB
       (3) Net profit from investment business came from securities and trust, excluding other businesses and elimination


                                                                                                                                          13
Solvency Margin and Capital Adequacy Ratio

                                                         31/12/2011                               30/06/2012



 Group (Total)                                                 166.7%                                     176.7%

 Ping An Life                                                  156.1%                                     167.3%

 Ping An Property & Casualty                                   166.1%                                     164.5%
                         (1)
 Ping An Bank                                                   11.51%                                     11.40%




  Note:(1) On July 27, 2012, SDB formally changed its name to ―Ping An Bank Co., Ltd.‖, ―Ping An Bank‖ for short




                                                                                                                    14
Composition of Embedded Value


  (In RMB million)                                           137,977
                                                                                                                   259,005
                                                                                        (23,547)

                                                                                                               Life Insurance
       152,826                                                                                                    156,198
   Life Insurance                  (8,251)
        50,019


 Other businesses                                                                                              Other Businesses
       102,807                                                                                                     102,807

  Adjusted value of net    Value of in-force insurance   Value of in-force insurance Cost of solvency margin     Embedded value at
  assets at 30/06/2012     business written prior to     business written since                                  30/06/2012
                           06/1999                       06/1999



 Notes: (1) Figures may not match totals due to rounding
        (2) Life insurance business includes business conducted through Ping An Life, Ping An Annuity and Ping An Health
        (3) Above risk discount rates for the value of business in-force were earned rate/11.0%


                                                                                                                                     15
Growth of Embedded Value

                            The value of business in-force                    Adjusted value of net assets


                     (In RMB million)                        9.9%                         259,005

                               235,627
                                                                                          106,180
                                                            10.4%
                               96,181



                                                             9.6%

                              139,446                                                     152,826




                            31/12/2011                                                   30/06/2012

 Notes: (1) Figures may not match totals due to rounding
        (2) Above risk discount rates for the value of business in-force were earned rate/11.0%


                                                                                                             16
Growth of NBEV Margin


                                NBEV margin increased from 21.6%
                                   in 1H2011 to 27.3% in 1H2012

 (In RMB million)
                                                                             FYP Used to Calculate Value of New
              New Business Value                                                         Business
                            8.6%                                                         46,409          27.8%
             10,019

                433                      9,160                                            12,490
                                                                                                                   33,502
                                          403                                             5,954
                367                                                                                                 6,060

                                          394                                                                       6,404

                                                                                          27,965
               9,219                                                                                               21,038
                                         8,363


                                                                                        1H2011                     1H2012
             1H2011                   1H2012
                                         Individual Life              Group Life                   Bancassurance
 Note: Above new business value, with cost of solvency margin deducted and risk discount rate at 11.0%


                                                                                                                            17
Insurance Business Review
Insurance Business Highlights

   Life Insurance
      Written premiums of life insurance business amounted to RMB 114.8 billion, with those
       from the more profitable individual life business increasing by 7.9% to RMB102.4 billion
      The number of sales agents of individual life insurance business increased by 1.4% to
       nearly half million


      Property and Casualty Insurance
     Premium income of Ping An P&C amounted to RMB48.75 billion, representing an increase
      of 19.7%; Of this, premium income from cross-selling and telephone marketing increased by
      31.7%, with contribution of these channels to the business increasing to 41.9%
     The quality of P&C business remained sound with a combined ratio at 93.1%


      Corporate Annuity
     Ping An Annuity’s three major performance indicators - annuity payments received, assets
      entrusted, and assets under investment management – all maintained leading positions in
      the annuity industry
 Notes: (1) Life insurance business includes business conducted through Ping An Life, Ping An Annuity and Ping An Health
        (2) Property and casualty insurance includes business conducted through Ping An P&C and Ping An Hong Kong


                                                                                                                           19
 Life Insurance Business: Stable Growth and
 Business Quality
             Written Premiums/Premium Income                                                    Policy Persistency Ratio
        (In RMB million)
                                                                                                      13-month         25-month
                                2.0%                                                95%                          94.2%                93.7%
                                           114,837                                              93.1%
                112,630
Written                                                                             90%
Premiums                                                                                                                              91.6%
                                                                                                                    89.5%
                                                                                    85%         87.0%


Including:                      5.0%        78,898
Premium         75,158                                                              80%
Income


                                                                                    75%
                1H2011                      1H2012                                              2010                2011              1H2012
      Notes: (1) Written premiums mean all premiums received from the policies underwritten by the Company, which are prior to the
                significant insurance risk testing and unbundling of hybrid risk contracts
             (2) Premium income means premiums after the significant insurance risk testing and unbundling of hybrid risk contracts
             (3) Life insurance business includes business conducted through Ping An Life, Ping An Annuity and Ping An Health


                                                                                                                                        20
   Product Structure of Life Business
                                                                                                                         (In RMB million)

                                 1H2011                                                                  1H2012

                                                       Participating                                                              Participating
              Universal life                             51.9%                          Universal life                              52.0%
                 33.8%                                                                     32.8%




        Annuity 0.9%                                                        Annuity 0.8%
                                                                      Investment-linked
Investment-linked 2.2%                                                      1.5%
                                                                             Traditional life 3.7%
   Traditional life 3.0%
                                                Accident and short-                                                          Accident and
                    Long-term health             term health 3.6%                   Long-term health                          short-term
                         4.6%                                                            5.2%                                health 4.0%
                               100% = 112,630                                                            100% = 114,837

        Notes: (1) The above premiums mean written premiums
               (2) Life insurance business includes business conducted through Ping An Life, Ping An Annuity and Ping An Health



                                                                                                                                                  21
Individual Life Written Premiums

       (In RMB million)                               1H2011                         1H2012                         Growth
 Individual life

   First-year regular premiums                              22,963                          21,822                        5.0%

   First-year single premiums                                 5,894                              429                      92.7%

   Short-term accident and health premiums                       998                          1,040                       4.2%

 Total new business                                         29,855                          23,291                        22.0%

 Renewal business                                           65,005                          79,076                        21.6%

 Total individual life                                      94,860                        102,367                         7.9%




Notes: (1) Above premiums are written premiums
       (2) Life insurance business includes business conducted through Ping An Life, Ping An Annuity and Ping An Health


                                                                                                                                  22
Group Insurance Written Premiums Increased and
Bancassurance Decreased
   (In RMB million)                                     1H2011                        1H2012                       Growth

 Bancassurance
  First-year regular premiums                                   735                        1,327                           80.5%
  First-year single premiums                                 11,743                        4,716                           59.8%
  Short-term accident and health premiums                           1                            1                            —
 Total new business                                         12,479                         6,044                           51.6%
 Renewal business                                               980                        1,554                           58.6%
 Total Bancassurance                                        13,459                         7,598                           43.5%

 Group Insurance
  First-year regular premiums                                      77                         123                          59.7%
  First-year single premiums                                   1,196                       1,155                           3.4%
  Short-term accident and health premiums                      3,003                       3,514                           17.0%
 Total new business                                            4,276                       4,792                           12.1%
 Renewal business                                                  35                          80                      128.6%
 Total Group Insurance                                          4,311                      4,872                           13.0%
 Notes: (1) Above premiums are written premiums
        (2) Life insurance business includes business conducted through Ping An Life, Ping An Annuity and Ping An Health


                                                                                                                                   23
Property and Casualty: Steady Growth in Premiums
with Sound Quality of Business
               Premium Income                                                             Combined Ratio
   (In RMB million)
                                   48,914                                                           0.2 pp
                      19.5%
         40,922                                                                         92.9%                    93.1%




         1H2011                                                                       1H2011                    1H2012
                                   1H2012
            Auto    Non-Auto      Accident and Health                                   Expense Ratio         Loss Ratio


 Note: Property and casualty insurance business includes business conducted through Ping An P&C and Ping An Hong Kong



                                                                                                                           24
Continuous Growth in Corporate Annuity Business

                                                         (In RMB million)

                                       Assets under Investment
         Assets Entrusted
                                            Management

                                                          61,649
                  35.8%                          14.3%
                            50,794
                                        53,930


       37,400




     31/12/2011           30/06/2012   31/12/2011        30/06/2012



                                                                            25
Banking Business Review
Banking Business Highlights

      Smooth Integration of the Two Banks
     Break-through was achieved in the integration of SDB and the Original Ping An Bank; the
      two banks officially merged as one legal entity
     SDB was formally renamed as Ping An Bank(1) on July 27

      Profit Contribution
     In the first half of 2012, Ping An Bank achieved a profit of RMB6.87 billion and contributed
      RMB3.47 billion to the Group

     Business Scale and Asset Quality
     Total deposits amounted to RMB949.6 billion, of which retail deposits amounted to
      RMB176.6 billion, up 11.6% and 16.0% from the end of 2011, respectively
     Trade finance facilities balance amounted to RMB277.5 billion, representing an increase of
      18.9% from the end of 2011; the number of the credit cards in circulation reached 9.89
      million
     The non-performing loan ratio was 0.73%; the capital adequacy ratio stood at 11.40%
  Note:(1) On July 27, 2012, SDB formally changed its name to ―Ping An Bank Co., Ltd.‖, ―Ping An Bank‖ for short



                                                                                                                   27
Steady Growth in Deposits and Loans
                                                           (In RMB million)

          Total Deposits                     Total Loans

                 11.6%    949,578                  10.0%
                                                             682,906
     850,845
                                       620,642




    31/12/2011           30/06/2012   31/12/2011           30/06/2012




                                                                              28
Key Ratios of Ping An Bank(1)

                                                                  1H2011                                       1H2012

     Net Interest Spread                                             2.50%                                         2.22%
     Net Interest Margin                                             2.63%                                         2.42%
     Cost/Income Ratio                                             36.30%                                      38.13%
     Return on Average Total Assets                                  1.20%                                         0.98%

                                                               31/12/2011                                   30/06/2012

     Non-performing Loan Ratio                                        0.53%                                         0.73%
     Provision Coverage Ratio                                     320.66%                                          237.96%
     Capital Adequacy Ratio                                         11.51%                                          11.40%
     Core Capital Adequacy Ratio                                      8.46%                                         8.44%
  Note:(1) On July 27, 2012, SDB formally changed its name to ―Ping An Bank Co., Ltd.‖, ―Ping An Bank‖ for short



                                                                                                                             29
Investment Business Review
Investment Business Highlights
     Investment Management
  Ping An Asset Management maintained the flexibility of equity assets and optimized asset
   allocation with prudent steps to increase high-interest fixed income investments. Net
   investment yield and total investment yield for insurance funds were 4.5% and 3.7%,
   respectively
  The business remains innovative and Ping An Asset Management (Hong Kong) has launched
   three HKEx-listed ETF funds, strengthening the influence of Ping An in overseas market

     Trust
     The personal wealth management business of Ping An Trust achieved stable growth, with the
      number of high net worth customers exceeding 15,000, up 21.3% from the end of 2011
     The volume of assets held in trust amounted to RMB236.2 billion, up 20.4% from the end of
      2011

     Securities
     Ping An Securities successfully sponsored 11 IPOs and two refinancing projects as lead
      underwriter, ranked third and fourth in terms of the number of deals and underwriting revenues
      for IPO transactions, respectively
     While bond market stepping up the pace of issuance, our fixed income business completed 22
      corporate bond issuances as lead underwriter, increasing by 14

                                                                                                       31
Net Investment Yield and Total Investment Yield
                                                                                                                     (In RMB million)
           Net Investment Income/Yield                                                Total Investment Income/Yield

                                            20,944
                             29.1%                                                                       12.2%

               16,225                                                                      15,836                      13,902




                Yield                        Yield
                4.3%                         4.5%                                           Yield                        Yield
                                                                                            4.2%                         3.7%




                                                                                                  0.8%



               1H2011                       1H2012                                         1H2011                       1H2012

Notes: (1)The data above is based on insurance fund investment portfolio
       (2) As a result of the volatile domestic stock market, net realized and unrealized gains decreased to a loss of RMB3,212 million in the first
           half of 2012 from a gain of RMB551 million in the same period 2011, and impairment losses on the available-for-sale equity investments
           increased greatly to RMB3,912 million in the first half of 2012 from RMB942 million in the same period 2011



                                                                                                                                             32
Optimize Portfolio Allocation and Steadily Increase
Investment in High-interest Fixed Income Assets
    (In RMB million)                           31/12/2011                          30/06/2012          Change
               (1)
   Portfolio

   Fixed Maturity Investments                              81.0%                           78.0%          3.0%
                          (2)
      Term Deposits                                        19.6%                           22.9%          3.3%
                                  (2)
      Bond Investments                                     58.2%                           52.9%          5.3%
                                                     (2)
      Other Fixed Maturity Investments                     3.2%                            2.2%           1.0%
                                (2)
   Equity Investments                                      11.5%                           12.7%          1.2%
   Infrastructure Investments                              1.0%                            0.9%           0.1%

   Cash, Cash Equivalent and Others                        6.5%                            8.4%           1.9%
                                                  100% =867,301                        100% =986,047


 Notes: (1) The above investment portfolio is our insurance fund investment portfolio
        (2) The data above exclude items that are classified as cash and cash equivalent


                                                                                                                 33
Thank you!

								
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