In 2006, the bank conformed to the financial guidelines and relevant policies of government, and executed the resolutions made by the Shareholders
Meeting and Board of Directors. We sticked to the guideline of optimizing business structure, intensifying risk management, deepening cooperation, and promoting stable development. Due to these efforts, great achievement has been made. Up to the end of December, 2006, the total assets of the Bank reached 32.409 billion yuan, with an increase of 7.285 billion yuan (increasing by 29%) than the last year. Deposit banlance reached 26.890 billion yuan, with an increase of 5.531 billion yuan (increasing by 25.90%), and the market share was 6.66%, with an increase by 0.55% than the last year, ranking the fourth in Jinan city. Loans banlace of the bank reached 21.741 billion yuan (including a bills discounting business of 5.775 billion yuan), increasing by 4.708 billion yuan, with an increase of 27.64%. The operatiing profit of the bank was 0.558 billion yuan, increasing by 6.711 million yuan, an increase of 13.68%, book profits was 0.25 billion yuan , increasing by 33.46 million yuan , with an increase of 15.47%. The capital adequacy ratio reached 10.4%, return on capital (based on book profits) was15.58%, ROA (based on book profits) was 0.87%, Provisioning Coverage Ratio 116.02%. Total tax of last year amounted to 231.72 million yuan, increased by 93.76 million yuan than 2005, a rise of 68%. Loans approved in the last year reached 23.3 billion yuan, 80% of it was applied by SME, which made great contributions to local economy. In 2006, the bank was awarded
the excellent unit in the work of ideological and political education at the provincial level
and awarded
bank with best competitiveness and brand fame
by the Shandong Wealth Forum,
excellent unit in the work of providing loans to small and medium sized enterprises among all financial organizations in China
, the only one bank which won this award in Jinan.

On behalf of the Jinan City Commercial Bank, I would like to express my sincere gratitude to our customers, and friends from all sections of the society who give us support and care, and my best regards to all of our staff. Looking forward to 2007, we have both opportunities and challenges. In the new year, based on the guiding ideology of
optimizing structure, enhancing quality, promoting transformation and developing scientifically
, we will organize the business operation and management of the bank. All the staffs of all levels in the bank will continue to keep the spirit of developing along with the times. With great enthusiasm and in firm confidence and with the courage to overcome all difficulties, senior management and our staff will try our best to complete all the annual business goals, provide better financial services to customers, and make greater contributions to the construction of local economy.

        President: Guo Tao