Date : 19 September 2016
I was going through a pictures folder of mine and saw this pic I took in ocean mall a few days ago.
This is a picture of the world’s largest bank.
The name of the bank is Industrial and Commercial Bank of China Ltd. (ICBC; simplified Chinese: 中国工商银行; traditional Chinese: 中國工商銀行; pinyin: Zhōngguó Gōngshāng Yínháng, more commonly just 工行 Gōngháng) is a Chinese multinational banking company, and the largest bank in the world by total assets and by market capitalization. It is one of China's 'Big Four' state-owned commercial banks (the other three being the Bank of China, Agricultural Bank of China, and China Construction Bank). It was founded as a limited company on January 1, 1984. As of June 2015, it had assets worth US$3.616 trillion. Generally considered the largest bank in the world by assets; it is the first Chinese bank to achieve such a feat. It ranks number 1 in The Banker's Top 1000 World Banks ranking, and first on the Forbes Global 2000 list of the world's biggest public companies.
Industrial and Commercial Bank of China was established on 1 January 1984. On 28 October 2005, the Bank was wholly restructured to a joint-stock limited company. On 27 October 2006, the Bank was successfully listed on both Shanghai Stock Exchange and The Stock Exchange of Hong Kong Limited. Through its continuous endeavor and stable development, the Bank has developed into the top large listed bank in the world, possessing an excellent customer base, a diversified business structure, strong innovation capabilities and market competitiveness and providing comprehensive financial products and services to 5,320 thousand corporate customers and 496 million personal customers. The Bank continued to promote reform, innovation and operation transformation. The Bank’s assets and liabilities business kept stable profitability during the structural adjustment. Retail banking, asset management and investment banking became important engines driving the profit growth, and the development of internet-based finance with leading edge gave impetus to the fundamental reform on operation and management models and service methods. The pattern of internationalized and diversified operation was further improved, covering 42 countries and regions, and overseas operations and comprehensive subsidiaries of fund, insurance and leasing contributed more to the Bank’s profit-making. In 2015, the Bank was named the “Best Emerging Markets Bank” by Euromoney, and ranked 1st place among the Top 1000 World Banks by the Banker and the Global 2000 listed by the US magazine Forbes for the third consecutive year.
Financial
Highlights
As at
the end of 2015, total assets of the Bank amounted to RMB22,209,780
million, RMB1,599,827 million or 7.8% higher than that at the end of
the previous year. Total liabilities of the Bank amounted to
RMB20,409,261 million, RMB1,336,612 million or 7.0% higher than that
at the end of the previous year.
In 2015, the Bank realized a net profit of RMB277,720 million, up 0.5%. Return on average total assets stood at 1.30%, and return on weighted average equity was 17.1%. Core tier 1 capital adequacy ratio stood at 12.87%, tier 1 capital adequacy ratio 13.48%, and capital adequacy ratio 15.22%. Operating income amounted to RMB697,647 million, recording an increase of 5.9%. Specifically, net interest income was RMB507,867 million, growing by 2.9 %. Non-interest income reached RMB189,780 million, rising by 14.8%. Operating expenses amounted to RMB338,112 million, recording an increase of 13%, and cost-to-income ratio dropped by 1.26 percentage points to 25.49%.
Corporate
Banking
At the
end of 2015, the Bank’s corporate customers increased by 227
thousand over the end of the previous year to 5,321 thousand.
According to statistics from PBC, the Bank had the largest balance of
both corporate loans and corporate deposits in the banking industry.
Corporate
Deposits and Loans
At the end of 2015, the balance of corporate
loans reached RMB7,869,552 million, representing an increase of
RMB256,960 million or 3.4% over the end of the previous year. The
balance of corporate deposits hit RMB8,437,014
million,
representing an increase of RMB399,881 million or 5.0%.
Small and Medium-Sized Enterprise
Business
The Bank increased the number of micro and small
enterprise banking centers to 154, thus boosting the growth and
structural optimization of micro and small enterprise loans and also
raising the business processing efficiency. Proactively utilizing
Internet and big data technologies, the Bank promoted online
financing products for micro and small enterprises including “Online
Revolving Loan”, “Corporate Easy Loan”, “eLoan”, which
enabled the financing for micro and small enterprises to be smaller
in value but simple in procedures. At the end of December 2015, the
balance of loans to micro and small enterprises stood at RMB1,883,208
million,representing an increase of 9.4% over the end of last year.
The growth rate was faster than the average growth rate of domestic
loans.
Institutional
Banking
The Bank improved people’s livelihood related
financial services and actively blazed new trails into interbank
cooperation. The Bank kept on leading the market in the number of
third-party custody customers and the amount of funds under custody
for six straight years. The Bank ranked the first in the banking
industry in terms of the amount of central finance and government
business cards under agency service, the amount of payments from
pooled social security funds, as well as the number of local
government bonds for which it was the lead underwriter. The Bank was
designated as one of the first banks to provide stock option
settlement service and to work on the customs-treasury networking
project. It was the first to launch the bond and foreign exchange
agency clearing business system and the trans-regional traffic
violation fines payment system, and also the first to try the
national tax
funds monitoring system and cover the entire
operating process on a pilot basis.
Settlement
and Cash Management
The Bank innovatively launched new products
such as “ICBC e Bill Payment” and cross-border cash pooling. The
global cash management business was extended to over 70 countries and
regions, and boasted more than 20 products including global account
management, collection and payment management and liquidity
management. At the end of 2015, the Bank maintained 6,397 thousand
corporate settlement accounts, representing an increase of 4.4% over
the end of the previous year, and the volume of settlements reached
RMB2,264 trillion, up 19.3% over the previous year. The Bank
maintained its leading position in the business size. The Bank’s
cash management customers grew by 12.9% to 1,270 thousand and global
cash management customers stood at 4,915, representing an increase of
12.4%.
International
Settlement and Trade Finance
The Bank further sharpened the
edges in cross-border remittance products by further optimizing
the“ICBC Quick Remittance” product functions, and unveiled
USD-denominated remittances under it. In 2015, domestic branches
disbursed an aggregate of USD104 billion in international trade
finance. International settlements registered USD2.6 trillion, of
which USD950 billion were handled by overseas institutions.
Investment Banking
Funds
portfolio, industry fund and Public-Private-Partnership project
capital fund, among other innovative equity financing products, were
made debut officially, which enriched and improved the capital fund
financing product system. The Bank actively promoted the cross-border
buyout fund business. According to the Global M&A League Table:
Thomson Reuters, the Bank ranked in the first place in terms of M&A
deals per financial advisor in the Asia Pacific and China. The Bank
actively expanded bond underwriting business and underwrote various
debt financing instruments worth RMB1,152 billion as a lead manager
throughout 2015. In 2015, the investment banking income reported
RMB26,791 million.
Personal
Banking
At the
end of 2015, personal financial assets totaled to RMB11.59 trillion,
representing an increase of RMB1.09 trillion compared with the end of
last year and making the Bank remain the largest holder of personal
financial assets. Meanwhile, the Bank had 496 million personal
customers, including 10.44 million personal loan customers,
representing an increase of 31.51 million and 0.80 million from the
end of the previous year respectively.
Personal
Deposits
At the end of 2015, the balance of the Bank’s
personal deposits amounted to RMB7,601,114 million, representing an
increase of RMB412,507 million or 5.7% from the end of the previous
year, of which, personal demand deposits and personal time deposits
added by 7.5% and 4.4% respectively.
Personal
Loans
At the end of 2015, the balance of the Bank’s personal
loans amounted to RMB3,541,862 million, representing an increase of
RMB478,397 million or 15.6% from the end of the previous year.
According to the PBC data, the Bank remained an industry leader in
terms of personal loan balance.
Private
Banking
ICBC Private Banking Center (Middle East) commenced
business, making the Bank the first Chinese-funded bank offering
private banking business in the Middle East. Private banking service
network was formed across 22 countries
and regions and capable
of offering individualized cross-border advisory and consultancy
service for customers. At the end of 2015, the Bank managed RMB1.06
trillion assets for 62.4 thousand private banking customers. The
managed assets increased by RMB325.9 billion or 44.3% compared with
the previous year end and the customer size expanded by 19.3 thousand
or 44.8%.
Bank
Card Business
At the end of 2015, the Bank issued 750 million
cards, representing an increment of 82.87 million from the end of the
previous year. In 2015, bank card purchase volume increased by 18.0%
compared with last year to RMB8,841.6 billion.
Credit
Card Business
Consumer Credit Finance Center was set up as an
initiative to develop a new model of standardized, fully online and
credit-based financial operation that seeks for collaboration between
credit card and consumer credit loan, and to
grant credit line
on a dynamic and customized basis and monitor risks in a real-time
fashion. In 2015, the Bank outperformed its peers in terms of number
of credit cards issued, purchase volume and overdraft balance.
Debit
Card Business
The Bank rolled out many products featured
innovative payment means of debit cards such as using E-cash. Such
products consists of Small-value Payment Free of Password Debit
Cards, 360eID Chip Card Pasting and Payment and Debit Cards’ HCE
Cloud Payment. Seizing the opportunities arising from customers’
wealth increase and capital market growth, the Bank made efforts to
establish a mega asset management business system across the whole
value chain and enhance its specialized operating capabilities on the
strength of the Group’s asset management, custody, pension and
precious metal businesses, and the functions of its comprehensive
subsidiaries specialized in fund, insurance, leasing and investment
banking. Thus, the Bank rendered diversified and integrated financial
asset services for its customers.
Wealth
Management Services
Wealth management products were further
transformed to net-worth products with more reasonable maturity, the
yields of which could better reflect the market status. In overseas
and offshore markets, the Bank expanded the services for cross-border
wealth management products in free trade zones, European UCITS fund
and asset management of foreign central banks in order to enhance the
global allocation and asset management capabilities. At the end of
2015, the Bank’s stock wealth management products increased by
32.0% compared with the previous year end to RMB2,616,598 million,
remaining the largest in the industry.
Asset
Custody Services
The Bank developed a sound asset custody
product and service system and remained a market leader in respect of
major custody products, e.g. securities investment funds, insurance,
banking wealth management, enterprise annuities, special fund
accounts and global asset custody. At the end of 2015, total net
value of assets under the Bank’s custody increased by 97.4% from
the previous year end to RMB11.5 trillion.
Pension
Services
At the end of 2015, the pension funds under the Bank’s
trusteeship amounted to RMB82.7 billion; the Bank managed 15.23
million individual pension accounts, and the pension funds under the
Bank’s custody totaled RMB439.7 billion. The Bank led other banks
in terms of the scale of enterprise annuity funds under the Bank’s
trusteeship, number of individual enterprise annuity accounts and
enterprise annuity funds under the Bank’s custody.
Precious
Metal Business
To echo the changes in market demands, the Bank
developed a variety of new brands on assorted themes and introduced a
slew of products, e.g. Chinese Zodiac Coins and Panda Gold and Silver
Coins, under agent sales. In 2015, the sum of precious metal business
transactions was RMB1.25 trillion. The Bank cleared RMB388.4 billion
on behalf of the Shanghai Gold Exchange, ranking No. 1.
Franchise
Treasury Business
The Bank expanded the coverage of foreign
exchange settlement and sales outlets and enriched the convertible
currencies. Foreign exchange transaction business in respect of the
currencies of 80 emerging countries was launched
for corporate
clients. The volume of foreign exchange settlement and sales together
with franchise foreign exchange trading stood at USD726,500 million.
Asset
Securitization Business
The Bank issued two tranches of credit
assets backed securities on 10 February 2015 and 17 September 2015,
respectively. Corporate loans were the underlying assets of this
project in which the Bank served as originator and
lending
services provider.
Agency
Sales
By attracting new customers, enhancing refined management
level, creating innovative fund marketing models, expanding
electronic channels and fund product lines, the Bank increased the
funds under agency sales to RMB1,037.9 billion. Widening the
electronic distribution channels such as self-service terminals and
Internet banking, the Bank sold RMB166.8 billion worth of insurance
products on an agency basis, increasing by 62.4%.
Treasury
Operations
In
2015, the Bank flexibly arranged for the investment progress and
focus, timely adjusted investment and trading strategies, and took
different measures to increase the profitability of treasury
operations in tandem with the financial market trends.
Money
Market Activities
In 2015, domestic trading amount in the
interbank market was RMB52.26 trillion, of which lending amounted to
RMB50.36 trillion. The transaction volume in foreign exchange money
markets recorded USD156.6 billion.
Investment
In
2015, the transaction volume of RMB bonds and foreign currency bonds
in trading book scored RMB588.9 billion and USD10.1 billion
respectively.
Financing
The
Bank made innovations in the liability models. A variety of liability
approaches, e.g. issuing CDs, were taken to boost the support of
diversified liabilities to the growth of asset business.
Internet-based
Finance
Riding on
the three platforms and the new mechanism of internetbased
finance
marketing services, the Bank’s financing, payment, investment and
wealth management product lines all grew quickly in 2015.
ICBC Mall.The business coverage of ICBC Mall included B2C, B2B and B2G (enterprise and government procurement e-commerce platform), the goods and services available on it covered daily consumer goods, financial products, as well as property, tourism, auto, education and centralized procurement sectors. In 2015, ICBC Mall achieved an accumulative transaction amount of over RMB800 billion and had more than 30 million registered customers.
ICBC
Link. ICBC Link aims
at becoming an interactive platform for instant information exchange,
business consultancy, communication and sharing between the Bank and
its customers, inside the Bank and among the customers, and
developing a new financial service model featuring socialized finance
and interactive marketing. In 2015, the Bank actively facilitated
ICBC
Link’s function improvement, application and
organization setup, as well as internal promotion and socialized
marketing.
ICBC Mobile. The Bank went all out to promote the construction of ICBC Mobile’s open-ended network banking, by highlighting the open, intelligent and individualized concepts and comprehensively upgrading its brand, functions and services. In 2015, users of ICBC Mobile application numbered to 190 million.
Financing Product Line. At the end of 2015, online financing balance exceeded RMB500 billion. Easy Loan, an unsecured loan product based on the online & offline direct consumption of customers, had 4.5 million customers and a balance of more than RMB210 billion. The online revolving loan product designed to address the short-term, frequent and urgent financing needs of micro and small-sized enterprises, has cumulatively provided loans of RMB340 billion in 2015. The Bank promoted the personal self-service pledge loan which accumulated to RMB133.5 billion in 2015, and established the Consumer Credit Finance Center to provide purely unsecured and entirely online personal consumption credit business without mortgage or guarantee.
Payment Product Line. “ICBC e-Payment” featuring small amount and convenience saw its customers doubled compared with a year ago and the full-year transaction amount surpassed RMB 210 billion. The online POS cashier product had more than 10 thousand merchants with a transaction amount above RMB100 billion.
Investment and Wealth Management Product Line. The mobile terminal of “ICBC e Investment” went alive as an investment and trading platform for individual investors, and it dealt with many product lines such as paper precious metals and paper crude oil with a transaction amount exceeding RMB330 billion in 2015.
Channel
Development
The
Bank energetically promoted structural adjustment of offline channels
and transformation of business models. At the end of 2015, the Bank
had 16,732 physical outlets, less than the end of last year; it
maintained 29,043 self-service banking facilities, up 12.3% from the
end of last year; the number of ATMs was 99,789, an increase of 8.1%,
and the transaction volume reached RMB12,666.8 billion, expanding by
16.7%.
The
Bank accelerated the strategic layout of online channels and
functional improvement. It drove ahead the development of mobile
channels vigorously,
with the launching of ICBC Mobile
application and comprehensive upgrade of mobile banking. The Bank
also energetically promoted the open and intelligent reconstruction
of personal online banking system.The E-banking transaction amount
hit RMB592 trillion, an increase of 30% over the previous year; the
number of E-banking transactions accounted for 90.2% of total
transactions of the Bank, rising by 4.2 percentage points from the
last year. At the end of 2015, personal and corporate E-banking users
grew by 11.6% and 12.5% respectively.
The Bank advanced the development of a service system with integrated online and offline channels. It built and enriched new channel entrances and realized full coverage of WIFI services in domestic outlets, so that the customers of the Bank and other banks can access to the Bank’s financial products at these outlets.
Internationalized and
Diversified Operation
In
2015, the Bank’s global network layout paralleled channel building
in a steady way. Riyadh Branch, Yangon Branch and ICBC (Mexico) were
established. The Bank acquired 60% shares of Standard Bank PLC, thus
officially stepping into global commodities and money market trading
business. In addition, the Bank also acquired shares of Tekstilbank,
thereby becoming the first Chinese-funded bank that has established
an operating institution in Turkey. ICBC (Thai) and ICBC (Argentina)
were successively authorized as the RMB clearing bank, thus
increasing the number of the Bank’s overseas RMB clearing banks
with authorization from PBC to six. The Bank became the first
Chinese-funded bank that is able to offer around-the-clock RMB
clearing services in Asia, Europe, and the Americas. As at the end of
2015, the Bank established 404 institutions in 42 countries and
regions and indirectly covered 20 African countries as a shareholder
of Standard Bank Group. In particular, the Bank maintained 123
institutions in 18 countries and regions along the “One Belt and
One Road”. The Bank also established correspondent banking
relationships with 1,611 overseas banking institutions in 147
countries and regions. The net profits of overseas institutions
(other than the newly acquired institutions) increased by 12.2% to
USD3.166 billion. Comprehensive subsidiaries engaged in funds,
insurance and leasing also seized the opportunity and realized a
rapid profit increase of 55.4% in terms of total net profits, making
greater profit contributions to the Group. ICBC Leasing actively
served the “Belt and Road” initiative and international capacity
cooperation.At the end of 2015, ICBC Leasing recorded total assets of
RMB298.7 billion. ICBC-AXA’s total assets exceeded RMB66.5 billion
and maintained its leading position among its peers. The size of the
assets under the management of ICBC Credit Suisse Asset Management
amounted to over RMB950 billion, representing an increase of 62%.
IT-based
Banking Development
The
Bank deepened and expanded the application of big data technology,
promoted the unified management and application service of data
warehouse and the Group’s database, continued to diversify the
basis of data warehouse for structural data and database for
non-structural data, which improved the data standards and quality.
It strengthened the capability of value-added data application,
established an analyst platform and reinforced data mining and
analysis in some crucial business fields, e.g. customer service,
precision marketing and risk prevention and control.
The Bank carried forward the transformation of IT architecture. Fully capitalizing on such new technologies as cloud computing and big data processing, the Bank established a new information technology framework that meets future business growth requirement, and also set up a slew of technical architectures including API open platform, streaming data processing platform and infrastructure cloud platform.
The Bank created new ways of doing
business on all fronts. It built a product R&D and market
promotion mechanism meeting the characteristics of internet-based
finance and established a unified, efficient system application
platform. Under the Internet Financing Center, the Bank developed an
online financing product system and made debut the self-service
pledge loan for individuals, among other innovative products.
Besides, the optimization and transformation of operational
procedures for outlets’ composite services at counter were
continued. More efforts were made in R&D of anti-fraud functions
concerning such specialized transactions as credit card and
E-banking. The Bank improved the financial services in people’s
livelihood sectors, for instance, it expanded the functions of
bank-hospital cooperative business. Furthermore,
the Bank
advanced the system building in respect of international and
diversified operations with FOVA smoothly rolled out in ICBC (USA),
the overall switch from FOVA’s host system to the platform-based
core system in Bank ICBC (JSC) and the development of new-generation
core insurance business system for individuals in ICBC-AXA.
The Bank continued to improve the continuous operating capability of information system services and the development level of infrastructure, in addition to strengthened construction of the information safety prevention system. Based on the architecture of “three centers in two places”, operations were put under integrated management, enabling them to be mutually taken over. The information safety protection system covering the Group-wide hardware and software was improved, which was capable of taking centralized management concerning real-time monitoring, treatment and safety analysis of various outside attacks. The Bank was the first Chinese bank to use the quantum communication technology, and it also completed the change of native cipher algorithm in financial IC card and mobile payment system, electronic authentication system and personal Internet banking system.
In 2015, the Bank obtained 47 patents from the State Intellectual Property Office, and the total number of patents owned by the Bank increased to 404.
Risk
Management
In
2015, the Bank further improved the enterprise risk management
system, pushed ahead with the implementation of regulatory
requirements on systemically important banks, and continuously
improved risk management technologies and methods. The level of its
enterprise risk management was further enhanced. It reinforced
consolidated risk management at the Group level, with the focus on
risk management of non-banking subsidiaries, reinforced country risk
management and strengthened country risk monitoring and limit
management of key countries and regions. It also enhanced the market
risk management through proactively classifying the market risk
management of overseas institutions, carrying out standard product
control and bolstering market risk management of asset management
business. Additionally, it propelled the implementation of advanced
capital management approaches, improved the measurement system
concerning credit risk, market risk and operational risk and
continued to promote monitoring, validation and management
application of the risk measurement system.
Social Responsibility
Taking
“Providing outstanding financial services — serving the
customers, providing return to shareholders, realizing employee
potential, contributing to society” as the objective of the Bank’s
social responsibility, the Bank is dedicated to realizing sustainable
development of economy, environment and society and maximization of
comprehensive value based on the general appeal of all stakeholders
in social development. The Bank gained extensive social recognition
by its good performance in social responsibility fulfillment, and won
various awards, including “Best Social Responsibility Financial
Institution Award”, “Most Respectable Enterprise in China” and
“Best Practice Award for Caring for Climate Change and Environment
Protection”.
In millions of Chinese RMB (Yuan) in 2005:
Manufacturing: 662,376, 20.1% (28.7% in 2004)
Transportation, storage, postage & telecommunications: 367,371, 11.2% (10.2% in 2004)
Power, gas and water: 281,179, 8.6% (7.0% in 2004)
Retail and wholesale, catering: 265,906, 8.1% (6.9% in 2004)
Property development: 194,024, 5.9%, (5.6% in 2004)
Social service organization: 103,070, 3.1%, (3.2% in 2004)
Construction: 89,666, 2.7%, (2.1% in 2004)
Other industries: 313,804, 9.5%, (12.1% in 2004)
Discounted bills: 392,717, 11.9%, (8.4% in 2004)
Personal loans: 515,042, 15.7%, (13.1% in 2004)
Overseas business:104,398, 3.2%, (2.7% in 2004)
Total: 3,289,553
Secured by mortgages: 34.1%
Secured by other collateral: 22.1%
Guaranteed loans: 23.3%
Unsecured loans: 20.5%
At the end of 2004, 19.1% of ICBC's portfolio consisted of non-performing loans. In order to clean up ICBC's balance sheet and prepare it for overseas listing, the Chinese government orchestrated a series of capital injections, asset transfers, and government-subsidised bad loan disposals that eventually cost more than US$162 billion. This included an approval for a cash injection of US$15 billion (financed from China's massive foreign exchange reserves) on 28 April 2005. The Beijing-based state company, China Huarong, helped ICBC dispose of its bad loans. As the 2005 annual report records, just under 5% of loans are classified as non-performing, in comparison with the majority of western banks who have lower NPL ratios (US commercial banks around 1%).
In 2008 ICBC was the first Chinese Bank to adopt the Equator Principles, an international set of social and environmental standards for financial institutions launched in 2003. It has also adopted the Green Credit Policy launched in 2007 by the Chinese Ministry of Environmental Protection. International environmental groups have criticized ICBC for failing to adhere to its social environmental standards and of being hypocritical, because ICBC is involved in the financing of the controversial Gilgel Gibe III Dam in Ethiopia.
Native name |
中国工商银行股份有限公司 |
---|---|
Industry |
|
Founded |
Beijing,
China |
Headquarters |
|
Key people |
Jiang
Jianqing |
Products |
Finance
and insurance |
Revenue |
CN¥475.21 billion (2011)[1] 16 Mar 2006 |
CN¥208.44 billion (2011)[1] |
|
CN¥23.097 trillion (2015)[1] |
|
CN¥957.82 billion (2011)[1] |
|
Owner |
|
Number of employees |
375,354 (2014)[1] |
Website |
(English) ICBC.com.cn |