1. Strong strength
In 2005, ICBC's business operations were in good shape, its financial strength was significantly enhanced, and its asset quality was significantly improved. As of the end of the year, through 18,764 domestic institutions, 106 overseas branches and 1,165 agency banks around the world, ICBC provided services including services to approximately 2.5 million corporate customers and more than 150 million individual customers with leading information technology and electronic networks. A full range of domestic and foreign currency financial services including corporate banking, personal banking, capital operations, electronic banking and international business.
At the end of 2005, ICBC had total assets of RMB 6,454.1 billion, loans of RMB 3,289.6 billion, deposits of RMB 5,660.5 billion, net operating income of RMB 150.551 billion, and net interest income of RMB 137.858 billion. yuan, achieving a net profit of 33.7 billion yuan that year. The asset profit rate and capital profit rate reached 0.59% and 13.3%. The cost-to-income ratio is 40.71%, reaching the advanced level of the international banking industry.
In 2005, ICBC vigorously developed intermediary business and treasury business, achieving non-interest income of 12.693 billion yuan, an increase of 1.719 billion yuan. Among them, net fee income was 10.546 billion yuan, mainly due to the substantial growth of more than 40% in electronic banking, investment banking, bank cards, asset custody and other businesses.
At the end of 2005, ICBC’s credit assets accounted for 49.7% of total assets, which was lower than 50% for the first time, indicating a fundamental change. Credit extension maintained moderate growth, with the balance of various loans reaching RMB 3,289.553 billion. Non-credit assets were 3,248.245 billion yuan, accounting for 50.3% of total assets. Bond investments are mainly invested in central bank bills, policy financial bonds and treasury bonds. Total liabilities were RMB 6,196.625 billion, of which the balance of various deposits was RMB 5,660.462 billion.
With the strengthening of credit risk management and control, new loans have maintained a high quality. In addition, 635.002 billion yuan of non-performing loans were divested during financial restructuring in 2005, and the non-performing loans dropped significantly. The balance of non-performing loans was 154.417 billion yuan, and the non-performing loan ratio dropped to 4.69%.
The operating performance of Industrial and Commercial Bank of China has attracted the attention of the world's financial community. Since 1999, ICBC has been selected into the Fortune Global 500 every year, and has been selected as "China's Most Powerful Bank" by "Euromoney", "The Banker", "Global Finance", "Asia Money" and "Financial Asia" many times. "Best Bank", "Best Local Bank in China", "Best Mainland Commercial Bank in China", and has been continuously rated as "China's Most Respected Enterprise" by domestic media. In 2005, Standard & Poor's Rating Company upgraded ICBC's credit rating twice in a row. In July 2006, Moody's Rating Company upgraded the outlook for ICBC's comprehensive financial strength rating from stable to positive.
2. Business Diversification
1. Corporate Business
ICBC operates the largest corporate banking business in China, supporting many infrastructure, basic industries, The development of major projects, key enterprises, and small and medium-sized enterprises. In 2005, ICBC actively built a unified marketing platform and a hierarchical marketing system, and continued to focus on strengthening marketing in key basic industries and infrastructure fields such as petroleum and petrochemicals, electric power, telecommunications, highways, railways, civil aviation and ports; it also moderately and differentiatedly increased urban Loans for infrastructure, high-tech development zone construction, real estate and other industries; selectively increase credit for modern manufacturing, modern logistics, environmental protection industries and new service industries, cultural industries, medical and health and other emerging industries, and actively expand The credit market, industry structure and customer structure of multinational companies and small and medium-sized enterprises continue to be optimized. While consolidating and leveraging the advantages of traditional businesses, we will vigorously expand emerging intermediary businesses with high growth, high technology content and added value such as cash management, investment banking, asset custody and various financial management, and develop syndicated loans, financial consulting, and structured financing. , comprehensive financial service solutions and other high-end businesses, the product structure and revenue structure are becoming increasingly reasonable.
At the end of 2005, the balance of corporate deposits was 2,543.8 billion yuan, and the balance of corporate loans was 2,762.2 billion yuan, mainly concentrated in medium and long-term loans and bill financing. New businesses such as bridging loans, standby loans, and domestically guaranteed overseas loans were added. The balance of domestic syndicated loans was 72.3 billion yuan.
ICBC has signed comprehensive cooperation agreements with 12 domestic and foreign insurance companies, signed various cooperation agreements with more than 140 securities and futures companies, and formally established agency banking relationships with 45 domestic banking institutions as payment and settlement agents. The scale of business and agency clearing business continues to expand; the "Bank-Customs Connect", "Bank-Finance Connect", "Online Bank-Finance Connect" and "Bank-Tax Connect" systems are continuously improved.
In 2005, ICBC continued to consolidate its position as the largest bank in RMB settlement. The RMB settlement volume is 185 trillion yuan. Launched the "Caizhi Account" brand and integrated services to enhance brand value. At the end of the year, the total number of cash management customers reached 17,663.
The annual investment banking business income was 2.018 billion yuan. It was among the first batch to obtain the qualification of the lead underwriter of short-term financing bonds and successfully issued 3 financing bonds. The equity transfer project of Changyu Group, for which ICBC acted as financial advisor, was rated as one of the “Top Ten M&A Events in China in 2005” by the All-China Federation of Industry and Commerce Mergers and Acquisitions Association, the Global M&A Research Center and the China M&A Transaction Network.
At the end of 2005, the assets under custody were RMB 213.2 billion, and the custody business income was RMB 263 million. Securities investment fund custody continues to maintain its leading edge, and other custody businesses such as insurance asset custody, corporate annuity custody, QFII, etc. continue to advance, and the company is the first to launch securitization custody. It was the first domestic custodian bank to pass the SAS70 international internal control audit certification, and was awarded the title of "China's Best Custodian Bank" in 2005 by "Global Custodian" magazine and "The Asset" magazine.
A total of 43 billion yuan of entrusted loans were issued throughout the year; 32.1 billion yuan of supervised loans and fund settlements were provided for the China Development Bank; 13.7 billion yuan of export seller credit business and settlement business were provided for the Export-Import Bank of China.
Represented the fund clearing for 85 of the 128 members of the Shanghai Gold Exchange (hereinafter referred to as the "Gold Exchange"), with a clearing amount of 54.2 billion yuan, ranking first in the total fund clearing volume of the Gold Exchange; It has 130 gold valet customers, with a valet gold trading volume of 29 tons and a valet platinum trading volume of 3.2 tons.
It is one of the first batch to obtain the qualifications of enterprise annuity fund account manager and custodian, and is the only institution among state-owned commercial banks to obtain two business qualifications. As of the end of 2005, it managed 296,000 personal accounts and managed annuity funds of RMB 4.3 billion.
The Industrial and Commercial Bank of China, Credit Suisse and China Ocean Shipping Group jointly established ICBC Credit Suisse Fund Management Co., Ltd., taking a new step in diversified operations.
2. Personal business
ICBC’s personal financial business ranks first in the country, and it has built a personal intermediary business system focusing on personal settlement, bank card business, and personal financial management products. And it has the largest financial management customer base and bank card customer base. In 2005, ICBC continued to maintain its leading position in many retail financial services such as resident savings, personal loans, personal intermediary business, and bank cards. Its customer structure continued to be optimized, and its outlets' comprehensive competitiveness and multi-channel comprehensive application level were significantly improved. For the third consecutive year, it won the title of "Best State-owned Retail Bank in China" by The Asian Banker magazine.
At the end of 2005, the balance of savings deposits was RMB 3,116.6 billion and the balance of personal loans was RMB 527.4 billion, of which the balance of personal housing loans was RMB 459.3 billion. The balance of personal loans continued to rank first in the industry.
In 2005, the net personal fee income was 5.993 billion yuan, accounting for 56.8% of the total net fee income. Personal settlement, bank card business, and sales of personal financial products constitute the main sources of personal intermediary business income. For high-end personal banking customers, new functions and services such as SMS billing, financial management classes, and bank butler services were launched. At the end of the year, the total number of “Elite Club Account” customers reached 1.88 million, an increase of 51.6%. The main agency business areas continue to maintain industry leadership. The agency sales of certificated government bonds accounted for 31.2% of the market, making it the largest distributor. The agency sales of open-end funds were 70.7 billion yuan, and the agency sales of insurance product premiums totaled 32.2 billion yuan.
At the end of the year, the total number of bank cards issued was 145.22 million, and the total consumption of bank cards was 241 billion yuan. Achieved bank card business income of 2.346 billion yuan. Develop chip-based EMV multi-functional credit cards to further improve credit card security.
3. Capital business
ICBC is active in the capital market and actively participates in inter-bank market capital operations, bill market capital operations, bond market capital operations and foreign currency capital operations.
In 2005, ICBC was among the first to obtain the qualification as the lead underwriter of corporate short-term financing bonds, handle the market’s first bond forward transaction, launch the “ICBC Bond Market Connect” legal person RMB wealth management product, and issue the first tranche of 35 billion yuan in subordinated bonds.
Throughout the year, 1.6131 billion yuan of funds were lent out and 140 billion yuan of capital was borrowed through inter-bank market repurchase and lending; the central bank bill transaction volume was 661.9 billion yuan, and the annual spot bond trading volume was 188.6 billion yuan. .
In 2005, the volume of bill financing transactions exceeded one trillion yuan for the first time, reaching 1,007.6 billion yuan, and the balance of bill discounting was 392.8 billion yuan, accounting for 11.9% of all loan balances. Achieved RMB 9.045 billion in interest income from bill discounting.
For the whole year, the interest income from bond investment was 44.084 billion yuan, and the spread income from bond investment transactions was 429 million yuan.
4. Electronic banking services
ICBC has a three-dimensional electronic banking service system consisting of self-service banking, telephone banking, mobile banking and online banking. Personal customers of online banking, corporate customers, and personal customers of telephone banking all rank first among peers. As the largest electronic financial service provider in China, in 2005, the electronic banking transaction volume reached 46.8 trillion yuan, with the number of transactions accounting for 26% of the bank's total, and business income of 421 million yuan, an increase of 79.1%. More than a quarter of ICBC's business is handled through non-counter channels.
Industrial and Commercial Bank of China is the largest e-commerce online payment service provider in China. In 2005, it launched a number of new products such as the professional version of online banking, bank-enterprise interconnection and universal payment, as well as brands such as "ICBC Cai e-Tong" and "U-shield" certificates, realizing the unified management of local and remote accounts in online banking. The annual online banking transaction volume was 42.2 trillion yuan, and the number of individual customers and corporate customers reached 14.86 million and 320,000 respectively. The annual transaction volume of e-commerce online payment reached 11.6 billion yuan, doubled from the previous year. For the third consecutive year, it won the "Best Personal Online Bank in China" selected by the American "Global Finance" magazine and many domestic online banking surveys and selections. Grand prize.
Telephone banking took the lead in launching national telephone banking remote roaming and interactive roaming services between Hong Kong and the Mainland. It established two major telephone banking custody systems in the south and the north, and the bank's integrated telephone banking scope expanded to 26 .
As of the end of 2005, ICBC had 18,270 ATM machines and 1,473 self-service banks. Throughout the year, 141 million transactions were completed through the self-service banking network, with a total transaction volume of 134 billion yuan.
5. International Business
Industrial and Commercial Bank of China continues to promote cross-border operations, accelerate the establishment of a business structure with balanced and coordinated development of local and foreign currencies, and domestic and overseas businesses, and provide opportunities for more and more enterprises to go global. Markets provide credit and financing services.
As of the end of 2005, total foreign currency assets were US$61.2 billion, and overseas branches and institutions had achieved a total pre-tax profit of US$180 million. At the end of the year, the balance of foreign currency deposits was US$29.1 billion. The net amount of foreign currency loans was US$29.1 billion. Establish an International Settlement Document Center. The international settlement business handled throughout the year was US$292.8 billion.
In 2005, the foreign exchange capital transaction volume on behalf of clients was US$143.2 billion, including US$105.2 billion in foreign exchange settlement and sales business, US$30.4 billion in agency foreign exchange trading volume, and US$7.6 billion in agency financial management and risk management business. Among the first batch to obtain market maker qualifications in the inter-bank foreign exchange market.
As of the end of 2005, ICBC had established correspondent banking relationships with 1,165 banks in 114 countries and regions, and had 106 branches and holding banks in major financial centers around the world.
The overseas holding institution Industrial and Commercial Bank of China (Asia) Limited ("ICBC (Asia)") ended the year with total assets of HK$115.4 billion; realized pre-tax profit of HK$1.2 billion; basic earnings per share was HK$0.91; for the full year The return on average common equity is 11%, the return on average assets is 0.9%, the capital adequacy rate is 15.7%, and the non-performing loan rate is 0.9%. In October 2005, ICBC (Asia) announced that its integration with Overseas Bank had been completed.
3. Advanced technology
The three major technology projects of data centralization project, full-function banking system and data warehouse are the foundation for ICBC to build an internationally advanced financial information technology platform. The data centralization project completed in October 2002 is a pioneering project in the data centralization of my country's financial system.
After the completion of the project, all the bank's operating data will be concentrated in two data centers in Beijing and Shanghai, which will reliably guarantee the efficiency and stability of business processing.
In 2005, with the core of strengthening customer service and informatization of operation and management, ICBC implemented a series of projects such as data concentration and data center integration, promoted and optimized a full-function banking system, and became the first bank in China to complete a full-service banking system. A large commercial bank that intensifies bank data and information processing and has a unified, standardized and standardized core business application platform.
Lead the continuous innovation of financial service products through advanced information technology. Successfully developed and put into operation a credit management system for legal persons and individual customers, becoming the first domestic bank with an automatic credit control system. It has independently developed advantageous products such as personal financial management, international settlement, and foreign exchange remittance, and continuously improved high-end business systems such as cash management and bank cards. Continuously optimize various self-service channels such as online banking, telephone banking, and mobile banking. ICBC submitted 33 patent applications to the State Intellectual Property Office, and 9 projects including USBKEY digital certificates were granted utility model patents by the State Intellectual Property Office.
IV. Management Standards
1. Corporate Governance
Industrial and Commercial Bank of China implements a commercial bank operation and management system with unified legal person authorization. The head office is the management of the entire bank. The management center, capital dispatch center and leadership command center own the legal person property rights of the entire bank and are responsible for the efficiency, safety and liquidity of the entire bank's operations. The whole bank implements the management model of "one level of decentralization and two levels of supervision". On the basis of authorization and credit management, it has established a modern commercial bank's management system for risks, funds, credit, internal control and human resources.
In 2005, through the joint-stock reform, the corporate governance structure was further improved. Based on the principles of "separation of the three meetings, separation of the three powers, effective control, and coordinated development", the shareholders' meeting, the board of directors, and the board of supervisors were established, and senior management was appointed. Continuously strengthen the corporate governance mechanism of modern commercial banks that operates independently, closely cooperates, checks and balances, and effectively supervises the general meeting of shareholders, the board of directors, the board of supervisors, and senior management, and the enterprise's risk management and internal control capabilities are further strengthened.
2. Risk management
ICBC has leading domestic risk control capabilities. Under the leadership of the Risk Management Committee, comprehensive risk management including credit risk, market risk, operational risk and liquidity risk is implemented throughout the entire process of risk identification, measurement, monitoring, control, disposal and compensation. Important risk control measures in 2005 include:
Credit risk management. Clarify the active entry, moderate entry and restricted entry industries for corporate customers; establish a risk monitoring system and long-term mechanism for large loan borrowers, establish a list of key customers and a risk emergency mechanism; promote the strategic adjustment of the regional structure of credit business; implement differentiated Small business credit policy for large customers; implement total customer financing risk control in line with international standards. In view of the credit risk of individual customers, a personal credit management system (PCM2003 system) was developed to achieve an electronic system to record the operation and management behaviors of each position in the process. Establish a consumer credit approval center and formulate a unified credit system and management measures for individual customers.
Liquidity risk management. Introduce internationally accepted liquidity risk measurement models and design risk measurement methods and standards suitable for the Bank’s actual conditions.
Market risk management. It established a loan pricing model and core interest rate indicators, and drafted interim measures for interest rate risk management; it increased the interest rate authority for small foreign currency deposits of miscellaneous currencies; it established a foreign exchange fund business center; and became a market maker in the inter-bank foreign exchange market by the end of the year.
Operational risk and internal control. In 2005, the Operational Risk Management Committee was established to initially establish an operational risk monitoring indicator system and establish an operational risk management reporting system. Formulate the "Internal Control Regulations of the Industrial and Commercial Bank of China" and prepare the "Five-Year Plan for the Construction of the Internal Control System of the Industrial and Commercial Bank of China"; redesign and optimize the operational processes of corporate and personal credit businesses; build and put into use an anti-money laundering electronic monitoring system.
5. Basic information and business scope
The registered address of Industrial and Commercial Bank of China is No. 55 Fuxingmennei Street, Beijing, China, and its legal representative is Jiang Jianqing.
The business scope of ICBC includes:
Liability business: RMB savings; foreign currency savings; savings traveler's checks; foreign exchange borrowings; interbank RMB and foreign exchange lending; issuance of financial bonds, etc.;
Asset business: short-term, medium-term and long-term RMB and foreign exchange working capital loans, fixed asset loans; foreign exchange transfer loans; housing development loans; loans with special purposes; consumer loans (car consumption loans; personal loans) Durable consumer goods loans; personal housing loans); entrusted loans and specific loans; bill discounting; subscription business of treasury bonds and policy financial bonds; inter-bank RMB and foreign exchange placements; project loan evaluation and credit rating, etc.;
Intermediary business: RMB cash settlement, transfer settlement; international settlement; agency business (collection and payment; agency for the issuance, clearing, redemption and custody of corporate bonds, stocks, treasury bills and other securities; gold spot trading, transaction clearing, physical delivery , leasing gold, gold project financing; gold clearing transactions; corporate annuity business; agency issuance of financial bonds; agency insurance; agency custody of securities and valuable items; rental of safe deposit boxes; agency policy financial business or other financial institution business, etc.) ; RMB and foreign exchange bank card business; information consulting business (credit investigation; asset evaluation; financial information consulting; industry information network services; issuance of RMB deposit certificates); foreign exchange intermediary business (import certificate issuance; import collection agency; outward remittance; Notification of incoming certificates; negotiation; collection; inward remittances; foreign exchange settlement; foreign exchange sales; traveler's checks; foreign exchange transactions on behalf of clients; acceptance and discounting of foreign exchange bills; foreign exchange guarantees; foreign exchange deposit certificates; agency issuance of foreign currency securities other than stocks. ; Agency for the purchase and sale of foreign currency securities other than stocks; foreign currency exchange; opening of working capital accounts for projects utilizing loans from international financial organizations); financing and performance guarantee business; merchant banking business (financing consultancy and syndicated loan arrangements; corporate finance Consultants; companies listed overseas); personal financial services; investment fund management, custody and sales; other entrusted and entrusted asset management; corporate credit rating and other intermediary businesses, etc.
This is the composition of the insurance fund
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